World Economic Forum Annual Report 2006/2007

World Economic ForumAnnual Report 2006/2007

World Economic Forum Annual Report 2006/2007ContentsExecutive Chairman’s statement 02Our major successes and achievements 06New strategic endeavours 08Shaping the global agenda 10Shaping the regional agenda 14Shaping the industry agenda 20Building public–private partnerships 24Creating knowledge networks 28Engaging our communities and constituencies 32Working with our members and partners 35Our organization 38The Forum community 40World Economic Forum USA 42Our financial results 44Our mission and values 45The World Economic Forumis an independent internationalorganization committed toimproving the state of the worldby engaging leaders inpartnerships to shape global,regional and industry agendas.

World Economic Forum Annual Report 2006/2007Professor Klaus Schwab,Founder and Executive Chairman of the World Economic Forum

World Economic Forum Annual Report 2006/2007ExecutiveChairman’sstatementProfessor Klaus SchwabOnce again the World Economic Forum hasshown itself to be an innovative, dynamicand insightful organization. Acting as acatalyst for global change, we have deliveredconcrete results that reinforce our mission toimprove the state of the world. We achievedthis at a time when we continue to expandand evolve to meet the changing needs ofour partners and members worldwide.2006/2007 saw a number of key strategicchallenges and opportunities – many of whichwe share with our members. We have continuedto work closely with our members and partnersas well as with other key stakeholders fromgovernment and civil society in our mission toshape the global agenda in a positive way. Aspart of this mission we have all had to addressthe increasing prominence of Asia in the globaleconomy and polity. In addition we have a rangeof emerging global companies that will take theirplace in the global economy in the near future.We have also addressed the growingimportance of online communities both in theway we do business, how the Forum itselfworks, and the way we conduct our lives.And we have continued to give prominence toidentifying and understanding a new generationof global leaders.The Forum shares with all its members andpartners a responsibility and an obligation toreduce its impact on the environment and searchfor sustainable solutions. As part of this focus,this year the Forum is sending all members acondensed print version of this annual report,while offering the full version on our website atwww.weforum.org/annualreport. We hope thatyou understand and welcome this move. Theannual report is also available in Arabic, Chinese,French, German, Japanese and Spanish.Shaping the global agenda:a new global allianceFor many years, the Forum was a relativelylone voice in its passionate advocacy of amultistakeholder approach to global issues.British Prime Minister Tony Blair, whom I wasdelighted to welcome as a member of ourFoundation Board in June, captured thistruth particularly eloquently at this year’sAnnual Meeting.Mr Blair said: “Nations, even the most great,are realizing that they cannot pursue their narrownational interests without invoking broader globalvalues. They are obliged to recognize thatinterdependence is the defining characteristicof the early twenty-first century. The shiftingpower equation is, in part, obviously aboutemerging new powers; but it is equally about thefact that power over global issues can only beeffectively wielded today by global alliances, inturn based on global values.”The key role of business in this ‘global alliance’is becoming increasingly apparent. In 2006/2007,the Forum acted to ensure that our businessexpertise and influence were as assured, andinvaluable to members, as those of our regionaland global perspectives.In this context, I’m pleased that the concept ofCorporate Global Citizenship is evolving from apoorly understood slogan to a key principle andstrategic cornerstone of responsible businesses.Corporations have not only a licence to operatein a global space, but also a ‘civic duty’ tocontribute to the sustainable health of this globalspace in cooperation with governments and civilsociety. It is for this reason that Corporate GlobalCitizenship remains at the very heart of theForum’s activities.The increased engagement of membersdemonstrates the value they place in the Forumand its continuing evolution. In 2006/2007, I amvery pleased to report, our number of StrategicPartners increased by 18%, as further membercompanies signalled their closer commitmentto the Forum by joining the programme.One-third of our staff, in 14 sector teams, arenow dedicated industry experts and, in 2007, ourNorth American office, World Economic ForumUSA, became firmly established as the globalheadquarters for our Centre for Global Industriesand for our Industry Partners programme, thusdeveloping unbeatable strategic perspectivesand a platform to support the concerted actionof our diverse stakeholders. Our IndustryPartnership community continues to grow. Weincreased the number of active members workingin a number of tight-knit communities on a rangeof industry and cross-industry projects by 95%.The Forum’s international expansion with anestablished office in Beijing and now newpremises for our New York headquarters, and theInaugural Annual Meeting of the New Champions,this year in Dalian in China, has extended ourfootprint but has not diminished the Forum’scohesion and unity of purpose. We remain oneorganization, with a common mission and culture.Asia and the rise of the New ChampionsIt has become an established fact that the risingeconomies of Asia are poised to equal those ofthe West, revolutionizing the traditional economicorder. Building relationships and understandingbetween the ‘old’ and ‘new’ economies andbusiness leaders is essential for the futureprosperity and stability of both.The Forum has a long and successful historyof engagement in Asia, and in China and Indiain particular, where we have had a major impactin integrating those countries into the globalsystem. We are therefore perfectly placed tobe a powerful platform for interaction andcooperation between the emerging andestablished economies. This is something theForum has sought to do for many years but it’sclear that this must become a central strategicgoal for the Forum as it must be for many of ourmember companies. The Inaugural AnnualMeeting of the New Champions in Dalian, China

World Economic Forum Annual Report 2006/2007ExecutiveChairman’sstatementProfessor Klaus Schwabcontinued(6–8 September 2007) brings together emergingglobal companies – we call them the ‘NewChampions’ – with today’s leaders to shapetomorrow’s business landscape. This inauguralmeeting creates a powerful platform forinteraction and collaboration between traditionaland new actors, between East and West, bybringing together far beyond 1,000 topparticipants. Our close and long-term relationshipwith the Chinese Government, particularlyrepresented by the NDRC, the NationalDevelopment and Reform Commission, was keyto the establishment of the Dalian meeting andfuture meetings of the New Champions, as wellas the operational success of our office in Beijing.Online communities and theWELCOM projectAs part of this emerging new world, the virtualcommunities that the Web has enabled arebecoming an increasingly important globalresource – and a vital complement to theunderstanding and relationships forged by faceto-faceinteraction. They are changing the waywe do business and the way we interact asindividuals. They have also changed the waywe at the Forum work.In partnership with a number of major globalcompanies, we made great progress in developingWELCOM – the World Electronic Community ofthe World Economic Forum. Developed on a Web2.0 basis and incorporating videoconferencingcapability, WELCOM aims to become the world’smost comprehensive platform and online tool forglobal CEOs and political leaders. It will enablebusiness leaders, both from established anddeveloping economies, to build their knowledge,understanding and relationships and allowthem to stay abreast of the rapidly changingcommercial environment.Perhaps more importantly, WELCOM will allowa completely new approach to tackling globalchallenges by providing an integrated platform.And we have already decided that the first bigglobal issue we will address will be watershortage and water management.The Forum has always led the field in utilizingnew technology. WELCOM continues this trendand, after it is rolled out at the Annual Meetingin 2008, we are confident that this exciting toolwill prove invaluable to members.Working with tomorrow’s leadersThe baby boom generation that shaped thesecond half of the twentieth century is retiring.The future belongs to a new generation, inspiredby different influences, values and goals.The Forum is intent on understanding andharnessing the strengths, talent and vision of thisgeneration. Our sister organization, the Forum ofYoung Global Leaders, is a key avenue to thisgroup. The group now includes over 660 of theworld’s most dynamic and capable under-40 yearolds, drawn from 90 countries and representingbusiness, government, civil society, academiaand the arts.I am also delighted to report that our emphasison discovering and developing new youngleaders is reflected in the participants at Davos– demonstrating the Forum’s success inconnecting with – and our continuing relevanceto – rising generations of leaders.We are also proud of our efforts to improve therepresentation of women leaders both at ourmeetings and in the wider business community.I’m particularly happy that we have doubledthe representation of women leaders at theAnnual Meeting in the last five years.Providing a platform for dialogueand actionOnce again our Annual Meeting in Davos, ourregional events, and our year-round activitiesand programmes supported and complementedeach other. The Annual Meeting, held underthe apposite theme ‘Shaping the GlobalAgenda: The Shifting Power Equation’, broughttogether 2,400 global decision-makers toexamine the implications of moves in economicand political power, climate change andchanging community models, particularly virtualones. And our regional meetings were alsoa key driver of regional integrations. In theMiddle East, despite all the setbacks andnegative developments, the Forum endeavoursto maintain a spirit of hope and reconciliation.We’ve also introduced in the past year a newfeature which has been welcomed by all thosewho took part: exclusive in-depth dialogue withtop leaders – such as the recent roundtable weorganized with Chancellor Merkel and hercabinet and in Russia in June with PresidentPutin and his two first deputy prime ministers.Annual and Regional MeetingsThe significant outcomes of the AnnualMeeting included:The announcement of a new internationalpartnership to establish an accepted frameworkfor climate risk-related corporate reportingThe establishment of an alliance of leadingcompanies to bring power to villages in sub-Saharan AfricaAn agreement by several global developmentbanks to support our Partnering AgainstCorruption Initiative.Our regional events, which attracted increasingnumbers of members from all stakeholder groups,also delivered tangible results. These included:The announcement, at the World EconomicForum on the Middle East, in Jordan, of aUS$ 10 billion initiative to promote youtheducation and a knowledge-based societyin the regionAn insightful meeting between 80 internationalbusiness leader members and GermanChancellor Angela Merkel, as part of a seriesof informal meetings in Europe, to complementour regional meeting in TurkeyThe launch of the Alliance for a GreenRevolution in Africa, to tackle the challengesfaced by millions of farmers in the region, at theWorld Economic Forum on Africa in Cape Town.

World Economic Forum Annual Report 2006/2007Here are the regional meetings organized by theWorld Economic Forum this year:10–11 September 2006 China BusinessSummit, Beijing, China15–16 November 2006 Germany Meeting,Berlin, Germany23–24 November 2006 World EconomicForum in Turkey,Istanbul26–28 November 2006 India EconomicSummit, New Delhi9–10 April 2007 Arab WorldCompetitivenessRoundtable, Doha,Qatar25 –26 April 2007 World Economic Forumon Latin America,Santiago de Chile18–20 May 2007 World Economic Forumon the Middle East,Dead Sea, Jordan9–10 June 2007 World Economic ForumRussia CEORoundtable,St Petersburg13–15 June 2007 World Economic Forumon Africa, Cape Town,South Africa24–25 June 2007 World Economic Forumon East Asia, SingaporeRisks, Competitiveness and ScenariosAll through the year, our activities give businessleaders the tools to do a better job. For example,our ability to act as a ‘hub’ for the best minds –from academia to business and from governmentto media – enables us to provide invaluablestrategic insights.Our Global Risk Network continued to lead theagenda in risk identification and analysis, amidrising concern over such international issues asclimate change and the security of energy supply.In 2007, following a series of workshops, theNetwork identified 23 core global risks, outliningtheir conclusions in the Global Risks 2007 report.The Forum’s Global Competitiveness Networkcontinued to assist policy-makers in creatingdrivers for growth by examining how nations andregions as well as industries can achieve sustainedprosperity. In September 2006, we launched the27th Global Competitiveness Report, covering arecord 125 economies providing critical insightson over 100 competitiveness variables. We alsolaunched our first ever Travel & TourismCompetitiveness Report.Our highly respected Scenario Planning teampresented three major scenarios at the AnnualMeeting 2007, examining: how the GulfCooperation Council countries could develop;the potential impact of the convergence of IT,telecoms, media and entertainment; andhow technology, innovation and regulationcould transform access to, and delivery of,financial services.Public–Private PartnershipsOur members, meanwhile, continued to show thebenefits of public–private partnerships in numerousForum-backed programmes around the world.Our Global Health Initiative, for example,harnessed the influence and expertise of majorcompanies in the fight against AIDS, TB andmalaria. In one initiative, the Beyond Big BusinessPartnership, firms such as Eskom, Heineken,Standard Chartered Bank, Unilever andVolkswagen joined forces with their suppliers toprovide HIV/AIDS awareness, prevention andtreatment programmes. Our Global EducationInitiative, meanwhile, built on its 2006 launch ofPartnerships for Education (PfE), which engagesleading educationalists in promoting the role ofpublic–private partnerships, by signing a formalpartnership with UNESCO to implement PfE.We strongly believe that businesses must be goodglobal corporate citizens and make a positivecontribution to society. As well as encouragingmultinational companies to act this way, via ourpartnership with the Schwab Foundation for SocialEntrepreneurship we also back enterprises thathave a more overt social focus. This year, thefoundation ran 30 national competitions for the‘Social Entrepreneur of the Year’ award, screening2,500 candidates and conducting 150 site visits.The winners joined the growing community ofSchwab Foundation entrepreneurs.I am pleased to report that our members’continued commitment and ever closerengagement with the Forum contributed to a goodfinancial year while still allowing for significantinvestment in the strategic priorities of the newWELCOM platform and the inaugural meeting ofthe New Champions. We also now have plans inhand for the extension of our headquarters to bringall our staff in Geneva back under one roof. Theconstruction should begin early 2009.Looking ahead, the future will be characterizedboth by great business opportunities and bysignificant political and economic risks. TheForum will continue to bring strategic insightsof both the ‘good’ and the ‘bad’ to members’attention: wise, effective leadership requires atrue understanding of the bigger picture. And inthis respect I am pleased that we have added tothe range of talents and capabilities of our staffwith our Global Leadership Fellows programme,which allows us to do so many complex thingsto the satisfaction of the most demandinginternational public.The dedication and engagement of our membersand of our staff were what made 2006/07 anothersuccessful year for the Forum. I would like to thankyou very much for your continued commitment.Professor Klaus SchwabFounder and Executive Chairman

World Economic Forum Annual Report 2006/2007Ourmajorsuccessesandachievements123companies representing more than US$ 500 billion in annualturnover have signed up to Partnering Against Corruption –Principles for Countering Bribery, from the World EconomicForum Partnering Against Corruption Initiative (PACI).

