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  • 1. World Economic Forum Annual Report 2007-2008
  • 2. Introduction Annual Report 2007-2008 World Economic Forum 0 Contents Executive Chairman’s Statement 02 Managing Board Statement 06 Our communities – working with 08 our members and partners The World Economic Forum is an independent Engaging our communities 12 and our constituencies international organization committed to Shaping the global agenda 16 improving the state of the world by engaging Facilitating international private-public partnerships 22 Foundation Board Members Josef Ackermann, Kurt Alig, Kofi Annan, Tony Blair, leaders in partnerships to shape global, Shaping the regional agenda 24 Peter Brabeck-Letmathe, Victor L. L. Chu, Michael Shaping the industry agenda 26 S. Dell, Niall FitzGerald, Orit Gadiesh, Carlos regional and industry agendas. Ghosn, Rajat K. Gupta, Susan Hockfield, Christine Collective intelligence 28 Lagarde, Maurice Lévy, Nandan M. Nilekani, Ivan Our organization 32 Pictet, H.M. Queen Rania of the Hashemite Kingdom of Jordan, Joseph P. Schoendort, Klaus The Forum community 34 Schwab, Peter D. Sutherland, Heizo Takenaka, Our financial results 36 Ernesto Zedillo Ponce de Leon World Economic Forum USA 38 For more information about the Foundation Board Our mission and values 40 visit page 32 or > Entrance of the Congress Centre in Davos during the Annual Meeting 2008
  • 3. Executive Chairman’s Statement Executive Chairman’s Statement World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 02 03 Executive Chairman’s Statement 2007-2008 was again a very successful year, maybe In pursuit of our mission to improve the state our most successful ever. We delivered on our of the world, the Forum continues to work very promises to our partners, members and constituents, closely with governments around the globe. This Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum we expanded well into Asia, and we played a catalytic partnership was again demonstrated at our events role in many global developments. In our initiatives, by such distinguished participants as US President In today’s increasingly interconnected and in our communities and in our own organizational George W. Bush, British Prime Minister Gordon design, we were more innovative than ever before. Brown, Mexican President Felipe Calderón. However, while I am proud, I am not fully satisfied. Japanese Prime Minister Yasuo Fukuda, Russian complex world, no single leader, nation or President Dmitry Medvedev and Chinese Premier The 34% increase in the number of Strategic Wen Jiabao. Partners, 37% increase in the number of Industry organization has the solution to the crucial Partnerships, as well as nearly 20% growth in The World Economic Forum has the ambition revenues, are powerful demonstrations of the trust to be always ahead of its time. This year we our communities install in us. But what pleased me laid the foundations for two new major creative issues that face us all. Climate change, terrorism, the most was the superb degree of engagement of breakthroughs, WELCOM (World Economic Leaders our Strategic Partners and Industry Partners in our Community) and the Global Agenda Councils (GACs). or water scarcity, all require a coordinated different initiatives, and their demonstrated WELCOM is a powerful new online communication commitment to our mission to improve the state of and collaboration space designed specifically for the world. It is this engagement and commitment approach, one in which different stakeholders the world’s top decision-makers. It will be rolled which makes the Forum so effective and so powerful. 1,000 out throughout next year, providing global leaders This report will enumerate many activities which with an unprecedented opportunity of continuous, demonstrate the sense of true corporate global collaborate across geographical, industrial, instantaneous interaction. Making WELCOM citizenship. A great achievement in this sense over possible is the result of a close partnership was working together with over 100 CEOs, many between the world’s top technology leaders political and cultural boundaries. governments and the most relevant research and the World Economic Forum. organizations to submit to the G8 on the occasion of the world’s greatest minds have already of its summit in Hokkaido the most comprehensive It is not sufficient to strengthen interaction among been recruited to serve on our Global action plan to reduce carbon emissions based on our communities through a combination of face-to- Agenda Councils, to address today’s government-business cooperation. face and virtual contacts. This interaction should most pressing issues. be based on the best strategic insights and should In 2007-2008, we broadened our engagement with always be forward looking. For this reason, we the establishment of our Community of Global Growth > Professor Klaus Schwab at the Annual Meeting 2008 built on our knowledge of global expertise and Companies. These fast-growing businesses, many with the help of the world’s leading universities we based in emerging economies, are set to be leading established a network of Global Agenda Councils multinationals within a decade. The first Annual (GACs) which constitute now over 1,000 members, Meeting of the New Champions − or “Summer the world’s foremost integrated collective Davos” − in Dalian, People’s Republic of China, intelligence system. brought together our first GGC members, along with Technology Pioneers, Young Global Leaders In November 2008, the Councils will gather in and the leaders of fast-growing regions and cities. Dubai for the first Summit on the Global Agenda. Participants will identify the most pressing and prevailing global challenges and consider long-term solutions in a systematic and collaborative manner. Their conclusions will feed into the programme of the World Economic Forum Annual Meeting 2009 and, indeed, all of the Forum’s work. These two major breakthroughs (WELCOM and Global Agenda Councils) will allow us not only to improve our traditional activities but also to develop completely new services for our partners, members and constituents. The next year, 2008-2009, will allow us to show our communities the benefits of all those efforts.
  • 4. Executive Chairman’s Statement Executive Chairman’s Statement World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 0 0 Nevertheless I am not satisfied, nor are my We have developed the tools, processes and To allow us to focus on global excellence, we have colleagues. Why? the expertise to create public-private partnerships decided to cap the number of our Strategic Partners and to be a catalyst in shaping global, regional at 100 of the world’s most reputed companies, as The world, politically, economically and socially is and industry agendas. we have already limited the number of our Foundation struggling to cope with the growing complexity of Members to 1,000 of the foremost global companies. globalization. As we know from our own work with We have developed internally the capabilities and the Global Risk Report, there are many challenges capacities with 300 highly motivated staff in three We will be even more rigorous in undertaking “We will only be satisfied if we know we which we have to meet simultaneously. All these major strategic locations (Geneva, New York and initiatives – to ensure we are always at the front challenges require an interdisciplinary, proactive Beijing). We have introduced more robust, innovative end of global concerns. We will build our future on are making a unique contribution to improve and, above all, multistakeholder approach. The time internal processes and appointed a new human our specific strengths: an uninterrupted success has gone when governments alone were in charge resources director and a new chief financial officer. story of 38 years, but above all, institutional values the global governance system, demonstrating of managing our global affairs, securing through the We substantially reinforced the Managing Board, based on complete impartiality and independence appropriate multilateral systems and mechanisms welcoming Børge Brende, a former Norwegian with continuous and deep commitment to the particularly the positive role business can a stable, prosperous and peaceful world. Minister for both the Environment and Trade and mission “Improving the State of the World”, Industry. Also joining us in August 2008 is Robert intellectual integrity, proven positive impact, Since its beginning in 1971, the Forum was based play in it.” Greenhill, former President of the Canadian transparency and representativity. on and driven by the stakeholder concept: the need International Development Agency (CIDA), and of business not only to serve its shareholders but Indeed, with the world changing so quickly, we never President and Chief Operating Officer of the Professor Klaus Schwab also its stakeholders − all whose future depends will or should be fully satisfied as there will always International Group of Bombardier Inc. To work directly or even indirectly on business decisions. be a lot to do for the unique multistakeholder together with such committed, enthusiastic and Today business itself has become a stakeholder organization that is the World Economic Forum. service-oriented colleagues from over 55 countries of global affairs – together with governments and is stimulating for all of us. This continual strengthening other partners. I have defined this new dimension of our institution underlines our commitment to global for responsible business – or “creative capitalism” excellence in both what we do and how we do it. as our member Bill Gates called it in Davos this year – as Corporate Global Citizenship. We will only be satisfied if we know we are making a unique contribution to improve the global governance What we have done during the past years, particularly system, demonstrating particularly the positive in 2007-2008, was to build all the fundamentals to role business can play in it. To do so we have to allow the Forum to become the foremost global strengthen the relevance of everything we are doing Professor Klaus Schwab multistakeholder organization. We have all the and we have to intensify the collaboration within our Founder and Executive Chairman stakeholders in place, integrated as strong, selected communities and between our communities. and committed communities: business and also governments, and our specific, highly representative, highest level communities of NGO Leaders, Labour Leaders, Thought Leaders (Global Agenda Councils), Religious Leaders, Media Leaders, Young Global Leaders and Social Entrepreneurs. > Professor Klaus Schwab welcoming newcomers at the Annual Meeting 2008 > Professor Klaus Schwab and Felipe Calderón, > Presentation of Crystal Award to Emma Thompson, Annual Meeting 2008 > Professor Klaus Schwab and Yasuo Fukuda, Annual Meeting 2008 World Economic Forum on Latin America 2008
