world economic forum Annual Report2006

Annual Report 2005/06

World Economic Forum91- 93 route de la CapiteCH – 1223 Cologny/GenevaSwitzerlandTel +41 (0) 22 869 1212Fax +41 (0) 22 786 2744E-mail [email protected]

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

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WEF_AR_COVER:WEF_AR_COVER 8.9.2006 16:05 Page 1

The World Economic Forum is an independent internationalorganization committed toimproving the state of the world by engaging leaders inpartnerships to shape global,regional and industry agendas.

WEF_AR_PART 1_corr.qxd:WEF_AR_PART 1.qxd 8.9.2006 14:27 Page 2

Contents | 01

ContentsExecutive Chairman’s statement 02

Successes and achievements 06

Strategic endeavours 08

Shaping the global agenda 10

Shaping the regional agenda 14

Shaping the industry agenda 20

Creating knowledge networks 22

Building public-private partnerships 26

Working with our members and partners 30

Engaging our communities and constituencies 33

Our organization 36

The Forum community 38

World Economic Forum USA 41

Our financial results 42

Our mission and values 44

The Forum’s Global Education Initiative develops public–private partnerships to transform education through technology


02 | Executive Chairman’s statement

Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum


Executive Chairman’s statement | 03

The World Economic Forum has once againdemonstrated that it is an organization uniquely suited to the challenges of the 21st century.Innovative, dynamic, a catalyst for change – theForum has continued to grow and to build on itsreputation. Always with the needs of our membersand partners at the heart of what we do, the last yearhas seen a number of strategic developments that Ibelieve will continue to drive this organization forward.

The strong engagement of our members and partners is fundamental to the ongoing success of the Forum. One of my biggest satisfactions this year was to see the continued strong development of our IndustryPartnership, culminating in the establishment of theWorld Economic Forum USA, our North American affiliate,which will host in New York the global headquarters for the new Centre for Global Industries. Having achieved the ambitious target of 100 Industry Partners, we feelconfident that our target of 300 by 2008 will be met. The greater geographical reach that the New York officeprovides will help us to deliver more effectively to ourpartners – but we will not lose sight of our guiding principlethat this remains ‘one’ Forum with a strong sense ofshared mission.

I am also proud that we could increase the number of ourStrategic Partners by more than 20% this year. The Forumwill work closely with these companies, supporting themas they devise and implement programmes that have apositive impact on business and society, both regionallyand globally.

In view of the new dynamics in the global businesslandscape, the Forum this year launched a strategic new venture, Global Growth Companies, who willbe the global industry champions of tomorrow. These

companies already have a strong presence in their nationaland regional markets and are moving into the global arena.We can now offer them the opportunity to become part ofthe broader Forum community, bringing with them theirfresh thinking and dynamism and in return receiving theinsights of our more established members.

In this context in June, we inaugurated the WorldEconomic Forum’s representative office in China. TheBeijing-based office is the headquarters of the WorldEconomic Forum’s new Global Growth Companiescommunity. Prior to the inauguration of the office, ChinesePremier, Wen Jiabao, received me and the WorldEconomic Forum’s International Business Council at ZhongNan Hai. As with the New York office, it considerablyimproves our ability to deliver to all of our members andpartners as well as to the new Global Growth Companies.

A focal point of our year-round activities is our AnnualMeeting in Davos. With more than 2,000 participants fromall walks of life, drawn from 89 countries, under the theme‘The Creative Imperative’, stakeholders worked together in workshops and discussion groups to generateinnovative and creative solutions to global challenges. But what pleased me particularly this year was the recordlevel of business engagement with so many CEOs andChairmen participating and helping the Forum deliver on its key initiatives.

Davos once again framed the global agenda. And it isparticularly gratifying to see the systematic way that theForum develops the programme of the Annual Meetingthrough the year, with many task forces, brainstormingsessions and the outcomes of the regional meetings allhelping to capture what will be the key challenges of theyear ahead. China and India were identified as one of the core challenges and opportunities of 2006 and I wasparticularly pleased by the strong participation of bothbusiness and government leaders from both countries. Of particular note, also, was the opening address fromGerman Chancellor Angela Merkel, who outlined her vision for reform of her country and of Europe. The open

Executive Chairman’sstatement


04 | Executive Chairman’s statement

dialogue between such leaders and the business leaderswho make up our members and partners is one of theaspects that helps to create the ‘spirit of Davos’.

And the Annual Meeting serves as a catalyst for newinitiatives – it’s also a time when we can take stock of the many successes and achievements. One of the most significant this year was the Global Plan to Stop Tuberculosis, launched by Nigerian PresidentOlusegun Obasanjo, UK Chancellor of the ExchequerGordon Brown and Microsoft Chairman Bill Gates. Theproject, a coalition of over 400 organizations, aims totreat 50 million people and prevent 14 million tuberculosisdeaths worldwide over the next ten years.

The Annual Meeting fits into a framework of regionalmeetings throughout the year. These Forums work withour members and partners to create regional platforms to assist in dialogue, understanding and, of course,

action. Notably, in May, we provided the opportunity for the re-establishment of direct contact between thePalestinian Presidency and Israeli Government, after ahiatus of 11 months, at our World Economic Forum onthe Middle East. It’s unfortunate to see recent setbacks,but this is a long road and the Forum has been engagedin helping to find a solution since the beginning of theOslo process. We must all redouble our efforts to seek a just and lasting solution for the problems of the region.

Throughout the year the Forum continued to develop its offering as a global thought leader and as a ‘hub’ ofthe best minds in the world. We now provide strategicinsights into challenges around the world by systematicallyexamining the main international risks. Our Global RiskNetwork has identified 51 such risks with the valuableinput of the world’s leading specialists from business,government, academia and NGOs. The results of ourefforts in this field have been documented in our GlobalRisk Update. And this year we also launched a GlobalScenario Programme, which has concentrated on theelaboration of three long-term scenarios for India,Russia and China. Our strength in research intocompetitiveness is already world renowned: our Global Competitiveness Network draws togetherexpertise in business and academia to help nationaleconomies improve their competitiveness and strivetowards sustained economic growth. This year wepublished the 26th edition of our influential GlobalCompetitiveness Report.

The Forum has continued to be a catalyst forpublic–private partnerships. These partnershipsdemonstrate the strong commitment of business toengage in vital, often life-saving initiatives in areas such as education, health and water provision. This year, forexample, the Forum’s Global Health Initiative reachedmore than four million people with its India BusinessAlliance to Stop TB, and elsewhere our work with five of our partner companies on protecting supply chainsagainst HIV/AIDS is helping 50,000 people, with thepotential to reach more than a million.

Zeng Peiyan, Vice-Premier of the People’s Republic ofChina and Professor Klaus Schwab at the opening ofthe Forum’s Centre for Global Growth Companies inBeijing in June 2006


Executive Chairman’s statement | 05

Such activities reflect our strong belief that businessesmust make a positive contribution to society. The onuson businesses to be good global corporate citizens isone that is firmly entrenched in our own ethos and that of our members and partners.

