world economic forum Annual Report 2007


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world economic forum Annual Report 2007

  1. 1. World Economic Forum Annual Report 2006/2007
  2. 2. World Economic Forum Annual Report 2006/2007 This report is available online at
  3. 3. World Economic Forum Annual Report 2006/2007 Contents 0 Executive Chairman’s statement 06 Our major successes and achievements 08 New strategic endeavours 0 Shaping the global agenda 4 Shaping the regional agenda 0 Shaping the industry agenda 4 Building public–private partnerships 8 Creating knowledge networks 3 Engaging our communities and constituencies 35 Working with our members and partners 38 Our organization 40 The Forum community 4 World Economic Forum USA 44 Our financial results 45 Our mission and values The World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas.
  4. 4. World Economic Forum Annual Report 2006/2007 Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum
  5. 5. 3 World Economic Forum Annual Report 2006/2007 Executive expertise and influence were as assured, and Once again the World Economic Forum has invaluable to members, as those of our regional shown itself to be an innovative, dynamic Chairman’s and global perspectives. and insightful organization. Acting as a statement catalyst for global change, we have delivered In this context, I’m pleased that the concept of concrete results that reinforce our mission to Professor Klaus Schwab Corporate Global Citizenship is evolving from a improve the state of the world. We achieved poorly understood slogan to a key principle and this at a time when we continue to expand strategic cornerstone of responsible businesses. and evolve to meet the changing needs of Corporations have not only a licence to operate our partners and members worldwide. in a global space, but also a ‘civic duty’ to contribute to the sustainable health of this global 2006/2007 saw a number of key strategic space in cooperation with governments and civil challenges and opportunities – many of which society. It is for this reason that Corporate Global we share with our members. We have continued Citizenship remains at the very heart of the to work closely with our members and partners Forum’s activities. as well as with other key stakeholders from government and civil society in our mission to The increased engagement of members shape the global agenda in a positive way. As demonstrates the value they place in the Forum part of this mission we have all had to address and its continuing evolution. In 2006/2007, I am the increasing prominence of Asia in the global very pleased to report, our number of Strategic economy and polity. In addition we have a range Partners increased by 18%, as further member of emerging global companies that will take their companies signalled their closer commitment place in the global economy in the near future. to the Forum by joining the programme. We have also addressed the growing importance of online communities both in the One-third of our staff, in 14 sector teams, are way we do business, how the Forum itself now dedicated industry experts and, in 2007, our works, and the way we conduct our lives. North American office, World Economic Forum And we have continued to give prominence to USA, became firmly established as the global identifying and understanding a new generation headquarters for our Centre for Global Industries of global leaders. and for our Industry Partners programme, thus developing unbeatable strategic perspectives The Forum shares with all its members and and a platform to support the concerted action partners a responsibility and an obligation to of our diverse stakeholders. Our Industry reduce its impact on the environment and search Partnership community continues to grow. We for sustainable solutions. As part of this focus, increased the number of active members working in a number of tight-knit communities on a range this year the Forum is sending all members a of industry and cross-industry projects by 95%. condensed print version of this annual report, while offering the full version on our website at We hope that The Forum’s international expansion with an you understand and welcome this move. The established office in Beijing and now new annual report is also available in Arabic, Chinese, premises for our New York headquarters, and the French, German, Japanese and Spanish. Inaugural Annual Meeting of the New Champions, this year in Dalian in China, has extended our Shaping the global agenda: footprint but has not diminished the Forum’s a new global alliance cohesion and unity of purpose. We remain one For many years, the Forum was a relatively organization, with a common mission and culture. lone voice in its passionate advocacy of a multistakeholder approach to global issues. Asia and the rise of the New Champions British Prime Minister Tony Blair, whom I was It has become an established fact that the rising delighted to welcome as a member of our economies of Asia are poised to equal those of Foundation Board in June, captured this the West, revolutionizing the traditional economic truth particularly eloquently at this year’s order. Building relationships and understanding Annual Meeting. between the ‘old’ and ‘new’ economies and business leaders is essential for the future Mr Blair said: “Nations, even the most great, prosperity and stability of both. are realizing that they cannot pursue their narrow national interests without invoking broader global The Forum has a long and successful history values. They are obliged to recognize that of engagement in Asia, and in China and India interdependence is the defining characteristic in particular, where we have had a major impact of the early twenty-first century. The shifting in integrating those countries into the global power equation is, in part, obviously about system. We are therefore perfectly placed to emerging new powers; but it is equally about the be a powerful platform for interaction and fact that power over global issues can only be cooperation between the emerging and effectively wielded today by global alliances, in established economies. This is something the turn based on global values.” Forum has sought to do for many years but it’s clear that this must become a central strategic The key role of business in this ‘global alliance’ goal for the Forum as it must be for many of our is becoming increasingly apparent. In 2006/2007, member companies. The Inaugural Annual the Forum acted to ensure that our business Meeting of the New Champions in Dalian, China