  • 5. Managing Board Statement Managing Board Statement World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 06 07 Managing Board Statement Regional Agenda Industry Agenda The Forum’s Global Risk Network provided a timely analysis of the threats to the world economy In March, the Forum helped improve In February, we furthered our Partnering Against with its Global Risks Report in January 2008. understanding of the tensions between the Corruption Initiative (PACI), with the first survey The report focused on four issues where multiple As a Managing Board, our efforts are aligned Islamic world and Western nations with a of signatory companies. This showed that more risks converge: systemic financial risk, food groundbreaking publication, Islam and the than 90% now have formal anti-corruption security, supply chains and the role of energy. fully with the Forum’s mission of improving programmes, one-in-four of which have been West: Annual Report on the State of Dialogue. For more information see verified by an external third party. Almost 140 For more information see companies with combined revenues in excess the state of the world by engaging leaders of US$ 800 billion have now signed up to PACI. The Forum’s Global Health Initiative continued The SlimCity initiative was launched at the Annual to drive private-public health partnerships. Its For more information see Meeting 2008 and brings together administrators from public and private sectors in partnership new report, Business Coalitions Tackling AIDS: from some of the world’s leading cities and the A Worldwide Review – developed with UNAIDS, private sector to explore ways to use resources The Forum’s Investors Industry group published the World Bank and GTZ – demonstrates how and dialogue. In 2007-2008, as the following more efficiently. The Global Economic Impact of Private Equity business coalitions are helping thousands of in January 2008. This examined thousands of companies tackle AIDS in the workplace. Building on The Gulf Cooperation Council transactions involving private equity over almost highlights show, we achieved significant (GCC) Countries and the World: Scenarios to For more information see four decades and provided a valuable analysis 2025 report from 2007, the Forum explored of the sector’s impact on employment levels possible futures for the Kingdom of Saudi Arabia, successes around our three primary agendas. and corporate governance. he Business Alliance Against Chronic Hunger T the Kingdom of Bahrain and the United Arab (BAACH) was initiated by Forum member Emirates in detailed scenario planning reports. For more information see companies and partners to develop sustainable, The reports indicate how each nation might scalable business-led solutions to poverty and look in 2025 under three distinct scenarios. centreforglobalindustries hunger. The initiative works on three levels: it For more information see The Forum’s Working Towards Wellness initiative builds networks of global and regional leaders partnered with the World Health Organization to to galvanize public-private collaboration to Global Agenda In January, the Forum and the United Nations gccscenarios help fight conditions such as diabetes, obesity and address hunger and food security; it defines announced a new framework to guide private heart disease, which claim more than 30 million practical business models to reduce hunger The Forum helped business shape the climate sector aid after natural disasters. Agreed under The Global Education Alliance, part of the lives each year. The initiative focused on improving and poverty worldwide; and it catalyses action change discussions at the 2008 G8 Summit in our Humanitarian Relief Initiative, the 10 Guiding Forum’s Global Education Initiative, started health through workplace programmes on diet on the ground in Africa. The Alliance has Japan, via its industry leader-led Gleneagles Principles will help companies deliver assistance working towards delivering universal primary and exercise. Discussions in Africa, China and India focused initial action work in Kenya, where a Dialogue Initiative. The dialogue’s detailed in the most effective way. education in the Republic of Rwanda. This among experts from around the world led to a joint group of 30 companies and organizations are climate change recommendations were brings private sector partners such as Cisco, Intel For more information see report Preventing Noncommunicable Diseases in leading 14 pilot initiatives in Kenya’s poorest presented personally to Yasuo Fukada, and Microsoft into cooperation with governments the Workplace through Diet and Physical Activity, district, Siaya, during 2008. Japanese Prime Minister and G8 host, by Forum in the Fast Track Initiative, which is a global in May 2008. Executive Chairman, Klaus Schwab. Fukada In September 2007, the Forum’s first Annual partnership working to meet the education For more information see had used the Annual Meeting 2008 to launch Meeting of the New Champions in Dalian, Millennium Development Goals. For more information see the Cool Earth Partnership, a US$ 10 billion People’s Republic of China, illuminated a fresh For more information see fund to support developing nations to combat agenda for change. It brought together the A new roadmap showing how businesses can global warming. world’s fastest-growing businesses, those work with public bodies to improve the environment developing the technology that will transform For more information see for sustainable growth was launched at the Annual tomorrow, and many of the world’s most Meeting 2008. Partnering to Strengthen Public promising Young Global Leaders. Governance, supported by the CEOs and chairmen For more information see of 14 corporations, is the latest strand of the Forum’s Global Corporate Citizenship initiative. annualmeetingofthenewchampions For more information see _ report_20080111.pdf > Zeng Peiyan, Vice-Premier of the People’s > Theodore Cardinal McCarrick > Indra K. Nooyi, CEO, PepsiCo, at the Annual Republic of China (2003-2008), at the Annual Meeting 2008 at the Annual Meeting 2008 Meeting 2008 > Mahdi Hadavi, Theodore Cardinal McCarrick, Abdullah Ahmad Badawi, Tony Blair and > World Economic Forum on David A. Harris at the “Faith and Modernization” the Middle East 2008 > Annual Meeting 2008 session at the Annual Meeting 2008
  • 6. Our communities – working with our partners and members Our communities – working with our partners and members World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 0 0 Our communities – working The World Economic Forum provides a unique and communities. They help shape our initiatives, platform for business to engage as a key global projects and task forces and give intellectual guidance stakeholder. Private sector organizations are involved throughout the participation of their most senior with our members and partners in the Forum at varying levels of engagement. executives on steering boards and advisory groups. This year, the number of Strategic Partners grew Members At the Forum’s core are its Members and 34% to a record 95. The 24 new Strategic Partners “In 2007-2008 the Our 1,000 member companies represent the represent not only the addition of recognized world foremost global companies committed to improving leaders, but also an increased commitment from Partners. These communities grew strongly number of Strategic the state of the world. They are a tremendously and expanding industries like private equity and increasingly diverse group, drawn from all industries geographies as diverse as Asia, the Middle East Partners increased and all regions of the world. They are at the heart and Russia. this year, enabling us to accelerate work on of all our activities and provide invaluable support Given the special nature of the Strategic Partnership from 71 to 95 to our mission. relationship we have decided to cap the number of existing industry and global agendas and This year we welcomed 100 top companies, drawn Strategic Partners at 100, as we have already limited companies – a rise from over 18 industries, including over one quarter the number of Foundation members to 1,000 of the to embark on initiatives in new sectors. from emerging economies. world’s foremost companies. of over one third.” Industry Partners Global Growth Companies Many of our members elect to become more deeply Last year, the Forum launched a new community involved in the Forum’s activities and initiatives through of Global Growth Companies to complement our our Industry Partnership Programme. These Industry existing membership base. These GGC companies Partners are actively involved in the Forum’s activities, have the potential to become leaders in the global including industry-specific issues, cross-industry economy within the next five years. GGCs take an efforts and globally relevant strategic challenges. active role in the Forum’s regional meetings, using the opportunity to share best practices and meet Now in its third year, the number of Industry with global political and business leaders. Members Partnerships grew by 37% to 269, spread across of the Community also hosted several information 18 industries. These companies contributed to gatherings around the world, further strengthening over 25 active initiatives, as outlined in “Shaping community ties. the Industry Agenda” (page 27). > Annual Meeting 2008 Since its inception last year, more than 200 Strategic Partners companies from more than 40 countries have joined the Forum’s Community of Global Growth Our Strategic Partners represent some of the Companies (GCCs). The Inaugural Annual Meeting world’s leading corporate citizens and are our of the New Champions in September 2007 formally most committed members, providing essential launched the Community. Highlights included an leadership in support of the Forum’s mission. informal session with China’s Premier Wen Jiabao. Our Strategic Partners are a key force in our activities > Inaugural Annual Meeting of the New Champions > Umaru Musa Yar’Adua, President of Nigeria, at the Annual Meeting 2008