To build links with partners and offer members the best service, the Forum needs the most committed,experienced and talented people. To this end, we startedthe Global Leadership Fellows Programme – a three-yearcourse. Working across a range of projects, the firsttranche of 47 Fellows joined in September, chosen from1,800 applicants. A new group has already beenselected to start in the coming year.

The Forum for Young Global Leaders also allows us todraw on the talent and vision of a new generation. TheForum of Young Global Leaders, which was created in2004 to define and build a better future, is beginning to demonstrate the sort of leadership we expect fromsuch a group of young, vibrant and capable individuals. A second round of nominations saw this dynamic groupof individuals, all aged under 40, increase from 240 to415. From 90 different countries, they are working across a range of programmes and initiatives.

We continued also to work closely with the SchwabFoundation for Social Entrepreneurship to promoteprofitable businesses with a public purpose. Aprogramme to select the ‘Social Entrepreneur of theYear’ in 24 countries around the world attracted over2,000 candidates. The winners have since become partof the Schwab Foundation, driving membership to over100.

This year we reinforced the governance team of theWorld Economic Forum. Carlos Ghosn, President and CEO of Renault and Nissan, and Nandan Nilekani,CEO of Infosys Technologies, were appointed to theFoundation Board and bring considerable businessexpertise with them. The opening of the Centre for Global Industries in New York heralded the appointment

of Jean-Pierre Rosso as Chairman, the former CEO andChairman of CNH Global, who joined the Forum’smanaging board.

This year’s expansion of our activities and the robustsupport of our partners and members increased ourincome by over 25% to Sfr. 104,766,543. The substantialincrease in new projects and in the personnel required to sustain that expansion meant this increase was largelycountered by costs. We were, however, able to add asmall surplus to our reserves.

This has been another year of innovation, allowing us to better deliver for our partners and members, butalways within the clear framework of the Forum’smission. I would like to finish by extending my warmestthanks to our staff, who are the lifeblood of the Forumand who do incredible work. I would also like to thankour members and partners, whose commitment anddedication grows stronger year by year. The closeinvolvement of many of them in the production of thisannual report – providing insight and advice – underlinesthe bedrock on which this Forum is built.

Trust is one of the greatest assets that the Forumpossesses. This trust allows us to assemble all the stakeholders of our global society to jointly craftsolutions to global problems in a cooperative spirit with entrepreneurial drive. Once again, I thank you for your engagement and commitment to the WorldEconomic Forum.

Professor Klaus SchwabFounder and Executive Chairman


06 | Successes and achievements

The World Economic Forum is committed to improvingthe state of the world by engaging leaders from thepublic and private sectors and from wider civil societyin partnerships to shape global, regional and industryagendas. Here are some of the year’s highlights.

www.weforum.org/latestsuccesses

• The Disaster Resource Network (DRN) sponsored thedeployment of two Medical Action Network emergencyteams following the Pakistan earthquake in October;delivered more than US$ 3 million of high-priority relief; and constructed 400 interim shelters in Jammuand Kashmir.

• Following Hurricane Katrina DRN brought emergencywireless technology to evacuees. In just two weeks,the team established the networks needed to connect11 towns and 10 relief organizations.

• And following the Indonesian earthquake 15 heavilydamaged schools in Yogyakarta will have newlyrestored water and sanitation facilities – helping 3,000 students.

• The Global Education Initiative has benefited more than 50,000 pupils in 100 schools in Jordan.The partnership between the Forum’s IT membercompanies and the government has delivered morethan US$ 25 million in direct contributions. This year a new programme was launched in Egypt; it will reach650,000 students and 70,000 teachers.

• The Global Health Initiative launched a pioneeringproject to explore how multinationals can protect their supply chains against HIV/AIDS. Currently thisproject involves five multinationals and reaches around50,000 people. It could potentially reach more than 1 million people.

• The Global Plan to Stop Tuberculosis (2006–2015) was launched by President Olusegun Obasanjo of Nigeria, UK Chancellor of the Exchequer GordonBrown and Microsoft Chairman and Chief SoftwareArchitect Bill Gates at the Annual Meeting 2006. The plan aims to treat 50 million people and prevent14 million tuberculosis deaths worldwide over the next ten years.

• The Council of 100 Leaders: West–Islamic WorldDialogue (C-100) identified and approved six newprojects to improve mutual understanding, using more than US$ 1 million raised from public and privatesources. The projects include a Muslim Leaders ofTomorrow Forum, a religious leaders study exchange,media outreach training and a reconciliation realitytelevision service.

• The Council also presented the first C-100 Award at the Annual Meeting 2006 to boxing legendMuhammad Ali for promoting dialogue andunderstanding across different segments of society in the Western and Muslim worlds.

Global Agenda

Successes andachievements


Regional Agenda Industry Agenda

• As part of the Forum’s Water Initiative the privatesector is working in Uganda to install 1,000 water‘play’ pumps near public and school buildings. Waterprojects have also been launched in India, Mozambiqueand South Africa – 70,000 people will be reached as aresult of public-private partnerships working withexisting municipal water networks.

• Member companies of the Forum’s Energy Poverty Task Force are helping to provide electricity to more than 11,000 households in the Democratic Republic of Congo and Lesotho, through hydro and solar power and existing grids, at an estimated cost of US$ 16 million.

• Member companies launched the Business AllianceAgainst Chronic Hunger. Working with governmentsand civil society, the alliance will deliver scalable,market-based solutions to the persistent problem of hunger in Kenya.

• Our Forum of Young Global Leaders forged apartnership with Pakistan’s President Pervez Musharrafand tourism companies to tackle the humanitariancrisis caused by the 2005 earthquake in the country.They aim to restore the tourist infrastructure and boostvisits to some of the hardest-hit areas.

• The Partnering Against Corruption Initiative (PACI) now has over 100 signatory companies, representing a global annual revenue of over US$ 550 billion, andemploying more than 1.5 million people. At the AnnualMeeting 2006, the heads of the main multilateraldevelopment banks agreed to work with PACI toinclude anti-bribery requirements as part of theirbidding processes.

• The office of the World Economic Forum USA was opened in New York. It will act as the globalheadquarters of the Centre for Global Industries, whichis responsible for leading the Forum’s industry activities,including the Industry Partners Programme. Theprogramme has expanded this year with the addition of the aviation, travel and tourism; engineering andconstruction; and food and beverage industries.

• The Community of Global Growth Companies was established. Its mission is to enable emergingmultinationals to develop into the next generation ofglobal champions and become a major force drivingeconomic development.

• The Schwab Foundation for Social Entrepreneurship,which promotes profitable businesses with a publicpurpose, chose 24 national winners of the ‘SocialEntrepreneur of the Year’ award. The winners were chosenfrom over 2,000 applicants. The lives of over 650 millionpeople have been improved by the foundation’s work.

Successes and achievements | 07


08 | Strategic endeavours

To continue to act as an effective catalyst forchange, the Forum has created a detailed strategicframework for future development. Within thisframework we have launched a number of significantprojects and expanded others to make sure that wecontinue to engage our members and partners andto effectively deliver our mission and vision.

