World Economic Forum - Annual Report 2004/2005

Annual Report 2004/2005

Shaping the global, regionaland industry agendas

ContentsThe Executive Chairman’s Statement 2

Annual Meeting 2005 6

The regional agenda 10

Industry Partnerships 16

Strategic Insight 17

Partnership and Governance 19

Our members and partners 21

Our communities and constituencies 23

Our organization 26

The Forum community 29

Sharing knowledge 32

Our financial results 34

Our mission and values 36

The World Economic Forum DisasterResource Network (DRN) workedtirelessly to coordinate aid following the December 2004 South East Asia tsunami.

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The World Economic Forum is

an independent international

organization committed to

improving the state of the world

by engaging leaders in

partnerships to shape global,

regional and industry agendas.

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the explicit assertion that it would beachieved ‘by engaging leaders inpartnerships to shape global, regionaland industry agendas’.

The launch of our Industry PartnershipsProgramme showed this collaborativedrive in action. It benefits industry bybringing together leading companies inkey sectors within a structuredframework and providing peer learningand input from the world’s leadingexperts. Having attracted 51 companiesin its first nine months, the Programme’searly success was one of the year’smost outstanding highlights. We areconfident it will help establish the Forumas an even more essential and sustainedpartner to industry.

Our summits have always sought toanticipate the needs of memberorganizations and to reflect key issuesand, in doing so, to drive the globalagenda. In 2004/2005, we took thiscommitment even further. In a newmove, the agendas of the AnnualMeeting and the Africa EconomicSummit were structured to give targetedsupport to the UK as it chaired the G-8group of industrialized nations and tookover the presidency of the EU in thesecond half of 2005. The programmeoutline was drawn up in closecollaboration with senior UK ministers,with Prime Minister Tony Blair andChancellor Gordon Brown participatingin the Annual Meeting.

A ‘town hall’ at the Annual Meeting alsodemonstrated our receptiveness tomembers’ needs, by involving them inprioritizing the six core challenges whichthey wished to focus on and developaction agendas around, both while theywere in Davos and beyond. Theparticipants opted for fighting povertyand addressing equitable globalization,climate change, education, the MiddleEast initiatives and global governance.

Fresh thinking comes most easily toyounger people, who are lesstrammelled by convention. In2004/2005, I created the Forum ofYoung Global Leaders, a sisterfoundation to the World EconomicForum. It will provide a framework forthe actions and interactions of 1,111emerging leaders aged between 25 and40. Building on our previous GlobalLeaders for Tomorrow Initiative, butincorporating a broader selectionprocedure, greater critical mass, a widerselection background, and clearerresponsibilities, this programme willengage a fresh generation ofoutstanding young people in improvingthe state of the world and will enable usto learn from today’s talent and buildbonds with tomorrow’s world leaders.

We also launched an ambitiousdevelopment initiative for youngprofessionals joining the Forum. Thenew three-year Global LeadershipProgramme attracted 1,700 largelyoutstanding applications for 30 places.Targeted at the very best, it offers

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The Executive Chairman’s Statement

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The challenges the world

faces today are increasingly

complex. They cross

borders, industry sectors

and communities. Traditional

solutions, however well-

meaning or well-managed,

do not work.

To meet today’s global challenges needsfresh thinking, new approaches andnovel partnerships. In 2004/2005, suchqualities drove all World EconomicForum activity, both externally and inside our organization.

During the year, we focused in particular on:• Continued moves to build

strong partnerships• Increased efforts to help drive the

global industry agenda• Greater collaboration with members in

planning and executing summit activity• Renewed focus on young and fresh

unconventional thinking• Launch of a Global Leadership

initiative, to develop outstandingindividuals

In 2004/2005, our conviction that multistakeholder partnerships areessential for global prosperity inspiredthe redrafting of our mission. This linked our avowed commitment to‘improving the state of the world’ with

Exercise self-responsibility,

global responsibility andresponsibility to the nextgeneration. Then we willimprove the state ofthe world.Professor Klaus Schwab, Founder and ExecutiveChairman of the World Economic Forum

The Executive Chairman with fellow participants at the Asia Roundtable in Singapore. From left: Kim Hyun-Chong,Minister of Trade of the Republic of Korea; Klaus Schwab; Peter Mandelson, EU Trade Commissioner; and Lim Hng-Kiang, Minister for Trade and Industry of Singapore.

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candidates the opportunity to develop theircareers and leadership capability byworking within the Forum while alsoworking towards a Master’s in GlobalLeadership, which has been developed inpartnership with some of the world’s finestuniversities. The organization, and itsmission, will gain from the influx of their newideas, drive and vision.

The continuing demand for, and relevanceof, the Forum and its mission was reflectedin our strong financial performance. Weagain grew by around 13% as income fromour different activities and initiativesremained high. Of particular note was theincreasing number of members whoindicated their commitment to the Forumby becoming strategic partners. The sum ofSfr.1,253,336 that we were able to add toour reserves was also due to our excellentperformance in achieving cost efficiencies.

The legal status of the Forum as afoundation under the supervision of theSwiss Federal Government, similar to theInternational Red Cross, ensures that, inperpetuity, our accumulated reserves arededicated to pursuing our mission.

There were several Management Boardchanges during the year. José MariaFigueres, CEO, resigned in October; inApril, Michel Ogrizek, MD, Head ofCommunications, left to become Vice-Chairman of a leading communicationscompany in New York; and, in June,Frédéric Sicre left to become ExecutiveDirector of a well-established Dubai assetmanagement firm. Both Michel andFrédéric remain my special advisers.There were two new additions to theManaging Board: Thomas Glanzmann,Acting Managing Director and SeniorAdviser to myself, joined in August 2004;and Peter Torreele, Managing Director,Community Development and Marketing,was appointed to the Managing Board in November.

The Foundation is a very complexorganization, serving numerousconstituents while undertaking manyactivities. This means that complementaryskills and experience at the top areessential. One of my key tasks in the yearahead will be the further development of ahighly committed and talented ManagingBoard.

In 2005/2006 we will reshape the Forum tofurther meet the needs of members.Particularly significant will be the launch oftwo international offices, in Beijing and NewYork. The Beijing office will focus on a newcommunity for the Forum: ‘Global GrowthCompanies’. These are companies that donot meet the size criteria of our coremembership but which are likely to beamong the global players of tomorrow; forexample, high tech or niche companies,family businesses or emergingmultinationals in the new markets. Theoffice in the global corporate hub of NewYork, meanwhile, will enable us to buildstronger relationships with industry and willmean we can offer more local support tothe one-third of our members who are fromNorth America.

Overall, its was a highly rewarding andexciting year. The richest source ofsatisfaction was the high degree ofengagement of our members and partners,along with the commitment and hard workof all those collaborating on Forumactivities. Our people are the Forum’sdriving force, and I would like to extend tothem my warmest thanks.

With the implementation of major strategicstepping stones in hand, the outlook for2005/2006 is very promising. Having beena major catalyst for advancing social issuesduring the last year, our focus over the nextyear will be more industry-, business- andleadership-related. We will also bear inmind that the general mood so far during2005/2006 has been optimistic. Inevitably,however, recent events such as the terroristattacks in London will make for a morechallenging international environment overthe coming months. This, in turn, will makethe Forum’s work even more essential.

We will beremembered for

three things right now. TheInternet, the war againstterror, and what we did ordidn’t do about this gloriouscontinent of Africa and itstravails. I think we can be thegeneration that endsextreme poverty.Bono,Musician, DATA (Debt, AIDS and Trade in Africa), UK

The Executive Chairman’s Statement

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Shoulder-to-shoulder at the Annual Meeting 2005: former US President Bill Clinton, Microsoft Chairman Bill Gates, South African President Thabo Mbeki, UK Prime Minister Tony Blair, musician Bono and Nigerian President Olusegun Obasanjo.

Professor Klaus SchwabFounder and Executive Chairman

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What did theAnnual Meeting 2005 deliver?

At the Annual Meeting 2005,

2,250 leaders from all walks of life, and from

many different nations, came together to

address the world’s major challenges. They

achieved some significant goals.

The Annual Meeting 2005 in Davos drewtogether 2,250 leaders from business,politics, academia, non-governmentalorganizations, the media, religion and civilsociety. It incorporated lively workshops,panel discussions and plenary sessionsand engaged participants under the theme:‘Taking Responsibility for Tough Choices’.

In line with the Forum’s determination tobe a member-driven organization, all theparticipants kicked off the AnnualMeeting by setting the agendacollectively during the first-ever ‘townhall’. From a list of 12 topical issues, theyvoted to prioritize six: poverty, equitableglobalization, climate change, education,the Middle East and global governance.Following the town hall, participantsdedicated the rest of the Annual Meetingto creating an action agenda aroundeach priority.

The event was a catalyst towards Africa’ssubsequent rise to the top of the globalagenda. It began with two high-profilesessions that highlighted the state of thecontinent. Public figures and socially-engaged celebrities attending thesesessions included UK Prime Minister TonyBlair and Chancellor of the ExchequerGordon Brown, who both made pivotalcontributions to key discussions on povertyalleviation and climate change. They werejoined by rock star Bono, former USPresident Bill Clinton, Microsoft ChairmanBill Gates, South African President ThaboMbeki and Tanzanian President BenjaminMkapa – among others.

The Annual Meeting involved a wide rangeof cultural leaders from the arts, includingNobel Prize-winning US academic ElieWiesel, US musician Lionel Richie, SouthAfrican author Nadine Gordimer and British

musician Peter Gabriel, along with well-known figures from the world of film,including Angelina Jolie, Richard Gere,Sharon Stone and Carole Bouquet. Theirpresence – as concerned global citizensrather than celebrities – helped draw theattention of a broader audience to issuessuch as AIDS, climate change, povertyalleviation and tsunami relief efforts.