  • 7. Our communities – working with our partners and members Our communities – working with our partners and members World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 0  New members Strategic Partners Fortis* Pemex - Petroleos Mexicanos* Fortress Investment LLC* ProLogis 100 new members joined the World Economic As of 30 June 2008, the following companies were Gávea Investimentos Prudential Plc* Forum this year, 35 of these also joined our Industry Strategic Partners of the World Economic Forum GLG Partners LP* PSA Peugeot Citroën* Partners Programme. Grant Thornton International LLP* Quest Diagnostics Inc. ABX Logistics Worldwide SA/NV* Greylock QVT Financial LP* Access Industries Inc. Grupo Nacional Provincial SAB Rich Products Corp. Aetna Inc. Grupo Televisa SAB* Rolls-Royce Plc* AMB Property Corporation Haci Ömer Sabanci Holding AS Samba Financial Group (Samba) Apollo Management LP* Harman International Industries Inc. Sasol Limited* Ascension Health Highbridge Capital Management LLC* Sherpalo LLC Assicurazioni Generali SpA Hitachi Ltd Sime Darby Bhd Autodesk Inc.* Huawei Technologies Co. Ltd* Simon Property Group Inc. Banco de Chile Iberdrola* SNCF (Société Nationale des Chemins de Fer) Berggruen Holdings Inc. ICAP Plc SOHO China Limited Best Buy Co. Inc.* Immofinanz AG Starwood Capital Group Burger King Corporation* IMS - Health StratREAL (Strategic Real Estate Advisors Ltd)* Campbell Soup Company* International Post Corporation (IPC) T. Rowe Price Group Inc. Cinven* Jones Lang LaSalle Inc. Temasek Holdings (Pte) Ltd COFCO Limited Julius Baer Holding Ltd The Pepsi Bottling Group Cognizant Technology Solutions Kamaz Inc. Third Avenue Management LLC Commerzbank AG Khazanah Nasional Berhad* Thomas H. Lee Partners LP CPP Investment Board Khosla Ventures Towers Perrin Creative Artists Agency Kohlberg Kravis Roberts and Co.* TVM Capital GmbH Dangote Group Land O’Lakes Inc. United Industrial Corporation (OPK)* DaVita Inc. Leighton Holdings Ltd* Vestas Wind Systems A/S* Developers Diversified Realty Corporation Macy’s Inc.* Walton Street Capital L.L.C. DLA Piper Massmart Holdings Ltd Wesizwe Platinum Ltd DLF Ltd Mérieux Alliance Group Whitbread Group Plc Duke University Medical Center and Health System* MetLife Inc. William Morris Agency Inc. Ecolab Inc. Mzabi Group Wm Morrison Supermarket Plc Enel SpA* Newmark Knight Frank* For more information see EQT Partners AB* Och-Ziff Capital Management Group* about/members+and+partners Eton Park Capital Management LLC OMX AB* Evonik Industries AG* Orkla ASA *have also become Industry Partners First Data Corporation Pacific Alliance Group > James Dimon, Chairman and CEO, JPMorgan Chase & Co., > David J. O’Reilly, Chairman and CEO, Chevron, at the Annual Meeting 2008 at the Annual Meeting 2008
  • 8. Engaging our communities and our constituencies Engaging our communities and our constituencies World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 2 3 Engaging our communities Technology Pioneers The third Young Global Leaders Annual Summit took place in Dalian, People’s Republic of China, The Technology Pioneers programme recognizes in September 2007. Discussions built on the work and our constituencies companies which are designing or developing of the YGL task force on Future Mapping for the technologies that have the potential to change Global Agenda, which seeks to identify major the way business or society works. trends in health, education, the environment, Our Members and Partners are supported and Technology Pioneer companies help the Forum global governance, development and poverty. identify and address future-oriented issues on the Other YGL task forces operate in the fields of global agenda. In 2007-2008, 39 new companies complemented by a number of other communities. education, global security, health and development. were identified as Technology Pioneers by a panel This year, other new initiatives included the Table of global technology experts. The new intake brings for Two initiative. This tackles obesity and life-style the number identified since the programme’s 2000 related diseases in industrialized countries and inception to more than 350. hunger and malnutrition in developing countries. Technology Pioneers actively participated at the The Diversity Initiative, meanwhile, will highlight the Inaugural Annual Meeting of the New Champions, business case for a diverse workforce and create in Dalian, People’s Republic of China, in September an information hub of case studies of best practice. 2007, with more than 30 participating in the Annual 2007-2008 marked the inaugural year of the Forum Meeting 2008. and Harvard’s Kennedy School of Government’s For more information visit YGL Executive Education course. More than 110 YGLs completed the 10-day module. For more information visit The Forum of Young Global Leaders Young Global Leaders (YGLs) are a diverse and dynamic community of the world’s most promising leaders, all selected before they reach the age of 40. In March 2008, the YGL nominations for 2008 were announced, with the group of 245 individuals, from 65 countries, including 121 business leaders. The Forum of Young Global Leaders now brings together > Linah Mohohlo, Governor of the Bank of Botswana, at the World Economic Forum on Africa 2008 more than 800 exceptional individuals from business, government, public bodies, academia and the arts. > Manouchehr Mottaki, Minister of Foreign Affairs of the Islamic Republic of Iran, Annual Meeting 2008 > Young Global Leaders at a workshop session at the Annual Meeting 2008
  • 9. Engaging our communities and our constituencies Engaging our communities and our constituencies World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum   128 Women Leaders and Gender Schwab Foundation for Social The programme remains committed to maximizing Parity Programme Entrepreneurship women’s participation at Forum events. Women’s participation at the Annual Meeting has risen from The Annual Meeting 2008 saw the first meeting of The Forum works closely with The Schwab nations 8% in 2002 to 17% in 2008. our Global Gender Parity Group. This community Foundation for Social Entrepreneurship to of leaders was established by our Women Leaders highlight leading innovators who have combined For more information see and Gender Parity Programme to address the business principles with a public purpose. communities/women+leaders+gender+parity were assessed in our third Global Gender gender gap. Its members are drawn from all Social entrepreneurs address the world’s Gap report to capture the size of the sexual sections of society and, fittingly, represent an The International Media Council most pressing problems with solutions that divide in each country. equal number of women and men. are sustainable, replicable and measurable. The International Media Council (IMC) is a In Davos, the group examined the challenges The Foundation searches for, and selects, world-class community of 100 respected and influential media and opportunities linked to gender gaps in the social innovators through its Social Entrepreneur of figures, ranging from publishers and editors-in-chief workplace, education, politics and health. They the Year competitions. In 2007-2008, the Foundation to columnists and bloggers. It meets at the World “I had the privilege to participate in the launch of exchanged best practice and identified effective screened more than 1,300 applications to pick 27 Economic Forum Annual Meeting and, since 2007, strategies to optimize the use of talent. The social entrepreneurs from around the globe. The at the Annual Meeting of the New Champions. the Global Gender Parity Group – a topic I feel programme also launched Regional Gender chosen entrepreneurs are invited to the Annual At the Inaugural Meeting of the New Champions Parity Groups, committed to closing gender gaps Meeting and to Forum regional meetings. has been neglected for too long – and to witness in September 2007, the IMC’s agenda included an in Latin America, the Middle East and Africa. Initiatives this year included: evaluation of opportunities for media companies the commitment the Forum put behind it.” In 2007-2008, the programme published its third in China with industry leaders from the media and The instigation of more than 70 social Global Gender Gap report. This captures the size entertainment sector. entrepreneur/business partnerships of the sexual divide in 128 countries across four Orit Gadiesh, Chairman, Bain & Company Inc At the Annual Meeting 2008, the cornerstone of areas: economic participation and opportunity, A social entrepreneur workspace session the discussion was on the future and the value of political empowerment, educational attainment, at the India Economic Summit media. This included a regional perspective from and health and survival. The linking of social entrepreneurs with more Latin America, with an exchange with Alvaro Uribe than US$ 50 million of capital to help them grow Velez, President of Colombia, exploring how the their ventures media influences the political process in his country. A Social Entrepreneur Summit in January 2008 For more information see in Rüschlikon, Switzerland communities/internationalmediacouncil For more information visit > William H. Gates III and Professor Klaus Schwab at the Annual Meeting 2008 > Soud Ba’alawy, Executive Chairman, Dubai Group > WorkSpace session 2008