Strategic endeavours Centre for Global Industries

In March 2006, our affiliate, the World Economic Forum USA, opened its New York office to house the new Centre for Global Industries and to act as the international headquarters of our industry activities.By the end of June 2006, five sectors of the Centre forGlobal Industries had moved from Geneva to New York,namely: banking, insurance, investors, diversifiedfinancials and healthcare.

With operations spanning New York and Geneva, theCentre for Global Industries will focus on developing the Industry Partners Programme, which is aimed atengaging global companies in the Forum’s activities at the sector level. Industry Partners are membercompanies of the World Economic Forum who stronglysupport our commitment to improve the state of theworld. By the close of the 2005/2006 fiscal year, over100 companies from six industry sectors had joined theprogramme, including more than 50 from North America.

www.weforum.org/forumusa


Strategic endeavours | 09

It’s been my privilege to be associated with the World Economic Forum for over a decade. When I think about the qualities I have always cherished about it, I am most struck by the

things that should not change year to year – those lasting values that embody an organization’scharacter. The character of the Forum that I hope to see a decade from now is exactly what makes itunique today: an organization that can bring leaders of the most relevant global companies, nations and social action groups together to address practically the world’s thorniest issues.

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

ORIT GADIESHCHAIRMAN, BAIN & COMPANY, USA; MEMBER OF THE FOUNDATIONBOARD OF THE WORLD ECONOMIC FORUM

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Global Growth Companies Global Leadership Fellows

In June, business and government leaders and Forum members gathered in Beijing to celebrate the inauguration of our China office and the launch of the Community of Global Growth Companies.

The community’s mission is to enable emergingmultinationals to develop into the next generation ofbusiness champions and become a major force drivingeconomic development. It is a cross-industry community ofcompanies that have demonstrated the clear potential tobecome leaders in the global economy within five years.

Membership in the Community of Global GrowthCompanies offers an unparalleled means for businessleaders to gain a unique understanding of the keydevelopments in industry, society and geopolitics that will have the greatest impact on their future success.They will also benefit significantly from the manynetworking opportunities provided by the Forum.

The Forum’s move into China has been widely supportedby the Chinese Government. Prior to the inaugurationceremony, Professor Klaus Schwab, Executive Chairman,and members of the Forum’s International BusinessCouncil met with Premier Wen Jiabao, who reaffirmedChina's support for this new programme.

The first annual meeting of the Community of GlobalGrowth Companies will be held in China in August 2007.

www.weforum.org/ggc

Our members are among the world’s best thinkers andleaders: to support them effectively, our own people haveto be equally skilled. To ensure that we continue to attract,develop and retain world-class staff, we launched ourGlobal Leadership Fellows Programme, a three-yearcourse that fosters an understanding of how business andsociety operate and to hone top-level leadership skills.

From 1,700 outstanding applicants, 47 fellows from over 30 countries, with excellent academic and workexperience, were selected to participate in the Master’sprogramme in Global Leadership. Twenty per cent of theirtime is devoted to course work with the remainder spentworking within the Forum. This ‘leading by doing’ approachmeans Fellows are core players in all our activities.

Many of the Forum’s partners – CEOs, leading academics,multilateral institutions and NGOs – are actively involved in the programme, giving presentations and seminars. Inthe spirit of taking leadership for one’s own development,fellows design their own programme under the guidance of the dean, Michael Obermayer. Our members will haveseen Fellows in action – at the Annual Meeting 2006, atregional events and in our many initiatives.

Following the successful first year, a second tranche ofFellows has been recruited. The programme will be run on an annual basis, giving us access to a pool of peerlessindividuals for the coming years.

www.weforum.org/glf


10 | Shaping the global agenda

Much of the work carried out by the World EconomicForum during the year is on a worldwide scale.Collaborating with our members and partners, newand existing initiatives and programmes have apositive impact on the global community, improvingsociety in many ways. It is the World EconomicForum Annual Meeting in Davos each January thatframes the global agenda and highlights thechallenges facing the world in the coming year.

Annual MeetingThe Annual Meeting 2006 brought together 2,340 leadersfrom business, politics, academia, non-governmentalorganizations, the media, religion and civil society.

As the flagship event of the Forum, the Annual Meetingrepresents a year of intense collaboration across all ofour teams and with our members and partners. ‘TheCreative Imperative’ was the theme for the 2006 event,enabling leaders to develop fresh and practical responsesto a rapidly changing economic and social environment.This theme was reflected over the five days in Davos, withlively workshops, discussions and plenary sessionsdemonstrating innovative and creative thinking.

Reinforcing the Forum’s nature as a member-drivenorganization, the format for this year’s Annual Meetingagain began with a successful ‘town hall’ session. Froma range of possible topics, 600 participants chose thefive core challenges that would be focused on during theMeeting. These were: the Emergence of China and India;the Changing Economic Landscape; New Mindsets andChanging Attitudes; Creating Future Jobs; and RegionalIdentities and Struggles.

The top-level business representation was againcomplemented by many high-profile leaders fromgovernment and NGOs. The opening address was givenby the German Chancellor Angela Merkel, and otherparticipants included China’s Vice-Premier Zeng Peiyan,Pakistan’s President Pervez Musharraf, Queen Rania ofJordan, UN Secretary General Kofi Annan and former US President Bill Clinton. All took part in sessions whichranged in subject matter from leadership in times ofcrisis to concerns about climate change.

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

Shaping the global agenda

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


Shaping the global agenda | 11

German Chancellor Angela Merkel gave the opening address at the 2006 Annual Meeting in Davos


12 | Shaping the global agenda

As well as having over 240 sessions and workshops in just five days, the Annual Meeting also provided theplatform for numerous announcements around initiativesled by the Forum and its members and partners. Notleast among these was the launch of the Global Plan to Stop Tuberculosis, by Nigerian President OlusegunObasanjo, the UK Chancellor of the Exchequer GordonBrown and Microsoft Chairman and Chief SoftwareArchitect Bill Gates. This groundbreaking coalition of over 400 organizations aims to treat 50 million peopleand prevent 14 million deaths from TB worldwide overthe next ten years.

The Global Education Initiative, which launchescollaborative public-private partnerships to improveeducation systems, is already enjoying success in Jordanand Rajasthan. During the Annual Meeting, work wasinitiated in Egypt to replicate that success.

Following the major natural disasters of 2005, includinghurricanes in the US and the devastating earthquake in Pakistan, the Forum was asked to serve as a majorplatform for engaging private sector support for reliefefforts. Planning that took place at the Annual Meeting willlead to the expansion of our Disaster Resource Network,which mobilizes the resources of the international businesscommunity to rebuild the lives and livelihoods threatenedby natural and man-made disasters.

Under the leadership of the Forum’s Food and Beveragecompany members, private and public sector leadersdeveloped a business-led action plan to help reducehunger in Africa and discussed it with UN SecretaryGeneral Kofi Annan. The group has recommended that the Forum serve as a platform for putting this plan intoaction during 2006.