  6. 6. 4 World Economic Forum Annual Report 2006/2007 Executive (6–8 September 2007) brings together emerging I am also delighted to report that our emphasis global companies – we call them the ‘New on discovering and developing new young Chairman’s Champions’ – with today’s leaders to shape leaders is reflected in the participants at Davos statement tomorrow’s business landscape. This inaugural – demonstrating the Forum’s success in meeting creates a powerful platform for connecting with – and our continuing relevance interaction and collaboration between traditional to – rising generations of leaders. Professor Klaus Schwab and new actors, between East and West, by continued bringing together far beyond 1,000 top We are also proud of our efforts to improve the participants. Our close and long-term relationship representation of women leaders both at our with the Chinese Government, particularly meetings and in the wider business community. represented by the NDRC, the National I’m particularly happy that we have doubled Development and Reform Commission, was key the representation of women leaders at the to the establishment of the Dalian meeting and Annual Meeting in the last five years. future meetings of the New Champions, as well Providing a platform for dialogue as the operational success of our office in Beijing. and action Online communities and the Once again our Annual Meeting in Davos, our WELCOM project regional events, and our year-round activities As part of this emerging new world, the virtual and programmes supported and complemented communities that the Web has enabled are each other. The Annual Meeting, held under becoming an increasingly important global the apposite theme ‘Shaping the Global resource – and a vital complement to the Agenda: The Shifting Power Equation’, brought understanding and relationships forged by face- together 2,400 global decision-makers to to-face interaction. They are changing the way examine the implications of moves in economic we do business and the way we interact as and political power, climate change and individuals. They have also changed the way changing community models, particularly virtual we at the Forum work. ones. And our regional meetings were also a key driver of regional integrations. In the In partnership with a number of major global Middle East, despite all the setbacks and companies, we made great progress in developing negative developments, the Forum endeavours WELCOM – the World Electronic Community of to maintain a spirit of hope and reconciliation. the World Economic Forum. Developed on a Web 2.0 basis and incorporating videoconferencing We’ve also introduced in the past year a new capability, WELCOM aims to become the world’s feature which has been welcomed by all those most comprehensive platform and online tool for who took part: exclusive in-depth dialogue with global CEOs and political leaders. It will enable top leaders – such as the recent roundtable we business leaders, both from established and organized with Chancellor Merkel and her developing economies, to build their knowledge, cabinet and in Russia in June with President understanding and relationships and allow Putin and his two first deputy prime ministers. them to stay abreast of the rapidly changing Annual and Regional Meetings commercial environment. The significant outcomes of the Annual Perhaps more importantly, WELCOM will allow Meeting included: a completely new approach to tackling global The announcement of a new international challenges by providing an integrated platform. partnership to establish an accepted framework And we have already decided that the first big for climate risk-related corporate reporting global issue we will address will be water The establishment of an alliance of leading shortage and water management. companies to bring power to villages in sub- Saharan Africa The Forum has always led the field in utilizing An agreement by several global development new technology. WELCOM continues this trend banks to support our Partnering Against and, after it is rolled out at the Annual Meeting Corruption Initiative. in 2008, we are confident that this exciting tool will prove invaluable to members. Our regional events, which attracted increasing numbers of members from all stakeholder groups, Working with tomorrow’s leaders also delivered tangible results. These included: The baby boom generation that shaped the The announcement, at the World Economic second half of the twentieth century is retiring. Forum on the Middle East, in Jordan, of a The future belongs to a new generation, inspired US$ 10 billion initiative to promote youth by different influences, values and goals. education and a knowledge-based society in the region The Forum is intent on understanding and An insightful meeting between 80 international harnessing the strengths, talent and vision of this business leader members and German generation. Our sister organization, the Forum of Chancellor Angela Merkel, as part of a series Young Global Leaders, is a key avenue to this of informal meetings in Europe, to complement group. The group now includes over 660 of the our regional meeting in Turkey world’s most dynamic and capable under-40 year The launch of the Alliance for a Green olds, drawn from 90 countries and representing Revolution in Africa, to tackle the challenges business, government, civil society, academia faced by millions of farmers in the region, at the and the arts. World Economic Forum on Africa in Cape Town.
