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Annual Report 2005/06

Designed and edited by Wardour Publishing & Design
Photos: R Kalvar (Magnum); Swiss Image

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The World Economic Forum
is an independent international
organization committed to
improving the state of the
world by engaging leaders in
partnerships to shape global,
regional and industry agendas.
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The Forum’s Global Education Initiative develops public–private partnerships to transform
education through technology

Contents
Executive Chairman’s statement 02
Successes and achievements 06
Strategic endeavours 08
Shaping the global agenda 10
Shaping the regional agenda 14
Shaping the industry agenda 20
Creating knowledge networks 22
Building public-private partnerships 26
Working with our members and partners 30
Engaging our communities and constituencies 33
Our organization 36
The Forum community 38
World Economic Forum USA 41
Our financial results 42
Our mission and values 44
Contents | 01
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Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum

02 | Executive Chairman’s statement
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Executive Chairman’s companies already have a strong presence in their national
and regional markets and are moving into the global arena.
We can now offer them the opportunity to become part of
statement the broader Forum community, bringing with them their
fresh thinking and dynamism and in return receiving the
The World Economic Forum has once again insights of our more established members.
demonstrated that it is an organization uniquely
suited to the challenges of the 21st century. In this context in June, we inaugurated the World
Innovative, dynamic, a catalyst for change – the Economic Forum’s representative office in China. The
Forum has continued to grow and to build on its Beijing-based office is the headquarters of the World
reputation. Always with the needs of our members Economic Forum’s new Global Growth Companies
and partners at the heart of what we do, the last year community. Prior to the inauguration of the office, Chinese
has seen a number of strategic developments that I Premier, Wen Jiabao, received me and the World
believe will continue to drive this organization forward. Economic Forum’s International Business Council at Zhong
Nan Hai. As with the New York office, it considerably
The strong engagement of our members and partners improves our ability to deliver to all of our members and
is fundamental to the ongoing success of the Forum. partners as well as to the new Global Growth Companies.
One of my biggest satisfactions this year was to see
the continued strong development of our Industry A focal point of our year-round activities is our Annual
Partnership, culminating in the establishment of the Meeting in Davos. With more than 2,000 participants from
World Economic Forum USA, our North American affiliate, all walks of life, drawn from 89 countries, under the theme
which will host in New York the global headquarters for ‘The Creative Imperative’, stakeholders worked together
the new Centre for Global Industries. Having achieved in workshops and discussion groups to generate
the ambitious target of 100 Industry Partners, we feel innovative and creative solutions to global challenges.
confident that our target of 300 by 2008 will be met. But what pleased me particularly this year was the record
The greater geographical reach that the New York office level of business engagement with so many CEOs and
provides will help us to deliver more effectively to our Chairmen participating and helping the Forum deliver on
partners – but we will not lose sight of our guiding principle its key initiatives.
that this remains ‘one’ Forum with a strong sense of
shared mission. Davos once again framed the global agenda. And it is
particularly gratifying to see the systematic way that the
I am also proud that we could increase the number of our Forum develops the programme of the Annual Meeting
Strategic Partners by more than 20% this year. The Forum through the year, with many task forces, brainstorming
will work closely with these companies, supporting them sessions and the outcomes of the regional meetings all
as they devise and implement programmes that have a helping to capture what will be the key challenges of the
positive impact on business and society, both regionally year ahead. China and India were identified as one of
and globally. the core challenges and opportunities of 2006 and I was
particularly pleased by the strong participation of both
In view of the new dynamics in the global business business and government leaders from both countries.
landscape, the Forum this year launched a strategic Of particular note, also, was the opening address from
new venture, Global Growth Companies, who will German Chancellor Angela Merkel, who outlined her
be the global industry champions of tomorrow. These vision for reform of her country and of Europe. The open

Executive Chairman’s statement | 03
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dialogue between such leaders and the business leaders action. Notably, in May, we provided the opportunity
who make up our members and partners is one of the for the re-establishment of direct contact between the
aspects that helps to create the ‘spirit of Davos’. Palestinian Presidency and Israeli Government, after a
hiatus of 11 months, at our World Economic Forum on
And the Annual Meeting serves as a catalyst for new the Middle East. It’s unfortunate to see recent setbacks,
initiatives – it’s also a time when we can take stock but this is a long road and the Forum has been engaged
of the many successes and achievements. One of the in helping to find a solution since the beginning of the
most significant this year was the Global Plan Oslo process. We must all redouble our efforts to seek
to Stop Tuberculosis, launched by Nigerian President a just and lasting solution for the problems of the region.
Olusegun Obasanjo, UK Chancellor of the Exchequer
Gordon Brown and Microsoft Chairman Bill Gates. The Throughout the year the Forum continued to develop
project, a coalition of over 400 organizations, aims to its offering as a global thought leader and as a ‘hub’ of
treat 50 million people and prevent 14 million tuberculosis the best minds in the world. We now provide strategic
deaths worldwide over the next ten years. insights into challenges around the world by systematically
examining the main international risks. Our Global Risk
The Annual Meeting fits into a framework of regional Network has identified 51 such risks with the valuable
meetings throughout the year. These Forums work with input of the world’s leading specialists from business,
our members and partners to create regional platforms government, academia and NGOs. The results of our
to assist in dialogue, understanding and, of course, efforts in this field have been documented in our Global
Risk Update. And this year we also launched a Global
Scenario Programme, which has concentrated on the
elaboration of three long-term scenarios for India,
Russia and China. Our strength in research into
competitiveness is already world renowned: our
Global Competitiveness Network draws together
expertise in business and academia to help national
economies improve their competitiveness and strive
towards sustained economic growth. This year we
published the 26th edition of our influential Global
Competitiveness Report.

The Forum has continued to be a catalyst for
public–private partnerships. These partnerships
demonstrate the strong commitment of business to
engage in vital, often life-saving initiatives in areas such
as education, health and water provision. This year, for
example, the Forum’s Global Health Initiative reached
more than four million people with its India Business
Zeng Peiyan, Vice-Premier of the People’s Republic of Alliance to Stop TB, and elsewhere our work with five
China and Professor Klaus Schwab at the opening of of our partner companies on protecting supply chains
the Forum’s Centre for Global Growth Companies in
Beijing in June 2006
against HIV/AIDS is helping 50,000 people, with the
potential to reach more than a million.

04 | Executive Chairman’s statement
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Such activities reflect our strong belief that businesses of Jean-Pierre Rosso as Chairman, the former CEO and
must make a positive contribution to society. The onus Chairman of CNH Global, who joined the Forum’s
on businesses to be good global corporate citizens is managing board.
one that is firmly entrenched in our own ethos and that
of our members and partners. This year’s expansion of our activities and the robust
support of our partners and members increased our
To build links with partners and offer members the income by over 25% to Sfr. 104,766,543. The substantial
best service, the Forum needs the most committed, increase in new projects and in the personnel required
experienced and talented people. To this end, we started to sustain that expansion meant this increase was largely
the Global Leadership Fellows Programme – a three-year countered by costs. We were, however, able to add a
course. Working across a range of projects, the first small surplus to our reserves.
tranche of 47 Fellows joined in September, chosen from
1,800 applicants. A new group has already been This has been another year of innovation, allowing us
selected to start in the coming year. to better deliver for our partners and members, but
always within the clear framework of the Forum’s
The Forum for Young Global Leaders also allows us to mission. I would like to finish by extending my warmest
draw on the talent and vision of a new generation. The thanks to our staff, who are the lifeblood of the Forum
Forum of Young Global Leaders, which was created in and who do incredible work. I would also like to thank
2004 to define and build a better future, is beginning our members and partners, whose commitment and
to demonstrate the sort of leadership we expect from dedication grows stronger year by year. The close
such a group of young, vibrant and capable individuals. involvement of many of them in the production of this
A second round of nominations saw this dynamic group annual report – providing insight and advice – underlines
of individuals, all aged under 40, increase from 240 to the bedrock on which this Forum is built.
415. From 90 different countries, they are working
across a range of programmes and initiatives. Trust is one of the greatest assets that the Forum
possesses. This trust allows us to assemble all
We continued also to work closely with the Schwab the stakeholders of our global society to jointly craft
Foundation for Social Entrepreneurship to promote solutions to global problems in a cooperative spirit
profitable businesses with a public purpose. A with entrepreneurial drive. Once again, I thank you
programme to select the ‘Social Entrepreneur of the for your engagement and commitment to the World
Year’ in 24 countries around the world attracted over Economic Forum.
2,000 candidates. The winners have since become part
of the Schwab Foundation, driving membership to over
100.

This year we reinforced the governance team of the
World Economic Forum. Carlos Ghosn, President
and CEO of Renault and Nissan, and Nandan Nilekani,
CEO of Infosys Technologies, were appointed to the
Foundation Board and bring considerable business
expertise with them. The opening of the Centre for Professor Klaus Schwab
Global Industries in New York heralded the appointment Founder and Executive Chairman

Executive Chairman’s statement | 05
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Successes and
achievements • The Global Education Initiative has benefited
more than 50,000 pupils in 100 schools in Jordan.
The partnership between the Forum’s IT member
The World Economic Forum is committed to improving companies and the government has delivered more
the state of the world by engaging leaders from the than US$ 25 million in direct contributions. This year
public and private sectors and from wider civil society a new programme was launched in Egypt; it will reach
in partnerships to shape global, regional and industry 650,000 students and 70,000 teachers.
agendas. Here are some of the year’s highlights.
• The Global Health Initiative launched a pioneering
www.weforum.org/latestsuccesses project to explore how multinationals can protect
their supply chains against HIV/AIDS. Currently this
project involves five multinationals and reaches around
50,000 people. It could potentially reach more than
Global Agenda 1 million people.
• The Global Plan to Stop Tuberculosis (2006–2015)
was launched by President Olusegun Obasanjo
of Nigeria, UK Chancellor of the Exchequer Gordon
Brown and Microsoft Chairman and Chief Software
Architect Bill Gates at the Annual Meeting 2006.
The plan aims to treat 50 million people and prevent
14 million tuberculosis deaths worldwide over the
next ten years.
• The Council of 100 Leaders: West–Islamic World
Dialogue (C-100) identified and approved six new
projects to improve mutual understanding, using
• The Disaster Resource Network (DRN) sponsored the more than US$ 1 million raised from public and private
deployment of two Medical Action Network emergency sources. The projects include a Muslim Leaders of
teams following the Pakistan earthquake in October; Tomorrow Forum, a religious leaders study exchange,
delivered more than US$ 3 million of high-priority media outreach training and a reconciliation reality
relief; and constructed 400 interim shelters in Jammu television service.
and Kashmir.
• The Council also presented the first C-100 Award
• Following Hurricane Katrina DRN brought emergency at the Annual Meeting 2006 to boxing legend
wireless technology to evacuees. In just two weeks, Muhammad Ali for promoting dialogue and
the team established the networks needed to connect understanding across different segments of
11 towns and 10 relief organizations. society in the Western and Muslim worlds.
• And following the Indonesian earthquake 15 heavily
damaged schools in Yogyakarta will have newly
restored water and sanitation facilities – helping
3,000 students.

