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Annual Report 2003/2004

Partnering for security and prosperity

Dialogue at the January 2004 World Economic Forum Annual Meeting: participants Heba R. Ezzat, left, a Cairo University academic, and Bernard Guetta, a French editor.

Foundation Board members
Klaus Schwab Executive Chairman of the Foundation Board William I. M. Turner Chairman and Chief Executive Officer, Exsultate Inc, Canada; Vice-Chairman of the Foundation Board Josef Ackermann Spokesman of the Board and Chairman of the Group Executive Committee, Deutsche Bank AG, Germany; Vice-Chairman of the Foundation Board Kurt Alig Chairman, Arcadia Treuhand AG, Switzerland; Secretary of the Foundation Board Peter Brabeck-Letmathe Chief Executive Officer, Nestlé SA, Switzerland Lord Carey of Clifton Former Archbishop of Canterbury, United Kingdom Victor L. L. Chu Chairman and Chief Executive Officer, First Eastern Investment Group, Hong Kong SAR Flavio Cotti Former President of Switzerland Michael S. Dell Chairman and Chief Executive Officer, Dell Computer Corporation, USA Carly Fiorina Chairman and Chief Executive Officer, HP, USA Niall FitzGerald Chairman, Unilever Plc, United Kingdom Orit Gadiesh Chairman, Bain & Company, USA Rajat Gupta Senior Director, McKinsey & Company Inc, USA Nobuyuki Idei Chairman and Chief Executive Officer, Sony Corporation, Japan Caio Koch-Weser Secretary of State of Finance, Germany Henry A. McKinnell Chairman and Chief Executive Officer, Pfizer Inc, USA Heinrich von Pierer President and Chief Executive Officer, Siemens AG, Germany H.M. Queen Rania of the Hashemite Kingdom of Jordan Peter Sutherland Chairman of Goldman Sachs International; Chairman of British Petroleum Company Plc, UK Ernesto Zedillo Ponce de Leon Director, Yale Center for the Study of Globalization; former President of Mexico

The World Economic Forum is the foremost global community of business, political, intellectual and other leaders of society committed to improving the state of the world

The Executive Chairman’s statement Annual Meeting The regional agenda Global Institute for Partnership and Governance Centre for Strategic Insight Our members and partners Our communities and constituencies Our people Our organization The Forum leadership The Forum community Sharing knowledge Our financial results Our mission and values
Pictured on the cover, clockwise from top left, are: Dick Cheney, Vice-President of the United States of America; Vladimir Putin, President of the Russian Federation; Pervez Musharraf, President of Pakistan, and Aleksander Kwasniewski, President of Poland

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The Executive Chairman’s statement

Partnering for security and prosperity

The year 2003/2004 provided a welcome breathing space for the global community. After two years overshadowed by September 11, war in Iraq and financial volatility, it was a period of relative calm, marked by no all-consuming crisis and with signs of economic recovery. This respite generated a more optimistic mood among global leaders. Ironically, it also provided the space to reflect on the many complex risks that threaten us: from terrorism and uncertainty in the Middle East to corporate fraud and emerging pandemics. Such global challenges can never be met alone, however strong a nation, industry or company. Their complexity and interdependence must be met by integrated and interdisciplinary action – from business, government, religion and the wider community. To succeed, such cooperation requires a robust international framework: one that transcends barriers of politics, religion and industry; that brings different organizations and individuals together in partnership, and has the organizational capability to pursue pragmatic solutions. Alone among international organizations, the World Economic Forum provides this collaborative global framework. Our Annual Meeting 2004, which brought together 2,280 leaders from 94 countries, demonstrated the value we provide. The theme Partnering for Security and Prosperity was aptly chosen as participants emphasized the need for interdisciplinary cooperation. The benefits of such partnerships were immediately apparent. The raft of practical initiatives announced ranged from programmes to provide IT centres for poor communities to pledges to economic

reform in the Arab world. As important were the relationships made and bridges built that will engender future action. Our regional activity again showed the Forum as relevant, timely and proactive as we met influential leaders, in key places, at the right time. The European Economic Summit was held in Warsaw on the eve of European Union enlargement. The World Economic Forum in Jordan positioned us in the Middle East as the international community focused on the reconstruction of Iraq and the stability of the wider region. We held our Asia Strategic Insight Roundtable in Seoul one month after South Korean President Roh Moo-Hyun was reinstated following his earlier impeachment, and we convened our Russia Meeting 2003 in Moscow shortly before Duma and Presidential elections. Throughout the year, the Forum provides the tools and resources our members need to pursue activities to improve the state of the world. To deepen our value to members during the year we continued to develop our organization. Our new structure reflects and underlines the Forum’s unique dual offerings: providing value to both business and wider society. This is particularly reflected in the twin pillars of the new organization: the Centre for Strategic Insight and the Global Institute for Partnership and Governance. The Centre devises dynamic, incisive and relevant content for our summits, including scenario building, based on an expert understanding of global business and emerging risks. The Global Institute promotes public-private partnerships to help address major international challenges, from greenhouse gas emissions to IT


Lee Kuan-Yew, then Senior Minister of Singapore, with Klaus Schwab, at October’s East Asia Economic Summit in Singapore

literacy. In doing so the Institute puts the non-business community at the very heart of the Forum. Thus, it could be said that the Centre provides the environment for members to acquire and share knowledge and make the decisions and contacts to take action, while the Global Institute provides the vehicles and initiatives to help them succeed. We have recruited one of the foremost authorities in scenario development, Ged Davis, to lead the Centre for Strategic Insight. Ged held senior positions with the Royal Dutch/Shell Group, latterly as head of its scenarios team. Outside the corporate world, he has undertaken scenario work for the World Business Council for Sustainable Development, the Intergovernmental Panel on Climate Change Emissions and UNAIDS. The Global Institute for Partnership and Governance is headed by Rick Samans, who joined the Forum as a director in 2001. Rick, a former special assistant on international economic policy to the US President, is well qualified for this public-private role. To make sure the new organization achieves optimum performance, we introduced a change programme called Waves. This far-reaching initiative involves three stages or ‘waves’, focusing sequentially on the individual, teams and the overall organization. The HR team also laid the groundwork for a development and coaching programme for the Forum’s senior managers. I would like to thank all our people for their contribution; they do an extraordinary job. Thanks must also go to the Foundation Board and our constituencies who, during the course of 2003/2004, showed true ownership of, and commitment to, the Forum by taking on far more strategic responsibility.

Rigorous management, and the more positive economic climate, helped us to achieve a strong financial performance. Despite a first half clouded by the continuing repercussions of the SARS outbreak and the tail end of the economic downturn, our income rose to Sfr.74,058,911. This will enable us to add Sfr.1,751,121 to our reserves, allowing us to continue to invest in the Forum’s future. Youth has always been a key part of our identity, both in the age balance of our staff and in the constituencies of young leaders that we support. In May, we announced the creation of a dynamic new young leaders community. This Forum of Young Global Leaders will bring together 1,111 men and women from all walks of life who have shown commitment to improving the state of the world. I am convinced they will go on to provide a true competitive advantage to the Forum, making it more forward-looking, innovative and provocative, qualities essential if we are to help achieve a more prosperous and peaceful future. In terms of membership development, financial results, institution building, as well as human resources development, last year was the most successful in the history of the World Economic Forum. I would like to thank our members, whose engagement made this success possible. 3

Klaus Schwab Founder and Executive Chairman

Annual Meeting

John Ashcroft, US Attorney-General

The World Economic Forum’s 2004 Annual Meeting was held in a spirit of cautious optimism after two years in which it had been dominated by the threat of global terrorism and war in Iraq. It provided a unique platform for leaders from 94 countries and all walks of life to seek ways of driving forward global economic development, for the good of both business and society. Although the world remained a fragile and uncertain place, the Meeting was convened against a background of encouraging signs in the global economy and on the geopolitical scene. To reflect the Forum’s conviction that a multistakeholder approach is needed to reinforce this positive trend, discussions were held under the theme of Partnering for Security and Prosperity. At the Annual Meeting, 2,280 leaders, from the arenas of politics, academia, non-governmental organizations, the media, religion and civil society convened in Davos, Switzerland. In a series of workshops, panel discussions and plenary sessions the participants focused on seven key threads: ensuring global security; promoting global growth; managing new risks; building corporate resilience; spurring innovation; harnessing the diversity of values, and reducing inequality. With no single overwhelming issue heading the international agenda, participants tackled a very broad subject range. As they explored the complexity and interdependence of global challenges three clear themes emerged:

Mohammad Khatami, President of the Islamic Republic of Iran

Ratio of Annual Meeting participants 2004
Religious leaders Technology Pioneers NGOs Global Leaders for Tomorrow Academia

Other constituents Business

Media Fellows/Leaders

Public figures


Recep Tayyip Erdogan, Prime Minister of Turkey

Jack Straw, UK Secretary of State for Foreign and Commonwealth Affairs

• There is a need to address major international issues in an integrated and interdisciplinary way • A comprehensive and structured framework for collaboration is required because global challenges cannot be met by any single government, industry or business • There is a need for a more proactive and pragmatic approach to supranational challenges The Annual Meeting acted to address these issues by providing a springboard for greater business engagement in public-private partnerships. Concrete actions included: a joint initiative between Microsoft and the United Nations that will provide US$1 billion to establish computer centres in poor communities; a collaboration between the US Agency for International Development, VISA and the Foundation for International Community Assistance to benefit microfinance clients in the developing world; and the re-launch of the Trans-Atlantic Business Dialogue, which promotes closer commercial ties between the US and the European Union. The World Economic Forum also launched a range of initiatives designed to promote positive international collaboration. For example: • The Global Greenhouse Gas (GHG) Register was officially launched and 11 companies confirmed their commitment to disclosing the amount of greenhouse gases produced by their worldwide operations. It is the only global initiative

dedicated to providing credible, transparent and standardized corporate GHG emissions data to the general public. The register aims to stimulate the disclosure and management of worldwide climate emissions by major companies