  7. 7. 5 World Economic Forum Annual Report 2006/2007 Public–Private Partnerships Here are the regional meetings organized by the Our members, meanwhile, continued to show the World Economic Forum this year: benefits of public–private partnerships in numerous Forum-backed programmes around the world. 10 –11 September 2006 China Business Summit, Beijing, China Our Global Health Initiative, for example, 15 –16 November 2006 Germany Meeting, harnessed the influence and expertise of major Berlin, Germany companies in the fight against AIDS, TB and 23 –24 November 2006 World Economic malaria. In one initiative, the Beyond Big Business Forum in Turkey, Partnership, firms such as Eskom, Heineken, Istanbul Standard Chartered Bank, Unilever and 26–28 November 2006 India Economic Volkswagen joined forces with their suppliers to Summit, New Delhi provide HIV/AIDS awareness, prevention and 9 –10 April 2007 Arab World treatment programmes. Our Global Education Competitiveness Initiative, meanwhile, built on its 2006 launch of Roundtable, Doha, Partnerships for Education (PfE), which engages Qatar leading educationalists in promoting the role of 25 –26 April 2007 World Economic Forum public–private partnerships, by signing a formal on Latin America, partnership with UNESCO to implement PfE. Santiago de Chile 18 –20 May 2007 World Economic Forum We strongly believe that businesses must be good on the Middle East, global corporate citizens and make a positive Dead Sea, Jordan contribution to society. As well as encouraging 9 –10 June 2007 World Economic Forum multinational companies to act this way, via our Russia CEO partnership with the Schwab Foundation for Social Roundtable, Entrepreneurship we also back enterprises that St Petersburg have a more overt social focus. This year, the 13 –15 June 2007 World Economic Forum foundation ran 30 national competitions for the on Africa, Cape Town, ‘Social Entrepreneur of the Year’ award, screening South Africa 2,500 candidates and conducting 150 site visits. 24 –25 June 2007 World Economic Forum The winners joined the growing community of on East Asia, Singapore Schwab Foundation entrepreneurs. Risks, Competitiveness and Scenarios I am pleased to report that our members’ All through the year, our activities give business continued commitment and ever closer leaders the tools to do a better job. For example, engagement with the Forum contributed to a good our ability to act as a ‘hub’ for the best minds – financial year while still allowing for significant from academia to business and from government investment in the strategic priorities of the new to media – enables us to provide invaluable WELCOM platform and the inaugural meeting of strategic insights. the New Champions. We also now have plans in hand for the extension of our headquarters to bring Our Global Risk Network continued to lead the all our staff in Geneva back under one roof. The agenda in risk identification and analysis, amid construction should begin early 2009. rising concern over such international issues as climate change and the security of energy supply. Looking ahead, the future will be characterized In 2007, following a series of workshops, the both by great business opportunities and by Network identified 23 core global risks, outlining significant political and economic risks. The their conclusions in the Global Risks 2007 report. Forum will continue to bring strategic insights of both the ‘good’ and the ‘bad’ to members’ The Forum’s Global Competitiveness Network attention: wise, effective leadership requires a continued to assist policy-makers in creating true understanding of the bigger picture. And in drivers for growth by examining how nations and this respect I am pleased that we have added to regions as well as industries can achieve sustained the range of talents and capabilities of our staff prosperity. In September 2006, we launched the with our Global Leadership Fellows programme, 27th Global Competitiveness Report, covering a which allows us to do so many complex things record 125 economies providing critical insights to the satisfaction of the most demanding on over 100 competitiveness variables. We also international public. launched our first ever Travel Tourism Competitiveness Report. The dedication and engagement of our members and of our staff were what made 2006/07 another Our highly respected Scenario Planning team successful year for the Forum. I would like to thank presented three major scenarios at the Annual you very much for your continued commitment. Meeting 2007, examining: how the Gulf Cooperation Council countries could develop; the potential impact of the convergence of IT, telecoms, media and entertainment; and how technology, innovation and regulation could transform access to, and delivery of, financial services. Professor Klaus Schwab Founder and Executive Chairman
  8. 8. 6 World Economic Forum Annual Report 2006/2007 Our major successes and achievements 3 companies representing more than US$ 500 billion in annual turnover have signed up to Partnering Against Corruption – Principles for Countering Bribery, from the World Economic Forum Partnering Against Corruption Initiative (PACI).