Leaders from several Muslim countries came together in a session on the modernization of Islamic societies, with all agreeing that these communities must be allowed toreform from within. “Take the time to understand theMuslim world, do not try to manipulate us because that will alienate us even more,” said Queen Rania of Jordan.“Modernization is not a bad word, it is in the heart of theIslamic religion,” said Hajim Alhasani, President of the IraqNational Assembly. They and Pakistan’s President PervezMusharraf and Hamid Karzai, President of Afghanistan,called for a dialogue that would improve the world for everyone.

The Forum’s Council of 100 Leaders: West-Islamic WorldDialogue Initiative (C-100) launched a new award at thisyear's Annual Meeting. The C-100 award will recognizeindividuals who make especially noted contributionstowards promoting dialogue and understanding betweenthe Muslim and Western worlds. This year, the first-everaward from the C-100 was presented to boxing legendMuhammad Ali, who has devoted himself to the ideals ofadvancing tolerance and cooperation around the world.He recently opened the US$ 82 million Muhammad AliCenter in his home town of Louisville, Kentucky, with the

Professor Klaus Schwab and Wen Jiabao, Premier of the People’s Republic of China


Shaping the global agenda | 13

mission to promote respect, hope and understandingamong children and adults.

‘The Creative Imperative’ was echoed in innovative use of technology, which played a vital role at this year’sAnnual Meeting. A central location offered 25 laptop and desktop-based stations to access the backgroundinformation specific to sessions. Participants were alsooffered a portable wireless TabletPC, which allowed themto access essays covering each session. And with morethan 70% of session seats being reserved electronicallyduring the week, the Davos community continued toembrace modern technology.

As the Annual Meeting drew to a close, attention wasdrawn back to the theme of ‘The Creative Imperative’.Panellists in the session agreed that the rise of thedeveloping world is changing the balance of power. This makes it vital that social imbalances are redressed,said James Wolfensohn, former head of the World Bank. “If we don’t do that, we will not have a stable planet…and I think Davos is approaching these questions.”

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

Open Forum Davos 2006The Open Forum, organized in cooperation with the Federation of Swiss Protestant Churches, runssimultaneously with the Annual Meeting. It offers apossibility for an open debate on globalization and itsconsequences. This project demonstrates the Forum’scommitment to engaging the general public in aconstructive dialogue.

Like previous years, the Open Forum at the AnnualMeeting 2006 attracted over 2,400 people – including awide range of local people from all walks of life and those

from civil society. In addition, a large number of peopletravelled to Davos specifically to participate in the event.

This year’s overall theme was ‘Respecting, Crossing andShifting Boundaries’. Individual sessions addressed bothlong-standing general concerns and more focused, topicalissues such as human rights. In all cases, the engageddiscussions between the public and participants of theAnnual Meeting allowed in-depth conversations.

Panellists of this year’s Open Forum included PeterBrabeck-Letmathe, Chairman and CEO of Nestlé,Kenneth Roth, Executive Director of Human Rights Watch,and Angelina Jolie, the goodwill ambassador of the UnitedNations High Commissioner for Refugees (UNHCR).

www.weforum.org/annualmeeting

International business – particularly in the global energy industries– depends on good relationships. I find attending the World

Economic Forum’s Annual Meeting a very effective way of making andmaintaining key relationships. This is not just a matter of rubbingshoulders with celebrities. Business life is a bit too hectic to devoteseveral days just to that pleasure. But the Davos meeting fully justifiesthe space in my diary each year.

As well as learning a great deal from the exchange of ideas in theplenary sessions, I expect to have around 20 one-to-one meetings withkey contacts. And this is not just with business people and politicians,but also often with representatives from NGOs. The atmosphere isgenerally very constructive and these meetings are very valuable fordeveloping mutual understanding. To sum up, for me, Davos iskey for building the right relationships.

JEROEN VAN DER VEERCHIEF EXECUTIVE, ROYAL DUTCH SHELL,NETHERLANDS

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Pascal Lamy, Director-General, World Trade Organization,and Robert Portman, US Trade Representative, at ‘A tradecompromise, for now?’ session in Davos


14 | Shaping the regional agenda

The Egypt Education Initiative – targeting 650,000 students in

schools

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

2,000


Shaping the regional agenda | 15

During 2005/2006, the World Economic Forumfacilitated high-level gatherings in China, Russia, India, Brazil, Egypt, South Africa and Japan. More than ever before, key players from business,government, academia and civil society took part in frank informal dialogue, defining action plans andworking out solutions to the most pressing regionaland cross-regional issues.

We successfully introduced a number of new features to our regional activities, and increased the interactionbetween different areas of the Forum as a result. Wecreated positive and well-received links between ourregional activities and our Industry Partners Programme. Byincluding high-level private meetings focusing on industry-specific issues in a regional context, we set the frameworkfor our Industry Partners to access valuable national andregional insights in their industries, sharing best practicesand building relations with their peers.

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

AfricaThe sentiments of John Page, Chief Economist for Africa at the World Bank, that “African solutions to Africanproblems have to come from African people and Africangovernments” summed up the buoyant resolve at theWorld Economic Forum on Africa, held in Cape Town,South Africa, at the end of May.

At a time of unprecedented African growth, the Africameeting, our 16th on the continent, provided a platform for leaders to discuss the opportunities and challengesfacing the region. It drew leaders from business,government and civil society from across Africa, includingPresident Armando Emilio Guebuza of Mozambique,President Jakaya M. Kikwete of Tanzania, and PresidentThabo Mbeki of South Africa.

While acknowledging that much work remains to be done inAfrica, there was a real sense of optimism and an overridingview that the continent has emphatically turned the corner.

During the event, sessions on global competitiveness, risk and scenarios – most notably on the rising impact ofChina and India – focused on the challenges ahead. Theemphasis moved from highlighting problems to identifyingsolutions, and culminated in an emphatic call to learn from,and do more to sustain, African successes.

Shaping the regional agenda

HM Queen Rania of the Hashemite Kingdom of Jordan,Member of the Foundation Board of the World EconomicForum, with Professor Klaus Schwab



The meeting generated strong commitments to move forward in specific areas, including optimizing the businesscontribution to the fight against pandemics, corruption and poverty. There were many highlights, including thelaunch of the Investment Climate Facility for Africa, withsecured seed funding of US$ 100 million and a strong,business-led mandate to improve the continent’sinvestment climate.

A national council was also launched in Kenya, under theauspices of the Forum’s Business Alliance Against ChronicHunger, with eight multinational and domestic companiesproviding time and resources.

A number of future commitments were also made duringthe meeting. These included a World Economic Forum-initiated public-private partnership to strengthen healthcaresystems in Africa, by addressing epidemic and pandemicdiseases in particular. The partnership will be implementedat the Annual Meeting 2007.

Middle EastA rapidly changing Middle East remained in the headlinesand at the centre of the World Economic Forum’sconcerns. Nowhere is the Forum’s role in providing a neutral platform for open dialogue and a venue for‘unconventional conversations’ more important than in aregion where such dialogue and common understanding is often frustrated by political sensitivities and traditionalrivalries. Our activities in the region help to promote changeby supporting those who are advancing reform and buildingunderstanding between decision-makers from differentparts of the world.

