2 0 0 1 A N N U A L R E P O R T

The Asia FoundationWorking to build a peaceful, prosperous, and open Asia-Pacific community

Programs Offices

C O N T E N T S

1 A Heightened Stake in Growth and Stability

5 A Message from the Chairman of the Board and the President

6 Governance, Law, and Civil Society

10 Economic Reform and Development

13 Women’s Political Participation

16 International Relations

19 U.S.-Administered Programs

22 Environmental Protection

23 Information and CommunicationsTechnology

24 Financial Report

28 Donors

30 Officers and Trustees

32 Give2Asia

33 Staff

*In Taiwan, The Asia Foundation operates through a partnership with the Asia Foundation in Taiwan, a locallyincorporated nongovernmental, nonprofit organization.

A B O U T T H E F O U N D A T I O N

The Asia Foundation is a nonprofit, nongovernmental grantmaking organization committed to the development of a peaceful,

prosperous, and open Asia-Pacific region. The Foundation supports programs in Asia that help improve governance and law,

economic reform and development, women’s participation, and international relations. The Foundation gives priority to

strengthening leadership and the capacity of local organizations, as well as improving public policy. Foundation grants are

given for education and training, technical assistance, exchanges, policy research, and educational materials. Founded in 1954,

The Asia Foundation is headquartered in San Francisco, has 15 offices in Asia, and an office in Washington, D.C.

T H E A S I A F O U N D A T I O N P R O G R A M S A N D O F F I C E S

BangladeshCambodiaChinaEast TimorIndiaIndonesiaJapanKoreaLaosMalaysiaMaldives

MongoliaNepalPacific Island NationsPakistanPhilippinesSingaporeSri LankaTaiwan*

ThailandVietnam

AsiaBangkokBeijingColomboDhakaDiliHanoiHong KongIslamabadJakarta

KathmanduManilaPhnom PenhSeoulTokyoUlaanbaatar

United StatesSan FranciscoWashington, D.C.

Foundation Offices

P a c i f i c O c e a n

A Heightened Stake in Growth and Stability

In recent years, the relationship between economics and politics in Asia has become increasingly

complex. One must start with a vitally important fact. Asia’s political cultures derive from ancient

traditions, while Asia’s political institutions are a product of contemporary times. Asia’s rapid

economic development, meanwhile, has produced increasing diversity and mounting demands for

more accountable governments and greater attention to the voices of citizens. Old values have

been increasingly challenged, and in some countries extremism has become an increased threat.

The tragic events of September 11 reveal the critical importance of achieving both broad-based

economic growth and more responsive and effective governance, as well as increasing dialogue

between key groups in Asia and the United States.

The Asia Foundation is a leading nongovernmental organization working to address these

issues through four core programs: governance, law, and civil society; economic reform and devel-

opment; women’s political participation; and international relations. The Foundation assists by

supporting a broad range of programs and organizations in Asia, and by helping to identify and

train future leaders.

Rapid development inevitably brings diverse forms of conflict, spurred by the entry of new

elites into business, government, and civil society, and the discontent of others who feel they have

not benefited or have lost status as a result of economic and political change. These competing forces

have been at play in Asia for half a century. In those five decades, The Asia Foundation has worked

in close partnership with Asian institutions and individuals to promote broad-based economic, political,

and social development, and to prevent and manage conflict. Changes at the regional level have

also been profound, leaving the few existing regional institutions unable to keep pace.

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::2 The economic crisis of 1997–1998 brought many Asian economies to an abrupt halt, forcing

the nations involved to consider difficult but essential economic and political reforms. In some coun-

tries, the clash between deeply entrenched past practices and the new requirements of globaliza-

tion resulted in political crisis and instability. Increased demands for local autonomy and the weakness

of central governments often exacerbated problems.

The post-September 11 era in Asia offers two important lessons. First, local crises or conflicts

can have serious international implications and, conversely, global tensions can exacerbate conflict

within a given nation. Extremism easily crosses national boundaries; countering it requires a wide

range of responses, from the international to the local level. Second, whatever the source of extrem-

ism, it can best be countered by a combination of balanced growth and stability, as Asia’s recent

history has demonstrated.

C R I T I C A L N E E D S A N D P R A C T I C A L P R O G R A M S : : In contemporary Asia, peace and stability are

threatened by a wide range of ethnic, religious, and territorial disputes well beyond Afghanistan, in

countries such as Pakistan, India, Philippines, Indonesia, Sri Lanka, and Nepal as well as North and

South Korea, China, and Taiwan.

In Nepal and Sri Lanka, where courts are often clogged and inefficient, the Foundation

supports alternative mechanisms for dispute resolution. In Indonesia, the Foundation assists Muslim

organizations working to promote tolerance, from student councils in Islamic boarding schools to

groups working to ensure that shari’ah law in Aceh respects the rights of women.

Foundation programs also enable post-conflict societies to build new systems and assist

populations affected by the legacy of civil war. In East Timor, the Foundation is providing technical

assistance to help draft a new constitution. In Cambodia, 10 years after the 1992–93 peace accord,

Foundation programs are supporting Buddhist clergy to help mediate problems in territories which

were once held by the Khmer Rouge and are only now beginning to be integrated into the nation.

East Timor elections

e-Government project,Seoul, Korea

Street vendor, Vietnam

Legal research in Southeast Asia

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No less important are preventive measures to ameliorate the strains and dislocations of

rapid change, and to prevent escalation into greater conflict. The Foundation is assisting local groups

to ensure that women workers in southern China have access to legal aid, health care, and better

working conditions. Indeed, Foundation programs focusing on women are central to efforts in

conflict management, on the premise that women’s personal and political participation in their

communities is crucial to enable societies to move beyond intolerance.

To support the scaffolding needed for economic change in China and to facilitate China’s

further integration into the global economy, the Foundation is helping government specialists review

laws and regulations needed to enable China to comply with World Trade Organization standards.

Elsewhere, the Foundation is encouraging a wide range of unofficial dialogues related to the

issues of the Korean peninsula, Taiwan, and Kashmir, and other critical sources of regional tension.

C O M M O N C A U S E S A N D D I V E R G I N G V I E W S : : The events of September 11 provide both oppor-

tunities and challenges. Responding to the immediate challenges in South Asia, The Asia Foundation

expanded its presence and programs in both Afghanistan and Pakistan, and resumed programming

in India after a long hiatus. It provided critical funding to organizations assisting Afghan refugees

in Pakistan. Foundation staff have met with officials of the interim Afghan government and with

nongovernmental organizations to assess and organize immediate short term assistance efforts

and design long-term development programs.

University students, Kuala Lumpur, Malaysia

Laborer, Cambodia

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::4

Political alliances and alignments across the Pacific are being affected by the war on terror-

ism, sometimes in complicated ways. September 11 and subsequent events clearly demonstrate that

no region or country is immune to extremism. If this has become a common cause, however, it

can also become a basis for growing suspicions. One key challenge is to discourage monolithic

thought or unilateralism on the part of either Asian nations or the United States. This is a time

when mutual understanding and multilateralism in regional and global affairs are crucial.

The Foundation’s international relations programs bring together key actors from all sectors

and levels in Asia and the United States to focus on the prevailing issues and problems. These

activities range from high-level briefings for Asian leaders on Capitol Hill to study visits in the United

States for groups of Indonesian Muslim leaders and Vietnamese officials. These programs constitute

an essential complement to the Foundation’s resident programs in Asia, dedicated similarly to the

pursuit of economic growth, political stability, and increased mutual understanding in an era of

extraordinarily rapid change. �

Voting in Bangladesh

Trustee William H. C. Changat Vietnam Chamber ofCommerce and Industryconference

Newly sworn-in members of Thai Parliament

East Timor rally

A Message from the

Chairman of the Board of Trustees and the President

saddened by the passing of Jane Irwin after 21 dedicated

years on the Board. Other key trustees who stepped

down this year were Dolores Wharton, Laura D’Andrea

Tyson, who left to become Dean of the London Business

School, and Paul Wolfowitz and Henrietta Holsman Fore,

both of whom left to serve in the Bush Administration,

Wolfowitz as Deputy Secretary of Defense and Holsman

Fore as Director of the United States Mint. The Board

also welcomed four new members: Linda Tsao Yang,

former U.S. Executive Director at the Asian Development

Bank and currently special advisor at Lombard Invest-

ments; J. Stapleton Roy, former Ambassador to China,

Indonesia, and Singapore and currently Managing

Director at Kissinger Associates; Janet McKinley, Director

of Capital Research and Management Company; and

Robert Theleen, Chairman and Chief Executive Officer

of ChinaVest, Inc.

The Foundation is looking ahead to its 50th anniver-

sary in 2004. It will be an occasion not only to commem-

orate our past and present work, but to assess and

perhaps revise the Foundation’s directions in light of

Asia’s changing needs. It will be a chance to reconnect

with former staff, grantees, and friends in Asia and

the United States, and to engage with new partners,

donors, and supporters. Planning for the commemora-

tion has already begun and will continue in earnest

this coming year.

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( left to right)

William L. Ball, III, Chairman of the Board of Trustees

William P. Fuller, President

William P. FullerPresident

William L. Ball, IIIChairman of the Board of Trustees

It has been a sobering year, yet one whichstrongly reaffirms The Asia Foundation’s man-date: developing institutions of governance

that can effectively mediate competing interests;supporting civic participation and conflict resolu-tion; expanding economic opportunity; and promoting better understanding between theUnited States and Asia.

In 2001, we placed priority on addressing the con-

flicts affecting the region. In the process, we recognized

that many of the Foundation’s programs are fundamen-

tally aimed at the conditions of exclusion and poverty

that give rise to conflict and extremism. These programs

include logistical support for democratic elections,

funding for nongovernmental organizations, including

an emphasis on women’s rights and participation, and

technical assistance to create transparent legal systems

and government. On the economic front, Foundation

programs help remove regulatory obstacles for small

businesspeople, promote trade to create jobs, and address

perceptions of inequity that erode public faith in the

business sector. We also put great emphasis on conven-

ing the major actors in the Asia-Pacific region for dialogue

and exchanges that are essential to keeping the lines

of communication open in volatile periods.

The Foundation’s Information and Communications

Technology (ICT) program developed into a major area

of activity this year. With applications in all program

areas, technology is a formidable tool for political parti-

cipation and access to government, as well as a source

of economic opportunity. Other highlights included the

first full year of operation of our office in Hanoi, and

the resumption of programming in India. As the fiscal

year ended, we redoubled our efforts in Pakistan, where

we have been one of the few American organizations

with a significant presence since 1995.

The challenges facing Asia have caused our pro-

grams to grow in scope and complexity. Building on our

federal funding, we have developed complementary

partnerships with private corporations and foundations.

We are also creating new structures that extend our

existing funding, such as Give2Asia, which facilitates

philanthropic giving to Asia.