06 | Successes and achievements
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Regional Agenda Industry Agenda

• As part of the Forum’s Water Initiative the private • The Partnering Against Corruption Initiative (PACI)
sector is working in Uganda to install 1,000 water now has over 100 signatory companies, representing
‘play’ pumps near public and school buildings. Water a global annual revenue of over US$ 550 billion, and
projects have also been launched in India, Mozambique employing more than 1.5 million people. At the Annual
and South Africa – 70,000 people will be reached as a Meeting 2006, the heads of the main multilateral
result of public-private partnerships working with development banks agreed to work with PACI to
existing municipal water networks. include anti-bribery requirements as part of their
• Member companies of the Forum’s Energy Poverty bidding processes.
Task Force are helping to provide electricity to more • The office of the World Economic Forum USA
than 11,000 households in the Democratic Republic
was opened in New York. It will act as the global
of Congo and Lesotho, through hydro and solar
headquarters of the Centre for Global Industries, which
power and existing grids, at an estimated cost
is responsible for leading the Forum’s industry activities,
of US$ 16 million.
including the Industry Partners Programme. The
• Member companies launched the Business Alliance programme has expanded this year with the addition
Against Chronic Hunger. Working with governments of the aviation, travel and tourism; engineering and
and civil society, the alliance will deliver scalable, construction; and food and beverage industries.
market-based solutions to the persistent problem
of hunger in Kenya. • The Community of Global Growth Companies
was established. Its mission is to enable emerging
• Our Forum of Young Global Leaders forged a multinationals to develop into the next generation of
partnership with Pakistan’s President Pervez Musharraf
global champions and become a major force driving
and tourism companies to tackle the humanitarian
economic development.
crisis caused by the 2005 earthquake in the country.
They aim to restore the tourist infrastructure and boost • The Schwab Foundation for Social Entrepreneurship,
visits to some of the hardest-hit areas. which promotes profitable businesses with a public
purpose, chose 24 national winners of the ‘Social
Entrepreneur of the Year’ award. The winners were chosen
from over 2,000 applicants. The lives of over 650 million
people have been improved by the foundation’s work.

Successes and achievements | 07
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Strategic endeavours Centre for Global Industries
To continue to act as an effective catalyst for
change, the Forum has created a detailed strategic
framework for future development. Within this
framework we have launched a number of significant
projects and expanded others to make sure that we
continue to engage our members and partners and
to effectively deliver our mission and vision.

In March 2006, our affiliate, the World Economic
Forum USA, opened its New York office to house
the new Centre for Global Industries and to act as
the international headquarters of our industry activities.
By the end of June 2006, five sectors of the Centre for
Global Industries had moved from Geneva to New York,
namely: banking, insurance, investors, diversified
financials and healthcare.
With operations spanning New York and Geneva, the
Centre for Global Industries will focus on developing
the Industry Partners Programme, which is aimed at
engaging global companies in the Forum’s activities
at the sector level. Industry Partners are member
companies of the World Economic Forum who strongly
support our commitment to improve the state of the
world. By the close of the 2005/2006 fiscal year, over
100 companies from six industry sectors had joined the
programme, including more than 50 from North America.
www.weforum.org/forumusa

08 | Strategic endeavours
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It’s been my privilege to be associated with the World Economic Forum for over a decade.
When I think about the qualities I have always cherished about it, I am most struck by the
things that should not change year to year – those lasting values that embody an organization’s
character. The character of the Forum that I hope to see a decade from now is exactly what makes it

and social action groups together to address practically the world’s thorniest issues.

unique today: an organization that can bring leaders of the most relevant global companies, nations

An organization’s ‘True North’ is its internal, guiding principles – the ones that hold, even
when times get tough or circumstances change. By recognizing and articulating its principles,
the Forum continues to both reinforce and renew what makes it relevant and unique, and
keeps it independent as it adheres to its mission of setting the global agenda.

ORIT GADIESH
CHAIRMAN, BAIN & COMPANY, USA; MEMBER OF THE FOUNDATION
BOARD OF THE WORLD ECONOMIC FORUM

Global Growth Companies Global Leadership Fellows

In June, business and government leaders and Our members are among the world’s best thinkers and
Forum members gathered in Beijing to celebrate leaders: to support them effectively, our own people have
the inauguration of our China office and the launch to be equally skilled. To ensure that we continue to attract,
of the Community of Global Growth Companies. develop and retain world-class staff, we launched our
Global Leadership Fellows Programme, a three-year
The community’s mission is to enable emerging course that fosters an understanding of how business and
multinationals to develop into the next generation of society operate and to hone top-level leadership skills.
business champions and become a major force driving
economic development. It is a cross-industry community of From 1,700 outstanding applicants, 47 fellows from
companies that have demonstrated the clear potential to over 30 countries, with excellent academic and work
become leaders in the global economy within five years. experience, were selected to participate in the Master’s
programme in Global Leadership. Twenty per cent of their
Membership in the Community of Global Growth time is devoted to course work with the remainder spent
Companies offers an unparalleled means for business working within the Forum. This ‘leading by doing’ approach
leaders to gain a unique understanding of the key means Fellows are core players in all our activities.
developments in industry, society and geopolitics that
will have the greatest impact on their future success. Many of the Forum’s partners – CEOs, leading academics,
They will also benefit significantly from the many multilateral institutions and NGOs – are actively involved
networking opportunities provided by the Forum. in the programme, giving presentations and seminars. In
the spirit of taking leadership for one’s own development,
The Forum’s move into China has been widely supported fellows design their own programme under the guidance
by the Chinese Government. Prior to the inauguration of the dean, Michael Obermayer. Our members will have
ceremony, Professor Klaus Schwab, Executive Chairman, seen Fellows in action – at the Annual Meeting 2006, at
and members of the Forum’s International Business regional events and in our many initiatives.
Council met with Premier Wen Jiabao, who reaffirmed
China's support for this new programme. Following the successful first year, a second tranche of
Fellows has been recruited. The programme will be run
The first annual meeting of the Community of Global on an annual basis, giving us access to a pool of peerless
Growth Companies will be held in China in August 2007. individuals for the coming years.

www.weforum.org/ggc www.weforum.org/glf

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Shaping the As the flagship event of the Forum, the Annual Meeting
represents a year of intense collaboration across all of

global agenda our teams and with our members and partners. ‘The
Creative Imperative’ was the theme for the 2006 event,
enabling leaders to develop fresh and practical responses
to a rapidly changing economic and social environment.
Much of the work carried out by the World Economic This theme was reflected over the five days in Davos, with
Forum during the year is on a worldwide scale. lively workshops, discussions and plenary sessions
Collaborating with our members and partners, new demonstrating innovative and creative thinking.
and existing initiatives and programmes have a
positive impact on the global community, improving Reinforcing the Forum’s nature as a member-driven
society in many ways. It is the World Economic organization, the format for this year’s Annual Meeting
Forum Annual Meeting in Davos each January that again began with a successful ‘town hall’ session. From
frames the global agenda and highlights the a range of possible topics, 600 participants chose the
challenges facing the world in the coming year. five core challenges that would be focused on during the
Meeting. These were: the Emergence of China and India;
the Changing Economic Landscape; New Mindsets and
Annual Meeting Changing Attitudes; Creating Future Jobs; and Regional
The Annual Meeting 2006 brought together 2,340 leaders Identities and Struggles.
from business, politics, academia, non-governmental
organizations, the media, religion and civil society. The top-level business representation was again
complemented by many high-profile leaders from
government and NGOs. The opening address was given
by the German Chancellor Angela Merkel, and other
participants included China’s Vice-Premier Zeng Peiyan,
Pakistan’s President Pervez Musharraf, Queen Rania of
Jordan, UN Secretary General Kofi Annan and former
US President Bill Clinton. All took part in sessions which
ranged in subject matter from leadership in times of
crisis to concerns about climate change.

As always at the Annual Meeting, there were
many highlights. One of these was the signing
of a Memorandum of Understanding (MoU) by
Zhang Xiaoqiang, Vice-Chairman of China’s National
Development and Reform Commission and Professor
Klaus Schwab, Founder and Executive Chairman of the
World Economic Forum. This MoU led to the opening
of the Forum’s headquarters for the Community of
Global Growth Companies in Beijing in June.

Rahul Bajaj, Chairman, Bajaj Auto Ltd India, with a
fellow participant

10 | Shaping the global agenda
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German Chancellor Angela Merkel gave the opening address at the 2006 Annual Meeting in Davos

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As well as having over 240 sessions and workshops Following the major natural disasters of 2005, including
in just five days, the Annual Meeting also provided the hurricanes in the US and the devastating earthquake
platform for numerous announcements around initiatives in Pakistan, the Forum was asked to serve as a major
led by the Forum and its members and partners. Not platform for engaging private sector support for relief
least among these was the launch of the Global Plan efforts. Planning that took place at the Annual Meeting will
to Stop Tuberculosis, by Nigerian President Olusegun lead to the expansion of our Disaster Resource Network,
Obasanjo, the UK Chancellor of the Exchequer Gordon which mobilizes the resources of the international business
Brown and Microsoft Chairman and Chief Software community to rebuild the lives and livelihoods threatened
Architect Bill Gates. This groundbreaking coalition of by natural and man-made disasters.
over 400 organizations aims to treat 50 million people
and prevent 14 million deaths from TB worldwide over Under the leadership of the Forum’s Food and Beverage
the next ten years. company members, private and public sector leaders
developed a business-led action plan to help reduce
The Global Education Initiative, which launches hunger in Africa and discussed it with UN Secretary
collaborative public-private partnerships to improve General Kofi Annan. The group has recommended that
education systems, is already enjoying success in Jordan the Forum serve as a platform for putting this plan into
and Rajasthan. During the Annual Meeting, work was action during 2006.
initiated in Egypt to replicate that success.
Leaders from several Muslim countries came together in
a session on the modernization of Islamic societies, with
all agreeing that these communities must be allowed to
reform from within. “Take the time to understand the
Muslim world, do not try to manipulate us because that
will alienate us even more,” said Queen Rania of Jordan.
“Modernization is not a bad word, it is in the heart of the
Islamic religion,” said Hajim Alhasani, President of the Iraq
National Assembly. They and Pakistan’s President Pervez
Musharraf and Hamid Karzai, President of Afghanistan,
called for a dialogue that would improve the world
for everyone.

The Forum’s Council of 100 Leaders: West-Islamic World
Dialogue Initiative (C-100) launched a new award at this
year's Annual Meeting. The C-100 award will recognize
individuals who make especially noted contributions
towards promoting dialogue and understanding between
the Muslim and Western worlds. This year, the first-ever
award from the C-100 was presented to boxing legend
Muhammad Ali, who has devoted himself to the ideals of
advancing tolerance and cooperation around the world.
Professor Klaus Schwab and Wen Jiabao, Premier He recently opened the US$ 82 million Muhammad Ali
of the People’s Republic of China Center in his home town of Louisville, Kentucky, with the

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International business – particularly in the global energy industries
– depends on good relationships. I find attending the World
Economic Forum’s Annual Meeting a very effective way of making and
maintaining key relationships. This is not just a matter of rubbing
shoulders with celebrities. Business life is a bit too hectic to devote
several days just to that pleasure. But the Davos meeting fully justifies
the space in my diary each year.
As well as learning a great deal from the exchange of ideas in the

plenary sessions, I expect to have around 20 one-to-one meetings with
key contacts. And this is not just with business people and politicians,
but also often with representatives from NGOs. The atmosphere is
generally very constructive and these meetings are very valuable for
developing mutual understanding. To sum up, for me, Davos is
key for building the right relationships.

JEROEN VAN DER VEER
CHIEF EXECUTIVE, ROYAL DUTCH SHELL,
NETHERLANDS

mission to promote respect, hope and understanding from civil society. In addition, a large number of people
among children and adults. travelled to Davos specifically to participate in the event.

‘The Creative Imperative’ was echoed in innovative use This year’s overall theme was ‘Respecting, Crossing and
of technology, which played a vital role at this year’s Shifting Boundaries’. Individual sessions addressed both
Annual Meeting. A central location offered 25 laptop long-standing general concerns and more focused, topical
and desktop-based stations to access the background issues such as human rights. In all cases, the engaged
information specific to sessions. Participants were also discussions between the public and participants of the
offered a portable wireless TabletPC, which allowed them Annual Meeting allowed in-depth conversations.
to access essays covering each session. And with more
than 70% of session seats being reserved electronically Panellists of this year’s Open Forum included Peter
during the week, the Davos community continued to Brabeck-Letmathe, Chairman and CEO of Nestlé,
embrace modern technology. Kenneth Roth, Executive Director of Human Rights Watch,
and Angelina Jolie, the goodwill ambassador of the United
As the Annual Meeting drew to a close, attention was Nations High Commissioner for Refugees (UNHCR).
drawn back to the theme of ‘The Creative Imperative’.
Panellists in the session agreed that the rise of the www.weforum.org/annualmeeting
developing world is changing the balance of power.
This makes it vital that social imbalances are redressed,
said James Wolfensohn, former head of the World Bank.
“If we don’t do that, we will not have a stable planet…
and I think Davos is approaching these questions.”