“Our principles will be of no value if they do not translate into action... We are rising to this challenge, realizing that business and community go hand-in-hand.”
Peter Bakker, Chief Executive Officer, TPG, the Netherlands

• In a move to combat global corruption, 19 leading international engineering and construction companies adopted a set of business principles for countering bribery. These businesses represent total annual revenue in excess of US$70 billion. The principles were the product of a year-long effort by the World Economic Forum’s Governors for Engineering and Construction Task Force, working closely with Transparency International and the Basel Institute on Governance. The companies have committed to ‘zero tolerance’ of bribery and to the development of a programme of internal systems and controls for implementing this policy 5 • The CEOs of eight logistics and transportation companies called on their peers to take the lead in placing corporate citizenship at the heart of business strategy. In a joint statement under the Forum’s Logistics and Transportation Corporate Citizenship Initiative, they committed themselves

Annual Meeting

Olusegun Obasanjo, President of Nigeria

Jean-Claude Trichet, President, European Central Bank

to eight corporate citizenship principles. These included a joint programme to reduce the industry’s impact on society and a plan to promote partnership with others to deliver emergency humanitarian assistance, food aid, medicines and computers

“We cannot talk about growth and stability in my region without addressing a core conflict... the long and hateful cycle of violence between Israelis and Palestinians.”
King Abdullah II of Jordan

As well as these explicit outcomes, the Annual Meeting once again proved a useful environment for healing rifts and promoting understanding. It witnessed an easing of tension between the US and Europe, following differences over the war in Iraq, and positive steps towards peace between opposing parties in Israel, Cyprus and Kashmir. The Forum continued to act to promote understanding and tolerance between the Muslim and Western worlds. Pakistani President Pervez Musharraf urged the two cultures to adopt a two-pronged approach to bridging the gap between them. He urged Muslims to reject extremism and focus on socio-economic development and the West to resolve political disputes involving Muslims and provide them with economic aid.

Initiatives launched at the Meeting included: • The ratification of a blueprint for economic reforms across the 22 nations of the Arab world by the Arab Business Council (ABC) of the World Economic Forum. The document focuses on economic liberalization and reforms, governance and human resource development. The ABC was created at the Forum’s Extraordinary Annual Meeting in Jordan in 2003 to take action on key issues in the region. It seeks to enhance regional competitiveness, promote the economic integration of the region into the global economy and to engage the leaders of the private sector to work with governments to carry out reform • The Forum launched its Young Arab Leaders community. The group aims to galvanize a predominantly young population from across the Arab world to work for positive change. The community launched a drive to recruit some 100 potential leaders under 45 who would strive for a brighter future for the Arab world. This group will promote champions and role models to inspire Arab youth, in an effort to build a new heritage for the Arab world that will be in line with its cultural traditions and which could engage seamlessly with the global community • The Forum officially launched the Council of 100 Leaders. This group aims to become the foremost community of senior political, religious, business, media and opinion leaders to promote understanding and dialogue between the


Carol Bellamy, Executive Director, United Nations Children’s Fund (UNICEF), New York

William J. Clinton, Founder, William Jefferson Clinton Foundation; President of the United States (1993-2001)

Western and Islamic worlds. The Council includes 20 leaders from each of these five sectors, representing Western and Islamic thought Alongside optimism about a global economic recovery and a hunger for better dialogue between Islam and the West, there was also concern about the emerging challenges and risks that face the world. These ranged from the potential financial crisis in China and turmoil in Iraq to growing US deficits, corporate scandals and the forthcoming US election. Further evidence of the challenges that lie ahead for the global community came from a series of reports and surveys published both before and during the Annual Meeting, as a framework for discussion. These included: • The Voice of the People survey, carried out exclusively for the World Economic Forum by Gallup International. This revealed that half those questioned felt global security was poor and that the next generation would live in a more dangerous world. It was based on interviews with almost 43,000 people from 51 countries, representing the views of more than 1.1 billion citizens • The report of the World Economic Forum’s Global Governance Initiative concluded that governments, international organizations, business and civil society were not engaged sufficiently in realizing the United Nations

Millennium Declaration goals. The Declaration set targets for peace, security, poverty, hunger, education, health, environment and human rights. The report found that during 2003, the international community rated no more than four out of 10 in any area

“All elements of society need to work much more effectively if we are to meet the [Millennium] goals by 2015. No one group on its own can achieve the goals.”
Sir Mark Moody-Stuart, Chairman, Anglo American Plc, United Kingdom

• A World Economic Forum survey Living Happily Ever After: The Economic Implications of Ageing Societies showed how the combined effects of slower labour force growth and population ageing could undermine the pension systems and broader economic prospects of many developed countries. The report pointed to greater immigration, investment in technology and attracting additional workers into the labour force as possible remedies • A report from UNICEF and the Micronutrient Initiative, Vitamin and Mineral Deficiency, concluded that a lack of basic vitamins and minerals was damaging the health of a third of the world’s population and holding back the economic development of most countries in the southern hemisphere. The report found that this lack impaired intellectual development, compromised 7

Annual Meeting

Mikheil Saakashvili, President of Georgia

Mario Monti, Commissioner for Competition, European Commission, Brussels

immune systems, provoked birth defects and consigned two billion people to lives below their physical and mental potential The Annual Meeting provided a valuable opportunity to identify and address the broad spectrum of challenges to global security, prosperity and peace. For example, United Nations Secretary-General Kofi Annan urged business leaders to swing their support behind the Millennium Goals and warned against a slide back into brute competition and “the laws of the jungle”.

heads of state, 75 cabinet ministers, 52 heads of non-governmental organizations, 250 media and opinion leaders, 164 academics, 28 religious leaders from a variety of faiths and 18 international trade unionists. The non-governmental organizations participating included Amnesty International, Human Rights Watch, Transparency International, WWF, Save the Children, CARE, World Vision International and the International AIDS Vaccine Initiative. The Annual Meeting once again provided a unique barometer of leadership attitudes, with participants returning home with new insights into global and regional issues. They also built strong relationships across communities and regions, helping to break down international and cultural barriers and promote understanding. For more about the Annual Meeting 2004, visit

“The United Nations must also protect millions of our fellow men and women from the more familiar threats of poverty, hunger and disease.”
Kofi Annan, United Nations Secretary-General

Mr Annan could not have chosen a more influential platform to deliver this message. More than half the participants were business leaders drawn from the world’s major companies, including 24 of the Fortune 50 top businesses. There were also 31


Joseph Deiss, President of the Swiss Confederation and Federal Councillor of the Economy, and Paola Ghillani, Chief Executive Officer, Max Havelaar Foundation, Switzerland

Open Forum Davos 2004
The second Open Forum Davos was attended by more than 2,000 local people and was again successful in developing public understanding and support for the global issues that were discussed at the World Economic Forum. The event, organized jointly by the Forum, Bread for All and the Federation of Swiss Protestant Churches, invited the general public to take part in nine debates around the topic of Globalization or Deglobalization for the Benefit of the Poorest? Following the success of the first Open Forum Davos in 2003 the event evolved to engage greater business participation and, consequently, more in-depth, high-quality discussion. Industry participants included such leading figures as Peter Brabeck-Letmathe, Vice-Chairman and CEO of Nestlé, and Travis Engen, President and CEO of Alcan. Many local schoolchildren were also involved in the event.

Among the highlights were the sessions: • Trade Round, Where There Is a Will, There Must Be a Way – which focused on such issues as the implications of the world trade discussions at Cancun, how to get negotiations back on track and the positive role for the private sector • Globalization or Deglobalization for the Benefit of the Poorest? – this debate examined the challenges ahead, drawing on the newly released report of the International Labour Organization’s World Commission on the Social Dimension of Globalization Other sessions covered labour rights partnerships, the biodiversity agenda, financial crisis and globalization, children’s rights, and religion. A small number of anti-globalization demonstrations took place during the programme and some of these dissenting voices were given a platform to share their views. These interactions reflect the Forum’s commitment to engage in dialogue with all parts of society. 9

Participants at June’s Africa Economic Summit, in Maputo, Mozambique, listen to Ndidi Nwuneli, Founder and Managing Partner of LEAP Africa. The session on leadership also included a contribution from South African President Thabo Mbeki, pictured far right.


The regional agenda

Building global and regional partnerships

The World Economic Forum seeks to tackle the critical issues facing every region of the world. In 2003/2004, we again worked closely with regional partners to find solutions to such challenges and to deliver social and economic development.

The NEPAD Business Group (NBG) (formed at the 2002 Africa Economic Summit and now comprising more than 350 African companies, business associations and multinationals active in Africa) highlighted the need for business to act responsibly in support of the NEPAD. Plans to create a NEPAD Business Foundation to mobilize and direct the business contribution to wellmanaged projects were announced at Maputo. NBG working groups in transport, energy, construction, financial services and information and communications technology also reported their progress in developing action plans.