  • 10. Shaping the global agenda Shaping the global agenda World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 6 7 Shaping the global agenda “Governments should join with the private “It is critical to combat The World Economic Forum works with global sector, NGOs and faith terrorism to enhance groups in a common security and encourage approach to issues such investment.” leaders throughout the year. Our meetings, as water and health.” Alvaro Uribe Velez World Economic Forum initiatives and online networks provide a unique Gordon Brown on Latin America 2008 World Economic Forum Annual Meeting 2008 environment where leaders can engage with peers from all parts of society and the globe “Collaboration is the “Our meeting has a keyword to progress positive impact on the on the issues of climate in a spirit of collaboration and openness. business environment change, Africa’s in Russia and its development and the investment component.” global economy.” Dmitry Medvedev Yasuo Fukuda World Economic Forum World Economic Forum Russia CEO Roundtable 2008 Annual Meeting 2008 “The current international “The light of liberty is “The World Economic economic crisis “There is much better beginning to shine in the Forum on Latin America introduces many clarity in the political Middle East… Nations 2008 will help us all problems where leadership on the have the opportunity build a much better social and economic African continent about to move forward with Latin America.” dimensions are where we need to go.” bold reforms.” intertwined.” Felipe Calderón Thabo Mbeki George W. Bush World Economic Forum World Economic Forum Muhammad Hosni Mubarak World Economic Forum on Latin America 2008 on Africa 2008 World Economic Forum on the Middle East 2008 on the Middle East 2008 “Not one challenge in “The World Economic “Let us invest in our “The challenge is now the world today will get Forum New Champions young people, work to the developed better if we approach it are new forces in with them, listen to them, world, bring down your without confidence in the the changing world tap their energy and emissions and we will appeal and effectiveness economic environment.” respect their hopes.” stay below that.” of our ideals.” Wen Jiabao H.M. King Abdullah II Palaniappan Chidambaram Condoleezza Rice Annual Meeting of the World Economic Forum on the World Economic Forum World Economic Forum New Champions Middle East 2008 Annual Meeting 2008 Annual Meeting 2008 “There must be a “If you could just direct “I speak to those most “We must harness the breakthrough that can 1% of sovereign vulnerable to climate resources and skilled convince Congress, assets into investment change, who suffer the manpower and involve US farmers and other opportunities in Africa, most grinding poverty. our people more in economic actors there you could put US$ Let 2008 be the year development.” is enough in a Round 30 billion into African of the bottom billion.” package for them.” development.” Raila Odinga Ban Ki-moon World Economic Forum Susan Schwab Robert Zoellick World Economic Forum on Africa 2008 World Economic Forum World Economic Forum Annual Meeting 2008 Annual Meeting 2008 Annual Meeting 2008
  • 11. Shaping the global agenda Shaping the global agenda World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum   Shaping the global agenda World Economic Forum Annual Meeting 2008 Concerns over market volatility and systemic financial risk captured headlines early on in Davos, The Annual Meeting once again provided an but the leaders taking part were continually mindful unrivalled platform for leaders from all walks of of the broader global agenda. In the opening The greatest challenges facing humanity can life to shape the global agenda. More than 2,400 session, US Secretary of State Condoleezza Rice participants assembled in Davos in January, observed that “what comes front and centre for all tapping into the collective wisdom of leaders 2,400 only be addressed collaboratively. The Forum of us is the turbulence – political and economic – in from business, government, the media, academia, our world”. The presence of Hamid Karzai, President the arts and civil society. of Afghanistan, and Pervez Musharraf, President of helps facilitate collaborative dialogue and action This year’s gathering, the 38th Annual Meeting, Pakistan, also served to remind participants that took The Power of Collaborative Innovation as its international efforts to bring stability to those throughout the year by bringing leaders together principal theme. The absence of leadership and two countries were far from resolved, given the stewardship at the global level is seen as a major dangerous revival of terrorism and extremism. leaders from the worlds of business, obstacle to making progress on the global agendas. government, the media, academia, Climate change too remained a high priority at to address fundamental global issues, such as Collaboration and innovation are at the core of the arts and civil society participated the Annual Meeting 2008, which closely followed the Forum’s multistakeholder model and this in our Annual Meeting. on from the UN Climate Change Conference year’s theme resonated with the leaders in the environment, economy, resource shortages, in Bali, Indonesia. There was great interest in Davos, as they sought new ways to address understanding exactly what framework for global challenges together. reducing global emissions will emerge to succeed health and education. Up to and during the Annual Meeting, world events the current Kyoto Protocol by the end of 2009. continued to reshape the agenda. First and foremost In a timely address, Prime Minister Yasuo Fukuda was the intensifying global liquidity crisis, triggered of Japan, the host of the G8 Hokkaido-Toyako by the collapse of the US sub-prime market the Summit in July, chose Davos to launch a Cool Earth previous year. The credit drought in mid-January Promotion Programme. The programme focuses confirmed that global financial markets were on three areas, energy efficiency, emission reduction navigating uncharted waters and that underlying and innovation. In support of the programme, the risk management models should be renewed. premier announced a new Japanese fund, the Cool The Forum’s Global Risk Network provided a timely Earth Partnership, offering US$ 10 billion for clean contribution to the debate with its Global Risks energy technology and emissions reduction projects. Report 2008, including a special focus on systemic > Hamid Karzai, President of Afghanistan, at the Annual Meeting 2008 The Forum maintained its climate change link with financial risk. Among the sessions addressing this the Japanese premier after Davos, in the run-up challenge was the World Economic Brainstorming to Japan’s hosting of the G8 summit. In June 2008 (WEB), which brought together 200 economists, Executive Chairman Klaus Schwab presented policy-makers and executives to map out critical Fukuda with a detailed list of climate change obstacles to growth in the coming year. And, in a recommendations to feed into the G8 agenda. first for Davos, the heads of major sovereign wealth funds also participated in cross-industry discussion covering a broad range of economic topics. > Annual Meeting 2008
  • 12. Shaping the global agenda Shaping the global agenda World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 20 2 “The challenges to The pragmatic recommendations were drafted In 2008, for the first time, the Forum invited the Panellists included: Mohammad Khatami, The Dalian summit also allowed the Forum to by more than 100 CEOs and chairmen of leading public to participate directly in the Annual Meeting. President of the Islamic Republic of Iran (1997- continue to expand its efforts in health. Its Global ensuring access to companies, as part of the Forum’s Gleneagles Through a link-up with YouTube, people around 2005); Howard B. Dean Chairman, Democratic Health Initiative delivered Health@Dalian, a series Dialogue Initiative. the world were invited to record their answer to National Committee, USA; Pascal Couchepin, of high-impact public and private sessions on both medicines, vaccines the Davos Question: What one thing do you think President of the Swiss Confederation, Federal chronic and infectious diseases. And the Forum’s Other environmental concerns on the Annual that countries, companies or individuals must do Department of Home Affairs, Switzerland; Achim Young Global Leaders used the gathering to launch Meeting agenda were food and energy shortages. and quality healthcare to make the world a better place in 2008? There Steiner, Executive Director, The United Nations “Table for Two”, a two-pronged initiative that aims to Water scarcity was another worry, with fears that were more than 7 million visits to the site and a Environment Programme, and Reid Hoffman, tackle obesity in developed nations and hunger in future conflicts could be fought to secure supplies. in the developing selection of responses from the public were Chairman and President of the Linkedln the developing world by encouraging healthy eating In his first appearance at the Annual Meeting as shown to the Annual Meeting. Many participants, Corporation, USA. in company cafeterias and restaurants. For each United Nations Secretary-General, Ban Ki-moon world are complex. including rock star Bono and Israeli President meal consumed, 20 cents is donated to fund healthy warned: “Population growth will make the problem Annual Meeting of the New Champions Shimon Peres, recorded their own answers. school