The energy generated on day one of theAnnual Meeting continues to reverberateacross Africa and around the world. Duringthe summer – as the Live 8 series ofinternational concerts kept momentumstrong – this energy ensured that Africa,debt relief, trade and global poverty heldcentre stage at the G-8 meeting inGleneagles and beyond.

The spirit of generosity and determinationthat defined the debate on Africa also

expressed itself in the debate over therole of corporations in disaster relief. Withnews from South East Asia stilldominated by the tsunami disaster,participants stressed that privatebusiness has a vital role to play in helpingstricken communities.

Another outcome of the Annual Meetingwas a promise from the EuropeanCommission (EC) to reduce the numberof goals in its Lisbon Strategy. Signed in2000, the strategy aims to make Europe‘the most competitive and knowledge-driven economy by 2010’. EC PresidentJosé Manuel Barroso’s aim was toincrease accountability in an effort tofocus on priorities and ownership in thesearch for long-term growth.

There was also a strong move byparticipants to eradicate corruption and

bribery. Agreeing to a zero tolerancepolicy, 62 corporate leaders voiced theirsupport for the Principles of CounteringBribery, published by the Forum’sPartnering Against Corruption Initiative.

Davos also helped direct global attention tothe poor international response to the UN’sMillennium Declaration. The Forum’s GlobalGovernance Initiative monitors the efforts ofgovernments, the private sector, civilsociety and international organizationstowards achieving the goals of theDeclaration. Among other objectives, thisdocument aims to ensure that the spirit ofglobal citizenship – so evident during thetsunami crisis – becomes a fixed feature ofworld affairs. But the initiative’s secondreport, launched at the Annual Meeting2005, made headlines worldwide afterjudging efforts to date worthy of just threepoints out of 10.

Participants at work in Davos.

The theme of this year’s

Annual Meeting is ‘TakingResponsibility forTough Choices’ – tome that’s all aboutleadership.

N.R. Narayana Murthy, Chairman of theBoard and Chief Mentor of Infosys Technologies, India

The tsunamirelief effort

showed that we are allinterconnected; westick together whenit counts.

Samuel Schmid, President of the SwissConfederation and Federal Councillor of Defence

The singlegreatest

contribution thedeveloped world canmake to povertyalleviation is todissolve or at leastbegin to break down

trade barriers. Trade access is worth farmore to underdeveloped countriesthan development assistance.

John Howard, Prime Minister of Australia

Annual Meeting 2005

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It’s completelyagainst our

interests in Europe,and I would say, alsoagainst the Americaninterests and againstthe interests of theglobal community

not to have the European Union andthe United States work together.José Manuel Barroso,President of the European Commission, Brussels


Annual Meeting 2005

What tough choices doglobal leaders face?

Once again, the Annual Meeting showedthe World Economic Forum at the hub ofworld events. Emerging from one of themost turbulent periods in Ukraine’shistory, the country’s newly electedpresident, Victor Yushchenko, chose tomake his first appearance outside theregion in Davos, where he argued for hiscountry’s admission to NATO and the EU.He also appealed for support from theinternational business community as hisgovernment prepared to reform Ukraine’seconomy, which he described as a‘sleeping elephant’. The Forumresponded to his appeal, offering to hostthe Extraordinary Roundtable in Kievduring June.

A wide cross-section of leading politicalfigures from the US, among them 10Senators – the highest number ever –attended Davos. They included Senate

majority leader Bill Frist (Republican,Tennessee), who spoke in a plenarysession on global health, and SenatorJohn McCain (Republican, Arizona), whogenerated extensive media interest. Once again, the Brazilian governmenthad a strong presence at the AnnualMeeting. Accompanied by six of hisministers, President Luiz Inácio Lula daSilva highlighted his country’s economicachievements during a year ofexceptional growth.

As well as celebrating their people’ssuccesses, political leaders also embracedthe Annual Meeting as an opportunity toresolve conflicts and address emotiveissues. At a plenary session, leaders fromIsrael and the Palestinian Authority agreedthat there was renewed hope for aresolution to their conflict. The consensuscame at a time when the Israelis were

preparing to dismantle settlements for thefirst time since 1967 and MahmoudAbbas, newly-elected President of thePalestinian Authority, had agreed to breakthe ‘vicious cycle of conditionality’.Referring to Davos, Israeli Vice-PrimeMinister Shimon Peres commented: “Themagic has returned to the mountain.”

Republic of Korea Minister of UnificationChung Dong-Young used the platform atDavos to send a clear message to NorthKorea that it was still possible for thecountry to re-engage in multilateraldiscussions on the nuclear issues.

Participants also argued for a closerdialogue between Europe and America.They agreed that transatlantic partnershipis vital to future world stability and a majorfactor in eradicating conflict and poverty.At a separate session, politicians from

inside and outside the US debatedAmerican foreign policy. Against abackground of simmering tensions overIraq, both sides stated that repairing theirrelationship was essential to world security.Participants ended the Annual Meetingwith a pledge to take tough choicesagainst the ignorance, disease andpollution that threaten the world’s stabilityand survival. With the emphasis firmly onaction and results, the meeting called forconcrete measures to reduce greenhousegas emissions, a fund to acceleratefinancial aid to the poorest countries andthe removal of trade barriers.

Throughout the Annual Meeting,participants pulled no punches whenreminding world leaders that tough choicesmust go hand-in-hand with effectivesolutions. France’s President JacquesChirac proposed a voluntary tax to fight

poverty, warning of unrest if young peoplein the developing world are deprived of afuture. Echoing these sentiments, Egypt’sPrime Minister Ahmed Mahmoud Nazifcalled for ‘modernization withoutwesternization’, advocating trade andinvestment with a strong regional focus.

Concluding the summit on a similar note,Professor Klaus Schwab, Founder andExecutive Chairman of the World EconomicForum, called on participants to exercise‘self-responsibility alongside globalresponsibility’. The tsunami relief activity, hesaid, had shown it could be done.

Open Forum Davos 2005The Open Forum Davos, organized incooperation with Bread for All and theFederation of Swiss Protestant Churches,runs simultaneously with the AnnualMeeting. It is a clear demonstration of the

openness of our organization and ourwillingness to engage in constructivedialogue with the general public. This year’sevent attracted over 2,400 people – up20% on last year. There was also a notableincrease in the volume of enquiries in therun-up to the Annual Meeting and a widerrange of topics on the agenda. The eventdrew a wide range of local people from allwalks of life, including schoolchildren,teachers and 50 management trainees fromengineering services multinational ABB.

The overall theme was ‘When is theeconomy ethical?’. The agenda struck abalance between debates about long-standing concerns and those of a moretopical nature, such as the role of the USand post-tsunami aid. In all cases,discussion progressed beyond the actualsurface issues to an exploration ofunderlying causes.

I’m firmlyconvinced

that globalizationbears greateropportunities for all... [But] we have tohelp less-developednations to a much

greater degree than we have so far.

Gerhard Schröder, Federal Chancellor of Germany

Annual Meeting 2005. From left: Luiz Inacio Lula da Silva, President of Brazil, and Gordon Brown, UK Chancellor of the Exchequer.

Today, I amproposing

that we go ahead bycreating, on anexperimental basis, a levy to finance thefight against AIDS.Despite the

remarkable action of the Global Fund, theWHO, the World Bank and bilateral donors,we are failing in the face ofthis terrible pandemic.

Jacques Chirac, President of France

We haveevery

confidence in thefuture of China.China cannotdevelop in seclusionand the worldcannot develop

without China’s development. Our set policy is that we will not menace others,even when we are developed.

Huang Ju, Chinese Executive Vice-Premier

By workingtogether with

governments, faith-based and othernon-governmentalorganizations, wecan continue toprovide patients with

more equitable access to a broader range ofquality treatment options so we can halt thespread of this pandemic.

US Senator Bill Frist, following WHO/UNAIDS’ Davos announcement of newestimates on anti-retroviral HIV/AIDS treatment

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In 2005, the Forum engaged

with leaders of all

nationalities in regional

events and dialogue, sharing

strategic insights and taking

practical steps to improve

the state of the world.

Each year, the World Economic Forumbrings together key decision-makers inregional activities to address the mostcrucial issues facing their locality. Theseevents are recognized as the most time-efficient and productive tool for seniorexecutives wishing to gain new insightsinto the increasingly complex environmentin which they operate.

Throughout 2004/2005 the Forumfocused on the most important regionaland global trends to understand how theyaffect an ever more interconnected world.We succeeded in establishing closeworking relationships with thegovernments that hosted each of oursummits and roundtables. They includedthe governments of China, India, Jordan,Qatar, Singapore, South Africa,Switzerland and Ukraine.

The number of organizations participatingin our regional activities increased by anaverage of 30% on the previous year.Together, key players from business,government, academia and civil societyengaged in informal and open dialogue toshare first-hand information and insights,seek solutions and define appropriatecourses of action for the most pressingissues on regional agendas.

This year, the programme wasparticularly successful, with all activitieshaving to close registration early due toover-subscription.

AfricaOur African communities wereinstrumental in bringing Africa to the forefront of world attention –arguably, one of the year’s mostimportant achievements.

Amplified by politicians, business peopleand socially-engaged celebritiesworldwide, the message from our Africancommunities remained consistentlypositive: Africa is changing and it is openfor business. This ‘Year of Africa’message set the tone for the AfricaEconomic Summit in Cape Town, whereparticipants engaged in passionatediscussions on how businesses can playa decisive role in ‘re-branding’ Africa bybalancing the continent’s relentlesslynegative image with real cases ofachievement and success.

The summit agenda deliberately focusedon building support for the keyrecommendations listed in a reportpublished by the Commission for Africa(CfA), published in March 2005. The CfAwas launched at the beginning of 2004by UK Prime Minister Tony Blair. Its 17

Commissioners, most of them African,are active specialists in their particularspheres. They are responsible forleading an examination of thecontinent’s past and present and howthe international community cancontribute to its development.