  9. 9. World Economic Forum Annual Report 2006/2007 Global Agenda The World Economic Forum is committed The World Economic Forum launched the to improving the state of the world by Israeli-Palestinian Business Council, a key The World Economic Forum’s Global Education engaging leaders from the public and private group of Palestinian and Israeli CEOs who are Initiative has expanded from country initiatives in sectors and from wider civil society in committed to advancing the relationship between Jordan, India and Egypt – which are reaching over partnerships to shape the global, regional the two business communities and, ultimately, 2,550,000 students – to the global scale. Along and industry agendas. Here are some of assist the region to move towards durable peace with UNESCO, the Global Education Initiative the year’s highlights. and coexistence. launched the ‘Partnerships for Education’ with the purpose of helping developing countries find An initial 70,000 people in Lesotho and the multinational and local corporate partners with Democratic Republic of Congo are due to receive capabilities relevant to their efforts to provide all electricity as part of the World Economic Forum’s children with a basic education. Energy Poverty Alliance. This is a private sector initiative of Forum member companies that The Forum’s Global Health Initiative is the delivers business expertise and best practices largest public–private sector network in health. to reduce energy poverty. The three initiating Results from 2006/2007 include: partners are British Columbia Hydro and Power – India Business Alliance to Stop TB – 4,000,000 Authority (Canada), Eskom (South Africa) and people were reached through workplace and Vattenfall (Sweden). community programmes delivered by Reliance, Aditya Birla, Jubilant Organosys, Eli Lilly, the World The World Economic Forum launched the Health Organization, the Global Partnership to first index specifically analysing the investment Stop TB and the Ministry of Health of India. environment for infrastructure. Covering 12 – China Health Alliance – 5,000,000 people, economies in Latin America and the Caribbean, who are employees of partner companies, are the study, Benchmarking National expected to receive education, testing and Attractiveness for Private Investment in Latin treatment. Partner firms are Adidas, Standard American Infrastructure, assesses the main Chartered Bank, Swire Beverages, Pfizer, drivers of private investment in infrastructure the UN and the Chinese Government. projects for ports, airports, roads and electricity. – Beyond Big Business Partnership – Around 50,000 people received lifesaving HIV/AIDS Industry Agenda awareness, prevention and treatment-intervention programmes delivered by Eskom, Heineken, Standard Chartered Bank, Unilever and 123 companies representing more than Volkswagen who worked with a selection of US$ 500 billion in annual turnover have signed their suppliers and the GHI. up to Partnering Against Corruption – Principles for Countering Bribery (PACI Over 30 companies and other partners including Principles). Over the past year, PACI significantly NGOs and the Government of Kenya have joined deepened its credibility: the heads of the together to fight hunger in Siaya, the poorest district multilateral development banks, the International in Kenya. It is the first project of the World Finance Corporation and the Inter-American Economic Forum’s Business Alliance Against Investment Corporation agreed to work with Chronic Hunger to develop a model for business PACI on individual pilot programmes to advance partnership to reduce hunger which can be scaled anti-corruption efforts. The heads of the Big up and adapted to other regions. Four Accounting firms (Deloitte, Ernst Young, KPMG and PricewaterhouseCoopers) agreed World Economic Forum Industry Partners from to work with the PACI and together will explore many sectors began a collaboration with the G8 the development of a framework for companies Gleneagles Dialogue on Climate Change, Clean to benefit from independent reviews of their Energy and Sustainable Development to develop anti-bribery programmes. recommendations for governments regarding ways to construct a long-term climate policy The World Economic Forum launched the framework to transform energy systems as well as first-ever Travel Tourism Competitiveness opportunities in the near term to increase market Report, measuring the factors that make financing and consumer demand for low carbon it attractive to develop the industry for 124 products through better public–private cooperation. countries. The report is a joint effort led by the Industry Partners of the Aviation, Travel and Tourism Industry Partnership Programme Regional Agenda and the Global Competitiveness Network. His Highness Sheikh Mohammed Bin Rashid The World Economic Forum’s Working Towards Al Maktoum, Vice-President and Prime Minister Wellness Initiative aims to stimulate greater of the United Arab Emirates and Ruler of Dubai, business engagement in the global fight against launched the Mohammed Bin Rashid Al chronic disease through employee wellness. Maktoum Foundation to promote human development with a US$ 10 billion endowment at The Women Leaders Programme increased the World Economic Forum on the Middle East. the participation of women in the Annual Meeting from 8% in 2002 to 17% in 2007.