meals in a developing country. The Forum worse… as the global economy grows, so will its Sustainable solutions and the World Health Organization also collaborated thirst.” Ban cautioned that “many more conflicts For more details see The Inaugural Annual Meeting of the New on a two-day conference in Dalian highlighting lie just over the horizon” and highlighted the fact Champions, a “Summer Davos”, took place in will only come from effective workplace wellness programmes. that the Millennium Development Goals (MDGs), Dalian, China, in September 2007. This event Open Forum Davos 2008 which call for halving the proportion of people brought together the Forum’s Global Growth The resounding success of the event set a strong building partnerships without access to safe drinking water by 2015, Companies, our new community of fast-growing precedent for the Second Meeting of the New The Open Forum, organized in cooperation with were key to avoiding such conflicts. businesses, along with Technology Pioneers and Champions, taking place in Tianjin, China, in that implement the Federation of Swiss Protestant Churches, runs Young Global Leaders. The communities were September 2008. The secretary-general also announced in Davos concurrently with the Annual Meeting. It offers a also joined by leaders from some of the world’s comprehensive that he would gather world leaders at the UN this possibility for an open debate between members For more information see most dynamic cities and regions. September “for a critical high-level meeting on of the public and participants at the Annual Meeting approaches.” the MDGs, focusing in particular on Africa”. on globalization and its consequences. More than 1,700 people, representing 90 nations, annualmeetingofthenewchampions attended. The first 125 Global Growth Companies, In this context, the Annual Meeting highlighted the The Open Forum 2008 again attracted a wide 40% of which were Asian businesses, were Richard T. Clark, Chairman, President fact that industry has an important role to play in range of local people from all walks of life. More welcomed into founder membership in Dalian. and Chief Executive Officer, Merck & Co. addressing such global issues. Business leaders and more travelled to Davos specifically to These New Champions were able to share ideas expressed willingness to develop frameworks for participate in the Open Forum, including a group with each other and with representatives of engagement around the concept of corporate of students from Geneva’s international school. established businesses – a true mixing of the global citizenship. In a related vein, the chairmen Topics covered in the seven sessions included old and new economies. and CEOs of 14 global corporations were the resurgence of religions, the role and impact founding signatories to Partnering to Strengthen Wen Jiabao, Premier of the People’s Republic of of private equity and hedge funds, the US after Public Governance, a new roadmap showing China, told participants that his country recognised the 2008 presidential elections, the climate change how businesses can work more effectively with the need “to co-operate with the international divide and virtual worlds. In all cases, the Open public bodies. community on the basis of equality and mutual benefit Forum allowed in-depth conversations and lively to promote balanced, universal and win-win progress discussions between the public and participants in economic globalization”. Addressing the role of the of the Annual Meeting. New Champions, he praised the Forum for reflecting the international community’s “strong desire to establish a new international economic order”. > Wen Jiabao, Premier of the People’s Republic of China > Shimon Peres, President of Israel, at the Annual Meeting 2008 at the Inaugural Annual Meeting of the New Champions > Tony Blair, Middle East Quartet Envoy and Member of the Foundation Board of the World Economic Forum
  • 13. Facilitating international private-public partnerships Facilitating international private-public partnerships World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 22 23 Facilitating international Energy Poverty Action (EPA) Community of West and Islam Dialogue (C-100) This year, the following programmes were particularly active: EPA delivers business expertise and best practice The C-100 is a community of business, political, private-public partnerships to reduce energy poverty by developing innovative, religious, media and academic leaders that promotes Global Health Initiative (GHI) scalable and replicable energy projects. dialogue and understanding across different The GHI’s mission is to engage businesses in segments of Western and Muslim society. public-private partnerships to tackle HIV/AIDS, Much of the work of the World Economic TB and malaria and to improve health systems. “Eskom has actively participated in Forum initiatives, such as EPA. We are “A major milestone in the C-100’s work Forum is done away from the media spotlight. has been the publication of our first “Sustainable solutions will only come from proud that through this concerted annual report. The growth of the profile effort, with other Forum partners, EPA building partnerships that implement has made major progress in developing of this unique community reflects the Throughout the year our Members and Partners comprehensive approaches drawing Forum’s sustained commitment to this energy solutions for marginalized rural on the complementary expertise of all vital arena of our time.” communities in sub-Saharan Africa.” work alongside governments, academics and stakeholders. Through the GHI, the Forum has created new public-private Lord Carey of Clifton, Archbishop of Canterbury Jacob Maroga, CEO, Eskom Holdings (1991-2002) partnerships and led the way in public bodies on important programmes and Global Education Initiative (GEI) understanding how to make such Managing Our Future Water Needs Initiative collaborations work effectively.” The GEI aids the roll-out of relevant, sustainable and initiatives that help tackle major global issues. scalable national education sector plans by catalysing The Water Initiative aims to secure safe, sustainable Richard T. Clark, Chairman, President partnerships between the private and public sectors. water for all by raising awareness, leveraging the and CEO, Merck & Co. competencies of international business, and catalysing new multi-stakeholder platforms. Climate Change Initiative “As a GEI steering board member, we have seen the power of multistakeholder The Route to Copenhagen Climate Change “When society faces global challenges Initiative will catalyse public-private workstreams partnerships to improve the quality of like water scarcity, we all need to come to provide pragmatic recommendations to help education and to enable today’s students together to leverage our individual efforts. governments negotiate the successor to the Kyoto to play a central role in growing the global Protocol, at a major December 2009 UN meeting. Business leaders have a critical role to knowledge economy.” play. Supporting the communities we > Annual Meeting 2008 Craig Barrett, Chairman, Intel Corporation serve is not just enlightened self-interest, “Business is a very important actor when it is quite literally self-interest.” it comes to fighting climate change. It’s Business Alliance Against Chronic good to see that so many companies Hunger (BAACH) E. Neville Isdell, Chairman and CEO, have come together to deliver a solid The Coca-Cola Company BAACH is a cross-industry, multistakeholder initiative statement to the G8 leaders and are that harnesses business expertise to generate ready to step up to their responsibilities.” market-based solutions that alleviate deprivation. Peter Bakker, CEO, TNT “The Business Alliance Against Chronic Hunger is a pioneering initiative to develop business solutions to hunger and poverty that are sustainable for both the community and the company.” Michael Treschow, Chairman, Unilever > Wendy Luhabe, Chairperson, Industrial Development Corporation, South Africa, and Co-Chair of World Economic Forum on Africa 2008 > Annual Meeting 2008
  • 14. Shaping the regional agenda Shaping the regional agenda World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 2 2 Shaping the regional agenda World Economic Forum India Economic Summit World Economic Forum on the Middle East World Economic Forum Russia CEO Roundtable More than 800 leaders from 40 nations gathered US President George W. Bush was one of 12 in New Delhi in December 2007 for the 23rd India national leaders at the World Economic Forum In June 2008, around 80 CEOs and chairmen The Forum’s programme of annual summits Economic Summit. on the Middle East in Sharm El Sheikh, Egypt, from Member companies met with the new Russian in May 2008. President Dmitry Medvedev, in St Petersburg, indiaeconomicsummit2007 just one month after his inauguration. complements our Annual Meeting by focusing worldeconomicforumonthemiddleeast2008 “As India continues to expand its worldeconomicforumrussiaceoroundtable2008 “One of the goals I have for this summit global leadership, we must work with attention on key regions. In 2007-2008, more “We were deeply impressed by the is to give greater visibility to innovative, its leaders to balance its rapid growth president’s knowledge of the business market-based approaches to social with continued commitment in areas than 4,000 leaders, from all parts of society, challenges and opportunities in Russia and environmental problems.” of social responsibility.” and his willingness for an open and Paul Rice, President and CEO, TransFair Hector Ruiz, Chairman and CEO of AMD participated in a number of regional events. transparent dialogue.” and meeting Co-Chair and Summit Co-Chair Muhtar A. Kent, President and COO of The Coca-Cola Company and roundtable Co-Chair World Economic Forum on Africa World Economic Forum on Latin America The theme “Capitalizing on opportunity” engrossed Our Latin America meeting took place in Cancun, World Economic Forum on East Asia 900 leaders from 50 countries at the meeting in Mexico, in April 2008. The event explored the topic Cape Town, South Africa, in June 2008. “Securing a place in an uncertain economic Leaders from 25 nations gathered in Kuala Lumpur, landscape”. Malaysia, in June 2008 to discuss the meeting’s worldeconomicforumonafrica2008 worldeconomicforumonlatinamerica2008 topical theme “Responding to new uncertainties”. “In the globalized era of the 21st century, “This meeting will help all of us build government alone cannot do everything “This meeting is a good opportunity to a much better Latin America, one and how to bring other partners into the study what changes are happening in that looks to the future with optimism.” process of responsible decision making is the region and how we can collaborate Felipe Calderón, President of Mexico and a very big challenge, one which the World to affect its politics and economics.” meeting host Economic Forum is helping to lead.” Takao Kusakari, Chairman, Nippon Yusen > World Economic Forum on Africa 2008 Kabushiki Kaisha (NYK Line) and meeting Co-Chair Sadako Ogata, President, Japan International Cooperation Agency and meeting Co-Chair > Professor Klaus Schwab and US President George W. Bush, > Outside the Sharm El Sheikh International Congress Center, World Economic Forum on the Middle East 2008 World Economic Forum on the Middle East 2008