More than 400 participants,representing some 250 regionalbusinesses and multinationals, signedtheir endorsement of the CfA report,calling on the G-8 group of industrializednations to join together with business toinvest in Africa’s future.

Throughout the run-up to the summit,there was a strong spirit of cooperationbetween all those involved in itspreparation and planning. In particular, theForum’s Africa team worked closely withgovernment representatives from across

What did our regionalcommunities achieve?

Bringing leaders – and communities – together: Victor Yushchenko, President of Ukraine (right), and Aleksander Kwasniewski, President of Poland.

The regional agenda

My concernis that after

9/11 Islam is being moremisunderstood, andI think it behoovesus, as leaders in theIslamic world, to

really propagate this message that weare a religion of tolerance and peace.

Shaukat Aziz, Prime Minister of Pakistan

Japan’s 21st century

vision focuses onproactive reformsinstead of reactivereforms.

Heizo Takenaka, Japanese Minister of State

for Economic and Fiscal Policy and for Privatization of thePostal Services

I do notbelieve that

you can increaseshareholder valueover time if you arenot concernedabout all thedifferent

stakeholders who may be affected.

Michael Hawker, CEO and Managing Director ofInsurance Australia Group, at the Asia Roundtable

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Kamal Kharrazi, Iranian Minister of Foreign Affairs, left,with Mowaffak Al Rubaie, National Security Adviser ofIraq, at the Annual Meeting 2005.

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We have to keep

up the momentum– politically,security-wise andeconomically. Wehave to create animmediate sense

that peace is not just a promise, butpeace is an immediate change inpeople’s lives.

Shimon Peres, Vice-Prime Minister of Israel andChairman of the Labour Party w

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The regional agenda

the continent and the United Kingdom,chair of the G-8 group, when shaping the agenda.

During the year, to celebrate a decade ofdemocracy in South Africa, we publisheda collection of essays on the country byForum members. The proceeds of thesell-out book were donated to the NelsonMandela Children’s Fund, which will use

the money to provide homes and care fororphans affected by AIDS.

Middle EastCreating the conditions for economicstability and growth in the Middle East isvital to the stability of the widerinternational community. Throughout2005, Forum initiatives in the regiondelivered further tangible results.

Among the most significantdevelopments was the success of ourArab Business Council (ABC) in involvingthe private sector more closely insharpening the region’s competitiveedge and fulfiling its economic potential.The ABC works closely withgovernments to improve their nationalcompetitiveness. It proactively supportsthe creation of National CompetitivenessCouncils (NCCs). Egypt now has a high-profile and influential NCC while Bahrain,Kuwait, Jordan, Qatar and Dubai arefollowing suit.

In 2004/2005, the Forum’s regionalactivity continued to demonstrate itsposition at the heart of global affairs.‘Seize the Moment’ was, appropriately,the theme of the World Economic Forumin Jordan. Convened at a critical point inthe Middle East’s development, the eventcoincided with a surge of optimismthroughout the region as the Israeli-Palestinian peace process restarted andthe region’s oil producers enjoyed aperiod of high liquidity.

Participants at this year’s Jordan summit responded to the upbeat mood,adding their full weight to acceleratingregeneration in the region. During the‘town hall’ at the start of the event,debate focused on the findings of anextensive street survey conducted bythe Forum in partnership with Al-ArabiyaTV. This surveyed over 3,000 Arabcitizens on issues such as people powerin the Arab world; the US agenda in theMiddle East; the Israeli-Palestinianpeace process; the situation in Iraq; and– most importantly – how to reform fora better future.

Summit participants stressed the need to‘seize the moment’ by acting decisively tobridge the gap between the aspirations ofordinary people and those of their leaders.In total, the meeting brought together over1,200 leaders from more than 56 countries,including those representing the interests ofwomen and young people.

The sense of common purpose betweenthe Forum and Jordan continues to

grow. During the year, we took steps todeepen our cooperation with HM KingAbdullah’s government through notableinitiatives such as Agenda 2010, aframework of reform priorities for theregion. This project was completed intime for the Jordan summit.

The high-level international support for,and relevance of, the World EconomicForum was also demonstrated at theArab Competitiveness Roundtable in Qatar. The Doha event was attendedby many senior Middle East politicians,among them ministers with economicportfolios from Jordan, Kuwait, Pakistan,Qatar and Syria.

AsiaThe Forum held three timely summitsthat focused on Asia’s growingeconomic importance. The AsiaRoundtable in Singapore was called,fittingly, ‘Tilting the Global Balance: TheStrategic Impact of Asia’s Growth’. Inopening the event, Singapore’s PrimeMinister Lee Hsien-Loong encouraged

leaders from business, government and civil society to use the roundtableas a platform to share the criticalinsights necessary to develop the rightstrategic response to the region’sforecast growth.

Under a new arrangement with theForum, the Singapore Governmentseconded an expert to our BusinessInsight team, a move that furtherreinforced our strong ties with the country.

The China Business Summit, ‘China’sDevelopment: Balancing Fast and SmartGrowth’, engaged 556 participants. Asshortages of energy and naturalresources as well as environmentaldegradation impact China’s effort tomaintain an 8-10% annual growth rate,participants focused on the criticalissues of how the country could absorbits labour surplus and reduce theincome disparity between the coastalareas and the interior. The Forum entered a cooperation

Women are the backbone of Africaand the Millennium Development

Goals cannot be reached withoutaddressing their problems andmaking them part of the solution.Hilde Johnson, Minister of International Development of Norway

King Abdullah II of Jordan and Laura Bush, First Lady of the US, at the World Economic Forum in Jordan.

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Samar M. Dudin, founding manager and theatre director, Takween Theatre and Arts Workshop for Children and Youth,Jordan, engaging with long-time socially-aware actor Richard Gere, USA, at the World Economic Forum in Jordan.


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investor confidence. The working planwas presented to President Yushchenkoin the closing plenary, causing a hugeecho in the local and international press.

Russia continues to play a critical rolein world affairs. In 2004/2005, we acteddecisively to engage policy-makers and business leaders in Russia, as thecountry prepares to take overpresidency of the G-8 in 2006. Oneinitiative included our Russia and theWorld Scenario Project. With atimescale of 20 years, this ambitiousinitiative aims to involve the widestpossible cross-section of stakeholdersin formulating a sustainabledevelopment framework for the Russian Federation.

Latin AmericaIn Latin America, as business andpolitical leaders continued toacknowledge that IT inadequacies wereimpairing economic growth, we made atimely contribution. Joining forces withone of our strategic partners, Microsoft,we hosted meetings in five countries

across the region, to discuss relevantlearnings from the Forum’s fourth GlobalInformation Technology Report.

North AmericaOur international communities continuedto lead the drive for global corporatecitizenship. In the US, participants at theSeptember Industry Meeting in NewYork City promoted global corporatecitizenship by focusing on an agendathat called for greater internationalcollaboration backed by decisive action.Working in industry-specific groups,participants identified the issues theyintended to pursue over the comingyear.

The Forum’s Global CompetitivenessProgramme entered into an agreementwith the US Agency for InternationalDevelopment (USAID). Under the termsof the agreement, the programme willprovide a source of information thatUSAID can use to analyse the quality ofgovernance and economic performancein countries that could potentiallyreceive development assistance.

agreement with the Beijing authoritiesthrough the National Development andReform Commission of China (NDRC).The purpose of the agreement is toorganize a scenario project examiningChina’s future, an initiative targeted forcompletion in early 2006. Overall, theForum’s relationship with the countrycontinues to thrive. Our proposals toopen an office in Beijing met with strongsupport from the Chinese Government.

The emergence of India as a globaleconomic power became a compellingstory internationally in 2004/2005: thekey players gathered at the Forum’s20th India Economic Summit inDecember 2004. “For the first time,there is universal acceptance that Indianow rides a crest of a wave of reformsand growth,” asserted PalaniappanChidambaram, India’s Finance Minister.The theme ‘India: The New Dynamics’reflected the emerging opportunitiesand growth challenges at the core ofthis assertion. The summit involved 631leaders from all sectors in the region.

EuropeThe World Economic Forum gathered itsmembers and partners in June for theExtraordinary Ukraine Roundtable inKiev, following the call of PresidentYushchenko at the Annual Meeting 2005in Davos to support his government inits first difficult year in power. Over 300leaders from business, politics, themedia, academia and other parts ofsociety followed this call and joined asmall, high-level gathering, which wasopened in the presence of presidentsfrom six countries. The roundtable wascharacterized by an extremely strongengagement from the UkrainianGovernment, with the president, theprime minister and virtually all keyministers involved throughout the meeting.

At the roundtable, participants obtainedfirst-hand insights into current andupcoming market opportunities inUkraine and worked out a concrete, 10-step working plan for the government tocontinue the momentum of Ukraine’s‘Orange Revolution’ and to improve

We don’t want to ignore ideologicaldifferences, but we have to recognize

that there are problems in the world thataffect all of us. Brazil is doing its share toreclaim that missing link between socialfairness and economic development.Luiz Inácio Lula da Silva,President of Brazil

The regional agenda

We live in a society

where people thinkthey can realizethemselves throughconsumption... Wemust not turn peopleonly into consumers

but rather into empowered citizens.

Heba Ezzat, Lecturer at Cairo University, Egypt

Africa’s waterproblems can

only be solved in cooperation with business.

Maria Mutagamba, Uganda Minister of State for Water

Fidela E. Ebuk, CEO, Women’s Health and Economic Development Association, Nigeria, in discussion with Darcy Rezac, MD of the Vancouver Board of Trade and international networking expert, Canada, at the Annual Meeting 2005.

There is no chance

of being able tomeet ourinfrastructure targetthrough publicresources alone.Resources will have

to come from the private sector, bothinternal and foreign.

Montek S. Ahluwalia, Deputy Chairman of India’s Planning Commission

If the USeconomy

slows, we arepossibly going tohave some risk and creditproblems in Asiaand I am not sure

we are thinking about this.