World Economic Forum Annual Report 2006/2007The World Economic Forum is committedto improving the state of the world byengaging leaders from the public and privatesectors and from wider civil society inpartnerships to shape the global, regionaland industry agendas. Here are some ofthe year’s highlights.Global AgendaThe World Economic Forum’s Global EducationInitiative has expanded from country initiatives inJordan, India and Egypt – which are reaching over2,550,000 students – to the global scale. Alongwith UNESCO, the Global Education Initiativelaunched the ‘Partnerships for Education’ with thepurpose of helping developing countries findmultinational and local corporate partners withcapabilities relevant to their efforts to provide allchildren with a basic education.The Forum’s Global Health Initiative is thelargest public–private sector network in health.Results from 2006/2007 include:– India Business Alliance to Stop TB – 4,000,000people were reached through workplace andcommunity programmes delivered by Reliance,Aditya Birla, Jubilant Organosys, Eli Lilly, the WorldHealth Organization, the Global Partnership toStop TB and the Ministry of Health of India.– China Health Alliance – 5,000,000 people,who are employees of partner companies, areexpected to receive education, testing andtreatment. Partner firms are Adidas, StandardChartered Bank, Swire Beverages, Pfizer,the UN and the Chinese Government.– Beyond Big Business Partnership – Around50,000 people received lifesaving HIV/AIDSawareness, prevention and treatment-interventionprogrammes delivered by Eskom, Heineken,Standard Chartered Bank, Unilever andVolkswagen who worked with a selection oftheir suppliers and the GHI.Over 30 companies and other partners includingNGOs and the Government of Kenya have joinedtogether to fight hunger in Siaya, the poorest districtin Kenya. It is the first project of the WorldEconomic Forum’s Business Alliance AgainstChronic Hunger to develop a model for businesspartnership to reduce hunger which can be scaledup and adapted to other regions.World Economic Forum Industry Partners frommany sectors began a collaboration with the G8Gleneagles Dialogue on Climate Change, CleanEnergy and Sustainable Development to developrecommendations for governments regardingways to construct a long-term climate policyframework to transform energy systems as well asopportunities in the near term to increase marketfinancing and consumer demand for low carbonproducts through better public–private cooperation.Regional AgendaHis Highness Sheikh Mohammed Bin RashidAl Maktoum, Vice-President and Prime Ministerof the United Arab Emirates and Ruler of Dubai,launched the Mohammed Bin Rashid AlMaktoum Foundation to promote humandevelopment with a US$ 10 billion endowment atthe World Economic Forum on the Middle East.The World Economic Forum launched theIsraeli-Palestinian Business Council, a keygroup of Palestinian and Israeli CEOs who arecommitted to advancing the relationship betweenthe two business communities and, ultimately,assist the region to move towards durable peaceand coexistence.An initial 70,000 people in Lesotho and theDemocratic Republic of Congo are due to receiveelectricity as part of the World Economic Forum’sEnergy Poverty Alliance. This is a private sectorinitiative of Forum member companies thatdelivers business expertise and best practicesto reduce energy poverty. The three initiatingpartners are British Columbia Hydro and PowerAuthority (Canada), Eskom (South Africa) andVattenfall (Sweden).The World Economic Forum launched thefirst index specifically analysing the investmentenvironment for infrastructure. Covering 12economies in Latin America and the Caribbean,the study, Benchmarking NationalAttractiveness for Private Investment in LatinAmerican Infrastructure, assesses the maindrivers of private investment in infrastructureprojects for ports, airports, roads and electricity.Industry Agenda123 companies representing more thanUS$ 500 billion in annual turnover have signedup to Partnering Against Corruption –Principles for Countering Bribery (PACIPrinciples). Over the past year, PACI significantlydeepened its credibility: the heads of themultilateral development banks, the InternationalFinance Corporation and the Inter-AmericanInvestment Corporation agreed to work withPACI on individual pilot programmes to advanceanti-corruption efforts. The heads of the BigFour Accounting firms (Deloitte, Ernst & Young,KPMG and PricewaterhouseCoopers) agreedto work with the PACI and together will explorethe development of a framework for companiesto benefit from independent reviews of theiranti-bribery programmes.The World Economic Forum launched thefirst-ever Travel & Tourism CompetitivenessReport, measuring the factors that makeit attractive to develop the industry for 124countries. The report is a joint effort led bythe Industry Partners of the Aviation, Traveland Tourism Industry Partnership Programmeand the Global Competitiveness Network.The World Economic Forum’s Working TowardsWellness Initiative aims to stimulate greaterbusiness engagement in the global fight againstchronic disease through employee wellness.The Women Leaders Programme increasedthe participation of women in the Annual Meetingfrom 8% in 2002 to 17% in 2007.

World Economic Forum Annual Report 2006/2007NewstrategicendeavoursOur inspiration to be a member of theCommunity of Global Growth Companies isto mesh with like-minded companies suchas ours – companies that firmly believein providing innovative business modelsand operating model discontinuity tochange the world and to create competitiveadvantage for themselves and for theirclients. Participating in the Inaugural AnnualMeeting of the New Champions gives usthe opportunity to be among a network ofsuch companies that can work in closerconsonance and partnership.Phaneesh MurthyCEO and MD, igate Global Solutions, India

World Economic Forum Annual Report 2006/2007The Forum remains an effective catalystfor global change. To support our missionwe have launched a number of significantprojects that support our strategic vision,and ensure that we continue to engageour members and partners. In the past yearthe Forum has focused on two primarystrategic endeavours: the identificationand development of a new generationof global leaders, the ‘New Champions’,and the launch of WELCOM, an advancedelectronic communication system, whichwill serve as an invaluable tool for membersand partners to help shape agendas.The New Champions‘The Shifting Power Equation’ was the frameworkfor discussions in Davos, but it is also thestrategic imperative behind the creation ofthe Community of Global Growth Companies.Power shifts occur only when ‘New Champions’succeed in both challenging the status quo andforcing change. Therefore early engagement ofsuch leaders and innovators is critical if the WorldEconomic Forum is to retain its leadership inshaping global, regional and industry agendas.The new Community of Global GrowthCompanies comprises the ‘New Champions’from industry that will in fact be shaping thefuture. Its members will interact with currentfoundation members to understand, and toleverage, the forces transforming the businessworld, reordering societies worldwide andcreating fast-growth economies.The designation of the city of Dalian, China,as the host of the Inaugural Annual Meeting ofthe New Champions symbolizes the growingeconomic influence of Asia globally. In additionto the top 500 emerging companies, themeeting in Dalian includes leaders from theworld’s most competitive cities and fastestgrowing regions. The future will also berepresented as the Community of Young GlobalLeaders will gather for their annual meeting.With a strong international media presence,coupled with innovators from the Web 2.0world, the rise of these New Champions willbe explored across all its dimensions.WELCOMThe World Economic Forum firmly believes inthe power of collaborative wisdom and actiongenerated by combining face-to-face and virtualinteraction. WELCOM – the World ElectronicCommunity of the World Economic Forum –creates a unique online community whichfunctions as an advanced collaborative platformfor 10,000 of the world’s top leaders. It is basedon the latest videoconferencing capabilitiesand will provide a unique global governancetool to address the challenges of our globallyinterconnected, fast-paced world.It offers business, government and intellectualleaders a powerful resource to shape global,regional and industrial agendas through a stateof-the-arttechnology platform. Developed ona Web 2.0 basis, in partnership with the world’sleading technology companies, the platformwill provide an unprecedented opportunityfor both established companies and the NewChampions to learn from each other andestablish ties of cooperation and partnership.The initiative is the latest milestone in theForum’s history of embracing technologicalinnovation to improve its offering to members.

World Economic Forum Annual Report 2006/2007 10Shapingthe globalagendaThe World Economic Forum operates onmany levels, addressing global, regionaland industry agendas, although much ofour activity is on a worldwide scale. Workingin concert with our members and partnersand other key stakeholders, our initiativeshave a positive impact on the globalcommunity. At the World Economic Forum’sAnnual Meeting in Davos each year, we sitdown with our partners to frame the globalagenda, highlight the challenges of thecoming year and work on solutions to someof the world’s complex problems. In thissense, the Annual Meeting is the focus ofthe work that the Forum does throughoutthe year.Annual MeetingThe World Economic Forum Annual Meeting2007 again demonstrated the Forum’s vitalrole in bringing together global leaders fromdifferent regions and sectors to address keyinternational issues.Change was a dominant theme of this year’sMeeting, which was held under the banner:‘Shaping the Global Agenda: The Shifting PowerEquation’. It proved a powerful theme, strikinga chord with the 2,400 participants, andreflecting a potent mix of concern and optimism.The continued moves in economic andgeopolitical power to emerging economiesand resource-rich nations; the recognitionof the pressing need to address climate change;and the implications of new community models,often virtual in nature, gave leaders muchto discuss and digest.Optimism over the state of the global economyand the growth opportunities ahead wasmatched by concern over the need to adjust toa new, as-yet undefined, geopolitical landscape.Whether on the G8 agenda, or that of theglobal business community, there was generalagreement on both priorities and the shapethat responses will need to take.Tzipi Livni, Vice-Prime Minister and Minister of Foreign Affairs of Israel and Mahmoud Abbas,President of the Palestinian National Authority, at the 2007 Annual Meeting in Davos

World Economic Forum Annual Report 2006/2007 11The Forum has always believed that globalissues can only be resolved if diverse groupswork together. It was encouraging to hear fromparticipant after participant that this idea, onceconsidered novel, is now seen as the logicalroute to deliver effective and lasting solutions.It was climate change, though, that dominatedthe Annual Meeting 2007. Through a series of17 sessions related to global warming, theworld’s top academics, business leaders, NGOrepresentatives, UN agency chiefs, politiciansand many others joined together in advancingthe discussion and exploring practicalopportunities to make progress throughpartnership.To underscore the deepening commitment ofthe business sector to engage other groups inaddressing this issue, a new internationalpartnership was announced. Called the ClimateDisclosure Standards Board (CDSB), it is madeup of seven organizations which will worktogether to establish a generally acceptedframework for climate risk-related reporting bycorporations. Founding members include theCalifornia Climate Action Registry, CarbonDisclosure Project, Ceres, the Climate Group,the International Emissions Trading Association,the World Economic Forum Global GreenhouseGas Register and the World Resources Institute.CDSB member organizations have agreed toalign their core requests for information fromcompanies to ensure that they report climatechange-related information in a standardizedway. It is expected that this will make for easiercomparative analysis by investors, managersand the public.A number of other significant projects emergedfrom the meeting, including the establishment ofan alliance of leading companies to bring powerto villages in sub-Saharan Africa. The firstproject will focus on Lesotho.In the ongoing fight against global corruption,the presidents of the World Bank, the AfricanDevelopment Bank, the Asian Development Bank,the European Bank for Reconstruction andDevelopment and the executive director of theInternational Finance Corporation agreed to lendtheir support for the Partnering Against CorruptionInitiative (PACI). Acting on their recognition of therole the private sector can play in guiding policyand assisting governments, they agreed to pilot acountry-specific anti-corruption implementationThe Forum offers a unique opportunity forglobal leaders to listen, learn and lead. Itprovides insights into shared challengesthrough constructive dialogue, as well as thetools and networks needed to act on thoselearnings. It helped us to act more quicklyon micro-insurance and deepened ourunderstanding of our role in the climate changedebate. The Forum’s engaged collaborativespirit is what allows it to have such an impact,and makes it a vital development tool for globalleaders. I know I have benefited from theopportunity to participate in Forum activities.James J. SchiroGroup CEO, Zurich Financial Services, Switzerland

