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Annual Report 2001/2002

Solidarity in a
challenging year
Following their discussions at the Annual Meeting 2002 in New York, US Treasury Secretary
Paul O'Neill and rock star Bono visited Ethiopia as part of a joint tour of Africa. The tour
marked a step forward for the continent. Since their return, the US government has put
forward initiatives to address the AIDS epidemic and improve education in Africa.
The World Economic Forum is an
independent international
organization committed to
improving the state of the world.
The Forum provides a collaborative
framework to address global
issues, engaging world leaders –
particularly its corporate members
– in global citizenship.

Contents
The president’s statement 2

The global agenda: Annual Meeting 4

The regional agenda 6

Task forces and initiatives 10

Our members and partners 16

Our communities and constituencies 18

Our people 22

Our organization 24

Our mission and strategic vision 31

Our values and principles 31

Our financial results 32

www.weforum.org

1
The president’s statement

Solidarity in
a challenging
year

The World Economic Forum has achieved much in a 2) Our Global Health Initiative Executive Statement
difficult year. The attacks of 11 September, the was well received by corporations, governments
financial downturn, international tension and a and medical leaders alike. The health initiative is
breakdown of trust in corporate governance all driven by a partnership between the World
created a sense of global uncertainty. Against this Economic Forum’s member companies, the World
disturbed backdrop our membership and internal Health Organization and the Joint United Nations
team delivered in line with their key objectives. Programme on HIV/AIDS. Among the Executive
Statement’s objectives is a 50% reduction in the
A clear example was the Annual Meeting held in disease burden of TB and malaria, and a 25%
New York in early 2002. Our team relocated the reduction in HIV by 2010. In addition the World
event from its traditional home in Davos, Switzerland Economic Forum assisted the Global Fund to Fight
in just 12 weeks. We are proud of this achievement AIDS, TB and Malaria by advising them on how to
and of being able to provide a platform for world engage the private sector.
leaders to show their solidarity with New Yorkers so
soon after the attacks. This speed of relocation is 3) Canada’s Prime Minister, Jean Chrétien, announced
emblematic of the drive and purpose of our people. at the Annual Meeting the creation of a US$ 500
Significantly, it increased understanding in the US of million fund by the G-8 for African countries
the World Economic Forum’s mission. committed to reform. This action followed the
strong involvement of the World Economic Forum
In 2001/02 various outcomes showed that the World in the launch of the New Partnership for Africa’s
Economic Forum is succeeding in its aims of Development (NEPAD).
becoming an integrator of the best minds and a
catalyst to creating innovative, challenging ideas. Here The World Economic Forum is well-placed to help its
I highlight three specific examples of how the World members meet the societal challenges ahead and to
Economic Forum served as a platform and – I believe ensure that economic activities serve the global public
– as a prompt for our members to deliver solutions to interest. At this time, when trust in organizations of all
significant global issues: types around the world is low, we are more committed
than ever to transparency in our activities. In 2001/02
1) Our Global Digital Divide Initiative, which is focused we reaffirmed the values and principles which guide us
on bringing digital technology to the developing in several corporate documents.
world, took significant steps. Following discussions
at the Annual Meeting 2002, President Thabo
Mbeki of South Africa was able to announce that
Microsoft would supply free software to all 32,000
government schools in his country.

2
Klaus Schwab

Our team is stronger than ever before. It increased in The strength of the balance sheet and management
size from 147 people to 171, broadening the range of team and our organizational capability will be
experience, cultural diversity and talent we offer. Our important in the months and years to come. As
management team has also been strengthened. This global leaders we all bear the responsibility for
will help us to both deliver on a day-to-day basis and rebuilding trust in corporate and government
to ensure that we have the necessary skills and institutions. It is in our own interests, and those of
expertise to focus and develop our strategic offering. society, that we act together to find solutions.

After former President of Costa Rica José María The role of the World Economic Forum is
Figueres joined us as a managing director in 2000, permanently changing to be responsive to the
bringing vital governmental experience, we appointed challenges of our time. In 2001/02 the Forum
a new director of communications. Michel Ogrizek, continued its progression from being the convener of
who previously fulfilled global communications remits events, which uniquely engage all stakeholders in civil
at Unilever and UBS Warburg, started working with society, to becoming a leading strategic insight body.
us in August 2002. He will help with the key This progression will continue throughout the years to
challenge of communicating our mission in a come. It is mine and my colleagues’ intention that the
globalized world. In addition, we strengthened our World Economic Forum will become the leading
organizational capability, developing the new strategic insight organization in the world. As such the
governance system and extending our IT resources. World Economic Forum will continue to support global
leaders, from all sectors of society, by enabling them to
Our finances remain robust and we have continued identify the key issues and scenarios that face us all,
to manage them prudently and effectively with a and – most importantly – the actions that they must
focus on future needs. In the year under report, take together to improve the state of the world.
our income increased by 13% to Sfr. 72,195,453.
This allowed us to boost the amount spent on our
high priority activities and on essential
infrastructure by nearly 9% to Sfr. 69,077,008. The
surplus has been added to Foundation Capital
which now stands at Sfr. 12,114,753.
Klaus Schwab
Founder and President of the World Economic Forum

www.weforum.org

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The global agenda Participants in the Annual Meeting 2002

Annual
Meeting
2002 in
New York
Rabbi Israel Meir Lau, Ashkenazi Chief Rabbi of Israel, and
Cardinal Francis Arinze, President of the Pontifical Council
for Inter-Religious Dialogue

The Annual Meeting 2002 brought together more
than 2,700 leaders from business, government,
academia, the media and civil society.

It convened for the first time in New York City as a
symbolic act of solidarity with the city, after the
attacks of 11 September. These tragic events
brought home to all of us how fragile our world is.
In line with this insight, we built the meeting around
the theme of Leadership in Fragile Times: a Vision
for a Shared Future. Sessions thus concentrated
on six areas: advancing security and addressing
vulnerability; re-evaluating leadership and
governance; redefining business challenges;
reducing poverty and improving equity; restoring
Rudolph W. Giuliani, former Mayor of New York, addresses
the Annual Meeting 2002 of the World Economic Forum sustained growth; and sharing values and
respecting differences.

Ratio of Annual Meeting Participants 2002 The Annual Meeting achieved progress in many of
these areas. In particular, it was significant in
Other constituents developing relationships between the constituencies
Religious leaders from all walks of life that took part, 45% of whom
NGOs came from outside the world of business.

Media Fellows
In particular, the 42 religious leaders who participated
helped build a greater understanding of different
Business Technology Pioneers
values and cultures. In addition, there was a
Global Leaders
for Tomorrow significant Arab presence. Forty young Arab leaders
were integrated into the full Annual Meeting and we
Academic saw the highest ever participation of Saudi Arabians
experts
at a World Economic Forum event. This strong Arab
presence helped participants to better grasp the
Public figures complex relationship between Islam and the West.