The Forum is playing an active role in the changessweeping this region. The Arab Business Council (ABC), forexample, has established itself as a credible and legitimatevoice of the Arab business community. The ABC’s missionis to help Arab societies to compete effectively in the globaleconomy and, in the last year, it helped establish nationalcompetitiveness councils in Kuwait and Bahrain, whileEgypt published its third national competitiveness report.

The ABC’s annual meeting in Bahrain included an influentialgroup of ministers holding the crucial economic portfoliosand, together, they pushed forward the economic reformagenda in the region. In the coming year, the ABC will workon five pillars of action: education, investment, trade, mediaand competitiveness.

The World Economic Forum on the Middle East took place in the Egyptian resort of Sharm El Sheikh in May2006. It was held under the theme ‘The Promise of a New Generation’, reflecting both the challenges and theopportunities presented by the young and growingpopulations in the region. A group of local students,meeting with members of the Forum of Young GlobalLeaders, made sure that the discussions reflected thereal priorities of the region’s youth. The meeting alsoallowed the integration of other Forum activities into the Middle East arena, such as Industry Partners, Global Growth Companies, Scenarios, the WomenLeaders Programme and the Council of 100 Leaders:West-Islamic World Dialogue.

In the spirit of ‘The Creative Imperative’ – the theme of the Annual Meeting – the WorkSpace was brought toEgypt for its debut in the Middle East. The WorkSpace,one of the highlights of Davos, creates an environmentwhere participants can break into smaller groups and brainstorm concepts. It provided the engine ofproductivity of the meeting, hosting workshops thatgenerated new ideas, and initiated a number of projects in the areas of innovation, branding, financial services and infrastructure. Dialogue was a recurring theme of theevent, which was characterized by an usually high level of openness and frankness. It brought together thePalestinian President, Mahmoud Abbas, and the IsraeliForeign Minister, Tzipi Livni, for the first high-level meetingof Palestinian and Israeli officials in 11 months, while animportant delegation of political and business leaders fromIsrael met with their Arab counterparts.

The Sharm El Sheikh meeting saw the official launch ofthe Egypt Education Initiative, which is a partnership



between the Government of Egypt and the Forum’s ITmembers community, based on the proven model of theJordan Education Initiative. In its first phase, the EgyptEducation Initiative will benefit 2,000 schools by providinginnovative content for curricula, training for teachers andstudents, and IT infrastructure. The initiative is a concreteexample of how the Forum can bring togethergovernments and the private sector in productivepartnerships to benefit the region.

AsiaIn recognition of the increasing importance of Asia in shaping global and industry agendas, the WorldEconomic Forum had a strong presence on the continent this year.

In September 2005, we held the 25th China BusinessSummit in Beijing. This saw the start of the negotiationprocess that led to a signed Memorandum ofUnderstanding at the Annual Meeting in Davos andculminated in the opening of our office in Beijing in June2006. This new office is tasked with developing theCommunity of Global Growth Companies.

The emergence of Chinese companies was a key focusof the summit, and a private working group sessionconvened to look at the how the Chinese stock marketcould be further developed. This discussion took placeas part of an ongoing workstream focusing on ‘Nurturingthe Early Stage Investment Climate’, one of the workinggroups within the Forum’s Financial Services andIT/Telecom Industry Partners programme.

For the IT/Telecoms sector, this session also concluded aprogramme of private activities between business leadersand subject experts that explored potential scenarios forChina’s future over the next 20 years, and in this context,the challenges and opportunities related to seniormanagement talent and intellectual property.

The Summit also saw the first-ever survey of the Asianbusiness response to HIV/AIDS, which showed that firms

on the continent are beginning to take preventive actionsagainst the impact of the disease. The survey wascarried out by the Forum’s Global Health Initiative,in partnership with Harvard University, the AmericanFoundation for AIDS Research and UNAIDS.

In India, New Delhi played host to the 21st IndiaEconomic Summit, where the keynote address was given by Prime Minister Manmohan Singh.

The Forum launched its India Scenario project with the participation of Montek Aluwahlia, Vice-Chairman of the National Planning Commission. This was the Forum’s first regional scenario project. The first- ever ‘town hall’ on India’s Global Competitiveness also took place, concluding that improving India’scompetitiveness in the global economy will depend on improving basic infrastructure and reducing waste in government spending.

To devise additional recommendations for improving thecountry’s performance, the Forum and the Confederationof Indian Industry (CII) commissioned a nationwide surveyby Indian broadcaster NDTV, which polled 1,076 peopleacross India to gauge their views on what areas ofimprovement hold the most promise.

The India summit also saw new initiatives taking flight. The Forum’s Water Initiative and the CII launched analliance of Indian and multinational businesses for thepurpose of improving the availability and quality of water for local businesses, communities and the environment.

Building on the success of the Jordan EducationInitiative, the Forum, the government of Rajasthan, the CII and the Global e-Schools and Communities Initiative(GeSCI) launched a new initiative aimed at improvingpublic education in Rajasthan through an extensiveprogramme of public-private cooperation.

At the Annual Meeting, there was a record level of topAsian government participation. This year was the first

The World Economic Forum plays a very important role in providing a platform that brings together an eclectic group of

industry and thought leaders. The Annual Meeting has the bestcollection of ‘business thought capital’ in one location and allows forincisive and stimulating debate on crucial issues.

It provides an opportunity to refresh one’s ideas through manythought-provoking sessions – ranging from technology initiatives, thestate of the economy, global collaboration and important emergingsocial issues. It has helped create an understanding of the imperativesof leadership in a global context and the challenges of a culturallydiverse work group.

Davos was a great experience for me and is a very effective platform to connect with the global business fraternity.

AZIM H. PREMJICHAIRMAN, WIPRO LIMITED, INDIA

“ “



time a Chinese state leader – Vice-Premier Zeng Peiyanin 2006 and Executive Vice-Premier Huang Ju in 2005 –has come to Davos in consecutive years. It was also thefirst time four Japanese ministers took part, despitedirect conflict with the winter session of the JapaneseDiet (the country’s legislature). Other Asian leadersparticipating included President Hamid Karzai ofAfghanistan and President Pervez Musharraf of Pakistan.Three senior Indian ministers and three chief ministersalso participated – the largest and most senior delegationever, with all six taking part in the summit’s IndiaEverywhere campaign. Other participants from thecontinent included Korean Foreign Minister Ban Ki-Moon,one of the candidates to be the next Secretary General ofthe UN, and Haruhiko Kuroda, President of the AsianDevelopment Bank.

A busy year was rounded off in June with the WorldEconomic Forum on East Asia in Tokyo – the first time wehave ever held a regional meeting in Japan. Organized inpartnership with Keizai Doyukai (Japan Association ofCorporate Executives) on their 60th anniversary, the event was an outstanding success. The highest-ever ratio of top-level representatives at a regional meetingparticipated. This included ten cabinet members includingthe Japanese Prime Minister and the Governor of the Bank of Japan. Prime Minister Junichiro Koizumi hosted the opening reception at his residence.