The ‘Davos cycle’ begins as soon as one meeting
ends. As the 2006 Meeting ended, the Annual Meeting
Programme Team began meeting with our core
communities and exploring how best to integrate the work
of the Forum and its members and partners into the world-
class programme that is the Annual Meeting’s trademark.

Open Forum Davos 2006
The Open Forum, organized in cooperation with
the Federation of Swiss Protestant Churches, runs
simultaneously with the Annual Meeting. It offers a
possibility for an open debate on globalization and its
consequences. This project demonstrates the Forum’s
commitment to engaging the general public in a
constructive dialogue.

Like previous years, the Open Forum at the Annual Pascal Lamy, Director-General, World Trade Organization,
Meeting 2006 attracted over 2,400 people – including a and Robert Portman, US Trade Representative, at ‘A trade
wide range of local people from all walks of life and those compromise, for now?’ session in Davos

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The Egypt Education Initiative –
targeting 650,000 students in

2,000 schools
Egyptian President Hosni Mubarak opened the World Economic Forum on the Middle East in Sharm El Sheikh in May 2006

14 | Shaping the regional agenda
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Shaping the At a time of unprecedented African growth, the Africa
meeting, our 16th on the continent, provided a platform

regional agenda for leaders to discuss the opportunities and challenges
facing the region. It drew leaders from business,
government and civil society from across Africa, including
During 2005/2006, the World Economic Forum President Armando Emilio Guebuza of Mozambique,
facilitated high-level gatherings in China, Russia, President Jakaya M. Kikwete of Tanzania, and President
India, Brazil, Egypt, South Africa and Japan. More Thabo Mbeki of South Africa.
than ever before, key players from business,
government, academia and civil society took part While acknowledging that much work remains to be done in
in frank informal dialogue, defining action plans and Africa, there was a real sense of optimism and an overriding
working out solutions to the most pressing regional view that the continent has emphatically turned the corner.
and cross-regional issues.
During the event, sessions on global competitiveness,
We successfully introduced a number of new features risk and scenarios – most notably on the rising impact of
to our regional activities, and increased the interaction China and India – focused on the challenges ahead. The
between different areas of the Forum as a result. We emphasis moved from highlighting problems to identifying
created positive and well-received links between our solutions, and culminated in an emphatic call to learn from,
regional activities and our Industry Partners Programme. By and do more to sustain, African successes.
including high-level private meetings focusing on industry-
specific issues in a regional context, we set the framework
for our Industry Partners to access valuable national and
regional insights in their industries, sharing best practices
and building relations with their peers.

We also developed a more structured flow between the
Annual Meeting outcomes and the agendas for regional
meetings. One tangible example of this was the ‘Davos
Update’ sessions at the start of each regional meeting,
covering topics such as global competitiveness,
international risks and country scenarios. This enabled
engaged discussions on how these global challenges
and opportunities could affect the regions.

Africa
The sentiments of John Page, Chief Economist for
Africa at the World Bank, that “African solutions to African
problems have to come from African people and African
governments” summed up the buoyant resolve at the
World Economic Forum on Africa, held in Cape Town, HM Queen Rania of the Hashemite Kingdom of Jordan,
Member of the Foundation Board of the World Economic
South Africa, at the end of May.
Forum, with Professor Klaus Schwab

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The meeting generated strong commitments to move The ABC’s annual meeting in Bahrain included an influential
forward in specific areas, including optimizing the business group of ministers holding the crucial economic portfolios
contribution to the fight against pandemics, corruption and, together, they pushed forward the economic reform
and poverty. There were many highlights, including the agenda in the region. In the coming year, the ABC will work
launch of the Investment Climate Facility for Africa, with on five pillars of action: education, investment, trade, media
secured seed funding of US$ 100 million and a strong, and competitiveness.
business-led mandate to improve the continent’s
investment climate. The World Economic Forum on the Middle East took
place in the Egyptian resort of Sharm El Sheikh in May
A national council was also launched in Kenya, under the 2006. It was held under the theme ‘The Promise of a
auspices of the Forum’s Business Alliance Against Chronic New Generation’, reflecting both the challenges and the
Hunger, with eight multinational and domestic companies opportunities presented by the young and growing
providing time and resources. populations in the region. A group of local students,
meeting with members of the Forum of Young Global
A number of future commitments were also made during Leaders, made sure that the discussions reflected the
the meeting. These included a World Economic Forum- real priorities of the region’s youth. The meeting also
initiated public-private partnership to strengthen healthcare allowed the integration of other Forum activities into
systems in Africa, by addressing epidemic and pandemic the Middle East arena, such as Industry Partners,
diseases in particular. The partnership will be implemented Global Growth Companies, Scenarios, the Women
at the Annual Meeting 2007. Leaders Programme and the Council of 100 Leaders:
West-Islamic World Dialogue.
Middle East
A rapidly changing Middle East remained in the headlines In the spirit of ‘The Creative Imperative’ – the theme of
and at the centre of the World Economic Forum’s the Annual Meeting – the WorkSpace was brought to
concerns. Nowhere is the Forum’s role in providing Egypt for its debut in the Middle East. The WorkSpace,
a neutral platform for open dialogue and a venue for one of the highlights of Davos, creates an environment
‘unconventional conversations’ more important than in a where participants can break into smaller groups
region where such dialogue and common understanding and brainstorm concepts. It provided the engine of
is often frustrated by political sensitivities and traditional productivity of the meeting, hosting workshops that
rivalries. Our activities in the region help to promote change generated new ideas, and initiated a number of projects
by supporting those who are advancing reform and building in the areas of innovation, branding, financial services
understanding between decision-makers from different and infrastructure. Dialogue was a recurring theme of the
parts of the world. event, which was characterized by an usually high level
of openness and frankness. It brought together the
The Forum is playing an active role in the changes Palestinian President, Mahmoud Abbas, and the Israeli
sweeping this region. The Arab Business Council (ABC), for Foreign Minister, Tzipi Livni, for the first high-level meeting
example, has established itself as a credible and legitimate of Palestinian and Israeli officials in 11 months, while an
voice of the Arab business community. The ABC’s mission important delegation of political and business leaders from
is to help Arab societies to compete effectively in the global Israel met with their Arab counterparts.
economy and, in the last year, it helped establish national
competitiveness councils in Kuwait and Bahrain, while The Sharm El Sheikh meeting saw the official launch of
Egypt published its third national competitiveness report. the Egypt Education Initiative, which is a partnership

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The World Economic Forum plays a very important role in
providing a platform that brings together an eclectic group of
industry and thought leaders. The Annual Meeting has the best
collection of ‘business thought capital’ in one location and allows for
incisive and stimulating debate on crucial issues.
It provides an opportunity to refresh one’s ideas through many
thought-provoking sessions – ranging from technology initiatives, the

state of the economy, global collaboration and important emerging
social issues. It has helped create an understanding of the imperatives
of leadership in a global context and the challenges of a culturally
diverse work group.
Davos was a great experience for me and is a very effective
platform to connect with the global business fraternity.

AZIM H. PREMJI
CHAIRMAN, WIPRO LIMITED, INDIA

between the Government of Egypt and the Forum’s IT on the continent are beginning to take preventive actions
members community, based on the proven model of the against the impact of the disease. The survey was
Jordan Education Initiative. In its first phase, the Egypt carried out by the Forum’s Global Health Initiative,
Education Initiative will benefit 2,000 schools by providing in partnership with Harvard University, the American
innovative content for curricula, training for teachers and Foundation for AIDS Research and UNAIDS.
students, and IT infrastructure. The initiative is a concrete
example of how the Forum can bring together In India, New Delhi played host to the 21st India
governments and the private sector in productive Economic Summit, where the keynote address was
partnerships to benefit the region. given by Prime Minister Manmohan Singh.

Asia The Forum launched its India Scenario project with
In recognition of the increasing importance of Asia the participation of Montek Aluwahlia, Vice-Chairman
in shaping global and industry agendas, the World of the National Planning Commission. This was the
Economic Forum had a strong presence on the Forum’s first regional scenario project. The first-
continent this year. ever ‘town hall’ on India’s Global Competitiveness
also took place, concluding that improving India’s
In September 2005, we held the 25th China Business competitiveness in the global economy will depend
Summit in Beijing. This saw the start of the negotiation on improving basic infrastructure and reducing waste
process that led to a signed Memorandum of in government spending.
Understanding at the Annual Meeting in Davos and
culminated in the opening of our office in Beijing in June To devise additional recommendations for improving the
2006. This new office is tasked with developing the country’s performance, the Forum and the Confederation
Community of Global Growth Companies. of Indian Industry (CII) commissioned a nationwide survey
by Indian broadcaster NDTV, which polled 1,076 people
The emergence of Chinese companies was a key focus across India to gauge their views on what areas of
of the summit, and a private working group session improvement hold the most promise.
convened to look at the how the Chinese stock market
could be further developed. This discussion took place The India summit also saw new initiatives taking flight.
as part of an ongoing workstream focusing on ‘Nurturing The Forum’s Water Initiative and the CII launched an
the Early Stage Investment Climate’, one of the working alliance of Indian and multinational businesses for the
groups within the Forum’s Financial Services and purpose of improving the availability and quality of water
IT/Telecom Industry Partners programme. for local businesses, communities and the environment.

For the IT/Telecoms sector, this session also concluded a Building on the success of the Jordan Education
programme of private activities between business leaders Initiative, the Forum, the government of Rajasthan, the
and subject experts that explored potential scenarios for CII and the Global e-Schools and Communities Initiative
China’s future over the next 20 years, and in this context, (GeSCI) launched a new initiative aimed at improving
the challenges and opportunities related to senior public education in Rajasthan through an extensive
management talent and intellectual property. programme of public-private cooperation.

The Summit also saw the first-ever survey of the Asian At the Annual Meeting, there was a record level of top
business response to HIV/AIDS, which showed that firms Asian government participation. This year was the first

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History teaches us that the most intractable problems demand
response rooted in collective action. As we face new and more
complex challenges associated with deepening global integration, the
need to mobilize beyond national borders and across public, private and
non-profit sectors has become an inescapable priority.
The World Economic Forum is emblematic of this kind of partnership-

working. It brings together the right people, in the right setting, with
the right mindset to deliver results. Through a broad base of activities,
the Forum responds to the most difficult policy problems with practical,
urgent action – in global public health, in education, in economic
development, and in security. I am honored to support the Forum
as it evolves new strategies for collaborative action.

RAJAT K. GUPTA
SENIOR PARTNER, MCKINSEY & COMPANY, USA

time a Chinese state leader – Vice-Premier Zeng Peiyan Chinese growth on the future competitiveness of South-
in 2006 and Executive Vice-Premier Huang Ju in 2005 – East Asia; to increase energy efficiency in major consuming
has come to Davos in consecutive years. It was also the countries and industries; to sustain Japan’s recovery while
first time four Japanese ministers took part, despite cutting its fiscal deficit; and to resolve Japan’s historical and
direct conflict with the winter session of the Japanese territorial disputes with China and Korea.
Diet (the country’s legislature). Other Asian leaders
participating included President Hamid Karzai of The steps that many companies within Asia are making
Afghanistan and President Pervez Musharraf of Pakistan. onto the global stage was reflected by the increase in
Three senior Indian ministers and three chief ministers the Forum’s Asian member companies – rising from
also participated – the largest and most senior delegation 128 to 145. The vast majority of new Asian members are
ever, with all six taking part in the summit’s India Industry Partner calibre and ranked in the Fortune 500.
Everywhere campaign. Other participants from the This year information communications technology company
continent included Korean Foreign Minister Ban Ki-Moon, Lenovo became the first Industry Partner from China, while
one of the candidates to be the next Secretary General of energy company TEPCO became the first from Japan.
the UN, and Haruhiko Kuroda, President of the Asian Indian companies Infosys and Reliance continued in their
Development Bank. valuable role as strategic partners.