Koh Boon-Hwee, Chairman of Singapore Airlines


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In 2004/2005, we took significant steps in developing our

partnerships with industry and in identifying the emerging

risks and developments that are set to shape the world’s

business and political future.Singapore is the world’s top economy in exploiting IT, according to the Forum’s Global Information Technology Report.

Strategic Insight

Industry PartnershipsProgrammeTo further strengthen our bonds with –and value to – members, and to fostercloser engagement with industry, welaunched our Industry PartnershipsProgramme in 2004/2005.

Our Industry Partners are set to build onthe achievements of our IndustryGovernors, many of whom have alreadyjoined the new Programme. Like theIndustry Governors who preceded them,our Industry Partners comprise a selectcommunity of the world’s foremostindustry leaders drawn from arepresentative cross-section of sectorsand regions. Their balanced diversityensures that they bring a comprehensive,

global and integrated perspective to theForum’s work.

We established the IndustryPartnerships Programme in response tothree principal drivers:

• Although the economy is global, thereare – with few exceptions – no globalindustry associations. The IndustryPartnerships Programme provides adynamic forum to shape globalindustry agendas.

• Timescales are becoming shorter ascorporate strategy setting becomesincreasingly complex. The IndustryPartnerships Programme is designedto enable top corporate decision-

makers to take timely action in theface of constant change.

• The dynamics of each sector cannotbe addressed in isolation. By bringingall sectors together under a singlebanner, the Programme will make itpossible for organizations to followjoint analysis with collaborative action.

Companies are chosen to participate inthe Industry Partnerships Programme onthe basis of their support for theForum’s mission.

As part of the Programme, CEOs and senior executives from partnercompanies take part in a structured and strategically focused mix of

activities. These activities bring togetherindustry-specific communities wheremembers can share best practice, carve out new insights and developproactive solutions to commonchallenges through a process of debate and knowledge sharing.

During 2004/2005, we successfullylaunched Industry Partnerships in three pilotsectors: IT/telecommunications, energy andfinancial services. In its first nine months, 51companies joined the Programme. By2008, we plan to have created 300Industry Partnerships across 12 sectors.

Centre for Strategic InsightLaunched in 2004, the Centre forStrategic Insight made an immediate

and positive contribution to the Forum’smission during its first full year.

Working as a conduit between our networks and communities, theCentre brings increased focus anddirection to our activity. It is primarilyresponsible for aiding members byidentifying the emerging risks anddevelopments that will shape futurebusiness and political agendas around the world.

This year, the Centre played a pivotalrole in designing the programme forthe Annual Meeting, with its emphasison the tough decisions faced by global leaders.

How did we help shape the global business agenda?

Industry Partnerships


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Strategic Insight

How did we further globalcorporate citizenship?

The Jordan Education Initiative has helped thousands of young people improve their IT skills. Here, Queen Rania ofJordan, World Economic Forum Foundation Board member and head of the nomination committee for the Forum’sYoung Global Leaders group, meets schoolgirls in Amman.

Our Global Institute for Partnership andGovernance was founded in 2003/2004. Itprovides a platform for multistakeholderpartnerships, striving to tackle globalchallenges by galvanizing action, improvinggovernance and bridging the gap betweendivergent perspectives. During its first fullyear, the Institute made sound progress ina wide range of areas.

G-8 Climate ChangeRoundtableThe G-8 Climate Change Roundtable waslaunched at the Annual Meeting 2005 inDavos in response to a request from UKPrime Minister Tony Blair for business’sperspectives on climate change in the run-up to July’s G-8 Summit in Gleneagles,Scotland. Mr Blair chaired the summit in hisrole as President of the G-8 for 2005.

The Roundtable comprises 24 companiesrepresenting a broad cross-section ofindustry sectors: energy, transport, metalsand mining, financial services, electricity,construction and engineering, high tech,and communications. They are based in 11different nations, including Russia, Canada,Brazil, the US, South Africa, Japan andseveral countries from the EU.

Following an initial CEO meeting withPrime Minister Blair at Davos, climatechange experts from each of thecompanies met three times in London atworkshops co-hosted by the Forum andthe UK Foreign and CommonwealthOffice. These experts developed corerecommendations in a statementpresented at a second meeting with theprime minister in London on 9 June.

The statement, signed by each of theparticipating chief executives, emphasizesthe need to act on climate change andstresses the importance of market-basedsolutions. It called on governments toestablish ‘clear, transparent and consistentprice signals’ through creation of a long-term policy framework that includes allmajor emitters of greenhouse gases.

The statement also highlights the need fortechnology incentive programmes that useperformance-based standards toaccelerate commercialization of low carbontechnologies, and calls for a ‘newpartnership’ between the G-8 countriesand China, India, Brazil, South Africa andMexico to facilitate private investment inlow carbon infrastructure. Many of thepoints raised were reflected in the finalClimate Change Communiqué and Plan ofAction that emerged from the Gleneagles’Summit, especially the emphasis onmarket-based solutions.

Partnership and Governance

The Forum’s GlobalCompetitiveness

Programme provides the mostcomprehensive and authoritativeassessment of national economies’ability to compete, so helping globalbusiness and political leadersimprove their performance.

The world’s major challenges cannot be met alone. In

2004/2005, our Global Institute for Partnership and

Governance engaged different organizations and individuals,

from all sectors, in addressing crucial international issues.

The Forum’s Global CompetitivenessProgramme is a core part of theCentre’s work. It provides the mostcomprehensive and authoritativeassessment of national economies’ability to compete, so helping globalbusiness and political leaders improvetheir performance.

The reports it publishes have woninternational respect as uniquebenchmarking tools. Among otheraudiences, they support governmentsseeking to foster economic growth;businesses developing strategies;academics analysing nationaleconomies; and civil societyorganizations learning more about theircountries’ competitive strengths.

In October, the programme unveiled itsflagship publication, The GlobalCompetitiveness Report, at a pressconference in New York. Covering arecord 104 countries, the reportattracted unprecedented levels of mediacoverage, making headlines in over 100 major publications worldwide. Itslaunch drew a record number of hits on

the Forum’s website. It was also thesubject of a March competitivenessseminar in Moscow.

The Centre plans to increase theeffectiveness of the report by includingan additional 15 economies in the nextpublication, with an emphasis onincluding developing countries. This willtake the total number of economiescovered to 119.

In May, the Global CompetitivenessProgramme launched its milestonestudy, Woman’s Empowerment:Measuring the Global Gender Gap. Thestudy quantifies the gap between menand women in five critical areas:economic participation, economicopportunity, political empowerment,educational attainment, health and well-being. It is designed to help countriesidentify their strengths and weaknessesin advancing women’s interests – anarea of critical importance to nationaleconomic development.

Two other reports published by theCentre – The Global InformationTechnology Report 2004-2005 andThe Arab World Competitiveness Report 2005 – also gained a great deal of awareness through wide,positive coverage.

Meanwhile, the Centre’s Global RisksProgramme continued to lead analysisof the biggest challenges facingbusiness today. Through collaborationwith the Forum’s networks andcommunities, this assesses thepotential fall-out from three convergingforces: technology-driven globalization,the information overload and theconstancy of change. Launched in2004, it has now published its firstguide to the major risks confronting theglobal economy.

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Global Health InitiativeThe Global Health Initiative (GHI) continuesits work to increase the breadth and depthof private sector engagement in the fightagainst HIV/AIDS, tuberculosis and malariain Asia and Africa through public-privatepartnership. To date, the GHI has advisedover 200 companies on prevention andtreatment programmes in the workplaceand community.

Key successes this year include thesecond anniversary of the India Alliance toStop TB, a sustainable partnership withseven of India’s top ten companies, thecountry’s Ministry of Health, the WorldHealth Organization and Confederation ofIndian Industry. In 2005, the GHI alsobegan expanding its geographic focus toinclude China, where an alliance influencinga large network of migrant workers is nowin its formative stages.

To foster public and private sectorcollaboration at senior level, the GHIstrengthened private sectorrepresentation on the boards of Roll BackMalaria and Stop TB, In addition, itcontinues to serve in the private sectordelegation of the Global Fund to fightHIV/AIDS, TB and Malaria. The GHIlobbied to keep these three diseases asemergency issues on the global agenda in 2005.

Disaster Resource NetworkThe contribution Forum members make toglobal citizenship was clearly evidentfollowing the tsunami that struck SouthEast Asia in December 2004.

The Forum’s Disaster Resource Network(DRN) played an important role in theinternational relief effort. Launched fouryears ago, the DRN draws together an

alliance of business partners to coordinatehumanitarian relief efforts on fourcontinents. Its post-tsunami relief andrecovery activity proved an inspiringexample of the public-private collaborativemodel in action. Based at Sri Lanka’sBandaranaike International Airport, theDRN’s Airport Emergency Team handledover 7,400 tons of relief supplies in 24days. In total, it contributed an estimatedUS$ 1.7 million in volunteer labour andservices to emergency relief efforts in theafflicted region.

Global Corporate CitizenshipInitiativeMeanwhile, the Forum’s Global CorporateCitizenship Initiative – established toimprove corporate social responsibilityengagement worldwide – published twomilestone reports during 2004/2005. Thefirst, Partnering for Success, written incollaboration with the InternationalBusiness Leaders Forum, examinedlessons learned by companies from theirprivate-public partnerships. The secondreport, Mainstreaming ResponsibleInvestment, in collaboration withAccountAbility, proposed a detailedreform agenda for improving the way theinvestment community integrates non-financial aspects of corporateperformance into its investment decisions.

