Partnering for securityand prosperity

Annual Report 2003/2004

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

Foundation Board members

Klaus Schwab Executive Chairman of theFoundation BoardWilliam I. M. Turner Chairman and ChiefExecutive Officer, Exsultate Inc, Canada;Vice-Chairman of the Foundation BoardJosef Ackermann Spokesman of the Board andChairman of the Group Executive Committee,Deutsche Bank AG, Germany; Vice-Chairman ofthe Foundation BoardKurt Alig Chairman, Arcadia Treuhand AG,Switzerland; Secretary of the Foundation BoardPeter Brabeck-Letmathe Chief ExecutiveOfficer, Nestlé SA, SwitzerlandLord Carey of Clifton Former Archbishop ofCanterbury, United KingdomVictor L. L. Chu Chairman and Chief ExecutiveOfficer, First Eastern Investment Group, Hong Kong SARFlavio Cotti Former President of SwitzerlandMichael S. Dell Chairman and Chief ExecutiveOfficer, Dell Computer Corporation, USACarly Fiorina Chairman and Chief ExecutiveOfficer, HP, USANiall FitzGerald Chairman, Unilever Plc, United KingdomOrit Gadiesh Chairman, Bain & Company, USARajat Gupta Senior Director, McKinsey &Company Inc, USANobuyuki Idei Chairman and Chief ExecutiveOfficer, Sony Corporation, JapanCaio Koch-Weser Secretary of State of Finance,GermanyHenry A. McKinnell Chairman and ChiefExecutive Officer, Pfizer Inc, USAHeinrich von Pierer President and ChiefExecutive Officer, Siemens AG, GermanyH.M. Queen Rania of the Hashemite Kingdom of JordanPeter Sutherland Chairman of Goldman SachsInternational; Chairman of British PetroleumCompany Plc, UKErnesto Zedillo Ponce de Leon Director, YaleCenter for the Study of Globalization; formerPresident of Mexico

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Contents

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The World EconomicForum is the foremostglobal community ofbusiness, political,intellectual and otherleaders of societycommitted to improvingthe state of the world

The Executive Chairman’s statement 2

Annual Meeting 4

The regional agenda 10

Global Institute for Partnershipand Governance 16

Centre for Strategic Insight 19

Our members and partners 21

Our communities and constituencies 23

Our people 26

Our organization 28

The Forum leadership 30

The Forum community 31

Sharing knowledge 32

Our financial results 34

Our mission and values 36

Pictured on the cover, clockwise from top left, are: Dick Cheney, Vice-President of the United States of America; Vladimir Putin, President of the Russian Federation; Pervez Musharraf, President of Pakistan, and Aleksander Kwasniewski, President of Poland

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The Executive Chairman’s statement

The year 2003/2004 provided a welcome breathingspace for the global community. After two yearsovershadowed by September 11, war in Iraq andfinancial volatility, it was a period of relative calm,marked by no all-consuming crisis and with signs ofeconomic recovery.

This respite generated a more optimistic mood amongglobal leaders. Ironically, it also provided the space toreflect on the many complex risks that threaten us:from terrorism and uncertainty in the Middle East tocorporate fraud and emerging pandemics. Suchglobal challenges can never be met alone, howeverstrong a nation, industry or company. Their complexityand interdependence must be met by integrated andinterdisciplinary action – from business, government,religion and the wider community. To succeed, suchcooperation requires a robust international framework:one that transcends barriers of politics, religion andindustry; that brings different organizations andindividuals together in partnership, and has theorganizational capability to pursue pragmaticsolutions. Alone among international organizations, theWorld Economic Forum provides this collaborativeglobal framework.

Our Annual Meeting 2004, which brought together2,280 leaders from 94 countries, demonstrated the value we provide. The theme Partnering forSecurity and Prosperity was aptly chosen asparticipants emphasized the need for interdisciplinarycooperation. The benefits of such partnerships wereimmediately apparent. The raft of practical initiativesannounced ranged from programmes to provide ITcentres for poor communities to pledges to economic

reform in the Arab world. As important were therelationships made and bridges built that will engenderfuture action.

Our regional activity again showed the Forum asrelevant, timely and proactive as we met influentialleaders, in key places, at the right time. The EuropeanEconomic Summit was held in Warsaw on the eve ofEuropean Union enlargement. The World EconomicForum in Jordan positioned us in the Middle East asthe international community focused on thereconstruction of Iraq and the stability of the widerregion. We held our Asia Strategic Insight Roundtablein Seoul one month after South Korean President RohMoo-Hyun was reinstated following his earlierimpeachment, and we convened our Russia Meeting2003 in Moscow shortly before Duma andPresidential elections.

Throughout the year, the Forum provides the tools andresources our members need to pursue activities toimprove the state of the world. To deepen our value tomembers during the year we continued to develop ourorganization. Our new structure reflects and underlinesthe Forum’s unique dual offerings: providing value toboth business and wider society. This is particularlyreflected in the twin pillars of the new organization: theCentre for Strategic Insight and the Global Institute forPartnership and Governance. The Centre devisesdynamic, incisive and relevant content for our summits,including scenario building, based on an expertunderstanding of global business and emerging risks.The Global Institute promotes public-privatepartnerships to help address major internationalchallenges, from greenhouse gas emissions to IT

Partnering forsecurity andprosperity

literacy. In doing so the Institute puts the non-businesscommunity at the very heart of the Forum. Thus, itcould be said that the Centre provides the environmentfor members to acquire and share knowledge andmake the decisions and contacts to take action, whilethe Global Institute provides the vehicles and initiativesto help them succeed.

We have recruited one of the foremost authorities inscenario development, Ged Davis, to lead the Centrefor Strategic Insight. Ged held senior positions with theRoyal Dutch/Shell Group, latterly as head of itsscenarios team. Outside the corporate world, he hasundertaken scenario work for the World BusinessCouncil for Sustainable Development, theIntergovernmental Panel on Climate Change Emissionsand UNAIDS. The Global Institute for Partnership andGovernance is headed by Rick Samans, who joinedthe Forum as a director in 2001. Rick, a former specialassistant on international economic policy to the USPresident, is well qualified for this public-private role.

To make sure the new organization achieves optimumperformance, we introduced a change programmecalled Waves. This far-reaching initiative involves threestages or ‘waves’, focusing sequentially on theindividual, teams and the overall organization. The HRteam also laid the groundwork for a development andcoaching programme for the Forum’s senior managers.I would like to thank all our people for theircontribution; they do an extraordinary job. Thanksmust also go to the Foundation Board and ourconstituencies who, during the course of 2003/2004,showed true ownership of, and commitment to, theForum by taking on far more strategic responsibility.

Rigorous management, and the more positiveeconomic climate, helped us to achieve a strongfinancial performance. Despite a first half clouded bythe continuing repercussions of the SARS outbreakand the tail end of the economic downturn, ourincome rose to Sfr.74,058,911. This will enable us toadd Sfr.1,751,121 to our reserves, allowing us tocontinue to invest in the Forum’s future.

Youth has always been a key part of our identity, both in the age balance of our staff and in theconstituencies of young leaders that we support. InMay, we announced the creation of a dynamic newyoung leaders community. This Forum of Young GlobalLeaders will bring together 1,111 men and womenfrom all walks of life who have shown commitment toimproving the state of the world. I am convinced theywill go on to provide a true competitive advantage tothe Forum, making it more forward-looking, innovativeand provocative, qualities essential if we are to helpachieve a more prosperous and peaceful future.

In terms of membership development, financial results,institution building, as well as human resourcesdevelopment, last year was the most successful in thehistory of the World Economic Forum. I would like tothank our members, whose engagement made thissuccess possible.

Klaus SchwabFounder and Executive Chairman

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

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The World Economic Forum’s 2004 AnnualMeeting was held in a spirit of cautious optimismafter two years in which it had been dominated bythe threat of global terrorism and war in Iraq. Itprovided a unique platform for leaders from 94countries and all walks of life to seek ways ofdriving forward global economic development, for the good of both business and society.

Although the world remained a fragile anduncertain place, the Meeting was convenedagainst a background of encouraging signs in the global economy and on the geopolitical scene. To reflect the Forum’s conviction that amultistakeholder approach is needed to reinforcethis positive trend, discussions were held under thetheme of Partnering for Security and Prosperity.

At the Annual Meeting, 2,280 leaders, from thearenas of politics, academia, non-governmentalorganizations, the media, religion and civil societyconvened in Davos, Switzerland. In a series ofworkshops, panel discussions and plenarysessions the participants focused on seven keythreads: ensuring global security; promoting globalgrowth; managing new risks; building corporateresilience; spurring innovation; harnessing thediversity of values, and reducing inequality.

With no single overwhelming issue heading theinternational agenda, participants tackled a verybroad subject range. As they explored thecomplexity and interdependence of globalchallenges three clear themes emerged:

Annual Meeting

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John Ashcroft, US Attorney-General

Mohammad Khatami, President of the Islamic Republic of Iran

Media Fellows/Leaders

Public figures

NGOs

Religious leaders

Technology Pioneers

Global Leaders for Tomorrow

Academia

Other constituents

Business

Ratio of Annual Meeting participants 2004

• There is a need to address major internationalissues in an integrated and interdisciplinary way

• A comprehensive and structured framework for collaboration is required because globalchallenges cannot be met by any singlegovernment, industry or business

• There is a need for a more proactive andpragmatic approach to supranational challenges

The Annual Meeting acted to address these issues by providing a springboard for greaterbusiness engagement in public-privatepartnerships. Concrete actions included: a jointinitiative between Microsoft and the United Nationsthat will provide US$1 billion to establish computercentres in poor communities; a collaborationbetween the US Agency for InternationalDevelopment, VISA and the Foundation forInternational Community Assistance to benefitmicrofinance clients in the developing world; andthe re-launch of the Trans-Atlantic BusinessDialogue, which promotes closer commercial tiesbetween the US and the European Union.