A busy year was rounded off in June with the World Europe
Economic Forum on East Asia in Tokyo – the first time we In October 2005, over 300 participants from 25 countries
have ever held a regional meeting in Japan. Organized in joined the World Economic Forum in Russia. The sessions
partnership with Keizai Doyukai (Japan Association of covered two main themes, with the first concentrating on
Corporate Executives) on their 60th anniversary, the the question: ‘How can Russia move from a resource-
event was an outstanding success. The highest-ever based economy to more sector diversification?’
ratio of top-level representatives at a regional meeting Participants engaged in discussions about the role of IT,
participated. This included ten cabinet members including the financial sector, the impact of high energy prices and
the Japanese Prime Minister and the Governor of the opportunities in fast-growing markets, such as the food
Bank of Japan. Prime Minister Junichiro Koizumi hosted industry and retail and consumer markets. Governance and
the opening reception at his residence. rule of law was the other topic, with participants focusing
on what legal and regulatory environment the Russian
Highlights included the signing of five new Japanese private sector needs to prosper. After two days of
member companies. Representatives of the ruling Liberal discussion and interaction, participants agreed on a
Democratic Party established a Davos Dietmembers number of key action points, which were presented to the
Caucus of over 70 Japanese members of parliament, and Russian Minister of Economy. These were: to ‘name and
20 participants met privately with the Forum’s Executive shame’ corrupt officials at all levels; to improve Russia’s
Chairman Klaus Schwab to discuss how Japan should checks and balances system; to increase the rule of law by
raise its international profile, using the Forum as a platform. recognizing property; to support an independent judiciary
and to create a free press; to simplify the visa system; and
The theme for the event was ‘Creating a New Agenda for to identify areas of potential comparative advantages other
Asian Integration’ and a number of priorities for the region than natural resources.
were identified by participants. These were: to create or
assign regional institutions to discuss energy, security and The Annual Meeting in Davos was the key event for our
environmental issues; to address the impact of Indian and European constituents, who made up nearly half of the

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participants. The European agenda of the World Economic partnerships to invest in much-needed infrastructure in
Forum, as in previous years, was strongly represented at rural areas, underdeveloped regions and urban slums.
the Meeting, which was opened by the German Chancellor,
Angela Merkel. North America
The Annual Meeting continues to play an extremely
While most discussions involved the European point of view important role in addressing the North American
– from innovation and creativity to migration and religion – agenda and serves as a crucial event for US and
several sessions focused on intrinsically European Canadian members. In 2006, six US cabinet secretaries
questions such as how to revitalize the continent’s identity and scores of prominent CEOs, were among the North
or how to best leverage the fresh impetus provided by American participants.
the new member states. Other sessions addressed
critical upcoming European issues, including identifying This broad participation contributed to the discussion
the continent’s prime security concerns and how to revive and dialogue on topics ranging from trade and labour
the European Monetary Union and the EU Growth and markets to foreign policy. US Secretary of State
Stability Pact. Condoleezza Rice participated in a teleconference on
the US freedom and democracy agenda and former US
More country-related discussions resulted in clear President Bill Clinton provided a special message in an
commitments to bring together our members and partners interactive dialogue with the Forum’s Executive Chairman
to exclusive follow-up gatherings with their respective Professor Klaus Schwab.
goverrnments in the course of 2006.
www.weforum.org/events

Latin America
The World Economic Forum on Latin America was held
in April 2006 in São Paulo, Brazil, under the general theme
of ‘Building a Stronger Latin America in the Global
Economy’. Over 300 top-level participants from business,
government and civil society – including Brazilian President
Luiz Inácio Lula da Silva – explored how the region can
achieve and sustain high economic growth with equitable
income distribution.

Participants in Davos, São Paulo and around the
world have worked to develop innovative solutions and
approaches and to set priorities for action that would
constitute an agenda for Latin America to enhance its
global competitiveness. Some of these proposals were
included in a list of ten recommendations for social and
economic change that were issued in a communiqué at
the closing session of the Latin America meeting. After
reviewing them, participants voted to focus this year on
education – specifically teacher training and improving Brazilian President Luiz Inácio Lula da Silva at the
World Economic Forum on Latin America in São Paulo in April 2006
the quality of schools – and on employing public-private

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Shaping the IT and Telecommunications partners launched an
in-depth analysis of China through the Forum’s China

industry agenda and the World Scenarios 2025, with a specific focus
on the challenges and opportunities related to intellectual
property and talent. In addition, two cross-industry
The World Economic Forum’s business members projects were launched, focusing on the convergence
and partners became more deeply involved in our between media and IT and the role of technology in
initiatives and programmes this year. By working financial services.
closely with these organizations, we learn what
issues are important to them – and many of our Financial Services partners collaborated with the
new projects flourish as a result. Chinese government with regard to relaxing laws on
the establishment of offshore venture capital-backed
Industry Partners Programme Chinese enterprises.
This year our affiliate, the World Economic Forum USA,
opened the new headquarters for the Centre for Global In the Energy sector, CEOs of Industry Partner
Industries in New York. Central to the activities of this companies and energy ministers convened at a first-ever
new office will be to continue the development of our Energy Summit in Davos 2006. This highly successful
Industry Partners Programme, complementing the event focused on investment in energy security and
already existing industry activities in our Geneva office. simulated a terrorist attack with its effects on energy
markets. Also, CEOs from Energy partners put forward
Industry Partners are select member companies of recommendations shaping the form and content of the
the World Economic Forum who strongly support our G8 and G20 climate framework post-2012.
commitment to improve the state of the world. The
unparalleled convening power of the Forum brings these Engineering and Construction partners helped collaborate
companies together through a series of modules during with the World Bank on anti-corruption practices that
the year. The Industry Partners Programme will provide resulted in including anti-bribery language in bidding
participants with privileged access to industry insights, documents for infrastructure projects financed by
aiding them in their strategic decision-making processes. the World Bank. Meanwhile, Food and Beverage
partners launched ‘Halving Hunger’, an action-oriented
We launched the Industry Partners Programme in 2005, public-private partnership to reduce hunger in Kenya,
in the IT and telecommunications, energy and financial and ‘Working towards Wellness’ which develops best
services industries. This year saw the expansion of the practices on adult health and physical fitness.
programme into engineering and construction; food
and beverage; and aviation, travel and tourism. Already In addition, the ‘Industry Partners in Davos’ programme
100 companies have become Industry Partners and we was launched at the Annual Meeting 2006, providing
remain on target for our goal of 300 companies across Industry Partners with a series of exclusive meetings to
12 sectors by the end of 2008. engage with key decision-makers on critical global issues.

Industry Partners are involved in a broad range of our Technology Pioneers
projects, and this year was an incredibly successful As the world becomes ever more technologically
one for the programme. advanced, it is essential that the Forum harnesses

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The World Economic Forum provides a remarkable opportunity
for business, political and intellectual leaders to discuss the most
important issues facing the global community and to develop solutions
for tough economic and geopolitical challenges. One such challenge is
corruption in the conduct of international commerce, which robs local
populations in under-developed countries of critically needed resources
and curbs economic growth.
Under the auspices of the Forum, Fluor is actively involved in the
Partnering Against Corruption Initiative (PACI). PACI is an extraordinary

the foundation on which businesses operate. I’m proud that real
advances are being made with PACI and at an accelerating pace.
This initiative serves as a great model of how, by working together

endeavor, with different business sectors joining forces to make integrity

through the World Economic Forum, we can make a difference
in our global community.

ALAN L. BOECKMANN
CHAIRMAN AND CEO, FLUOR CORPORATION, USA

the work of innovative companies and utilizes it in an Partnering against corruption
effective manner. As a result, we support and Corporate commitment to action against corruption
highlight the work of between 30 and 50 companies and bribery is growing. As a result, over 100 CEOs of
as Technology Pioneers every year. leading companies have signed the Forum’s Partnering
Against Corruption Initiative (PACI) support statement,
Potential Technology Pioneer companies are identified which calls for a zero-tolerance policy towards bribery
and assessed by an expert selection committee. This and the development of a practical and effective
year, 36 pioneers were selected. These companies implementation programme.
develop and apply the most novel and transformational
technologies in the fields of IT, renewable energy and The PACI made significant strides this year. On World
biotechnology/health. The work that they undertake Anti-Corruption Day, 9 December 2005, the four major
holds the promise of significantly affecting the way anti-corruption initiatives working with the private sector
business and society operate. – PACI, the International Chamber of Commerce,
Transparency International and the UN Global Compact
Pioneers make an invaluable contribution to the Forum’s 10th Principle – agreed to coordinate their efforts to support
initiatives, workstreams, regional activities and to the the business fight against corruption and bribery. The focus
Annual Meeting, and will continue to constitute an is on sharing best practices among signatory companies,
important supportive community for our work. Moving implementation, as well as self-evaluation.
forward, the community will work closely with the
Centre for Global Growth Companies. At the Annual Meeting 2006, PACI and the multilateral
development banks agreed to develop concerted
www.weforum.org/aboutus
anti-bribery requirements from companies seeking contracts
internationally and to work together at regional and country
levels in anti-corruption awareness-raising events.
www.weforum.org/paci

Larry Page, Sergey Brin (Co-Founders and Presidents, Google Inc.) and Sir Richard Branson (Founder and Chairman, Virgin
Group Ltd) at the Google reception in Davos

Shaping the industry agenda | 21
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More than

1,000 sessions
with experts have been
organized this year during
various Forum events for
our members and partners

Dominic Casserley, McKinsey, United Kingdom, speaking at the joint session of the financial services and
IT governors meeting in Davos

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Creating knowledge critical insights to the business community and policy-
makers on competitiveness issues.

networks This year, the report covered a record 117 economies, up
from 104 last year, and presented comprehensive data on
Businesses and governments face a constantly over 100 variables on competitiveness. Sources included
shifting landscape in the drive to realize political, the latest national and international statistics, as well as
industrial and societal change. It is, therefore, essential the results of the Forum’s annual Executive Opinion Survey,
that they have a comprehensive understanding of which captures the views of almost 11,000 business
where they stand in the current economic climate, leaders on their commercial environments.
their strengths and weaknesses, and the risks that
exist now and those they may face in the future. In March 2006, the GCN launched the fifth annual
Global Information Technology Report, which assesses the
The identification and analysis of these factors are the impact of information and communication technology (ICT).
responsibility of the World Economic Forum’s Strategic The report’s Networked Readiness Index (NRI) measures a
Insight Teams, launched in 2004. This year, our Strategic country’s propensity to exploit the opportunities offered
Insight Teams – whose main programmes are global by ICT for development and increased competitiveness
competitiveness, global risk and scenario planning – played and provides an important tool in understanding the
a pivotal role in the Annual Meeting 2006 by designing proliferation of such technology.
the programme. They were also key players in supporting
the growth of the Forum’s Industry and Strategic Partners. The GCN also delivered an additional publication this
year – the Latin America Competitiveness Review – as the
Global Competitiveness Network backbone of content for the World Economic Forum on
This year, the Global Competitiveness Network Latin America in April 2006. This is the latest in a series of
(GCN) became the new face of the former Global regional competitiveness reports, and the second study
Competitiveness Programme. The small but distinct produced on Latin America in the past five years.
change recognized the wide-ranging yet cohesive efforts
that are required in this field to bring about economic While these publications provide a solid foundation to
growth. The network creates a platform for discussion the work of the GCN, they are just part of a much bigger
and debate for the business community, government, picture. In response to an appeal from leading executives
academia, international organizations and civil society by and experts of the Forum’s Travel and Tourism industry
providing invaluable insights into the policies, institutions group, the GCN began work on designing a Travel
and factors affecting national competitiveness. and Tourism Competitiveness Index to capture the
attractiveness of a large number of countries as tourist
One of the GCN’s key tasks is to examine the ability locations. A Travel and Tourism Competitiveness Report
of national economies to achieve sustained economic will be launched in early 2007 and will provide a powerful
growth and long-term prosperity and thereby stimulate tool for industry members to enter into informed dialogue
the necessary strategies to attain these objectives. In with policy-makers, to identify areas for potential reform
September 2005, the 26th edition of its annual flagship in the sector.
publication, The Global Competitiveness Report, was
released. This publication remains the top international The GCN played a major role in a series of private/public
reference for measures of competitiveness, providing sector roundtables. The first such event was held in April

Creating knowledge networks | 23
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My association with the World Economic Forum began in the year 2000. It was the dawn of
a new millennium and both Infosys and India were beginning to reap the benefits of integrating
into the global economy. However, it was our firm belief that the 21st century global company should
benefit society as well as its shareholders. Working with the Forum on public-private partnerships in
addressing today’s social and economic challenges seemed the natural thing to do.
I have always been impressed by the diversity of ideas and clarity of thought expressed at the


Annual Meeting as well as the regional meetings. My involvement with the International Business
Council has given me the opportunity to share action-oriented solutions with visionaries who seek
to make a positive difference.
I was honoured when the Forum invited me to be a member of their Foundation Board in January
2006 and am keen to continue contributing to the fulfilment of the Forum’s objectives in
improving the state of our world.