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Tore Godal, executive secretary of GAVI Secretariat, Switzerland, Shimon Peres, Minister of Foreign Affairs and Deputy Prime Minister
and Pascal Mocumbi, Prime Minister of Mozambique of Israel, and Hillary Rodham Clinton, Senator from New York

There was a major focus on interactivity, with • The creation of a Disaster Response Network,
workshops and interview-style panel discussions on leveraging the resources of businesses in
crucial global, regional and industry issues. As such, engineering and transportation to assist with
the Annual Meeting was not a meeting in the traditional disaster relief efforts
sense, but more the flagship for the World Economic
Forum’s larger set of activities, including regional
“By holding their 2002 Annual Meeting in New York, the World
knowledge meetings and initiatives.
Economic Forum served as a resounding endorsement of New
The Annual Meeting, in common with all World
Economic Forum activities, aimed to identify tangible York City's sustained vitality. We can't think of a more appropriate,
solutions to the most urgent challenges facing the
world today. The outcomes delivered included: courageous and optimistic milieu for the Davos Meeting to be held

• The signing of a Global Corporate Citizenship than in the most diverse city in the world, which also happens to
statement by 36 CEOs, representing companies
be the financial capital of, and a global economic partner, to the
from various industry sectors and geographical
regions. The statement recommends a world. This is a tremendous vote of confidence in our city. It sends
framework for action to manage the impact of
business on society and to strengthen a message that New York is back in business, and that New York is
relationships with stakeholders around the globe
the place to be for world leaders and decision-makers.”
• The announcement of a contribution of
Rudolph W. Giuliani, former Mayor of New York, Annual Meeting 2002
US$ 50 million by the Gates Family Foundation
for AIDS prevention in Africa. This sum included
a US$ 20 million donation to the trial of a • A declaration by Canada’s Prime Minister Jean
promising microbicide that could potentially help Chrétien that the G-8 group of nations is creating
protect women from HIV/AIDS a US$ 500 million fund to help African countries
committed to reform. The fund will assist African
governments to build a durable peace, address
their health crises, strengthen democracy and
open potential for trade and investment

For more information about the Annual Meeting
2002 visit www.weforum.org/annualmeeting
www.weforum.org

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Gloria Macapagal Arroyo, President of the Philippines, at the World Economic Forum's East Asia
Economic Summit 2001, held in the Hong Kong Special Administrative Region.

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The regional agenda

Addressing
crucial local
issues

Our regional agenda focuses on high priority issues Taking a long-term view of Japanese recovery, in
relevant to local members operating in different the closing weeks of the financial year, the World
regions. In 2001/02, the World Economic Forum Economic Forum began to develop its ‘blueprint
brought together thousands of decision-makers to for Japan’. Young Japanese leaders from the
address the most crucial regional issues of today. business, government and academic arenas were
asked to identify and define how to surmount the
Asia Pacific and China country’s ten biggest challenges in the years up to
China continued to develop its economic base 2020. Their plan will be delivered to the Annual
during the course of 2001/02. However, difficulties Meeting 2003 in Davos.
remained in the Japanese economy and
throughout the region there was an over-reliance At the India Economic Summit a council of chief
on the US and other western markets. executives from both India and abroad was
created. The India Advisory Council will advise
The World Economic Forum recognized the need the World Economic Forum on strategies for
to ensure the entire region benefited from China’s building confidence, increasing investment and
growing strength. It was uniquely positioned to delivering prosperity in the subcontinent. (See
bring together 600 leaders to address issues www.weforum.org/india)
surrounding market development at the China
Business Summit 2002 in Beijing. (For more
information visit www.weforum.org/china) “It is not the case that most people wish to reverse

globalization. It is that they aspire to a different and better
The World Economic Forum also acted to maintain
the momentum in the Chinese economy with the kind than we have today.”
launch of the New Chinese Economic Leaders
programme. It will support a new generation of Kofi Annan, Secretary-General, United Nations, Annual Meeting 2002
Chinese leaders from all walks of life as they
confront the social and economic challenges ahead.
The World Economic Forum again brought leaders
together to discuss regional issues at the East Asia
Economic Summit in Hong Kong in October 2001.
Although advances were made, discussion at the
event was inevitably dominated by the impact of the
terrorist attacks of 11 September in New York and
Washington. (For more details see
www.weforum.org/eastasia) www.weforum.org

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The regional agenda

Africa and the Middle East North America
In Africa, the World Economic Forum was instrumental In North America, the war on terror and corporate
in winning business trust in the New Partnership for accounting scandals exacerbated an already
Africa’s Development (NEPAD). The partnership aims sluggish economy. Despite this, the World
to eradicate poverty and achieve sustainable growth Economic Forum helped to inspire new moves by
but, as business felt it had not been consulted about the US government to relieve the plight of some of
its creation by African governments, it was largely the world’s poorest people. The World Economic
sceptical about its prospects for success. Forum’s unique role in bringing people together from
different walks of life was highlighted when Irish rock
The World Economic Forum provided a platform for the star Bono met US Treasury Secretary Paul O’Neill at
region’s leaders to overcome this scepticism and win the Annual Meeting in New York. There, they
private sector support, both at the Annual Meeting in discussed the possibility of writing off debts incurred
New York and at the Africa Economic Summit in by some of the world’s poorest countries.
Durban, South Africa. More than 200 African and
multinational companies signed a declaration Following this meeting Bono and O’Neill went on a
committing their businesses to supporting the NEPAD. tour of Africa, including Ghana, Uganda, South Africa
(For more information see www.weforum.org/africa) and Ethiopia, where they met doctors, farmers,
teachers, students and entrepreneurs. The tour
“There is no way that Africa can benefit from marked a step forward for the continent. Since their
return, the US administration has put forward initiatives
globalization without industrialization. Can globalization designed to address the AIDS epidemic and the
continent’s weak education infrastructure, which has
deliver?…Only if there is cooperation between North and suffered neglect in countries crippled by debt.

South and rich and poor.” In May, leaders from around the world discussed
Benjamin William Mkapa, President of Tanzania, Annual Meeting 2002 prospects for the American economy at the USA
Meeting 2002 in Washington. Following 11 September,
they also focused on likely scenarios around the
In the Middle East, economic stability was threatened economic and social impacts of terrorism.
by tensions with Israel. The World Economic Forum’s (See www.weforum.org/usa)
Annual Meeting 2002 provided an opportunity for
Israeli and Palestinian business leaders to hold private Latin America
meetings. They made a joint statement pledging to Economic turmoil in Latin America, particularly
seek closer relations. The statement was co-delivered in Argentina, continued to hinder growth and social
by Dan Gillerman, the Israeli ambassador to the United equality. In response, the World Economic Forum
Nations, and Walid Najjab, a board member of the sought to harness the private sector behind
Palestinian Electricity Company. economic and social reforms as a step to
future growth.
Following this statement, as a gesture of goodwill,
Israeli business played an important role in The Annual Meeting 2002 provided an opportunity for
persuading its country’s customs authority to political and business leaders to discuss ways of
release a shipment belonging to Palestine Cellular solving the crisis in Argentina. They focused on political
Communications Limited. institutions, competitiveness, foreign trade and financial
systems. Working with the new Argentinian
In the Arab world, promising young leaders have often government they made key recommendations for
found it difficult to come to the forefront on the change. Latin American business leaders held a follow-
international stage. At the Annual Meeting 2002, the up meeting in Washington to further address the main
Young Arab Leaders community was launched. The issues affecting the region.
aim of the initiative is to identify young people from the
Arab world that are poised to assume key positions in
areas such as business, academia and politics.

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Europe a volatile and unpredictable region. It became
In Europe, there were signs of increasing viewed by some authorities as a possible breeding
scepticism about European integration and the ground for extremists.
perceived gulf between the European Union’s
institutions and its citizens. At the Eurasia Economic Summit 2002 in Almaty,
Kazakhstan, 500 business people, politicians,
To help address this discontent and look forward to academics and media representatives from across the
the future, the World Economic Forum launched with region were brought together to discuss how to
Monday Morning the Bridging Europe initiative. This ‘sustain growth in uncertain times.’ (For more
was a catalyst for online dialogue between 1,000 information visit www.weforum.org/eurasia)
younger Europeans and some of the EU’s key
politicians and business leaders. (For further As poor corporate governance practices continue
information visit www.weforum.org/europe) to dog the Russian economy, the World Economic
Forum drafted a corporate code of conduct
Russia and Central Asia designed specifically for the local environment.
Central Asia, politically and economically significant The issue was progressed at both the Russia Meeting
as the holder of important oil resources, remained in Moscow 2001 and at the Annual Meeting 2002.