World Economic Forum Annual Report 2006/2007 12Shapingthe globalagendacontinuedWe recognize the responsibilities we sharewith governments, community groupsand NGOs for the provision of the basicbuilding blocks of community development:clean water, jobs, nutrition and a healthyenvironment. Because there are no simple,unilateral solutions for these issues, theWorld Economic Forum’s power to convenethose of us who can ensure the sustainabilityof all our communities is critical for buildingunderstanding, respect, trust and partnership.E. Neville IsdellChairman and CEO,The Coca-Cola Company, USA

World Economic Forum Annual Report 2006/2007 13programme, and a sector-specific structuralreform initiative that will promote fair competitionand transparency. Additionally, the world’s fourlargest accounting firms agreed to lend theirsupport through the development of a frameworkfor companies to benefit from independentreviews of their anti-bribery programmes.There was a notable consensus that the Forumand its partners in both business and civilsociety have a responsibility to promote opendiscussion on globalization. Greaterunderstanding is needed of its advantagesand how its negative effects can be reduced.As President and Chief Executive Officer ofRenault, France, and President and ChiefExecutive Officer of Nissan, Japan, CarlosGhosn, said: “Most people who are hurt or whothink they are hurt by globalization know it. Mostwho benefit do not know it”. This is somethingwe are keen to pursue in the coming year.The activity at this year’s Annual Meetingreached a far wider audience thanks to thelatest technological innovations. These includedreal-time webcasts of our key sessions, regularpodcasts, commentaries written and sent outby bloggers and even discussions amongparticipants on SecondLife, the popular Webbasedvirtual community. This was particularlyappropriate to this year’s Meeting, given thatsocial networking and the implications of therise of the virtual world were at the forefrontof many of the discussions. The Forum is keento continue developing its knowledge ofcommunity building and recognizes that newtrends in technology will influence the styleof future Annual Meetings. With this in mind,the Forum is currently researching how thelatest communications technologies canbe utilized for the benefit of its participantsand the wider global audience.Open Forum Davos 2007For the fifth consecutive year, we openedour doors to the general public, via the OpenForum. Co-organized with the Federation ofSwiss Protestant Churches, the Open Forumis a series of sessions held in conjunction withthe Annual Meeting.More than 2,400 people took part in sevensessions. Participants came from all walks oflife, including business, civil society and the localDavos population. This year they included agroup of students from Geneva’s internationalschool, one of whom served as a panellist inan Open Forum session.The debates and discussions providedparticipants with insights on globalizationand the impact of some of its consequences.Individual sessions addressed issues such asCEO salaries, development aid and its results,sustainable energy consumption, managingaccess to oil, multiculturalism, the role ofreligions in society and the impact of brands.Discussions between the public and panellistsallowed for in-depth conversations.Panellists of this year’s Open Forum includedthe Prime Minister of Pakistan, Shaukat Aziz;Group Chief Executive of global advertisinggiant WPP, Sir Martin Sorrell; and theArchbishop of Dublin, Diarmuid Martin.2,400participants, from 90 countries, including 25 heads of statewere at the Annual Meeting 2007.

World Economic Forum Annual Report 2006/2007 14ShapingtheregionalagendaOver the past 12 months, the WorldEconomic Forum initiated a successionof high-level regional gatherings aimedat mobilizing key business, government,academic and social groups. Major eventsin China, India, Singapore, Jordan, Turkey,South Africa and Chile focused on puttingprogrammes into action that would delivertangible results at the regional level.In some cases we introduced smaller and lessformal gatherings, to facilitate dialogue betweenkey leaders. In others, we organized largerroundtable meetings to achieve broaderdiscussions between greater representations ofregional groups. Overall, the aim was to achievegreater knowledge, understanding and actionplans for the key challenges affecting the regions.AsiaAsia continues to reorder economic, political andsocial relationships, underscoring its emergenceas one of the key areas of ‘The Shifting PowerEquation’, which was reflected in the strongpresence of top Asian leaders at the AnnualMeeting in Davos.The World Economic Forum recognized the40th anniversary of ASEAN (Association ofSouth-East Asian Nations) in welcoming threeheads of state from ASEAN nations to theAnnual Meeting in Davos. Gloria Macapagal-Arroyo, President of the Philippines, and theChair of ASEAN at that time, spoke of the boldsteps forward made by ASEAN at its recentannual meeting.HM King Abdullah Il Ibn Hussein of the Hashemite Kingdom of Jordan, gave the opening address at theWorld Economic Forum on the Middle East in Jordan

World Economic Forum Annual Report 2006/2007 15For the first time in the Forum’s history, thePrime Minister of Vietnam, Nguyen Tan Dung,participated in the Annual Meeting, following hiscountry’s entry as the newest member of theWorld Trade Organization. He spoke about thefactors which have driven Vietnam to become thesecond fastest growing economy in the world.The Prime Minister of Malaysia, Abdullah AhmadBadawi, made a special address on establishinggreater understanding in a multicultural world.In September 2006, the 26th China BusinessSummit in Beijing was held. The theme of themeeting, ‘Sustainable Growth through Innovation:China’s Creative Imperative’ clearly spelled out thetop priority for China, as it aims to achieve anew level of economic development. The Summitattracted over 600 participants, representingbusiness executives, senior government officialsas well as top experts and media leaders fromChina and around the world.During the meeting, the full report on ‘Chinaand the World: Scenarios to 2025’ was released,with contributions from more than 100 leadingauthorities. Three possible scenarios wereprojected for China for the next 20 years, varyingfrom sluggish development to robust economicgrowth. The aim of the report was to provide ananalysis of how China’s future development mayaffect global growth, geopolitics, resourcesallocation and trade and investment.The 22nd India Economic Summit took place inNovember 2006 in Delhi. Taking as its theme‘Meeting New Expectations’, the meeting in Delhiwas an effective platform in shaping India’s growthagenda on various topics across vertical andhorizontal axes of the economy. Discussions wereorganized under four key pillars: Infrastructure,Managing Growth, Risk Management, and Stateand National Competitiveness.For the first time, Sonia Gandhi, Chairpersonof the United Progressive Alliance and Presidentof the Indian National Congress, attended themeeting. She presented the 2006 India SocialEntrepreneur of the Year Award to Vikram Akulaof SKS Microfinance, who improved the lives ofmillions in rural India, through the use of microcredit.70,000people have been provided with electricity in Africathrough the Forum’s Energy Poverty Alliance.

World Economic Forum Annual Report 2006/2007 16ShapingtheregionalagendacontinuedThe World Economic Forum is a crucial platformthat allows people like me to meet with otherbusiness leaders to share knowledge andunderstanding. The Forum’s meetings addressthe right issues in an extremely comprehensivemanner. Moreover the Forum provides theopportunity to meet the public and privatesectors simultaneously. Public-privatepartnerships are essential and both sectorsunderstand that we cannot move forward unlesswe unite in addressing the issues that affect usall. Putting our minds and hands together to findcommon solutions is the only way forward.Fadi GhandourFounder and CEO, Aramex International, Jordan

World Economic Forum Annual Report 2006/2007 17Linking the leadership imperatives to Asia’sspectacular growth was the main focus of thisyear’s World Economic Forum on East Asia inSingapore. Under the banner ‘The LeadershipImperative for an Asian Century’, the meetingbrought together 300 top decision-makers from26 countries to examine how the region viewsits leadership roles and to analyse the prioritiesfor its industry and regional agendas. On theeve of the Philippines’ handover of the ASEANChair to Singapore, the meeting’s participantsincluded Gloria Macapagal-Arroyo, Presidentof the Philippines; Lee Hsien-Loong, PrimeMinister of Singapore; Yi Gang, AssistantGovernor of the Bank of China; and MasatoshiWakabayashi, Minister of Environment of Japan.During the year, the opposition DemocraticParty of Japan established a Davos Caucuswith 34 Diet members, which follows the DavosCaucus established last year in the ruling LiberalDemocratic Party. Additionally, in light of Japan’s2008 G8 Presidency, Klaus Schwab met withPrime Minister Shinzo Abe and five senior cabinetministers during an official visit to Tokyo.The World Economic Forum’s recognition of Asia’sdynamic impact in shaping the global, regionaland industry agendas is further reflected by thefact that the Forum chose Dalian, China, as thelocation for its Inaugural Annual Meeting of theNew Champions, in September 2007.Middle East2007 was another troubled year for much ofthe Middle East but despite the precariousgeopolitical environment many economies havegrown faster than in the previous three decades.The Forum strove to maintain an adequatebalance that addresses an extremely sensitivepolitical environment and places the appropriateemphasis also on sustaining the growthmomentum in the Arab world.The World Economic Forum Annual Meeting inDavos provided further opportunities to restartnegotiations to end the Israeli-Palestinian conflictby bringing together some of the region’s leadingpolicy-makers, including Israeli Foreign Minister,Tzipi Livni, Palestinian President Mahmoud Abbas,former Israeli Prime Minister and new President,Shimon Peres, and King Abdullah of Jordan.An important focus of the Annual Meeting wasthe launch of the ‘Gulf Cooperation CouncilScenarios to 2025’. This exercise explored threepossible evolutions of the GCC in terms of itsgeopolitical stability and leadership capacity toimplement effective governance and reforms.Together with key regional partners, the Forumdeveloped in-depth scenarios for Bahrain, SaudiArabia and the United Arab Emirates. In severalhigh-profile sessions on the future of the region,participants explored how to bridge the roadblockfor Arab Israeli peace, the emergence ofa financial hub in the Gulf and the developmentof new urban models.The Forum launched the third Arab WorldCompetitiveness Report during the Arab WorldCompetitiveness Roundtable held in Doha, Qatarin April. The meeting provided a platform foradvancing the reform agenda across the Arabworld and analysed three emerging sectors ofArab economies: travel and tourism, healthcareand insurance services.The Arab Business Council (ABC), recognizedas the voice of the Arab business communityand an initiative of the Forum, continued to buildthe capacity of National CompetitivenessCouncils throughout the Arab world. The ABCsupported the Egypt Education Initiative, whichaims to improve the delivery of education throughpublic–private partnerships, and The Arab WorldCompetitiveness Report. It also initiated andfinanced a trade study looking at US–Middle Easttrade agreements and how they can beoptimized for the region as a whole.The May 2007 World Economic Forum onthe Middle East was held in Jordan under thepatronage of His Majesty King Abdullah II. Underthe banner ‘Putting Diversity to Work’, theprogramme for the Jordan meeting was structuredaround three sub-themes: Industries of the Future;Peace, Stability and International Relations; andSociety and Change. Participants explored howto leverage the region’s diversity in pursuit ofdevelopment and how to manage the tensionsarising from difference in order to promote peace.The Israeli-Palestinian Business Council (IPBC) wasestablished by a key group of Palestinian and Israelichief executives, to advance the relationshipbetween the two business communities and assistthe region in moving towards lasting peace andcoexistence. We also saw significant engagementof senior Iranian leaders, which created furtheropportunities to address tensions in the region.The meeting was a successful platform for dialoguebetween key participants from Iraq, Iran and theUnited States.At the meeting Sheikh Mohammed Bin RashidAl Maktoum, Vice-President and Prime Ministerof the United Arab Emirates, and Ruler of Dubai,established the ‘Mohammed Bin Rashid AlMaktoum Foundation’ for human developmentwith an endowment of US$ 10 billion. The goal ofthis institution is to contribute to a brighter futurein the Middle East by promoting youth educationand a knowledge-based society. It goes to theheart of what the World Economic Forum aims topromote in the region, and we expect to workclosely with the Foundation in the coming years.EuropeMore than 400 participants from 45 nationsgathered in Istanbul for the World EconomicForum in Turkey.Under the banner ‘Connecting Regions – CreatingNew Opportunities’, discussions included Turkey’scurrent EU negotiation process, and an assessment

World Economic Forum Annual Report 2006/2007 18ShapingtheregionalagendacontinuedMore than any individual project alone,we feel that working with the Forummatters because it enables collaborationand dialogue among a variety of differentactors. No one entity has the answers tothe dilemmas of our world, but multipleorganizations working together from multipleangles have a much better chance ataddressing them.Tarek Sultan Al-EssaChairman and Managing Director, Agility, Kuwait