The World Economic Forum also launched arange of initiatives designed to promote positiveinternational collaboration. For example:

• The Global Greenhouse Gas (GHG) Register wasofficially launched and 11 companies confirmedtheir commitment to disclosing the amount ofgreenhouse gases produced by their worldwideoperations. It is the only global initiative

dedicated to providing credible, transparent andstandardized corporate GHG emissions data tothe general public. The register aims to stimulatethe disclosure and management of worldwideclimate emissions by major companies

• In a move to combat global corruption, 19 leading international engineering andconstruction companies adopted a set ofbusiness principles for countering bribery. These businesses represent total annual revenue in excess of US$70 billion. Theprinciples were the product of a year-long effort by the World Economic Forum’s Governors for Engineering and Construction Task Force, working closely with TransparencyInternational and the Basel Institute onGovernance. The companies have committed to ‘zero tolerance’ of bribery and to the development of a programme of internal systems and controls for implementing this policy

• The CEOs of eight logistics and transportationcompanies called on their peers to take the leadin placing corporate citizenship at the heart ofbusiness strategy. In a joint statement under theForum’s Logistics and Transportation CorporateCitizenship Initiative, they committed themselves

“Our principles will be of no value if they do not

translate into action... We are rising to this challenge,

realizing that business and community go hand-in-hand.”

Peter Bakker, Chief Executive Officer, TPG, the Netherlands

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Recep Tayyip Erdogan, Prime Minister of Turkey Jack Straw, UK Secretary of State for Foreign andCommonwealth Affairs

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

As well as these explicit outcomes, the AnnualMeeting once again proved a useful environmentfor healing rifts and promoting understanding. It witnessed an easing of tension between the US and Europe, following differences over the war in Iraq, and positive steps towards peacebetween opposing parties in Israel, Cyprus and Kashmir.

The Forum continued to act to promoteunderstanding and tolerance between the Muslim and Western worlds. Pakistani PresidentPervez Musharraf urged the two cultures to adopt a two-pronged approach to bridging the gap between them. He urged Muslims to rejectextremism and focus on socio-economicdevelopment and the West to resolve politicaldisputes involving Muslims and provide them with economic aid.

Initiatives launched at the Meeting included:• The ratification of a blueprint for economic

reforms across the 22 nations of the Arab world by the Arab Business Council (ABC)of the World Economic Forum. The documentfocuses on economic liberalization and reforms,governance and human resource development.The ABC was created at the Forum’sExtraordinary Annual Meeting in Jordan in 2003 to take action on key issues in the region.It seeks to enhance regional competitiveness,promote the economic integration of the regioninto the global economy and to engage the leaders of the private sector to work withgovernments to carry out reform

• The Forum launched its Young Arab Leaderscommunity. The group aims to galvanize apredominantly young population from across the Arab world to work for positive change. Thecommunity launched a drive to recruit some 100 potential leaders under 45 who would strive for a brighter future for the Arab world.This group will promote champions and role models to inspire Arab youth, in an effort to build a new heritage for the Arab world that will be in line with its cultural traditionsand which could engage seamlessly with theglobal community

• The Forum officially launched the Council of 100Leaders. This group aims to become theforemost community of senior political, religious,business, media and opinion leaders to promoteunderstanding and dialogue between the

Annual Meeting

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Olusegun Obasanjo, President of Nigeria Jean-Claude Trichet, President, European Central Bank

“We cannot talk about growth and stability in my region

without addressing a core conflict... the long and hateful

cycle of violence between Israelis and Palestinians.”

King Abdullah II of Jordan

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Western and Islamic worlds. The Councilincludes 20 leaders from each of these five sectors, representing Western and Islamic thought

Alongside optimism about a global economicrecovery and a hunger for better dialogue between Islam and the West, there was alsoconcern about the emerging challenges and risksthat face the world. These ranged from thepotential financial crisis in China and turmoil in Iraq to growing US deficits, corporate scandals and the forthcoming US election.

Further evidence of the challenges that lie aheadfor the global community came from a series ofreports and surveys published both before andduring the Annual Meeting, as a framework fordiscussion. These included:

• The Voice of the People survey, carried outexclusively for the World Economic Forum byGallup International. This revealed that halfthose questioned felt global security was poorand that the next generation would live in amore dangerous world. It was based oninterviews with almost 43,000 people from 51countries, representing the views of more than1.1 billion citizens

• The report of the World Economic Forum’sGlobal Governance Initiative concluded thatgovernments, international organizations,business and civil society were not engagedsufficiently in realizing the United Nations

Millennium Declaration goals. The Declaration set targets for peace, security, poverty, hunger,education, health, environment and humanrights. The report found that during 2003, theinternational community rated no more than fourout of 10 in any area

• A World Economic Forum survey Living Happily Ever After: The Economic Implications of Ageing Societies showed how the combinedeffects of slower labour force growth andpopulation ageing could undermine the pension systems and broader economicprospects of many developed countries. The report pointed to greater immigration, investment in technology and attractingadditional workers into the labour force aspossible remedies

• A report from UNICEF and the MicronutrientInitiative, Vitamin and Mineral Deficiency,concluded that a lack of basic vitamins and minerals was damaging the health of a third of the world’s population and holdingback the economic development of mostcountries in the southern hemisphere. The report found that this lack impaired intellectual development, compromised

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

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

“All elements of society need to work much more

effectively if we are to meet the [Millennium] goals by 2015.

No one group on its own can achieve the goals.”

Sir Mark Moody-Stuart, Chairman, Anglo American Plc, United Kingdom

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immune systems, provoked birth defects andconsigned two billion people to lives below theirphysical and mental potential

The Annual Meeting provided a valuableopportunity to identify and address the broadspectrum of challenges to global security,prosperity and peace. For example, United NationsSecretary-General Kofi Annan urged businessleaders to swing their support behind theMillennium Goals and warned against a slide backinto brute competition and “the laws of the jungle”.

Mr Annan could not have chosen a more influentialplatform to deliver this message. More than halfthe participants were business leaders drawn fromthe world’s major companies, including 24 of theFortune 50 top businesses. There were also 31

heads of state, 75 cabinet ministers, 52 heads ofnon-governmental organizations, 250 media andopinion leaders, 164 academics, 28 religiousleaders from a variety of faiths and 18 internationaltrade unionists.

The non-governmental organizations participatingincluded Amnesty International, Human RightsWatch, Transparency International, WWF, Save theChildren, CARE, World Vision International and theInternational AIDS Vaccine Initiative.

The Annual Meeting once again provided a uniquebarometer of leadership attitudes, with participantsreturning home with new insights into global andregional issues. They also built strong relationshipsacross communities and regions, helping to breakdown international and cultural barriers andpromote understanding.

For more about the Annual Meeting 2004, visitwww.weforum.org/annualmeeting

Annual Meeting

Mario Monti, Commissioner for Competition, European Commission,Brussels

Mikheil Saakashvili, President of Georgia

“The United Nations must also protect millions of our

fellow men and women from the more familiar threats

of poverty, hunger and disease.”

Kofi Annan, United Nations Secretary-General

Open Forum Davos 2004

The second Open Forum Davos was attended by more than 2,000 local people and was againsuccessful in developing public understanding and support for the global issues that werediscussed at the World Economic Forum.

The event, organized jointly by the Forum, Breadfor All and the Federation of Swiss ProtestantChurches, invited the general public to take part in nine debates around the topic of Globalization or Deglobalization for the Benefit of the Poorest?

Following the success of the first Open ForumDavos in 2003 the event evolved to engage greater business participation and, consequently,more in-depth, high-quality discussion.

Industry participants included such leading figuresas Peter Brabeck-Letmathe, Vice-Chairman andCEO of Nestlé, and Travis Engen, President and CEO of Alcan. Many local schoolchildren were also involved in the event.

Among the highlights were the sessions:• Trade Round, Where There Is a Will, There Must

Be a Way – which focused on such issues as the implications of the world trade discussions atCancun, how to get negotiations back on trackand the positive role for the private sector

• Globalization or Deglobalization for the Benefit of the Poorest? – this debate examined thechallenges ahead, drawing on the newly releasedreport of the International Labour Organization’sWorld Commission on the Social Dimension of Globalization

Other sessions covered labour rights partnerships,the biodiversity agenda, financial crisis andglobalization, children’s rights, and religion.

A small number of anti-globalization demonstrationstook place during the programme and some ofthese dissenting voices were given a platform toshare their views. These interactions reflect theForum’s commitment to engage in dialogue with all parts of society.

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

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

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The World Economic Forum seeks to tackle thecritical issues facing every region of the world. In2003/2004, we again worked closely with regionalpartners to find solutions to such challenges and todeliver social and economic development.

AfricaThe 14th Africa Economic Summit in Maputo,Mozambique reaffirmed the central role of businessin the New Partnership for Africa’s Development(NEPAD) but also highlighted the need to translatewords and ambitious ideals into concrete action.

Mozambique, with its impressive range ofsuccessful investment projects and model cross-regional public-private partnerships, demonstratesjust what can be achieved through exemplarygovernance, sound leadership and a strong civilsociety and acts as a beacon of hope for the rest of Africa.