NANDAN M. NILEKANI
PRESIDENT, CEO AND MANAGING DIRECTOR,
INFOSYS TECHNOLOGIES LTD, INDIA

in Brussels with Viviane Reding, EU Commissioner for asked to contribute, the Global Risk team were involved in
Information Society and Media. Another took place at more than 20 events during the year.
the World Economic Forum on the Middle East in May.
Meanwhile, the Global Risk Update 2005 was used
In 2005–06, the GCN and the Forum’s Arab Business extensively by Forum members and partners as the
Council (ABC) continued efforts to become a catalyst of basis for exploring the changing risk landscape with
the creation of national competitiveness councils in the their own potential external business partners. It also
Middle East. At a Competitiveness Council Workshop, served as a valuable tool in allowing GRN partners to
organized by the Forum’s GCN and Middle East teams in place their business risks in context and to elaborate
June 2005, Bahrain launched its National risk mitigation ideas, a process that will continue through
Competitiveness Council. Jordan, Syria, Qatar, Tunisia further collaboration with the Forum. And, via a
and the United Arab Emirates have expressed interest to partnership with the University of Pennsylvania Wharton
follow suit. The ABC and GCN teams are working on School,
developing the next steps. the GRN sharpened its methodologies of analysing
global risk.
The GCN collaborates with key Forum members and
partners. In 2005/2006, we partnered with FedEx, Gallup The GRN’s work will provide a sound knowledge base
International and Microsoft, as well as external for regional meetings and Industry Partners, as well as
organizations, including the InterAmerican Development deepening the engagement with the academic side of
Bank, Transparency International, USAID and the World the network.
Bank.
www.weforum.org/globalrisks
www.weforum.org/gcn
Scenario Planning
Global Risk Network Since its inception two years ago, the Forum’s Business
In an increasingly complex and interconnected world, Insight/Scenario Planning team has, in collaboration with
risks can no longer be contained within geographical or a global network of experts, launched large-scale
industrial boundaries. The Global Risk Network (GRN) scenario projects on the future of India, China and Russia
was founded by the World Economic Forum in 2004 to within the global context.
advance new thinking on global risks; to generate risk
mitigation measures; and to integrate knowledge on The projects look at the way each country might develop
global risks. in the long term and explore possible challenges, along
This year, the programme moved forward with the with potential outcomes. While providing valuable insights
particular help of several strategic partners. into the potential growth of the countries under review,
the scenarios will also be used to explore future trade
The GRN’s work this year culminated in the release of the and foreign direct investment dynamics in the regional
Global Risk Update 2006 at the Annual Meeting 2006. This meetings of Africa, India and China.
was, however, one part of a larger programme. Throughout
2005, the expanding GRN held risk-specific workshops in The India scenarios – co-developed with the
London, Zurich and New York, bringing together academic Confederation of Indian Industry – were launched both in
and business network members to discuss global risks. India and at our Annual Meeting 2006. They are currently
Including sessions and workshops at the Annual Meeting being used for stakeholder debate within India, thus
2006, regional meetings, and other events to which it was strengthening the regional agenda.

24 | Creating knowledge networks
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The Russia scenarios were at the core of the World Forum Faculties
Economic Forum in Russia and the Energy Industry The activities of the Global Competitiveness Network, the
Partnership in 2005, while the China scenarios were central Global Risk Network and Business Insight/Strategic Planning
to the IT/Telecoms and Energy Industry Partnerships. Both benefit greatly from the support of the Forum Faculty.
were also launched at the Annual Meeting. The scenarios
examine such issues as global integration, geopolitical The faculty is one of our richest sources of intellectual
stability, employment, demographics, infrastructure, capital. Its members include many of the world's most
leadership, administrative reform, political reform and rural distinguished thinkers, experts, scientists, commentators
development. They aim to develop a shared understanding and cultural leaders. Faculty members contribute to the
from which business leaders, policy-makers and other key identification of issues and development of content for
decision-makers can implement strategies beneficial to their regional events and the Annual Meeting; participate in
countries and the world. discussions at our events; and assist in workshops,
Governors Meetings and Industry Partners activities.
The Scenario Planning team also began far-reaching
projects in other areas. These included: an 18-month
examination of the future of the Gulf States within the
regional and global context; the convergence between
the IT, telecoms, and media and entertainment sectors
as part of the Industry Partners Programme, and the
future of technological innovation in financial services.

Discussion during a WorkSpace session in Sharm El Sheikh, Egypt

Creating knowledge networks | 25
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Disaster Resource Network-India provided technical assistance on the project of constructing 400 shelters in the Poonch
District of Jammu and Kashmir (India)

26 | Building public-private partnerships
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Building public- Volkswagen, can work with governments, NGOs
and international organizations to help their small and

private partnerships medium size suppliers establish HIV/AIDS workplace
programmes. The programme has the potential to
reach one million employees in small and medium
As one of the leading advocates of the concept size enterprises.
of good corporate citizenship, the World Economic
Forum has always upheld the conviction that business The GHI provided a platform for and led the launch
has a central role to play in society – a conviction of the Global Plan to Stop TB by 2015 at the Annual
that is shared by our members and partners. Today’s Meeting 2006. This new plan aims to treat 50 million
complex global challenges cannot be solved by one people and prevent 14 million tuberculosis deaths
agency alone. That is why we believe in facilitating worldwide over the next ten years through an alliance
public-private partnerships, so that many necessary of 400 organizations.
advances can be achieved – with stakeholders such
as governments and NGOs working closely with The first of their kind, the international Malaria Workplace
companies to apply the resources and competencies Guidelines were developed and designed by the GHI to
of business for the benefit of all. help businesses in malaria-endemic countries control the
disease in the workplace and the wider community.
The Forum’s Centre for Public-Private Partnership
engages Forum members with governments, international Water Initiative
bodies and civil society organizations in practical initiatives The Forum’s Water Initiative enabled the public and
to drive more effective action or improve public policy the private sectors to work more closely this year. One
on global and regional problems. Such initiatives form an key development was the establishment of an Indian
important part of the Forum’s Industry Partners Programme. Business Alliance on Water with the United States
Agency for International Development, the United
Ongoing initiatives in health, water, education and Nations Development Programme and the
climate change see Forum members making important Confederation of Indian Industry.
contributions, alongside other companies, governments
and NGOs. In 2005/2006, new partnerships were This alliance aims to improve the availability and quality
launched to combat hunger in Africa and improve of water in India. It will act as a platform to launch
private sector cooperation with United Nations a series of water projects in India. The first project,
disaster relief efforts. conceived at the Annual Meeting 2006, is a state-wide
public-private-community partnership on water in
Global Health Initiative Rajasthan. Work is also in progress related to waste
The Global Health Initiative (GHI) built momentum during water reuse, infrastructure development and policy
another strong year by further engaging businesses in dialogue in both India and Southern Africa.
public-private partnerships to fight HIV/AIDS, TB and
malaria, and helping promote important new projects. Global Education Initiative
Education for the next generation of the world’s growing
The launch of a new programme – HIV/AIDS: Going population is an urgent priority for us all. The World
Beyond Big Business – explores how companies, such Economic Forum’s Global Education Initiative (GEI) aims
as our Industry Partners Eskom, Unilever and to utilize the strengths of the private sector, along with

Building public-private partnerships | 27
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government and civil society, to support education reform. Carbon Standards, and a global register of offset projects
Through a sustainable and collaborative approach, new that aim to reduce carbon dioxide emissions.
technologies, especially in information and communication
technology (ICT), have modernized educational systems, Global Governance Initiative
skills development and quality learning. The Global Governance Initiative (GGI) monitors the
efforts of governments, the private sector, international
The Jordan Education Initiative, the Forum’s first public- organizations and civil society towards achieving the
private partnership launched in 2003, has helped 82,000 United Nations Millennium Development Goals on
students and trained over 3,500 teachers in the public international development, security and environmental
education system. In Jordan, 100 discovery schools are protection. The GGI released its third annual report in
now fully networked and connected, with access to January. For the first time since its inception, the report
computer labs. We have applied learnings from Jordan declared the world had improved its efforts in the areas
to other new education initiatives. The Rajasthan Education of peace and security, poverty, hunger, health and
Initiative, for instance, is applying innovative and locally education. This suggests that the focus given to poverty,
appropriate public-private partnership models to improve Africa and development issues by a raft of 2005 events
educational outcomes, while the Egyptian Government, – the G8, high-profile campaigns such as Make Poverty
through the Egyptian Education Initiative, is targeting History and the Live 8 concerts, and new policies in
650,000 students and 70,000 teachers in 2000 schools. major developing countries – had a genuine impact.
Efforts to improve the environment and human rights,
We are now working with our GEI partners to develop a set however, slipped backwards in 2005.
of activities to impact and catalyse education public-private
partnerships on a global level, partnering with key The findings of the report, based on working groups of
education institutions such as UNESCO. internationally renowned experts, were presented to world
leaders at briefings in Washington and Davos and widely
Climate change disseminated through the media. The project has helped
Building on the successful G8 Climate Change Roundtable chart a course for world leaders to improve progress
process at the Annual Meeting 2005, the World Economic toward global commitments over the course of three years.
Forum has been invited by the UK Government to
contribute to a new project on climate change. The G20 Council of 100 Leaders:
‘Gleneagles Dialogue’ was launched in September 2005, West-Islamic World Dialogue (C-100)
and will last up to the G8 Summit under Japan’s During the year, the Forum’s Council of 100 Leaders:
Presidency in 2008. West-Islamic World Dialogue (C-100) – a community
that promotes understanding and cooperation between
This dialogue process will involve a series of meetings to Western countries and countries with predominantly
shape policy recommendations on climate change for the Muslim populations – had a number of successes.
period 2008–2012 and beyond. The Forum is proud to be
part of this important dialogue and to give businesses the The council’s ‘Action Track’ raised US$ 1.2 million
opportunity to add their input to the process. funding for four NGO projects through the generosity of
HRH Prince Al Waleed of Saudi Arabia and our Industry
Engagement in the Gleneagles Dialogue complements our Partner Xenel/Saudi Cable. The C-100 also coordinated
other areas of climate change work, such as our Global with Islamic Relief to give prominence to the
Greenhouse Gas Register, the development of Voluntary Humanitarian Forum for expanding safe charitable giving.

28 | Building public-private partnerships
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Through my interactions with the World Economic Forum, I’ve seen the positive impact
public-private partnership can have on global issues such as education. My parents, who
were both doctors, taught me the importance of a good education, and I truly believe that education
and the internet are the two great equalizers in life. Entire countries are using education and information
technology to lift themselves out of poverty and compete successfully in the global marketplace.
I am extremely proud of Cisco’s involvement in the Forum’s Global Education Initiative and it’s
truly an honour to be part of such a groundbreaking educational model. What began in 2003 as an

educational pilot in Jordan has today become a model that is being replicated in countries like Egypt
and India with the potential to be replicated around the world. This exemplifies what can be achieved
when public, private, and NGO organizations join together to give back, make a difference, and
improve the state of the world.