Highlights included the signing of five new Japanesemember companies. Representatives of the ruling LiberalDemocratic Party established a Davos DietmembersCaucus of over 70 Japanese members of parliament, and20 participants met privately with the Forum’s ExecutiveChairman Klaus Schwab to discuss how Japan shouldraise its international profile, using the Forum as a platform.

The theme for the event was ‘Creating a New Agenda forAsian Integration’ and a number of priorities for the regionwere identified by participants. These were: to create orassign regional institutions to discuss energy, security andenvironmental issues; to address the impact of Indian and

Chinese growth on the future competitiveness of South-East Asia; to increase energy efficiency in major consumingcountries and industries; to sustain Japan’s recovery whilecutting its fiscal deficit; and to resolve Japan’s historical andterritorial disputes with China and Korea.

The steps that many companies within Asia are makingonto the global stage was reflected by the increase in the Forum’s Asian member companies – rising from 128 to 145. The vast majority of new Asian members areIndustry Partner calibre and ranked in the Fortune 500. This year information communications technology companyLenovo became the first Industry Partner from China, whileenergy company TEPCO became the first from Japan.Indian companies Infosys and Reliance continued in theirvaluable role as strategic partners.

EuropeIn October 2005, over 300 participants from 25 countriesjoined the World Economic Forum in Russia. The sessionscovered two main themes, with the first concentrating onthe question: ‘How can Russia move from a resource-based economy to more sector diversification?’Participants engaged in discussions about the role of IT, the financial sector, the impact of high energy prices andopportunities in fast-growing markets, such as the foodindustry and retail and consumer markets. Governance andrule of law was the other topic, with participants focusingon what legal and regulatory environment the Russianprivate sector needs to prosper. After two days ofdiscussion and interaction, participants agreed on anumber of key action points, which were presented to theRussian Minister of Economy. These were: to ‘name andshame’ corrupt officials at all levels; to improve Russia’schecks and balances system; to increase the rule of law byrecognizing property; to support an independent judiciaryand to create a free press; to simplify the visa system; andto identify areas of potential comparative advantages otherthan natural resources.

The Annual Meeting in Davos was the key event for ourEuropean constituents, who made up nearly half of the

History teaches us that the most intractable problems demand response rooted in collective action. As we face new and more

complex challenges associated with deepening global integration, theneed to mobilize beyond national borders and across public, private andnon-profit sectors has become an inescapable priority.

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

RAJAT K. GUPTASENIOR PARTNER, MCKINSEY & COMPANY, USA

“ “



participants. The European agenda of the World EconomicForum, as in previous years, was strongly represented atthe Meeting, which was opened by the German Chancellor,Angela Merkel.

While most discussions involved the European point of view– from innovation and creativity to migration and religion –several sessions focused on intrinsically Europeanquestions such as how to revitalize the continent’s identityor how to best leverage the fresh impetus provided by the new member states. Other sessions addressed critical upcoming European issues, including identifying the continent’s prime security concerns and how to revive the European Monetary Union and the EU Growth andStability Pact.

More country-related discussions resulted in clearcommitments to bring together our members and partners to exclusive follow-up gatherings with their respectivegoverrnments in the course of 2006.

Latin AmericaThe World Economic Forum on Latin America was held in April 2006 in São Paulo, Brazil, under the general themeof ‘Building a Stronger Latin America in the GlobalEconomy’. Over 300 top-level participants from business,government and civil society – including Brazilian PresidentLuiz Inácio Lula da Silva – explored how the region canachieve and sustain high economic growth with equitableincome distribution.

Participants in Davos, São Paulo and around the world have worked to develop innovative solutions andapproaches and to set priorities for action that wouldconstitute an agenda for Latin America to enhance itsglobal competitiveness. Some of these proposals wereincluded in a list of ten recommendations for social andeconomic change that were issued in a communiqué at the closing session of the Latin America meeting. Afterreviewing them, participants voted to focus this year oneducation – specifically teacher training and improvingthe quality of schools – and on employing public-private

partnerships to invest in much-needed infrastructure inrural areas, underdeveloped regions and urban slums.

North AmericaThe Annual Meeting continues to play an extremelyimportant role in addressing the North American agenda and serves as a crucial event for US andCanadian members. In 2006, six US cabinet secretariesand scores of prominent CEOs, were among the NorthAmerican participants.

This broad participation contributed to the discussionand dialogue on topics ranging from trade and labourmarkets to foreign policy. US Secretary of StateCondoleezza Rice participated in a teleconference on the US freedom and democracy agenda and former USPresident Bill Clinton provided a special message in aninteractive dialogue with the Forum’s Executive ChairmanProfessor Klaus Schwab.

www.weforum.org/events

Brazilian President Luiz Inácio Lula da Silva at the World Economic Forum on Latin America in São Paulo in April 2006


20 | Shaping the industry agenda

The World Economic Forum’s business membersand partners became more deeply involved in ourinitiatives and programmes this year. By workingclosely with these organizations, we learn whatissues are important to them – and many of our new projects flourish as a result.

Industry Partners Programme This year our affiliate, the World Economic Forum USA,opened the new headquarters for the Centre for GlobalIndustries in New York. Central to the activities of thisnew office will be to continue the development of ourIndustry Partners Programme, complementing thealready existing industry activities in our Geneva office.

Industry Partners are select member companies of the World Economic Forum who strongly support ourcommitment to improve the state of the world. Theunparalleled convening power of the Forum brings thesecompanies together through a series of modules duringthe year. The Industry Partners Programme will provideparticipants with privileged access to industry insights,aiding them in their strategic decision-making processes.

We launched the Industry Partners Programme in 2005,in the IT and telecommunications, energy and financialservices industries. This year saw the expansion of theprogramme into engineering and construction; foodand beverage; and aviation, travel and tourism. Already100 companies have become Industry Partners and weremain on target for our goal of 300 companies across12 sectors by the end of 2008.

Industry Partners are involved in a broad range of ourprojects, and this year was an incredibly successful one for the programme.

IT and Telecommunications partners launched an in-depth analysis of China through the Forum’s China and the World Scenarios 2025, with a specific focus on the challenges and opportunities related to intellectualproperty and talent. In addition, two cross-industryprojects were launched, focusing on the convergencebetween media and IT and the role of technology infinancial services.

Financial Services partners collaborated with the Chinese government with regard to relaxing laws on the establishment of offshore venture capital-backedChinese enterprises.

In the Energy sector, CEOs of Industry Partnercompanies and energy ministers convened at a first-everEnergy Summit in Davos 2006. This highly successfulevent focused on investment in energy security andsimulated a terrorist attack with its effects on energymarkets. Also, CEOs from Energy partners put forwardrecommendations shaping the form and content of theG8 and G20 climate framework post-2012.