Bridging Europe
The Bridging Europe initiative demonstrated the me, the most eye-opening aspect of the event was
World Economic Forum’s commitment to building the participation of those countries who are
communities of current and future leaders who currently applying to join
share our mission. the EU. They made
me realize how western
The initiative was designed to tackle political my views are and
indifference and the perceived gulf between the forced me to
European Union’s institutions and its citizens. It re-evaluate them.”
united 1,000 young people, from 33 countries, in
an online dialogue with leaders from European Giampiero Alhadeff,
politics, business, non-governmental organizations Secretary-General of
and academia. Solidar, an international
alliance of NGOs, said:
Young people discuss the way to a better Europe,
The initiative was run in partnership with the “There is much talk of a
as part of the Bridging Europe initiative
Danish think-tank Monday Morning. Following the democratic deficit
nine-week dialogue, the young people travelled to separating the European Union from its citizens.
Denmark for the Youth 2002 meeting. At this The unsurprising thing about the 1,000 young
event, they presented a draft proposal for a new people involved in this project is how committed
European constitution to Danish Prime Minister they are to a Europe that is dedicated to human
Anders Fogh Rasmussen and Valéry Giscard rights, tolerance and social inclusiveness. For them,
d’Estaing, President of the Convention on the there is no contradiction between an economically
Future of Europe. strong Europe and one that stands up for social
justice at home and abroad.”
British youth delegate Zoë Waterman said: “The
two weeks in Denmark were a huge learning (For more information about Bridging Europe see
experience for all involved, as well as a lot of fun www.weforum.org/bridgingeurope)
and the foundation of many firm friendships. For
www.weforum.org

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The Global Health Initiative is fostering greater private sector engagement in the fight against
HIV/AIDS, TB and malaria. It is driven by a partnership of the World Economic Forum, WHO
and UNAIDS.

Photo credit: UNAIDS/G. Pirozzi

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Task forces and initiatives

Furthering
our mission

The World Economic Forum’s global, multi-sector In 2001/2002, the programme produced the
membership provides a unique platform for the following reports:
discussion, coordination and development of • The Global Information Technology Report
practical projects dedicated to improving the state 2001-2002: Readiness for the Networked World
of the world. The World Economic Forum has • The European Competitiveness and Transition
established a number of task forces whose Report 2001-2002
initiatives form an integral part of this mission. • Environmental Performance Measurement:
(See www.weforum.org/initiatives) The Global Report 2001-2002
• The Latin American Competitiveness Report
Global Competitiveness Programme 2001-2002
The World Economic Forum’s Global
Competitiveness Programme expanded during “The gap in health outcomes is growing dramatically… AIDS
2001/02, with the introduction of workshops to
complement its expert reports. and TB are really phenomena of the poor world: when I say

The Global Competitiveness Programme aims to poor world, of course, I mean the majority of the world.”
act as a catalyst for economic policy change, by Bill Gates, Chairman and Chief Software Architect,
assisting governments in identifying impediments
Microsoft Corporation, Annual Meeting 2002
to growth and in designing strategies to achieve
sustained economic progress. One recent
collaboration has been with Colombia, whose In addition, the World Economic Forum held a
economic reform programme is based on the World range of regional and global workshops where
Economic Forum's competitiveness approach. leaders met to discuss issues critical to national
competitiveness. These workshops were
The programme also serves as an integrator supported by presentations around the world to
between members and key policy-makers, national governments keen to strengthen their
contributing to the creation of an economic economies. (For further information see
framework that supports private investment, www.weforum.org/gcp)
entrepreneurship and social progress. Its other
objectives include stimulating public debate on
economic development and global stewardship,
and helping investors develop business strategy by
monitoring and benchmarking national economies.

www.weforum.org

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Task forces and initiatives

Environmental Sustainability Index The digital divide is about more than just direct access
The Environmental Sustainability Index is to technology. It also concerns a nation’s computer
a measure of overall progress towards literacy and how effectively different countries use IT for
environmental sustainability. social and economic development.

The index was first developed in 2000 by the At the Annual Meeting 2002 in New York, the initiative
World Economic Forum’s Global Leaders for task force launched a CEO Charter for Digital
Tomorrow Environment Task Force, the Yale Center Development. CEO signatories agreed to try to target
for Environmental Law and Policy, and the Columbia at least 20% of their annual corporate citizenship
University Center for International Earth Science and/or philanthropy budgets towards concrete and
Information Network. sustainable actions to promote social, economic and
educational progress in developing countries and
It takes account of both a country’s existing disadvantaged communities, through information and
environmental capabilities and performance and communication technologies.
its future capacity to manage environmental
challenges. The index offers a benchmark for Initial signatories included participants from Taiwan,
national environmental comparison and provides the Egypt, the US, Jordan, the Philippines, South Africa,
critical information required for environmental Malaysia, the United Arab Emirates, the Russian
decision-making. Federation, Switzerland, Spain and France.

“Today, if you try to ‘greenwash’ as a multinational In 2001/02, the task force carried out an international
survey and evaluation of digital divide-related projects.
corporation, you will wake up sorry one morning.” It also forged partnerships between digital divide teams
and the wider World Economic Forum, to share
Björn Stigson, President, World Business Council for Sustainable
knowledge about successful projects.
Development, Annual Meeting 2002

This activity helped match companies seeking to
This year, the index’s scope was broadened. An invest in education-related activities with projects
increase in the number of ranked countries from 122 requiring support. During 2001, World Economic
to 142 made it more comprehensive; the crucial Forum strategic partnerships helped the following
measure of greenhouse gas emissions was projects to improve their education-related
emphasized, and measuring techniques were activities: the Committee for Democracy in
improved with the introduction of new data sets and Information (Brazil), Educar Chile (Chile), ITrain
advanced data importing methods. (Canada), and US-based Schools Online, World
Computer Exchange and World Links.
A pilot Environmental Performance Index was also
launched. This ranks countries more precisely by There were several other key outcomes. For
using specific environmental criteria and by indicating instance, a joint Southern African Development
improvement rates. Community/World Economic Forum workshop
helped to share perspectives on e-readiness. In
In the 2002 index, Finland was ranked first for another example, in regional pilot studies in South
environmental sustainability. This followed its success Africa and Brazil, local teaching bodies and
in minimizing air and water pollution, its management government groups worked with global IT
of environmental problems and its low levels of companies to develop IT education.
greenhouse gas emissions. (For further information
visit www.weforum.org/esi) The initiative began in 2000 with a one-year
mandate but was so successful that its remit was
Global Digital Divide Initiative expanded. The task force will now be refocused
The Global Digital Divide Initiative builds partnerships at the Annual Meeting 2003 to assess the social
between the public and private sectors to help less investment required to ensure its continuing
developed countries make use of information and success. (For further information visit
communication technology (ICT). www.weforum.org/digitaldivide)

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Global Health Initiative As a result of these aims, many companies
The Global Health Initiative is designed to foster have strengthened their internal policies and
greater private sector engagement in the global programmes, offering anti-AIDS drugs to workers
battle against HIV/AIDS, tuberculosis (TB) and and their families. This potentially doubles the
malaria. These diseases are regarded as the root number of people in Africa with access to life-saving
causes for the failure of developing countries to medicines. (See www.weforum.org/globalhealth)
increase their economic and social well-being.
Encouraging progress has been made during
The initiative is driven by a partnership between the 2001/02, including:
World Economic Forum's member companies, the • The production of the initiative’s executive
World Health Organization and the Joint United statement. This corporate call to action was
Nations Programme on HIV/AIDS (UNAIDS). signed by 30 companies and was accompanied
by a resource paper comprising the findings and
It has four major strategies: tools developed in 2001
• Promoting the business case to unite global • The World Economic Forum’s participation as a
industry in the fight against HIV/AIDS, TB private sector representative on the Transitional
and malaria Working Group, the design and development
• Developing resources to promote good practice body of the Global Fund to Fight AIDS, TB and
within workforces and communities Malaria. The initiative is now the focal point for
• Identifying resource gaps and corresponding private sector interaction with the Global Fund
partnership/philanthropic opportunities
• Expanding corporate advocacy