World Economic Forum Annual Report 2006/2007 19of its competitive advantages and emergingbusiness opportunities. The country’s role inbridging civilizations and its geopoliticalimportance in mitigating Europe’s risks bothhelped towards defining Turkey’s strategic rolefor Europe and the wider region.Our European activities aim to complement theAnnual Meeting with smaller targeted meetingsin the region. These events serve two mainobjectives, the first of which is to create largerroundtables, such as the Istanbul meeting, toshape the regional agenda of “Emerging Europe”.The second is to provide small, informal gettogetherswith the leaders of newly electedgovernments. For example, on 15 November, over80 international business leaders met GermanChancellor Angela Merkel. Discussions includedGermany’s domestic reform programme, the EUpresidency and the priorities that would define itsG8 presidency. The Forum plans similar follow-upmeetings with the new governments of othermajor European countries.In what proved to be a hugely valuable interaction,Forum members had the opportunity to followup specific discussions with the German Vice-Chancellor, Franz Müntefering, as well as with theMinister of Health, Ulla Schmidt, and the Ministerof Economics and Technology, Michael Glos.The Annual Meeting 2007 was again characterizedby a strong European participation, with ChancellorMerkel opening the meeting and UK Prime MinisterTony Blair heading the closing plenary. Among themany other regional delegations this year, there wasstrong participation from Russia, headed by theFirst Deputy Prime Minister, Dmitry Medvedev.AfricaThe theme of this year’s World Economic Forumon Africa meeting in Cape Town, ‘Raising the Bar’,underscored the need for the continent’s leaders toremain focused on long-term sustainable growth.In recent years, Africa has seen a shift of focusfrom risk, crisis and poverty to a more structuredemphasis on how to sustain growth, enhanceinvestment opportunities and integrate thecontinent into the global economy. In a yearwhen the continent’s GDP is forecast to reach7%, the June meeting emphasized the need forAfrica to build on this positive momentum.The meeting saw the launch of a number ofhigh-profile initiatives, including the Forum’sAfrica Competitiveness Report 2007, whichrecommended building capacity and fillingthe widening skills gap to underpin continuedgrowth. Other launches included:The Alliance for a Green Revolution in Africa,chaired by former UN Secretary-General KofiAnnan, to tackle the challenges holding backhundreds of millions of small-scale farmersThe Africa Enterprise Challenge Fund, inauguratedby Baroness Amos, Leader of the UK House ofLords, which aims to unlock Africa’s potential byproviding match-funding for business innovations.One year after it was launched at our last Africameeting, the Investment Climate Facility reportedhow, with US$ 200 million in funding and a fullyoperational secretariat in Dar es Salaam, it is aboutto take its first steps in removing obstacles todomestic and foreign investments across Africa.The Development Bank of Southern Africa,meanwhile, agreed to join the Forum’s EnergyPoverty Alliance, as part of a drive to provide basicelectricity to African citizens, and committed tohosting the Energy Poverty Action ManagementUnit at its offices in Midrand, South Africa.Latin AmericaIn April 2007, more than 400 people from 30countries gathered in Santiago de Chile for thesecond World Economic Forum on Latin America.Taking as its theme ‘The Power of a PositiveRegional Agenda’, participants included ChileanPresident Michelle Bachelet and Brazilian PresidentLuiz Inacio Lula da Silva.A key outcome of the meeting was ‘The SantiagoConsensus’, a list of clear priorities and objectivesaimed at helping to shape a clear and positiveregional agenda to boost economic growth andmore equitable income distribution. The initiativefocuses on education, environmental responsibility,investment in innovation, the creation of efficient taxsystems, and infrastructure development.The Forum also released two landmark studieson the region. The first, Benchmarking NationalAttractiveness for Private Investment in LatinAmerican Infrastructure, mapped out the qualityof the infrastructure of 12 Latin American nationsand the factors that determine which countries aremore attractive for private infrastructure investment.The second study, Latin America@Risk, analysedthe main risks that the region faces.Additionally, we published a book of technicalessays on Brazil: Priorities for Action: EconomicGrowth and Income Distribution. This was aresponse to the ‘10 Priorities for Action’ establishedin 2006.North AmericaNorth American participants continue to influenceand contribute to the development of the globalagenda. Over a dozen prominent US Senatorsand Congressmen as well as delegations fromthe United States and Canada attended theAnnual Meeting in Davos and various otherregional events.The Annual Meeting remains the centrepiecefor reviewing the North American agenda.In 2007 US Senator John McCain discussedthe challenges of US leadership; US TradeRepresentative Susan Schwab participated ina number of discussions on Trade; US Secretaryof Homeland Security Michael Chertoff discussedglobal risks including disaster risk reduction andmitigation; and Premier of Quebec Jean Charestspoke about climate change.Canada and the United States also played key rolesin shaping the global agenda at our regionalmeetings; discussions included important issuessuch as developing India–US relations, trade withAsia, the US war in Iraq and the role of NorthAmerica in promoting prosperity in neighbouringLatin America.

World Economic Forum Annual Report 2006/2007 20Shapingthe industryagendaThe strong engagement of our membersand partners is integral to what we do. In2006/2007, by working closely with bothnew and existing corporate champions wecontinued to make real progress towardsour mission.Industry partners programmeAn initiative of the Centre for Global Industries,our Industry Partnership Programme existsto engage the global companies in the Forum’sactivities at the industry level. It operates inconjunction with the World Economic ForumUSA, whose New York offices serve as theworldwide headquarters for the Centre forGlobal Industries.Industry Partners are select member companiesof the World Economic Forum who stronglysupport our commitment to improving the stateof the world. The unparalleled convening powerof the Forum brings these companies togetherto contribute to an evolving portfolio of task forcesand to actively participate in several modules.By July 2007, 184 companies had joined theIndustry Partnership Programme across 17industry sectors. Four such areas – energy,financial services, IT and the investors sector –have already achieved the critical mass of 20or more companies needed to broadly representthe global industry. We remain confident ofreaching our goal of 300 commitments acrossall sectors by the end of 2008.Vinton Cerf, one of the inventors of the Internet with Dan Elron of Accenture and Ben Verwaayen of British Telecom,at the IT and Telecommunications Governors Meeting

World Economic Forum Annual Report 2006/2007 21In addition to joining a highly successful series ofGovernors Meetings during the Annual Meetingin Davos, our Industry Partners have been activein a number of other key areas. For example,Industry Partners of the financial services, IT andtelecoms industries commissioned the Forumto launch a scenario analysis, aimed at exploringhow technology will transform financial servicesup to 2020. The scenarios draw on the viewsof over 150 practitioners and experts from IT,telecoms and financial services. They examineissues such as the development of emergingtechnologies, trust in cyber security, the roleof specialized new players and broadeningaccess to financial services.We also published our first-ever Travel & TourismCompetitiveness Index (TTCI), based on workmandated by our aviation, travel and tourism (T&T)Industry Partners. Covering 124 countries, thereport provides unique data on many relevantqualitative institutional and business environmentissues. The TTCI uses a combination of data frompublicly available sources, international T&Tinstitutions and experts. It also draws on theresults of the Executive Opinion Survey, acomprehensive annual survey conducted by theForum, together with its network of PartnerInstitutes in the countries covered by the report.Energy security and climate change are a toppriority for our Energy Industry Partners. Accordingto the International Energy Authority (IEA), societyis not investing enough to renew and expand itsenergy infrastructure. To address this, our EnergySecurity Roundtable seeks to create dialoguebetween relevant groups. For example, a meetingwas held between sector leaders and the RussianGovernment earlier this year.In the context of the Gleneagles Dialogue,we provided business input to the G8, withrecommendations on the future climateframework. Specific recommendations includeda focus on linking mayors with energy companiesto improve energy efficiency in cities; splitting thewheat from the chaff in the context of biofuels;and developing Energy Poverty Alliances toelectrify off-grid villages in sub-Saharan Africa.I’m fortunate to be heavily involvedwith the Information Technologies andTelecommunications Governors, who arefocused on helping to bring technology tohigh-growth markets around the world. Ona regional basis, I’m happy to say that theIT Governors have played roles in a varietyof pilot programmes and technology trialsin Brazil, Africa, India, the Middle East andother regions.Hector RuizChairman and CEO, AMD, USA

World Economic Forum Annual Report 2006/2007 22Shapingthe industryagendacontinuedABB is involved with the World EconomicForum in a number of ways where we feel ourexperience can make a real difference. Weare participating, for example, in the Forum’sEngineering and Construction IndustryPartnership to identify critical issues facing ourindustry and to develop responses togetherwith other like-minded companies. ABB hasmade ‘zero tolerance’ of breaches of its ethicalguidelines a hallmark of the way it operatesaround the world and we are supporting thatcommitment by participating in the Forum’sPartnering Against Corruption Initiative (PACI).Fred KindlePresident and CEO, ABB, Switzerland

World Economic Forum Annual Report 2006/2007 23Community of Global GrowthCompanies (GGC)Our Community of Global Growth Companies –or New Champions – is a cross-industry groupof businesses with the clear potential to becomeleaders in the global economy.Such companies have demonstrated leadershipin a particular industry and have the aspirationand ability to become leading international players.They are expanding outside their traditionalboundaries, have demonstrated leadership ina particular industry and are experiencing stronggrowth rates, have outstanding executiveleadership and typically have revenues betweenUS$ 100 million and US$ 5 billion depending onthe industry and region.The Inaugural Annual Meeting of the NewChampions in Dalian, China, is the community’sflagship event. It brings together the CEOs ofGGCs, World Economic Forum members andpartners, international government leaders andthe heads of the world’s most competitive citiesand fastest-growing regions. It also includesWeb 2.0 experts, members of the Forum’sCommunity of Young Global Leaders andinternational media representatives.Throughout the year a portfolio of tailor-madeevents based on “Experience Exchange andConversation” with a leading global CEO bringsthe community together with world leaders.Often held in conjunction with the Forum’sregional meetings, these occasions allowtoday’s global industry leaders to share insightsand experiences with rising corporate powerson key business issues such as branding, talentmanagement and leadership.International Business Council (IBC)The International Business Council (IBC) isa well-established community of 100 highlyrespected and influential chief executives fromall industries and regions. They come togethertwice a year for informal, private exchangeson key global issues.The business case for engaging in public–privatepartnerships was the main theme of thesummer meeting in August 2006, providingIBC members with the opportunity to sharetheir experiences in this critical area.At the winter meeting, in January 2007, therewas an in-depth discussion on the implicationsand economics of climate change. It wasfollowed by two individual dialogues with DmitryMedvedev, First Deputy Prime Minister of theRussian Federation, and Gordon Brown, thenUK Chancellor of the Exchequer, now BritishPrime Minister.On the first day of its winter meeting, the IBCunanimously endorsed the Doha developmentround. They said the move underlines theresponsibility of all decision-makers and politicalleaders for relevant, constructive and timelyaction to deliver a successful Doha round.In November 2006, IBC members weregiven the opportunity to meet with GermanChancellor Angela Merkel and in June 2007 theymet with Russian President Vladimir Putin, at theForum’s CEO Roundtable in St Petersburg.Technology Pioneers‘The Shifting Power Equation’, the main themefrom the Annual Meeting 2007, continues todrive our Technology Pioneers programme,with a significant change in innovation models.We moved away from a vertically integratedmodel in favour of a more open and flexibleapproach, where organizations with differentskill sets can participate in innovation networksto co-develop new products and services.As the Technology Pioneers ‘class of 2007’showed, this new model is enabling innovationto become more geographically dispersed.We witnessed a huge increase in nominations,especially from India, China and ASEAN nations.Our final group included 13 nations, resultingin perhaps the strongest-ever group ofTechnology Pioneers.In 2006, we welcomed two new partners –Accel Partners and BT – to the TechnologyPioneers programme. Together with fellowpartner, Deloitte Touche Tohmatsu, the threecompanies were instrumental in increasingglobal awareness of the programme.Partnering against corruptionNow in its third year, the Forum’s PartneringAgainst Corruption Initiative (PACI) continuesto win corporate support towards its goalof ending global corruption and bribery.PACI now has the backing of more than 120signatory companies. In 2007, the heads of themultilateral development banks, the InternationalFinance Corporation and the Inter-AmericanInvestment Corporation agreed to work withPACI on individual pilot programmes to advanceour global anti-corruption efforts.Together with its signatories, the initiative hasmade substantial progress in achievingcorporate commitment to the PACI Principles.It has developed a set of tools to support theexecution and evaluation of anti-corruptionprogrammes by companies and strengthenedits members’ platform for sharing theirexperience of the implementation process.PACI plans to launch another mechanism tohighlight those signatories that have advancedtheir programmes and monitoring mechanismssince becoming involved.The initiative showcased its work in high-levelsessions at the Forum’s Annual Meeting inDavos. It also presented to the OECD WorkingGroup on Bribery, the International Chamberof Commerce Commission on Anti-Corruption,and the State Parties Meeting of the UnitedNations Convention Against Corruption.