Council of 100 LeadersOne of the main ways in which theForum aims to further global citizenshipis through bringing people of differentorigins together. A key example of this isits Council of 100 Leaders. This globalcommunity comprises senior leadersdedicated to promoting greatercooperation and understanding betweenWestern and Muslim societies.Launched at the Annual Meeting 2004,the Council is the driving force behindthe Forum’s West-Islamic WorldDialogue Initiative. During the year, theCouncil’s meetings at Davos and Jordanwere instrumental in bonding its membersinto a cohesive and powerful force forpositive change. Together, they havecrystallized a vision in which Western andMuslim societies discuss their differencesopenly while advancing their commoninterests with an overriding respect for thedignity and humanity of their cultures. In2004/2005, the Council launched several

concrete projects as well as a workinggroup that is identifying gaps in how peoplefrom Western and Muslim countries areeducated about each other.

Jordan Education InitiativePrivate-public partnerships are core toGlobal Institute activity. During the year, twoimportant partnerships made particularlyencouraging progress. The JordanEducation Initiative is designed to transformeducation through technology. It has nowevolved into a true partnership involvingaround 35 organizations supporting over10,000 students in more than 50 schools.Having attracted substantial funding, thepartners plan to replicate the Jordanianmodel in the Palestinian Authority, Egypt,India and beyond.

Water InitiativeSustainable supplies of good water arefundamental to achieving the Forum’smission. Our Water Initiative – which drawsstrongly on input from the private sector –supports multistakeholder cooperation inthe management of water and watershedsworldwide. During 2004/2005, the initiativefocused on advancing specific waterpartnerships in Africa while layingfoundations for similar projects in Asia.

For more information about the GlobalInstitute for Partnership and Governance,see www.weforum.org/GIPG

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Partnership and Governance

Partnership is central to improving the stateof the world. We work with influentialbusinesses drawn from all industry sectorsand geographical regions. Together, weseek to tackle the most complex andchallenging issues facing mankind.

MembersOur members are more than just powerfuland influential. They include innovative andinspiring organizations, with the expertiseand passion to challenge conventionalthinking in pursuit of solutions that deliverresults and improve our world.

We refer to our members as ‘Globals’,‘Regionals’ or ‘Shapers’.• ‘Global’ members represent the world’s

top 1,000 companies and have an annualturnover of more than US$ 4 billion each.They make up 60% of our membership.Overall, there was a 5% increase inmembers from the BusinessWeek/Forbes list of the world’s 1,000largest companies

• ‘Regional’ members are drawn fromthe leading companies in theirparticular region and represent 30% ofForum membership

• ‘Shapers’ constitute 10% of our

membership and are selected on thestrength of their talent for innovation

Organizations applying to become Forummembers undergo a rigorous selectionprocess based on strict rules. On average,our membership committee accepts justone out of every three applications.

The last two years have seen a continuingescalation in the quality and quantity of ourmembers. During 2004/2005, the numberof new members doubled to 154, while thenumber of organizations leaving the Forumhas virtually halved. At the same time,several members demonstrated theircommitment to the Forum, and its mission,by becoming partners.

During 2004/2005, the World EconomicForum accepted the following newmembers: Abram Capital, Abu Dhabi Water& Electricity Authority (ADWEA), AdventInternational Corporation, Aladdin Group,Alfa Laval Corporate AB, AmericanInternational Group (AIG) Inc., AmerindianInvestment Advisors Inc., Arab Bank Plc,Archstone-Smith Trust, Asian Paints (India)Limited, Asia Resource Corporation PteLtd, Attijariwafa Bank, Bain Capital, Banco

Hipotecario SA, BankMuscat (SAOG), Bankof Ireland Group, Bank of Tokyo-MitsubishiLtd, Banque Cantonale Vaudoise, BASFAG, Bayerische Hypo- und Vereinsbank AG(HVB), BBC World, Belron International BV,Brevan Howard Asset Management LLP,Cadence Design Systems Inc., CapitaliaSpA, Caterpillar Inc., Centrica Plc, CEZ AS(Czech Power Company), ChinaDevelopment Bank, China MinmetalsCorporation, Citadel Investment GroupLLC, Convergys Corporation, CorelCorporation, Crescendo Ventures, DubaiHolding, Eagle River Investments, EFG –Hermes Holding, Enany Group ofCompanies, Enel SpA, Eni SpA, EurohypoAG, EZZ Industries, Federation of SyrianChambers of Commerce, Fiat SpA, FisherScientific International Inc., FreeportMcMoRan Copper and Gold Inc., FreescaleSemiconductor, Gap Inc., GeoPostInternational Management & DevelopmentHolding GmbH, Gerdau SA, GrupoIndustrial Lala, Gulf Air Company, HabibBank Limited, Heinrich Deichmann SchuheGmbH & Co., Henry Schein Inc., H&Q AsiaPacific, Hummer Winblad Venture Partners,Huntsman Corporation, India Brand EquityFoundation, Industrial Development andRenovation Organization of Iran (IDRO),

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Our members and partnersCo-chairs of the Annual Meeting 2005, from top left: N.R. Narayana Murthy,Chairman of the Board and Chief Mentor, Infosys Technologies, India;Lubna S. Olayan, Chief Executive Officer, Olayan Financing Company, SaudiArabia; Charles Prince, Chief Executive Officer, Citigroup, USA.From bottom left: Bill Gates, Co-Founder, Bill and Melinda GatesFoundation, and Chairman and Chief Software Architect, MicrosoftCorporation, USA; Daniel Vasella, Chairman and Chief Executive Officer,Novartis, Switzerland; John A. Thain, Chief Executive Officer, New YorkStock Exchange, USA.

Our members and partners

The contributionForum members

make to global citizenshipwas clearly evidentfollowing the tsunami thatstruck South East Asia inDecember 2004.


Our members and partners

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Insurance Australia Group Ltd (IAG),Interbank, International Development LawOrganization (IDLO), InternationalOrganization for Standardization (ISO),Europe, Interpipe Group, InvitrogenCorporation, ITI Group, JSC RussianRailways (RZD), KB Home, KfWBankengruppe, Korea First Bank, LippoGroup, LSI Logic Corporation, Mahindra &Mahindra Ltd, Marriott LodgingInternational, Mashreqbank PSC,MediaNews Group, Mitsui SumitomoInsurance Co. Ltd, Nahas EnterprisesGroup, National Health Service (NHS),Network Appliance Inc., Nishat Group ofCompanies, Norsk Hydro Asa, OlympusCapital Holdings Asia, Orascom TelecomHolding SAE, Oriental Weavers Group,Pacific Investment Management Company(PIMCO), Pakistan International Airlines(PIA), Partners Group, Pitney Bowes Inc.,Pon Holdings BV, Powszechny ZakladUbezpieczen SA, Prospect VenturePartners, Qatar Airways, Qualcomm Inc.,Ranbaxy Laboratories Ltd, Red Hat, Inc.,Roll International Corporation, Sal.Oppenheim Jr & Cie KGaA, Sanpaolo IMISpa, Seagate Technology Inc., ShougangGroup, Singapore Airlines Limited (SIA), S-Oil Corporation, Solectron Corporation,South Africa Foundation, SucocitricoCutrale Ltda, Sultan Center for FoodProducts, Swiss Life Group (Swiss LifeHolding), Tata Consultancy Services Ltd,Teijin Ltd, Telefonaktiebolaget LM Ericsson,TeleTech Holdings, Inc., Texas PacificGroup, The British Land Company Plc,

The Dawood Group, The St Paul TravelersCompanies, Inc., The ThomsonCorporation, The Timken Company, ThirdPoint Management Company LLC,Thomson, Tomkins Plc, TPG Ventures,TXU Corp., Unisys Corporation, UnitedBusiness Media Plc, Univar Corporation,Univar NV, URS Corporation, Valeo,Verlagsgruppe Georg von HoltzbrinckGmbH & Co. KG, Woodside PetroleumLtd, Yasar Holding AS, Yuhan-KimberlyLtd, Zenith Bank Plc, Zinifex Ltd.

PartnersOur strategic partners are selectmember companies of the WorldEconomic Forum, who strongly supportthe Forum’s mission. Their executivesprovide vital leadership to our global,regional and industry programmes,contributing their expertise andresources at the highest level toadvance worldwide economic andsocial progress. Their guidance helps ensure that our initiatives and programmes remain relevant and focused.

As well as intellectual guidance,strategic partners also contributeessential financial and in-kind support tothe Forum’s operations and activities. Insome cases, partners secondexecutives to the Forum. This gives usaccess to specialist expertise whileoffering secondees interestingdevelopment opportunities.

In addition to the strategic partners, theForum has 15 companies that partner uson industry programmes, another 26businesses that partner us on regionalevents, and many more that support ourprivate–public initiatives.

Last year, our partners held two notablemeetings. The first was their traditionalbrainstorming session at the AnnualMeeting, where partners contributed to theagenda. The second – the IndustryAgenda meeting – took place in New Yorkand focused on identifying key themes forthe Industry Governors meeting.

By the end of the year, we had 49strategic partners. This number decreasedby only three during 2004/2005, eventhough we introduced a price increase of25% across most of our strategic partnercontracts. As of 30 June, our strategicpartners were: ABB, Accel Partners,Accenture, Apax Partners, Audi, Bain &Company, Barclays Capital, Barco, TheBoeing Company, Booz Allen Hamilton,BT, Cisco Systems, The Coca-ColaCompany, Computer AssociatesInternational, Deloitte, Deutsche Bank,DHL, Dubai Holding, EconomicDevelopment Board of Bahrain, Ernst &Young, Fluor Corporation, HP, IBMCorporation, Infosys Technologies,Investcorp, KPMG, Kudelski Group,Manpower, Marsh & McLennanCompanies, McKinsey & Company, Merck& Co., Merrill Lynch, MicrosoftCorporation, Nakheel, Nestlé, New YorkStock Exchange, Nike, PepsiCo, Pfizer,PricewaterhouseCoopers, Qatar Airways,Reliance Industries, Saudi Basic IndustriesCorporation (SABIC), Siemens, Swiss Re,Time Warner, UBS, Volkswagen andZurich Financial Services.