  10. 10. 8 World Economic Forum Annual Report 2006/2007 New strategic endeavours Our inspiration to be a member of the Community of Global Growth Companies is to mesh with like-minded companies such as ours – companies that firmly believe in providing innovative business models and operating model discontinuity to change the world and to create competitive advantage for themselves and for their clients. Participating in the Inaugural Annual Meeting of the New Champions gives us the opportunity to be among a network of such companies that can work in closer consonance and partnership. Phaneesh Murthy CEO and MD, igate Global Solutions, India
  11. 11. World Economic Forum Annual Report 2006/2007 The New Champions WELCOM The Forum remains an effective catalyst for global change. To support our mission ‘The Shifting Power Equation’ was the framework The World Economic Forum firmly believes in we have launched a number of significant for discussions in Davos, but it is also the the power of collaborative wisdom and action projects that support our strategic vision, strategic imperative behind the creation of generated by combining face-to-face and virtual and ensure that we continue to engage the Community of Global Growth Companies. interaction. WELCOM – the World Electronic our members and partners. In the past year Power shifts occur only when ‘New Champions’ Community of the World Economic Forum – the Forum has focused on two primary succeed in both challenging the status quo and creates a unique online community which strategic endeavours: the identification forcing change. Therefore early engagement of functions as an advanced collaborative platform and development of a new generation such leaders and innovators is critical if the World for 10,000 of the world’s top leaders. It is based of global leaders, the ‘New Champions’, Economic Forum is to retain its leadership in on the latest videoconferencing capabilities and the launch of WELCOM, an advanced shaping global, regional and industry agendas. and will provide a unique global governance electronic communication system, which tool to address the challenges of our globally will serve as an invaluable tool for members The new Community of Global Growth interconnected, fast-paced world. and partners to help shape agendas. Companies comprises the ‘New Champions’ from industry that will in fact be shaping the It offers business, government and intellectual future. Its members will interact with current leaders a powerful resource to shape global, foundation members to understand, and to regional and industrial agendas through a state- leverage, the forces transforming the business of-the-art technology platform. Developed on world, reordering societies worldwide and a Web 2.0 basis, in partnership with the world’s creating fast-growth economies. leading technology companies, the platform will provide an unprecedented opportunity The designation of the city of Dalian, China, for both established companies and the New as the host of the Inaugural Annual Meeting of Champions to learn from each other and the New Champions symbolizes the growing establish ties of cooperation and partnership. economic influence of Asia globally. In addition to the top 500 emerging companies, the The initiative is the latest milestone in the meeting in Dalian includes leaders from the Forum’s history of embracing technological world’s most competitive cities and fastest innovation to improve its offering to members. growing regions. The future will also be represented as the Community of Young Global Leaders will gather for their annual meeting. With a strong international media presence, coupled with innovators from the Web 2.0 world, the rise of these New Champions will be explored across all its dimensions.
  12. 12. 0 World Economic Forum Annual Report 2006/2007 Annual Meeting The World Economic Forum operates on Shaping The World Economic Forum Annual Meeting many levels, addressing global, regional the global 2007 again demonstrated the Forum’s vital and industry agendas, although much of role in bringing together global leaders from our activity is on a worldwide scale. Working agenda different regions and sectors to address key in concert with our members and partners international issues. and other key stakeholders, our initiatives have a positive impact on the global Change was a dominant theme of this year’s community. At the World Economic Forum’s Meeting, which was held under the banner: Annual Meeting in Davos each year, we sit ‘Shaping the Global Agenda: The Shifting Power down with our partners to frame the global Equation’. It proved a powerful theme, striking agenda, highlight the challenges of the a chord with the 2,400 participants, and coming year and work on solutions to some reflecting a potent mix of concern and optimism. of the world’s complex problems. In this sense, the Annual Meeting is the focus of The continued moves in economic and the work that the Forum does throughout geopolitical power to emerging economies the year. and resource-rich nations; the recognition of the pressing need to address climate change; and the implications of new community models, often virtual in nature, gave leaders much to discuss and digest. Optimism over the state of the global economy and the growth opportunities ahead was matched by concern over the need to adjust to a new, as-yet undefined, geopolitical landscape. Whether on the G8 agenda, or that of the global business community, there was general agreement on both priorities and the shape that responses will need to take. Tzipi Livni, Vice-Prime Minister and Minister of Foreign Affairs of Israel and Mahmoud Abbas, President of the Palestinian National Authority, at the 2007 Annual Meeting in Davos