World Economic Forum Annual Report 2006/2007 24BuildingpublicprivatepartnershipsThe Forum’s Centre for Public–PrivatePartnership continued to see strongengagement from industry across a numberof critical global issues. In particular we sawthe start of a major collaboration on climatechange. This involved many of the Forum’sIndustry Partners working with the G8Gleneagles ‘Dialogue on Climate Change,Clean Energy and Sustainable Development’.Progress was made in the ongoing battle againstthe spread of HIV/AIDS. Companies involved in ourGlobal Health Initiative (GHI) launched a new effortin partnership with the Chinese Ministry of Health.This brought together a group of multinational andChinese companies, with a combined workforce of5 million. They also devised ground-breaking newmodels for corporate engagement in strengtheningpublic health systems in Africa and extendingHIV/AIDS and TB best practice to supply chains.With sustainability high on the global agenda,companies in our Food and Beverage IndustryPartners programme began a new partnershipto create sustainable agricultural value chains inAfrica through a pilot project in Kenya.We also saw major developments in ourInformation Technology and TelecommunicationsIndustry Partners programme. The Forum’sInternational Monetary Convention Project,meanwhile, issued its final report following twoyears of public–private roundtable meetings onthe future of the international monetary system.Gleneagles DialogueOver the past year the Forum has significantlyincreased the engagement of the businessPartners of the Rajasthan Education Initiative at a school in Jaipur, Rajasthan. They interact with teachers and studentsat schools with newly installed computers and other IT infrastructure.

World Economic Forum Annual Report 2006/2007 25community in initiatives to combat climate change.The centerpiece activity for our industry partnermembers is their engagement in the G8 +5governments’ Gleneagles Action Plan. This isan informal government–business dialogue onclimate change, clean energy and sustainabledevelopment, designed to develop long-termpolicies to manage climate change. The Foruminvited the World Business Council for SustainableDevelopment to also collaborate on thisengagement process.As part of this dialogue, a number of high-levelpublic–private work streams are now under way,working on policy ideas, north-to-south finance,and practical steps towards reducing carbonemissions in the short run. Outcomes from theseworking groups will be announced at the G8leaders meeting in Hokkaido, Japan, in July 2008.There have been some significant developmentsalready. For example:At the Forum’s Annual Meeting in Davos, January2007, over 40 CEOs, international NGO heads,political leaders and other climate change expertswere convened within a workshop environment,to help develop the project focus and activities.In March 2007, the Forum co-hosted a majormeeting on financing clean energy with themultilateral development banks and the G8governments. More than 35 of the Forum’sIndustry Partners took part in the event, whichincluded a keynote speech delivered by GordonBrown, now the UK Prime Minister. The workshophas catalysed a series of public–private workinggroups on clean energy finance which will reporttheir ideas back to the World Bank–IMF AnnualMeeting in October 2007.In May 2007, more than 80 of the Forum’s IndustryPartners gathered for the first in a series of broadclimate change policy discussions with a rangeof environmental policy experts, including Yvo DeBoer, the Executive Secretary of the UNFCCC.Global Health InitiativeIt was a strong year for the Global Health Initiative(GHI). Our efforts to encourage the businesscommunity to play a critical role in finding solutionsto the problems of AIDS, TB and malaria havedelivered impressive results.One initiative, the Beyond Big Business Partnership,saw participation from large global companies suchas Eskom, Heineken, Standard Chartered Bank,Unilever and Volkswagen. With support from the4mIn 2006 the India Business Alliance to Stop TB reacheda total of 4 million people with a combination ofworkplace and community programmes.

World Economic Forum Annual Report 2006/2007 26BuildingpublicprivatepartnershipscontinuedGHI, each company joined forces with some of itssuppliers in Africa to reach approximately 50,000people with lifesaving HIV/AIDS awareness,prevention and treatment-intervention programmes.In India, Reliance Industries, Aditya Birla, JubilantOrganosys and Eli Lilly joined the India BusinessAlliance to Stop TB (IBA). In a classic exampleof public–private partnership in action, thesecompanies worked with the World HealthOrganization, the Global Partnership to Stop TBand India’s Ministry of Health to help the IBA reacha total of 4 million people with a combination ofworkplace and community programmes.The China Health Alliance (CHA) saw Adidas,Standard Chartered Bank, Swire Beveragesand Pfizer work with the UN and the ChineseGovernment on tackling HIV/AIDS andtuberculosis. Launched in September 2006,the CHA commits to providing advocacy andeducation on these diseases and access totesting and treatment to employees of engagedcompanies and a select number of their suppliers,with a special emphasis on migrant workers.Up to 5 million people could be reached at fullscale-up if all engaged companies and theirsuppliers reach all of their employees, includingtheir families and dependants.The World Economic Forum’s meetings playan influential role as one of the world’s mosteffective sensing systems for future trends anddevelopments. The World Economic Forumalso has a proven record for enabling andfacilitating the dialogue between the West andthe Islamic world across countries, religionsand ideologies. I am deeply concernedabout the potential business implications ofthe conflicts in the Middle East. Globalizedconflicts may disrupt global capitalism. But inthe long run, I hope that capitalism will proveto be the more convincing choice.Hans-Paul BürknerPresident and CEO, The Boston ConsultingGroup, Germany

World Economic Forum Annual Report 2006/2007 27June 2006 brought the launch of a GHI white papercalled From Funding to Action: StrengtheningHealthcare Systems in Sub-Saharan Africa, the firstof its kind to highlight the potential role of businessin this area. The GHI is currently working inpartnership with Merck & Co., Becton Dickinson,Sudler & Hennessey, Accenture, AMREF andUNAIDS to develop a project that will demonstratethe report’s findings in practice.Global Education InitiativeEducation is vital to the continued developmentand improvement of global communities. Theonly way to achieve this successfully is to bringbusiness, government and social groups togetherthrough multistakeholder partnerships to helpdeliver education initiatives and reforms.The number of strategic partners supportingthe Forum’s Global Education Initiative (GEI)has doubled over the past year and now includesglobally recognized names such as AMD, Cisco,Goldman Sachs, HP, Intel and Microsoft.In 2006 we launched the Partnerships forEducation (PfE), which focuses on engagingkey education leaders around the world inunderstanding, sharing and promoting the role ofPublic–Private Partnerships (PPPs) in education ona global scale. In this regard, a formal partnershipwith UNESCO was signed in January 2007 andrelated work is ongoing with the internationaldevelopment and bilateral donor community.Our country-specific activities continued to makeprogress in Jordan, India and Egypt. Significantly, inNovember 2006, we handed over formalmanagement of the Jordan Education Initiative (JEI)– which supports students and trains teachers inthe public education system – to the country’sgovernment, three years after its launch, asscheduled. We now expect the JEI to continue itssuccess in developing PPP education models,under the leadership of HM Queen Rania of Jordan.Water InitiativeThe Forum will publish the outcomes of its WaterInitiative by the end of this year. This will be theculmination of a three-year effort which has focusedon developing public–private partnerships in Indiaand South Africa.During this time, high-level multistakeholdernetworks for water have been set up in partnershipwith the New Partnership for Africa’s Development(NEPAD) Business Foundation in South Africa andwith the Confederation of Indian Industry in India.A series of innovative projects have been designedas a result, with very favourable reactions fromwater experts in the public, private anddevelopment sector communities.A new, high-level water project, with a focus onthe economics and politics of reforming waterpolicy for agriculture, has also begun this year.This has been championed by Nestlé and theCoca-Cola Company, together with expert waterand agriculture partners, such as the Food andAgriculture Organization, the Organization forEconomic Co-operation and Development(OECD), Global Water Partnership and theInternational Water Management Institute.Other environmental InitiativesOther related environmental initiatives are alsounder way, with the explicit aim of ensuringthe Forum’s green activities are not focusedon climate change alone. These include workon biofuels, sustainable cities, tourism, andjoint industry-specific efforts with the aviation,IT and finance sectors.Disaster Resource NetworkWith thankfully few major catastrophes affectingthe world in 2006, our Disaster Resource Network(DRN) was able to focus on building local capacityand the civil infrastructure dimensions of disasterresponse operations.In one such partnership, DRN-Mexico, togetherwith leaders from the country’s engineering andconstruction sectors, are currently working toincrease Mexico’s emergency response capabilities.DRN-Mexico has assembled a team of 60volunteers from organizations such as EmpresasICA SAB de CV (ICA), Marhnos, Siemens-Mexicoand Cámara Mexicana de la Industria de laConstrucción. ICA, which is a consortium ofMexican construction companies, will act as thecorporate lead sponsor of the initiative. The teamwill form the core of a pool of engineering andconstruction experts who, in the emergencyphase of a disaster, will conduct rapid-responseinfrastructure damage assessments.The volunteer members of Mexico’s EmergencyEngineering-Construction Team are expectedto complete their training and field exercisesin preparation for the launch of operations inearly 2008.www.drnglobal.orgCouncil of 100 Leaders:West-Islamic World Dialogue (C-100)The Forum’s C-100 community focused its effortson two key subjects. The first was ‘Discourse’,which aims to create deeper dialogue betweenthe West and the Islamic world. The second wasthe development of the ‘Annual Report on West-Islamic Dialogue’, which provides a reference pointfor faith, government, business, civil and academicleaders in identifying pressing issues.During the year, the Forum’s Religious Leaderscommunity was integrated into the C-100in meetings in Turkey, Davos and Jordan.Moreover, a C-100 session was organized atthe Annual Meeting 2007 on ‘Rules for a GlobalNeighbourhood in a Multicultural World’, inwhich leaders from religion, education andgovernment agreed that politics was failingto find solutions for the compelling issuesconfronting peace and democracy.

World Economic Forum Annual Report 2006/2007 28CreatingknowledgenetworksIt has never been more important forgovernments, business and civil groupsto work together. In an increasingly complex,integrated and networked world, situationschange quickly, and the ability to makethe right decisions regarding the futurecan only come from regular dialogue andcommunication with all key stakeholders.Driving forward collaboration between business,government and civil groups is one of the primarygoals of the World Economic Forum. Our StrategicInsight teams work throughout the year to ensurecross-party participation around the major issues ofglobal competitiveness, risk and scenario planning.Global Competitiveness NetworkOur expertise on international benchmarkingcontinued to grow as we carried out a numberof wide-ranging projects aimed at furtheringthe process of economic development.The Global Competitiveness Network (GCN)acts as a platform for discussion and debatefor the business community, government,academia, international organizations andcivil society. It provides invaluable insightsinto the policies, institutions and factorsaffecting national competitiveness.Our primary role is to examine how nationaleconomies might achieve sustained economicgrowth and long-term prosperity, therebystimulating the necessary strategies to attain theseobjectives. In September 2006, the 27th editionof the annual flagship publication, The GlobalCompetitiveness Report, was released. The reporthas long been the top international reference guideJohn Thain, CEO, NYSE Euronext, USA, speaking at the Finance Governors Meeting, at the 2007 Annual Meeting in Davos

World Economic Forum Annual Report 2006/2007 29for measures of competitiveness, providing criticalinsights to the business community and policymakers.This year’s report covers a record 125economies, up from 117 last year, and presentscomprehensive data on over 100 variables oncompetitiveness.The GCN also carries out a number ofcompetitiveness studies at regional and industrylevels, such as the Lisbon Review 2006, publishedin November. This is the third in a biennial seriesassessing the progress made by European Unionmember countries in the far-reaching goals of theEU’s Lisbon Strategy of economic and structuralreforms. The study highlights the extent of theprogress still needed to transform the EU into “themost competitive and dynamic knowledge-basedeconomy in the world” by 2010.The first-ever Travel & Tourism CompetitivenessReport was launched in March 2007. This projectassesses the industry’s competitiveness within thecontext of the Forum’s Aviation, Travel and TourismIndustry Partnership programme. One of the world’slargest economic activities, Travel & Tourism (T&T) isthe main industry in many countries, as well as thefastest-growing economic sector in terms of foreignexchange earnings. The report measures andanalyses the drivers of T&T competitiveness aroundthe world and provides the most updated data,rankings and analysis of industry competitivenessin 124 industrialized and emerging economies.It also features the latest thinking and researchfrom the industry’s most prominent figures.We anticipate the T&T report to act as a powerfultool for industry members to enter into informeddialogue with policy-makers, and to identify areasfor potential reform. A number of workshops arenow being carried out in developing countries,with the aim of improving prospects for the sector.In March 2007, the GCN launched the sixth annualGlobal Information Technology Report, whichassesses the economic impact of information andcommunication technology (ICT). Being an activeforce in the digital revolution and leveraging thelatest technological advances for development,it is now widely recognized as a key driver of anation’s competitiveness. The report remains themost comprehensive and respected internationalassessment of the preparedness of countriesto capture the benefits of participating in thenetworked economy.The third Arab World Competitiveness Report2007 aims to identify tangible solutions to theconstraints that limit faster growth in the region.125The Global Competitiveness Report 2006–2007 includeda record 125 economies worldwide covering all regionsand accounting for over 98% of world GDP.