JOHN T. CHAMBERS
PRESIDENT AND CEO, CISCO SYSTEMS, USA

In addition, it played a key role in raising US$ 1.7 million Disaster Resource Network
from Forum member IBM for the C-100 endorsed The goal when facilitating many of our public-private
Meadan project, which will build technologies to bridge partnerships is for the programme to ultimately be
the divide between the Islamic world and the West. self-sustaining and successfully run itself. The Disaster
Resource Network (DRN) is a perfect example of this.
One particular highlight of the year was the inaugural
C-100 Award, which was launched at the Annual Meeting The DRN is helping companies around the world play
2006. It was presented to boxing legend Muhammad Ali an increasingly important role in international disaster
for promoting dialogue and cooperation. preparedness and response operations. In 2005, the
DRN and corporate partners in engineering, construction,
Information Technology Access for Everyone telecommunications and logistics put their resources to
On the basis that new models of collaboration were work on the ground following the tsunami, the South Asia
required to close the divide between those who have earthquake and Hurricane Katrina.
access to the benefits of technology, and those who
do not, the CEOs of many of the world’s leading In the aftermath of the earthquake, 400 families in
technology companies mandated the establishment Gujarat, India moved into newly constructed transitional
of World Economic Forum’s IT Access for Everyone shelters; more than 3,000 injured people in the Allai
Initiative (ITAFE). Valley received emergency medical care; and thousands
of others benefited from an airlift of US$ 3 million of high-
By surveying over 50 ICT projects in developing and priority relief supplies – medicine, hospital equipment,
emerging countries, ITAFE established that the best blankets, six-person thermal tents, generators and water
solution involved a robust ecosystem of participants, sanitation equipment.
and the right business model for long-term sustainability.
www.weforum.org/initiatives
This involves the collaboration of multiple partners from
the public and private sectors and the local NGO
community in tackling specific individual needs:
education, employment and health.

Partnering with Brazil’s largest education foundation,
Fundação Bradesco, ITAFE piloted a job training and
job search service in a local community in São Paulo.
Through the use of agents carrying handheld devices,
and special centres equipped with computers, individuals
were able to learn certain skills and discover what jobs
were available. This pilot programme is now permanent,
run by Fundação Bradesco.

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529 Member and
Partner companies
involved in public-private
partnerships organized
by the Forum

Peter Brabeck-Letmathe, Chairman and CEO, Nestlé, at the Annual Meeting 2006 in Davos

30 | Working with our members and partners
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As CEO of a company with revenues derived primarily from food packaging, I am acutely aware
that chronic hunger is a daily problem for over 850 million people a year, shortening lifespans and
damaging health, while creating a major barrier to development. I believe that businesses such as ours
have a moral obligation to take action to alleviate chronic hunger. However, this complex problem can
only be solved through partnership between business, government, NGOs and civil society – making a
real, sustainable difference requires a joined-up approach.
The World Economic Forum has provided a platform to create and launch the Business Alliance
Against Chronic Hunger, a multistakeholder group which will work to solve the root causes of hunger,
starting on the ground in Siaya District in Kenya. For me, this initiative clearly demonstrates how

the World Economic Forum, and its Industry Partners, can translate intentions at the highest level
into on-the-ground action.

WILLIAM HICKEY
CEO, SEALED AIR, USA

Working with In 2005/2006, 107 new members were selected
to join the Forum’s growing community. They were:

our members Abdulhadi A. Al Qahtani Sons Group Adveq AFLAC Inc.
Akzo Nobel NV Alghanim Industries Altimo Aluminium Bahrain

and partners American Express Company APEX-Brasil (Trade and Investment
Promotion Agency) Areva Autodesk Inc. Barrick Gold Corporation
Bayer AG Biocon India British Airways Plc British Columbia
Hydro and Power Authority Cambridge Energy Research
The businesses that we work with – across all
Associates Inc. (CERA) Carlson Wagonlit Travel SAS Central Bank
industry sectors and geographical regions – bring of Nigeria Cerberus Capital Management LP China International
a level of expertise that plays a vital role in our Capital Corporation Limited China Mobile Communications
initiatives and programmes. Corporation China Petroleum & Chemical Corporation (Sinopec
Corp.) Compagnie Financière Tradition Daiichi Pharmaceutical
Co. Ltd E*Trade Financial Corp. EFG – Hermes Holding EFG
Members
International EgyptAir Electronic Arts Inc. EMC Corporation
Our members represent the world’s foremost 1,000 Emirates Telecommunications Corporation (Etisalat)
global companies. Characteristics of members include: Energie Baden-Württemberg AG (EnBW) Erste Bank der
• their rank among the top companies within their Oesterreichischen Sparkassen AG Federal-Mogul Corporation
industry and/or country Fonterra Co-operative Group Limited Freescale Semiconductor
Inc. Gilead Sciences Inc. Government of Rajasthan Grupo
• the global dimension of their activities
Omnilife Gucci Group Gulf Finance House Humana Inc.
• their leading role in shaping the future of their industry Huntsman Corporation Hyundai Motor Company IDB Holding
and/or region Corporation Ltd Italcementi SpA JFE Holdings Inc.
KarstadtQuelle AG Kuwait Petroleum Corporation Lagardère SCA
Organizations that apply to become Forum members LANXESS AG Lenovo Group Limited Linklaters Marinopoulos
Brothers Merck KGaA Molson Coors Brewing Company MTV
undergo a rigorous selection process based on strict
Networks Mubadala Development Company Munich Re
rules. On average, our membership committee accepts (Münchener Rück) Nakheel National Health Service (NHS)
just one out of every five applications. Those that are Nigerian National Petroleum Corporation (NNPC) Nile Clothing
chosen to become members are leaders in their sector Company Norsk Hydro Asa OJSC Telecominvest Omnicom
or region and demonstrate creative and innovative Group Inc. Oriental Weavers Group PADICO Pakistan
International Airlines PIA Pantech Group Petrol Ofisi AS PGSI
solutions to some of the world’s most
Limited Phoenix Satellite Television Co. Ltd Playtex Products Inc.
challenging problems. Polska Grupa Farmaceutyczna SA Pomona Capital Port of
Rotterdam PT Bank Mandiri (Persero) PWC Logistics Qatar
As core to all our activities, members exhibit their Financial Centre Quadrangle Group LLC Reliance Energy Ltd
commitment to the mission of the Forum by engaging Royal & SunAlliance Insurance Group Plc Russian Aluminium
(RusAl) JSC Sace SpA Satyam Computer Services Ltd SBS Seoul
at the Annual Meeting and in our various regional
Broadcasting System (SBSi) Schering-Plough Corporation Serco
activities or initiatives and programmes. Be it the sharing Group Plc Shinsei Bank SVB Capital Symantec Corporation
of best practices in the management of HIV/AIDS in the Telenor ASA The Exxel Group The Nigerian Stock Exchange The
workplace, the active contribution on the advisory board St Paul Travelers Companies Inc. TMK Tupperware Brands
of one of our Industry Partners Programmes or the Corporation UBA Group Union Bank of
Nigeria Plc US Trust Corporation Visteon Corporation Warburg
engagement in one of our regional events, the Forum is Pincus LLC Warner Music Group (WMG) Washington Mutual Inc.
in a unique position of being able to provide its members (WaMu) WI Harper Group Inc.
with the platform for the voice of global business.
www.weforum.org/partners

Working with our members and partners | 31
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Strategic Partners The newly formed Partners Advisory Group met twice
The Strategic Partners of the World Economic Forum to provide input into the global agenda. As a group,
are one of the driving forces behind our activities and they are the best representatives of global, multi-sectoral
communities and are actively involved in our endeavours business perspectives and their input generated over
at the global, regional and industry levels. Drawn from the 30 sessions. Their perspectives on the programme
leading corporate global citizens, they provide essential helped ensure that more sessions at the Annual Meeting
leadership in support of the Forum’s mission to improve had practical business value to participants.
the state of the world.
As at 30 June 2006, our Strategic Partners are:
Our Strategic Partners help shape our initiatives, projects
ABB Accel Partners Accenture AMD Apax Partners Audi
and task forces and provide intellectual guidance through Avaya Bain & Company Barclays Bombardier Booz Allen
the participation of their most senior executives in steering Hamilton British Telecom CA Cisco Systems Citigroup
boards and advisory groups as well as through seconding Credit Suisse Deloitte Deutsche Bank Deutsche Post World
dedicated staff to the Forum’s operations. Without their Net Deutsche Telekom Dubai Holding E*Trade Financial Corp.
Economic Development Board of Bahrain Ernst & Young
considerable financial support and in-kind services, the
Fluor Corporation Goldman Sachs Google HP HSBC
Forum would not be able to deliver its programmes and Infosys Technologies Intel Corporation Investcorp JPMorgan
advance worldwide economic and social progress. Chase KPMG Kudelski Group Lehman Brothers Manpower
Marsh & McLennan Companies McKinsey & Company
During the last year, the number of companies involved Merck & Co Merrill Lynch Microsoft Corporation Nakheel
NASDAQ Nestlé New York Stock Exchange Nike PepsiCo
with the World Economic Forum at this level increased
Pfizer PricewaterhouseCoopers Qatar Airways Reliance
from 49 to 60 companies, from virtually every industry Industries Saudi Basic Industries Corporation Siemens
sector. In addition, their individual support and Swiss Re The Coca-Cola Company UBS Volkswagen WPP
engagement in our activities, public-private partnerships Zurich Financial Services.
and communities increased significantly.
www.weforum.org/strategicpartners

As part of their strategic partnership, companies support
the Forum’s industry partnerships and regional summits.
Strategic Partners played an active role in the Forum’s
industry workstreams, meetings and projects.

The new communities of the Forum, such as the Forum for
Young Global Leaders and the Global Growth Companies
programme, each had between two and five Strategic
Partners involved at their early stage of development to
help shape their programmes and activities.

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The World Economic Forum is a great example of how the
public and private sectors can join together to foster creative and
innovative ideas that address some of society's most difficult challenges.
Microsoft is committed to improving affordability and technology access

for underserved populations and helping to create opportunity through
economic development. As a result, we will continue to partner with a
wide range of organizations, including the World Economic Forum. I
strongly believe that these partnerships are essential if we are going to
achieve the high ambitions that the World Economic Forum has
set for addressing critical issues around the world.

BILL GATES
CO-FOUNDER, BILL AND MELINDA GATES
FOUNDATION; CHAIRMAN AND CHIEF SOFTWARE
ARCHITECT, MICROSOFT CORPORATION, USA

Engaging our brainstormed on the theme ‘Innovations 4 the future’,
and continued the work on their task forces to shape

communities and the world in 2020. Significant progress was achieved
on several fronts: for example, to address global climate

constituencies change, a group of YGLs decided to launch a series
of actions to raise awareness among leaders and the
public, engage the private sector in focusing on business
A key driver behind the World Economic Forum’s opportunities and spread best practices to change
activities are the communities of member and consumer behaviour.
partner companies. We have developed specific
capabilities to foster these communities and The voice of the younger generation of leaders was
encourage them to interact. integrated throughout the year’s activities, both at the
Annual Meeting in Davos – where 150 Young Global
The Forum of Young Global Leaders Leaders participated actively across all sessions – and
In its first full year, the Forum of Young Global at our regional events.
Leaders made an immediate impact on a number
of our programmes as well as expanding its community The Schwab Foundation for Social Entrepreneurship
of dynamic and inspiring individuals all aged under The World Economic Forum works closely with the
40. In January, our selection committee, composed of Schwab Foundation for Social Entrepreneurship to
media leaders and chaired by Queen Rania of Jordan, support profitable businesses with a public purpose.
announced the new class of 180 individuals. The Together, the two organizations aim to open up
community now has 415 members from 90 different networking opportunities to visionaries who have a
countries representing all regions and stakeholder groups. driving passion to improve society. The support of the
foundation has allowed high-impact social entrepreneurs
Since their inaugural summit in June 2005, the Young to mobilize millions of dollars of investment and to
Global Leaders have created several task forces in the serve as inspirational role models in their countries
areas they consider will be priority concerns for the and around the world.
world in 2020. One such project is Reinventing Aid,
which studies how international aid needs to be In 2005, the foundation spearheaded an effort with
rethought in order for the world to meet the Millennium media partners in 24 countries worldwide to search and
Development Goals. Other areas of focus include select the ‘Social Entrepreneur of the Year’ in each of
health, education, global governance and security, those nations. The foundation screened over 2,000
and the environment. candidates, with finalists and winners being selected by
national selection committees of business and thought
In addition, in response to an appeal from Young Global leaders in each participating country.
Leaders in Pakistan after the October 2005 earthquake,
a delegation visited the affected areas and set up a task All the winners have since become members of the
force to contribute to the reinvigoration of the tourism foundation. The community today is made up of 100
infrastructure that is critical to economic recovery. leading innovative entrepreneurs, whose initiatives have
the capability to be replicated to resolve similar
At their second Annual Summit, held in Vancouver, challenges elsewhere.
Canada, in June 2006, Young Global Leaders

Engaging our communities and constituencies | 33
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For almost two decades, PricewaterhouseCoopers has been a dedicated supporter of the
World Economic Forum. I have personally been involved with the Forum for many years and
have observed the important difference it makes – in both significant and subtle ways.
On a global scale, the Forum brings together thought leaders to expand the dialogue on, and
seek solutions to, key issues of the day – from global economic growth to critical social problems.
My involvement with the Forum’s International Business Council gives me a deeper understanding
of critical issues facing the leaders of today’s businesses, such as global risks and trade.