The 14th Africa Economic Summit in Maputo, Mozambique reaffirmed the central role of business in the New Partnership for Africa’s Development (NEPAD) but also highlighted the need to translate words and ambitious ideals into concrete action. Mozambique, with its impressive range of successful investment projects and model crossregional public-private partnerships, demonstrates just what can be achieved through exemplary governance, sound leadership and a strong civil society and acts as a beacon of hope for the rest of Africa. To assess how to spread the best practice found in Mozambique, summit participants visited some of the country’s key development sites and sought to identify the crucial factors that would enable these projects to be replicated elsewhere across the continent. Based on the case studies of recent successful partnerships, such as the roll out of GSM telephony in Nigeria and the SASOL Natural Gas Project linking Mozambique and South Africa, participants discussed how to overcome such barriers as access to finance, regulatory environments and capacity constraints.

“Mr Mugabe is a bad lawyer who has a good cause... Because the cause he upholds – which is African land rights – is fine. But it depends how you do it.”
Abdoulaye Wade, President of Senegal

For more information about the Africa Economic Summit, see 11

The launch of the World Economic Forum Africa Competitiveness Report, which described the continent’s dismal growth performance as “the worst economic tragedy of the 20th century”, generated a great deal of interest and concern at an international level. In 2003/2004, the Forum’s Global Health Initiative and Water Initiative continued to play a valuable part in improving the quality of life for Africans.

The regional agenda
Middle East
The Middle East needs reform, development and growth. These goals require genuine partnerships to energize the region’s potential and address its common challenges. Such were the messages at both the Annual Meeting and the World Economic Forum in Jordan. The World Economic Forum in Jordan in May 2004 brought leaders together for discussions under the theme Facing the Real Challenges: Partnering for Change, Peace and Development. liberalization, governance and human resource development. To spread best practice, they adopted covenants on accounting and audit standards, corporate social responsibility, corporate governance and combating corruption. The ABC also supported the establishment of the Egyptian National Competitiveness Council. Jordan agreed to create a similar body and discussions were begun with Bahrain and Morocco. Another group of particular significance to the Middle East, the Council of 100 Leaders, launched a framework for its activities. Among the projects it announced was the creation of an enhanced news and information service providing a unique source of facts on Western/Islamic issues in multiple languages. The Council, which fosters dialogue between the West and the Arab world, is co-chaired by Lord Carey of Clifton, former Archbishop of Canterbury in the UK, and H.R.H. Prince Turki Al Faisal Al Saud, Chairman of the King Faisal Centre for Research and Islamic Studies in Saudi Arabia. In Jordan, the World Economic Forum’s Young Arab Leaders group proposed an action plan to transform the Arab world and aid its integration into the global economy. The plan is based on a three-pronged approach to enhance Arab competitiveness. First, it aims to re-instil pride in Arab heritage and its ability to achieve goals. Second, it seeks to motivate Arab youth to work towards achievement, and third, it intends to engage Arab youth with specific Young Arab Leaders’ programmes that offer appropriate role models. The Jordan Education Initiative, a public-private partnership designed to deliver effective learning to the kingdom’s citizens, continued its successful development.

King Abdullah II of Jordan, left, in discussion with US Secretary of State Colin Powell in May at the World Economic Forum in Jordan

The meeting was the region’s premier platform for engaging business and governments in a process focused on implementing policy reform. The 650 participants came from both the Middle East and around the world under the patronage of His Majesty King Abdullah II of Jordan. Key issues discussed included the handover of power in Iraq and Arab-Israeli relations, but the meeting also focused on both political and business reform. For details, see During 2003/2004, the newly created Arab Business Council (ABC) of the World Economic Forum sought to enhance competitiveness in the region. It focused on cooperating with the region’s governments and leading organizations to encourage market-oriented economic reforms, reinforcing the voice of Arab business leaders, and serving as the advisory body to the World Economic Forum on its strategy in the Middle East. ABC members ratified a blueprint for reforms across the Arab world that focused on economic

The European Economic Summit in Warsaw was timed to coincide with the enlargement of the European Union from 15 to 25 members on 1 May 2004. It was the first meeting to convene key players of the new Europe at the highest level and broached such important issues as the developing labour market, immigration and the investment climate. More than 20 heads of state were among the 630 leaders from business, academia, the media and civil society who convened at the summit in Poland, the largest of the accession countries. Among them were


heads of state from countries that could form the next wave of enlargement, including Romanian President Ion Iliescu and Georgi Parvanov, President of Bulgaria. The key themes that emerged included the need to step up efforts towards the goal of the Lisbon Agenda, a 10-year strategy to make Europe the most competitive economy in the world by 2010. Discussions followed the World Economic Forum’s second Lisbon Review, which compared the economies of new and old Europe and concluded that the strongest new EU members could outperform the weakest older members. Debate also focused on the need to draw on the spirit of the new EU members to drive entrepreneurship forward and the essential message that enlargement was part of an ongoing process. Beyond the EU’s borders, there are neighbours eager to identify with the emerging European identity, a point highlighted by the presence of Leonid Kuchma, President of the Ukraine, and three heads of state from the Caucasus. A survey of business leaders, launched at the end of the summit, revealed that 89% felt the inclusion of the 10 new countries would make a positive contribution to the debate on European economic reform, with four-fifths believing EU expansion had not yet reached its limit.

Through a hugely successful collaboration with BBC World, the summit also saw the international broadcast of an hour-long debate involving key participants that reached more than 250 million viewers worldwide. The debate explored the issues surrounding the migration of jobs and people across Europe. For more information, visit The future of Far Eastern Europe was high on the agenda at the Annual Meeting, where European leaders present included Recep Tayyip Erdogan, Prime Minister of Turkey, and Georgian President Mikheil Saakashvili, who introduced his economic programme and invited foreign investment. In 2003/2004, Forum initiatives continued to play an important role in shaping the European agenda. As well as the Lisbon Review, the Global Competitiveness Programme also published The Global Competitiveness Report, which provided a unique appraisal of the performance of European economies within its worldwide coverage. Many European businesses continued to be involved in the Forum’s Global Corporate Governance Dialogue. Considerable scope remains to extend this initiative to countries in central and eastern Europe, where many companies continue to need guidance in the principles of corporate behaviour.

European Union enlargement
The European Economic Summit was convened in Poland to provide a platform for leaders from business, politics and civil society to discuss issues facing the region on the eve of European Union enlargement. BBC World televised a World Economic Forum debate on enlargement and immigration, presented by leading journalist and anchorman Nik Gowing, days before 10 new countries joined the EU. While Europe’s falling birth rates make importing new workers essential, it was thought that there was a need to better manage immigration. The debate included such key personalities as Günter Verheugen, the European Union’s Commissioner for Enlargement, Portuguese President Jorge Sampaio and Italy’s Minister of Innovation and Technology, Lucio Stanca. Viewers heard that public fears about migrants were largely the result of earlier mistakes that had allowed uncontrolled immigration. Stanca emphasized that efforts were needed to inform the public that foreign workers were necessary. 13

Frank Laczko, who heads research at the International Organisation for Migration, said that fears of a flood of migrants were largely unfounded. He pointed out that after the fall of the Berlin Wall, there were fears that 25 million workers might flood from East to West. In fact, there are now only 850,000 migrants from Eastern and Central Europe living in the West.

From left: Vaira Vike-Freiberga, President of Latvia; Günter Verheugen, then Commissioner for Enlargement, European Commission, Brussels, and Aleksander Kwasniewski, President of Poland

The regional agenda
The World Economic Forum’s Russia Meeting in Moscow coincided with Russia recording the highest growth rate of the post-communist era, its first investment grade ranking, government action against the Yukos oil company, and the eve of national elections. summit used the occasion to voice strong support for quickening economic integration in Asia, prior to the 2020 deadline set by ASEAN’s leaders. The China Business Summit in Beijing, in November 2003, saw the joint efforts of the WTO, the UNCTAD and IFC, under the umbrella of the World Economic Forum, to support and enhance China’s integration into the global trading and economic community. Five hundred business leaders heard a call from the government for greater corporate responsibility and also took part in a ground-breaking series of workshops to highlight the role of partnerships between business, government and civil society to combat the spread of HIV/AIDS in China. Also in November 2003, around 500 senior business leaders, experts, members of the government and senior officials convened for the India Economic Summit in New Delhi. Participants sought to assess India’s competitiveness and to develop blueprints for success. For details, see The Asia Strategic Insight Roundtable in Seoul, Republic of Korea, was held in June in the wake of President Roh Moo-Hyun’s return to office after his impeachment was overturned. Two hundred top decision-makers, from business government and civil society convened to examine emerging challenges. Participants assessed future scenarios and

“America wants the strongest possible Europe... You must not sell yourselves short, and settle for less than the military capability and influence you deserve.”
Dick Cheney, Vice-President of the United States of America

The main thrust of the meeting was a broad scenario-building exercise, which captured the attention of the meeting’s 400 business executives and analysts. Russia’s competitiveness and the importance of its oil and gas industries were among the key issues. The highlight of the summit was an address by President Vladimir Putin, who expressed optimism for the country’s economy.