World Economic Forum Annual Report 2006/2007 30CreatingknowledgenetworkscontinuedThe competitive performance of Arab worldcountries is compared with international peers,highlighting the great diversity of economiesin the region. The report includes proposedstrategies for enhancing the competitivenessof selected sectors that have been identifiedas potential engines of growth. These includehealthcare, travel and tourism, information andcommunication technologies, insurance andtransport and logistics. The report provided thebasis for public–private dialogue at the Forum’sArab World Competitiveness Roundtable inDoha in April 2007.We issued the fourth edition of The AfricaCompetitiveness Report 2007 (ACR) at theWorld Economic Forum on Africa in Cape Townin June. The publication marks a new level ofcooperation in Africa. It is the first report on theregion’s business environment to leverage thecombined knowledge and expertise within theAfrican Development Bank, the World Bank andthe World Economic Forum. As such, it presentsa unified vision and a mapping of the policychallenges which countries on the continent mayaddress as a foundation for sustainable growthand prosperity.Merrill Lynch has worked closely with theForum on a number of initiatives. As aparticipant in the Finance Governorsprogramme, we explored the interplay amongfinancial markets and the forces impactingglobal markets. As part of the Global RisksNetwork, we discussed how best to addressthe structural risks embedded in the financialsystem. These discussions allow us to hear avariety of perspectives on important issuesand that’s valuable to the Forum, to MerrillLynch and to the industry as a whole.Gregory FlemingExecutive Vice-President and President,Global Markets and Investment Banking,Merrill Lynch, USA

World Economic Forum Annual Report 2006/2007 31The GCN continues to collaborate with over 140partner institutes around the world. The networkof Partner Institutes consists typically of researchor academic institutes located in each countrycovered by the competitiveness report series. Wealso work closely with key Forum members andpartners, which this year included FedEx, GallupInternational, Microsoft and Cisco.Global Risk NetworkNow in its third year, the Forum’s Global RiskNetwork (GRN) continues to grow in stature amidmounting concern over climate change, energyinsecurity, geopolitical instability and potentialeconomic upheaval.We organized a series of workshops in Londonand New York to identify and discuss how toreduce the impact of these key risks. With inputfrom groups of business, academic and policymakingexperts on economics, the environment,societal change and geopolitics, we identifieda list of 23 ‘core’ global risks. We also analysedthe associated trends, likelihood and potentialseverity of impact of these risks, and attemptedto characterize the correlation between them andthe complex scenarios in which they couldemerge. Most of these issues are likely to increaseover the next decade, while the institutionalcapacity to manage them is lagging behind.The findings of the workshops were publishedin the Global Risks 2007 report, which receivedextensive global media coverage. The report’srecommendations included institutional innovationssuch as the development of flexible, fast-movingcoalitions of companies and countries and thecreation of a country risk officer to allow the publicsector to manage a risk in a more balanced andless politicized fashion.The GRN also helped the Forum’s industrycommunities deepen their insight into the mitigationof global risks. Two specialist sessions – one inLondon on avian influenza and one in New York onnatural catastrophes – each brought together morethan 100 strategy officers from the Forum’s IndustryPartner companies. The latter has since grown intoa multistakeholder dialogue on Disaster RiskReduction, in partnership with the World Bank, theUnited Nations and the United States Departmentof Homeland Security. Additional work producedprojects on water risks with the food and beverageindustry and information-sharing with the aviation,travel and tourism sectors.During the year, the GRN also launched theRegion@Risk series, exploring the regional contextsin which global risks emerge. Europe@Riskanalysed the potential role of Turkey in reducingEuropean exposure to global issues, whileIndia@Risk highlighted six key dangers tocontinued human and economic developmenton the sub-continent.Scenario planningThe World Economic Forum’s Scenario Planningteam presented three major scenarios at the AnnualMeeting in Davos.‘The Gulf Cooperation Council (GCC) countriesand the World: Scenarios to 2025’ examinedhow the region could develop over the next 18years. It raised key questions over the ability ofGCC countries to implement necessary reforms,and how they could maintain order and stabilityin the face of regional uncertainty.Following workshops involving over 150 expertsand participants, three scenarios for the GCCregion were developed: ‘Oasis’, ‘Sandstorm’ and‘The Fertile Gulf’. Four themes emerged as beingcrucial to the future of GCC countries: education,innovation, leadership and governance.‘The Digital Ecosystem – Convergence betweenIT, Telecoms, Media and Entertainment: Scenariosto 2015’, the second scenario publication,examined the shape and size of the spaceemerging from the convergence of the InformationTechnology, Telecommunications, and Media andEntertainment industries. User empowerment,market structure, regulation and intellectual propertyrights were among the major factors shapingthis evolution.Three scenarios, ‘Safe Havens’, ‘MiddleKingdoms’ and ‘Youniverse’ were developedin cooperation with the Industry Partners as wellas over 100 academic, social, government andbusiness leaders.‘Technology and Innovation in FinancialServices: Scenarios to 2020’ was a product ofcross-industry cooperation with financial services,IT and telecoms industries. The focus was onhow technology, innovation and regulation maytransform access to and delivery of financialservices by the year 2020.Through the scenario workshops and interviewscomprising over 150 practitioners, three scenarios,‘Global Ivy League’, ‘Next Frontier’ and ‘InnovationIslands’, were created.These three scenario projects, together with ourprevious work on China, India and Russia, providean excellent basis for ongoing dialogue withinthe Industry Partnership programme, the AnnualMeeting and the Forum’s regional meetings.

World Economic Forum Annual Report 2006/2007 32Engaging ourcommunitiesandconstituenciesOur communities of members and partnercompanies are vital in driving forward theactivities of the Forum. Their participationand interaction, with both the Forum andeach other, are fundamental to our missionof improving the state of the world.The Forum of Young Global LeadersOur Young Global Leaders (YGL) continue tomake a significant contribution to the Forum’scommunities, programmes and initiatives. Withthe new class of 2007 joining in January, thecommunity now has over 660 members from 90different countries. They are drawn from the fieldsof business, government, civil society, academiaand the arts, and are all under the age of 40.The YGL community has developed several excitingnew dimensions, particularly in the areas ofleadership, policy insight and regional development.For example, in partnership with Harvard’s John F.Kennedy School of Government, it is launching‘Global Leadership for the 21st Century’. Theinitiative aims to help YGLs better understandissues of global concern, create a vision for a betterfuture and put forward innovative solutions totranslate their vision into immediate action.Supported by David Rubenstein, Managing Directorof the Carlyle Group, and William George, author ofAuthentic Leadership and member of the boardof the World Economic Forum USA, the partnershipwill create one of the world’s foremost executiveeducation leadership programmes.Over 100 YGLs met in Washington DC in April2007 for the US Policy Roundtable, hosted byHM Queen Rania of the Hashemite Kingdom of Jordan, with Young Global Leaders in a schoolduring a visit to celebrate Dignity Day

World Economic Forum Annual Report 2006/2007 33Dina Habib Powell, Assistant US Secretaryof State for Educational and Cultural Affairs,and former Jordanian Ambassador to the US,Karim Kawar, President of the Kawar Groupof Companies. Key topics included climatechange as a priority for the US Government,the increasing importance of public–privatepartnerships to support foreign diplomacy, andthe need for reform of international organizations.The Young Global Leaders also played active rolesat the Forum’s regional meetings. YGL LindaRottenberg, Co-Founder and Chief ExecutiveOfficer of Endeavor Global, USA, co-chaired theWorld Economic Forum on the Middle East 2007;and YGL Malvinder M. Singh, Chief ExecutiveOfficer and Managing Director of RanbaxyLaboratories, India, co-chaired the Forum’s Africameeting in Cape Town in June 2007.Moreover, at the meeting in Santiago de Chile,YGLs worked side by side with beneficiariesand other volunteers to construct two homesin one of Santiago’s poorest areas. And at theWorld Economic Forum on the Middle East inJordan, YGLs accompanied HM Queen Raniaof Jordan on a ‘Dignity Day’ visit to Al-JubaihaSecondary School for Girls in Amman.As well as the above, throughout the year, theYoung Global Leaders continued to build themomentum behind task forces in the fields ofhealth, education, global governance andsecurity, and the environment.The Schwab Foundation for SocialEntrepreneurshipThe Forum works closely with the SchwabFoundation for Social Entrepreneurship toshowcase successful social innovators whohave combined business principles with a publicpurpose. Together we have created a uniqueplatform upon which these visionary pragmatistscan come together with business, public, mediaand cultural leaders. The aim is to establishconcrete initiatives that transform social andenvironmental challenges and create sustainablelivelihoods for the poor and excluded.Both social entrepreneurs and Forum membershave seen significant benefits from this closeworking relationship. Entrepreneurs have beenable to mobilize millions of dollars of investmentfor their operations, and companies have gainedmarket intelligence, enhanced their brandvalue and increased their ability to attractand retain talent.The World Economic Forum has the abilityto convene the very best leaders and sharethe best ideas to overcome the hurdlesthat currently restrict the impact thatentrepreneurs have on their communities.Linda RottenbergCo-Founder and CEO, Endeavor Global, USA

World Economic Forum Annual Report 2006/2007 34Engaging ourcommunitiesandconstituenciescontinuedThe Foundation searches and selects membersof its community in collaboration with mediaand business partners all over the world. As wellas identifying candidates at a global level, theFoundation runs 30 national competitions for the‘Social Entrepreneur of the Year’ award. In 2006the Foundation screened 2,500 candidates andconducted in-depth due diligence site visits onapproximately 150 individuals. The winners wereselected by national juries drawn from thecountry’s business and thought leaders and wenton to join the growing community of SchwabFoundation social entrepreneurs.Women Leaders ProgrammeOur Women Leaders Programme (WLP) iscommitted to promoting women’s leadershipand the issues affecting their lives globally.This was demonstrated during the year by,for example, specific WLP activities at ourregional meetings in Turkey, the Middle East andLatin America. More generally, female leadersactively participated in all our regional meetings,while the ratio of women at our Annual Meetingin Davos increased to 17%.In 2006, the WLP also launched its secondGlobal Gender Gap Report, a benchmarkingtool which ranks 115 countries according to thesize of the gap between the sexes. This coveredcritical areas such as political empowerment,health, education and economic participation.Utilizing the full potential of women in societyis vital in enhancing a country’s humanresources pool and boosting competitiveness.To this end, the report functions as a tool foridentifying existing strengths and weaknessesof countries. It also acts as a catalyst forcreating opportunities to learn from countrieswhich have been successful in promoting therole of women.Additionally, the Women Leaders Programmecontinues to reach out to the appropriate policymakersto ensure effective dissemination of,and action around, the information revealedby the study.International Media Council (IMC)With the objective to offer an informal, neutralplatform for peer exchanges among the opinionshapers in media, the World Economic Forumcreated the International Media Council. Thisnewly created community met for its inauguralgathering on the occasion of the AnnualMeeting 2007 in Davos; prominent digitalmedia shapers from all over the worldled an interactive debate with their peersfrom traditional media on the challengesand opportunities posed by the new waveof citizen journalism (participatory media).Stakeholders and NGOsCivil society organizations continue tooccupy a central position within the Forum’smultistakeholder platform. The unique expertiseand far-reaching influence of these groups,which include NGOs, labour unions, religiouscommunities and philanthropic foundations,make them valuable collaborators in manyof our initiatives and programmes.At both the Annual Meeting and our regionalmeetings, leaders of major civil societyorganizations played significant roles in helpingto define the global and regional agendas.NGOs remain particularly active in Forumwork-streams and multistakeholder partnershipprojects. They bring their specialist knowledgeand experience to bear on a number of keytopics, including education, the environmentand humanitarian relief.Forum facultiesThe Faculty is one of our richest sources ofintellectual capital. Its members include many ofthe world’s most distinguished thinkers, experts,scientists, commentators and cultural leaders.Faculty members contribute to the identificationof issues and development of content forregional events and the Annual Meeting;participate in discussions at our events; andassist in workshops, Governors Meetingsand Industry Partners activities.The activities of the Global CompetitivenessNetwork, the Global Risk Network and BusinessInsight/Strategic Planning also benefit greatlyfrom the support of the Forum Faculty.2,000families in India and Pakistan were able to move from makeshift tents andcrowded camps to specially designed transitional shelters provided by the WorldEconomic Forum’s Disaster Resource Network and its partners.