Global Digital Divide Initiative
The Jordanian Government intends to introduce This project is an essential part of the Jordanian
information technology as an important component Government’s long-term goal of becoming a global
of both primary and secondary education. To hub of information technology.
achieve this it wishes to equip 3,183 schools with
computer laboratories. Bridging the gap between
those who have information
The World Economic Forum is supporting this and communications
programme through its Global Digital Divide Initiative. technology and those who
Although Jordan has been successful in securing have not is an important
loans for the project, it still needs to equip more than goal of the World Economic
1,000 schools and provide basic computer literacy Forum. This technology can
training for almost 57,000 teachers. enable a better life for
millions by enabling
The World Economic Forum is working with the countries to overcome
independent, non-profit organization World Links barriers to development. Bridging the digital divide
and private sector partners to provide computer
equipment and software for 500 Jordanian The Global Digital Divide Initiative is bringing
schools. World Economic Forum members are also technology to people across the developing
supplying financial resources for teacher training. world, including Brazil, Ghana, Mexico, South
Africa and Vietnam.

www.weforum.org

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Task forces and initiatives

Global Agenda Atelier Increased life expectancy, the impending retirement of
The World Economic Forum launched the Global the baby boom generation and a falling retirement age
Agenda Atelier at its Annual Meeting 2002. The are creating unsustainable pressures on public and
programme aims to help members systematically private pension systems. Although this is a global
anticipate and assess risks or opportunities emerging problem, many countries are approaching the issues of
from political, social and economic trends. ageing and pension reform in an isolated manner.

The programme focuses on global themes such The task force aims to create a cross-country
as re-evaluating leadership, reducing poverty and comparison of policy performance together with a
sharing values. It draws on the insight of global leaders broader discussion about the effect the changes could
to develop an overall understanding of the issues and have on the world economy.
possible solutions. (For more details see
www.weforum.org/atelier) The initiative will bring together leaders from the
financial services and employment industries and other
“If an organization perceives that the CEO and top stakeholders, such as senior citizen groups, labour
unions and international organizations.
management are tweaking things in the company for
Global Governance Initiative
their own comfort...I guarantee you that it will roll The World Economic Forum’s Global Governance
Initiative assesses the efforts of governments, inter-
downhill like a big snowball and everyone will tweak
governmental organizations, and non-state bodies to
things for their own comfort.” address global problems such as poverty, disease and
armed conflict. Its aim is to bring the international
community to greater accountability to the Millennium
Roger Enrico, Chairman and CEO, PepsiCo, Annual Meeting 2002
Summit Declaration’s goals, in particular, on how much
effort and cooperation has been given.
Agricultural Trade Task Force
The task force was established in 2001 to drive The initiative, which was conceived in 2001, will
forward equitable reform of global agricultural trade, produce regular reports that rate these
making a substantial contribution to the alleviation of organizations on their effort and willingness to
poverty in the developing world. engage in partnerships. These will be used to help
stimulate the interest of the media and policy-
During the World Economic Forum's Annual Meeting makers and to put pressure on governments to
2002, the task force of companies and anti-poverty take action and fulfil their promises.
NGOs issued Recommendations for Action on
Trade. This included key guidelines for equitable The Global Corporate Citizenship Initiative
reform of the global agricultural trade system. It also The World Economic Forum believes that business
advocated a move towards a more open and fair trade should be fully recognized as a key part of society and
system through the removal of market-distorting export must act proactively in the global public interest.
subsidies, export credits, direct payments and market
access restrictions. (For further information visit Business is now increasingly realizing that it has a
www.weforum.org/agriculturaltrade) raison d’être in society that extends beyond
behaving responsibly. More and more, companies
Pension System Readiness Initiative are accepting that they must address the global
The Pension System Readiness Initiative aims to issues of our time if they are to remain successful
assess the retirement system readiness of member and sustainable.
countries of the Organization for Economic
Cooperation and Development. In July 2001, the World Economic Forum launched the
Global Corporate Citizenship Initiative: in 2001/02, it
continued to act as a catalyst for corporate citizenship.

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The Global Corporate Citizenship Initiative aims to The statement includes a practical template for
help business leaders develop systems to integrate leadership, which can be used by CEOs and board
corporate citizenship principles into their business members to translate these principles into practice
strategies. The 30-plus inaugural member within their organizations. In drawing up the statement,
companies came from a diverse range of industries members were assisted by academics and pro-
and regions and included UBS AG, The Coca-Cola corporate citizenship organizations, with the Prince of
Company, McDonald’s Corporation and Phillips-Van Wales International Business Leaders Forum playing a
Heusen Corporation. significant role.

At the Annual Meeting 2002, the initiative’s members The urgent need for global corporate citizenship was
launched a landmark statement: ‘Global Corporate also promoted at the World Economic Forum’s
Citizenship: the Leadership Challenge for CEOs and regional economic summits in Europe and Africa. (See
Boards’. This emphasizes that corporate citizenship www.weforum.org/corporatecitizenship)
is first and foremost about the way companies run
their businesses. Moving beyond philanthropy,
responsible business principles must be integrated
into core business principles and practices.

Disaster Response Network
Earthquakes, famine and other major disasters bring The network was established at the World
misery to many thousands of people every year. Economic Forum’s Annual Meeting 2002 in New
York, after the Gujarat earthquake in India. A
In many situations, humanitarian tragedies are financial strategy was developed, with member
made worse by the fact that aid donated by companies committing to contribute over
business, charities and the public cannot get US$ 100,000 to the launch.
through to those who need it most. The World
Economic Forum’s Disaster Response Network The initial aims are to develop a circle of regional
was launched to make it easier for companies to business leaders who are willing to take action
channel aid and expert help to stricken when disaster strikes, and to create a clearing
communities in the early response phase of house to ensure engineering and transportation
emergencies. It also ensures that corporate company experts reach particular areas of need.
donations are delivered in a coordinated and Its main goals are to develop regional groups in
effective manner to humanitarian organizations. Mexico and India, providing staff training and
creating a knowledge centre for organizations
involved in disaster relief.

The project is also working to overcome legal,
contractual and regulatory hurdles that slow the
progress of relief operations and to ensure training
is available for member company employees willing
to volunteer to help after a disaster. (For further
information visit www.weforum.org/drn)

The aftermath of the Gujarat earthquake, which
www.weforum.org
prompted the launch of the Disaster Response Network

15
The World Economic Forum's Global Competitiveness Report 2001 ranked the comparative
strengths and weaknesses of 75 national economies. It found that Finland had the most
competitive economy.