Asia and the Far East
The East Asia Economic Summit in Singapore, held under the theme Asia’s Future: Recapturing Dynamism amidst the region’s recovery from SARS and in the aftermath of terrorist bombings in Bali and Jakarta, was a striking symbol of Asia’s ability to come together at times of crisis. Business leaders at the

After Manmohan Singh became Prime Minister of India in May 2004 one of the first international visitors he received was Colette Mathur, the World Economic Forum’s India and South Asia director. meet in New Delhi to celebrate the 20th anniversary of the India summit. They will discuss India’s achievements in areas of priority for the country’s sustained economic progress, especially in ICT, biotechnology, pharmaceuticals, research and development, auto components, manufacturing, outsourcing and foreign investments, while identifying areas where further reforms and progress must be achieved. Mathur said that the Forum had been an advocate for the potential and quality of Indian industry, long before its recent economic boom. She said: “The Forum always shared its expertise and experience with the country. Going forward, we can support India on such key issues as reform, on foreign investment, and in the growing multinationalism of the business sector.”

Colette Mathur, Director, India and South Asia, World Economic Forum, meeting with Indian Prime Minister Manmohan Singh

Their meeting reflected the close and trusting relationship that India and the Forum have enjoyed for two decades. A relationship that began formally in Geneva in 1984, when then-prime minister Rajiv Gandhi agreed to host an inaugural India Economic Summit the following year. In December 2004, leaders of India’s business and political community and their international peers will


developed new strategies in response to such challenges. See In February 2004, members of the World Economic Forum’s New Asian Leaders (NALs) community held their official retreat in Malaysia. His Majesty King Abdullah II of Jordan gave a keynote address and took a leading role at a meeting between the NALs and the Arab Business Council. In May 2004, Klaus Schwab met privately with Premier Wen Jiabao and other state leaders to discuss the Forum’s 25-year relationship with China.

administration’s position in the aftermath of the war during the Annual Meeting. He was joined at Davos by 15 Members of Congress from both the Republican and Democratic parties. The US also sought to address concerns about Iraq at the World Economic Forum in Jordan summit, where Secretary of State Colin Powell led a delegation that met Arab leaders in the aftermath of the Abu Ghraib prison abuse scandal.

Latin America
After several years of political and economic instability, Latin America began to show signs of recovery. Nevertheless, the need to strengthen institutions, deliver economic reforms and improve social conditions remained. The region is seeking to improve competitiveness, particularly in meeting the challenge of China’s growing importance in the world economy. Through our Global Competitiveness Programme, the Forum sought to contribute to regional thinking and to help make the Latin economies more competitive. At the Annual Meeting, the failure of World Trade Organization negotiations at Cancun was of high concern because trade liberalization is essential for economic development in Latin America. Davos also saw a meeting between Brazilian and Indian participants to build a closer relationship.

North America
The region continued to expand its presence in the World Economic Forum with a third of all corporate members now coming from the US. This high representation satisfied the continuing demand of other world leaders to engage with the US. In November 2003, the Forum convened more than 100 US leaders at Columbia University in New York to prepare for the Annual Meeting. It was the first ‘Taste of Davos’ event held in the country and gave participants an insight into the topics and a chance to contribute their own views. Following previous divisions over the conflict in Iraq, US Vice-President Dick Cheney presented the

Asia Strategic Insight Roundtable
In June 2004, 200 political and business leaders convened at the Asia Strategic Insight Roundtable in Seoul, Republic of Korea, to exchange ideas and scenarios for the future of the region’s economy. Participants focused on such key questions as the resilience of the Japanese recovery and the ability of China to achieve a ‘soft landing’ after years of impressive economic growth. During the event, which was hosted by President Roh Moo-Hyun, leaders also debated the pace of Asian economic integration, the consequences of Chinese companies going global, Asia’s security concerns, the transition to urban economies and the region’s growing energy demands. Among key themes to emerge was a cautious optimism for the entire region fuelled by the economic success of China and India, although Japan’s limited recovery weighed heavily on the minds of participants, who included Heizo Takenaka, Minister of State for Financial Services, Economic and Fiscal Policy of Japan. Roh Moo-Hyun, President of the Republic of Korea They also examined a broad spectrum of risks to the economic and social development of Asia, including terrorism and a recurrence of the SARS pandemic. The leaders agreed there was a need for constant monitoring of the tensions and uncertainties around the Korean peninsula, Taiwan Straits and India/Pakistan, which threatened to overshadow investment decisions. 15

Business has an important role to play in managing climate change and investors, consumers and NGOs are all seeking information about how companies are tackling the issue. The World Economic Forum’s Global Greenhouse Gas Register is the only platform that enables companies to provide comparable and comprehensive emissions data to the public.


Global Institute for Partnership and Governance

Advancing the spirit and practice of global citizenship

In 2003/2004, the World Economic Forum established the Global Institute for Partnership and Governance. The Global Institute works to advance the spirit and practice of global citizenship through specific acts of collaborative problem-solving. It provides a platform for multistakeholder partnerships that seek to tackle global challenges by catalysing action, improving governance and bridging perspectives. Global Health Initiative (GHI) The GHI seeks to increase business efforts to tackle HIV/AIDS tuberculosis and malaria. It serves as a focal point for private sector engagement with the Global Fund to Fight AIDS, TB and Malaria, and the Stop TB and Roll Back Malaria partnerships. The initiative continued to work with Forum member companies and bodies such as the World Health Organization, the Joint United Nations Programme on HIV/AIDS, the International Labour Organization, and the World Bank in southern Africa, India and south-east Asia. It launched the India Business Alliance to Stop TB, which will serve as a model for similar initiatives in other regions. It also published the first report on the global business response to HIV/AIDS, suggesting that companies are not yet playing a significant role in tackling the pandemic. Jordan Education Initiative The Jordan Education Initiative (JEI) brings together nearly 30 companies with the Jordanian authorities to transform public education through technology. In 2003/2004, it accelerated curricular, teaching and infrastructure reforms in 50 schools and introduced

e-curricula in mathematics. The impact of JEI reforms at 96 designated ‘Discovery Schools’ was felt by 17,500 pupils and 500 teachers. The JEI also supported the development of the kingdom’s IT industry with each e-curriculum being developed jointly by international and Jordanian IT companies.

“What we really need to do is to stop new people from being infected [with HIV/AIDS]. The most dramatic thing would be a microbicide or a vaccine.”
Bill Gates, Co-founder, Bill and Melinda Gates Foundation

Global Greenhouse Gas (GHG) Register In 2003/2004, the Forum, in partnership with business and environmental groups, launched the Global Greenhouse Gas Register. This is the first international initiative dedicated to providing comparable and comprehensive corporate greenhouse gas emissions data to the public. It gives companies from all regions and industry sectors the chance to show how much GHG they produce, and what they are doing about it. Eleven major businesses signed up to the register. These companies emit an estimated 800 million tons of carbon dioxide equivalent per year. Water Initiative The Water Initiative facilitates multistakeholder co-operation in the management of watersheds. Water is a key resource and the initiative strives to improve the quality and quantity for business and communities. Its activities in 2003/2004 included the launch of the Africa Water Project Exchange, which successfully 17

Global Institute for Partnership and Governance
matched five water-related projects with potential funding organizations. For more information about the initiative, see Wyatt Worldwide, an assessment of the readiness of Organisation for Economic Co-operation and Development (OECD) countries, which is intended as a tool to spur greater action. Global Corporate Citizenship Initiative More than 70% of CEOs surveyed by the World Economic Forum believe that mainstream investors will develop a greater interest in corporate citizenship issues. The findings were published in a major report entitled Values and Value: Communicating the Strategic Importance of Corporate Citizenship to Investors. The Global Corporate Citizenship Initiative focuses on improving corporate social responsibility programmes. It hosted three roundtable discussions on ‘Mainstreaming responsible investment’. Council of 100 Leaders The Council of 100 Leaders was launched at the Annual Meeting with a debate on Promoting InterCivilizational Dialogue and Action. This was followed by a debate on Modernism, Secularization and Religion at the World Economic Forum in Jordan. The council seeks to support projects that address problems facing society in the areas of education, justice, peace, advancing development, social justice and human rights. For more about the Global Institute for Partnership and Governance, see

“At Alcan, we now know that whether we are managing a watershed or a harbour, we have an inescapable duty to the larger community.”
Travis Engen, CEO of Alcan Inc, Canada

Global Governance Initiative The Global Governance Initiative monitors the efforts of governments, the private sector, international organizations and civil society towards the goals of the United Nations Millennium Declaration. These objectives relate to poverty, conflict, health, education, the environment, human rights and hunger. In 2004, the initiative’s first annual report concluded that the international community was investing less than half the effort needed to meet these targets. Pension System Readiness Initiative Increased life expectancy is putting unsustainable pressure on pension systems. The Pension System Readiness Initiative brings together leaders from the financial services and employment sectors with senior citizens’ groups, labour unions and governments to assess international retirement system readiness. During the year, the initiative developed, with Watson

Africa Water Project Exchange
In 2003/2004, the World Economic Forum launched a new matchmaking service to create publicprivate partnerships for the delivery, conservation and management of water projects in Africa. During the summit, the World Economic Forum announced the first promising water project partnerships, including initiatives in Mozambique, Nigeria, South Africa, Malawi, Tanzania, Kenya and Swaziland. Activities include strengthening the Joint Water Commission between Swaziland and Mozambique with private and public involvement; a water optimization programme for 16 bottling plants in Nigeria and a recycling project in industrial development zones in South Africa. The Africa Water Project Exchange is the first regional component of the Water Project Exchange, the main activity of the World Economic Forum’s Water Initiative.