World Economic Forum Annual Report 2006/2007 35Working withour membersand partnersThe Forum recognizes that working with ourmembers and partners is essential to helpingus find truly sustainable solutions to improvethe state of the world. They also provide anendless source of hope and positive energywhich helps to keep our vision alive.MembersOur 1,000 member companies are at the heartof all our activities and provide invaluablesupport to our mission.Achieving balance in membership from all majorindustries and regions is crucial to our continuingsuccess. In 2006/2007, we increased thenumber of our major multinational members bymore than 15%. Conversely, one-third of ourmembers continue to come from emergingeconomies, which provides the Forum with atruly global business perspective and allowsbusiness leaders from these economies toparticipate in the international business arena.We experienced record participation bymembers in all Forum activities, includingthe Annual Meeting. Overall, more than 60%of member companies engaged in an eventor initiative led by the World Economic Forumother than the Davos Annual Meeting,reinforcing our commitment of being amember-driven organization.Business leaders trying to construct a company model, at a WorkSpace session of the Annual Meeting 2007 in Davos

World Economic Forum Annual Report 2006/2007 36Working withour membersand partnerscontinuedOver the past year, we selected the followingnew members to join the Forum community:3i Group, Actis Capital, Adani Group,Adobe Systems, Adolf Würth, Aflac Japan,Africa Israel Investments, Alibaba.com,All Nippon Airways (ANA), AlphaTechnologies, Amdocs, Amec, Arup Group,Ashok Leyland, Aviva, Best Buy Co.,Braskem, China Construction Bank,Chinese Petroleum Corporation,Chunghwa Telecom (CHT), ClevelandClinic, CNP Assurances, Confederation ofBritish Industry (CBI), Daiwa SecuritiesGroup, Dimensional Fund Advisors, EGL(Elektrizitäts-Gesellschaft Laufenburg),Elcoteq, Etihad Etisalat, Eurocash, Federationof German Industries (BDI), FIBA (InternationalBasketball Federation), Fiba Holding, FranzHaniel & Cie, Government Savings Bank,Grupo Nueva, HCL Technologies, IndexVentures, Industrial Union of Donbass (IUD),International Road Transport Union (IRU),Japan Post Corporation, Johnson & Johnson,Kaiser Permanente, Kleiner, Perkins, Caufield& Byers (KPCB), Kohlberg Kravis Roberts,MBK Partners, Medtronic, MitsubishiChemical Corporation, Mitsui & Co.,Beyond meeting the smartest and mostinfluential people in business and society, asStrategic Partners, WPP develops importantinsights into the latest global trends and issuesaffecting our clients’ businesses and our own.We then provide feedback to our companiesand their people so all benefit. Our partnershipwith the Forum has grown from attendingthe Annual Meeting to becoming a StrategicPartner in 2005. We are now actively involvedin steering the debates and support the Forumwhere we can add the most value – especiallywhere there are programmes that can make adifference in today’s and tomorrow’s world.Sir Martin SorrellGroup Chief Executive, WPP, United Kingdom

World Economic Forum Annual Report 2006/2007 37NBC Universal, News Corporation, NorskeSkogindustrier, Novo Nordisk, Novatek,OC Oerlikon Management, Odebrecht,Paltel Group, Perella Weinberg Partners,Permira Advisers, Providence Equity Partners,Sabanci Holding, Sanyo Electric Co.,Saudi Oger, Silversea Cruises Group,Sojitz Corporation, SONATEL (SociétéNationale des Télécommunications duSénégal), SPARX Group, Suzlon Energy,System Capital Management, TakedaPharmaceutical Company, Teck Cominco,TiVo, Tokyo Electric Power Company (TEPCO),Tokyo Electron, Travelport, Tullett Prebon,Türk Telekom, Uralkali, UTStarcom,VinaCapital Group, Ziff Brothers Investment.Strategic PartnersOur Strategic Partners comprise some ofthe world’s leading corporate citizens andprovide essential leadership in support ofthe Forum’s mission.In 2006/2007, the number of Strategic Partnersincreased to 71, as further member companiessignalled their commitment to the Forum byjoining the programme. This year saw particularlysignificant involvement from emerging markets,such as Russia (VimpelCom), Malaysia (Petronas)and South Korea (SK Group).The Strategic Partners are a key force in ouractivities and communities, at global, regionaland industry levels. They help shape ourinitiatives, projects and task forces and giveintellectual guidance through the participationof their most senior executives on steeringboards and advisory groups.Their considerable financial support and in-kindservices – including the provision of dedicatedstaff to assist with our operations – allows theForum to deliver its programmes and advanceworldwide economic and social progress.As part of their role, the Strategic Partnersprovide significant insights to the Annual Meetingin Davos. They are also active participants atour regional meetings and are closely involvedin governing the communities and corporateglobal citizenship initiatives of the Forum.On 30 June 2007 our Strategic Partners included:ABB, ABN AMRO Bank, Accel Partners,Accenture, Alcan, Alcoa, AMD, AmericanInternational Group Inc. (AIG), ApaxPartners, Audi, Avaya, Bahrain EconomicDevelopment Board, Bain & Company,Barclays, Bombardier, Booz Allen Hamilton,The Boston Consulting Group, BP, BT, CA,Cisco, Citigroup, The Coca-Cola Company,Credit Suisse, Deloitte, Deutsche Bank,Deutsche Post World Net, Dubai Holding,DuPont, E*TRADE, Ernst & Young, FluorCorporation, Goldman Sachs, Google, HP,Infosys Technologies, Intel Corporation,JPMorgan Chase, KPMG, Kudelski Group,Lehman Brothers, Manpower, Marsh &McLennan Companies (MMC), McKinsey &Company, Merck & Co., Merrill Lynch,METRO Group, Microsoft Corporation,Morgan Stanley, NASDAQ, Nestlé, Nike,NYSE Group, PepsiCo, Petronas, Pfizer,PricewaterhouseCoopers, RelianceIndustries, Reuters, Roland Berger StrategyConsultants, Saudi Basic IndustriesCorporation (SABIC), Siemens, SK Group,Swiss Re, UBS, Unilever, VimpelCom,Volkswagen, WPP, Xenel Group, ZurichFinancial Services.Industry partnersNow in its second successful year, ourIndustry Partners programme continuesto gather momentum and new members.There are now 197 partnerships, representing184 companies, some of whom have joinedmultiple industry programmes. These IndustryPartners have joined the programme froma broad range of business sectors includingconstruction, aviation, technology, tourism,food and beverage, engineering andfinancial services.Industry Partners play an active role in anumber of our projects, meeting and engagingwith key decision-makers on the most pressingglobal issues. They have also commissionedus to produce insights and reports across arange of key industries including travel andtourism, financial services, informationtechnologies, telecommunications and energy.Global Growth CompaniesThe Forum’s Community of Global GrowthCompanies are drawn from those with thepotential to become leaders in the globaleconomy within the next five years. These‘New Champions’ have the aspiration andability to become true global championsand are experiencing growth rates exceeding15% year-on-year with revenues of betweenUS$ 100 million and US$ 5 billion.The Inaugural Annual Meeting of the NewChampions in Dalian, China, is the Community’sflagship event, bringing together growingglobal names such as Chinese IT firm,Neusoft Group; life sciences specialist,Qiagen of Germany; US biopharmaceuticalfirm, Cephelon; green fuels company,Praj Industries; YES Bank, from India; andLebanese technology firm, MDS Holdings.

World Economic Forum Annual Report 2006/2007 38OurorganizationThe Managing BoardThe Managing Board acts as the executive bodyof the Foundation. It ensures that activities fulfilthe mission of the World Economic Forum andacts as its representative to outside parties. In2006/2007, the Managing Board consisted of:Klaus Schwab, Executive Chairman (1)Jean-Pierre Rosso, Chairman, World EconomicForum USA (2)André Schneider (3)Richard Samans (4)Peter Torreele (5)Michael Obermayer (until 10 February 2007)For more information about the Managing Board,visit www.weforum.org/leadershipteamThe Foundation BoardThe Foundation Board is responsible for maintainingbusiness and public confidence by ensuring anexemplary standard of governance throughoutthe Forum. It acts as the Board of Trustees andguardian of the Forum’s mission, values and brand.Board members are individuals with uniqueleadership experience from business, politics,academia and civil society. They do not representany personal or professional interests, but solely1 35 2 4

World Economic Forum Annual Report 2006/2007 39those of the Foundation. Membership criteriainclude integrity, global vision, leadership experienceand engagement in world affairs.The Board’s role encompasses supervising theactivities of the Foundation and its bodies;managing the statutory dispositions of the Forum;appointing new members; approving the strategicdirection of the Forum; defining the roles of theManaging Board and committees; and approvingthe annual report, the annual accounts and theFoundation’s budget.The committees of the Foundation BoardAt its January meeting, the Foundation Boardrevised its statutes and restructured its committees:The Audit Committee ensures compliance withall financial, accounting and control processesin accordance with global best practice andthe principles of good corporate governanceThe Strategy Committee acts as a soundingboard to the Managing Board in elaboratingthe Forum’s plans. In particular it reviews thestrategies related to partnerships andmemberships of the ForumThe Programme Committee monitors the missionorientation of all the Forum’s activities.The chairmen of each of the above committees(together with the executive chairman and thesecretary of the Foundation Board) make up theExecutive Committee of the Foundation Board.Their task is to prepare and execute the decisionsof the Foundation Board and oversee the activitiesof the Foundation and its bodies.To engage Foundation Board members evenmore into the governance process, the rule wasintroduced that each member of the Board hasto serve on at least one committee.In its January 2007 meeting, Ivan Pictet, ManagingPartner of Pictet & Cie Private Bankers, and HeizoTakenaka, Director, Global Security ResearchInstitute, Keio University, and a former memberof the Japanese Government, were unanimouslyelected new members of the Board.During the same Board meeting, Heinrich vonPierer and Nobuyuki Idei, whose three terms ofthree years each had come to an end, did not seekre-election. The Board expressed its greatappreciation for their engagement and friendship.On 28 June 2007, the World Economic Forumannounced that former UK Prime Minister Tony Blairhas joined the Foundation Board.On 1 July 2007, the Foundation Board consistedof the following members:Klaus Schwab, Executive ChairmanJosef Ackermann, Vice-ChairmanKurt Alig, SecretaryTony BlairPeter Brabeck-LetmatheLord Carey of CliftonVictor L.L. ChuFlavio CottiMichael S. DellNiall FitzGeraldOrit GadieshCarlos GhosnRajat GuptaMaurice LévyNandan NilekaniIvan PictetHM Queen Rania of the Hashemite Kingdomof JordanPeter SutherlandHeizo TakenakaErnesto ZedilloFor more information about the Foundation Board,visit www.weforum.org/foundationboardStructureThe Forum’s structure consists of six coredepartments: the Centre for Global Industries,Regional Agenda Teams, the Centre forPublic–Private Partnerships, Strategic InsightTeams, Communications, and Events andResources Management.Centre for Global IndustriesOur Centre for Global Industries is based inNew York and is responsible for managingrelations with the global communities of businessleaders drawn from around 15 industry sectors.It is committed to fostering engagement betweenForum members through the IndustryPartnerships programme.Regional Agenda TeamsThe Regional Agenda teams deliver value tomembers and potential members via a seriesof regional and national meetings. The departmenthas six teams who focus on key regional and globaltrends to develop an understanding of how theyaffect an increasingly interconnected world.Centre for Public–Private PartnershipsThe Centre for Public–Private Partnerships wascreated by the World Economic Forum to broadenthe application of public–private partnerships tosome of the world’s most pressing problems.The Centre consolidates all of our task forcesand initiatives and is a comprehensive resourcefor companies seeking to engage with the publicsector to tackle global issues.Strategic Insight TeamsThe Strategic Insight teams work with the Forum’snetwork of communities, such as businessleaders, NGOs and policy-makers to createrelevant strategic insight. The department hasfour core teams, focusing on the global agenda,scenarios, economics and competitiveness,and global challenges.CommunicationsThe Communications department consists of threeteams, focusing on the World Economic Forum’swebsite, publications and media relations. The threeteams work together to publicize the Forum’s workand to explain to both members and non-membershow it delivers on its mission.Events and Resources ManagementEach year we bring together thousands of decisionmakersat World Economic Forum meetingsand regional meetings to address the most crucialissues facing mankind. To maintain quality andeffectiveness, we have a team with uniqueknowledge and experience in developing suchhigh-calibre events.