Internally, it has been a year of transition as well:

William L. Ball, III became Chairman of the Board as the

term of Chang-Lin Tien came to an end, and we were

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::6

Governance, Law, and Civil Society

The year 2001 saw important advances toward good governance and the rule of law

in many Asian countries. In South Korea and Thailand, reformers pressed ahead in

consolidating democratic gains and constitutional reforms, despite significant political

resistance. China’s accession to the World Trade Organization (WTO), with its compliance

requirements for administrative and legal reform, presents opportunities and challenges

as the country attempts to modernize its economy in the context of globalization. In the

Philippines and Indonesia, corruption scandals led to a loss of citizen confidence that ulti-

mately brought down both presidential administrations. East Timor, the newest nation in

Asia, appeared off to a good start on the road of independence and democracy following a

remarkably peaceful election in August. In South Asia, Bangladesh held a relatively fair third

democratic election, although not without violence, and the people of Sri Lanka elected a

new Prime Minister who pledged to negotiate with the Tamil Tigers guerrilla movement for

a settlement. Despite the difficulties in Pakistan after September 11, the new military gov-

ernment pressed forward with plans for decentralization and elected local government.

These steps toward more effective and stable democratic governance, however, were

marred in some countries by increasing ethnic, sectarian, and territorial conflict, particularly

across the southern tier of Asian nations from Afghanistan to the southern Philippines. The

year saw both sporadic outbreaks of violence and sustained separatist insurgencies, including

an accelerating Maoist guerrilla movement in Nepal.

The Asia Foundation responded by continuing to support efforts to strengthen the rule

of law and promote governance that is participatory, accountable, and transparent, while

increasing our emphasis on helping societies manage internal conflict.

C O N F L I C T M A N A G E M E N T

To address the challenges of conflict, the Foundation embarked on a greatly expanded

conflict prevention and management program supported by the Hewlett Foundation.

In Indonesia, work continued on the promotion of democratic values throughout both

religious and secular components of civil society. Conferences in the Mindanao region of

the Philippines focused on peace and development, land dispute committees were extended

across Mongolia, and village-level mediation was strengthened in Sri Lanka and Nepal.

R U L E O F L A W

A well-functioning legal system plays an important role in advancing broad-based develop-

ment. Foundation support for legal systems development and reform efforts include judicial

administration, legal education, community legal assistance, and alternative dispute resolution.

A fair and responsive government and an actively involved citizenry

are twin pillars of open and productive societies.

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: : I N D O N E S I A

Introducing Civics inIslamic Education

In 46 state Islamic colleges and universities throughout Indonesia,

students are now taking a pioneering course in basic civic educa-

tion that covers such issues as citizenship, human rights, religious

and ethnic tolerance, democratic processes, women’s rights, and

the role of civil society. Following a pilot program on the Jakarta

campus of the State Institute for Islamic Studies (IAIN) in 2000

supported by the Foundation’s Indonesia office and with funding

from the U.S. Agency for International Development, the course

was dramatically expanded in 2001 and now reaches 8,000 stu-

dents nationwide. The program’s purpose is to create a replace-

ment for the previously mandatory ideological indoctrination

courses left over from the New Order period with a new curricu-

lum designed to strengthen long-term tolerance and responsible

citizenship.

Several other educational institutions have recently begun

to follow the IAIN’s lead in civic education programming. For

example, the Muhammadiyah university system—a private Islamic

educational system which enrolls 10.5 percent of all university

students—is poised to launch, with Foundation support, its own

pilot civic education program on three campuses in early 2002.

Further efforts are being made to prepare the ground for a more

comprehensive program the following year.

The IAIN course, presented at a Foundation-supported

conference of educators, is attracting the attention of reform-

minded educators throughout the country. Since the IAIN network

has a long history of producing top-level government officials and

civil society leaders, many well-placed proponents have already

confirmed their support of the program’s continuation. The

Ministry of Religious Affairs, which oversees the IAIN network,

is expected to assume financial responsibility for the course over

the next two years. Meanwhile, the IAIN civic education team

is preparing to adapt its curriculum for Islamic junior and senior

high schools.

: : C A M B O D I A

Instilling Respect for Human Rights

In concert with the Cambodian Institute for Human Rights

(CIHR), The Asia Foundation, with funding from the U.S. Agency

for International Development, has worked to promote and sup-

port a culture of respect for human rights and the rule of law in

Cambodia. In addition to continuing support for major human

rights groups such as the CIHR, the Foundation has focused,

through the Ministry of Education, on developing a human rights

curriculum in Cambodia’s schools and training teachers to use it.

Since 1995, the Institute has trained more than 38,000 teachers

and hopes to reach all of Cambodia’s 80,000 teachers within

three to five years. The Institute is also exploring the possibility

of expanding its teaching methodology to train teachers and

monks in the country’s Buddhist schools. By reaching out to a

new generation of Cambodians in the schools, the CIHR is taking

major steps toward assisting the country in building respect for

human rights and law, and peacefully resolving conflicts.

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: : E A S T T I M O R

Furthering a New Nation’s Self-governance

In the months preceding East Timor’s first democratic elect-

ions in August, 2001, the Foundation supported a number of

voter education and election monitoring programs that not

only contributed to the free and fair election of a Constituent

Assembly but laid important groundwork for the drafting of

the new country’s constitution. After supporting programs in

East Timor for a decade, the Foundation established an office

in Dili in December, 2000. The immediate focus was voter

education in preparation for the August election and early

support for the constitution-drafting process, which began

with a grant to the Jurists’ Association of Timor Lorosa’e.

The Foundation, in collaboration with the East Timor

NGO Forum, conducted the first-ever nationwide survey to

assess East Timorese political knowledge and opinions, carried

out in 196 villages in all 13 districts. The survey revealed that

fewer than 15 percent of respondents understood what the

election was for, and was critical to framing the content

of voter education programs. Foundation support covered the distribution of 30,000 posters,

training in election monitoring to over 80 percent of domestic election observers, creative

voter education initiatives, such as concerts by East Timorese musicians, and establishment of

a website, www.easttimorelections.org, that served as an election information and photo

clearinghouse.

The election drew 91.3 percent of eligible voters, and resulted in 88 new assembly

members. Following the election, the majority of the organizations involved in election moni-

toring received training, supported by the Foundation and with funding from the U.S. Agency

for International Development, to conduct an “Assembly Watch” program to observe the

constitution-drafting process. This is one of several initiatives in a 14-month Constitutional

Development Program supported by the Foundation to provide technical assistance and

resources to the Constituent Assembly and to the future legislative body of East Timor. These

include the provision of constitutional specialists, legal research material, and staff to assist in

the drafting process. Other projects include workshops on comparative constitutional models

and a wide range of public forums and private discussions with political party leaders. All of

these steps are designed to prepare the territory, currently administered by the United

Nations, for independence in May 2002.

In China, the Foundation focused on administrative law reform, advancing the establishment

of legal aid centers at the provincial and county levels, and providing training opportunities

to Chinese legal officials responsible for compliance with WTO regulations. To strengthen its

extensive legal reform program in Indonesia, the Foundation conducted a national survey of

public attitudes toward the justice sector in the resolution of disputes, providing an important

perspective on the expectations of ordinary citizens. In Pakistan, the Foundation began imple-

mentation of an Asian Development Bank-funded project to improve access to justice,

judicial training, legal education, and economic law reform. In Cambodia, the Foundation

contributed to the formulation of new legislation and legal codes in several critical areas.

C O U N T E R - C O R R U P T I O N

Systemic corruption distorts economic growth and imposes particularly severe consequences

on the poorest communities. In Thailand, the Foundation worked to strengthen the role

of the National Counter Corruption Commission, while in the Philippines, activities centered

on building business and civil society alliances in support of counter-corruption reforms.

Voters lined up in Liquica to

cast ballots for the Constituent

Assembly.

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In 2001, the Foundation also moved to integrate e-Government in the fight against corrup-

tion and began implementing a series of country-specific workshops on the issue.

C I V I L S O C I E T Y

Recognizing that citizen participation is fundamental to good governance, the Foundation

continued its long-term commitment to supporting civil society groups—including non-

governmental organizations, community groups, business and professional associations,

and the media—to advance social and economic reform. In addition, the Foundation

maintained its strong support for the Asia Pacific Philanthropy Consortium, which seeks to

improve the capacity of Asian nonprofits to raise funds locally and in the process expand

Asian philanthropy.

H U M A N R I G H T S

Safeguarding human rights is an important element in the Foundation’s programs in a num-

ber of countries. In Indonesia, this includes support for human rights education, monitoring,

and reporting. In Sri Lanka and Thailand, Foundation assistance increased the capacity of

key institutions to monitor and improve human rights guarantees. Regionally, the Founda-

tion continued to support the ASEAN Human Rights Working Group and to increase the

number of Asian human rights law specialists through scholarships to the University of

Hong Kong graduate program in human rights.

L O C A L G O V E R N A N C E

For many years, the Foundation has helped to strengthen local government institutions

and processes, recognizing that this is the level at which the state has the greatest impact on

citizens’ lives. Today in many Asian countries, previously centralized governments are in fact

devolving more responsibilities and authority to the local level. In Korea, the Foundation

supported a Seoul National University review of post-authoritarian local government devel-

opment, and an assessment of the impact of local democracy on local institutions. In

Vietnam, the Foundation assisted government efforts to implement regulations that would

give citizens a greater voice in local planning and decision-making.

E L E C T I O N S

The Foundation has long supported government and civil society efforts to conduct free

and fair elections in Asia. The Foundation has pioneered advanced empirical survey tech-

niques aimed at identifying citizen attitudes and knowledge about elections and democracy.

This information can then assist in the design of effective follow-up electoral programs,

and domestic election observer training. In 2001, this was the approach taken in East Timor,

Bangladesh, Cambodia, and Sri Lanka. �

The Foundation works to strengthen local government, the level at

which the state has the greatest impact on citizens’ lives.

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Economic Reform and Development

The global economy was characterized by growing uncertainty in 2001, with the

economic slowdown in the United States depressing growth rates across much of

Asia even before the events of September 11. The year saw a number of important

positive economic developments in Asia, including the accession of China and Taiwan to

the World Trade Organization (WTO), an agreement on a new round of negotiations for the

WTO, and the conclusion and ratification of a bilateral trade agreement between Vietnam

and the United States. But even while these events promise increased trade and investment

for the region, the U.S. recession, coupled with continued stagnation in Japan, highlights

the need for economic reforms to stimulate new sources of economic expansion.

Encompassing almost two-thirds of the world’s poor, Asia faces enormous challenges

in improving its citizens’ well-being. While generating market-led economic growth is an

effective means of reducing poverty, the reform process often creates new tensions, as

entrenched interests struggle to maintain their privileges. Although economic reform is often

treated as a technical process, it is this political dimension which allows non-competitive,

inefficient arrangements to persist. Within this context, The Asia Foundation supports a

diverse range of partners from the private, public, and nonprofit sectors to encourage

broad-based economic reform geared toward improving prospects for growth and employ-

ment for Asia’s citizens.

C R E A T I N G A B U S I N E S S E N V I R O N M E N T

C O N D U C I V E T O S M A L L B U S I N E S S

In every economy, small and medium enterprises play a central role in job creation and

economic growth. This is particularly true in developing economies, where small businesses

make up between 70 and 90 percent of all enterprises. Unfortunately, in many countries,

the sector is often constrained by government policies designed to protect large and

inefficient state-owned operations and powerful conglomerates. In Indonesia, research

supported by The Asia Foundation demonstrated that a hostile regulatory environment, such

as conflicting or burdensome licensing procedures or arbitrary action by officials, is often the

most critical constraint to small business growth. To address these regulatory impediments,

the Foundation assisted small business, business associations, and government officials to help

streamline regulations and approval processes, thereby stimulating a business environment

conducive to growth. This work, based on the premise that small businesses are both strong

and dynamic, is very different from more traditional programs that seek to strengthen these

firms while leaving the distorted business environment unchanged.