Joaquim Chissano, President of Mozambique, left, and Frédéric Sicre, Managing Director, World Economic Forum

The Africa Water Project Exchange was inaugurated by President Joaquim Alberto Chissano of Mozambique at the Africa Economic Summit 2004 in Maputo. To mark the occasion, President Chissano and Gugu Moloi, CEO of Umgeni Water, South Africa, started a play pump – a merry-go-round that allows children to draw water for their school while they play. The pump is one of the schemes to benefit from the programme.


Centre for Strategic Insight
In 2003/2004, the Forum established the Centre for Strategic Insight to identify emerging risks and to help shape the global business and political agenda. The Centre seeks to deliver a sound understanding of the challenges facing the world and to guide global corporate and government policy. The Centre is organised into four core teams, focusing on: business insight; global insight; economics and competitiveness; and global and regional agendas. These teams aim to develop a unique understanding of the challenges facing every region and to focus the World Economic Forum’s meetings, task forces and initiatives on those issues that will have a major impact on economic development, both today and tomorrow. Ged Davis, former head of scenario planning at Royal Dutch/Shell, heads the new Centre. Working closely with the Forum’s networks and communities he has begun to develop a programme of concrete projects. For example, one initiative was launched to assess likely political and economic developments in India and another to identify breakthrough management ideas. The Forum’s Global Competitiveness Programme will be a key plank of the Centre’s activity. In 2003/2004, The Global Competitiveness Report was extended to cover 102 countries, up from 80 the previous year. It received extensive positive international attention. Several events were arranged in conjunction with the publication, including a session in Washington DC, with commercial attachés, and a competitiveness panel debate in New York. The programme launched three other publications during the year: The Global Information Technology Report, the Lisbon Review and The Africa Competitiveness Report. The competitiveness team held sessions at the Annual Meeting and regional summits and presented their work at a series of national conferences. The Centre for Strategic Insight began to assess risks facing the global economy ranging from terrorism to those associated with science and technology. Working with a strategic partner, it will produce a twice-yearly assessment of global risks. Plans were also drawn up for a new fortnightly members’ publication to include strategic insight updates and reports on key industry sectors. For more information about the Centre for Strategic Insight, see

Identifying breakthrough ideas
The private sector will benefit from breakthrough ideas on improving the way companies operate, thanks to a joint project between the World Economic Forum’s Centre for Strategic Insight and the Harvard Business Review. The project included a workshop that sought to identify the new thinking that would have the greatest impact on business. The event brought together 20 key individuals, including consultants, entrepreneurs, academic research directors, editors and others with a broad view of new and innovative ideas. The team contributed around 10 ideas to be used in the Harvard Business Review’s list of new management ideas, to be published early in 2005, and presented to the next Annual Meeting in Davos. The information gathered will now be developed with the insights gained being used to strengthen the Forum’s knowledge base and to enrich future events. In another ground-breaking Thierry Malleret, Senior Director for Global Insight, left, and Ged Davis, head of the Centre for Strategic Insight initiative, the Centre for Strategic Insight launched the India and the World scenario project. Working with senior executives from global companies, other thought-leaders and scenario practitioners, the project sought to anticipate a range of possible futures for the subcontinent. The knowledge will be used to build robust strategies to meet coming challenges. Similar exercises are planned for Russia and the Arab world. 19

In 2003/2004, the coverage of The Global Competitiveness Report was extended from 80 to 102 countries and particular efforts were made to include those in sub-Saharan Africa.


Our members and partners

Committing to our mission

The World Economic Forum works with influential companies from all industry sectors and every region of the globe. Together we seek to tackle the most complex and challenging issues facing mankind and to improve the state of the world. Members Our members represent the world’s 1,000 leading companies, including 200 smaller businesses, many from the developing world, which play a potent role in their industry or region. They are more than just influential and powerful. Many are also innovative and inspiring organizations that challenge conventional thinking and are committed to making the world a better place. Reflecting our belief that global and regional problems are too large and complex to be solved by any single organization, our members work together and with communities of leaders from academia, government, religion, the media, nongovernmental organizations and the arts. During 2003/2004, the following companies were accepted as members of the World Economic Forum: AirAsia Bhd, Ajit Khimji Group of Companies LLC, Alcoa Inc., Al Futtaim Trading Group, Al-Ghurair Group of Companies, Allied Capital, AlpInvest Partners NV, AMD (Advanced Micro Devices Inc.), Anglo American Corporation of South Africa Ltd, AngloGold Ashanti Limited, Attar Group, Aveng Limited, Baker & McKenzie, Bank Leumi Le-Israel BM, Beijing Capital Group Co. Ltd, Belgacom NV, Bin Zayed Group, British Sky 21

Broadcasting Group Plc, Carlyle Group, CDP Capital (Caisse de Dépôt et Placement du Québec), Centre of Excellence for Applied Research & Training (CERT), China Aviation Oil (Singapore) Corporation Ltd, Chiquita Brands International Inc., CNBC, Coinvertir – Corporacion Invertir En Colombia, Columbia House Company, Commercial League National Pharma Center Inc., Covington & Burling, Daesung Group, Dallah Al Baraka Holding Co., Danaher Corporation, Dentsu Inc., Dr Reddy's Laboratories Ltd, Dubai International Financial Centre (DIFC), Dyno Nobel Asa, eBay Inc., Emaar Properties PJSC, Emirates National Oil Company Ltd, Escorts Limited, Fast Retailing Corporation (Uniqlo), FLAG Telecom Group Ltd, Ford Motor Company, Fuji Television Network Inc, Grupo IUSA, Guangzhou Development Industry (Holdings) Co. Ltd, Halcrow Group Ltd, Havas Group, Hayel Saeed Anam Group of Companies (HSA Group), Hikma Pharmaceuticals, HSBC Bank Plc, Hyperion Solutions Corporation, International Container Terminal Services Inc. (ICTSI), Interros Holding Company, Isu Group, Japan Aerospace Exploration Agency (JAXA), Japan Tobacco Inc., JSW Group, Jubilant Organosys Ltd, Keppel Corporation Limited, Koç Holding AS, Konka Group Co. Ltd, Lenenergo JSC, Liberty Mutual Group, Lucent Technologies Inc., Lupin Ltd, Maeil Business Newspaper and TV, Mansour Group, Mercer Inc., Metro AG, Mobile Telecommunications Co., NASD, National Bank of Greece, National Bank of Oman (SAOG), National Foundation for Teaching Entrepreneurship (NFTE),

Our members and partners

Annual Meeting co-chairs, clockwise from top left: John T. Chambers, President and CEO, Cisco Systems, USA; Marilyn C. Nelson, Chair and CEO, Carlson Companies, USA; Walter B. Kielholz, Chairman of the Board, Credit Suisse Group, Switzerland, and Carlos Ghosn, President, Nissan Motor Company, Japan

Nigerian Economic Summit Group Ltd Gte (NESG), North Shore-LIJ Health System, Occidental Petroleum Corporation, Office Chérifien des Phosphates (OCP), Olam International Ltd, Oman Oil Company SAOC, Orange Plc, Petro-Energy Management Ltd, Pitango Venture Capital, PSA Corporation Limited, Public Broadcasting Service (PBS), Quexco Inc., Research in Motion (RIM), Rosneft Oil Company, Royal DSM NV, Sagawa Express Co. Ltd, Sapura, SEB Groupe, Sembcorp Industries Ltd, Shamil Bank of Bahrain, Silicon Graphics Inc. (SGI), Singapore Airlines Limited (SIA), Sinochem Corporation, Skab Group of Companies, Software House International (SHI) Inc., Solidere, Sovico Corporation, Starbucks Coffee Company, State Bank of India, Sual-Holding, Sumitomo

Partners Our partners are drawn from member companies who strongly support, contribute to and benefit from the World Economic Forum’s mission. They are actively involved in the organization’s activities and contribute their expertise and resources. In 2003/2004, over 80 companies formally joined as partners of the Forum across a broad array of initiatives, activities and events. These included three new strategic partners who displayed a deep commitment to our mission by engaging their companies in multiple Forum projects. As of 30 June 2004, our strategic partners were: ABB, Accel Partners, Accenture, Apax Partners, A.T. Kearney, Audi, Bain & Company, Barco, The Boeing Company, Bombardier, Booz Allen Hamilton, BP, Cisco Systems, The Coca-Cola Company, Deloitte Touche Tohmatsu, DHL, Ernst & Young, HP, IBM Corporation, KPMG, Kudelski Group, McKinsey & Co., Merck & Co. Inc., Merrill Lynch, Microsoft Corporation, Nestlé, Nike, PepsiCo, Pfizer, PricewaterhouseCoopers, Siemens, Swiss Re, UBS, Volkswagen, Zurich Financial Services. Around 35% of places are made available to companies from the developing world, and others to entrepreneurs whose innovative thinking and drive are changing their industries. To find out more, visit

“By including our commitment in the World Economic Forum’s [Greenhouse Gas] Register, we want to show that business is taking real action to cut CO2 emissions.”
Chris Boyd, Chairman of Lafarge, Italy

Chemical Company Ltd, Swisscom AG, Symbian Ltd, Symbol Technologies Inc., Teachers’ Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF), Telecom Egypt, Tenet Healthcare Corporation, Uni-President Enterprises Co., United Mizrahi Bank Ltd, VeriSign Inc., Veritas Software, Vimpel-Communications, Vodacom Group Pty Ltd, Washington Group International Inc., West Japan Railway Company.