16
Our members and partners

A business-
centred
forum

The World Economic Forum is a business-centred Centerpulse Ltd, Central Japan Railway Company,
organization, which acts as an interface with all China Hainan Airlines Co. Ltd, Clifford Chance, Club
stakeholders in civil society at large. Our members Méditerranée, Commerce One Inc., Dassault Falcon
and partners represent all sectors and regions of Jet Corp., Depository, Trust & Clearing Corporation
the global community. The World Economic Forum (DTCC), Diageo Plc, Dogus Holding AS, Dongwon
does not make public or private statements in the Securities Co. Ltd, Economic Development Board,
name of its members. EMI Group Plc, eSpeed Inc., Federal-Mogul
Corporation, Fedex Corporation, Ferrovie Dello Stato
Members SpA, Finmeccanica SpA, Flextronics International,
The World Economic Forum’s membership is Google Inc., Government of Andhra Pradesh, Grey
primarily drawn from the world’s 1,000 leading Global Group Inc., Groove Networks Inc., Grupo P.I.
global companies. However, 35% of the Mabe SA de CV, Gulf International Bank BSC (GIB),
membership is reserved for companies from Home Box Office, Human Genome Sciences Inc.,
developing countries and those which are IBS Group, ING Group, Interpublic Group of
corporate or technological trendsetters. Companies Inc., Intertex Holding GmbH, Intier
Automotive Inc, IPP Limited, J.D. Power and
Membership criteria are strict and forward-looking Associates, Jet Airways (India) Pvt Limited, KTB
to ensure that the businesses chosen are Network, Kuala Lumpur Stock Exchange (KLSE),
representative of the evolving global economy and MIH Group, Moody's Corporation, Mori Building
committed to the mission of the World Economic Company Limited, Murugappa Group, National
Forum. Our members represent the top companies Bank of Dubai PJSC, National Investment Council,
within their industry and/or country; play a leading Novolipetsk Metallurgical Combine (NLMK), NTL
role in shaping the future of their industry and/or Inc., Omnicom Group Inc., Oxygen Media Inc., Palm
region; engage in activities with a global dimension; Inc., Panama Canal Authority, Pequot Capital
and enjoy a healthy growth and reputation. Management, Inc., Peregrine Systems Inc., PKN
Orlen SA, Ports Customs & Free Zone Corporation,
During 2001/02 the following companies were Random House, Reader's Digest Association Inc.,
accepted as members of the World Economic Forum: Ripplewood Holdings LLC, RVC-The Greenhouse
Fund, RWE AG, Saudi Arabian General Investment
Akamai Technologies, Alticor Inc., American Express Authority, Seiyo Food Systems, SK Telecom Co.,
Company, AstraZeneca Plc, Avaya Inc., Aviva Plc, Sonangol E.P., Superfos, Sybase Inc., Synopsys
Azizler Holding AS, Banca Nazionale del Lavoro SpA Inc., TDC A/S, Thomas Cook AG, Timken
(BNL), BEA Systems Inc., Becton Dickinson and Company, TSX Group, Vattenfall, VIA Technologies
Company, Böhringer Ingelheim GmbH, Bristol-Myers Inc., Viking Global Investors LP, Vulcan Inc. and
Squibb Company, Cathay Pacific Airways Ltd, Zenith International Bank Ltd. www.weforum.org

17
The business co-chairmen of the Annual Meeting 2002,
clockwise, from top left: Raymond V. Gilmartin,
Chairman, President and CEO, Merck and Co., Niall
Fitzgerald, Chairman, Unilever; Yotaro Kobayashi,
Chairman, Keizai Doyukai, Japan; Roberto Civita,
Chairman and CEO, The Abril Group

Partners Membership Development
Strategic Partners are select member companies Our members are at the heart of the World
who strongly support the World Economic Forum's Economic Forum and include 1,000 of the world's
commitment to improving the state of the world. foremost companies. Members encompass not
They are actively involved in the World Economic only the most global companies in the world, but
Forum’s endeavours at global, regional and also regional market leaders and smaller
industry levels. They contribute their expertise and companies shaping the future of their industries.
resources at the highest level in order to advance
worldwide economic and social progress. The selection criteria for inclusion are quite strict.
Over the past year the World Economic Forum has
not only welcomed almost 100 new companies
“A knowledge-based economy without an open society
into the organization but has also declined to
is impossible…You need the creativity of free people – renew membership for a number of companies
who no longer meet the requisite criteria.
citizens – to run the heart of a productive knowledge-
We are proud to report that, despite economic
based economy.” pressures from a difficult global economy, the
World Economic Forum has maintained its number
Joschka Fischer, German Federal Vice-Chancellor and Minister of Foreign Affairs,
of active members, which underlines its ability to
Annual Meeting 2002
meet their needs and address issues of concern.

As of 30 June 2002, our strategic partners were:

ABB, Accel Partners, Accenture, A.T. Kearney, Audi,
Barco, The Boeing Company, Booz Allen Hamilton,
BP, Cisco Systems, The Coca-Cola Company,
Compaq, Deloitte Touche Tohmatsu, DHL
Worldwide Express, Ernst & Young, General Atlantic
Partners, Goldman Sachs, J. & W. Seligman & Co.,
IBM Corporation, KPMG, Kudelski Group,
McKinsey, Merck & Co. Inc., Merrill Lynch, Microsoft
Corp., Nestlé, Pfizer, PricewaterhouseCoopers,
Reuters, Siemens, Suez, Sun Microsystems, UBS,
Vivendi Universal and Volkswagen.

18
Our communities and constituencies

Engaging
leaders

Communities Industry Governors
Another significant community is the World
A key part of World Economic Forum activity is the Economic Forum's Industry Governors. These are a
creation of distinctive communities of member and group of CEOs selected from influential companies
partner companies, creating smaller, more informal within each of our designated industry groupings.
opportunities for interaction. They engage with the World Economic Forum to
identify, discuss and address issues of primary
The International Business Council importance to their sectors and provide intellectual
The International Business Council (IBC) was stewardship to the Forum's efforts, such as
established by the Foundation Board in 2001/02 to industry-specific initiatives and task forces and
replace the Council of the World Economic Forum. industry-targeted sessions in meetings and events.

The IBC is an interactive community of concerned “We may come from different countries but, at this
and committed business leaders made up of 100
highly respected and influential chief executives. It moment in the world economy, we all speak the same
identifies and addresses globally relevant business
issues and develops practical solutions. It also acts language: the language of change.”
as an advisory body providing intellectual
Vicente Fox, President of Mexico, Annual Meeting 2002
stewardship to the World Economic Forum.

The IBC meets twice a year. It followed its inaugural Each year, during the last two days of the Annual
meeting, at the February Annual Meeting 2002 in Meeting in Davos, each of these groups
New York, with an August meeting in Geneva. assemble for a private, off-the-record discussion
to address non-competitive issues of mutual
IBC members are nominated by a membership importance and interest. Many of the World
committee, based on clear criteria and guidelines, Economic Forum's most impactful initiatives,
with selection based on the qualities of the including the Global Digital Divide Initiative and the
individuals and their companies. Council Disaster Relief Network, stemmed directly from
membership is limited to two three-year teams, these discussions.
other than in very exceptional cases when it is
extended to three three-year terms.

www.weforum.org

19
Our communities and constituencies

A World Economic Forum director (far right), with two
Global Leaders for Tomorrow

Constituencies Forum Fellows
To complement the knowledge of members and The World Economic Forum relies upon a continuously
partners, the World Economic Forum engages a evolving group of about 300 experts and scientists
wide range of individuals and organizations from all from all fields of knowledge. These people are at the
sectors of society, whom it includes in its activities cutting edge of their disciplines and are considered as
as constituents. leaders by their peers. We collaborate closely with this
faculty group to design the programmes of our
Advisory Groups summits and meetings, as well as to develop the
In 2001/02, we created advisory groups to enable various initiatives and task forces we undertake with
other key stakeholders of the global economy to our members and partners.
engage in and help shape the World Economic
Forum's activities. The labour union, non- Global Leaders for Tomorrow
governmental organization, academic and religious The Global Leaders for Tomorrow (GLT) community
leaders’ groups involved are made up of leading represents the new generation of leaders. The GLTs
figures from these segments of global society. They are young but proven leaders from business, politics,
provide advice and input into the development of the arts, the media and civil society with a
the World Economic Forum's meetings, demonstrated commitment to addressing issues
communities and initiatives. beyond their immediate professional interest.

“Financial ratings have become kind of second nature in the The third annual GLT Summit, held in Geneva in
the late summer of 2001, provided an opportunity
business world. We must further explore the idea of social to design the Global Agenda for 2010. In the
Annual Meeting 2002, in New York, GLTs
and environment ratings.”
participated in the Special GLT Private Programme,
François Roussely, President and CEO, Electricité de France during which we held a breakfast with Bill and
Hillary Clinton and a private session with US
These consultative arrangements are a vital part of Secretary of State Colin Powell.
the World Economic Forum's commitment to
providing a non-partisan, multistakeholder platform GLT programmes also form part of the regional
for dialogue and partnership. In addition, to maximize summits. In the last USA Meeting, the GLTs discussed
the relevance of meetings and initiatives for policy- the US role in the Middle East. In the Africa Economic
makers, we consult extensively with leaders from Summit 2002 in Durban there was a joint NGO-GLT
international organizations and governments. discussion on the New Partnership for Africa's
Development (NEPAD).