  13. 13. World Economic Forum Annual Report 2006/2007 The Forum has always believed that global the International Emissions Trading Association, issues can only be resolved if diverse groups the World Economic Forum Global Greenhouse work together. It was encouraging to hear from Gas Register and the World Resources Institute. participant after participant that this idea, once CDSB member organizations have agreed to considered novel, is now seen as the logical align their core requests for information from route to deliver effective and lasting solutions. companies to ensure that they report climate change-related information in a standardized It was climate change, though, that dominated way. It is expected that this will make for easier the Annual Meeting 2007. Through a series of comparative analysis by investors, managers 17 sessions related to global warming, the and the public. world’s top academics, business leaders, NGO representatives, UN agency chiefs, politicians A number of other significant projects emerged and many others joined together in advancing from the meeting, including the establishment of the discussion and exploring practical an alliance of leading companies to bring power opportunities to make progress through to villages in sub-Saharan Africa. The first partnership. project will focus on Lesotho. To underscore the deepening commitment of In the ongoing fight against global corruption, the business sector to engage other groups in the presidents of the World Bank, the African addressing this issue, a new international Development Bank, the Asian Development Bank, partnership was announced. Called the Climate the European Bank for Reconstruction and Disclosure Standards Board (CDSB), it is made Development and the executive director of the up of seven organizations which will work International Finance Corporation agreed to lend together to establish a generally accepted their support for the Partnering Against Corruption framework for climate risk-related reporting by Initiative (PACI). Acting on their recognition of the corporations. Founding members include the role the private sector can play in guiding policy California Climate Action Registry, Carbon and assisting governments, they agreed to pilot a Disclosure Project, Ceres, the Climate Group, country-specific anti-corruption implementation The Forum offers a unique opportunity for global leaders to listen, learn and lead. It provides insights into shared challenges through constructive dialogue, as well as the tools and networks needed to act on those learnings. It helped us to act more quickly on micro-insurance and deepened our understanding of our role in the climate change debate. The Forum’s engaged collaborative spirit is what allows it to have such an impact, and makes it a vital development tool for global leaders. I know I have benefited from the opportunity to participate in Forum activities. James J. Schiro Group CEO, Zurich Financial Services, Switzerland
  14. 14. World Economic Forum Annual Report 2006/2007 Shaping the global agenda continued We recognize the responsibilities we share with governments, community groups and NGOs for the provision of the basic building blocks of community development: clean water, jobs, nutrition and a healthy environment. Because there are no simple, unilateral solutions for these issues, the World Economic Forum’s power to convene those of us who can ensure the sustainability of all our communities is critical for building understanding, respect, trust and partnership. E. Neville Isdell Chairman and CEO, The Coca-Cola Company, USA
  15. 15. 3 World Economic Forum Annual Report 2006/2007 programme, and a sector-specific structural of future Annual Meetings. With this in mind, reform initiative that will promote fair competition the Forum is currently researching how the and transparency. Additionally, the world’s four latest communications technologies can largest accounting firms agreed to lend their be utilized for the benefit of its participants support through the development of a framework and the wider global audience. for companies to benefit from independent Open Forum Davos 00 reviews of their anti-bribery programmes. For the fifth consecutive year, we opened There was a notable consensus that the Forum our doors to the general public, via the Open and its partners in both business and civil Forum. Co-organized with the Federation of society have a responsibility to promote open Swiss Protestant Churches, the Open Forum discussion on globalization. Greater is a series of sessions held in conjunction with understanding is needed of its advantages the Annual Meeting. and how its negative effects can be reduced. As President and Chief Executive Officer of More than 2,400 people took part in seven Renault, France, and President and Chief sessions. Participants came from all walks of Executive Officer of Nissan, Japan, Carlos life, including business, civil society and the local Ghosn, said: “Most people who are hurt or who Davos population. This year they included a think they are hurt by globalization know it. Most group of students from Geneva’s international who benefit do not know it”. This is something school, one of whom served as a panellist in we are keen to pursue in the coming year. an Open Forum session. The activity at this year’s Annual Meeting The debates and discussions provided reached a far wider audience thanks to the participants with insights on globalization latest technological innovations. These included and the impact of some of its consequences. real-time webcasts of our key sessions, regular Individual sessions addressed issues such as podcasts, commentaries written and sent out CEO salaries, development aid and its results, by bloggers and even discussions among sustainable energy consumption, managing participants on SecondLife, the popular Web- access to oil, multiculturalism, the role of based virtual community. This was particularly religions in society and the impact of brands. appropriate to this year’s Meeting, given that Discussions between the public and panellists social networking and the implications of the allowed for in-depth conversations. rise of the virtual world were at the forefront of many of the discussions. The Forum is keen Panellists of this year’s Open Forum included to continue developing its knowledge of the Prime Minister of Pakistan, Shaukat Aziz; community building and recognizes that new Group Chief Executive of global advertising trends in technology will influence the style giant WPP, Sir Martin Sorrell; and the Archbishop of Dublin, Diarmuid Martin. ,400 participants, from 0 countries, including 5 heads of state were at the Annual Meeting 00.