Our communities and constituencies

Harnessing expertise and capabilities

The World Economic Forum recognizes the importance of specific expertise as key to its success. To nurture these capabilities the Forum has created communities of member and partner companies and encourages interaction between them, whenever it is relevant and worthwhile. The International Business Council In 2003/2004, the International Business Council’s (IBC’s) trade task force continued to emphasize the importance of trade liberalization. Following the collapse of the Doha trade round, the IBC reiterated its support for the World Trade Organization and its belief in the goal and completion of the Doha round for global prosperity and security. At the start of the 2004/2005 financial year, the IBC was encouraged to see an agreement has been reached to kick-start the talks again. Two IBC meetings were held in summer 2003, in Geneva, and in winter 2004 at the Annual Meeting in Davos. Several members also participated in the Forum’s summit in Jordan, which provided an opportunity to reaffirm their commitment to peace in the region. Industry Governors Industry Governors are made up of CEOs from major companies within specific industry groups. During the year they continued to address issues of primary importance to their sectors and provide intellectual stewardship to the Forum’s efforts, such as our

industry-specific initiatives and task forces and industry-targeted sessions at our meetings and events. Governors for the communications and technology industry are working with governments to bring affordable technology to the developing world. For example, in 2003/2004, they continued to be involved in the Jordan Education Initiative, which has mobilized more than US$14 million to transform education in the kingdom through the use of computer technology. Through the IT Access for Everyone programme they have also pledged US$1 million to fund research into the feasibility of an affordable PC-type device for the developing world.

“It’s hard to expect long-term stewardship from shortterm stewards. In the United States from 1998 to 2001 there was a 30% turnover rate among CEOs.”
Marilyn C. Nelson, Chair and CEO, Carlson Companies, USA

In other sectors, initiatives in the engineering and construction arena led to 19 companies adopting principles for countering bribery, while in logistics and transportation, CEOs took steps to promote corporate citizenship to their peers. The Governors meet at the Annual Meeting and assign representatives for Forum initiatives. They also attend industry-specific events. For example, 20 Governors in the communications and technology sector attended a roundtable on digital rights and intellectual property. See 23

Our communities and constituencies

Lord Carey of Clifton, former Archbishop of Canterbury, at the Annual Meeting 2004, in Davos

From left: Brian Bruce and Millard Arnold of industrial and infrastructural holding company Murray & Roberts and Nick Moon and Martin Fisher of NGO ApproTEC at the Annual Meeting

Advisory Groups Our Advisory Groups cover a range of interests, from religious leaders and non-governmental organizations to academic institutions and trade unions. The purpose of these Advisory Groups is to assist other key stakeholders in the global economy to engage in, and help shape, World Economic Forum activities.

Forum Fellows Forum Fellows are our greatest source of intellectual capital. Out of a network of several hundred people at the cutting edge of their disciplines, 180 attended the Annual Meeting. The Fellows participate in every activity of the Forum from initiatives to private meetings, contributing ideas and in-depth knowledge. Global Leaders for Tomorrow The World Economic Forum is committed to working with young leaders to challenge the status quo and look at the world’s problems with fresh eyes. Representing the new generation of leaders from business, politics, the arts and civil society, the Global Leaders for Tomorrow held a summit in Geneva in September 2003 aimed at tackling the world’s problems in an energetic way. During the year, the Forum announced it was building on the success of these young individuals to create a more ambitious group: the Forum of Young Global Leaders. It brings together 1,111 leaders, aged 40 or below. They will engage in the 2020 Initiative, an effort to address the complex challenges of today to shape a better future. Women Leaders The Women Leaders Programme is committed to supporting the progress of female leaders and the advancement of issues facing women. During the year, the Women Leaders Programme successfully increased the participation of women in all Forum events. It also hosted sessions on related issues in India, Switzerland and Jordan.

“I think the unhappy truth is that the net result of the war on terror so far is to make more war and more terror.”
Gareth Evans, International Crisis Group, Belgium

The Investors Group The Investors Group was created in 2003/2004 to integrate providers of capital into the World Economic Forum’s activities. This new group seeks to broaden debate and complement the perspective of the Forum’s membership by including such stakeholders as leading venture financiers, private equity players and selected individual investors. These investor representatives have an important role to play in such issues as corporate governance, the turnaround of failing companies and macroeconomic capital flow. Over the past year, more than 25 investors became formally involved in Forum activities, working with other communities on such issues as social return on investment and increasing employment.


Technology Pioneers Technology Pioneers are drawn from the most innovative companies in the world. In 2004, in line with the World Economic Forum’s commitment to encouraging dialogue between technology innovators and members, the constituency was fully integrated into the Annual Meeting. The Forum ensures the quality of Technology Pioneers through a rigorous evaluation. Out of 114 candidates, only 30 Technology Pioneers were selected for 2004. The Annual Meeting programme contained two sessions focusing on this constituency’s work including: Technology Pioneers: Demystifying Innovation and Technology Pioneers: A New Lease on Health. They also took part in a private programme that included special guests from such organisations as Google, Microsoft and Stanford University. Dialogue with NGOs During 2003/2004, the World Economic Forum continued to build strong relationships with non-governmental organizations (NGOs). We once again encouraged NGO involvement in our task forces and initiatives, with 63 groups being at the Annual Meeting. The Forum worked with Transparency International to develop principles to counter bribery in the engineering and construction industry. We co-organized the Open Forum at the

Annual Meeting with Bread for All and the Federation of Swiss Protestant Churches, and sessions were organized with the Terre des Hommes Foundation, the Max Havelaar Foundation and IUCN – The World Conservation Union. Oxfam attended our summits in Europe and Africa. The Forum continued its dialogue with antiglobalization campaigners, exchanging views with key leaders within the alter-globalization movement. Social Entrepreneurs The World Economic Forum works with the Schwab Foundation for Social Entrepreneurship to support people who, with little market reward or assistance, use their resources to address problems of economic and social inequality. The Foundation consists of 74 individuals and organizations, including 16 selected during the year. Partnerships focusing on the work of social entrepreneurs have been established with leading corporations, including Hewlett Packard, VISA, DHL, Diageo, Linklaters and Microsoft. In 2003/2004, the Foundation established a course on social entrepreneurship at the University of Geneva. It also created the Leapfrog Fund with the Lemelson Foundation to support the replication of innovations by social entrepreneurs. For more information, visit

Social Entrepreneurship
Rory Stear is founder and CEO of the Freeplay Energy Group (FEG), which develops products based on self-sufficient energy technologies. The South African is among 16 people nominated in 2003/2004 as members of the Schwab Foundation for Social Entrepreneurship network. FEG was founded in 1994 to give energy access to all. In 1996, its first product was the wind-up radio, which has been a significant means of spreading education and information (from HIV/AIDS awareness to home-study English and mathematics) among those least able to afford communication technology. Since then FEG has developed other technologies that have helped them to improve the radio design and broaden their product range to include medical instruments, telephone chargers and flashlights. All are designed to meet the demand for low-cost, durable, self-powered products for use in the developing world. The Freeplay Energy Group’s wind-up radio is Sustainable radio helping to spread education and information in the developing world programming offers a lifeline of information to vulnerable populations with low literacy levels and limited access to electricity, television or telephones. FEG launched the more powerful and durable Lifeline Radio in 2003. This has already played a major role in disaster relief and disarmament projects in Burundi, Mozambique, Tanzania, Niger and Rwanda. 25

The World Economic Forum has a highly talented and educated staff, with a cultural diversity that matches its global membership. Below, two colleagues from the Forum’s IT and Communications teams tackle an outdoor challenge as part of a team-building exercise.


Our people

Talent from around the world

We rely on the skills, knowledge and dedication of our people to fulfill our mission. In 2003/2004, we acted to further increase their expertise and to support them during our ongoing reorganization, which aims to adapt our structure to meet the demands of the Forum’s developing role. The total number of staff rose from 159 in the previous year to 180, representing a broad spectrum of 37 nationalities. Among those recruited were several people with significant industry experience and specific know-how who will reinforce our capabilities and enhance our ability to bring value to our partners and members. The Forum integrated six staff seconded from member or partner organizations with regional and/or industry-specific knowledge. Such secondees participate fully as Forum staff during their stay. This continued evolution of the Forum, which included the creation of the Global Institute for Partnership and Governance and the Centre for Strategic Insight, led to the development of new teams. To support the creation of this enlarged Forum community we introduced a formal process, known as ‘Waves’, a training programme focusing on the individual, the team and the organization, which aims to help them perform better. We have now embarked on Wave two, which focuses on team contribution and leadership skills. For more information, see

Nationality American Argentinian Australian Belgian Bolivian Brazilian British Canadian Chinese Costa Rican Danish Dutch Ethiopian Finnish French German Indian Iranian Irish Italian Japanese Lebanese Malagasy Mexican Moroccan New Zealander Norwegian

Numbers* 19 1 4 2 1 2 12 5 1 1 2 6 1 2 25 13 3 2 1 13 1 1 1 1 2 1 1

Nationality Pakistani Singaporean South African Spanish Sri Lankan Swedish Swiss Thai Turkish Ukrainian Nationalities

Numbers* 1 1 2 4 1 4 40 1 1 1 37

Age group 20 to 25 to 30 to 35 to 40 to 45 to 50 to 55 to 60 to 63 to 65 or Total 24 29 34 39 44 49 54 59 62 65 older

Numbers* 3 37 49 34 19 13 3 12 5 3 2 180 27

*Numbers as of 30 September 2004.