To assess how to spread the best practice foundin Mozambique, summit participants visited someof the country’s key development sites and soughtto identify the crucial factors that would enablethese projects to be replicated elsewhere acrossthe continent.

Based on the case studies of recent successfulpartnerships, such as the roll out of GSM telephony in Nigeria and the SASOL Natural Gas Projectlinking Mozambique and South Africa, participantsdiscussed how to overcome such barriers asaccess to finance, regulatory environments andcapacity constraints.

The NEPAD Business Group (NBG) (formed at the2002 Africa Economic Summit and now comprisingmore than 350 African companies, businessassociations and multinationals active in Africa)highlighted the need for business to act responsiblyin support of the NEPAD.

Plans to create a NEPAD Business Foundation tomobilize and direct the business contribution to well-managed projects were announced at Maputo. NBGworking groups in transport, energy, construction,financial services and information andcommunications technology also reported theirprogress in developing action plans.

The launch of the World Economic Forum AfricaCompetitiveness Report, which described thecontinent’s dismal growth performance as “theworst economic tragedy of the 20th century”,generated a great deal of interest and concern atan international level. In 2003/2004, the Forum’sGlobal Health Initiative and Water Initiativecontinued to play a valuable part in improving thequality of life for Africans.

For more information about the Africa EconomicSummit, see www.weforum.org/africa

The regional agenda

Buildingglobal andregionalpartnerships

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“Mr Mugabe is a bad lawyer who has a good cause...

Because the cause he upholds – which is African land

rights – is fine. But it depends how you do it.”

Abdoulaye Wade, President of Senegal

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The regional agenda

Middle EastThe Middle East needs reform, development andgrowth. These goals require genuine partnershipsto energize the region’s potential and address itscommon challenges. Such were the messages atboth the Annual Meeting and the World EconomicForum in Jordan.

The World Economic Forum in Jordan in May 2004brought leaders together for discussions under thetheme Facing the Real Challenges: Partnering forChange, Peace and Development.

The meeting was the region’s premier platform forengaging business and governments in a processfocused on implementing policy reform.

The 650 participants came from both the MiddleEast and around the world under the patronage ofHis Majesty King Abdullah II of Jordan. Key issuesdiscussed included the handover of power in Iraqand Arab-Israeli relations, but the meeting alsofocused on both political and business reform. For details, see www.weforum.org/jordan

During 2003/2004, the newly created Arab BusinessCouncil (ABC) of the World Economic Forum sought to enhance competitiveness in the region. It focusedon cooperating with the region’s governments andleading organizations to encourage market-orientedeconomic reforms, reinforcing the voice of Arabbusiness leaders, and serving as the advisory body tothe World Economic Forum on its strategy in theMiddle East.

ABC members ratified a blueprint for reformsacross the Arab world that focused on economic

liberalization, governance and human resourcedevelopment. To spread best practice, theyadopted covenants on accounting and auditstandards, corporate social responsibility,corporate governance and combating corruption.The ABC also supported the establishment of theEgyptian National Competitiveness Council. Jordanagreed to create a similar body and discussionswere begun with Bahrain and Morocco.

Another group of particular significance to theMiddle East, the Council of 100 Leaders, launcheda framework for its activities. Among the projects itannounced was the creation of an enhanced newsand information service providing a unique source offacts on Western/Islamic issues in multiplelanguages. The Council, which fosters dialoguebetween the West and the Arab world, is co-chairedby Lord Carey of Clifton, former Archbishop ofCanterbury in the UK, and H.R.H. Prince Turki AlFaisal Al Saud, Chairman of the King Faisal Centrefor Research and Islamic Studies in Saudi Arabia.

In Jordan, the World Economic Forum’s Young ArabLeaders group proposed an action plan to transformthe Arab world and aid its integration into the globaleconomy. The plan is based on a three-prongedapproach to enhance Arab competitiveness. First, itaims to re-instil pride in Arab heritage and its ability toachieve goals. Second, it seeks to motivate Arab youthto work towards achievement, and third, it intends toengage Arab youth with specific Young Arab Leaders’programmes that offer appropriate role models.

The Jordan Education Initiative, a public-privatepartnership designed to deliver effective learning to the kingdom’s citizens, continued its successful development.

EuropeThe European Economic Summit in Warsawwas timed to coincide with the enlargement of theEuropean Union from 15 to 25 members on 1 May2004. It was the first meeting to convene key playersof the new Europe at the highest level and broachedsuch important issues as the developing labourmarket, immigration and the investment climate.

More than 20 heads of state were among the 630leaders from business, academia, the media and civilsociety who convened at the summit in Poland, thelargest of the accession countries. Among them were

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

The European Economic Summit was convened inPoland to provide a platform for leaders from business,politics and civil society to discuss issues facing theregion on the eve of European Union enlargement.

BBC World televised a World Economic Forumdebate on enlargement and immigration, presentedby leading journalist and anchorman Nik Gowing,days before 10 new countries joined the EU. WhileEurope’s falling birth rates make importing newworkers essential, it was thought that there was aneed to better manage immigration.

The debate included such key personalities as GünterVerheugen, the European Union’s Commissioner forEnlargement, Portuguese President Jorge Sampaioand Italy’s Minister of Innovation and Technology, LucioStanca. Viewers heard that public fears about migrants

were largely the result ofearlier mistakes that hadallowed uncontrolledimmigration. Stancaemphasized that effortswere needed to informthe public that foreignworkers were necessary.

Frank Laczko, who heads research at theInternational Organisation for Migration, said thatfears of a flood of migrants were largely unfounded.He pointed out that after the fall of the Berlin Wall,there were fears that 25 million workers might floodfrom East to West. In fact, there are now only850,000 migrants from Eastern and Central Europeliving in the West.

European Union enlargement

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heads of state from countries that could form the nextwave of enlargement, including Romanian PresidentIon Iliescu and Georgi Parvanov, President of Bulgaria.

The key themes that emerged included the need to step up efforts towards the goal of the LisbonAgenda, a 10-year strategy to make Europe themost competitive economy in the world by 2010.Discussions followed the World Economic Forum’ssecond Lisbon Review, which compared theeconomies of new and old Europe and concludedthat the strongest new EU members could out-perform the weakest older members.

Debate also focused on the need to draw on the spiritof the new EU members to drive entrepreneurshipforward and the essential message that enlargementwas part of an ongoing process. Beyond the EU’sborders, there are neighbours eager to identify withthe emerging European identity, a point highlighted by the presence of Leonid Kuchma, President of theUkraine, and three heads of state from the Caucasus.

A survey of business leaders, launched at the end of the summit, revealed that 89% felt the inclusionof the 10 new countries would make a positivecontribution to the debate on European economicreform, with four-fifths believing EU expansion hadnot yet reached its limit.

Through a hugely successful collaboration with BBCWorld, the summit also saw the international broadcastof an hour-long debate involving key participants thatreached more than 250 million viewers worldwide. The debate explored the issues surrounding themigration of jobs and people across Europe. For more information, visit www.weforum.org/europe

The future of Far Eastern Europe was high on theagenda at the Annual Meeting, where Europeanleaders present included Recep Tayyip Erdogan,Prime Minister of Turkey, and Georgian PresidentMikheil Saakashvili, who introduced his economicprogramme and invited foreign investment.

In 2003/2004, Forum initiatives continued to play an important role in shaping the European agenda.As well as the Lisbon Review, the GlobalCompetitiveness Programme also published TheGlobal Competitiveness Report, which provided aunique appraisal of the performance of Europeaneconomies within its worldwide coverage.

Many European businesses continued to be involvedin the Forum’s Global Corporate GovernanceDialogue. Considerable scope remains to extend thisinitiative to countries in central and eastern Europe,where many companies continue to need guidancein the principles of corporate behaviour.

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

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The regional agenda

The World Economic Forum’s Russia Meeting inMoscow coincided with Russia recording the highestgrowth rate of the post-communist era, its firstinvestment grade ranking, government action againstthe Yukos oil company, and the eve of national elections.

The main thrust of the meeting was a broadscenario-building exercise, which captured theattention of the meeting’s 400 business executivesand analysts. Russia’s competitiveness and theimportance of its oil and gas industries were amongthe key issues. The highlight of the summit was anaddress by President Vladimir Putin, who expressedoptimism for the country’s economy.

Asia and the Far EastThe East Asia Economic Summit in Singapore,held under the theme Asia’s Future: RecapturingDynamism amidst the region’s recovery from SARSand in the aftermath of terrorist bombings in Bali andJakarta, was a striking symbol of Asia’s ability to cometogether at times of crisis. Business leaders at the

summit used the occasion to voice strong support forquickening economic integration in Asia, prior to the2020 deadline set by ASEAN’s leaders.

The China Business Summit in Beijing, inNovember 2003, saw the joint efforts of the WTO, the UNCTAD and IFC, under the umbrella of the WorldEconomic Forum, to support and enhance China’sintegration into the global trading and economiccommunity. Five hundred business leaders heard a call from the government for greater corporateresponsibility and also took part in a ground-breakingseries of workshops to highlight the role ofpartnerships between business, government and civilsociety to combat the spread of HIV/AIDS in China.

Also in November 2003, around 500 senior businessleaders, experts, members of the government andsenior officials convened for the India EconomicSummit in New Delhi. Participants sought to assessIndia’s competitiveness and to develop blueprints forsuccess. For details, see www.weforum.org/india

The Asia Strategic Insight Roundtable in Seoul,Republic of Korea, was held in June in the wake ofPresident Roh Moo-Hyun’s return to office after hisimpeachment was overturned. Two hundred topdecision-makers, from business government and civilsociety convened to examine emerging challenges.Participants assessed future scenarios and

After Manmohan Singhbecame Prime Minister ofIndia in May 2004 one ofthe first internationalvisitors he received wasColette Mathur, the WorldEconomic Forum’s Indiaand South Asia director.