  • 15. Shaping the industry agenda Shaping the industry agenda World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 26 27 Shaping the industry agenda Industry Partnership Programme The Automotive, Energy and Engineering, and Construction partnerships successfully Our Industry Partnership Programme grew strongly launched the cross-industry SlimCity initiative over the past year with a 37% increase in the number to focus on energy and resource efficiency Our strong partnership with industry, across of partnerships. It now incorporates 269 partnerships in the urban environment. across 18 industries, an intensive programme of meetings, and more than 25 specific projects. all sectors and geographies, is central to The International Business Council Four industry sectors – energy, financial services, The International Business Council (IBC) is a information technology and investors – now have our mission. In 2007-2008, we continued to far-sighted community of 100 respected chief more than 30 companies, enabling these groups executives from all industries. They meet to effectively represent their global industry. As well twice yearly for informal and private exchanges. shape the industry agenda, expanding our as representing individual sectors, however, their programme also provides a shared platform for Topics at the IBC Summer Meeting in 2007 ranged collaboration between industries. from dealing with the new investor landscape, to relationships with established global businesses finding better ways to combat corruption. The During 2007-2008, the programme coordinated winter sessions, during the Forum’s Annual Meeting initiatives, ranging from major research reports 2008, included exchanges with the heads of and developing a new community of emerging to those designed to have an immediate impact sovereign wealth funds and with Yasuo Fukuda, in their target sector. The growing number of Prime Minister of Japan. members, meanwhile, means we are confident and growing companies. that we will reach our ambitious launch target Some IBC members served as mentors at the of 300 commitments by the end of 2008. Inaugural Annual Meeting of the New Champions in Dalian. Members also took part in the CEO The programme is managed in conjunction with Roundtable in St Petersburg, an opportunity to our North American affiliate, the World Economic meet in private with the newly elected President Forum USA, and is led from New York, the of the Russian Federation, Dmitry Medvedev. headquarters for our Centre for Global Industries. For more information see For more information see communities/internationalbusinesscouncil about/industrypartnershipprogramme Annual highlights included: > Workshop at the Annual Meeting 2008 A call to action at the Annual Meeting 2008 by our Industry Partners to raise awareness about water scarcity and highlight the need for urgent action. The aim is to make water a strategic management issue for both businesses and governments The commissioning of a groundbreaking study on The Global Economic Impact of Private Equity by the Investors Industry Partnership. The study shared the work of a distinguished academic team drawn from leading global institutions > World Economic Forum on the Middle East 2008
  • 16. Collective intelligence Collective intelligence World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 2 2 Collective intelligence Global Competitiveness Network We also produced two important national competitiveness studies. At April’s World Economic In 2007-2008, the Forum’s Global Forum on Latin America in Cancun, Mexico, Competitiveness Network extended both we presented a white paper: “Assessing the Our Strategic Insight teams harness knowledge its audience and its remit. Foundations of Mexico’s Competitiveness: Findings The 28th edition of the network’s Global from the Global Competitiveness Index 2007- in support of our members, and our wider Competitiveness Report ( 2008”. This study offers a snapshot of Mexico’s initiatives/gcp) was launched in October 2007. competitive landscape and suggests priority areas The report is widely seen as the key international for the design of a national competitiveness strategy. mission. They build and sustain networks reference guide to measures of competitiveness, The following month, the Global Competitiveness providing global rankings for over 110 indicators. Network launched the first Ukraine Competitiveness of experts to develop industry and sector The latest edition features a record 131 economies, Report ( up from 125 in 2006. For the first time, its findings countrystudies). are published on a special interactive website: knowledge, measure competitiveness Global Risk Network The Global Competitiveness Network embodies The Global Risk Network marries perspectives and stimulate fresh thinking. the Forum’s three decades of experience in on risks from business, expert institutions and analysing the factors that make an economy academia, and policy-makers. Now in its fourth competitive. By highlighting the strengths and year, the network’s role is growing in importance 131economi weaknesses of individual economies, our as new risks arise in areas such as financial stability, benchmarking reports provide a platform for water and food supply, and energy security. dialogue and aid effective formulation of improved es The Global Risk Network tracks and evaluates economic policies and institutional reforms. The changes surrounding a set of 23 core risks, Global Competitiveness Network team works with considering both the probability of risk events were ranked against 110 indicators of leading academics worldwide to ensure that the occurring and the seriousness of their potential competitiveness in the 28th edition of latest thinking and research on global impact. In particular, it explores the links between our Global Competitiveness Report. competitiveness is incorporated into our reports. different areas of risk, including the economic, In June 2008, we published our first Global financial, technological and geopolitical spheres. Enabling Trade Report ( The result captures how combinations of global risks > Michael E. Porter, Wang Jianzhou, Indra K. Nooyi, Gordon Brown, H.M. Queen Rania Al Abdullah, Peter Sands documents/getr08_browser). This highlights might play out in different economies and industries. and John T. Chambers at the session “Corporate Global Citizenship in the 21st Century”, Annual Meeting 2008 the key role international trade plays in economic Our flagship report Global Risks 2008 development and was produced in conjunction ( was with the Industry Partnership for Logistics and published in January 2008, in association with Transport. It features data, rankings and analysis Strategic Partners Citigroup, Marsh & McLennan of the factors enabling trade in 118 economies, Companies, Swiss Re, Wharton School Risk as well as fresh thinking and research from Centre and Zurich Financial Services. It focuses on prominent trade experts and industry practitioners. four issues where multiple risks converge: systemic We also produced our second Travel and Tourism financial risks, food security, supply chains and Competitiveness Report ( the role of energy. With concerns mounting over initiatives/gcp/travelandtourismreport), in March write-downs in the financial sector triggered by 2008, with the Industry Partners for Aviation, the sub-prime crisis, sharply rising energy and Travel and Tourism. food prices and increasing pressure on water > Annual Meeting 2008 In April 2008, the Global Competitiveness supply and quality, the analysis was very timely. Network published its seventh Global Information As awareness of global risk grows, businesses and Technology Report ( governments are increasingly keen to know what initiatives/gcp/global+information+technology systems can be developed to manage these risks. +report) covering 127 economies worldwide. During the course of the year, we ran workshops The report, produced in conjunction with INSEAD in China, the US, Europe and India to evaluate the and sponsored by Cisco Systems, has become likely evolution and consequences of demographic, the world’s most comprehensive and authoritative political and social trends, the associated risks assessment of the impact of information and and how they may be linked. communication technologies on development and the competitiveness of nations. The report – themed “Fostering innovation through networked readiness” – emphasizes that a dependable, rapid and accessible IT network is an essential public infrastructure.