A dynamic private sector governed by transparent economic policies

is critical to generating growth and reducing poverty.

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: : C H I N A

Complying with WTOLegal Standards

In 2001, China entered the World Trade Organization (WTO) after

15 years of negotiations. It now faces the challenge of establish-

ing and administering the equally difficult legal institutions,

procedures, and norms that WTO membership requires. China

must apply and administer in a “uniform, impartial and reason-

able manner” all trade-related laws, regulations, and measures at

both the national and sub-national level, an especially daunting

task at the provincial and municipal levels.

To support China’s efforts in meeting these standards, The

Asia Foundation, in cooperation with Chinese institutions that

include the National School of Administration and the Legal

Affairs Office of the State Council, has initiated a WTO legal com-

pliance project that focuses on administrative law. Over the past

year, the Foundation sponsored an international conference in

Shanghai on the administrative law implications of WTO member-

ship and a smaller consultation on the same topic with the State

Council Office of Legal Affairs. At the same time the Foundation

supported initial research by the China Administrative Law Research Society on a new Admini-

strative Procedure Act, passage of which will greatly facilitate and accelerate China’s ability

to meet WTO legal standards of transparency and predictability.

These projects grew out of the Foundation’s continuing assistance to China’s admini-

strative law reform program. This, in turn, has spawned a major proposal for a nationwide

Foundation-generated program to train some 40 top legal affairs officials, drawn from every

province and major city in China, in WTO legal administration and compliance practices. With

the guidance of Professor Stanley Lubman, a China law scholar and practitioner who is the

Foundation’s China administrative law project director, a sophisticated and practical year-

long training program has been designed and is poised for implementation.

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In Vietnam, the Foundation supported workshops on two fronts: implications of the

bilateral trade agreement, and public-private policy discussions on regulatory barriers to

small business. In Indonesia, a 10-city survey comparing area business environments was

the first of its kind to demonstrate how the country’s decentralization affects small business.

A regional survey is now identifying barriers to the use of e-Commerce by small business

in Indonesia, Thailand, Sri Lanka, and the Philippines. Related activities were also undertaken

in Bangladesh, Cambodia, Mongolia, and Nepal.

P R O M O T I N G C O R P O R A T E G O V E R N A N C E R E F O R M

The 1997 financial crisis exposed the costs of weak corporate governance practices in Asia.

Needed reforms focus on opaque financial reporting, management unresponsive to minority

shareholders, weak regulatory oversight, and collusive relationships among governments,

banks, and commercial firms. Addressing these issues will be critical to attracting much-

needed foreign investment and repairing domestic capital markets. Korea, where significant

reforms in corporate governance have been achieved, has seen a commensurate and strong

economic revival in its capital markets. In contrast, countries that have tried to bail out

domestic banks without reforming the underlying structures have found that bad loan

practices quickly re-emerge.

Higher levels of trade and investment

from WTO membership will help create

jobs, such as these at a joint venture

garment factory in Guangdong province.

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2

One way to create incentives for better business management practices is to increase

the amount of information available to current and potential investors. To this end, in 2001

the Foundation provided support to the People’s Solidarity for Participatory Democracy, a

minority-shareholder rights group in Korea, and the Asian Corporate Governance Associa-

tion in Hong Kong to establish websites serving as information clearinghouses and linking

parties interested in Asian corporate governance. The Asia Foundation also supported Asian

participation in a global workshop on corporate governance organized by the Organiza-

tion for Economic Co-operation and Development (OECD). In a related effort focused on

improving transparency, the Foundation supported a workshop exploring potential uses

of Japan’s new freedom of information law.

S U P P O R T I N G R E G I O N A L E C O N O M I C I N I T I A T I V E S

The Foundation is also active in supporting regional mechanisms, such as the Asia Pacific

Economic Cooperation (APEC) forum, which helps boost international economic coopera-

tion and stimulate domestic reforms. In 2001, the Foundation assisted the Foundation

for Development Cooperation (FDC) in organizing and conducting meetings among China,

the government which held the rotating APEC chairmanship, and Asia-Pacific scholars to

develop an agenda on economic and technical cooperation activities for the APEC summit.

The Foundation also provided support to the Pacific Trade and Development Conference

(PAFTAD), an annual regional forum for economists to study the dynamics of trade

liberalization. �

: : N E P A L

Leveling the Playing Field for Smalland Medium-sized Businesses

Since over 90 percent of Nepal’s industrial base is composed of small and medium-sized

enterprises (SMEs), The Asia Foundation in 2001 concentrated on two fronts: the education of

business owners, and efforts to overcome uneven and unpredictable application of government

rules and regulations. Though the rules are generally well written, small business owners

lack assurances of even-handed treatment, while micro-

enterprise owners are often hampered by their own

limited knowledge of business procedures.

Ajay Ghimire, an MIT-educated entrepreneur and

CEO of Ace Finance, is illustrative of the regulatory obsta-

cles Nepalese businesspeople face. Despite assurances

that he and others would be consulted on regulations

affecting their businesses, he has been unable to procure

a copy of a draft document issued by the federal bank-

ing authorities on a wide range of new regulations.

The Nepali Company Act, meanwhile, prevents companies

such as his from raising new capital by sales or transfers

from existing shareholders. Efforts to broaden these rules,

he said, have fallen on deaf ears.

This and similar stories underlie Foundation efforts

to support a more transparent business environment for

small and medium-sized businesses in Nepal. One major

initiative was a National Conference on SME Develop-

ment, which the Foundation assisted the Center for Development and Governance in organiz-

ing. Out of the conference came the joint public-private “Kathmandu Declaration 2001” which

recommended a variety of fiscal and regulatory reforms, with particular attention to taxation,

linkages between multinational companies and local SMEs, and strategies to encourage

women’s participation in small business.

The national conference on

SME Development drew entre-

preneurs and leaders from

banking, government and key

industrial sectors.

Women’s Political Participation

In many parts of Asia, the tensions created by rapid social and economic change pose

particular challenges for women. Given the historic exclusion of women from the decision-

making process, strategies to promote womens’ rights, by necessity, have become increas-

ingly creative and sophisticated. The Asia Foundation’s Women’s Political Participation

program (WPP), devoted to developing women’s leadership skills and expanding women’s

participation in public decision-making, is at the forefront in supporting these strategies.

Through the many community-based women’s rights programs it supports, WPP is active in

helping develop approaches to reform that transform potential conflict into constructive

debate and citizen engagement. In Indonesia, for example, the Foundation has assisted

efforts to bring grassroots coalitions with a tradition of protest into contact with urban

policy and women’s rights organizations to focus attention on budget issues such as housing,

health care, and police protection. In the past, neglecting such coalition-building led to

divisions and conflict among competing civil society groups and the state. The success of

future efforts depends on alliances with diverse sectors of society that share common goals.

A D V O C A C Y A N D L E A D E R S H I P

The Foundation is committed to building women’s leadership skills to address political

and economic problems, including the pressing religious, ethnic, and internal conflicts in

parts of Asia today. Foundation programs enable women’s and other citizens’ groups to

identify and solve social problems that are often linked to larger conflicts. In the Philippines,

for example, the Foundation is supporting community groups, including women, in the

Muslim region of Mindanao that are working to establish constructive dialogue with local

government regarding the allocation of public resources.

The Foundation supports programs for elected and potential women leaders in build-

ing constituencies and coalitions, both within their countries and with women’s groups

worldwide. Foundation programs foster leadership skills through curriculum development,

campaign management, and training for women candidates and newly elected leaders.

In Vietnam, the Foundation is supporting efforts of the Vietnam Women’s Union to provide

non-partisan training to women to run for positions in local government. Their representa-

tion has increased dramatically in areas where training has taken place. In Mongolia,

Foundation-funded programs during parliamentary and local elections have encouraged

women to run for office, improved their campaign strategies, and promoted positive

images of women candidates among voters.

We are committed to increasing the participation

of women in decision-making at all levels.

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Supporting Women in Successful Bids for Public Office

In Thailand in 2001, the proportion of women in the House of Represen-

tatives tripled to 9.4 percent from less than 3 percent in the previous

decade. In less than four years, meanwhile, the number of women elected

to office at the local level rose from 1 to 8.5 percent, and at the provincial

level from less than 1 to 6.3 percent. Perhaps most dramatic is the tremen-

dous impact of candidate and voter education programs: in areas where

such efforts were undertaken, the number of women elected to office

reached 14 percent. It is significant that more than half of the women

elected in 2001 graduated from candidate training programs developed

by Thai partner organizations with The Asia Foundation.

This advance, in a country where opportunities for women’s political

participation have been limited, reflects a successful strategy of integrating

gender issues with civic/voter education programs. Addressing the traditional

under-representation of women in Thailand’s Parliament, the Foundation

supported programs to provide non-partisan training to potential women

candidates, offer civic education, and promote debate on issues of interest to

women. Since the early 1990’s, these programs have been developed in coop-

eration with such organizations as the Women in Politics Institute, the Gender

Development Research Institute, and the Women Local Leaders Program.

These electoral successes build on careful institutional work as well.

In 1996, the Foundation assisted 45 Thai organizations in forging the

Women and the Constitution Network (WCN) to ensure representation of women in Thailand’s

Constitutional Drafting Assembly. After successfully incorporating women’s rights and interests

in the 1997 Constitution, the WCN turned its attention to promoting the development of

women candidates to pursue the rights secured in the Constitution. As a result, for the first

time in Thai history, candidates for office in 2001 were obliged to focus on issues of concern

to women, such as domestic violence and trafficking of women and children.

B A S I C R I G H T S A N D S E C U R I T Y

Violence against women is cited by women across Asia as one of the most serious issues

they face. As part of its basic rights and security program, The Foundation supports solu-

tions that approach many aspects of the problem, from domestic violence to the trafficking

of women and children. In Sri Lanka, the Foundation is assisting local partners to systemati-

cally document human rights violations of women, including the prevalence and nature of

domestic violence. In Cambodia, the Foundation supported a study exposing weak enforce-

ment of laws to protect women and girls from violence. The Foundation’s Cambodian

partners are using the report as an advocacy tool to increase government accountability for

enforcement of laws that, in theory, protect women from human rights abuses. To improve

the care and protection of abused women in China, the Foundation supports a women’s

domestic violence hotline at the Shaanxi Women and Family Research Center and has also

sent Center staff to observe the effectiveness of coordinated community-wide programs

in the Philippines.

The trafficking of women and children, meanwhile, exploits the most vulnerable groups

in society. Foundation programs focus on research, public education, legal rights training,

legal aid, and cross-border coordination to bring traffickers to justice. In 2001, the Foundation

conducted the first study on trafficking between Nepal and India, documenting the scope

of the problem and assessing the effectiveness of governmental and nongovernmental

responses.

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Supporters hung posters describing

women candidates’ backgrounds

and political positions during the

2001 legislative campaign.

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: : P A K I S T A N

Bringing Education and Opportunity to Women

In the North West Frontier Province of Pakistan, one of the country’s most conservative tribal

regions, a remarkable nongovernmental organization called “Khwendo Kor” (“Sisters’ Home”

in the Pushto language) is improving the daily lives of women and children through the tire-

less efforts of its dynamic founder, Mariam Bibi. Bibi, with The Asia Foundation’s support since

1996, has worked in often hostile conditions to expand education, development and micro-

finance opportunities for women. Her pioneering work in opening 60 community schools in as

many villages, and providing education to girls who are traditionally not allowed outside

their homes, has brought her numerous awards, including United Nations honors “for her

outstanding and courageous work for women’s empowerment in rural Pakistan.”