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Communities

To increase the breadth and depth ofspecialist expertise at our disposal, theForum has created communities ofmember and partner companies, andencourages them to interact wheneverrelevant and productive.

International Business CouncilIn 2004/2005, the International BusinessCouncil (IBC) met twice and continuedto address business issues of globalimportance.

Key events included a private meetingwith Huang Ju, Executive Vice-Premierof the People’s Republic of China; ajoint update on trade from RobertZoellick, US Deputy Secretary of State,and Pascal Lamy, former EU TradeCommissioner and – from 31 August –Director-General of the World TradeOrganization; and an enlighteningexchange of views on how to create agreat company. In addition, Councilmembers made an active contribution tothe Annual Meeting agenda.

Constituencies

Advisory GroupsOur Advisory Groups cover a range ofinterests – from religious bodies andnon-governmental organizations toacademic institutions and trade unions.Their purpose is to assist other keystakeholders in the global economy toengage in, and help shape, World

Economic Forum activities. During thisyear’s Annual Meeting, we inauguratedtwo regional Advisory Groups – one inIndia, the other in China – to supportour development strategy in Asia.

Forum FacultyThe Forum Faculty is one of our richest sources of intellectual capital.Its members include many of the world’s most distinguished thinkers,experts, scientists, commentators and cultural leaders.

Faculty members contribute to thedevelopment of the Annual Meetingand/or regional events, take part insessions, and assist in workshops,governor meetings and IndustryPartnership activities.

Women Leaders Our Women Leaders Programme is dedicated to building a worldwidenetwork of female leaders, creating a mentoring arrangement betweenupcoming and established women, and ensuring that they interact closelywith the Forum of Young GlobalLeaders. It remains focused onsupporting the advancement of womenleaders while ensuring that issuesaffecting women are addressed in theglobal arena.

The proportion of woman participants atthe Annual Meeting 2005 reached anall-time high of 15% but we are notsatisfied with this ratio and will continueour efforts to increase it.

Technology PioneersTechnology Pioneers – chief executivesfrom the world’s most innovativecompanies – remain integral to theForum’s efforts to create a better world.The external advisory board that selectsthe Forum’s Technology Pioneerscomprises technology experts fromvarious fields. Its strength is one of theprincipal factors underpinning theprogramme’s success.

In 2004/2005, the calibre of the newTechnology Pioneers was againexemplary. From 107 candidates, theboard selected 29 companies. Theywere chosen on the strength of theirresponse to four emerging trends:demographic shifts driven by low birthrates and rising life expectancy; theimpeding ‘energy crunch’ and the needto find alternative fossil fuel sources; theswitch from fixed to mobile IT devices;and heightened security concerns.

Once again, the Technology Pioneersmade an invaluable contribution toForum initiatives, task forces andevents, notably the Annual Meeting.

Future challenges include maintaining thehigh standard of members, while ensuringthey are drawn from a representativeregional base. In order to sustain thecontribution of Technology Pioneers allyear round, they will increasingly beinvited to regional summits.


We are constantly…asking ourteams and our co-workers and our

board: how can we be more effective, howcan we be better leaders?…In an industrywhere the variables are changing soquickly if you’re not changing at or fasterthan the rate of those changes, you’regoing to fall off very quickly.Michael S. Dell, Chairman of the Board, Dell, USA, and member of the Foundation Board of the World Economic Forum


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Civil society and NGOsThe World Economic Forum has alwaysrecognized the importance of engagingcivil society, encouraging itsrepresentatives to articulate their viewsat all our events. During 2004/2005, wecontinued to foster strong relationshipswith an expanding cross-section ofunions and non-governmentalorganizations (NGOs).

These relationships proved invaluableto progressing such programmes asthe Global Health Initiative and thePartnership Against Corruption Initiative, the latter benefiting, forexample, from the involvement ofTransparency International.

Other NGOs that made a significantcontribution to the Forum’s work duringthe year included Amnesty Internationaland the International Alliance of Save the Children, Oxfam and WWF.

In total, 55 NGOs attended this year’sAnnual Meeting, where organizations fromSwiss civil society were instrumental tothe success of the Open Forum.

Sister organizationsThe Forum of Young Global Leadersand the Schwab Foundation for SocialEntrepreneurship both collaborateclosely with the Forum as sisterorganizations. While the former ismoving towards full independent status, the latter is already a fullyindependent foundation.

The Forum of Young Global LeadersThe creation of the Forum of YoungGlobal Leaders was announced inJanuary 2004 by Professor KlausSchwab and was created with funds hereceived on being awarded the US$ 1mDan David Prize, for helping to build theForum into an organization that worksfor peace and social responsibility.

Comprising dynamic and inspiringleaders up to the age of 40, it wasestablished in response to the growingconsensus that the interlockingchallenges confronting our world – fromnow, into the future – demandintegrated solutions based on a holistic,forward-looking vision.

It aims to define a vision for a betterworld – and to translate that vision intoresults by 2020. To this end, memberswill initially focus on the 2020 Initiative,which addresses fundamental issuessuch as development, poverty, health,security, environmental matters andglobal governance.

Selected from over 8,000 candidates,the forum’s first 238 members represent69 countries. Drawn from all sectors,more than 30% of them are women.They were chosen by a nominationcommittee comprising some of theworld’s most eminent media leaders.

Under the theme ‘The World in 2020’, the group held its inaugural summit atZermatt, Switzerland, in June 2005.

Here, 200 participants outlined a plan ofaction to shape their immediate direction.

The nomination committee, which isheaded by Queen Rania of theHashemite Kingdom of Jordan, willannounce the second group of around220 young leaders in January 2006. Thegroup will be split equally between thebusiness and non-business sectors. The forum’s launch won extensiveinternational coverage in over 100 of theworld’s most authoritative newspapers.

The Schwab Foundation forSocial EntrepreneurshipThe World Economic Forum worksclosely with the Schwab Foundation for Social Entrepreneurship, to promoteprofitable businesses with a publicpurpose. This reflects the Forum’s beliefthat global citizenship and sustainablecapitalism should never becomemutually exclusive.

Together, the two organizations showcasebusinesses that combine financialsuccess with the drive to achieve socialand environmental change. TheFoundation’s network comprises 84members, 15 of them selected during2004/2005 through a rigorous

international competition process. The new members come from Brazil,Cambodia, India, Japan, Kenya, Mexico,Nepal, Paraguay, Pakistan, Peru, theUK and the US.

To promote awareness of socialentrepreneurship, in January 2005 theSchwab Foundation launched anambitious campaign to identify a ‘SocialEntrepreneur of the Year’ in 24countries. Carefully-chosen mediapartners in each country will manage theselection process. National committeeswill comprise business and academicleaders and, wherever possible, will alsoinclude Foundation representatives andForum members.

As part of another important initiative,the Foundation established a newpartnership with the global law firmLinklaters to review the legal andfinancial restraints on promoting socialentrepreneurship in Brazil, Germany,Poland, the UK and the US.

During the year, five SocialEntrepreneurs attended a HarvardExecutive Course and three receivedpro-bono consulting work withPricewaterhouseCoopers.

We’ve seen anincredible variety

of Technology Pioneers: from companies with just a few employees to large,million-dollar corporations.Regardless of their size, allfocus on making a positiveimpact on society.Anne Taylor, Chief Strategy Officer, Deloitte, USA

Towards the summit: Young Global Leaders at their inaugural meeting, entitled ‘The World in 2020’,in Zermatt, Switzerland, June 2005.

Social Entrepreneur company Riders for Health enables healthcare workers from several African countries to reliablyservice remote areas, lowering infant and maternal mortality rates. With each motorcycle it runs, 20,000 receiveprimary healthcare every year (www.riders.org).


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Our organization

The Managing Board The Managing Board acts as the executivebody of the Foundation. It ensures thatactivities fulfil the mission of the WorldEconomic Forum and acts as itsrepresentative to outside parties. For more information about theManaging Board, visitwww.weforum.org/managingboard

The Foundation BoardThe Foundation Board is responsible forinspiring business and public confidence byensuring a flawless standard of governance.Board members are individuals with uniqueleadership experience from business,politics, academia and civil society.

The Board’s role includes: managing thestatutes of the World Economic Forum;appointing new members; determining andmonitoring execution of Forum strategies,and defining the roles of the ManagingBoard and committees.

Membership criteria includes integrity, globalvision, leadership experience andparticipation in world affairs.

In November, William Turner handed overhis responsibilities as a Vice-Chairman ofthe Foundation Board, but remains a

member. Henry McKinnell wasunanimously elected to succeed him.During the year, the Forum welcomedMaurice Lévy, Chairman and CEO ofPublicis Group, France, as a member ofthe Foundation Board.

On 30 June 2005, the Foundation Board consisted of:Klaus Schwab, Executive ChairmanJosef Ackermann, Vice-ChairmanHenry A. McKinnell, Vice-ChairmanKurt Alig, SecretaryPeter Brabeck-LetmatheLord CareyVictor L.L. ChuFlavio Cotti Michael S. DellCarly FiorinaNiall FitzGeraldOrit GadieshRajat GuptaNobuyuki IdeiCaio Koch-WeserMaurice LévyHeinrich von PiererHM Queen Rania of the Hashemite

Kingdom of JordanPeter SutherlandWilliam I.M. TurnerErnesto Zedillo

The committees of the Foundation BoardThe Foundation Board appoints fourcommittees from among its members:• The Executive Committee prepares the

decisions of the Foundation Board andoversees the Managing Board

• The Audit Committee ensurescompliance with all financial, accountingand control processes

• The Evaluation and RemunerationCommittee recommends candidates forpositions on the Managing Board andmonitors their performance

• The Mission Compliance Committeereviews Forum policies, strategies andactivities in light of its mission

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

The 2004/2005 World Economic Forum Managing Board with the ExecutiveChairman. Top, from left: Rick Samans, André Schneider, Ged Davis, KlausSchwab, Thomas Glanzmann, Michel Ogrizek, Frédéric Sicre, Peter Torreele.