20
Technology Pioneers Social Entrepreneurs
The Technology Pioneers programme was formed The World Economic Forum is working closely
in 2000 to provide new perspectives on the with the Schwab Foundation for Social
technology horizon. Entrepreneurship, which supports enterprises
founded primarily for the public good.
Each year, the World Economic Forum selects up
to 100 Technology Pioneers, who are chief The Schwab Foundation celebrates individuals
executives of companies that are developing and who identify and apply practical solutions to social
applying the most innovative and transformational problems, by embracing business principles in
technologies. Sixty-nine Technology Pioneers were an innovative and resourceful way. It plays a
selected for the class of 2002, representing distinct but complementary role to the World
companies engaged in cutting-edge work in Economic Forum.
information technology, biotechnology and
renewable energy. Each year, the Schwab Foundation selects a
number of outstanding social entrepreneurs. These
At the Annual Meeting 2002 in New York, individuals are invited to the World Economic
Technology Pioneers participated in a private Forum’s Annual Meeting and its regional summits.
programme designed to explore synergies among These opportunities provide the social
and between different technology sectors. In a entrepreneurs with both credibility and access to
specially designed workshop, Technology potential sources of financial and in-kind support.
Pioneers, along with Governors of the information
technology, health and telecommunications
industries, discussed ways of applying innovative
technology to further economic and social
development in developing countries. At the USA
Meeting 2002, Technology Pioneers met privately
with executives in the technology industry to
discuss how to maintain an environment open to
innovation and entrepreneurial talent in a tough
and cynical economic climate.

Social Entrepreneurship
Javier Hurtado Mercado* has fostered a shift in the company is able to pay its supplier farmers
attitudes in his native Bolivia: transforming 25% more than market rates. Irupana encourages
peasants into empowered micro-entrepreneurs. the farmers to keep part of their harvest, so
improving their family diet.
Hurtado’s company,
Irupana, makes organic By integrating poor communities into the Bolivian
products, such as coffee, agriculture value chain, Irupana is enabling people
honey, marmalade, dried formerly dependent on aid handouts to become
fruit and cereals. self-respecting businesspeople.
The goods are sold
throughout Bolivia and *Hurtado was one of a group of 60 outstanding
are now being individuals appointed in 2001/02 to the Schwab
Javier Hurtado Mercado exported abroad. Foundation for Social Entrepreneurship network.

Irupana buys direct from 1,700 family farms across
Bolivia. By cutting out the middleman and
concentrating on premium-priced organic foods, www.weforum.org

21
Teamwork behind the scenes at the World Economic Forum.

22
Our people

A truly
international
team

The reputation of the World Economic Forum
depends entirely on its values, insight, knowledge Nationality Numbers Age Group Numbers
and people. Its community of highly committed
people provides quality expertise and support to American 17 20 to 24 13
members and constituents. Armenian 1 25 to 29 46
Austrian 2 30 to 34 46
The team at the World Economic Forum is truly Belgian 1 35 to 39 21
international. In the year under review, our people British 5 40 to 44 13
represented 26 nationalities. This range of cultural Canadian 5 45 to 49 10
experience is clearly important for us to be able to Chinese 1 50 to 54 7
support our global members and the participants Colombian 1 55 to 59 8
at our events around the world. Costa Rican 1 60 to 62 5
Danish 1 63 to 65 1
The World Economic Forum is a youthful Dutch 2 65 or older 1
organization with a current average age of 35 Finnish 1
years. That said, we have always believed it French 19
important to balance the fresh thinking that youth German 13
brings with the insights that come from long Irish 1
experience in world affairs. This blend of Italian 2
experience can clearly be seen by a breakdown of Jordanian 1
employee ages for the year under report. Of the Malagasy 1
171 people who work for the World Economic Malaysian 1
Forum, two-thirds are university graduates. Mexican 1
New Zealander 1
The remuneration policy in 2001/02 continued to Norwegian 3
combine the World Economic Forum’s status as a Spanish 3
not-for-profit foundation with the need to attract Swedish 2
the best people. Swiss 84
Thai 1
Forum staff are encouraged to engage in external
social and cultural activities provided there is no Nationalities 26
conflict of interest.

www.weforum.org

23
Our organization

The 2002/03 World Economic Forum Managing Board.
From right, José María Figueres, Klaus Schwab, Frédéric
Sicre, Rick Samans, André Schneider and Michel Ogrizek

The Managing Board José María Figueres
The Managing Board acts as the executive body Managing Director, Aged 48
of the Foundation Board. It ensures activities and Qualifications: Bachelor Degree in Engineering in 1979.
services fulfil the mission of the World Economic Joined the United States Military Academy (USMA) at
Forum and represents it in its dealings with West Point in 1991 followed by MPA, Kennedy School
outside parties. The Managing Board members for the of Public Administration, Harvard University. Positions
2002/03‡ are as follows: held: General Manager, Fibers of Central America,
1980-84. President of the San Cristobal Agroindustrial
Klaus Schwab Group from 1984-87. Minister of Foreign Trade for
President and Founder, Aged 64 Costa Rica, 1987-88, becoming the Minister of
Qualifications: Swiss Federal Institute of Technology Agriculture from 1988-90 and President of Costa Rica
and the Universities of Fribourg and Harvard. Degrees from 1994-98. Joined the World Economic Forum in
include Doctorates in Mechanical Engineering and in 2000 as Managing Director. Additional posts held:
Economics (summa cum laude). Taught business President of the Board of Leadership in Environment
policy since 1969 and has been a Professor at the and Development (LEAD), Member of the Board of
University of Geneva since 1972. Author of several Directors: World Resources Institute (WRI), Stockholm
books, the yearly Global Competitiveness Report Environment Institute (SEI).
(since 1979) and many other publications. Founded
the World Economic Forum in 1971 as a not-for-profit Frédéric Sicre
foundation building it into the foremost global Managing Director, Aged 38
partnership of business, political, intellectual and other Qualifications: BA in Literature, Villanova University,
leaders of society committed to improving the state of Philadelphia, Pennsylvania, USA. Positions held:
the world. Recipient of numerous academic and managing a communication centre within the NATO
national honours for initiatives undertaken in the spirit organization, Germany. Programmer, News
of entrepreneurship in the global public interest and for Reporter for Radio Geneva Information and KTFM
peace and reconciliation efforts in several regions. radio stations, 1982-84. Joined the World
Economic Forum in 1989. In 2000, he became
Managing Director with direct responsibility for the
Centre for Regional Strategies.

24
Rick Samans Michel Ogrizek*
Director, Global Issues, Aged 44 Director, Communications, Aged 55
Qualifications: BA in Economics and French from Tufts Qualifications: Medical Doctor, University of Paris,
University and a Masters in International Affairs from 1974. Positions held: Chief Medical Officer at the
Columbia University. Positions held: Corporate Lending French Ministry of Cooperation from 1975-82.
Officer, Credit Lyonnais USA, New York from 1981-84. Research Associate in the Department of Cultural
Legislative Assistant to a member of the House Anthropology and post-doctoral studies at Berkeley,
Committee on Ways and Means from 1985-88. 1982-83. Medical and Public Affairs Director, Africa
Professional Staff Member and Senior Legislative Region and Medical Director, Canada, at Warner
Assistant to the Chairman, Senate Banking Lambert from 1983-87. Médecins Sans Frontières
Committee; International Affairs Fellow, Council on trainer. From 1987-91, Director, Burson-Marsteller,
Foreign Relations, London and Washington DC from France. President and CEO, Hill & Knowlton, France,
1988-91. Associate Director and Staff Director for the and Head, Eurosciences, from 1991-95. From 1995-
Subcouncil on Capital Allocation, Competitiveness 97, President and CEO for Europe and Board
Policy Council, 1993-96. Economic Policy Adviser to member, Edelman Public Relations Group. Global
the Senate Minority Leader from 1996-99. Special Head of Corporate Relations, Unilever from 1997-
Assistant to the President for International Economic 2000. Global Head, Marketing & Communications and
Policy, USA, 1999-2001. Joined the World Economic Managing Director, UBS Warburg from 2000-02.
Forum in 2001 as Director, Global Issues and as an Joined the World Economic Forum in mid-2002 as
Associate Member of the Managing Board. Director of Communications and as an Associate
Member of the Managing Board.
André Schneider