When Khwendo Kor faced a funding crisis in 1996, the

Foundation stepped in to fill the gap, prompting Bibi to state

that “our credibility and survival were at stake. . . The Asia

Foundation supported us at a very crucial stage.” With funding

from the U.S. Agency for International Development and institu-

tional support from the Foundation, Khwendo Kor has now estab-

lished more than 100 schools in the four districts of the North

West Frontier Province, and has expanded its partnership with

the Foundation to include further education, preventive health

care, and microfinance projects.

A key to Khwendo Kor’s success lies in Mariam Bibi’s philo-

sophy of building “a gradual rapport and trust within the commu-

nity.” Says Bibi: “We want to reach our objectives without causing

an imbalance in the communities we work within.”

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E C O N O M I C O P P O R T U N I T I E S

Women are disadvantaged in some Asian societies by numerous obstacles to their ability

to earn an income—a situation that only worsens during periods of conflict and economic

crisis. Foundation programs help women to assert and protect their rights by challenging

discriminatory laws and practices through legal aid, negotiation, and networking skills.

With Foundation support, a legal aid organization filed lawsuits and won cases on

behalf of Bangladeshi women workers for a host of employer violations of labor laws.

In Mongolia, the Foundation supported the Women’s Council of South Gobi province in

its efforts to improve local business conditions for women. The Foundation also sent

staff to Vietnam from the Rural Women Knowing All Magazine, a leading Chinese non-

governmental organization, to share information about their microcredit programs for

poor rural women. �

Mariam Bibi

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International Relations

Driven by American resolve to respond to terrorism, the geopolitical environment of

Asia is fundamentally shifting. Crucial Asian fault lines between secular and religious

views, elites versus the poor, and regional and power relations and interests are

all being tested. The stakes are high and complex. The United States’ reinvigorated interest

in Asia can contribute to peace and greater stability in the region.

The Asia Foundation’s 15 offices throughout the Asia-Pacific region provide access to

an extraordinarily broad range of current and emerging national players, allowing a unique

perspective on the forces at work within Asian societies. Our local presence gives a window

through which to observe and help understand the dynamics and complexities of recent

changes, as well as an appreciation of the repercussions of those changes on international

affairs. As a trusted nongovernmental actor, the Foundation is able to bring together key

Asian and American leaders from different institutions, countries, and points of view to

discuss a wide range of issues in a balanced, considered, and constructive manner that fosters

dialogue and understanding.

‘ A M E R I C A ’ S R O L E I N A S I A ’

In 2001, the centerpiece of this effort was the America’s Role in Asia project, which

brought together groups of senior American and Asian foreign policy specialists for a

thorough review of major issues in U.S.-Asian relations as a contribution to the incoming

American Administration. In February 2001, The Asia Foundation published the reports

and recommendations of both groups. In addition, key members of both groups met in

Seoul, Korea, to explore both shared views and differences of opinion concerning regional

security, economic, and political issues.

E A S T A S I A

The rise of China, Japan’s continuing economic difficulties, and the relationships of both

countries to a militarily and economically powerful United States are crucial factors affecting

stability and security in the region. In this regard, the Foundation has long supported dia-

logues and exchanges among foreign policy and security specialists from the United States

and the countries of East Asia. Programs in the past year included an ongoing trilateral

security conference involving security specialists from the United States, Japan, and China;

a regional security conference on The Future of the Korean Peninsula, held at Fudan

University in China; continued support for the U.S. National Committee of the Council for

Security Cooperation in the Asia-Pacific (CSCAP); a Trilateral Conference on Security in

The United States has a profound interest in seeing that events in

Asia continue down the path of progress and regional peace.

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: : C H I N A / U N I T E D S T A T E S

Explaining America to Currentand Future Leaders

For more than 20 years, through all the ups and downs in Sino-

American relations, The Asia Foundation has remained committed

to its successful exchange programs between the two countries,

which last year included sponsorship of five young officials from

China’s Ministry of Foreign Affairs. Led by the Ministry’s Director

of U.S. Affairs, the study group to the U.S. not only met with a

variety of individuals and organizations, but sampled slices of

Americana that included country meetings with rural charities,

home-stays with farm families, and meetings with farm labor.

In a U.S. geography sampler that took the young diplomats to

Washington, D.C.; Williamsburg, Virginia; Raleigh and Rocky

Mount, North Carolina; as well as to Sacramento and Silicon

Valley, California, the Chinese visitors had the opportunity to

discuss a variety of issues related to free trade, globalization, and

the role of the World Trade Organization. The tour also included

seminars, one-on-one policy discussions, and meetings with

high-tech entrepreneurs.

The Foundation also continues to sponsor year-long formal graduate study and intern-

ship programs in the United States for members of the Chinese foreign affairs community, with

support from the Freeman Foundation, the Chinese Ministry of Foreign Affairs, and The Asia

Foundation. Four Foreign Affairs Ministry Fellows successfully pursued degrees at The Fletcher

School of Law and Diplomacy at Tufts University, the Paul H. Nitze School of Advanced

International Studies at the Johns Hopkins University, and the Elliot School of International

Affairs at George Washington University.

In 2001 the Foundation also launched its L.Z. Yuan Fellowship in Media and Foreign

Affairs, in honor of the Foundation’s longtime Senior Advisor for China Programs. The first

recipient was a young international news producer at China Central Television who spent an

academic year at the Fletcher School of Law and Diplomacy, interned at CNN in Atlanta for

a month, and visited numerous media offices in the U.S.

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Northeast Asia conducted by the Korea National Defense University; and a program of

conferences and exchanges on the Taiwan issue in U.S.-China relations, in cooperation with

the Shanghai Institute of International Studies. In addition, the Foundation’s Japan office

continues to organize a regular public policy series that addresses a broad range of issues

important to U.S. and Japanese interests.

S O U T H A S I A

In 2001, the Foundation began to expand its International Relations program in South

Asia. The Foundation supported an Indian diplomat for a six-month fellowship program in

regional security and foreign policy studies at the Center for Strategic and International

Studies in Washington, D.C. The Foundation also supported research on the political, eco-

nomic, and security repercussions of nuclear proliferation on the subcontinent. To comple-

ment official diplomacy between India and Pakistan, the Foundation enabled ten Pakistanis

to travel to India to attend a Pakistan-India People’s Solidarity Conference that focused on

providing their country’s leaders with citizen perspectives on the issues of nuclear weapons,

democracy, and Kashmir.

Young Chinese diplomats observed a

CPR training session at a Red Cross chapter

in North Carolina.

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S U P P O R T I N G C I T I Z E N I N V O L V E M E N T

A N D C A P A C I T Y B U I L D I N G

Foreign policy dialogue has expanded to include citizens’ organizations and businesses

operating outside the public sector. This past year, the Foundation supported 30 individuals

from Indonesia, Thailand, the Philippines, and Cambodia to attend the First ASEAN “People’s

Assembly.” Among the issues covered in the two-day meeting were the empowerment

of women, role of the media, human rights, poverty, the environment, education, the role

of civil society, and good governance—all issues in which the Foundation has been involved

for more than four decades. The Assembly was the most significant attempt to date to

provide constructive nongovernmental input into the discussion of ASEAN’s future direction.

In addition to supporting conferences and dialogue on key foreign affairs issues,

the Foundation also provides grants for graduate degree scholarships, short-term training

opportunities, study tours, and research support that contributes to the growth of a profes-

sional foreign policy community in countries where the Foundation operates. Longstanding

efforts to improve U.S.-China relations include fellowships and study tours to the United

States for Chinese diplomats, military officers, scholars, and journalists. With support from

The Henry Luce Foundation, the Foundation is also providing opportunities for Vietnamese

foreign policy professionals to visit the U.S. for study tours and research affiliations at

American universities. �

: : V I E T N A M / U N I T E D S T A T E S

Understanding the DomesticDimensions of Policy

The U.S.-Vietnamese relationship is poised to deepen economically and politically.

Shortly after Vietnam’s National Assembly ratified the Bilateral Trade Agreement

in the fall of 2001, a well-timed conference organized by The Asia Foundation

and Vietnam’s Institute for International Relations attracted significant atten-

tion to the topic of ‘Foreign Policymaking in the United States and Vietnam:

The Domestic Dimension.’ The conference examined the social and institutional

influences on foreign policy-making in each country at a time in which the

international context has changed and economic relations are expected to

expand greatly. Participants included a 12-person Vietnamese delegation from

the Institute for International Relations, the Ministries of Foreign Affairs and

Trade, the National Assembly, and the Chamber of Commerce and Industry,

along with two dozen American participants from the Bush Administration,

Congress, business, policy, and academic communities.

A study tour following the conference gave the Vietnamese delegation

further opportunities to discuss issues of mutual interest with representatives

from the U.S. Department of State, the Office of the U.S. Trade Representative,

Congressional staff, the U.S. Chamber of Commerce, RAND Corporation, and

the Paul H. Nitze School of Advanced International Studies at the Johns

Hopkins University. Topics included trade relations, human rights, and changes

in U.S. security policy in Asia since September 11. Both the conference and

study tour provided the Vietnamese delegation with nuanced perspectives

of the determinants of U.S. foreign policy, demonstrating the complexity of the process and

the involvement of numerous nongovernmental players.

These activities are part of a larger three-year project, with generous support from The

Henry Luce Foundation, aimed at promoting greater understanding between Americans and

Vietnamese about domestic conditions and international factors that affect bilateral relations.

Educational exchanges are also underway, including research affiliations in the U.S. for

Vietnamese foreign policy professionals, summer internships in Vietnam for American graduate

students of international affairs, and research grants in Vietnam for American academics.

U.S.-Administered Programs

A S I A N - A M E R I C A N E X C H A N G E

Direct people-to-people programs are among the most fruitful exchanges of ideas and

information. The Asia Foundation’s Asian-American Exchange (AAX) unit brings together

Asian professionals associated with Asia Foundation-supported projects and their American

counterparts. The programs are primarily U.S.-based and carried out in collaboration with

the Foundation’s offices throughout Asia. They include study tours, coordination of work-

shops, and arrangement for graduate study and professional affiliation at universities and

think tanks. AAX also identifies American or Asian specialists for seminars, conferences,

and consulting services in Asia.

The diversity of AAX programs was evident in the range of activities conducted in

2001. These included election assistance in Mongolia, and support to China for World Trade

Organization compliance and strengthening legal aid centers. In one AAX program, Chinese

representatives observed not-for-profit retail operations, focusing on Goodwill Industries’

conversion of in-kind donations into a viable revenue source, as a possible model for a

similar China Charity Federation program. Pakistani legal professionals studied current

trends in U.S. and Canadian court administration practices as part of the Foundation’s

support for legal reform in Pakistan. Through AAX, the Foundation also brought specialists

from Cambodia to study ways to establish links between the Cambodian Development

Resource Institute, the country’s most prominent think tank, and its American counterparts.