Their meeting reflected the close and trustingrelationship that India and the Forum have enjoyed fortwo decades. A relationship that began formally inGeneva in 1984, when then-prime minister RajivGandhi agreed to host an inaugural India EconomicSummit the following year.

In December 2004, leaders of India’s business andpolitical community and their international peers will

meet in New Delhi to celebrate the 20th anniversaryof the India summit. They will discuss India’sachievements in areas of priority for the country’ssustained economic progress, especially in ICT,biotechnology, pharmaceuticals, research anddevelopment, auto components, manufacturing,outsourcing and foreign investments, whileidentifying areas where further reforms and progressmust be achieved.

Mathur said that the Forum had been an advocatefor the potential and quality of Indian industry, longbefore its recent economic boom. She said: “TheForum always shared its expertise and experiencewith the country. Going forward, we can supportIndia on such key issues as reform, on foreigninvestment, and in the growing multinationalism ofthe business sector.”

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

“America wants the strongest possible Europe...

You must not sell yourselves short, and settle for less

than the military capability and influence you deserve.”

Dick Cheney, Vice-President of the United States of America

India

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In June 2004, 200 political and business leadersconvened at the Asia Strategic Insight Roundtablein Seoul, Republic of Korea, to exchange ideas andscenarios for the future of the region’s economy.

Participants focused on such key questions as theresilience of the Japanese recovery and the ability ofChina to achieve a ‘soft landing’ after years ofimpressive economic growth. During the event, whichwas hosted by President Roh Moo-Hyun, leaders alsodebated the pace of Asian economic integration, theconsequences of Chinese companies going global,Asia’s security concerns, the transition to urbaneconomies and the region’s growing energy demands.

Among key themes to emerge was a cautiousoptimism for the entire region fuelled by theeconomic success of China and India, although

Japan’s limited recoveryweighed heavily on theminds of participants,who included HeizoTakenaka, Minister ofState for FinancialServices, Economic andFiscal Policy of Japan.They also examined abroad spectrum of risks to the economic and socialdevelopment of Asia, including terrorism and arecurrence of the SARS pandemic.

The leaders agreed there was a need for constantmonitoring of the tensions and uncertainties aroundthe Korean peninsula, Taiwan Straits andIndia/Pakistan, which threatened to overshadowinvestment decisions.

Asia Strategic Insight Roundtable

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developed new strategies in response to suchchallenges. See www.weforum.org/eastasia

In February 2004, members of the World EconomicForum’s New Asian Leaders (NALs) community heldtheir official retreat in Malaysia. His Majesty KingAbdullah II of Jordan gave a keynote address andtook a leading role at a meeting between the NALsand the Arab Business Council.

In May 2004, Klaus Schwab met privately withPremier Wen Jiabao and other state leaders todiscuss the Forum’s 25-year relationship with China.

North AmericaThe region continued to expand its presence in theWorld Economic Forum with a third of all corporatemembers now coming from the US. This highrepresentation satisfied the continuing demand ofother world leaders to engage with the US.

In November 2003, the Forum convened more than100 US leaders at Columbia University in New Yorkto prepare for the Annual Meeting. It was the first‘Taste of Davos’ event held in the country and gaveparticipants an insight into the topics and a chanceto contribute their own views.

Following previous divisions over the conflict in Iraq, US Vice-President Dick Cheney presented the

administration’s position in the aftermath of the warduring the Annual Meeting. He was joined at Davosby 15 Members of Congress from both theRepublican and Democratic parties. The US alsosought to address concerns about Iraq at the WorldEconomic Forum in Jordan summit, where Secretaryof State Colin Powell led a delegation that met Arableaders in the aftermath of the Abu Ghraib prisonabuse scandal.

Latin AmericaAfter several years of political and economicinstability, Latin America began to show signs ofrecovery. Nevertheless, the need to strengtheninstitutions, deliver economic reforms and improvesocial conditions remained.

The region is seeking to improve competitiveness,particularly in meeting the challenge of China’sgrowing importance in the world economy. Throughour Global Competitiveness Programme, the Forumsought to contribute to regional thinking and to helpmake the Latin economies more competitive.

At the Annual Meeting, the failure of World TradeOrganization negotiations at Cancun was of highconcern because trade liberalization is essential foreconomic development in Latin America. Davos alsosaw a meeting between Brazilian and Indianparticipants to build a closer relationship.

Roh Moo-Hyun, President of the Republic of Korea

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

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Global Institute for Partnership and Governance

Advancing thespirit andpractice ofglobal citizenship

In 2003/2004, the World Economic Forumestablished the Global Institute for Partnership andGovernance. The Global Institute works to advancethe spirit and practice of global citizenship throughspecific acts of collaborative problem-solving. Itprovides a platform for multistakeholderpartnerships that seek to tackle global challenges by catalysing action, improving governance andbridging perspectives.

Global Health Initiative (GHI)The GHI seeks to increase business efforts to tackleHIV/AIDS tuberculosis and malaria. It serves as afocal point for private sector engagement with theGlobal Fund to Fight AIDS, TB and Malaria, and theStop TB and Roll Back Malaria partnerships.

The initiative continued to work with Forum membercompanies and bodies such as the World HealthOrganization, the Joint United Nations Programme on HIV/AIDS, the International Labour Organization,and the World Bank in southern Africa, India andsouth-east Asia. It launched the India BusinessAlliance to Stop TB, which will serve as a model forsimilar initiatives in other regions. It also published the first report on the global business response toHIV/AIDS, suggesting that companies are not yetplaying a significant role in tackling the pandemic.

Jordan Education InitiativeThe Jordan Education Initiative (JEI) brings togethernearly 30 companies with the Jordanian authoritiesto transform public education through technology. In2003/2004, it accelerated curricular, teaching andinfrastructure reforms in 50 schools and introduced

e-curricula in mathematics. The impact of JEIreforms at 96 designated ‘Discovery Schools’ wasfelt by 17,500 pupils and 500 teachers. The JEI alsosupported the development of the kingdom’s ITindustry with each e-curriculum being developedjointly by international and Jordanian IT companies.

Global Greenhouse Gas (GHG) RegisterIn 2003/2004, the Forum, in partnership withbusiness and environmental groups, launched theGlobal Greenhouse Gas Register. This is the firstinternational initiative dedicated to providingcomparable and comprehensive corporategreenhouse gas emissions data to the public. Itgives companies from all regions and industrysectors the chance to show how much GHG theyproduce, and what they are doing about it. Elevenmajor businesses signed up to the register. Thesecompanies emit an estimated 800 million tons ofcarbon dioxide equivalent per year.

Water InitiativeThe Water Initiative facilitates multistakeholder co-operation in the management of watersheds. Wateris a key resource and the initiative strives to improvethe quality and quantity for business and communities.Its activities in 2003/2004 included the launch of theAfrica Water Project Exchange, which successfully w

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“What we really need to do is to stop new people from

being infected [with HIV/AIDS]. The most dramatic thing

would be a microbicide or a vaccine.”

Bill Gates, Co-founder, Bill and Melinda Gates Foundation

Global Institute for Partnership and Governance

matched five water-related projects with potentialfunding organizations. For more information aboutthe initiative, see www.weforum.org/water

Global Governance InitiativeThe Global Governance Initiative monitors the efforts of governments, the private sector, internationalorganizations and civil society towards the goals of the United Nations Millennium Declaration. Theseobjectives relate to poverty, conflict, health, education,the environment, human rights and hunger. In 2004,the initiative’s first annual report concluded that theinternational community was investing less than halfthe effort needed to meet these targets.

Pension System Readiness InitiativeIncreased life expectancy is putting unsustainablepressure on pension systems. The Pension SystemReadiness Initiative brings together leaders from thefinancial services and employment sectors with seniorcitizens’ groups, labour unions and governments toassess international retirement system readiness.During the year, the initiative developed, with Watson

Wyatt Worldwide, an assessment of the readiness ofOrganisation for Economic Co-operation andDevelopment (OECD) countries, which is intended as atool to spur greater action.

Global Corporate Citizenship InitiativeMore than 70% of CEOs surveyed by the WorldEconomic Forum believe that mainstream investors willdevelop a greater interest in corporate citizenshipissues. The findings were published in a major reportentitled Values and Value: Communicating theStrategic Importance of Corporate Citizenship toInvestors. The Global Corporate Citizenship Initiativefocuses on improving corporate social responsibilityprogrammes. It hosted three roundtable discussionson ‘Mainstreaming responsible investment’.

Council of 100 LeadersThe Council of 100 Leaders was launched at theAnnual Meeting with a debate on Promoting Inter-Civilizational Dialogue and Action. This was followed bya debate on Modernism, Secularization and Religion atthe World Economic Forum in Jordan. The councilseeks to support projects that address problemsfacing society in the areas of education, justice, peace, advancing development, social justice andhuman rights.

For more about the Global Institute for Partnership andGovernance, see www.weforum.org/GIPG

“At Alcan, we now know that whether we are managing

a watershed or a harbour, we have an inescapable

duty to the larger community.”

Travis Engen, CEO of Alcan Inc, Canada

In 2003/2004, the WorldEconomic Forum launcheda new matchmakingservice to create public-private partnerships for thedelivery, conservation andmanagement of waterprojects in Africa.