  • 17. Collective intelligence Collective intelligence World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 30 3 Global University Leaders Forum (GULF) Systemic financial risks were under particular Building on The Gulf Cooperation Council (GCC) scrutiny in 2007-2008. The network launched Countries and the World: Scenarios to 2025 project The Global University Leaders Forum (GULF) a dialogue series on the topic which included from 2007, the Forum explored the future of Saudi adds to the Forum’s intellectual capacity and a workshop at the World Economic Forum on Arabia, Bahrain and the United Arab Emirates in is a community to enhance insights. Presidents East Asia, as well as a meeting in New York three separate studies. Each represents a so-called of the following universities are members: on “Identifying the next crisis: perspectives “deep-dive”, a focused view on how each nation Ecole polytechnique fédérale de Lausanne (EPFL); on systemic financial risk”. might look in 2025 under three distinct scenarios Eidgenössische Technische Hochschule (ETH) for the region. The scenario approach was used Through our Region@Risk series, we extended Zurich; INSEAD; Indian Institute of Technology to support sessions at the World Economic Forum our analysis of global risks in regional contexts, Madras; Keio University; University of Tokyo; on the Middle East in May 2008 under the theme with reports on India, the Middle East and Latin Tecnologico de Monterrey; University of Tsinghua; “Learning from the Future”. America. The regional studies provide invaluable Peking University; National University of Singapore; insight on risk areas pertinent to each regional Our Engineering and Construction: Scenarios University of Cape Town; London Business School; “Through our Region@Risk series we context and to channel discussions at the to 2020 project ( London School of Economics and Political Science; corresponding regional meetings. (For more examines the future business environment that University of Oxford; University of Cambridge; extended our analysis of global risks in information see those involved in capital-intensive and infrastructure Columbia University; Johns Hopkins University; globalrisk/reports). projects will face. The scenarios were constructed Caltech; Georgetown University; Harvard University; regional contexts, with reports on India, over the course of a year through discussions University of Pennsylvania; Massachusetts Institute of Scenario planning and workshops involving more than 100 industry Technology; Yale University; and Brown University. the Middle East and Latin America.” stakeholders. Outcomes were presented at the The World Economic Forum’s scenario planning Annual Meeting 2008, outlining four possible energizes debate to illuminate the repercussions scenarios for the sector. of today’s decisions and, crucially, to bring together stakeholders with diverse world views. Each The Financing Demographic Shifts: Pension scenario is a story about the future, it is not a and Healthcare Scenarios to 2030 project prediction, rather an attempt to sketch the ( boundaries of what might happen. graphicshifts) examines the future of retirement and health services in a rapidly ageing world. A In 2007-2008 the scenario planning team worked cross-industry team developed scenarios at the with the Forum’s Industry Partners on five major global level, as well as completing country-specific scenario projects, engaging more than 600 studies of Italy and China. The project includes an participants in highly interactive and thought- overview of strategic options for key stakeholders. provoking workshops. An interim report was published at the Annual Meeting 2008, with the full study due to be published at the Annual Meeting of the New Champions in Tianjin, People’s Republic of China, in September 2008. For more information visit: > Annual Meeting 2008 > Annual Meeting 2008 > Professor Klaus Schwab at the Annual Meeting 2008 > Annual Meeting 2008
  • 18. Our organization Our organization World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 32 33 Our organization The Foundation Board Managing Board On 1 July 2008, the Foundation Board comprised: The Foundation Board is responsible for maintaining > Klaus Schwab, Executive Chairman The Managing Board acts as the executive body business and public confidence by ensuring an of the Foundation. It ensures that activities fulfil the > Josef Ackermann, Chairman of the Management An organization is only as strong as its exemplary standard of governance throughout the mission of the World Economic Forum and acts as Board and Group Executive Committee, Forum. It acts as the Board of Trustees and guardian its representative to outside parties. In 2007-2008, Deutsche Bank, Germany of the Forum’s mission, values and brand. the Managing Board consisted of: > Kurt Alig, Secretary leadership. The World Economic Forum is guided > Kofi Annan, Secretary-General, United Nations Foundation Board members are individuals with > Klaus Schwab, Executive Chairman (1997-2006) unique leadership experience from business, politics, > André Schneider by a Foundation Board of exceptional individuals, > Tony Blair, Middle East Quartet Envoy, academia and civil society. They do not represent any > Richard Samans United Nations personal or professional interests. Membership criteria > Børge Brende (since 1 January 2008) > Peter Brabeck-Letmathe, Chairman of the Board, who act as guardians of our mission and values include integrity, global vision, leadership experience > Robert Greenhill (as of August 2008) Nestlé, Switzerland and engagement in world affairs. For more information about the Managing Board, > Victor L. L. Chu, Chairman and Chief Executive The board supervises the activities of the visit Officer, First Eastern Investment Group, Hong and ensure strong corporate governance. Foundation and its bodies including approving Kong SAR Directors the strategic direction of the Forum, defining the > Michael S. Dell, Chairman and Chief Executive roles of the Managing Board and committees, Officer, Dell, USA Mark Adams** and approving the annual accounts and the > Niall FitzGerald, Deputy Chairman, Thomson David Aikman* Foundation’s budget. Reuters, United Kingdom Guy-Serge Baer > Orit Gadiesh, Chairman, Bain & Company, USA Each member sits on at least one of the four board Carine Benetti > Carlos Ghosn, President and Chief Executive committees: the Audit Committee, the Executive Jennifer Blanke Officer, Renault, France; President and Chief Committee, the Strategy Committee and the Børge Brende** Executive Officer, Nissan, Japan Programme Committee. Denise Burnet > Rajat K. Gupta, Chairman of the Board, The Jean-Loup Denereaz As of January 2008 the board added four new Global Fund to Fight AIDS, Tuberculosis and Laurent Desnoux members: Kofi Annan, Secretary-General, United Malaria; Senior Partner Emeritus, McKinsey Elizabeth Dreier Nations (1997-2006); Susan Hockfield, President, & Company, USA Sherif El Diwany Massachusetts Institute of Technology, USA; > Susan Hockfield, President, Massachusetts Christoph Frei* Christine Lagarde, Minister of Economy, Industry Institute of Technology, USA Malte Godbersen* and Employment of France; and Joe Schoendorf, > Christine Lagarde, Minister of Economy, > Kofi Annan, Secretary-General, United Nations (1997-2006) and Kofi Annan Foundation; Guy Goodwin Member of the Foundation Board of the World Economic Forum Partner, Accel Partners, USA. Industry and Employment of France Lee Howell* > Maurice Lévy, Chairman and Chief Executive During the Annual Meeting 2008, Flavio Cotti and Julianne Jammers Officer, Publicis Group, France Lord Carey whose three terms of three years had Stéphanie Janet > Nandan M. Nilekani, Executive Co-Chairman, come to an end, did not seek re-election. The board Jeremy Jurgens Infosys Technologies, India expressed its great appreciation for their Massimo Marino > Ivan Pictet, Senior Managing Partner, engagement and friendship. Fon Mathuros Pictet & Cie Private Bankers, Switzerland Fiona Paua* > H.M. Queen Rania of the Hashemite Kingdom Gilbert Probst** of Jordan Rick Samans** > Joseph P. Schoendort, Partner, Accel André Schneider** Partners, USA Mirjam Schoening > Peter D. Sutherland, Chairman, Goldman Sheana Tambourgi Sachs International, United Kingdom Regula Waltenspuel > Heizo Takenaka, Director, Global Security Dominic Waughray Research Institute, Keio University, Japan Alex Wong* > Ernesto Zedillo Ponce de Leon, Director, * Senior Director Yale Center for the Study of Globalization, ** Managing Director Yale University, USA For more information about the Foundation Board, > H.M. Queen Rania Al Abdullah visit
  • 19. The Forum Community The Forum Community World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 3 3 The Forum Community Our people Nationality American 31 Our headcount stands at 302 (2006-2007: 277), Andorran 1 reflecting the growing needs of our mission and The skills, knowledge and dedication of Argentinian 3 strategy. We continue to attract extremely skilled, motivated and internationally trained people, Australian 4 enhancing our diverse, multistakeholder focus. Belgian 2 our people are essential to the success of Brazilian 3 Our staff represent 55 nationalities, of whom 58% British 25 are women and 83% are graduates, with 7% the Forum. They are drawn from diverse holding a PhD. The average age of our team is 36. Cameroonian 1 Canadian 10 international backgrounds and experiences, Global Leadership Fellows Chinese 10 Now entering its fourth year, our Global Leadership Colombian 1 Fellows programme is drawing talented young mirroring our broad global agendas. The first Croatian 1 professionals from around the world. The programme Czech 1 aims to develop leaders who are highly competent in Danish 2 of our Global Leadership Fellows graduated both the public and private sectors and well-versed Dutch 13 in key global, regional, and industry issues. Egyptian 1 this year, helping shape a new generation Following the first graduation in June 2008, nearly Erithrean 1 70 fellows are now working for the Forum. Ethiopian 2 of Forum ambassadors. Fellows are full-time Forum employees for three Finnish 2 years, while simultaneously following Master’s level French 23 coursework. The programme consists of two years German 22 of academic courses with a third year dedicated 