Then there are the successful regional, industry and partner events where I, along with others,
have the opportunity to engage in dialogue with political and business leaders and establish valuable
relationships. It is my fervent hope that the Forum will continue to create foundations of understanding
and pathways to future solutions.
I value and appreciate the Forum’s ongoing commitment to improving the state of the world
through thoughtful and intelligent dialogue with world leaders.

SAMUEL A. DIPIAZZA, JR
GLOBAL CEO, PRICEWATERHOUSECOOPERS, USA

The International Business Council on the reception this study received, we are currently
The International Business Council (IBC) is a community working on the second in the series. Through the creation
of 100 highly respected and influential chief executives of a new Gender Gap Network, the Women Leaders
from all industries. As in previous years, the IBC Programme reaches out to appropriate policy-makers to
gathered twice during the last 12 months for peer ensure effective dissemination of, and action around, the
exchanges on global risks which were the cornerstone information revealed by the study rankings.
of the IBC Summer Meeting. Also, just two weeks before
her party won the German election, the IBC met with Civil society organizations
Angela Merkel – now German Chancellor – to discuss Civil society organizations continue to occupy a central
her vision for her country in the context of Europe. position within the Forum’s multistakeholder platform.
Their unique expertise and far-reaching influence in
At the IBC’s Winter Meeting, which took place at a variety of fields make them valuable collaborators
the Annual Meeting 2006 in Davos, the council in a number of our initiatives and programmes.
exchanged views with Zeng Peiyan, Vice-Premier of the
State Council of China, about the country’s new five-year At both the Annual Meeting 2006 and the regional
plan. They continued their trade dialogue during a joint, events, civil society organizations, including non-
private IBC session with some of the key trade deal- governmental organizations (NGOs) and labour leaders,
makers, including: Peter Mandelson, Trade Commissioner played significant roles in defining the global and regional
at the European Commission; Celso Amorim, Minister of agendas. NGOs also continue to provide substantive
Foreign Relations for Brazil; Pascal Lamy, Director-General input and guidance to a number of Forum workstreams
of the World Trade Organization; Robert Portman, US and activities.
Trade Representative; and Mark Vaile, Deputy Prime
Minister and Minister for Trade, Australia. As the new Centre for Public-Private Partnership evolves
and deepens its activities, it is expected that NGOs will
In addition, the IBC members had an opportunity to form an integral part of its framework, helping to shape
meet in private with Chinese Premier Wen Jiabao in specific initiatives in important ways.
Beijing on 13 June prior to the official launch of the
www.weforum.org/aboutus
Community of Global Growth Companies and the
opening of the Forum’s new office in the city.

Women Leaders Programme
Through our Women Leaders Programme, the Forum
is committed to promoting women’s leadership and
the issues affecting women’s lives globally. The proportion
of women participating in the Annual Meeting 2006
increased to 16%.

In 2005, the programme launched its first Gender
Gap study, a new benchmarking tool ranking countries
according to the size of the gulf between the sexes in
critical areas such as political empowerment, health,
educational attainment and economic opportunity. Based

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The work of social entrepreneurs
of the World Economic Forum
has improved the lives of over

650 million people
Yoel Sharon, Israel’s Social Entrepreneur of the Year, co-founded Etgarim to help thousands of people with disabilities and special needs
to participate in adventure sports

Engaging our communities and constituencies | 35
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1 3

2

Our organization In November, the Foundation Board discussed and
approved the Roadmap 2008, which had been prepared
by the Managing Board, outlining the Forum’s strategy
The Managing Board for the next three years. The Foundation Board also
The Managing Board acts as the executive body approved the opening of the Centre for Global Industries
of the Foundation. It ensures that activities fulfil the in New York. In its January 2006 meeting, Carlos Ghosn,
mission of the World Economic Forum and acts as President and CEO of Renault and of Nissan Motor
its representative to outside parties. Company, and Nandan Nilekani, President, CEO and
Managing Director of Infosys Technologies, were
In 2005/2006, the Managing Board consisted of: unanimously elected new members of the board.
Klaus Schwab, Executive Chairman (1)
Ged Davis (5) During the same board meetings, William Turner, who
Michael Obermayer (6) has served as member and Vice-Chairman for many
Jean-Pierre Rosso (7) years, stepped down, having reached the Forum’s
Rick Samans (3) retirement age, and Caio Koch-Weser resigned from
André Schneider (4) the Board, after having left the German Government.
Peter Torreele (2) The Board expressed its great appreciation for their
engagement and friendship.
For more information about the Managing Board, visit
www.weforum.org/leadershipteam On 30 June 2006, the Foundation Board consisted of:
• Klaus Schwab, Executive Chairman
The Foundation Board • Josef Ackermann, Vice-Chairman
The Foundation Board is responsible for inspiring • Henry A. McKinnell, Vice-Chairman
business and public confidence by ensuring an • Kurt Alig, Secretary
exemplary standard of governance. Board members • Peter Brabeck-Letmathe
are individuals with unique leadership experience from • Lord Carey of Clifton
business, politics, academia and civil society. They do • Victor L. L. Chu
not represent any personal or professional interests, • Flavio Cotti
solely those of the Foundation. • Michael S. Dell
• Niall FitzGerald
The Board’s role includes: managing the statutes of • Orit Gadiesh
the World Economic Forum; appointing new members; • Carlos Ghosn
approving and monitoring the execution of Forum • Rajat Gupta
strategies; defining the roles of the Managing Board • Nobuyuki Idei
and committees; approving the annual accounts; and • Maurice Lévy
acting as the Board of Trustees and the guardian • Nandan Nilekani
of the Foundation’s mission, values and brand. • Heinrich von Pierer
• HM Queen Rania of Jordan
Board membership criteria include: integrity, global vision, • Peter Sutherland
leadership experience and engagement in world affairs. • Ernesto Zedillo

36 | Our organization
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4 5 6

7

The Committees of the Foundation Board regional and global trends to understand how they
The Foundation Board appoints four committees from affect an increasingly interconnected world.
among its members:
• The Executive Committee exercises the overall The Centre for Public-Private Partnership – The Centre
strategic management of the Foundation and oversees for Public-Private Partnership was created by the
the Managing Board. World Economic Forum to broaden the application of
• The Audit Committee ensures compliance with public-private partnerships to some of the world’s most
all financial, accounting and control processes. pressing problems. The Centre consolidates all our task
• The Evaluation and Remuneration Committee forces and initiatives and is a comprehensive resource
recommends candidates for positions on the for companies seeking to engage with the public sector
Managing Board, evaluates their performance to tackle global issues.
and determines their remuneration.
• The Mission Compliance Committee reviews Forum The Strategic Insight teams – The Strategic Insight
policies, strategies and activities in light of its mission. teams work with the Forum’s network of communities,
such as business leaders, NGOs and policy-makers,
For more information about the Foundation Board, visit to create relevant strategic insight. The Centre has four
www.weforum.org/foundationboard core teams focusing on scenarios, the global agenda,
economics and competitiveness, and global challenges.
Structure
The Forum’s structure consists of six core departments: Communications – The Communications department
the Centre for Global Industries, Regional Agenda teams, consists of three teams, focusing on the Forum’s
the Centre for Public-Private Partnership, the Strategic website, publications and media relations. The three
Insight teams, Communications, and Events and teams work together to publicize the Forum’s work and
Resources Management. to explain to both members and non-members how we
deliver on our mission.
Centre for Global Industries – The Centre for Global
Industries (Geneva) houses our Swiss-based industry Events and Resources Management – Each year
teams. Together with their counterpart teams from the World Economic Forum brings together thousands
our affiliate, the World Economic Forum USA (see of decision-makers in meetings and regional events
page 41 for detail about its organization), these teams to address the most crucial issues facing mankind.
are responsible for managing relations with global To maintain quality and effectiveness our participants
communities of business leaders drawn from over have come to expect, our experts in event management,
15 industry sectors. They are committed to fostering IT, human resources, accounting, controlling, security,
engagement between Forum members through the operations and general services work closely throughout
Industry Partners Programme. This year’s priorities the year. Their unique knowledge and experience result
include continuing to expand the Industry Partners in the delivery of these high-calibre events.
Programme to include at least eight active industry sectors.

Regional Agenda teams – The Regional Agenda teams
deliver value to actual and potential members via a series
of regional and national meetings. The department has
six regional teams who focus on the most important

Our organization | 37
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The World Economic Forum employs

231 people
from 43 nations

The World Economic Forum staff in front of the Cologny/Geneva headquarters

38 | The Forum community
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The Forum
community
Our people Nationality Nationality
The skills, knowledge and dedication of our people at American 28 Japanese 2
the Forum are essential to fulfilling our mission. This year, Argentinian 1 Kenyan 1
we recruited a number of new people, thus expanding Australian 5 Latvian 1
and reinforcing our skills base to better support our Belgian 3 Lebanese 3
members. Notable among these recruits were the 47 Bolivian 1 Mexican 2
Global Leadership Fellows who contributed to a very Brazilian 2 Moroccan 3
successful first year for our Global Leadership Programme. British 18 New Zealander 1
Canadian 7 Nigerian 1
Our total headcount is now 231, compared to 192 the Chilean 1 Pakistani 2
previous year. Reflecting our diverse, multistakeholder Chinese 4 Polish 3
focus, our people are drawn from 43 countries, and Danish 2 Romanian 2
two-thirds are women. Forum employees remain highly Dutch 8 Russian 3
skilled, with 83% being graduates and 7% holding a Egyptian 1 Singaporean 1
PhD. Their learning and experience are complemented Ethiopian 1 Slovak 1
by their youth, with the median age being 35 years old. Finnish 1 South African 4
French 21 Spanish 4
The Forum was delighted to be one of the first three German 15 Sri Lankan 1
bodies ever to receive a ‘Label for Corporate Social Guatemalan 1 Swedish 5
Responsibility’, from the Swiss social responsibility Hungarian 1 Swiss 51
group ‘Stiftung sozialverantwortliche Wirtschaft’ (SWW: Indian 5 Thai 1
Foundation for a Socially Responsible Economy). The Irish 2 Tunisian 1
prize is awarded to organizations that take their Italian 14 Grand Total 231
responsibility towards employees, customers and the
community seriously. Qualifying criteria include equal
opportunities and family-friendly policies, motivation
and participation, health and accident prevention, and
training and further education.