Director, Resources and Knowledge Management, During the year 2001/02, Donna Redel (Managing
Aged 43 Director) and Charles McLean (Director of
Qualifications: Classical Orchestra Musician; Diploma, Communications) left the Managing Board.
Richard Strauss Konservatorium, Munich. PhD in
Computer Science, University of Geneva. Positions *Joined the Managing Board in mid-2002.
held: the Philharmonic Orchestra of Berlin; the
Staatsheater Kassel; the Symphony Orchestra of the
Radio Saarland; the Lucerne International Festival
Orchestra. Researcher in parallel computers for the
European Community; various positions held with IBM,
including: Product Developer; Consultant and Principal,
IBM Consulting Group; Consultant for various
companies and organizations; Speaker on IT-related
topics. Joined the World Economic Forum in 1998,
appointed Director of Knowledge Management and an
Associate Member of the Managing Board in 2000.

www.weforum.org

25
Our organization

Structured
to meet
stakeholders’
needs

Corporate Governance The Foundation Board members for the year
2002/03* are:
The organizational structure is permanently under • Klaus Schwab, President of the Foundation Board
review in our continuous effort to ensure that we • William I.M. Turner, Chairman and CEO, Exsultate
are responsive to the evolution of the world and Inc., Canada; Vice-Chairman of the Foundation Board
are meeting the needs of our stakeholders. • Josef Ackermann+, Spokesman of the Board, and
Chairman of the Group Executive Committee of
Deutsche Bank AG, Germany; Vice Chairman of the
“If the big economies slow and the big economies get the Foundation Board
• Kurt Alig, Chairman, Arcadia Treuhand AG,
sniffles, the rest of us get pneumonia. There is a need to
Switzerland; Secretary of the Foundation Board
pursue growth with the big guys and the small guys.” • Peter Brabeck-Letmathe+, Vice-Chairman and CEO,
Nestlé SA, Switzerland
Mike Moore, Director-General, World Trade Organization, Annual Meeting 2002 • Lord Carey of Clifton+, Former Archbishop of
Canterbury, United Kingdom
• Flavio Cotti, Former President of Switzerland
The Foundation Board
• Michael S. Dell, Chairman and CEO, Dell Computer
The Foundation Board acts as the guardian of the
Corporation, USA
World Economic Forum's mission, values and brand,
• Niall FitzGerald+, Chairman, Unilever Plc,
inspiring business and public confidence through an
United Kingdom
exemplary standard of governance. This includes:
• Rajat Gupta, Managing Director, Worldwide,
managing the statutes of the World Economic Forum
McKinsey & Company Inc., USA
and its institutions; defining the powers of the
• Nobuyuki Idei, Chairman and CEO, Sony
Committees and of the Managing Board; appointing Corporation, Japan
new members; reviewing fund applications; and
• Caio Koch-Weser, Secretary of State
determining and monitoring the execution of the of Finance, Germany
World Economic Forum’s strategies. • Graça Machel+, Chairperson, Foundation for
Community Development, Mozambique
The Board comprises 15-24 eminent individuals • Henry McKinnell+, Chairman and CEO, Pfizer Inc., USA
from business, politics, academia and civil society, • Heinrich von Pierer, President and CEO,
each serving a three-year term. The membership Siemens AG, Germany
criteria include integrity, global vision, leadership • Peter Sutherland, Chairman of Goldman Sachs
experience and participation in world affairs. International; Chairman of British Petroleum
Company Plc, United Kingdom
• Ernesto Zedillo+, Director, Yale Center for the Study
of Globalization, USA; Former President of Mexico

26
During the year under report, and at the The CGA also manages the World Economic
Foundation Board meeting of 4 November 2002, Forum’s engagement with its constituencies,
the following Foundation Board members retired including the academic and scientific communities,
due to their age or to other reasons: they were business trade bodies, international organizations,
Percy Barnevik, Raymond Barre, Ronnie C. Chan, labour leaders, non-governmental organizations,
Guy Fontanet, Helmut Maucher, Jean-Marie religious leaders, Technology Pioneers and Global
Messier, Ferdinand Piech and Maurice F. Strong. Leaders for Tomorrow.
(See www.weforum.org/globalagendamonitor)
The Foundation Board would like to express their
gratitude to all outgoing members. In particular, The Centre for Global Industries
they would like to give their heartfelt thanks to The Centre for Global Industries (CGI) handles relations
Guy Fontanet, for his wisdom, dedication and with the World Economic Forum’s membership. The
loyalty, and to Raymond Barre and Maurice Strong CGI is divided into five broad industry groupings, to
for the great contribution they have made to the allow the development of expertise and special
development of the World Economic Forum since it relationships with members covering: basic industries,
was first created. communications and technology, consumer goods
and health, financial services and mobility industries.
+ Appointed on 4 November 2002.
The Centre for Regional Strategies
The Committees of the Foundation Board The Centre for Regional Strategies (CRS) provides
The Foundation Board appoints four Committees from members and constituents with a series of
among its members: outcome-oriented summits in markets of major
• The Executive Committee defines the rules of strategic interest. It builds communities of leaders
procedure of the Foundation Board and represents drawn from business, politics, academia, religion,
the World Economic Forum to third parties. media and other areas of civil society who share
• The Audit Committee ensures compliance with all the World Economic Forum’s mission.
financial, accounting and control processes.
• The Evaluation and Remuneration Committee The regional summits allow members and
recommends candidates for positions on the participants to share, face-to-face, information and
Managing Board. insights on key developments and trends of regional
• The Mission Compliance Committee reviews significance. They also give the issues an audience
Forum policies, strategies and activities in light which extends to all stakeholders of global society.
of its mission. CRS works closely with both CGA and CGI, with
the regional summits serving as a platform for the
Practice Structure World Economic Forum’s global initiatives.

In 2001/02 the World Economic Forum organized its Partnerships
work into three integrated practices. The World Economic Forum also seeks partnerships
with like-minded institutions. It has, for example,
The Centre for the Global Agenda NGO consultative status with the Economic and
The Centre for the Global Agenda (CGA) monitors and Social Council of the United Nations and works
analyses global issues to provide content for the World closely with the Prince of Wales International
Economic Forum’s annual, regional, country and Business Leaders Forum and the World Business
industry meetings. It stimulates thinking and dialogue Council for Sustainable Development.
by organizing task forces and other initiatives involving
different regions, intellectual disciplines and
stakeholders in the world economy.

www.weforum.org

27
Participants in the Annual Meeting 2002 were each offered a ‘Davos Companion’. This hand-
held Compaq iPAQ with wireless LAN allowed them to download e-mails, find information
about the programme, book places in sessions and transfer digital images.

28
Our organization

Sharing
knowledge

Information Technology and The World Economic Forum further improved its
Knowledge Management external processes by launching some key projects:
The World Economic Forum’s strength lies in its • The implementation of a new Internet site
ability to coordinate the unique resources of its including a content management tool, knowledge
global membership and multistakeholder navigator and other facilities, to increase
constituencies. It is dedicated to achieving its interaction between members and partners
strategic vision by developing a core of world-class • Twenty distinct initiatives for the Annual Meeting
skills and systems that will support its mission. 2002, including the first-ever wireless
infrastructure to provide participants with event
The World Economic Forum hosts a large number information and late-breaking news. The solution
of virtual communities, which provide extensive combined kiosks and hand-held computers,
information to its partners, members and the helping to keep participants in touch with each
general public. other and the outside world.