Our organization

Exemplary governance

The Foundation Board The Foundation Board is responsible for inspiring business and public confidence through an exemplary standard of governance. The Board’s members are individuals with unique leadership experience from business, politics, academia and civil society.

“To achieve human dignity for all, internationally agreed targets must be considered simultaneously and through coordinated strategies.”
Mary Robinson, Executive Director of the Ethical Globalisation Initiative, USA

• • • • • • • • • • • • •

The Board’s role includes: managing the statutes of the World Economic Forum; appointing new members; determining and monitoring the execution of the Forum’s strategies, and defining the roles of the Managing Board and Committees. The membership criteria include integrity, global vision, leadership experience and participation in world affairs. In January 2004, the Forum welcomed Carly Fiorina, Chairman and CEO of HP, and Orit Gadiesh, Chairman of Bain & Company, USA, to the Foundation Board. The Foundation Board members for the year 2004/2005 are: • Klaus Schwab, Executive Chairman • William I. M. Turner, Vice-Chairman • Josef Ackermann, Vice-Chairman • Kurt Alig, Secretary • Peter Brabeck-Letmathe

Lord Carey of Clifton Victor L. L. Chu Flavio Cotti Michael S. Dell Carly Fiorina Niall FitzGerald Orit Gadiesh Rajat Gupta Nobuyuki Idei Caio Koch-Weser Henry A. McKinnell Heinrich von Pierer H.M. Queen Rania of the Hashemite Kingdom of Jordan • Peter D. Sutherland • Ernesto Zedillo Ponce de Leon The Committees of the Foundation Board The Foundation Board appoints four committees from among its members: • The Executive Committee prepares the decisions of the Foundation Board and oversees the Managing Board • The Audit Committee ensures compliance with all financial, accounting and control processes • The Evaluation and Remuneration Committee recommends candidates for positions on the Managing Board and monitors their performance • The Mission Compliance Committee reviews Forum policies, strategies and activities in light of its mission For more information about the Foundation Board, visit


Structure The World Economic Forum’s structure continued to evolve with the creation of three new core departments: the Global Institute for Partnership and Governance, the Centre for Strategic Insight, and Events. The new departments replaced our previous practice structure and enhanced our ability to build and energize global communities, convene world leaders in high-level meetings and interaction, shape global, regional and industry agendas, and facilitate joint action through global initiatives and partnerships. Global Institute for Partnership and Governance Many of today’s global and regional problems are too large and complex to be solved by traditional intergovernmental processes alone. Expertise from a variety of disciplines, stakeholders and regions is often required. The Global Institute for Partnership and Governance was created by the World Economic Forum to broaden the application of private-public partnerships to some of the world’s most pressing problems. The Institute consolidates all of our task forces and initiatives and is a comprehensive resource for companies seeking to engage with the public sector to tackle global issues. Building on the Forum’s independence and informality, it provides an environment in which leaders can engage in collaborative problem-solving free from the constraints of intergovernmental protocol and competitive corporate pressures. The Institute’s initiatives combine expertise from different regions and institutions in teams that span geography and profession. Its projects integrate the traditional thought leadership of research institutes with the practical perspectives and priorities of executives from business, government and civil society institutions. Centre for Strategic Insight The World Economic Forum’s Centre for Strategic Insight works with the Forum’s network of communities such as business leaders, NGOs and policymakers to create relevant strategic insight. There is particular emphasis on identifying emerging risks and developments that will shape the business and political agendas. The Centre

Forum activities

Annual Summits

Publications, Reports & Newsletters


Strategic Intelligence

Regional Communities

Industry Communities

Continuous Interaction

Global Community

Competitiveness Programme

Stakeholder Communities

Citizenship Initiatives

Leadership Governance Programmes

aims to develop an integrated overview of global, industry and regional agendas. It contributes to all Forum activities, ensuring members’ and communities’ focus on critical issues. The Centre has four core teams, focusing on business insight, global insight, economics and competitiveness, and global and regional agendas. It builds on the strong foundations laid by our competitiveness and global agenda teams to offer unique insights into developments across the world and to guide policy in the business and political arenas. Events Each year the World Economic Forum brings together thousands of decision-makers in meetings and regional summits to address the most crucial issues facing mankind. These events enable members and constituents to discuss key issues and trends across the globe by sharing first-hand information and insights. To maintain quality and effectiveness, we have created a new team with unique knowledge and experience in developing such high-calibre events. The team is responsible for the smooth running of such occasions as the Annual Meeting and the regional summits, and for ensuring that their programmes take advantage of knowledge gained by the Global Institute for Partnership and Governance and the Centre for Strategic Insight. 29

The Forum leadership

The 2003/2004 World Economic Forum Managing Board with the Executive Chairman. From left, Rick Samans, Frédéric Sicre, Ged Davis, Klaus Schwab, José María Figueres, André Schneider, Michel Ogrizek

The Executive Chairman
Klaus Schwab Founder and Executive Chairman of the World Economic Forum For more information, visit

The Managing Board
The Managing Board acts as the executive body of the Foundation. It ensures that activities fulfil the mission of the World Economic Forum and acts as its representative to outside parties. At September 30, the Managing Board members were as follows: José María Figueres Chief Executive Officer Ged Davis Managing Director, Centre for Strategic Insight, and Acting Managing Director, Community Management Michel Ogrizek Managing Director, Head of Communications Rick Samans Managing Director, Global Institute for Partnership and Governance André Schneider Managing Director and Chief Operations Officer, Events and Resource Management Frédéric Sicre Managing Director, Regional Strategy For more information about members of the Managing Board, visit


The Forum community
The commitment and expertise of our people drive the World Economic Forum’s activities and enable us to achieve our goals. At 30 September 2004:

Chairman’s Office
Klaus Schwab, Executive Chairman Monika Boerlin, Regula Waltenspuel, Maryse Zwick

Marthi Ungar, Marika Volosin, Christophe Weber, Carolina Windmeijer, Li Zhang, Reza Zia-Ebrahimi

Community Management CEO’s Office
José María Figueres, Chief Executive Officer Mercedes Aubert, Sohini Chowdhury, Patricia Martin Thomas Glanzmann, Senior Adviser Stefano Ammirati, Séverine Bachasse, Mireille Bertolini, Ursina Boulgaris, Giancarlo Bruno, Théa Chiesa, Mahasti Dadressan, Magguy Deleaval, Samantha Dimeck, Réka Fogarasi-Musso, Christoph Frei, Laure-Anne Guignard, Nadia Guillot Socquet, Susanne Helmsley, Laura Italici, Matthew McSorley, Viraj Mehta, Nathan Monash, Tanya Mounier, Simon Mulcahy, Andrew Richards, Natascha Ruckstuhl, Susan Simmons, Elena Smirnova, Kevin Steinberg, Mady Tissot, Silvia Von Gunten, Alex Wong

Centre for Strategic Insight
Ged Davis, Managing Director Sven Behrendt, Judith Binzegger, Jennifer Blanke, Carla Boeckman, Nathalie Cerutti, Wai Chik, Johannah Christensen, Sandra Costa-Marini, Ilaria Frau, Kerry Jaggi, Stéphanie Janet, Jeremy Jurgens, Emma Loades, Augusto Lopez-Claros, Thierry Malleret, Irene Mia, Bud Ris, Sarah Saffar, Vidhi Tambiah, Alexander Van de Putte, Saadia Zahidi

Event and Resources Management
André Schneider, Managing Director and Chief Operating Officer Chantal Adamson, Ntsoa Arintsoa, Helena Baars, Guy-Serge Baer, Grégory Bernarda, Emmanuelle Blaser Morel, Nadine Bonard, Damian Buchs, Denise Burnet, Nancy Chazal, Raymonde Christmann, Steve Crettenand, Irène Croisier-Rapin, Stéphanie Danhier, Jean-Loup Denereaz, Laura de Wolf, Maggie Fliege, Floriane Freymond, Yannick Fuentes, Malte Godbersen, Karine Guitton, Elly Hammar, Nur Ibaoglu Zahnd, George Jacovides, Julianne Jammers, Carine Kulloian, Georg Kumpera, Richard Lane, Madeleine Manusia, Martine Michaud, Annabell Molnar, Sandor Nagy, Anouk Pache, Annemarie Peter, Petra Ruiz, Wouter Savrij Droste, Pascale Schibli, Angela Scioscia, Christel Sutherland, Ursula WehrliKöpper, Sarah-Jane Zeller

Global Institute For Partnership and Goverance
Rick Samans, Managing Director David Aikman, Francesca Boldrini, Heather Clark, Oliver Haugen, Stefanie Held, Andreï Iatsenia, Carina Larsfälten, Johanna Liukkonen, Monica Lodygensky, Satya Rajan, Kate Taylor, Valerie Weinzierl

Michel Ogrizek, Head of Communications Mark Adams, Marie-Laure Burgener, Laura Deal, Richard Evans, Claudia Gonzalez, Caroline Jehan, Nina Joyce, Kamal Kimaoui, Matthias Lüfkens, Fon Mathuros, Laurent Sfumat, Fabienne Stassen, Samantha Tonkin, Isabelle Tornare, Nancy Tranchet, Yann Zopf