B O O K S F O R A S I A

The Asia Foundation’s earliest program in Asia, begun in 1954, has marked a steady

expansion. Books for Asia distributes more than half a million volumes a year—quality

books, journals, and other educational materials—to more than 4,000 schools, universities,

libraries, nongovernmental organizations, and research centers in 14 Asian countries. As

2002 begins, the flagship program is poised to embark on an ambitious fund-raising effort.

Books donated from the Books for Asia program are a valuable resource to many

schools and training centers throughout Asia. The National Centre for Rural Development

(NCRD) in Pakistan is a recipient of books donated through Books for Asia. The central role

of the NCRD is research and training; its library is essential to its operations. The Books for

Asia program is the largest donor to the library and a particularly important source of refer-

ence books and materials on Organizational Management and Information Technology.

With the center serving policymakers, project directors, and graduate students from not

only Pakistan but all of Asia, the impact of donated books in this single institution is

far-reaching.

The Foundation’s U.S.-based activities directly complement

the work of its 15 offices in Asia.

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Believing in Books

The Foundation’s longest-running program is a model of simplicity and effectiveness. The

phenomenal success of Books for Asia over the past 47 years is due to the straightforward,

yet universal value of matching printed—and, increasingly, electronic—resources to pressing

need. As 2001 ended, Books for Asia was gearing up for its largest fund-raising drive ever.

The goal is ambitious—to raise $250,000 to boost this signature program that has, since

its beginnings, shipped more than 38 million books to more than 40 Asian countries.

The 2002 fund-raising effort is designed to capitalize on significant steps to streamline

and enhance the program taken over the past year. The Books for Asia offices and warehouse

were moved to a new San Francisco facility, greatly reducing storage costs and increasing

efficiency. Though neither glamorous nor readily visible, new valuation, classification, and

inventory control systems represent a significant upgrade. One of the most valuable innova-

tions is the re-tooled Books for Asia intranet website, responsive

on a country-by-country basis. Representatives in Asia can

identify those titles and quantities which best suit individual

country’s needs from publisher donation lists on the website

that are accessible to Books for Asia staff.

Books for Asia programs continue to expand as Asian part-

ner institutions work with the Foundation to focus on particular

national needs. Under a new agreement with China’s Ministry

of Education, for example, 160,000 volumes will be sent in 2002,

including textbooks and research materials, to more than 1,000

colleges and universities throughout China.

In Vietnam, where Books for Asia has distributed books since

1992, the year 2001 was a milestone: the first direct book ship-

ments began from San Francisco to Hanoi, eliminating previously

roundabout transit delays. An agreement signed in 2000 between

The Asia Foundation and the National Library of Vietnam estab-

lished the Library as the Foundation’s partner, providing for the

distribution of 80,000 books to libraries and universities. The agreement also established an

English-language reading room at the National Library in Hanoi as well as in eight provincial

libraries. These reading rooms will be provided with books, computers, printers, and educa-

tional CD-ROMs donated by Books for Asia.

In Sri Lanka, LAcNET became the first private donor to Books for Asia’s in-country work.

Through a donation of $4,000, Books for Asia and LAcNET were able to distribute science

and technology books to hundreds of schools, libraries, and other institutions. LAcNET is a non-

profit organization dedicated to enhancing educational opportunities in Sri Lanka, increasing

Internet accessibility, and disseminating information on Sri Lanka, worldwide.

In North Korea, Books for Asia has distributed more than 40,000 books. Working with the

Grand Peoples’ Study House in Pyongyang, English-language books are distributed to colleges,

universities, and research centers. A new program in Mongolia, meanwhile, focuses on nomadic

women in rural areas. Books for Asia has donated 1,300 books and journals in support of a

Foundation-supported initiative that brings herdswomen together to discuss the government’s

National Action Plan for Women and whether obligations to nomadic women are being met.

Children used materials in the Setsuko

Watnabe public library in Siem Reap Town,

Cambodia.

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W A S H I N G T O N , D . C .

The Asia Foundation’s Washington office builds upon the Foundation’s extensive experience

and contacts throughout Asia to bring Asian perspectives to American policymakers and

business leaders. The Washington program complements the Foundation’s activities in Asia

and provides insight into policy and rapidly changing developments in Asia.

Now in its fifth year, the Asian Perspectives Seminar series continues its focus on impor-

tant and timely regional issues. In 2001, this included a program on Democratic Transitions

and the Role of Islam in Asia, which presented the views of moderate Muslim specialists

from Malaysia, Indonesia, and Pakistan. Given the events of September 11, this meeting

proved an important source of information on local interpretations of Islam. The Foundation

also hosted Asian Perspectives: Focus on the Philippines shortly after the presidential transition

in the Philippines, including a discussion of issues facing the Muslim region of Mindanao.

This year the Foundation continued its sponsorship of the Ellsworth Bunker Asian

Ambassadors Series, bringing together Washington-based Asian diplomats and American

leaders in off-the-record discussions of issues affecting the future of Asia. Featured speakers

included the Honorable Torkel Patterson, Special Advisor to the President and Director for

Asian Affairs at the National Security Council and the Honorable James Kelly, Assistant

Secretary for East Asian and Pacific Affairs at the U.S. Department of State.

The Foundation also sponsored events highlighting emerging issues in Asia, including

sessions on legal aid in China, judicial reform in Pakistan, Islam and politics in Indonesia,

politics in Thailand, and civil society development in Pakistan.

L U C E S C H O L A R S P R O G R A M

Each year a group of young Americans with the potential to become leaders in their respec-

tive fields live and work in Asia for 10 months as Luce Scholars. Funded by The Henry Luce

Foundation and administered by The Asia Foundation, the program selects young people

whose personal and professional attributes qualify them to benefit from their experiences.

The 2001 class was the largest in the program’s history. The 20 scholars represented

six in law; three each in government, medicine/science, and business; two each in interna-

tional development and environment; and one in the arts. The 13 men and seven women

worked throughout the region in areas as diverse as tracking trade in endangered animals

on Mongolia’s eastern steppe to mediating Indonesian corporate debt restructuring cases. �

The Washington office brings Asian perspectives to American

policymakers and business leaders through its network of contacts

throughout Asian society.

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Asia’s urban population has doubled over the past 20 years to 1.4 billion, and is pro-

jected to swell by another 800 million in the next two decades, putting enormous

pressure on the region’s environment. Poverty and globalization are intensifying the

threat to Asia’s natural resources, which The Asia Foundation is helping to address through

a wide range of programs. The Foundation is engaged in such efforts as helping resolve

Hong Kong’s air pollution problems and analyzing environmental laws in Mongolia. In

Bangladesh, the Foundation supported the publica-

tion of a guide to NGO-business environmental

partnerships, and in Cambodia, it is implementing a

program called Democracy and Natural Resources

Management, which ties the two concepts

together as an agenda for international and local

nongovernmental organizations.

The health of Asia’s environment depends on a

combination of vibrant civil society, economic

reform, and development. The decentralization of

government in many countries, resulting in new

forms of local governance, provides substantial

opportunities for Foundation work in sustainable

development programs across the region. Relations

among civil society, industry, and government must

be improved so that the combined strengths of all

three sectors can cooperate to solve environmental

problems. To this end, the Foundation is continuing

its work with the groundbreaking NGO-Business

Environmental Partnership, with support from the

Goldman Fund. It is also initiating a new regional

program called the US-AEP Environment and Civil

Society Partnership, supported by the U.S.-Asian

Environmental Partnership program of the U.S.

Agency for International Development. �

Environmental Protection

Asia’s urban population has doubled over the past 20 years to 1.4 billion, and is

projected to swell by another 800 million in the next two decades, putting enor-

mous pressure on the region’s environment. Poverty and globalization are intensify-

ing the pressures on Asia’s natural resources, which The Asia Foundation addresses through

a wide range of programs. The Foundation is engaged in such efforts as helping resolve

Hong Kong’s air pollution problems and analyzing environmental laws in Mongolia. In

Bangladesh, the Foundation supported the pub-

lication of a guide to NGO-business environmental

partnerships, and in Cambodia, it is implementing a

program called Democracy and Natural Resources

Management, which ties the two concepts together

as an agenda for international and local non-

governmental organizations.

The health of Asia’s environment depends on

a combination of vibrant civil society, economic

reform, and development. The decentralization of

government in many countries, resulting in new

forms of local governance, provides substantial

opportunities for the Foundation. Relations among

nongovernmental organizations, industry, and

government must be improved so that the com-

bined strengths of all three sectors can cooperate

to solve environmental problems. To this end, the

Foundation is continuing its work with the ground-

breaking NGO-Business Environmental Partnership,

with support from the Richard & Rhoda Goldman

Fund, which promotes improved NGO-business

relations. It is also initiating a new regional program

called the U.S.-AEP Environment and Civil Society

Partnership, supported by the U.S.-Asian Environ-

mental Partnership program of the U.S. Agency

for International Development, aimed at strength-

ening the role of civil society in protecting the

environment. �

Environmental Protection

: : H O N G K O N G

Clearing the Air

Hong Kong’s aspiration to be “Asia’s World City” is frustrated

in part by a deteriorating environment, in which air pollution

in particular has worsened despite government pollution

control efforts. Because Hong Kong is highly urbanized and

congested, cleaner fuels

and vehicles will have

a significant impact,

but a key obstruction to

progress toward cleaner

air has been the lack of

an overall strategy with

broad-based community

support.

Recognizing this

problem, The Asia

Foundation last year

partnered with Civic

Exchange, a new Hong

Kong think tank, to

help develop a practical and effective cleaner fuel and vehi-

cle strategy. This included a review of relevant technological

developments, identification and consultation with all key

individuals and groups in Hong Kong, the drafting of a strat-

egy document for review among stakeholders, a follow-up

workshop, and final distribution of a revised report.

The highlight of the program was a successful day-long

workshop held in the spring and conducted in both English

and Cantonese. Approximately 100 participants attended,

representing government, advocacy groups, transport opera-

tors, power companies, vehicle manufacturers and distribu-

tors, fuel providers, and any others identified as having an

interest in a clean air agenda for Hong Kong.

More than 1,500 copies of the report, “Cleaner Fuels

and Vehicles—the Way Forward,” have been distributed in

Hong Kong. In addition, The Asia Foundation’s staff have

presented a summary of the recommendations to Hong Kong’s

Chief Executive and discussed implementation with both the

Secretaries for Environment and Food and for Transport.

The work completed in 2001 has led the Foundation to pre-

pare for a second stage, which will focus on the report’s

recommendations.

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Information and Communications Technology

Innovations in information and communications technology (ICT) increasingly affect the

lives of people across Asia. For more than a decade, The Asia Foundation has supported

programs that focus on the ways information technology can make government more

transparent and efficient, increase economic activity in the private sector, and strengthen

civil society.

The Foundation supported workshops on e-Government at the municipal level in the

Philippines and Taiwan in 2001. In the Philippines, officials representing 23 cities, several

national government departments, and local businesses convened to learn from successful

case studies and share ideas. In China, the Foundation supported research by Fudan University

that included a survey of public opinions and attitudes on e-Government.

The rapid expansion of e-Commerce and IT-enabled services in the private sector,

meanwhile, is generating increased economic growth by opening new markets, increasing

access to market information, and improving efficiency. In Indonesia, the Philippines,

Thailand, and Sri Lanka, the Foundation is working with small and medium enterprises to

identify opportunities for increased use of e-Commerce. The Foundation is also supporting

research on the IT-enabled services market in Asia.