The Africa Water Project Exchange was inaugurated byPresident Joaquim Alberto Chissano of Mozambiqueat the Africa Economic Summit 2004 in Maputo. Tomark the occasion, President Chissano and GuguMoloi, CEO of Umgeni Water, South Africa, started aplay pump – a merry-go-round that allows children todraw water for their school while they play. The pumpis one of the schemes to benefit from the programme.

During the summit, the World Economic Forumannounced the first promising water projectpartnerships, including initiatives in Mozambique,Nigeria, South Africa, Malawi, Tanzania, Kenya and Swaziland.

Activities include strengthening the Joint WaterCommission between Swaziland and Mozambiquewith private and public involvement; a wateroptimization programme for 16 bottling plants inNigeria and a recycling project in industrialdevelopment zones in South Africa.

The Africa Water Project Exchange is the first regional component of the Water Project Exchange,the main activity of the World Economic Forum’s Water Initiative.

Africa Water Project Exchange

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

Centre for Strategic Insight

The private sector will benefit from breakthroughideas on improving the way companies operate,thanks to a joint project between the WorldEconomic Forum’s Centre for Strategic Insight and the Harvard Business Review.

The project included a workshop that sought toidentify the new thinking that would have the greatestimpact on business. The event brought together 20key individuals, including consultants, entrepreneurs,academic research directors, editors and others witha broad view of new and innovative ideas.

The team contributed around 10 ideas to be used in the Harvard Business Review’s list of newmanagement ideas, to be published early in 2005,and presented to the next Annual Meeting in Davos.

The information gatheredwill now be developed with the insights gained beingused to strengthen theForum’s knowledge baseand to enrich future events.

In another ground-breakinginitiative, the Centre forStrategic Insight launched the India and the Worldscenario project. Working with senior executivesfrom global companies, other thought-leaders andscenario practitioners, the project sought toanticipate a range of possible futures for thesubcontinent. The knowledge will be used to buildrobust strategies to meet coming challenges. Similarexercises are planned for Russia and the Arab world.

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In 2003/2004, the Forum established the Centre forStrategic Insight to identify emerging risks and tohelp shape the global business and political agenda.The Centre seeks to deliver a sound understandingof the challenges facing the world and to guideglobal corporate and government policy.

The Centre is organised into four core teams,focusing on: business insight; global insight;economics and competitiveness; and global andregional agendas. These teams aim to develop a unique understanding of the challenges facingevery region and to focus the World EconomicForum’s meetings, task forces and initiatives onthose issues that will have a major impact oneconomic development, both today and tomorrow.

Ged Davis, former head of scenario planning atRoyal Dutch/Shell, heads the new Centre. Workingclosely with the Forum’s networks and communitieshe has begun to develop a programme of concreteprojects. For example, one initiative was launched toassess likely political and economic developments inIndia and another to identify breakthroughmanagement ideas.

The Forum’s Global Competitiveness Programme willbe a key plank of the Centre’s activity. In 2003/2004,The Global Competitiveness Report was extended tocover 102 countries, up from 80 the previous year.

It received extensive positive international attention.Several events were arranged in conjunction with thepublication, including a session in Washington DC,with commercial attachés, and a competitiveness panel debate in New York.

The programme launched three other publicationsduring the year: The Global Information TechnologyReport, the Lisbon Review and The AfricaCompetitiveness Report. The competitiveness teamheld sessions at the Annual Meeting and regionalsummits and presented their work at a series ofnational conferences.

The Centre for Strategic Insight began to assessrisks facing the global economy ranging fromterrorism to those associated with science andtechnology. Working with a strategic partner, it willproduce a twice-yearly assessment of global risks.Plans were also drawn up for a new fortnightlymembers’ publication to include strategic insightupdates and reports on key industry sectors.

For more information about the Centre for StrategicInsight, see www.weforum.org/CSI

Thierry Malleret, Senior Director for Global Insight, left,and Ged Davis, head of the Centre for Strategic Insight

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

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The World Economic Forum works with influentialcompanies from all industry sectors and everyregion of the globe. Together we seek to tackle the most complex and challenging issues facingmankind and to improve the state of the world.

MembersOur members represent the world’s 1,000 leadingcompanies, including 200 smaller businesses,many from the developing world, which play a potent role in their industry or region. They aremore than just influential and powerful. Many arealso innovative and inspiring organizations thatchallenge conventional thinking and are committedto making the world a better place.

Reflecting our belief that global and regionalproblems are too large and complex to be solvedby any single organization, our members worktogether and with communities of leaders fromacademia, government, religion, the media, non-governmental organizations and the arts.

During 2003/2004, the following companies wereaccepted as members of the World EconomicForum: AirAsia Bhd, Ajit Khimji Group ofCompanies LLC, Alcoa Inc., Al Futtaim TradingGroup, Al-Ghurair Group of Companies, AlliedCapital, AlpInvest Partners NV, AMD (AdvancedMicro Devices Inc.), Anglo American Corporation ofSouth Africa Ltd, AngloGold Ashanti Limited, AttarGroup, Aveng Limited, Baker & McKenzie, BankLeumi Le-Israel BM, Beijing Capital Group Co. Ltd,Belgacom NV, Bin Zayed Group, British Sky

Broadcasting Group Plc, Carlyle Group, CDPCapital (Caisse de Dépôt et Placement duQuébec), Centre of Excellence for AppliedResearch & Training (CERT), China Aviation Oil(Singapore) Corporation Ltd, Chiquita BrandsInternational Inc., CNBC, Coinvertir – CorporacionInvertir En Colombia, Columbia House Company,Commercial League National Pharma Center Inc.,Covington & Burling, Daesung Group, Dallah AlBaraka Holding Co., Danaher Corporation, DentsuInc., Dr Reddy's Laboratories Ltd, DubaiInternational Financial Centre (DIFC), Dyno NobelAsa, eBay Inc., Emaar Properties PJSC, EmiratesNational Oil Company Ltd, Escorts Limited, FastRetailing Corporation (Uniqlo), FLAG TelecomGroup Ltd, Ford Motor Company, Fuji TelevisionNetwork Inc, Grupo IUSA, GuangzhouDevelopment Industry (Holdings) Co. Ltd, Halcrow Group Ltd, Havas Group, Hayel SaeedAnam Group of Companies (HSA Group), Hikma Pharmaceuticals, HSBC Bank Plc, Hyperion Solutions Corporation, InternationalContainer Terminal Services Inc. (ICTSI), Interros Holding Company, Isu Group, JapanAerospace Exploration Agency (JAXA), JapanTobacco Inc., JSW Group, Jubilant Organosys Ltd,Keppel Corporation Limited, Koç Holding AS,Konka Group Co. Ltd, Lenenergo JSC, LibertyMutual Group, Lucent Technologies Inc., Lupin Ltd,Maeil Business Newspaper and TV, MansourGroup, Mercer Inc., Metro AG, MobileTelecommunications Co., NASD, National Bank ofGreece, National Bank of Oman (SAOG), NationalFoundation for Teaching Entrepreneurship (NFTE),

Committing toour mission

Our members and partners

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Nigerian Economic Summit Group Ltd Gte (NESG),North Shore-LIJ Health System, OccidentalPetroleum Corporation, Office Chérifien desPhosphates (OCP), Olam International Ltd, OmanOil Company SAOC, Orange Plc, Petro-EnergyManagement Ltd, Pitango Venture Capital, PSACorporation Limited, Public Broadcasting Service(PBS), Quexco Inc., Research in Motion (RIM),Rosneft Oil Company, Royal DSM NV, SagawaExpress Co. Ltd, Sapura, SEB Groupe, SembcorpIndustries Ltd, Shamil Bank of Bahrain, SiliconGraphics Inc. (SGI), Singapore Airlines Limited (SIA),Sinochem Corporation, Skab Group of Companies,Software House International (SHI) Inc., Solidere,Sovico Corporation, Starbucks Coffee Company,State Bank of India, Sual-Holding, Sumitomo

Chemical Company Ltd, Swisscom AG, Symbian Ltd,Symbol Technologies Inc., Teachers’ Insurance andAnnuity Association College Retirement Equities Fund(TIAA-CREF), Telecom Egypt, Tenet HealthcareCorporation, Uni-President Enterprises Co., UnitedMizrahi Bank Ltd, VeriSign Inc., Veritas Software,Vimpel-Communications, Vodacom Group Pty Ltd,Washington Group International Inc., West JapanRailway Company.

PartnersOur partners are drawn from member companieswho strongly support, contribute to and benefit fromthe World Economic Forum’s mission. They areactively involved in the organization’s activities andcontribute their expertise and resources.

In 2003/2004, over 80 companies formally joinedas partners of the Forum across a broad array ofinitiatives, activities and events. These includedthree new strategic partners who displayed a deepcommitment to our mission by engaging theircompanies in multiple Forum projects.

As of 30 June 2004, our strategic partners were: ABB, Accel Partners, Accenture, Apax Partners, A.T. Kearney, Audi, Bain & Company, Barco, TheBoeing Company, Bombardier, Booz Allen Hamilton,BP, Cisco Systems, The Coca-Cola Company, DeloitteTouche Tohmatsu, DHL, Ernst & Young, HP, IBMCorporation, KPMG, Kudelski Group, McKinsey & Co.,Merck & Co. Inc., Merrill Lynch, Microsoft Corporation,Nestlé, Nike, PepsiCo, Pfizer, PricewaterhouseCoopers,Siemens, Swiss Re, UBS, Volkswagen, ZurichFinancial Services.