  16. 16. 4 World Economic Forum Annual Report 2006/2007 Shaping Over the past 12 months, the World In some cases we introduced smaller and less Economic Forum initiated a succession formal gatherings, to facilitate dialogue between the of high-level regional gatherings aimed key leaders. In others, we organized larger regional at mobilizing key business, government, roundtable meetings to achieve broader academic and social groups. Major events discussions between greater representations of agenda in China, India, Singapore, Jordan, Turkey, regional groups. Overall, the aim was to achieve South Africa and Chile focused on putting greater knowledge, understanding and action programmes into action that would deliver plans for the key challenges affecting the regions. tangible results at the regional level. Asia Asia continues to reorder economic, political and social relationships, underscoring its emergence as one of the key areas of ‘The Shifting Power Equation’, which was reflected in the strong presence of top Asian leaders at the Annual Meeting in Davos. The World Economic Forum recognized the 40th anniversary of ASEAN (Association of South-East Asian Nations) in welcoming three heads of state from ASEAN nations to the Annual Meeting in Davos. Gloria Macapagal- Arroyo, President of the Philippines, and the Chair of ASEAN at that time, spoke of the bold steps forward made by ASEAN at its recent annual meeting. HM King Abdullah Il Ibn Hussein of the Hashemite Kingdom of Jordan, gave the opening address at the World Economic Forum on the Middle East in Jordan
  17. 17. 5 World Economic Forum Annual Report 2006/2007 For the first time in the Forum’s history, the authorities. Three possible scenarios were Prime Minister of Vietnam, Nguyen Tan Dung, projected for China for the next 20 years, varying participated in the Annual Meeting, following his from sluggish development to robust economic country’s entry as the newest member of the growth. The aim of the report was to provide an World Trade Organization. He spoke about the analysis of how China’s future development may factors which have driven Vietnam to become the affect global growth, geopolitics, resources second fastest growing economy in the world. allocation and trade and investment. The Prime Minister of Malaysia, Abdullah Ahmad Badawi, made a special address on establishing The 22nd India Economic Summit took place in greater understanding in a multicultural world. November 2006 in Delhi. Taking as its theme ‘Meeting New Expectations’, the meeting in Delhi In September 2006, the 26th China Business was an effective platform in shaping India’s growth Summit in Beijing was held. The theme of the agenda on various topics across vertical and meeting, ‘Sustainable Growth through Innovation: horizontal axes of the economy. Discussions were China’s Creative Imperative’ clearly spelled out the organized under four key pillars: Infrastructure, top priority for China, as it aims to achieve a Managing Growth, Risk Management, and State new level of economic development. The Summit and National Competitiveness. attracted over 600 participants, representing business executives, senior government officials For the first time, Sonia Gandhi, Chairperson as well as top experts and media leaders from of the United Progressive Alliance and President China and around the world. of the Indian National Congress, attended the meeting. She presented the 2006 India Social During the meeting, the full report on ‘China Entrepreneur of the Year Award to Vikram Akula and the World: Scenarios to 2025’ was released, of SKS Microfinance, who improved the lives of with contributions from more than 100 leading millions in rural India, through the use of microcredit. 0,000 people have been provided with electricity in Africa through the Forum’s Energy Poverty Alliance.