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What we do

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Our organization

Structure The Forum’s structure consists of six coredepartments: Community Management,Community Development, the GlobalInstitute for Partnership and Governance,the Centre for Strategic Insight,Communications, and Events andResources Management.

Community ManagementCommunity Management is responsiblefor managing relations with the 1,000world-leading companies that make upthe Forum’s key constituency. The 30-strong team focuses on forgingrelationships with global communities ofbusiness leaders drawn from around 15industry sectors.

It is committed to fostering engagementbetween Forum members through theIndustry Partnerships Programme. Thisyear’s priorities include building on theprogramme’s early success by expanding it to include at least eight of its 15 industry sectors.

Community DevelopmentThe Community Development teamdelivers value to members and potentialmembers via a series of regional andnational meetings.

The department has six regional teamswho focus on the most importantregional and global trends tounderstand how they affect anincreasingly interconnected world.

Global Institute for Partnershipand Governance The Global Institute for Partnership andGovernance was created by the WorldEconomic Forum to broaden theapplication of public-privatepartnerships to some of the world’smost pressing problems.

The Institute consolidates all of our task forces and initiatives and is acomprehensive resource for companiesseeking to engage with the publicsector to tackle global issues.

Centre for Strategic InsightThe Centre for Strategic Insight workswith the Forum’s network ofcommunities, such as business leaders,NGOs and policy-makers to createrelevant strategic insight.

The Centre has four core teams, focusing on business insight, global insight, economics andcompetitiveness, and global andregional agendas.

CommunicationsThe Communications departmentconsists of three teams, focusing on theWorld Economic Forum's website,publications and media relations.

The three teams work together topublicize the Forum's work and toexplain to members and non-membersalike how it delivers on its mission.

Events and ResourcesManagementEach year the World Economic Forumbrings together thousands of decision-makers in meetings and regionalsummits to address the most crucialissues facing mankind.

To maintain quality and effectiveness,we have a team with unique knowledgeand experience in developing such high-calibre events.

Our people reflect the diversity of our membership, being drawnfrom 40 countries. Their skills and experience are central to thefulfilment of our mission. Last year they included:

Chairman’s OfficeKlaus Schwab, Executive ChairmanMonika Boerlin, Sandra Costa-Marini, Claudia Gonzalez, StéphanieNassenstein, Juraj Ondrejkovic, Fiona Paua, Regula Waltenspuel,Maryse Zwick.

Community ManagementThomas Glanzmann, Managing DirectorDavid Aikman, Stefano Ammirati, Mercedes Aubert, AlainBaumann, Mireille Bertolini Cabezas, Giancarlo Bruno, ThéaChiesa, Séverine Currit, Mahasti Dadressan, Magguy Deleaval,Samantha Dimeck, Cristiana Falcone, Réka Fogarasi Musso,Christoph Frei, Nadia Guillot Socquet, Susanne Helmsley, LauraItalici, Anna Janczak, Helena Leurent, Matthew McSorley, VirajMehta, Nathan Monash, Tanya Mounier, Simon Mulcahy, AndrewRichards, Samantha Sampietri, Susan Simmons, Elena Smirnova,Martha Stack, Kevin Steinberg, Anand Sunderji, Mady Tissot, SilviaVon Gunten, Alex Wong.

Community DevelopmentPeter Torreele, Managing DirectorHaiko Alfeld, Thomas Berglund, Helen Besson, Els Boekhoudt,Fabienne Chanavat, Kavita Choudhry, Daniel Davies, Natalia de laHuerga, Yvonne Diallo, Sherif El Diwany, Meaza Essenberg, AnneCatherine Gay des Combes, Serge Guex, Felix Howald, Lee Howell, Giuseppe Iorio, Julian Jaeger, Jeremy Jurgens, Carmen Keller-Baretto, Béatrice Laenzlinger, Macha Levinson,Colette Mathur, Amal Mbarki, Grant McKibbin, Sylvie Naville, LucienRieben, Kifah Salameh, Jessica Saulle, Solène Sfeir, Uschi Trouilhet,Marika Volosin, Christophe Weber, Carolina Windmeijer, Li Zhang,Reza Zia-Ebrahimi.

Global Institute for Partnership and GovernanceRick Samans, Managing DirectorPratik Bhatnagar, Francesca Boldrini, Alexandra Dauphin, ElizabethDreier, Stefanie Held, Andreï Iatsenia, Emma Jupp, Carina Larsfälten,Jason Liu, Monica Lodygensky, Satya Rajan, Clementina Todor,Valerie Weinzierl.

Centre for Strategic InsightGed Davis, Managing DirectorSven Behrendt, Judith Binzegger, Jennifer Blanke, Carla Boeckman,Nathalie Cerutti, Johannah Christensen, Ibrahim Cotran, Simone

Droz, Margareta Drzeniek, Ilaria Frau, Oliver Haugen, Kerry Jaggi,Stéphanie Janet, Alia Karaouni, Emma Loades, Augusto Lopez-Claros, Thierry Malleret, Irene Mia, Bud Ris, Justina Roberts, SarahSaffar, Shubhra Saxena, Jonathan Schmidt, Vidhi Tambiah,Alexander Van de Putte, Saadia Zahidi.

CommunicationsMichel Ogrizek, Managing DirectorMark Adams, Marie-Laure Burgener, Laura Deal, Richard Evans,Nina Joyce, Kamal Kimaoui, Matthias Lüfkens, Fon Mathuros, Laurent Sfumat, Fabienne Stassen, Samantha Tonkin, IsabelleTornare, Nancy Tranchet, Yann Zopf.

Events and Resources ManagementAndré Schneider, Managing Director and Chief OperatingOfficerChantal Adamson, Ntsoa Arintsoa, Helena Baars, Virginie Bays,Grégory Bernarda, Emmanuelle Blaser Morel, Nadine Bonard, DorisBorchardt, Damian Buchs, Denise Burnet, Nancy Chazal,Raymonde Christmann, Steve Crettenand, Irène Croisier-Rapin,Stéphanie Danhier, Laura de Wolf, Jean-Loup Denereaz, MaggieFliege, Floriane Freymond, Yannick Fuentes, Agnès Gabirout, MalteGodbersen, Karine Guitton, Elly Hammar, Nour-Eddine Iguimdrane,George Jacovides, Julianne Jammers, Carine Kulloian, GeorgeKumpera, Madeleine Manusia, Martine Michaud, Annabell Molnar,Anouk Pache, Annemarie Peter, Manuella Quilez, Petra Ruiz, MehruRuiz-Faizi, Wouter Savrij Droste, Pascale Schibli, Angela Scioscia, Christel Sutherland, Ursula Wehrli-Köpper, Sarah-Jane Zeller.

Global Leaders and Special GroupsFrédéric Sicre, Managing DirectorPaula Verholen.

Schwab Foundation for Social EntrepreneurshipPamela Hartigan, Managing DirectorSolenn de Kersauson, Maria Hermoso, Sandor Nagy, RodrigoSanchez Saavedra, Mirjam Schoening.

The Forum of Young Global LeadersNicole Schwab Sanchez, DirectorMartina Gmür, Rosanna Mastrogiacomo, Magdalena Thurig,Catherine Vindret.

These details reflect the situation on 30 June 2005.

The Forum community

The Forum community

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The skills, knowledge and dedication ofour people are essential to fulfiling ourmission. Last year we recruited anumber of new people, expanding andreinforcing our skill-base to bettersupport our members.

Our total headcount now stands at 192,compared to 180 the previous year.Reflecting our diverse, multistakeholderfocus, our people are drawn from 40countries, with almost two out of threebeing women. Forum employees remainthe most highly skilled in the sector, with70% being graduates and 8% holding aPhD. Their learning and experience iscomplemented by their youth, with their median age being around 35-years-old.

One of the year’s important humanresources developments was the launchof the Forum’s Global LeadershipProgramme. Set to welcome its firstintake of Fellows in September 2005,the programme received over 1,700applications from 138 countries and 120of the most promising candidates wereinterviewed in July.

The programme will prepareexceptionally talented individuals forleadership roles in an increasinglycomplex and interdependent world.

In September 2005, we will adapt the organization to better serve ourmembers and constituents and ensure the continued success of theIndustry Partnerships Programme. This will be done by integrating the new Global Leadership Fellows, byconstituting a team uniquely serving the Industry Partners, and by mergingour regional efforts with our efforts toserve our members.

Some of the World Economic Forum team, reflecting our focus on diversity.

Nationality Numbers*

American 21Argentinian 1Australian 3Belgian 2Bolivian 2Brazilian 2British 12Canadian 5Chinese 1Danish 2Dutch 6Egyptian 1Ethiopian 1Finnish 1French 26German 14Hungarian 1Indian 6Iranian 2Irish 1Italian 14Lebanese 3Malagasy 1Mexican 1Moroccan 3New Zealander 1Norwegian 1Pakistani 1

*As of 30 June 2005.

Our people

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Age group Numbers*

20 to 24 625 to 29 3930 to 34 5235 to 39 3640 to 44 2145 to 49 1350 to 54 555 to 59 1160 to 62 363 to 65 465 or older 2Grand total 192

Nationality Numbers*

Polish 3Romanian 1Russian 1Slovak 1South African 2Spanish 4Sri Lankan 1Swedish 3Swiss 39Thai 1Ukrainian 1Total 192

The Forum community

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Information technology andknowledge managementHarnessing the power of technology incollaboration with our TechnologyPartners is fundamental to fulfiling theWorld Economic Forum’s mission. Itfurthers our aims and objectives byimproving our internal business functions;enhancing communications between ourcommunities; fostering links with keyconstituencies, including the public; andcreating world-class meetings.