As civil society organizations increasingly use ICT applications and the Internet to expand

and improve their organizations, they become more effective in contributing to the public

discourse. In Sri Lanka, the Foundation is collaborating with the Human Rights Commission

to build a system to collect and analyze information on human rights violations. And in

Thailand, the Foundation supported the development of an online nongovernmental organi-

zation (NGO) forum as well as an online marketplace for Thai artisans. �

Information and Communications Technology

: : K O R E A

Technology for More Open Government

As countries in Asia move toward more open societies and

work to rein in corruption, one effort in particular stands

out: South Korea’s aptly named ‘OPEN’ system. The brain-

child of the Metropolitan Government in Seoul, OPEN—

for ‘Online Procedure Enhancement’—

is an e-Government system that is

gradually revolutionizing access to

city services. In an application and

licensing process long susceptible

to corruption and bribery, the OPEN

system bypasses middlemen and

gives citizens direct access to govern-

ment, without the need to grease

palms along the way.

To highlight the OPEN process

as a model of transparency, The Asia

Foundation co-sponsored, with support from the Chong

Moon Lee Foundation, a two-day Anti-Corruption Symposium

hosted and organized by the Seoul Metropolitan Government

and the United Nations Department of Economic and Social

Affairs. Senior officials from Transparency International also

participated in the program, along with representatives

from the Organization for Co-operation and Development

(OECD) and the World Bank. More than 150 local and inter-

national participants attended the August 2001 symposium

to discuss anti-corruption efforts, including 15 participants

from Cambodia, China, India, Indonesia, the Philippines,

Taiwan, and Thailand invited by The Asia Foundation.

The OPEN system is a web-

based application that gives

citizens access to 54 government

services, including a full range

of city licensing and application

processes. By reducing exposure

to possibly corrupt officials, online

access not only reduces the poten-

tial for bribery but—as a highly

desirable parallel benefit—dramat-

ically reduces the time needed

to complete any given process.

OPEN also allows applicants to monitor applications for such

items as permits and licenses as they work their way through

the system. An English-version manual for the system will

soon be translated into Chinese, Russian, Arabic, French,

and Spanish.

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2001 Financial Report

M A N A G E M E N T ’ S R E S P O N S I B I L I T Y F O R T H E F I N A N C I A L S TAT E M E N T S

Management is responsible for the preparation of The Asia Foundation’s financial statements and other

financial information in this report. This responsibility includes maintaining the integrity and objectivity of

financial records and the presentation of the Foundation’s financial statements in accordance with

accounting principles generally accepted in the United States of America.

The Asia Foundation maintains an internal control structure intended to help ensure the integrity over

the preparation and reporting of financial information, protection of Foundation assets, and compliance

with donor restrictions and instructions. The internal control structure is supported by training of qualified

personnel, written policies and procedures that communicate details of the internal control structure to

the Foundation’s global activities, and by an internal auditor who employs thorough auditing programs.

The Foundation’s financial statements have been audited by Deloitte & Touche LLP, independent certified

public accountants, who issued an unqualified opinion on the Foundation’s financial statements. The following

condensed financial information has been excerpted from such audited financial statements. The Independent

Auditors’ Report and the complete audited financial statements and accompanying footnotes are available

upon request.

John CroizatDirector, Finance and Administration

William P. FullerPresident

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2001 2000

A S S E T S :

Cash and equivalents $ 2,440 $ 2,698

Receivables:

Grants from U.S. government 20,572 20,071

Grants from other governments, multi-laterals and

private foundations 2,471 548

Investments, at fair value 11,768 17,070

Books for Asia Inventory 9,412 5,907

Prepaid expenses and other assets 803 782

Property and equipment, net 724 506

Total assets $ 48,190 $ 47,582

L I A B I L I T I E S A N D N E T A S S E T S :

Liabilities:

Deferred support $ 17,820 $ 15,863

Grants payable 1,058 1,668

Accounts payable and accrued expenses 1,865 1,970

Accrued postretirement benefit cost 722 500

Total liabilities 21,465 20,001

N E T A S S E T S :

Unrestricted:

Undesignated 3,839 3,313

Designated for long-term investment 13,251 18,138

Total unrestricted 17,090 21,451

Temporarily restricted 9,412 5,907

Permanently restricted 223 223

Total net assets 26,725 27,581

Total liabilities and net assets $ 48,190 $ 47,582

Audited financial statements available upon request.

C O N D E N S E D S TAT E M E N T O F F I N A N C I A L P O S I T I O N , S E P T E M B E R 3 0 , 2 0 01

With comparative totals for 2000 (in thousands)

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C O N D E N S E D S TAT E M E N T O F A C T I V I T I E S A N D C H A N G E S I N N E T A S S E T SY E A R E N D E D S E P T E M B E R 3 0 , 2 0 01

With comparative totals for 2000 (In thousands)

2001 2000

Temporarily PermanentlyUnrestricted Restricted Restricted Total Total

S U P P O R T A N D R E V E N U E :

Support:

Grants from U.S. Government agencies $ 17,846 $17,846 $ 15,530

Grants from U.S. Department of State 9,230 9,230 8,216

Grants from other governments,

multilaterals and private foundations 5,159 5,159 5,420

Books for Asia program $ 11,890 11,890 14,846

Net assets released from restrictions 8,385 (8,385)

Total support 40,620 3,505 44,125 44,012

Revenue:

Investment income 499 499 586

Net realized and unrealized gain (loss)

on investments (4,474) (4,474) 2,451

Other 175 175 48

Total revenue (3,800) (3,800) 3,085

Total support and revenue 36,820 3,505 40,325 47,097

E X P E N S E S :

Program grants and related services 28,787 28,787 24,718

Books for Asia distributions 8,385 8,385 12,156

Supporting services:

Administration and general 3,771 3,771 3,863

Fund-raising 238 238 231

Total expenses 41,181 41,181 40,968

I N C R E A S E ( D E C R E A S E ) I N N E T A S S E T S (4,361) 3,505 (870) 6,129

N E T A S S E T S , B E G I N N I N G O F Y E A R 21,451 5,907 $223 27,581 21,452

N E T A S S E T S , E N D O F Y E A R $17,090 $9,412 $223 $26,725 27,581

Audited financial statements available upon request.

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2001 2000

O P E R A T I N G A C T I V I T I E S :

(Decrease) increase in net assets $ (856) $ 6,129

Adjustments to reconcile increase (decrease) in net assets

to net cash used in operating activities:

Contribution of investment securities (149) (240)

Depreciation and amortization 244 340

Net realized and unrealized loss (gain) on investments 4,474 (2,451)

Support from Books for Asia program — net (3,505) (2,690)

Effect of changes in:

Grants and contributions receivable (2,424) (1,570)

Prepaid expenses and other assets (21) 29

Deferred support 1,957 (1,176)

Accounts payable, grants payable and other accrued expenses (493) 310

Net cash used in operating activities (773) (1,319)

I N V E S T I N G A C T I V I T I E S :

Proceeds from sales of investments 9,041 10,113

Purchases of investments (8,064) (9,887)

Purchases of property and equipment, net (462) (160)

Net cash provided by investing activities 515 66

N E T D E C R E A S E I N C A S H A N D E Q U I V A L E N T S (258) (1,253)

C A S H A N D E Q U I V A L E N T S , B E G I N N I N G O F Y E A R 2,698 3,951

C A S H A N D E Q U I V A L E N T S , E N D O F Y E A R $2,440 $2,698

Audited financial statements available upon request.

C O N D E N S E D S TAT E M E N T O F C A S H F L O W S Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 01

With comparative totals for 2000 (In thousands)

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The Asia Foundation Donors

I N D I V I D U A L S

Anonymous (2)

Terrence B. Adamson

William S. Anderson

William L. Ball, III

Barbara Barck

Jeffrey T. Bergner

Sanda Blockey

John A. Bohn

Glen Bowersox (deceased 1/01)

Erika Bruce

Joseph Cai

Alexander and Cornelia Calhoun

Mark Chandler

William H.C. Chang

Linda Cheng

A. W. Clausen

Scott D. Cook

Jean F. Cornuelle

N. Cinnamon Dornsife

Theodore L. Eliot, Jr.

William D. Evans

Dan Farmer

Ronald Freemire

Joan Frentzel

William P. Fuller

Wendell E. and Hilde L. Gerken

Margaret Goralski

Carlyn Halde

Renee Renouf Hall

Elizabeth C. Hanson

Harry Harding

Richard and Beatrice Heggie

Pamela G. Hollie

Henrietta Holsman Fore

Ernest M. Howell

Ta-lin Hsu

Judith C. Huse

Mrs. John N. Irwin, II (deceased 7/01)

Bonnie P. James

Anjun J. Jin

Richard Jorgensen

Mark A. Keleher

Hui Leng Khoo

Robert H. Knight

Chong-Moon and Reiko-Moon Lee

Marc Levenson

Ai-Ling Li

Mary H. Livingston

Catherine McCraken

William McDougal

Bonnie J. Melville and Daniel G. Terlouw

Mary P. Millar

Mrs. Maurice T. Moore (deceased 2/02)

John G. Mori

Betty Southard Murphy, Esq.

Thomas Nagorski

Brenda J. Oakley

Victoria Oakley

Leonard Overton

John Pao Borjigin

Rudolph A. Peterson

Susan J. Pharr

PII Advised Fund of Give2Asia

Lucian W. Pye

Mahendra Ranchod

Missie T. Rennie

Marion M. Robb

David Rockefeller

Jeff Romm

Roger and Betty Ruch

Peter H. Rude

Hope S. Rugo

Robert A. Scalapino

Erich F. Schimps

Jan B. Scholes

Robert S. Schwantes

Watanee Sriwatanapongse

Mrs. Carl W. Stern

David B. Stewart

Estrellita Sumulong

Judith Swift

Leslie Tang Schilling

Laura D’Andrea Tyson

Elizabeth Vera

Dolores Wharton

Brayton and Judy Wilbur, Brayton

Wilbur Foundation

Mathilda B. Wilbur

Haydn Williams

Casimir A. Yost

C O R P O R A T I O N S A N D

F O U N D A T I O N S

American Express Foundation

Bank of America

California Community Foundation fund

of Give2Asia

Chevron Corporation

ChinaVest, Inc.

Ford Foundation

The Freeman Foundation

General Electric Company

The Wallace Alexander Gerbode Foundation

Richard & Rhoda Goldman Fund

William and Flora Hewlett Foundation

Hewlett-Packard Company

The Chong-Moon Lee Foundation at

Community Foundation Silicon Valley

Levi Strauss Foundation

The Henry Luce Foundation

The McConnell Foundation

Motorola Inc.

Charles Stewart Mott Foundation

MTR Corporation Limited

The Myer Foundation

Pacific Century Institute

B.T. Rocca Jr. Foundation

Rockefeller Brothers Fund

Rockefeller Foundation

The Sasakawa Peace Foundation

Starr Foundation

Sungkok Journalism Foundation

The Tang Foundation

U.S.-China Legal Cooperation Fund

G O V E R N M E N T , M U L T I L A T E R A L ,

A N D O T H E R O R G A N I Z A T I O N S

United States Agency for International

Development (USAID)

Asian Development Bank

World Bank

UNICEF

World Health Organization

World Food Program

Population Council

National Institutes of Health

European Commission

Umea University of Sweden

Bureau of Education and Cultural Affairs

of the Department of State

The Asia Foundation gratefully acknowledges the generous benefactors who

contributed to the Foundation during the October 1, 2000 –September 30, 2001

period. In addition, the Foundation especially recognizes the contributions of time

and resources made by its Asian partners not listed here, whose support and

commitment are crucial to the overall success of Foundation-sponsored initiatives.