World Economic Forum Annual Report 2006/2007 40TheForumcommunityOur peopleThe skills, knowledge and dedication of ourpeople are essential to the success of theForum. In 2006/2007, to meet the growingneeds of our mission and strategy, we recruiteda number of new employees. Our headcounttoday stands at 277, compared with 229 forthe previous year.Our Global Leadership Fellows programmecontinued to develop. We saw the first group of47 Fellows successfully enter their second-yearprogramme, while a second group, composedof 32 people, joined us in autumn 2006 to starttheir first year.We also continued to attract extremely skilled,motivated and internationally trained peopleto the Forum and its activities, thus reflectingour diverse, multistakeholder focus. Currently,our staff represents 51 nationalities, of whom57% are women and 82% are graduates, with7% holding a PhD. The average age of ourteam is now 36.Global Leadership FellowsNow in its third year, our Master’s Programmein Global Leadership continues to draw highlyskilled young professionals. To date, we have

World Economic Forum Annual Report 2006/2007 41almost 90 Fellows working throughout thevarious Forum departments. They are utilizingtheir skills and experience to engage withleaders to shape the global agenda.Under the guidance of a new dean, ProfessorGilbert Probst, the programme structurenow consists of two years of academiccourses with a third year dedicated to projectwork, leadership workshops, coachingand mentorship.Over the past year, Fellows have attendedcourses in a broad range of subjects,including decision-making, strategy, philosophy,international relations, coaching and executivecommunication. These classes were taughtby leading lecturers and tutors drawnfrom our Academic Partners, which areINSEAD, Columbia University and LondonBusiness School.We are confident that the experience theseFellows have gained from the Forum’sprogramme will position them to becomesuccessful and responsible global leadersin the future.World Economic Forum, ChinaChina’s emerging global leadership andinfluence are becoming increasingly importantto the business world, not least to Forummembers and partners. In return, in 2006/2007,the Chinese Government showed its recognitionof the importance of the World Economic Forumto global and national affairs by making it thefirst-ever international foundation to be legallyrecognized and registered in China.Through our Beijing Representative Office, weare developing and deepening our relationshipswith the National Development and ReformCommission, the Ministry of Foreign Affairs,the Ministry of Commerce, State CouncilInformation Office and other key ChineseGovernment ministries. In addition to thenational government, the Forum has establishedor strengthened relationships with other keybodies including key provincial and municipalgovernments, the China Council for Promotionof International Trade and national academicand media organizations.With a full-time staff of five, our Beijing officehas seamlessly integrated with the Forum’soperations in Geneva and New York. The Beijingteam supports outreach to Chinese Forummembers, potential members and GlobalGrowth Companies. This has resulted in anadditional 10 companies (including GlobalGrowth Companies) joining the World EconomicForum’s communities and activities sinceSeptember 2006.NationalityAmerican 28Argentinian 2Australian 4Belgian 3Brazilian 1British 24Canadian 7Chinese 5Croatian 1Danish 2Dutch 10Egyptian 1Ethiopian 2Finnish 1French 20German 22Greek 1Guatemalan 1Hungarian 2Indian 6Irish 4Italian 11Japanese 4Kenyan 2Latvian 1Lebanese 2Malagasy 1Malaysian 1Mexican 3Moroccan 3Nepalese 1New Zealander 1Nigerian 1Norwegian 1Pakistani 2Polish 3Portuguese 1Romanian 3Russian 2Singaporean 2Slovak 1South African 4South Korean 1Spanish 10Sri Lankan 1Swedish 7Swiss 52Thai 1Tunisian 2Ukrainian 1Venezuelan 1Average age 36The China-based team has created a solidfoundation for the Inaugural Annual Meetingof the New Champions, the first of which isheld in Dalian, China. We will continue toexpand our activities in China with thedevelopment of the Centre for Global GrowthCompanies and the increased engagement ofGlobal Growth Companies on a global basis.

World Economic Forum Annual Report 2006/2007 42WorldEconomicForum USAThe World Economic Forum USA has seena period of exceptional growth since startingoperations in 2006. Over this fiscal year, ithas moved into its own fully operationaloffices in mid-Manhattan, has seen thenumber of employees grow from four toover 25 and has almost doubled the numberof industry partnerships across the Centrefor Global Industries to 197.The World Economic Forum USA (‘Forum USA’)is the North American affiliate of the WorldEconomic Forum, which was founded in December2005 and serves as the global headquarters forthe Centre for Global Industries. The initial driveto establish a presence in North America stemmedfrom the desire to better serve our key membersand partners, coupled with the objective of betterintegrating industry and other expertise into ourgrowing organization. On both of these fronts,our ambitious expectations have been surpassed.At the beginning of this fiscal year in July 2006,Forum USA was still in its infancy, with fouremployees using borrowed office space fromPartner companies. Just one year later, we areproud to relay that we are occupying our new officespace in mid-town Manhattan with 25 full-time staff.As expected, the expanding team in New Yorkincludes new full-time colleagues with considerableindustry experience as well as temporaryemployees from Partner companies onsecondment. These new team members arecomplemented by several experienced WorldEconomic Forum employees who have crossedthe Atlantic to help establish operations in the USA.Klaus Schwab, staff and friends of the World Economic Forum USA ring the New York Stock Exchange Closing Bell

World Economic Forum Annual Report 2006/2007 43Our team today truly mirrors the involvementof the corporate world into our activities. Ourflagship Industry Partnership programme, underwhich we serve companies from both our NewYork and Geneva offices, boasts 197partnerships as of July 2007 – an increase ofover 80% from the previous year. Thesepartners span 17 industries, including fiveindustry groups which were based out of NorthAmerica during 2006–07: Banking & CapitalMarkets; Healthcare; Insurance & AssetManagement; Investors; and Media &Entertainment. As of July, global responsibilityfor an additional five industries has beentransitioned to NY as well: Automotive; Aviation,Travel & Tourism; Transportation Services; Foodand Beverage; and Retail & Consumer Goods.Over the past year, the Centre for GlobalIndustries has convened dozens of sessions inNew York and globally, ranging from structuredmeetings of multiple stakeholders to smaller,informal CEO dinners. Working groups onsubjects varying from Partnering AgainstCorruption to addressing the ramifications ofthe Globalization of Alternative Investments haveled to publications, public commitments fromparticipating companies, and practical solutionsto pressing societal imperatives such as ourWorking Towards Wellness effort.Jean-Pierre RossoChairman, Centre for Global IndustriesThe World Economic Forum USA is anindependent non-profit organization committedto improving the state of the world by engagingindustry leaders in partnerships to shape global,regional and industry agendas.Incorporated in December 2005 as a non-profitbusiness league based in New York, the WorldEconomic Forum USA is impartial and not-forprofit;it is tied to no political, partisan or nationalinterests. The Forum USA is an affiliate of theWorld Economic Forum, and its relationship isgoverned by an affiliation agreement, which is acontractual agreement under which the ForumUSA coordinates with the World EconomicForum when conducting its activities. The ForumUSA’s application for recognition of exemptionfrom income taxes under §501(c)6 of the USInternal Revenue Service code is currentlypending approval.The World Economic Forum USA’s New Yorkoffices serve as the global headquarters for theCentre for Global Industries. The Centre forGlobal Industries’ primary focus is the IndustryPartnership programme, which is aimed atengaging global companies in the Forum’sactivities at the industry level. This programmeenables participating corporations to contributeto an evolving portfolio of task forces andengage in specific meetings for designatedsenior executives. To date, 197 industrypartnerships have been signed representing184 companies which have formally joined theprogramme, including some which havesubscribed to multiple partnerships.For more information, please refer to:www.weforum.org/forumusaThe Board of Directors of the World EconomicForum USA oversees the overall business andaffairs of the organization. It currently comprises:Jean-Pierre Rosso (Chairman)Alfred BerkeleyWilliam GeorgeRajat GuptaJoe SchoendorfKevin Steinberg (Corporate Secretary).Day-to-day operations for the Forum USA areled by a Management Committee comprised ofits officers, which serves as its executive body.These officers are:John MoavenzadehSarita NayyarJean-Pierre RossoKevin Steinberg.In addition to the above officers, as of 1 Julythe World Economic Forum USA employed25 full-time staff.For more information about the Board, officersor staff, please go to www.weforum.org/usa/leadershipteamFinancial resultsThe Forum USA’s financial results for the 2006–2007 year have been consistent with its budget,resulting in a net loss of US$ 776,043 off fromUS$ 7,253,854 in revenues, despite significantstartup expenses and investments. All ForumUSA financials are reported in US dollars,consistent with US GAAP.The Forum USA’s primary source of financialsupport is membership/partnership dues paidby the Forum’s Industry Partners and IndustryAssociates. In addition, the Forum USA receivedan initial loan of working capital from the WorldEconomic Forum, which it expects to repay inJune 2008.The Forum USA’s financial results are audited byPricewaterhouseCoopers who examine both thebalance sheet and accounts. The 2006–2007figures follow:Year 2006/2007Total income* 7,253,854out of whichmembers’ fees 0participation fees 0partnership 6,109,192other income 1,144,662Total expenditure 8,029,897out of whichpersonnel costs 3,229,731office costs 500,504activity related costs 4,299,662Surplus (776,043)*all key figures in US$

World Economic Forum Annual Report 2006/2007 44OurfinancialresultsOur financial resultsIn 2006/2007, we achieved strong financialresults as income from all our initiatives andactivities continued to grow. We did not touchour reserve funds during the year, despiteinvesting a significant sum in the launch of ourGlobal Growth Companies. The most notablerevenue drivers continued to be the growingnumber of Forum members choosing to becomepartners and participating in our activities. In total,this trend added Sfr. 2,769,846 to our reserves.This figure was also due to important costreductions and efficiencies we achieved duringthe year. In finance, as throughout ourorganization, we aim for excellence and mostefficient use of the funds received.Financial policyThe World Economic Forum’s financial policystates that membership fees in principle shouldcover operational costs, that events are fundedthrough cost contributions and that projects aresupported by income from partnership contracts.The Forum may accept grants, donations,legacies and other contributions or subsidies thatare consistent with its purpose of ‘integratingleaders from business, politics and society at largeinto a community for global action committed toimproving the state of the world and the well-beingand prosperity of human society’. The WorldEconomic Forum makes no payments to politicalpersonalities, parties or other organizations andavoids involvement in national politics.AuditorsThe World Economic Forum’s financial resultsare audited by PricewaterhouseCoopers,who examine the balance sheet and accounts.The annual report, as well as all institutionaldocuments, are submitted to the SwissFederal Government, which in law actsas the supervisory body for the Foundation.Year 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007Total income* 66,454,727 74,058,911 83,336,839 104,766,543 114,574,874out of whichmembers’ fees 25,530,325 25,137,257 26,546,382 26,410,294 27,763,874participation fees 21,465,398 20,543,108 20,824,213 27,063,138 30,160,303partnership 17,390,452 24,552,385 31,035,927 44,668,943 50,881,934Total expenditure 66,454,522 72,307,790 82,083,503 102,735,578 111,805,027out of whichpersonnel costs 26,584,768 29,620,236 35,723,308 40,035,452 47,887,856office costs 8,360,352 9,044,738 9,253,213 12,537,175 11,884,632activity-related costs 31,509,401 33,642,815 37,106,982 42,732,347 52,032,539Surplus to be added to theFoundation capital 205 1,751,121 1,253,336 2,030,965 2,769,846Foundation capital 12,114,958 13,866,079 15,119,415 17,150,380 19,920,227Total stafffull time 130 134 162 204 247out of which seconded by Forum members 4 5 5 7 8part time 28 28 31 25 30*all key figures in Swiss francs

World Economic Forum Annual Report 2006/2007 45OurmissionandvaluesThe World Economic Forum is anindependent international organizationcommitted to improving the state of theworld by engaging leaders in partnerships toshape global, regional and industry agendas.Incorporated by Professor Klaus Schwab as afoundation in 1971, and based in Geneva,Switzerland, the World Economic Forum is impartialand not-for-profit; it is tied to no political, partisanor national interests.Our culture combines the best elements ofentrepreneurship with those of public service.Thus, our motto is ‘entrepreneurship in the globalpublic interest’.We cultivate public trust by never compromisingour institutional integrity. We constantly strive to winthe respect of our members and constituents byensuring everything we undertake is ‘first in class’.We can serve our communities best by makingourselves a role model for a highly interactive, openand fast learning community.Our mission is best realized through activitieswhich promote economic and socialdevelopment. We believe that economic progresswithout social development is not sustainable,while social development without economicprogress is not feasible.In addition to convening world leaders, the Forumaims to involve them in living communities ofcommon interest and purpose. The Forumensures substance in the form of strategic insightsand, where relevant, platforms for joint action. Tocarry out its mission, the World Economic Forumhas developed an integrated value chain byinvolving world leaders in communities, inspiringthem with strategic insights and enabling themthrough initiatives.Our vision for the World Economic Forum isthreefold. To be:The foremost organization which builds andenergizes leading global communitiesThe creative force shaping global, regional andindustry strategies for its communitiesThe catalyst of choice for its communities whenundertaking global initiatives to improve the stateof the world.The World Economic Forum enjoys unique globalpositioning by recognizing and responding totwo developments:The world’s key challenges cannot be met bygovernments, business or civil society aloneIn a world characterized by complexity, fragilityand ever-greater synchronicity, strategic insightscannot be passively acquired. They are bestdeveloped through continuous interaction withpeers and with the most knowledgeable peoplein the field (learning communities).For more information see www. weforum.orgSchwab Social Entrepreneur Bunker Roy, Founder and Director of the Barefoot College, builds the capacity and confidenceof illiterate and semi-literate unemployed rural youth to be “barefoot” professionals. Reaching over 500,000 poor ruralfamilies, Barefoot College solar engineers have installed solar photovoltaic home lighting systems and fabricated solarlanterns across 10 Indian states.

World Economic Forum91- 93 route de la CapiteCH – 1223 Cologny/GenevaSwitzerlandTel.: +41 (0) 22 869 1212Fax: +41 (0) 22 786 2744E-mail: contact@weforum.orgwww.weforum.orgThe annual report is available electronically atwww.weforum.org/annualreport – also in Arabic,Chinese, French, German, Japanese and Spanish versions.Designed and edited by Wardour Publishing & DesignPhotos by R. Kalvar (Magnum); Swiss Image