In 2001/02, the World Economic Forum
“We have to use technology responsibly for the good
successfully completed a number of initiatives
in support of its information technology and of the entire created order.”
knowledge management needs.
Anglican Archbishop Njongonkulu Ndungane, Archbishop of Cape Town,
These initiatives included: Annual Meeting 2002
• An enhanced technology platform providing
better tools, such as an integrated event
management and constituent relationship system Looking to the future, the World Economic Forum
• A strengthening of the World Economic aims to build on its stable IT platform with further
Forum’s knowledge hub to provide a more enhancements and an improved knowledge
stable IT platform management environment.
• Improved security options to protect internal
data and systems

www.weforum.org

29
Sharing knowledge

Communications Online Access to Information
A Policy of Transparency and Openness The Internet enables us to provide large amounts of
Communication plays an integral part in achieving information to our stakeholders. In November 2001
our mission. The World Economic Forum can only we relaunched our website. This was an immediate
bring a finite number of people together at its success with hits on the site doubling over the
events. Communication enables us to share the previous year’s figures. During the peak period of
insights and expertise of our members with the January 2002 the members’ area of the site
wider global community. averaged 500 visits a day.

The World Economic Forum believes that Dialogue with NGOs
transparency is an essential part of good We continued to build communications bridges with
governance. In view of the importance of our non-governmental organizations and constructive
activities, we must communicate openly and anti-globalization movements. In many cases we
transparently. This is why we share full information share common humanitarian goals with these
about our activities and internal operations with our organizations, despite having different views on
stakeholders through our website and printed how to achieve a significant improvement in the
publications. We also fully integrate media leaders state of the world.
into debates at our summits and meetings.
In 2001/02, the World Economic Forum invited key
Our strategy of developing relationships with the non-governmental organizations to be involved in
mainstream media, as well as the business press, task forces, initiatives and public debates. Sixty
and the openness of our organization contributed global NGOs were represented at the Annual
to largely positive press coverage during the year. Meeting 2002 including Amnesty International,
The Annual Meeting 2002 in New York resulted in WWF, Save the Children, Oxfam, Terre des
particularly constructive editorial. Hommes, Transparency International and Human
Rights Watch.
In 2001/02, we forged several strategic
partnerships with the media. These included
collaborations with Time magazine, with which we
have a dedicated partnership around Technology
Pioneers (see www.weforum.org/techpioneers), and
Newsweek International, for which we provided
theme ideas, contacts and survey data for four
2002 editions. (For further information see
www.weforum.org/media)

30
Our mission and strategic vision
Our values and principles

Our mission Our values and principles
and strategic vision The World Economic Forum’s task is to be a credible,
independent broker, characterized by intellectual integrity,
The World Economic Forum is an independent,
commitment and strong principles.
international organization committed to improving the
state of the world. The World Economic Forum is guided by a set of
core principles:
In aiming to achieve this mission, the World Economic
• The stakeholder concept: Companies should serve all
Forum embraces new challenges by developing initiatives
stakeholders to form a community of destiny.
which support its core principles and values. These are to:
• Cooperation not confrontation: World improvement will
• Provide a collaborative framework for world leaders to
occur through joint effort by:
address global issues
Bonding – defining problems together
• Promote entrepreneurship in the global public interest
Binding – defining joint objectives
• Maintain a non-partisan and independent position
Building – defining joint action
Our Vision • Global entrepreneurship: Creates societal progress.
The World Economic Forum will be a leader in identifying Economic activities should serve the global public interest.
strategic issues and will provide a platform for decision- • Corporate citizenship: Companies must take short and
makers to effect constructive change. long-term social and environmental responsibility.
• Globalization: The need to globalize globalization:
The World Economic Forum facilitates dialogue between
Globalization should be supplemented by political and
corporate, political, intellectual and other leaders on
social measures.
matters of global, regional, corporate and industry
• Global responsibility: Shared values are necessary to
importance. It facilitates discussion, acting as a catalyst
provide a framework for global decision-making.
for the development and coordination of key strategic
• Social entrepreneurship: Global cooperation at the
insights. The World Economic Forum is changing. It is
leadership level has to be supplemented by concrete
evolving from a global event provider to becoming a body
actions on the ground. Social entrepreneurs are a key
that offers a world-class knowledge base and which
driver for societal transformation and progress.
identifies strategic issues.
The World Economic Forum promotes the protection of
Our Value Proposition
the environment and sustainable development, fulfilling a
The World Economic Forum aims to facilitate:
global environmental stewardship role. It respects
• Dialogue between chief executives of world-leading
different cultures, cultivating an environment that values
companies and key stakeholders in global society
diversity and inclusiveness.
• Early identification and definition of issues of
central importance The World Economic Forum strives to be the key builder of
• Focused engagement enabling global change global communities:
The World Economic Forum will play a unique and essential • Those fully integrated into the World Economic Forum,
role in identifying issues on all levels that could affect its such as members
partners, members and global citizens. The World • Those providing advice, such as the constituency
Economic Forum supports its members and partners in advisory groups
major aspects of global effort through multistakeholder • Those who have autonomy but share and support the
collaboration and public/private partnership. Its ability to World Economic Forum’s mission, such as the International
provide a neutral ground for discussion is a fundamental Business Council and the Global Leaders for Tomorrow
component of its vision and mission. As an organization ‘without borders’ at the heart of the
Any initiative proposed must: communities it serves, the World Economic Forum
• Conform with the World Economic Forum’s mission of combines a range of approaches to support its mission,
improving the state of the world such as seconding employees to members to help them
• Act in the interests of its members achieve their goals.
• Address an issue of significant global, regional, corporate The World Economic Forum promotes learning and
or industry importance knowledge through group interaction, shared experience and
• Be unique to the World Economic Forum expertise. It maintains high-level learning communities by:
• Reflect distinctive competencies within the World • Understanding what makes them successful
Economic Forum • Developing and experimenting new technologies that
support virtual interaction and knowledge sharing
• Structuring itself as a best practice learning organization www.weforum.org

31
Our financial
results

The World Economic Forum’s financial policy Auditors
states that membership fees should cover The World Economic Forum’s financial results are
operational costs, that events are funded through audited by PricewaterhouseCoopers who examine
participation fees, and that projects are supported the balance sheet and accounts. The annual
by the income from partnership contracts. report, as well as all institutional documents, are
submitted to the Swiss Federal Government, which
Approximately 5 to 10% of the World Economic acts as the supervisory body of the Foundation.
Forum’s income each year is saved to strengthen
its reserves for new initiatives. This year the surplus
added to Foundation Capital was Sfr. 3,118,445. Total Income 1997-2002
figures in Swiss francs

The World Economic Forum may accept
donations, legacies, grants and other contributions
or subsidies that are consistent with its purpose
of ‘integrating leaders from business, politics,
science 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’.
61,100,642
51,890,452

51,306,002

63,806,052

72,195,453

The World Economic Forum makes no payments to
political personalities, parties or other organizations
and avoids involvement in internal politics.

1997/ 1998/ 1999/ 2000/ 2001/
1998 1999 2000 2001 2002

32
Key figures

Year 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002

Total income* 51,890,452 51,306,002 61,100,642 63,806,052 72,195,453
out of which
members’ fees 18,761,000 20,915,531 22,106,920 23,588,125 24,965,367
participation fees 26,972,981
partnership 18,946,940

Total expenditure 51,047,818 50,380,441 59,416,135 63,556,294 69,077,008
out of which
personnel costs 27,097,659
office costs 10,642,445
activity-related costs 31,336,904

Surplus to be
added to the
Foundation capital 842,633 925,560 1,684,507 249,759 3,118,445

Foundation capital 6,136,481 7,062,041 8,746,549 8,996,308 12,114,753

Total staff
Full time 73 68 81 125 139
out of which are seconded
by Forum members 4
Part time 26 24 22 22 28

In its continued effort to support the Forum strategy, in 2001 the Forum continued to invest particularly
in its human resources, which was reflected in an increase of personnel costs of 14.96%.

* all key figures in Swiss francs
Designed and edited by Wardour Communications

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: contact@weforum.org
www.weforum.org