Around 35% of places are made available tocompanies from the developing world, and others toentrepreneurs whose innovative thinking and drive arechanging their industries.

To find out more, visit www.weforum.org/members

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

Our members and partners

“By including our commitment in the World Economic

Forum’s [Greenhouse Gas] Register, we want to show

that business is taking real action to cut CO2 emissions.”

Chris Boyd, Chairman of Lafarge, Italy

Our communities and constituencies

Communities

The World Economic Forum recognizes theimportance of specific expertise as key to its success.To nurture these capabilities the Forum has createdcommunities of member and partner companies andencourages interaction between them, whenever it isrelevant and worthwhile.

The International Business CouncilIn 2003/2004, the International Business Council’s(IBC’s) trade task force continued to emphasize theimportance of trade liberalization. Following thecollapse of the Doha trade round, the IBCreiterated its support for the World TradeOrganization and its belief in the goal andcompletion of the Doha round for global prosperityand security. At the start of the 2004/2005 financialyear, the IBC was encouraged to see an agreementhas been reached to kick-start the talks again.

Two IBC meetings were held in summer 2003, inGeneva, and in winter 2004 at the Annual Meeting inDavos. Several members also participated in theForum’s summit in Jordan, which provided anopportunity to reaffirm their commitment to peace inthe region.

Industry GovernorsIndustry Governors are made up of CEOs from majorcompanies within specific industry groups. During theyear they continued to address issues of primaryimportance to their sectors and provide intellectualstewardship to the Forum’s efforts, such as our

industry-specific initiatives and task forces andindustry-targeted sessions at our meetings and events.Governors for the communications and technologyindustry are working with governments to bringaffordable technology to the developing world. Forexample, in 2003/2004, they continued to beinvolved in the Jordan Education Initiative, whichhas mobilized more than US$14 million to transformeducation in the kingdom through the use ofcomputer technology. Through the IT Access forEveryone programme they have also pledged US$1 million to fund research into the feasibility of anaffordable PC-type device for the developing world.

In other sectors, initiatives in the engineering andconstruction arena led to 19 companies adoptingprinciples for countering bribery, while in logisticsand transportation, CEOs took steps to promotecorporate citizenship to their peers.

The Governors meet at the Annual Meeting and assignrepresentatives for Forum initiatives. They also attendindustry-specific events. For example, 20 Governors inthe communications and technology sector attended a roundtable on digital rights and intellectual property.

See www.weforum.org/WEFcommunities

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Harnessingexpertise andcapabilities

“It’s hard to expect long-term stewardship from short-

term stewards. In the United States from 1998 to 2001

there was a 30% turnover rate among CEOs.”

Marilyn C. Nelson, Chair and CEO, Carlson Companies, USA

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Our communities and constituencies

Constituencies

Advisory GroupsOur Advisory Groups cover a range of interests,from religious leaders and non-governmentalorganizations to academic institutions and tradeunions. The purpose of these Advisory Groups isto assist other key stakeholders in the globaleconomy to engage in, and help shape, WorldEconomic Forum activities.

The Investors GroupThe Investors Group was created in 2003/2004 tointegrate providers of capital into the WorldEconomic Forum’s activities. This new group seeksto broaden debate and complement theperspective of the Forum’s membership byincluding such stakeholders as leading venturefinanciers, private equity players and selectedindividual investors.

These investor representatives have an importantrole to play in such issues as corporategovernance, the turnaround of failing companiesand macroeconomic capital flow. Over the pastyear, more than 25 investors became formallyinvolved in Forum activities, working with othercommunities on such issues as social return oninvestment and increasing employment.

Forum FellowsForum Fellows are our greatest source of intellectualcapital. Out of a network of several hundred people atthe cutting edge of their disciplines, 180 attended theAnnual Meeting. The Fellows participate in everyactivity of the Forum from initiatives to privatemeetings, contributing ideas and in-depth knowledge.

Global Leaders for TomorrowThe World Economic Forum is committed toworking with young leaders to challenge the statusquo and look at the world’s problems with fresheyes. Representing the new generation of leadersfrom business, politics, the arts and civil society,the Global Leaders for Tomorrow held a summit inGeneva in September 2003 aimed at tackling theworld’s problems in an energetic way.

During the year, the Forum announced it wasbuilding on the success of these young individualsto create a more ambitious group: the Forum ofYoung Global Leaders. It brings together 1,111leaders, aged 40 or below. They will engage in the2020 Initiative, an effort to address the complexchallenges of today to shape a better future.

Women LeadersThe Women Leaders Programme is committed tosupporting the progress of female leaders and theadvancement of issues facing women. During theyear, the Women Leaders Programme successfullyincreased the participation of women in all Forumevents. It also hosted sessions on related issues inIndia, Switzerland and Jordan.

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

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

“I think the unhappy truth is that the net result of the war

on terror so far is to make more war and more terror.”

Gareth Evans, International Crisis Group, Belgium

Rory Stear is founder and CEO of the FreeplayEnergy Group (FEG), which develops productsbased on self-sufficient energy technologies. TheSouth African is among 16 people nominated in2003/2004 as members of the Schwab Foundationfor Social Entrepreneurship network.

FEG was founded in 1994 to give energy accessto all. In 1996, its first product was the wind-upradio, which has been a significant means ofspreading education and information (fromHIV/AIDS awareness to home-study English andmathematics) among those least able to affordcommunication technology. Since then FEG hasdeveloped other technologies that have helpedthem to improve the radio design and broadentheir product range to include medical instruments,

telephone chargers andflashlights. All aredesigned to meet thedemand for low-cost,durable, self-poweredproducts for use in thedeveloping world.Sustainable radioprogramming offers alifeline of information tovulnerable populations with low literacy levels andlimited access to electricity, television ortelephones. FEG launched the more powerful anddurable Lifeline Radio in 2003. This has alreadyplayed a major role in disaster relief anddisarmament projects in Burundi, Mozambique,Tanzania, Niger and Rwanda.

Social Entrepreneurship

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Technology PioneersTechnology Pioneers are drawn from the mostinnovative companies in the world. In 2004, in linewith the World Economic Forum’s commitment toencouraging dialogue between technology innovatorsand members, the constituency was fully integratedinto the Annual Meeting. The Forum ensures thequality of Technology Pioneers through a rigorousevaluation. Out of 114 candidates, only 30Technology Pioneers were selected for 2004.

The Annual Meeting programme contained twosessions focusing on this constituency’s workincluding: Technology Pioneers: DemystifyingInnovation and Technology Pioneers: A New Lease on Health. They also took part in a private programmethat included special guests from such organisationsas Google, Microsoft and Stanford University.

Dialogue with NGOsDuring 2003/2004, the World Economic Forumcontinued to build strong relationships with non-governmental organizations (NGOs).

We once again encouraged NGO involvement in our task forces and initiatives, with 63 groups beingat the Annual Meeting. The Forum worked withTransparency International to develop principles tocounter bribery in the engineering and constructionindustry. We co-organized the Open Forum at the

Annual Meeting with Bread for All and the Federation of Swiss Protestant Churches, and sessions wereorganized with the Terre des Hommes Foundation,the Max Havelaar Foundation and IUCN – The WorldConservation Union. Oxfam attended our summitsin Europe and Africa.

The Forum continued its dialogue with anti-globalization campaigners, exchanging views withkey leaders within the alter-globalization movement.

Social EntrepreneursThe World Economic Forum works with the SchwabFoundation for Social Entrepreneurship to supportpeople who, with little market reward or assistance,use their resources to address problems ofeconomic and social inequality.

The Foundation consists of 74 individuals andorganizations, including 16 selected during theyear. Partnerships focusing on the work of socialentrepreneurs have been established with leadingcorporations, including Hewlett Packard, VISA,DHL, Diageo, Linklaters and Microsoft. In2003/2004, the Foundation established a courseon social entrepreneurship at the University ofGeneva. It also created the Leapfrog Fund with the Lemelson Foundation to support thereplication of innovations by social entrepreneurs.For more information, visit www.schwabfound.org

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The Freeplay Energy Group’s wind-up radio ishelping to spread education and information in the developing world

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

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Our people

We rely on the skills, knowledge and dedication of ourpeople to fulfill our mission. In 2003/2004, we acted tofurther increase their expertise and to support themduring our ongoing reorganization, which aims toadapt our structure to meet the demands of theForum’s developing role.

The total number of staff rose from 159 in the previousyear to 180, representing a broad spectrum of 37nationalities. Among those recruited were severalpeople with significant industry experience and specificknow-how who will reinforce our capabilities andenhance our ability to bring value to our partners andmembers. The Forum integrated six staff secondedfrom member or partner organizations with regionaland/or industry-specific knowledge. Such secondeesparticipate fully as Forum staff during their stay. Thiscontinued evolution of the Forum, which included thecreation of the Global Institute for Partnership andGovernance and the Centre for Strategic Insight, ledto the development of new teams.

To support the creation of this enlarged Forumcommunity we introduced a formal process, known as ‘Waves’, a training programme focusing on theindividual, the team and the organization, which aimsto help them perform better. We have now embarkedon Wave two, which focuses on team contribution andleadership skills.