Governments of: Canada (CIDA), China,

Denmark, Germany, Japan, Netherlands,

Norway, Sweden (SDC), Switzerland,

United Kingdom (DFID)

I N - K I N D D O N A T I O N S

Raymond K.F. Ch`ien

Victor K. Fung

Ulaanbaatar Metropolitan Central Library

A S I A F O U N D A T I O N I N T A I W A N

Individuals

Jian Bang Chang

Paul S.P. Hsu

Sheng Pin Tao

Corporations and Institutions

Acer Group

China Steel Corporation

Development & Evaluation Commission,

Executive Yuan

Institute for Information Industry

Les Enphants Co., Ltd.

Lee and Li Foundation

NGO Affairs Committee, Ministry of

Foreign Affairs

Nation Taiwan University College of Law

Nation Youth Commission

Popcreative Group

Taiwan Semiconductor Manufacturing Co., Ltd.

Tung Ho Steel Enterprise Corporation

United Daily News Group

W.I Harper Group

Books Donor List

Publishers

Crisp Publications, Inc.

Hong Kong University Press

Houghton Mifflin Company

John Wiley & Sons, Inc.

McGraw-Hill Companies

Sage Publications, Inc.

Sundance Publishing

Technomic Publishing Co., Inc.

Technomic Publishing Company

University Science Books

College/University Bookstores

Colorado Bookstore #792

Du Bois Bookstore, Inc.

El Paso Community College, Barnes & Noble

Bookstore #676

Montana State University, M.S.U. Bookstore, Inc.

Sacramento City College Bookstore

Skyline College Bookstore

State University of New York, Oswego;

College Store

Union College, College Bookstore

University of California

University of California, Davis Bookstore

University of Minnesota Bookstore

University of Minnesota East Bank Bookstore

University of Minnesota West Bank Bookstore

Businesses and Organizations

Americares

Asian Cultural Council

B.E. Aerospace

CIGNA Healthplan of America

David Pharmaceuticals, Inc.

Environmental Systems Research Institute, Inc.

Institute of International Education

The Bradley Foundation

World Federalist Association

Colleges and Universities

California State University, Long Beach

McHenry County College

Northern Illinois University Dept. of

Anthropology

Stanford University

UC Berkeley ASCE Student Chapter

University of Baltimore

Library (Non-College/University)

Library Embry-Riddle Aero. University

Schools/School Districts

Barnes & Noble #383 Colorado School of Mines

Ben Parker

Barnes & Noble #676 El Paso

Community College

Frank M. Falcetta, Associate Provost Economic

& Laguna Salada Alternative School

St. Dominic School

University of Pennsylvania

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Chong-Moon LeeChairman and CEO

AmBex Venture Group, LLC

Like other nonprofit organi-

zations, The Asia Foundation

relies on its trustees for

policy guidance, program

oversight, and financial sup-

port. When trustee Chong-

Moon Lee announced his

gift of $1 million to the

Foundation three years ago

at a meeting of the board,

there was a moment of

stunned silence, followed

by thunderous applause. Then Dr. Lee quietly said: “It is time

for the grantees of the Foundation to give back.”

In 1958, Lee received a fellowship from the Foundation

to study library science at Vanderbilt University, in preparation

for an assignment to develop a classification for the national

library system in his native Korea. To this day, he remembers

fondly the details of the award and the respect shown for

his capabilities, skills, and promise. Upon his return to Korea,

Dr. Lee used his skills to upgrade the Yonsei University library

system. Dr. Lee emigrated to the United States in 1970 to

escape the military regime and embarked on a career in multi-

media, becoming a successful entrepreneur and philanthropist.

Since his appointment to the Foundation’s board in 1998,

Dr. Lee has focused on issues related to North Korea. Projects

he supports include the provision of American books for North

Korean libraries, educational visits to the United States for

North Korean medical and agricultural experts, and the training

of the North Korean lawyers in China. In this way, Dr. Lee’s life

has come full circle: now it is he, through the Foundation, who

is investing in the future leaders of Asia.

Officers and Trustees

O F F I C E R S

Chang-Lin Tien1

Chairman of the Board and Executive Committee

University Professor andNEC Distinguished Professor of Engineering, University of California at BerkeleyBerkeley, California

William L. Ball, III 2

Vice ChairmanPresident, National Soft Drink AssociationWashington, D.C.

William P. FullerPresident

Susan J. PharrSecretaryEdwin O. Reischauer Professor of

Japanese Politics,Harvard UniversityCambridge, Massachusetts

Paul S. SlawsonTreasurerBusiness LeaderSan Francisco, California

Barnett F. BaronExecutive Vice President

Gordon R. HeinVice President, Programs

Nancy YuanVice President andDirector, Washington, D.C.

Thomas W. Flynn 3

Vice President, External Relations

John CroizatAssistant Treasurer

M E M B E R S

Terrence B. AdamsonExecutive Vice President, National Geographic SocietyWashington, D. C.

David R. AndrewsSenior Vice President Government Affairs,General Counsel and Secretary, PepsiCo Inc.Former Legal Advisor for the

Department of StatePurchase, New York

Michael H. ArmacostPresident, The Brookings InstitutionFormer U.S. AmbassadorWashington, D.C.

Jeffrey T. BergnerPresident, Bergner Bockorny, Inc.Washington, D.C.

Alexander D. Calhoun, Esq.Senior CounselSquire, Sanders, & Dempsey, LLPSan Francisco, California

William H.C. ChangPresident and CEOWestlake Development Company, Inc.San Mateo, California

A.W. ClausenRetired Chairman and CEOBankAmerica CorporationSan Francisco, California

Scott D. CookFounder and Chairman of the

Executive CommitteeIntuit, Inc.Mountain View, California

Theodore L. Eliot, Jr.Former U.S. AmbassadorSonoma, California

Thomas S. FoleyPartner, Akin, Gump, Strauss,

Hauer & Feld, LLPFormer U.S. AmbassadorFormer Speaker of the U.S. House of

RepresentativesWashington, D.C.

Henrietta Holsman Fore 4

Director of the U.S. MintFormer Chairman and CEO, Holsman

InternationalWashington, D.C.

Harry HardingDean, Elliott School of International AffairsGeorge Washington UniversityWashington, D.C.

Ernest M. HowellSenior Vice President, InvestmentsSalomon Smith BarneyNew York, New York

Ta-lin HsuChairman, Hambrecht & Quist Asia

Pacific (H&Q)Palo Alto, California

Mrs. John N. Irwin II 5

Civic LeaderNew York, New York

Chong-Moon LeeChairman and CEO, AmBex Venture Group, LLCSunnyvale, California

Janet A. McKinleyDirector, Capital Research & Management Co.New York, New York

Lucian W. PyeFord Professor of Political Science EmeritusMassachusetts Institute of TechnologyCambridge, Massachusetts

Missie RennieMedia ConsultantNew York, New York

J. Stapleton RoyManaging Director, Kissinger AssociatesFormer U.S. AmbassadorNew York, New York

Arun SarinChief Executive Officer, Accel-KKR TelecomPalo Alto, California

Robert A. ScalapinoRobson Research Professor of Government

EmeritusInstitute of East Asian Studies,University of California at BerkeleyBerkeley, California

Leslie Tang SchillingChairperson, Union Square Investment

CompanySan Francisco, California

Robert A. TheleenChairman, ChinaVest, Inc.San Francisco, California

Laura D’Andrea Tyson6

Dean of London Business SchoolFormer Dean of the Haas School of Business, University of California at BerkeleyFormer National Economic Adviser to the

PresidentLondon, United Kingdom

Dolores Wharton7

Chairman, CEO and FounderFund for Corporate Initiatives, Inc.New York, New York

Brayton Wilbur, Jr.Board of Directors, Wilbur-Ellis CompanySan Francisco, California

Paul Wolfowitz 4

Deputy Secretary of DefenseFormer Dean, Paul H. Nitze School of

Advanced International StudiesThe John Hopkins UniversityWashington, D.C.

Linda Tsao YangSpecial Advisor, Lombard InvestmentsSan Francisco, California

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Casimir A. YostMarshall B. Coyne Professor in the Practice

of Diplomacy andDirector, Institute for the Study of

Diplomacy, School of Foreign ServiceGeorgetown UniversityWashington, D.C.

T R U S T E E S E M E R I T U S

William S. AndersonRetired Chairman, NCR CorporationPebble Beach, California

Caryl P. Haskins8

Retired President, Carnegie InstitutionWashington, D.C.

Robert H. KnightAttorney, Shearman & SterlingNew York, New York

Mrs. Maurice T. Moore9

Trustee, China Institute and RetiredChairman, State University of New YorkNew York, New York

Rudolph A. PetersonRetired President and CEOBankAmerica CorporationSan Francisco, California

Walter ShorensteinChairman of the BoardThe Shorenstein CompanySan Francisco, California

P R E S I D E N T E M E R I T U S

Haydn Williams

H O N G K O N G

L E A D E R S H I P C O U N C I L

Payson ChaManaging Director, HKR International Ltd.

Raymond K.F. Ch’ienChairman, chinadotcom corporation

Franklin D. ChuManaging Partner, Kaye Scholer LLP

Victor K. FungGroup Chairman, Li & Fung Ltd.

Chien LeeDirector, Scottish & Eastern Investments Ltd.

Victor LoChairman & Chief Executive, Gold Peak

Industries Ltd.

Henry Ying-yen TangManaging Director, Peninsula Knitters Ltd.

Allan WongChairman, VTech Group

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Trustees Get Up Close in Southeast Asia

One of The Asia Foundation’s greatest assets is its distinguished Board of Trustees.

To make the most of its trustees’ wealth of expertise, the Foundation encourages

on-the-ground interaction between Board members and activities in the field.

Trustee tours, usually held in conjunction with Board meetings, are mutually benefi-

cial in that they also provide trustees with valuable perspectives from Foundation

staff, grantees, and policymakers throughout Asia.

“These trips provide the opportunity to increase our understanding in-depth

of the Asian countries that we visit, the issues The Asia Foundation has to deal with,

Foundation staff on the ground, and the senior government personalities who direct

policy in their country,” noted trustee Paul

Slawson, a business leader in San Francisco.

“There is nothing like seeing the people

and places and programs face-to-face,”

agreed Russell Miller, Managing Partner of

Russell Miller Advisers Pte. Ltd, a special

Foundation guest on the tour.

In 2001, the Foundation’s annual Board

meeting was held in Southeast Asia. During

visits to Cambodia, Vietnam, Thailand, and

Hong Kong, trustees had the opportunity to

engage with Foundation staff, government

officials, academics, dignitaries, and members

of nongovernmental organizations.

In Cambodia, trustees were invited to

an audience in Phnom Penh with His Majesty,

King Norodom Sihanouk, in a vivid illustration

of the relationships the Foundation enjoys in Asia. A field visit to the Women’s Media

Center, the only NGO-operated radio station in the country, demonstrated the impor-

tance of the program in the lives of women and youth. Board members also traveled

to Hanoi, where the scope of the Foundation’s work was highlighted in meetings

with members of Vietnam’s National Assembly. Legislators described the functions

of the Assembly, the Vietnamese legislative process, and the impact of Foundation-

supported programs for refining mechanisms for public participation in drafting,

promulgating, and implementing laws.