Innovative technology again enhanced theAnnual Meeting, as participants were ableto ‘test-drive’ a range of new IT servicesfirst-hand. Among other innovations,participants benefited from:• Electronic voting during the first global

‘town hall’• An advanced version of the

KnowledgeConcierge service, which ispart of our Cyber Network Centre. Thisupdated device delivers a ‘state-of-the-debate’ essay on each session in theAnnual Meeting. Via a portable wirelesstablet PC, participants were able toaccess any of these essays, fromanywhere in the venue. ViaKnowledgeConcierge, we alsopublished each essay on the publicsection of the Forum’s website, whichalso carried live webcasts along withvideo and written summaries of eachsession. This move was in line with ourdrive to share information with thewidest possible audience

• An upgraded Davos Companion,incorporating a wireless, handheld iPAQdesigned to deliver information specificto the personal requirements of eachindividual participant

• Smart cards to access the personalizednavigation systems on the electronicinformation kiosks

• Quotes from each session broadcast on

a network of 15 LCD screens. Mostextracts appeared on screen before thesession in question had concluded

After the Annual Meeting, participantsdonated 450 Davos Companions to threeSocial Entrepreneur organizations: India’sAravind Eye Care System, Afghanistan’sBRAC and the international TechnoServeorganization. Another 100 devices weredonated to the World Health Organizationand UNICEF as part of the Asian tsunamirelief appeal.

At its headquarters, the Forum took animportant step towards web-enabling itscustomer relationship management (CRM)system. This involved combining it withthe Forum’s finance system to streamlinebusiness processes, specifically thoseapplying to member management andmeeting registration.

Another important initiative involved re-engineering the electronic workplaceused by employees. They were migratedto a more flexible electronic workplace,incorporating an enhanced operatingsystem and more robust security tools.

In the run-up to the Annual Meeting, welaunched My Agenda onwww.weforum.org. This feature enablesparticipants to make best use of theirtime at Davos by allowing them tomanage logistics online and organizemeetings in advance.

CommunicationsThe communications team works to further our mission by sharing insights andinformation with all our stakeholders, fromForum members to the general public.

The Forum’s commitment to transparencyand constructive, informed dialogue was

again made clear by the high number ofeditors who actively participated in – ratherthan just covered – our Annual Meetingand regional summits. Overall, medialeaders, including a significant number ofeminent columnists and television newsanchors, made up one-fifth of participants.A special programme for media leaders atthe Annual Meeting enabled seniorjournalists to share experiences andaddress the issues raised by newtechnology and the constantly changingethical landscape in which they work.

We further increased awareness of theForum’s activities by achieving asignificant growth in coverage across abroad range of media – most notablytelevision. There was a steep increase inthe number of international TVbroadcasters who attended the AnnualMeeting, reaching a global audience ofone billion people. The Forum continuedto reinforce its strong relationship withBBC World, as coverage of debates wastransmitted to a worldwide audience ofover 250 million people. Mediaparticipants at the Annual Meetingincluded 10 of the world’s leading editorialcartoonists from Israel, Japan, Kenya,Singapore, Slovenia, South Africa,Switzerland and the US. Cartoonists alsoadded their wit and insight to meetings inJordan, Singapore and South Africa.

Looking ahead, we will reinforce efforts tofurther expand coverage and analysis ofthe Forum’s meetings. At the same time,we recognize the importance of keepingour initiatives’ profile consistently highbetween headline events. This inspired asuccessful campaign to promote a seriesof important Forum publications, includingThe Global Competitiveness Report, The Global Information Technology Reportand The Gender Gap Report.

Our relationship with opinion researchcompany Gallup International remainsimportant to the Forum, playing aninstrumental role in shaping the AnnualMeeting agenda through the ‘town hall’ programme.

Throughout the year, there was aconcerted effort to enhance editorial andreporting standards on the Forum’swebsite, www.weforum.org. Theintroduction of searchable topic essays,session summaries, webcasts, photogalleries and real-time reporting helped present content more incisively.

A strong combination of increasinglysophisticated technology and moreengaging content helped attractsignificantly higher volumes of traffic tothe site. Traffic to the members’ portalrose by 15%, while traffic to the public

site increased by 35%. Statistics alsoshow that visitors to the public site arestaying longer and reading content inmore depth. In April alone, the averagetime per visit increased by 270%compared with the previous year.

PartnershipsThe World Economic Forum seeks to forge partnerships with institutionsthat share its vision and values. It hasNGO consultative status with theEconomic and Social Council of theUnited Nations. It works closely with civil society organizations, think-tanks,governmental institutions, andfoundations such as the United Nations,the Prince Of Wales InternationalBusiness Leaders Forum, the WorldBusiness Council for SustainableDevelopment, AccountAbility,SustainAbility, the UN Foundation, theInternational Finance Corporation, theRockefeller Foundation, the SwissAgency for Development and Cooperation, the Centre for InternationalGovernance Innovation, TransparencyInternational and the Bill and Melinda Gates Foundation.

Sharing knowledge

Sharing knowledge

Israel's Michel Kichka watches fellow editorial cartoonist Patrick Oliphant, USA, drawing US Secretary of State Condoleezza Rice and other American leaders during the Annual Meeting 2005 workshop ‘Plotting a New Course for the Transatlantic Partnership’.


Year 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005

Total income* 63,806,052 72,195,453 66,454,727 74,058,911 83,336,839

out of which

members’ fees 23,588,125 24,965,367 25,530,325 25,137,257 26,546,382

participation fees 26,972,981 21,465,398 20,543,108 20,824,213

partnership 18,946,940 17,390,452 24,552,385 31,035,927

Total expenditure 63,556,294 69,077,008 66,454,522 72,307,790 82,083,503

out of which

personnel costs 27,097,659 26,584,768 29,620,236 35,723,308

office costs 10,642,445 8,360,352 9,044,738 9,253,213

activity-related costs 31,336,904 31,509,401 33,642,815 37,106,982

Surplus to be

added to the

Foundation capital 249,759 3,118,445 205 1,751,121 1,253,336

Foundation capital 8,996,308 12,114,753 12,114,958 13,866,079 15,119,415

Total staff

Full time 125 139 130 134 162

out of which seconded

by Forum members 4 4 5 5

Part time 22 28 28 28 30

* all key figures in Swiss francs

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Key figures

2000/2001

2001/2002

2002/2003

2003/2004

2004/2005

63,806,052

72,195,453

66,454,727

74,058,911

83,336,839

Total income 2000-2004figures in Swiss francs

Our financial resultsIn 2004/2005, we achieved strongfinancial results as income from all ourinitiatives and activities continued to grow.We did not touch our reserve fundsduring the year, despite investing asignificant sum into the launch of ourIndustry Partnerships Programme.

Among the most notable revenue driverswas the growing number of Forummembers choosing to become strategicpartners. In total, this trend addedSfr.1,253,336 to our reserves. This figurewas also due to cost efficiencies weachieved during the year.

In finance, as throughout our organization,we aim for excellence. During the year,we took steps to make our approachcompliant with US GAAP, pursued bestpractice across our processes andimproved our internal reporting methods.

Financial policyThe World Economic Forum’s financialpolicy states that membership fees in principle should cover operationalcosts, that events are funded throughcost contributions and that projects are supported by income frompartnership contracts. The Forum may accept grants,donations, legacies and other

contributions or subsidies that areconsistent with its purpose of ‘integratingleaders from business, politics andsociety at large into a community forglobal action committed to improving thestate of the world and the well-being andprosperity of human society’.

The World Economic Forum makes nopayments to political personalities, partiesor other organizations and avoidsinvolvement in national politics.

AuditorsThe World Economic Forum’s financial results are audited byPricewaterhouseCoopers, who examinethe balance sheet and accounts. Theannual report, as well as all institutionaldocuments, are submitted to the SwissFederal Government, which in law acts asthe supervisory body for the Foundation.

Our financial results

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Our financial results

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Our mission and values

The World Economic Forum is anindependent international organizationcommitted to improving the state of the world by engaging leaders inpartnerships to shape global, regionaland industry agendas.

Incorporated by Professor Klaus Schwabas a foundation in 1971, and based inGeneva, Switzerland, the WorldEconomic Forum is impartial and not-for-profit; it is tied to no political, partisan ornational interests.

Our culture combines the best elementsof entrepreneurship with those of public service. Thus, our motto is‘entrepreneurship in the global public interest’.

We cultivate public trust by nevercompromising our institutional integrity.We constantly strive to win the respect ofour members and constituents byensuring everything we undertake is ‘firstin class’. We can serve our communitiesbest by making ourselves a role modelfor a highly interactive, open and fastlearning community.

Our mission is best realized throughactivities which promote economic andsocial development. We believe thateconomic progress without socialdevelopment is not sustainable, whilesocial development without economicprogress is not feasible.

In addition to convening world leaders,the Forum aims to involve them in livingcommunities of common interest andpurpose. The Forum ensures substancein the form of strategic insights and,

where relevant, platforms for joint action.To carry out its mission, the WorldEconomic Forum has developed anintegrated value chain by involving worldleaders in communities, inspiring themwith strategic insights and enabling themthrough initiatives.

Our vision for the World Economic Forumis threefold. To be:

• The foremost organization which buildsand energizes leading global communities

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

• The catalyst of choice for its communitieswhen undertaking global initiatives toimprove the state of the world

The World Economic Forum enjoys uniqueglobal positioning by recognizing andresponding to two developments:

• The world’s key challenges cannot bemet by governments, business or civilsociety alone

• In a world characterized by complexity,fragility and ever-greater synchronicity,strategic insights cannot be passivelyacquired. They are best developedthrough continuous interaction with peersand with the most knowledgeable peoplein the field (learning communities)

For more information seewww. weforum.org

Our mission and values

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Saadia Zahidi, Forum economist and co-author of Women’s Empowerment: Measuring the Global Gender Gap, at the report’s London launch, with leading UK barrister Cherie Blair QC.

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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: [email protected]

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World Economic Forum - Annual Report 2004/2005

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Transcript of World Economic Forum - Annual Report 2004/2005