For more information, see www.weforum.org/staff

Talent fromaround theworld

Nationality Numbers*

American 19Argentinian 1Australian 4Belgian 2Bolivian 1Brazilian 2British 12Canadian 5Chinese 1Costa Rican 1Danish 2Dutch 6Ethiopian 1Finnish 2French 25German 13Indian 3Iranian 2Irish 1Italian 13Japanese 1Lebanese 1Malagasy 1Mexican 1Moroccan 2New Zealander 1Norwegian 1

Pakistani 1Singaporean 1South African 2Spanish 4Sri Lankan 1Swedish 4Swiss 40Thai 1Turkish 1Ukrainian 1Nationalities 37

Age group Numbers*

20 to 24 325 to 29 3730 to 34 4935 to 39 3440 to 44 1945 to 49 1350 to 54 355 to 59 1260 to 62 563 to 65 365 or older 2Total 180

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Nationality Numbers*

*Numbers as of 30 September 2004.

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Our organization

The Foundation BoardThe Foundation Board is responsible for inspiringbusiness and public confidence through anexemplary standard of governance. The Board’smembers are individuals with unique leadershipexperience from business, politics, academia and civil society.

The Board’s role includes: managing the statutes of the World Economic Forum; appointing newmembers; determining and monitoring theexecution of the Forum’s strategies, and definingthe roles of the Managing Board and Committees.

The membership criteria include integrity, globalvision, leadership experience and participation inworld affairs. In January 2004, the Forumwelcomed Carly Fiorina, Chairman and CEO of HP,and Orit Gadiesh, Chairman of Bain & Company,USA, to the Foundation Board.

The Foundation Board members for the year2004/2005 are:• Klaus Schwab, Executive Chairman• William I. M. Turner, Vice-Chairman• Josef Ackermann, Vice-Chairman• Kurt Alig, Secretary• Peter Brabeck-Letmathe

• Lord Carey of Clifton• Victor L. L. Chu• Flavio Cotti• Michael S. Dell• Carly Fiorina• Niall FitzGerald• Orit Gadiesh• Rajat Gupta• Nobuyuki Idei• Caio Koch-Weser• Henry A. McKinnell• Heinrich von Pierer• H.M. Queen Rania of the Hashemite Kingdom

of Jordan• Peter D. Sutherland• Ernesto Zedillo Ponce de Leon

The Committees of the Foundation BoardThe Foundation Board appoints four committeesfrom among its members:• The Executive Committee prepares the decisions

of the Foundation Board and oversees theManaging Board

• The Audit Committee ensures compliance with all financial, accounting and control processes

• The Evaluation and Remuneration Committeerecommends candidates for positions on theManaging Board and monitors their performance

• The Mission Compliance Committee reviewsForum policies, strategies and activities in light of its mission

For more information about the Foundation Board,visit www.weforum.org/foundationboard

Exemplarygovernance

“To achieve human dignity for all, internationally agreed

targets must be considered simultaneously and through

coordinated strategies.”

Mary Robinson, Executive Director of the Ethical Globalisation Initiative, USA

StructureThe World Economic Forum’s structure continuedto evolve with the creation of three new coredepartments: the Global Institute for Partnershipand Governance, the Centre for Strategic Insight,and Events.

The new departments replaced our previous practicestructure and enhanced our ability to build andenergize global communities, convene world leadersin high-level meetings and interaction, shape global,regional and industry agendas, and facilitate jointaction through global initiatives and partnerships.

Global Institute for Partnership and GovernanceMany of today’s global and regional problems are too large and complex to be solved by traditionalintergovernmental processes alone. Expertise from a variety of disciplines, stakeholders and regions is often required. The Global Institute for Partnershipand Governance was created by the World Economic Forum to broaden the application ofprivate-public partnerships to some of the world’smost pressing problems.

The Institute consolidates all of our task forces and initiatives and is a comprehensive resource forcompanies seeking to engage with the public sectorto tackle global issues. Building on the Forum’sindependence and informality, it provides anenvironment in which leaders can engage incollaborative problem-solving free from theconstraints of intergovernmental protocol andcompetitive corporate pressures.

The Institute’s initiatives combine expertise fromdifferent regions and institutions in teams that spangeography and profession. Its projects integrate thetraditional thought leadership of research instituteswith the practical perspectives and priorities ofexecutives from business, government and civilsociety institutions.

Centre for Strategic InsightThe World Economic Forum’s Centre for StrategicInsight works with the Forum’s network ofcommunities such as business leaders, NGOs andpolicymakers to create relevant strategic insight.

There is particular emphasis on identifyingemerging risks and developments that will shapethe business and political agendas. The Centre

aims to develop an integrated overview of global,industry and regional agendas. It contributes to all Forum activities, ensuring members’ andcommunities’ focus on critical issues.

The Centre has four core teams, focusing on business insight, global insight, economics andcompetitiveness, and global and regional agendas. It builds on the strong foundations laid by ourcompetitiveness and global agenda teams to offerunique insights into developments across the world and to guide policy in the business and political arenas.

EventsEach year the World Economic Forum bringstogether thousands of decision-makers in meetingsand regional summits to address the most crucialissues facing mankind. These events enablemembers and constituents to discuss key issues and trends across the globe by sharing first-handinformation and insights.

To maintain quality and effectiveness, we havecreated a new team with unique knowledge andexperience in developing such high-calibre events.The team is responsible for the smooth running ofsuch occasions as the Annual Meeting and theregional summits, and for ensuring that theirprogrammes take advantage of knowledge gainedby the Global Institute for Partnership andGovernance and the Centre for Strategic Insight.

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Annual Summits

CompetitivenessProgramme

LeadershipGovernanceProgrammes

CitizenshipInitiatives

StrategicIntelligence

Publications,Reports &

Newsletters

ContinuousInteraction

GlobalCommunity

RegionalCommunities

IndustryCommunities

StakeholderCommunities

Communities

Forum activities

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The Forum leadership

The Executive ChairmanKlaus SchwabFounder and Executive Chairman of the World Economic Forum

For more information, visit www.weforum.org/schwab

The Managing BoardThe Managing Board acts as the executive body of the Foundation. It ensures that activities fulfil themission of the World Economic Forum and acts as itsrepresentative to outside parties. At September 30, theManaging Board members were as follows:

José María FigueresChief Executive Officer

Ged DavisManaging Director, Centre for StrategicInsight, and Acting Managing Director,Community Management

Michel OgrizekManaging Director, Head of Communications

Rick SamansManaging Director,Global Institute for Partnership and Governance

André SchneiderManaging Director and Chief OperationsOfficer, Events and Resource Management

Frédéric SicreManaging Director, Regional Strategy

For more information about members of the ManagingBoard, visit www.weforum.org/managingboard

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

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The Forum community

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

Chairman’s OfficeKlaus Schwab, Executive ChairmanMonika Boerlin, Regula Waltenspuel, Maryse Zwick

CEO’s OfficeJosé María Figueres, Chief Executive OfficerMercedes Aubert, Sohini Chowdhury, Patricia Martin

Centre for Strategic InsightGed Davis, Managing DirectorSven Behrendt, Judith Binzegger, Jennifer Blanke,Carla Boeckman, Nathalie Cerutti, Wai Chik, JohannahChristensen, Sandra Costa-Marini, Ilaria Frau, KerryJaggi, Stéphanie Janet, Jeremy Jurgens, EmmaLoades, Augusto Lopez-Claros, Thierry Malleret, IreneMia, Bud Ris, Sarah Saffar, Vidhi Tambiah, AlexanderVan de Putte, Saadia Zahidi

Global Institute For Partnershipand GoveranceRick Samans, Managing DirectorDavid Aikman, Francesca Boldrini, Heather Clark,Oliver Haugen, Stefanie Held, Andreï Iatsenia, CarinaLarsfälten, Johanna Liukkonen, Monica Lodygensky,Satya Rajan, Kate Taylor, Valerie Weinzierl

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

Community DevelopmentPeter Torreele, Senior DirectorHaiko Alfeld, Thomas Berglund, Helen Besson,Corine Blesi, Els Boekhoudt, Gunveena Chadha,Fabienne Chanavat, Daniel Davies, Natalia de laHuerga, Meaza Essenberg, Anne Catherine GayDes Combes, Serge Guex, Parvis Hanson,Catherine Henry, Felix Howald, Lee Howell,Giuseppe Iorio, Julian Jaeger, Carmen Keller-Barretto, Béatrice Laenzlinger, Macha Levinson,Pamela Mar, Colette Mathur, Amal Mbarki, GrantMcKibbin, Sylvie Naville, Yutaka Okura, LucienRieben, Kifah Salameh, Uschi Trouilhet,

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

Community ManagementThomas Glanzmann, Senior AdviserStefano Ammirati, Séverine Bachasse, Mireille Bertolini,Ursina Boulgaris, Giancarlo Bruno, Théa Chiesa,Mahasti Dadressan, Magguy Deleaval, SamanthaDimeck, Réka Fogarasi-Musso, Christoph Frei, Laure-Anne Guignard, Nadia Guillot Socquet, SusanneHelmsley, Laura Italici, Matthew McSorley, Viraj Mehta,Nathan Monash, Tanya Mounier, Simon Mulcahy,Andrew Richards, Natascha Ruckstuhl, SusanSimmons, Elena Smirnova, Kevin Steinberg, MadyTissot, Silvia Von Gunten, Alex Wong

Event and Resources ManagementAndré Schneider, Managing Director and Chief Operating OfficerChantal Adamson, Ntsoa Arintsoa, Helena Baars, Guy-Serge Baer, Grégory Bernarda, EmmanuelleBlaser Morel, Nadine Bonard, Damian Buchs, DeniseBurnet, Nancy Chazal, Raymonde Christmann, Steve Crettenand, Irène Croisier-Rapin, StéphanieDanhier, Jean-Loup Denereaz, Laura de Wolf, Maggie Fliege, Floriane Freymond, Yannick Fuentes, Malte Godbersen, Karine Guitton, Elly Hammar, Nur Ibaoglu Zahnd, George Jacovides, JulianneJammers, Carine Kulloian, Georg Kumpera, RichardLane, Madeleine Manusia, Martine Michaud, AnnabellMolnar, Sandor Nagy, Anouk Pache, Annemarie Peter,Petra Ruiz, Wouter Savrij Droste, Pascale Schibli,Angela Scioscia, Christel Sutherland, Ursula Wehrli-Köpper, Sarah-Jane Zeller

Global Leaders & Special GroupsFrédéric Sicre, Managing DirectorPaula Verholen

Young Global LeadersFiona Paua, Assistant to the Executive ChairmanDaphne de Laleu, Martina Gmür, RosannaMastrogiacomo, Catherine Vindret

Schwab FoundationPamela Hartigan, Managing DirectorSolenn de Kersauson, Maria Hermoso, ChristianMeyer, Mirjam Schoening

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Sharing knowledge

Information technology andknowledge managementThe World Economic Forum once again harnessedtechnology to strengthen internal processes, createworld-class summits and enhance communicationbetween our communities and constituencies.