  18. 18. 6 World Economic Forum Annual Report 2006/2007 Shaping the regional agenda continued The World Economic Forum is a crucial platform that allows people like me to meet with other business leaders to share knowledge and understanding. The Forum’s meetings address the right issues in an extremely comprehensive manner. Moreover the Forum provides the opportunity to meet the public and private sectors simultaneously. Public-private partnerships are essential and both sectors understand that we cannot move forward unless we unite in addressing the issues that affect us all. Putting our minds and hands together to find common solutions is the only way forward. Fadi Ghandour Founder and CEO, Aramex International, Jordan
  19. 19. World Economic Forum Annual Report 2006/2007 Linking the leadership imperatives to Asia’s The Forum launched the third Arab World spectacular growth was the main focus of this Competitiveness Report during the Arab World year’s World Economic Forum on East Asia in Competitiveness Roundtable held in Doha, Qatar Singapore. Under the banner ‘The Leadership in April. The meeting provided a platform for Imperative for an Asian Century’, the meeting advancing the reform agenda across the Arab brought together 300 top decision-makers from world and analysed three emerging sectors of 26 countries to examine how the region views Arab economies: travel and tourism, healthcare its leadership roles and to analyse the priorities and insurance services. for its industry and regional agendas. On the eve of the Philippines’ handover of the ASEAN The Arab Business Council (ABC), recognized Chair to Singapore, the meeting’s participants as the voice of the Arab business community included Gloria Macapagal-Arroyo, President and an initiative of the Forum, continued to build of the Philippines; Lee Hsien-Loong, Prime the capacity of National Competitiveness Minister of Singapore; Yi Gang, Assistant Councils throughout the Arab world. The ABC Governor of the Bank of China; and Masatoshi supported the Egypt Education Initiative, which Wakabayashi, Minister of Environment of Japan. aims to improve the delivery of education through public–private partnerships, and The Arab World During the year, the opposition Democratic Competitiveness Report. It also initiated and Party of Japan established a Davos Caucus financed a trade study looking at US–Middle East with 34 Diet members, which follows the Davos trade agreements and how they can be Caucus established last year in the ruling Liberal optimized for the region as a whole. Democratic Party. Additionally, in light of Japan’s 2008 G8 Presidency, Klaus Schwab met with The May 2007 World Economic Forum on Prime Minister Shinzo Abe and five senior cabinet the Middle East was held in Jordan under the ministers during an official visit to Tokyo. patronage of His Majesty King Abdullah II. Under the banner ‘Putting Diversity to Work’, the The World Economic Forum’s recognition of Asia’s programme for the Jordan meeting was structured dynamic impact in shaping the global, regional around three sub-themes: Industries of the Future; and industry agendas is further reflected by the Peace, Stability and International Relations; and fact that the Forum chose Dalian, China, as the Society and Change. Participants explored how location for its Inaugural Annual Meeting of the to leverage the region’s diversity in pursuit of New Champions, in September 2007. development and how to manage the tensions arising from difference in order to promote peace. Middle East 2007 was another troubled year for much of The Israeli-Palestinian Business Council (IPBC) was the Middle East but despite the precarious established by a key group of Palestinian and Israeli geopolitical environment many economies have chief executives, to advance the relationship grown faster than in the previous three decades. between the two business communities and assist The Forum strove to maintain an adequate the region in moving towards lasting peace and balance that addresses an extremely sensitive coexistence. We also saw significant engagement political environment and places the appropriate of senior Iranian leaders, which created further emphasis also on sustaining the growth opportunities to address tensions in the region. momentum in the Arab world. The meeting was a successful platform for dialogue between key participants from Iraq, Iran and the The World Economic Forum Annual Meeting in United States. Davos provided further opportunities to restart negotiations to end the Israeli-Palestinian conflict At the meeting Sheikh Mohammed Bin Rashid by bringing together some of the region’s leading Al Maktoum, Vice-President and Prime Minister policy-makers, including Israeli Foreign Minister, of the United Arab Emirates, and Ruler of Dubai, Tzipi Livni, Palestinian President Mahmoud Abbas, established the ‘Mohammed Bin Rashid Al former Israeli Prime Minister and new President, Maktoum Foundation’ for human development Shimon Peres, and King Abdullah of Jordan. with an endowment of US$ 10 billion. The goal of this institution is to contribute to a brighter future An important focus of the Annual Meeting was in the Middle East by promoting youth education the launch of the ‘Gulf Cooperation Council and a knowledge-based society. It goes to the Scenarios to 2025’. This exercise explored three heart of what the World Economic Forum aims to possible evolutions of the GCC in terms of its promote in the region, and we expect to work geopolitical stability and leadership capacity to closely with the Foundation in the coming years. implement effective governance and reforms. Europe Together with key regional partners, the Forum developed in-depth scenarios for Bahrain, Saudi More than 400 participants from 45 nations Arabia and the United Arab Emirates. In several gathered in Istanbul for the World Economic high-profile sessions on the future of the region, Forum in Turkey. participants explored how to bridge the road- block for Arab Israeli peace, the emergence of Under the banner ‘Connecting Regions – Creating a financial hub in the Gulf and the development New Opportunities’, discussions included Turkey’s of new urban models. current EU negotiation process, and an assessment
  20. 20. 8 World Economic Forum Annual Report 2006/2007 Shaping the regional agenda continued More than any individual project alone, we feel that working with the Forum matters because it enables collaboration and dialogue among a variety of different actors. No one entity has the answers to the dilemmas of our world, but multiple organizations working together from multiple angles have a much better chance at addressing them. Tarek Sultan Al-Essa Chairman and Managing Director, Agility, Kuwait