In field visits to women’s business cooperatives in Chiang Mai, Thailand, trustees

saw first-hand the role of local administrative councils, particularly their efforts to

improve women’s participation in government and society. And in their last stop,

trustees shared their ideas and expertise with Hong Kong Chief Executive Tung Chee-

hwa in conversations about the special administrative region’s role in the global

economy.

1 Elected Chairman Emeritus 1/02

2 Appointed Chairman of the Board 1/02

3 Appointed 1/02

4 Left Board of Trustees to assume senior position with the United States Government

5 Deceased 7/01

6 Until 12/01

7 Until 8/01

8 Deceased 10/01

9 Deceased 2/02

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Give2Asia:Connecting Partners in Philanthropy

: : A F G H A N I S T A N / P A K I S T A N

Speeding Relief Where it is Needed

In swift response to the events of September 11, Give2Asia made

two grants to support relief work in Pakistan and Afghanistan.

The Richard & Rhoda Goldman Fund, which requested options

on how to best benefit those affected by

the conflict in central Asia, provided major

funding. This critical grant package was

developed for the Goldman Fund by

The Asia Foundation’s representative in

Islamabad, Pakistan, and is a noteworthy

example of how Give2Asia can provide

U.S. philanthropists with strategic, person-

alized, and reliable grant opportunities

in Asia.

Based on first-hand knowledge and

discussions, the Foundation advised the

Goldman Fund that interventions could be made in two areas:

coordinating the efforts of relief organizations, and beginning

a shift from immediate provision of aid to infrastructure develop-

ment designed to meet pressing long-term needs.

To address the need for coordinating relief efforts,

Give2Asia funded the Peshawar-based Agency Coordinating

Body for Afghan Relief (ACBAR), a clearinghouse for infor-

mation and technical assistance for development organiza-

tions. The infusion of grant funds allowed ACBAR to quickly

expand its operations, providing immediate results and

ensuring a long-term positive impact.

A second grant was made to

PARSA, an American development

organization headed by Mary

MacMakin, who has lived and worked

in Afghanistan for the last 40 years.

PARSA works in the refugee camps in

Pakistan and in Afghanistan to imple-

ment nutrition, health, education,

and livelihood programs, including

those particularly focused on Afghan

women and families. PARSA is also

starting a volunteer service corps for

Afghan Americans wishing to return for service trips.

These Give2Asia grants are part of a broader Asia

Foundation response to the crisis in Afghanistan which will

focus on reconstruction and development of Afghanistan.

The tragic events of September 11, 2001 had a profound impact on charitable

giving directed toward Asia. Give2Asia, a community of donors, grantees, and

grant-making professionals devoted to philanthropy to Asia, focused immedi-

ately on helping individuals and foundations find grant-making opportunities to

address the complex challenges exposed by the crisis. The outpouring of concerned

response is evident in the flow of relief to victims of the conflict, as well as polls

that show that most Americans believe they have a responsibility to give because

“governments can’t do it alone.”

Give2Asia is a unique institution that gives individuals a way to contribute to

positive change, through tailored investments in social causes they hold dear.

Through its partnership with The Asia Foundation, Give2Asia donors benefit from the

Foundation’s 47 years of grantmaking experience and its network of 15 offices in

Asia. We help connect partners in philanthropy—donors and grantees—and provide

professional grant-making services to assist donors in fulfilling their charitable goals.

Now, at the end of a successful start-up year, we would like to thank the donors

and grantees who have joined with us to make a difference in Asia.

Whether the grant has been large or small, the work of Give2Asia partners is

changing the world. With funding from the Richard & Rhoda Goldman Fund, we

are bolstering the capacity of relief organizations in Pakistan and Afghanistan. Other

donors support a vigorous press in Southeast Asia through the Indochina Media

Memorial Foundation, scholarships for girls in Cambodia and students at Shanghai

Jiaotong University, improvement of air quality in Hong Kong, the world-renowned

Cloud Gate Dance Group of Taiwan, medical education, and conflict resolution in

Mindanao, Philippines. �

Give2Asia is a U.S. nonprofit organ-ization established by The AsiaFoundation to facilitate charitablegiving to Asia. Give2Asia providesservices that overcome the commonchallenges associated with givingoverseas, making U.S.-Asia philan-thropy accessible, secure, and taxdeductible. With a flexible menu ofoptions for giving, Give2Asia givesindividuals, families, corporations,and foundations the tools to fulfilltheir charitable goals in Asia.

www.give2asia.org

S E N I O R S T A F F A N D

C O N S U L T A N T S

Senior Staff in the United States

William P. FullerPresident

Barnett F. BaronExecutive Vice President

Gordon R. HeinVice President, Programs

Nancy YuanVice President andDirector, Washington, D.C.

Thomas W. FlynnVice President, External Relations (as of 1/02)

Ardith BettsCoordinator, Luce Scholars Program

Everett ChartersDirector, Books for Asia Program

William ColeDirector, Governance, Law, and Civil Society

John CroizatDirector, Finance and Administration

Richard H. FullerSenior Director, Country Programs

Erik JensenSenior Law Advisor

Lois Moore Director, Office of the President (until 1/02)

Chris PlanteDirector, Environmental Programs

Michael Rea Managing Director, Give2Asia (as of 5/01)

Franck S. WiebeChief EconomistDirector, Economic Reform and Development

Carol YostDirector, Women’s Political Participation

Vera Y. I. YoungDirector, Asian-American Exchange Program

L.Z. YuanSenior Advisor for Chinese Affairs

R E P R E S E N T A T I V E S

I N A S I A

Bangladesh

Karen L. CasperRepresentative

Karan SwanerAssistant Representative (until 6/01)

Cambodia

Jon SummersRepresentative

Nancy HopkinsAssistant Representative

China

Allen C. ChoateDirector of Program Development

Zhang YeDirector of China Programs

Indonesia, Malaysia,* East Timor

Douglas E. RamageRepresentative

Nilan FernandoAssistant Representative

Japan

Andrew HorvatRepresentative

Kaori KurodaAssistant Representative (until 8/01)

Korea

Scott SnyderRepresentative

Mongolia

Katherine S. HunterRepresentative

Nepal

Nick LangtonRepresentative

George VarugheseAssistant Representative

Pacific Island Nations*

Steven RoodRepresentative

Kathryn HawleyProject Manager, South Pacific Disaster

Reduction Program

Pakistan

Julio A. AndrewsRepresentative

Greg AllingAssistant Representative

Philippines

Steven RoodRepresentative

Gavin TrittAssistant Representative

Sri Lanka, Maldives*

Mark Reade McKennaRepresentative

Dinesha deSilva WikramanayakeAssistant Representative

Thailand, Laos*

James KleinRepresentative

Vietnam

Jonathan StromsethRepresentative

*Nonresident country programs

Staff

Annual Report Credits

Editing: Alix Christie, Julie Rinard

Design: Casper Design Group, Berkeleywww.casperdesign.com

Special thanks to the Indochina Media Memorial Fund (IMMF) for making their images available for use in this report.

B A N G L A D E S H

Karen L. Casper, RepresentativeG.P.O. Box 666Dhaka-1000, BangladeshTel: (880) 2-8826941Fax: (880) 2-8826134Email: tafbg@tafbg.agni.com

C A M B O D I A

Jon Summers, RepresentativeP.O. Box 536, PTAPhnom Penh, CambodiaTel: (855) 23-210431Fax: (855) 23-362344Email: tafcb@cb.asiafound.org

C H I N A

Hong KongAllen C. Choate, Director of ProgramDevelopment9th Floor, Shun Ho Tower24-30 Ice House StreetCentral, Hong KongTel: (852) 2971-0889Fax: (852) 2971-0773Email: choate@asiafound.org.hk

BeijingZhang Ye, China Country DirectorSuite 1905 Building No.1, Henderson Center18 Jianguomennei AvenueBeijing 100005, ChinaTel: (86-10) 65183868Fax: (86-10) 65183869Email: beijing@asiafound.org.cn

E A S T T I M O R

Douglas E. Ramage, RepresentativeJalan Americo Thomas 122 TMandarin, DiliEast Timor (Timor Lorosa’e)Tel: (670) 390-313-457Fax: (670) 390-324-245Email:general@tafet.org

I N D O N E S I A , M A L A Y S I A

Douglas E. Ramage, RepresentativeJalan Darmawangsa Raya No. 50Kebayoran BaruJakarta 12160, IndonesiaTel: (62) 21-726-1860Fax: (62) 21-726-2834Email: general@tafindo.org

J A P A N

Andrew Horvat, RepresentativeKowa No. 32 Bldg., 2nd Floor2-32 Minami Azabu 5-ChomeMinato-kuTokyo 106-0047, JapanTel: (81) 3-3441-8291Fax: (81) 3-3442-3320Email:general@tafjapan.org

K O R E A

Scott Snyder, Representative106-5 Hwa-dong, Chongno-kuSeoul 110-210, KoreaTel: (82) 2-732-2044Fax: (82) 2-739-6022Email: info@tafko.or.kr

M O N G O L I A

Crystal House Business CentreChinggis Avenue 11/1, P.O. Box 1003Ulaanbaatar-13, MongoliaTel: (976) 11-311-497Fax: (976) 11-311-497Email: tafmg@magicnet.mn

N E P A L

Nick Langton, RepresentativeG.P.O. Box 935BaluwatarKathmandu, NepalTel: (977) 1-418-345Fax: (977) 1-415-881Email: nick@taf.org.np

P A K I S T A N

Julio A. Andrews, RepresentativeP.O. Box 1165Islamabad, PakistanTel: (92) 51-265-0523Fax: (92) 51-265-0736Email: greg@pk.asiafound.org

P H I L I P P I N E S ,

P A C I F I C I S L A N D N A T I O N S

Steven Rood, RepresentativeP.O. Box 7072Domestic Airport Post Office Pasay CityMetro Manila, PhilippinesTel: (63) 2-851-1466Fax: (63) 2-853-0474Email: general@asiafound.org.ph

S R I L A N K A , M A L D I V E S

Mark Reade McKenna, Representative3/1A Rajakeeya Mawatha (Racecourse Avenue)Colombo 7, Sri LankaTel: (94) 1-698356/7Fax: (94) 1-698-358Email: taf@sl.asiafound.org

T H A I L A N D , L A O S

James Klein, RepresentativeG.P.O. Box 1910Bangkok 10500, ThailandTel: (66) 2-233-1644Fax: (66) 2-237-7011Email: general@taf.or.th

V I E T N A M

Jonathan Stromseth, Representative #10-03 Prime Centre53 Quang Trung StreetHanoi, VietnamTel: (84-4) 943-3263Fax: (84-4) 943-3257Email: general@taf.vnn.vn

A S I A F O U N D A T I O N

I N T A I W A N*

Taymin Liu, Executive Director17 Chu Lun StreetTaipei 104, TaiwanTel: 886-2-2506-1174Fax: 886-2-2509-3240Email: afit@afit.org.tw

*In Taiwan, The Asia Foundation operates through a partnership with the Asia Foundation in Taiwan, a locally incorporated nongovernmental, nonprofitorganization.

The Asia Foundationwww.asiafoundation.org