Engineering and Construction partners helped collaboratewith the World Bank on anti-corruption practices thatresulted in including anti-bribery language in biddingdocuments for infrastructure projects financed by the World Bank. Meanwhile, Food and Beveragepartners launched ‘Halving Hunger’, an action-orientedpublic-private partnership to reduce hunger in Kenya,and ‘Working towards Wellness’ which develops bestpractices on adult health and physical fitness.

In addition, the ‘Industry Partners in Davos’ programmewas launched at the Annual Meeting 2006, providingIndustry Partners with a series of exclusive meetings toengage with key decision-makers on critical global issues.

Technology PioneersAs the world becomes ever more technologicallyadvanced, it is essential that the Forum harnesses

Shaping the industry agenda


Shaping the industry agenda | 21

the work of innovative companies and utilizes it in aneffective manner. As a result, we support and highlight the work of between 30 and 50 companies as Technology Pioneers every year.

Potential Technology Pioneer companies are identifiedand assessed by an expert selection committee. Thisyear, 36 pioneers were selected. These companiesdevelop and apply the most novel and transformationaltechnologies in the fields of IT, renewable energy andbiotechnology/health. The work that they undertakeholds the promise of significantly affecting the waybusiness and society operate.

Pioneers make an invaluable contribution to the Forum’sinitiatives, workstreams, regional activities and to theAnnual Meeting, and will continue to constitute animportant supportive community for our work. Movingforward, the community will work closely with the Centre for Global Growth Companies.

www.weforum.org/aboutus

Partnering against corruptionCorporate commitment to action against corruption and bribery is growing. As a result, over 100 CEOs ofleading companies have signed the Forum’s PartneringAgainst Corruption Initiative (PACI) support statement,which calls for a zero-tolerance policy towards briberyand the development of a practical and effective implementation programme.

The PACI made significant strides this year. On World Anti-Corruption Day, 9 December 2005, the four major anti-corruption initiatives working with the private sector – PACI, the International Chamber of Commerce,Transparency International and the UN Global Compact10th Principle – agreed to coordinate their efforts to supportthe business fight against corruption and bribery. The focusis on sharing best practices among signatory companies,implementation, as well as self-evaluation.

At the Annual Meeting 2006, PACI and the multilateraldevelopment banks agreed to develop concerted anti-bribery requirements from companies seeking contractsinternationally and to work together at regional and countrylevels in anti-corruption awareness-raising events.

www.weforum.org/paci

The World Economic Forum provides a remarkable opportunity for business, political and intellectual leaders to discuss the most

important issues facing the global community and to develop solutionsfor tough economic and geopolitical challenges. One such challenge iscorruption in the conduct of international commerce, which robs localpopulations in under-developed countries of critically needed resourcesand curbs economic growth.

Under the auspices of the Forum, Fluor is actively involved in thePartnering Against Corruption Initiative (PACI). PACI is an extraordinaryendeavor, with different business sectors joining forces to make integritythe foundation on which businesses operate. I’m proud that realadvances are being made with PACI and at an accelerating pace. This initiative serves as a great model of how, by working togetherthrough the World Economic Forum, we can make a difference in our global community.

ALAN L. BOECKMANNCHAIRMAN AND CEO, FLUOR CORPORATION, USA

“

“

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


22 | Creating knowledge networks

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

sessionswith experts have beenorganized this year duringvarious Forum events for our members and partners

More than

1,000

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Creating knowledge networks | 23

Businesses and governments face a constantlyshifting landscape in the drive to realize political,industrial and societal change. It is, therefore, essentialthat they have a comprehensive understanding ofwhere they stand in the current economic climate, their strengths and weaknesses, and the risks thatexist now and those they may face in the future.

The identification and analysis of these factors are theresponsibility of the World Economic Forum’s StrategicInsight Teams, launched in 2004. This year, our StrategicInsight Teams – whose main programmes are globalcompetitiveness, global risk and scenario planning – playeda pivotal role in the Annual Meeting 2006 by designing the programme. They were also key players in supportingthe growth of the Forum’s Industry and Strategic Partners.

Global Competitiveness NetworkThis year, the Global Competitiveness Network (GCN) became the new face of the former GlobalCompetitiveness Programme. The small but distinctchange recognized the wide-ranging yet cohesive effortsthat are required in this field to bring about economicgrowth. The network creates a platform for discussion and debate for the business community, government,academia, international organizations and civil society byproviding invaluable insights into the policies, institutionsand factors affecting national competitiveness.

One of the GCN’s key tasks is to examine the ability of national economies to achieve sustained economicgrowth and long-term prosperity and thereby stimulate the necessary strategies to attain these objectives. InSeptember 2005, the 26th edition of its annual flagshippublication, The Global Competitiveness Report, wasreleased. This publication remains the top internationalreference for measures of competitiveness, providing

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

This year, the report covered a record 117 economies, upfrom 104 last year, and presented comprehensive data onover 100 variables on competitiveness. Sources includedthe latest national and international statistics, as well as the results of the Forum’s annual Executive Opinion Survey,which captures the views of almost 11,000 businessleaders on their commercial environments.

In March 2006, the GCN launched the fifth annual Global Information Technology Report, which assesses theimpact of information and communication technology (ICT).The report’s Networked Readiness Index (NRI) measures acountry’s propensity to exploit the opportunities offered by ICT for development and increased competitivenessand provides an important tool in understanding theproliferation of such technology.

The GCN also delivered an additional publication this year – the Latin America Competitiveness Review – as thebackbone of content for the World Economic Forum onLatin America in April 2006. This is the latest in a series ofregional competitiveness reports, and the second studyproduced on Latin America in the past five years.

While these publications provide a solid foundation to the work of the GCN, they are just part of a much biggerpicture. In response to an appeal from leading executivesand experts of the Forum’s Travel and Tourism industrygroup, the GCN began work on designing a Travel and Tourism Competitiveness Index to capture theattractiveness of a large number of countries as touristlocations. A Travel and Tourism Competitiveness Report will be launched in early 2007 and will provide a powerfultool for industry members to enter into informed dialoguewith policy-makers, to identify areas for potential reform in the sector.

The GCN played a major role in a series of private/publicsector roundtables. The first such event was held in April

Creating knowledgenetworks


24 | Creating knowledge networks

in Brussels with Viviane Reding, EU Commissioner forInformation Society and Media. Another took place at the World Economic Forum on the Middle East in May.

In 2005–06, the GCN and the Forum’s Arab BusinessCouncil (ABC) continued efforts to become a catalyst ofthe creation of national competitiveness councils in theMiddle East. At a Competitiveness Council Workshop,organized by the Forum’s GCN and Middle East teams inJune 2005, Bahrain launched its NationalCompetitiveness Council. Jordan, Syria, Qatar, Tunisiaand the United Arab Emirates have expressed interest tofollow suit. The ABC and GCN teams are working ondeveloping the next steps.