At the Annual Meeting we delivered innovative servicesbased on state-of-the-art technology. For example, weintroduced a Cyber Network Centre, providing thelatest laptop technology for participants to access theInternet and our KnowledgeConcierge service. TheKnowledgeConcierge offered a ‘state-of-the-debate’essay on nearly every session topic.

Participants at the Annual Meeting also benefited from:• Security passes containing a microprocessor and

antenna that communicated with the main computersystem and allowed access to personalized systemsand sessions

• A total of 90 kiosks providing relevant AnnualMeeting information and enabling participants to stayin touch with each other and outside contacts

• An improved Davos Companion, a hand-held pocketPC, that was faster, thinner and lighter than theprevious version. It allowed access to suchinformation as the programme, the biographies ofparticipants, profiles of organizations, sign-up, e-mailvia wireless networks and news-feeds

After the Annual Meeting, 425 Davos Companionswere donated to the Jordan Education Initiative.Another 175 were presented to Bridges.org, which

promotes the use of information and communicationstechnology in the developing world to reduce poverty.During the World Economic Forum in Jordan summit,held at the lowest point on Earth, we provided awireless LAN installation and portable Tablet PCs toallow participants to use the Internet. The sametechnology was used to enable an online conversationbetween students from internationally renowneduniversities and King Abdullah II of Jordan.

CommunicationsSharing insights and information, in support ofpositive global action, is a core element of Forumactivity. In 2003/2004, our communications teamworked to make our knowledge base even moreaccessible to our members and other stakeholders.

The Forum’s commitment to transparency isdemonstrated by our practice of encouraging truemedia participation in our activities. Around 250media leaders and senior journalists engaged in theAnnual Meeting, with many high-level editorsinvolved in our regional summits. These mediaparticipants included 35 of the world’s leadingeditorial cartoonists, who played a full part in summitdiscussions. This year, unprecedented mediacoverage further helped us to communicate ourmission. For example, renowned journalist andanchorman Nik Gowing led live BBC World debatesfrom the European Economic Summit in Warsaw andthe Annual Meeting in Davos which reached half abillion viewers. Media analysts, Media Tenor, showedthat, overall, positive reporting of the Annual Meeting

An open andconnectedorganization

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had doubled. We also tripled favourable reportingof the European Economic Summit and receivedthe best ever international coverage of The GlobalCompetitiveness Report.

Increased Web activity gave us access to abroader, far flung audience. We increased traffic on our website by 60%, including 1.6 million pageviews in January alone. We took part in onlinecollaborations with leading media organizationscovering four continents: including the BBC, theWall Street Journal, the Financial Times, LeMonde, El Pais, the influential Latin American sitePortal Exame, leading Middle East online providerZawya, OhmyNews, which reaches 25 millionKorean citizens, and India’s Rediff site.

To allow participants and the wider public to debate freely on Forum activity, we were the firstinternational organization to create a Web log.Having provided a log at the European EconomicSummit and the Asia Strategic Insight Roundtablein Korea, we now plan to extend its use and offer itin tandem with live Webcasts of meeting sessionsand opinion leader interviews.

During the year, we opened direct communicationchannels with anti-globalization demonstrators atour summits in Poland and Korea. This approachhelped clarify misunderstandings about theinternational role of the Forum and facilitated thecourse of non-violent demonstrations.

We strengthened our in-house publishing capacity,developing a dynamic publications strategy under a new editorial director. Our brochure, The WorldEconomic Forum: Entrepreneurship in the GlobalPublic Interest, was named the best institutionalbrochure in the UK’s prestigious Communicators inBusiness Awards 2004, ahead of competition from18 other major organizations.

We continued our two-year relationship withopinion research company Gallup International. Onbehalf of the Forum, Gallup surveyed 50,000people from more than 50 countries, representingthe opinions of more than 1.2 billion citizens.Topics included the key themes of the AnnualMeeting 2004: security and prosperity.

PartnershipsThe World Economic Forum seeks partnershipswith like-minded institutions. It has NGOconsultative status with the Economic and Social Council of the United Nations and worksclosely with civil society organizations, think tanks and foundations, such as: the Prince ofWales International Business Leaders Forum, the World Business Council for SustainableDevelopment, AccountAbility, SustainAbility, the UN Foundation, the International FinanceCorporation, the Rockefeller Foundation, the Swiss Agency for Development and Co-operation, the Centre for InternationalGovernance Innovation and the Bill and MelindaGates Foundation.

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

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

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Our financialresults

In 2003/2004, we achieved strong financial results, due in part to the impact of the new GlobalInstitute for Partnership and Governance, whichexceeded expectations. We also received asignificant boost as 80 new companies becamepartners of the Forum.

The continued evolution of the World EconomicForum during the year left us in a strong positionto continue this financial trend. Forecasts for theGlobal Institute for Partnership and Governanceremain positive and the initial impact of the newlycreated Centre for Strategic Insight should also be felt in 2004/2005.

Financial policyThe World Economic Forum’s financial policystates that membership fees should coveroperational costs, that events are funded throughcost contributions and that projects are supportedby income from partnership contracts. The Forummay accept grants, donations, legacies and othercontributions or subsidies that are consistent withits purpose of ‘integrating leaders from business,politics and society at large into a community forglobal action committed to improving the state ofthe world and the well-being and prosperity ofhuman society’.

The World Economic Forum makes no payments topolitical personalities, parties or other organizationsand avoids involvement in national politics.

AuditorsThe World Economic Forum’s financial results are audited by PricewaterhouseCoopers, who examine the balance sheet and accounts. The annual report, as well as all institutionaldocuments, are submitted to the Swiss FederalGovernment, which in law acts as the supervisorybody for the Foundation.

1999/ 2000

2000/ 2001

2001/ 2002

2002/ 2003

2003/ 2004

74,0

58,9

11

61,1

00,6

42

63,8

06,0

52

72,1

95,4

53

66,4

54,7

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Total Income 1999-2004figures in Swiss francs

Financial year 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004

Total income* 61,100,642 63,806,052 72,195,453 66,454,727 74,058,911

out of which

members’ fees 22,106,920 23,588,125 24,965,367 25,530,325 25,137,257

participation fees 26,972,981 21,465,398 20,543,108

partnership 18,946,940 17,390,452 24,552,385

Total expenditure 59,416,135 63,556,294 69,077,008 66,454,522 72,307,790

out of which

personnel costs 27,097,659 26,584,768 29,620,236

office costs 10,642,445 8,360,352 9,044,738

activity-related costs 31,336,904 31,509,401 33,642,815

Surplus to be

added to the

Foundation capital 1,684,507 249,759 3,118,445 205 1,751,121

Foundation capital 8,746,549 8,996,308 12,114,753 12,114,958 13,866,079

Total staff

Full time 81 125 139 130 134

out of which are seconded

by Forum members 4 4 5

Part time 22 22 28 28 28

* all key figures in Swiss francs

Key figures

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The World Economic Forum is the foremost globalcommunity of business, political, intellectual and other leaders of society committed to improving thestate of the world.

Our mission is best realized through activities which promote economic and social development.We believe that economic progress without socialdevelopment is not sustainable, while socialdevelopment without economic progress is notfeasible. Our motto is thus ‘entrepreneurship in the global public interest’.

In addition to convening world leaders, the Forum iscommitted to involving them in living communities ofcommon interest and purpose. The Forum ensuressubstance in the form of strategic insights and, whererelevant, platforms for joint action. To carry out itsmission, the World Economic Forum has developedan integrated value chain by involving world leaders in communities, inspiring them with strategic insightsand enabling them through initiatives.

Our vision for the World Economic Forum is threefold.To be:

• The foremost organization which builds andenergizes leading global communities

• The creative force shaping global, regional andindustry strategies for its communities

• The catalyst of choice for its communities whenundertaking global initiatives to improve the stateof the world

The World Economic Forum enjoys unique globalpositioning by recognizing and responding to twonew developments:

• The world’s key challenges cannot be met bygovernments, business or civil society alone

• In a world characterized by complexity, fragilityand ever-greater synchronicity, strategic insightscannot be passively acquired. They are bestdeveloped through continuous interaction withpeers and with the most knowledgeable peoplein the field (learning communities)

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Our mission and values

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

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Contact details:

World Economic Forum91-93 route de la CapiteCH-1223 Cologny/GenevaSwitzerland

Telephone +41 (0)22 869 1212Fax +41 (0)22 786 2744e-mail: contact@weforum.orgwww.weforum.org

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