Community Development
Peter Torreele, Senior Director Haiko Alfeld, Thomas Berglund, Helen Besson, Corine Blesi, Els Boekhoudt, Gunveena Chadha, Fabienne Chanavat, Daniel Davies, Natalia de la Huerga, Meaza Essenberg, Anne Catherine Gay Des Combes, Serge Guex, Parvis Hanson, Catherine Henry, Felix Howald, Lee Howell, Giuseppe Iorio, Julian Jaeger, Carmen KellerBarretto, Béatrice Laenzlinger, Macha Levinson, Pamela Mar, Colette Mathur, Amal Mbarki, Grant McKibbin, Sylvie Naville, Yutaka Okura, Lucien Rieben, Kifah Salameh, Uschi Trouilhet,

Global Leaders & Special Groups
Frédéric Sicre, Managing Director Paula Verholen

Young Global Leaders
Fiona Paua, Assistant to the Executive Chairman Daphne de Laleu, Martina Gmür, Rosanna Mastrogiacomo, Catherine Vindret

Schwab Foundation
Pamela Hartigan, Managing Director Solenn de Kersauson, Maria Hermoso, Christian Meyer, Mirjam Schoening 31

Sharing knowledge

An open and connected organization

Information technology and knowledge management The World Economic Forum once again harnessed technology to strengthen internal processes, create world-class summits and enhance communication between our communities and constituencies. At the Annual Meeting we delivered innovative services based on state-of-the-art technology. For example, we introduced a Cyber Network Centre, providing the latest laptop technology for participants to access the Internet and our KnowledgeConcierge service. The KnowledgeConcierge offered a ‘state-of-the-debate’ essay on nearly every session topic. Participants at the Annual Meeting also benefited from: • Security passes containing a microprocessor and antenna that communicated with the main computer system and allowed access to personalized systems and sessions • A total of 90 kiosks providing relevant Annual Meeting information and enabling participants to stay in touch with each other and outside contacts • An improved Davos Companion, a hand-held pocket PC, that was faster, thinner and lighter than the previous version. It allowed access to such information as the programme, the biographies of participants, profiles of organizations, sign-up, e-mail via wireless networks and news-feeds After the Annual Meeting, 425 Davos Companions were donated to the Jordan Education Initiative. Another 175 were presented to, which

promotes the use of information and communications technology in the developing world to reduce poverty. During the World Economic Forum in Jordan summit, held at the lowest point on Earth, we provided a wireless LAN installation and portable Tablet PCs to allow participants to use the Internet. The same technology was used to enable an online conversation between students from internationally renowned universities and King Abdullah II of Jordan. Communications Sharing insights and information, in support of positive global action, is a core element of Forum activity. In 2003/2004, our communications team worked to make our knowledge base even more accessible to our members and other stakeholders. The Forum’s commitment to transparency is demonstrated by our practice of encouraging true media participation in our activities. Around 250 media leaders and senior journalists engaged in the Annual Meeting, with many high-level editors involved in our regional summits. These media participants included 35 of the world’s leading editorial cartoonists, who played a full part in summit discussions. This year, unprecedented media coverage further helped us to communicate our mission. For example, renowned journalist and anchorman Nik Gowing led live BBC World debates from the European Economic Summit in Warsaw and the Annual Meeting in Davos which reached half a billion viewers. Media analysts, Media Tenor, showed that, overall, positive reporting of the Annual Meeting


Participants at the May World Economic Forum in Jordan, online at the summit’s Internet café

Editorial teams in the Davos Broadcasting Village monitoring World Economic Forum Annual Meeting debates

had doubled. We also tripled favourable reporting of the European Economic Summit and received the best ever international coverage of The Global Competitiveness Report. Increased Web activity gave us access to a broader, far flung audience. We increased traffic on our website by 60%, including 1.6 million page views in January alone. We took part in online collaborations with leading media organizations covering four continents: including the BBC, the Wall Street Journal, the Financial Times, Le Monde, El Pais, the influential Latin American site Portal Exame, leading Middle East online provider Zawya, OhmyNews, which reaches 25 million Korean citizens, and India’s Rediff site. To allow participants and the wider public to debate freely on Forum activity, we were the first international organization to create a Web log. Having provided a log at the European Economic Summit and the Asia Strategic Insight Roundtable in Korea, we now plan to extend its use and offer it in tandem with live Webcasts of meeting sessions and opinion leader interviews. During the year, we opened direct communication channels with anti-globalization demonstrators at our summits in Poland and Korea. This approach helped clarify misunderstandings about the international role of the Forum and facilitated the course of non-violent demonstrations.

We strengthened our in-house publishing capacity, developing a dynamic publications strategy under a new editorial director. Our brochure, The World Economic Forum: Entrepreneurship in the Global Public Interest, was named the best institutional brochure in the UK’s prestigious Communicators in Business Awards 2004, ahead of competition from 18 other major organizations. We continued our two-year relationship with opinion research company Gallup International. On behalf of the Forum, Gallup surveyed 50,000 people from more than 50 countries, representing the opinions of more than 1.2 billion citizens. Topics included the key themes of the Annual Meeting 2004: security and prosperity. Partnerships The World Economic Forum seeks partnerships with like-minded institutions. It has NGO consultative status with the Economic and Social Council of the United Nations and works closely with civil society organizations, think tanks and foundations, such as: the Prince of Wales International Business Leaders Forum, the World Business Council for Sustainable Development, AccountAbility, SustainAbility, the UN Foundation, the International Finance Corporation, the Rockefeller Foundation, the Swiss Agency for Development and Co-operation, the Centre for International Governance Innovation and the Bill and Melinda Gates Foundation. 33

Our financial results

In 2003/2004, we achieved strong financial results, due in part to the impact of the new Global Institute for Partnership and Governance, which exceeded expectations. We also received a significant boost as 80 new companies became partners of the Forum. The continued evolution of the World Economic Forum during the year left us in a strong position to continue this financial trend. Forecasts for the Global Institute for Partnership and Governance remain positive and the initial impact of the newly created Centre for Strategic Insight should also be felt in 2004/2005. Financial policy The World Economic Forum’s financial policy states that membership fees should cover operational costs, that events are funded through cost contributions and that projects are supported by income from partnership contracts. The Forum may accept grants, donations, legacies and other contributions or subsidies that are consistent with its purpose of ‘integrating leaders from business, politics and society at large into a community for global action committed to improving the state of the world and the well-being and prosperity of human society’. The World Economic Forum makes no payments to political personalities, parties or other organizations and avoids involvement in national politics.

Auditors The World Economic Forum’s financial results are audited by PricewaterhouseCoopers, who examine the balance sheet and accounts. The annual report, as well as all institutional documents, are submitted to the Swiss Federal Government, which in law acts as the supervisory body for the Foundation.

Total Income 1999-2004
figures in Swiss francs





1999/ 2000

2000/ 2001

2001/ 2002

2002/ 2003

2003/ 2004



Key figures

Financial year Total income* out of which members’ fees participation fees partnership Total expenditure out of which personnel costs office costs activity-related costs Surplus to be added to the Foundation capital Foundation capital Total staff Full time out of which are seconded by Forum members Part time * all key figures in Swiss francs

1999/2000 61,100,642 22,106,920

2000/2001 63,806,052 23,588,125

2001/2002 72,195,453 24,965,367 26,972,981 18,946,940

2002/2003 66,454,727 25,530,325 21,465,398 17,390,452 66,454,522 26,584,768 8,360,352 31,509,401

2003/2004 74,058,911 25,137,257 20,543,108 24,552,385 72,307,790 29,620,236 9,044,738 33,642,815



69,077,008 27,097,659 10,642,445 31,336,904

1,684,507 8,746,549

249,759 8,996,308

3,118,445 12,114,753

205 12,114,958

1,751,121 13,866,079



139 4

130 4 28

134 5 28



28 35

Our mission and values

The World Economic Forum is the foremost global community of business, political, intellectual and other leaders of society committed to improving the state of the world. Our mission is best realized through activities which promote economic and social development. We believe that economic progress without social development is not sustainable, while social development without economic progress is not feasible. Our motto is thus ‘entrepreneurship in the global public interest’. In addition to convening world leaders, the Forum is committed to involving them in living communities of common interest and purpose. The Forum ensures substance in the form of strategic insights and, where relevant, platforms for joint action. To carry out its mission, the World Economic Forum has developed an integrated value chain by involving world leaders in communities, inspiring them with strategic insights and enabling them through initiatives. Our vision for the World Economic Forum is threefold. To be: • The foremost organization which builds and energizes leading global communities • The creative force shaping global, regional and industry strategies for its communities • The catalyst of choice for its communities when undertaking global initiatives to improve the state of the world

The World Economic Forum enjoys unique global positioning by recognizing and responding to two new developments: • The world’s key challenges cannot be met by governments, business or civil society alone • In a world characterized by complexity, fragility and ever-greater synchronicity, strategic insights cannot be passively acquired. They are best developed through continuous interaction with peers and with the most knowledgeable people in the field (learning communities)


Quincy Jones, Chairman and CEO, The Quincy Jones Listen Up Foundation, USA, at the Annual Meeting 2004.


Contact details: World Economic Forum 91-93 route de la Capite CH-1223 Cologny/Geneva Switzerland Telephone +41 (0)22 869 1212 Fax +41 (0)22 786 2744 e-mail:

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