The Forum community | 39
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Chairman’s Office Jeremy Jurgens, Béatrice Karaouni, Dimitry Leger, Mirjam Kleinheerenbrink,
Klaus Schwab, Executive Laenzlinger, Kate Lau, Emma Loades, Augusto Carine Kulloian, George
Chairman. Claudia Gonzalez, Yu Liu, Giuseppe Lorio, Lopez-Claros, Thierry Kumpera, Dan Lambert, Luis
Fiona Paua, Stéphanie Macha Levinson, Emilio Malleret, Vladimir Merkushev, Landrove, Fabien Limousy,
Nassenstein, Regula Lozoya, Dezhi Ma, Irene Mia, Kathi Milligan, Sophie Lux, Samira Mandil,
Waltenspuel, Maryse Zwick Colette Mathur, Amal Mbarki, Sandrine Perrollaz, Michele Martine Michaud, Annabell
Grant McKibbin, Kazumi Petochi, Marie-France Roger, Molnar, Anouk Pache,
Centre for Global Industries Okura, Satya Rajan, Sushant Sarah Saffar, Jonathan Vimesh Patel, Annemarie
Jean-Pierre Rosso, Rao, Lucien Rieben, Melanie Schmidt, Vidhi Tambiah, Peter, Eddie Quintanella,
Chairman. Stefano Ammirati, Rogers, Karim Sehnaoui, Sheana Tambourgi, Alexander Sarah-Jane Rossoni, Petra
Delphine Angelloz-Nicoud, Benita Sirone, Logan van de Putte, Kristel van der Ruiz, Mehr Ruiz-Faizi, Vincent
Roy Antink, Sandra Bétemps, Stanton, Uschi Trouilhet, Elst, Deming Zhu Schertenleib, Angela
Théa Chiesa, Séverine Currit, Akira Tsuchiya, Marika Scioscia, Christel Sutherland,
Louise Dearnley, Sean Volosin, Carolina Windmeijer, Leadership Paula Verholen
Doherty, Melanie Duval, Li Zhang Micky Obermayer,
Cristiana Falcone, Christoph Managing Director & Dean, Communications & Media
Frei, Nadia Guillot Socquet, Governments and Global Leadership Fellow Relations
Helena Leurent, Coretta Stakeholders, Initiatives Programme. David Heng, Mark Adams, Director,
Magongoa, Yasmina Makar, Rick Samans, Managing Juraj Ondrejkovic Head of Communications.
Marcello Mastioni, Heidi Director. Saman Ahsan, Nina Joyce, Kamal Kimaoui,
Morgan, Simon Mulcahy, Sandra Costa-Marini, Lauren Chief Operating Matthias Lüfkens, Fon
Arseni Panov, Wouter Savrij Johnston,Carina Larsfälten, Officer’s Office, Events and Mathuros, Désirée Mohindra,
Droste, Preeti Sinha, Martha Samuel Mbugua, Christophe Resources Management Tillia Peitrequin, Laurent
Stack, Max von Bismarck, Weber, Saadia Zahidi André Schneider, Managing Sfumat, Fabienne Stassen,
Silvia von Gunten, Alex Wong Director & Chief Operating Samantha Tonkin, Isabelle
Centre for Public-Private Officer. Chantal Adamson, Tornare, Nancy Tranchet,
Partnership Partnership Georges Aeschlimann, Anna Yann Zopf
David Aikman, Director, Rick Samans, Managing Andersson Plusa, Helena
Head of Partnership. Director. Pratik Bhatnagar, Baars, Guy-Serge Baer, Schwab Foundation
Valérie Aillaud, Mireille Francesca Boldrini, François Virginie Bays, Grégory Pamela Hartigan, Managing
Bertolini Cabezas, Chris Bonnici, Elizabeth Dreier, Bernarda, Kuki Bindanda, Director. Maria Hermoso,
Cooper, Susanne Helmsley, Brindusa Fidanza, Emma Monika Boerlin, Nadine Sandor Nagy, Mirjam
Anna Janczak, Jonathan Jupp, David Kim, Randall Bonard, Doris Borchardt, Schoening
Quigley, Elena Smirnova, Krantz, Jason Liu, Shruti Denise Burnet, Sebastian
Jessica Thyssen Mehrotra, Tanya Mounier, Bustos, Nancy Chazal, Young Global Leaders
Alex Mung, Pan Pan, Hala Raymonde Christmann, Nicole Schwab Sanchez,
Regional Agenda teams Shash, Paul Smyke, Antonio Corrales Rodriguez, Director, Head of Young
Peter Torreele, Managing Clementina Todor, Chris Steve Crettenand, Romain Global Leaders. Martina
Director. Haiko Alfeld, Trimble, Dominic Waughray, Crevoisier, Irène Croisier- Gmür, Francesca Martonffy,
Mercedes Aubert, Yemi Valerie Weinzierl Rapin, Oliver Cusworth, Rosanna Mastrogiacomo,
Babington-Ashaye, Thomas Stéphanie Danhier, Laura de Magdalena Thurig
Berglund, Helen Besson, Strategic Insight teams Wolf, Jean-Loup Denereaz,
Søren Bested, Shruti Bhatia, Ged Davis, Managing Laurent Desnoux, Samantha
Els Boekhoudt, Nadia Director. Laura Altinger, Sven Dimeck, Maggie Fliege, Susi
Boulifa, Fabienne Chanavat, Behrendt, Jennifer Blanke, Franceschi, Floriane
Daniel Davies, Yvonne Diallo, Nathalie Cerutti, Margareta Freymond, Yannick Fuentes,
Sherif El Diwany, Diana Drzeniek, Charles Emmerson, Agnès Gabirout, Malte
El-Azar, Anne Catherine Gay Julio Estrada, Jesse Godbersen, Karine Guitton,
Des Combes, Serge Guex, Fahnestock, Ilaria Frau, Elly Hammar, Janet Hill,
Felix Howald, Lee Howell, Thierry Geiger, Paola Hjelt, Nour-Eddine Iguimdrane,
Julianne Jammers, Stéphanie Janet, Alia George Jacovides,

40 | The Forum community
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World Economic
Forum USA
In late 2005, the World Economic Forum formally As from 1 July 2006, the officers and employees
expanded into North America with the creation of its of the World Economic Forum USA Inc. included:
first overseas affiliate, the World Economic Forum Jean-Pierre Rosso, Chairman.
USA Inc. In April 2006, the Forum USA opened its Kevin Steinberg, Chief Operating Officer; Alain Baumann;
New York office to house the new Centre for Global Josh Bell; Giancarlo Bruno; Julian Jaeger; Kerry Jaggi;
Industries and act as the global headquarters for Jane Lence; Viraj Mehta; Michael Seo.
industry-based activities of the Forum and the Forum
USA. By July 2006, five industry sectors of the Centre
for Global Industries have moved from Geneva to
New York: banking, insurance, investors, diversified
financials and healthcare.

With operations spanning New York and Geneva, the
Centre for Global Industries will focus on developing
the Industry Partners programme, which is aimed at
engaging global companies in activities at the industry
level. By the close of the 2005/2006 fiscal year, over
100 companies had formally joined the programme,
including more than 50 from North America.

The Forum USA ia a non-profit corporation formed under
US (Delaware) law, with a separate board of directors
and officers, which is intended to be exempt from US
income tax as a business league under section 501(c)(6)
of the Internal Revenue Code. The Forum USA and the
World Economic Forum are linked by a formal affiliation
agreement and a shared mission to engage leaders in
improving the state of the world.

The Board of the World Economic Forum USA Inc.
comprises:
• Jean-Pierre Rosso (Chairman)
• Alfred Berkeley
• Bill George
• Rajat Gupta
• Joe Schoendorf The World Economic Forum USA celebrated its official
opening by ringing the Nasdaq closing bell
• Kevin Steinberg (Secretary)

World Economic Forum USA | 41
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Our financial results
Our financial results Auditors
In 2005/2006, we achieved strong financial results as The World Economic Forum’s financial results are audited
income from all our initiatives and activities continued by PricewaterhouseCoopers, who examine the balance
to grow. We did not touch our reserve funds during the sheet and accounts. The annual report, as well as all
year, despite investing a significant sum into the launch institutional documents, are submitted to the Swiss
of our Industry Partner Programme and the Global Federal Government, which by law acts as the
Leadership Fellows. Among the most notable revenue supervisory body for the Foundation.
drivers was the growing number of Forum members
choosing to become partners and participating in our
activities. In total, this trend added Sfr. 2,030,965 to our
reserves. This figure was also due to cost efficiencies we
achieved during the year. In finance, as throughout our
organization, we aim for excellence. During the year,
we took steps to make our approach compliant with
US GAAP, pursued best practice across our processes
and improved our internal reporting methods.

Financial policy
The World Economic Forum’s financial policy states that
membership fees in principle 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.

42 | Our financial results
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Year 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006

Total income* 72,195,453 66,454,727 74,058,911 83,336,839 104,766,543
out of which
members’ fees 24,965,367 25,530,325 25,137,257 26,546,382 26,410,294
participation fees 26,972,981 21,465,398 20,543,108 20,824,213 27,063,138
partnership 18,946,940 17,390,452 24,552,385 31,035,927 44,668,943

Total expenditure 69,077,008 66,454,522 72,307,790 82,083,503 102,735,578
out of which
personnel costs 27,097,659 26,584,768 29,620,236 35,723,308 40,035,452
office costs 10,642,445 8,360,352 9,044,738 9,253,213 12,537,175
activity-related costs 31,336,904 31,509,401 33,642,815 37,106,982 42,732,347

Surplus to be added to the
Foundation capital 3,118,445 205 1,751,121 1,253,336 2,030,965

Foundation capital 12,114,753 12,114,958 13,866,079 15,119,415 17,150,380

Total staff
Full time 139 130 134 162 204
out of which seconded
by Forum members 4 4 5 5 7
Part time 28 28 28 31 25

* all key figures in Swiss francs

Our financial results | 43
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Our mission
and values
The World Economic Forum is an independent Our vision for the World Economic Forum is threefold. To be:
international organization committed to improving • The foremost organization which builds and energizes
the state of the world by engaging leaders in leading global communities
partnerships to shape global, regional and • The creative force shaping global, regional and industry
industry agendas. strategies for its communities
• The catalyst of choice for its communities when
Incorporated by Professor Klaus Schwab as a foundation undertaking global initiatives to improve the state
in 1971, and based in Geneva, Switzerland, the World of the world
Economic Forum is impartial and not-for-profit; it is tied
to no political, partisan or national interests. The World Economic Forum enjoys unique global
positioning by recognizing and responding to
Our culture combines the best elements of two developments:
entrepreneurship with those of public service. Thus, our • The world’s key challenges cannot be met by
motto is ‘entrepreneurship in the global public interest’. governments, business or civil society alone.
• In a world characterized by complexity, fragility and
We cultivate public trust by never compromising our ever-greater synchronicity, strategic insights cannot
institutional integrity. We constantly strive to win the be passively acquired. They are best developed
respect of our members and constituents by ensuring through continuous interaction with peers and with
everything we undertake is ‘first in class’. We can serve the most knowledgeable people in the field
our communities best by making ourselves a role model (learning communities).
for a highly interactive, open and fast learning community.
For more information see www.weforum.org
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.

In addition to convening world leaders, the Forum aims
to involve 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.

44 | Our mission and values
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Matthieu Ricard (Co-Director, Shechen Monastery, Nepal) being embraced by Awraham Soetendorp (Rabbi, Jewish Institute for
Human Values, Netherlands), Hany el Banna (President, Islamic Relief, United Kingdom) and Madhi Bray (Executive Director,
Muslim American Society (MAS) Freedom Foundation, USA)
WEF_AR_COVER:WEF_AR_COVER 8.9.2006 16:05 Page 1

Annual Report 2005/06

Designed and edited by Wardour Publishing & Design
Photos: R Kalvar (Magnum); Swiss Image

World Economic Forum
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CH – 1223 Cologny/Geneva
Switzerland
Tel +41 (0) 22 869 1212
Fax +41 (0) 22 786 2744
E-mail contact@weforum.org
www.weforum.org

The annual report is available electronically at
www.weforum.org/annualreport – also in Arabic,
Chinese, French, German and Japanese versions.