55 Greek 1 to project work, leadership workshops, coaching Guatemalan 1 and mentorship. Hungarian 1 Classes are taught by leading lecturers and tutors nationalities Indian 6 drawn from our Academic Partners, which include Irish 5 INSEAD, Columbia University and London > World Economic Forum staff Italian 12 are represented in our staff, of whom 58% Business School. are women and 83% are graduates, with Japanese 5 7% holding a PhD. The average age of our World Economic Forum, China Kazakh 1 team is 36. Kenyan 1 Our Beijing Representative Office continued to Korean South 1 expand the Forum’s membership base in China. The office strengthened our relationships with Latvian 1 additional stakeholders including government, Lebanese 2 academia and civil society. Malagasy 1 Mexican 3 The Beijing team supports our work with Chinese Forum members, potential members and Global Moroccan 3 Growth Companies. Another 40 companies have New Zealander 1 joined the Forum’s communities and activities since Nigerian 1 July 2007. Norwegian 2 In partnership with the National Development & Pakistani 2 Reform Commission, the Beijing office places a Polish 3 strong emphasis on further developing government Portuguese 2 relations. In the past year, we harnessed wide Romanian 2 government support and forged formal working Russian 2 relations with 15 ministries in the Chinese Central Singaporean 1 Government and over 20 provincial and municipal governments. Chinese Premier Wen Jiabao Slovak 1 participated in the Inaugural Annual Meeting South African 2 of the New Champions in Dalian. Spanish 11 Sri Lankan 1 Swedish 9 Swiss 54 Thai 1 Tunisian 2 Ukrainian 1 Venezuelan 1 Average age 36
  • 20. Our financial results Our financial results World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 36 37 Our financial results Financial policy Despite the increase in our activities, and the corresponding expansion of our Geneva and Beijing Our financial policy indicates that, in principle, offices, we maintained a tight control on expenditure, members’ fees cover operational costs, events are with staff costs increasing by under 9% – less than The Forum delivered a good financial funded through cost contributions and projects are half our rise in income. supported by income from partnership contracts. As a non-profit organization, we do not focus on performance in 2007/2008, with income up The World Economic Forum may accept grants, delivering surplus. However, the strong year allowed donations, legacies and other contributions or us to add Sfr 2,388,248 to the Foundation reserves, subsidies that are consistent with its mission. by over 18%. The strong results reflected the increasing the overall total by 12% to Sfr 22,308,475. The Forum makes no payments to political personalities, parties or other organizations Looking ahead to 2008/2009, despite the more continuing success of our activities, including and avoids involvement in national politics. uncertain economic climate, we are confident our prudent financial direction and strong programme will Auditors enable the Forum to have another successful year. the new Global Growth Companies programme, The World Economic Forum’s financial results are audited by PricewaterhouseCoopers, which examines and the high number of members who the balance sheet and accounts. The Annual Report, along with other institutional documents, is submitted to the Swiss Federal Government, which acts as the demonstrated their commitment to the Forum Foundation’s legal supervisory body. by becoming Strategic or Industry Partners. > Artist capturing ideas at a WorkSpace session at the Annual Meeting 2008 Year 2007/2008 2003/2004 2004/2005 2005/2006 2006/2007 Total income* 74,058,911 83,336,839 104,766,543 114,574,874 135,658,953 out of which members’ fees 25,137,257 26,546,382 26,410,294 27,763,874 34,507,970 participation fees 20,543,108 20,824,213 27,063,138 30,160,303 33,760,750 partnership 24,552,385 31,035,927 44,668,943 50,881,934 58,701,386 Total expenditure 72,307,790 82,083,503 102,735,578 111,805,027 133,270,705 out of which personnel costs 29,620,236 35,723,308 40,035,452 47,887,856 52,046,876 office costs 9,044,738 9,253,213 12,537,175 11,884,632 14,679,276 activity-related costs 33,642,815 37,106,982 42,732,347 52,032,539 66,544,553 Surplus to be added to the Foundation capital 1,751,121 1,253,336 2,030,965 2,769,846 2,388,248 Foundation capital 13,866,079 15,119,415 17,150,380 19,920,227 22,308,475 Total staff full time 134 162 204 247 266 out of which seconded by Forum members 5 5 7 8 11 part time 28 31 25 30 31 These figures refer to the World Economic Forum Geneva only (including its operations in Beijing). *all key figures in Swiss francs
  • 21. World Economic Forum USA World Economic Forum USA World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum 3 3 World Economic Forum USA The Forum USA team made tremendous progress The Board of Directors of the World Economic this year. Our Industry Partnership Programme, Forum USA oversees the overall business and under which we serve companies from both our affairs of the organization. It comprises: New York and Geneva offices, included 269 The World Economic Forum USA is the Forum’s Jean-Pierre Rosso (Chairman) partnerships – an increase of over 37% from 2007. Alfred Berkeley These partners span a total of 18 industries. Alan Boeckmann North American affiliate and the headquarters The Centre for Global Industries hosted various William George events and meetings, published a number of Rajat Gupta for the Centre for Global Industries. We focus reports and studies and led key task forces and Joe Schoendorf working groups. Highlights included the: Kevin Steinberg (Secretary) on better serving our members and partners, Mobilization of a public-private partnership on Day-to-day operations for the Forum USA are agriculture water use and water policy reform led by a Management Committee, which serves (Food & Beverage industry group) as its executive body. The committee is: and integrating industry – and other private Establishment of an active working group on John Moavenzadeh Systemic Financial Risk, comprised of private Sarita Nayyar sector expertise – into our organization. sector risk experts, central banks and finance Jean-Pierre Rosso ministries (Banking & Insurance industry groups) Kevin Steinberg, Chief Operating Officer Presentation of private sector recommendations For more information about the Board, officers on climate change at a G8 ministerial meeting or staff, please go to in Germany (a consortium of multiple industries) leadershipteam Publication of a major research report Financial results The Global Economic Impact of Private Equity (Investors industry group). Year 2007/200 18 Total income* ,77,060 The range and quality of work is a testament to the out of which expanded Forum USA team, which included 44 industries New York-based staff. These professionals, drawn members’ fees – from around the world, included four secondees participation fees – from partner organizations. > World Economic Forum USA staff partnership 15,536,249 are represented by the 279 companies who On behalf of the Forum USA team, I would like to make up our Industry Partnership Programme. other income 3,640,811 thank all our Partners and other experts who have Total expenditure 2,6,00 supported our programmes this year. We look out of which forward to continuing to work together. personnel costs 6,227,217 office costs 1,289,999 activity related costs 13,668,788 (2,00,) Surplus *all key figures in US$ Jean-Pierre Rosso Chairman, World Economic Forum USA The Forum USA’s financial results for the 2007- 2008 year exceeded its budget, resulting in a net The World Economic Forum USA was incorporated loss of US$ 2,008,944 from US$ 19,177,060 in in December 2005 as a non-profit business league revenues. All Forum USA financials are reported based in New York. It is impartial and tied to no in US dollars, consistent with US GAAP. political, partisan or national interests. Forum USA is an affiliate of the World Economic Forum, and its The Forum USA’s primary source of financial support relationship is governed by an affiliation agreement, is membership/partnership dues paid by the Forum’s which is a contractual agreement under which the Industry Partners and Industry Associates. In addition, Forum USA coordinates with the World Economic the Forum USA received an initial loan of working Forum when conducting its activities. It is a non- capital from the World Economic Forum, which was profit organization under section 501(c) 6 of the repaid in June 2008. Internal Revenue Service Code. For more information see:
  • 22. Our mission and values Our mission and values World Economic Forum Annual Report 2007-2008 Annual Report 2007-2008 World Economic Forum  41 Our mission and values The Forum was incorporated by Professor Our mission is best realized through activities Klaus Schwab as a foundation in 1971 and has which promote economic and social development. its headquarters in Geneva, Switzerland. It is We believe that economic progress without impartial and not-for-profit and is tied to no social development is not sustainable, while The World Economic Forum is an independent political, partisan or national interests. social development without economic progress is not feasible. Our culture combines the best elements of international organization committed to entrepreneurship with those of public service. Thus, our motto is “entrepreneurship in the improving the state of the world by engaging global public interest”. We cultivate public trust by never compromising our leaders in partnerships to shape global, institutional integrity. We constantly strive to win the respect of our members and constituents by ensuring everything we undertake is “first in class”. We can regional and industry agendas. serve our communities best by making ourselves a role model for a highly interactive, open and fast learning community. > Annual Meeting 2008
  • 23. World Economic Forum 91- 93 route de la Capite CH – 1223 Cologny/Geneva Switzerland Tel.: +41 (0) 22 869 1212 Fax: +41 (0) 22 786 2744 E-mail: The annual report is available electronically at – also in Arabic, Chinese, French, German, Japanese and Spanish versions. ISBN-10: 92-95044-09-6 ISBN-13: 978-92-95044-09-8 Designed and edited by Wardour Photos by R. Kalvar (Magnum); Swiss Image