The GCN collaborates with key Forum members andpartners. In 2005/2006, we partnered with FedEx, GallupInternational and Microsoft, as well as externalorganizations, including the InterAmerican DevelopmentBank, Transparency International, USAID and the WorldBank.

www.weforum.org/gcn

Global Risk NetworkIn an increasingly complex and interconnected world,risks can no longer be contained within geographical orindustrial boundaries. The Global Risk Network (GRN)was founded by the World Economic Forum in 2004 toadvance new thinking on global risks; to generate riskmitigation measures; and to integrate knowledge onglobal risks. This year, the programme moved forward with theparticular help of several strategic partners.

The GRN’s work this year culminated in the release of theGlobal Risk Update 2006 at the Annual Meeting 2006. Thiswas, however, one part of a larger programme. Throughout2005, the expanding GRN held risk-specific workshops inLondon, Zurich and New York, bringing together academicand business network members to discuss global risks.Including sessions and workshops at the Annual Meeting2006, regional meetings, and other events to which it was

asked to contribute, the Global Risk team were involved inmore than 20 events during the year.

Meanwhile, the Global Risk Update 2005 was usedextensively by Forum members and partners as the basis for exploring the changing risk landscape with their own potential external business partners. It alsoserved as a valuable tool in allowing GRN partners toplace their business risks in context and to elaborate risk mitigation ideas, a process that will continue throughfurther collaboration with the Forum. And, via apartnership with the University of Pennsylvania WhartonSchool, the GRN sharpened its methodologies of analysing global risk.

The GRN’s work will provide a sound knowledge base for regional meetings and Industry Partners, as well asdeepening the engagement with the academic side of the network.

www.weforum.org/globalrisks

Scenario Planning Since its inception two years ago, the Forum’s BusinessInsight/Scenario Planning team has, in collaboration with a global network of experts, launched large-scalescenario projects on the future of India, China and Russiawithin the global context.

The projects look at the way each country might develop in the long term and explore possible challenges, alongwith potential outcomes. While providing valuable insightsinto the potential growth of the countries under review, the scenarios will also be used to explore future tradeand foreign direct investment dynamics in the regionalmeetings of Africa, India and China.

The India scenarios – co-developed with theConfederation of Indian Industry – were launched both inIndia and at our Annual Meeting 2006. They are currentlybeing used for stakeholder debate within India, thusstrengthening the regional agenda.

My association with the World Economic Forum began in the year 2000. It was the dawn of a new millennium and both Infosys and India were beginning to reap the benefits of integrating

into the global economy. However, it was our firm belief that the 21st century global company shouldbenefit society as well as its shareholders. Working with the Forum on public-private partnerships inaddressing today’s social and economic challenges seemed the natural thing to do.

I have always been impressed by the diversity of ideas and clarity of thought expressed at theAnnual Meeting as well as the regional meetings. My involvement with the International BusinessCouncil has given me the opportunity to share action-oriented solutions with visionaries who seek to make a positive difference.

I was honoured when the Forum invited me to be a member of their Foundation Board in January2006 and am keen to continue contributing to the fulfilment of the Forum’s objectives in improving the state of our world.

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

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Creating knowledge networks | 25

The Russia scenarios were at the core of the WorldEconomic Forum in Russia and the Energy IndustryPartnership in 2005, while the China scenarios were centralto the IT/Telecoms and Energy Industry Partnerships. Bothwere also launched at the Annual Meeting. The scenariosexamine such issues as global integration, geopoliticalstability, employment, demographics, infrastructure,leadership, administrative reform, political reform and ruraldevelopment. They aim to develop a shared understandingfrom which business leaders, policy-makers and other keydecision-makers can implement strategies beneficial to theircountries and the world.

The Scenario Planning team also began far-reachingprojects in other areas. These included: an 18-monthexamination of the future of the Gulf States within theregional and global context; the convergence between the IT, telecoms, and media and entertainment sectors as part of the Industry Partners Programme, and the future of technological innovation in financial services.

Forum FacultiesThe activities of the Global Competitiveness Network, theGlobal Risk Network and Business Insight/Strategic Planningbenefit greatly from the support of the Forum Faculty.

The faculty is one of our richest sources of intellectualcapital. Its members include many of the world's mostdistinguished thinkers, experts, scientists, commentatorsand cultural leaders. Faculty members contribute to theidentification of issues and development of content forregional events and the Annual Meeting; participate indiscussions at our events; and assist in workshops,Governors Meetings and Industry Partners activities.

Discussion during a WorkSpace session in Sharm El Sheikh, Egypt


26 | Building public-private partnerships

Disaster Resource Network-India provided technical assistance on the project of constructing 400 shelters in the PoonchDistrict of Jammu and Kashmir (India)


Building public-private partnerships | 27

As one of the leading advocates of the concept of good corporate citizenship, the World EconomicForum has always upheld the conviction that businesshas a central role to play in society – a conviction that is shared by our members and partners. Today’scomplex global challenges cannot be solved by oneagency alone. That is why we believe in facilitatingpublic-private partnerships, so that many necessaryadvances can be achieved – with stakeholders suchas governments and NGOs working closely withcompanies to apply the resources and competenciesof business for the benefit of all.

The Forum’s Centre for Public-Private Partnershipengages Forum members with governments, internationalbodies and civil society organizations in practical initiativesto drive more effective action or improve public policy on global and regional problems. Such initiatives form animportant part of the Forum’s Industry Partners Programme.

Ongoing initiatives in health, water, education andclimate change see Forum members making importantcontributions, alongside other companies, governmentsand NGOs. In 2005/2006, new partnerships werelaunched to combat hunger in Africa and improve private sector cooperation with United Nations disaster relief efforts.

Global Health InitiativeThe Global Health Initiative (GHI) built momentum duringanother strong year by further engaging businesses inpublic-private partnerships to fight HIV/AIDS, TB andmalaria, and helping promote important new projects.

The launch of a new programme – HIV/AIDS: GoingBeyond Big Business – explores how companies, suchas our Industry Partners Eskom, Unilever and

Volkswagen, can work with governments, NGOs and international organizations to help their small andmedium size suppliers establish HIV/AIDS workplaceprogrammes. The programme has the potential to reach one million employees in small and medium size enterprises.

The GHI provided a platform for and led the launch of the Global Plan to Stop TB by 2015 at the AnnualMeeting 2006. This new plan aims to treat 50 millionpeople and prevent 14 million tuberculosis deathsworldwide over the next ten years through an alliance of 400 organizations.

The first of their kind, the international Malaria WorkplaceGuidelines were developed and designed by the GHI tohelp businesses in malaria-endemic countries control thedisease in the workplace and the wider community.

Water InitiativeThe Forum’s Water Initiative enabled the public and the private sectors to work more closely this year. Onekey development was the establishment of an IndianBusiness Alliance on Water with the United StatesAgency for International Development, the UnitedNations Development Programme and the Confederation of Indian Industry.

This alliance aims to improve the availability and qualityof water in India. It will act as a platform to launch a series of water projects in India. The first project,conceived at the Annual Meeting 2006, is a state-widepublic-private-community partnership on water inRajasthan. Work is also in progress related to wastewater reuse, infrastructure development and policydialogue in both India and Southern Africa.

Global Education InitiativeEducation for the next generation of the world’s growingpopulation is an urgent priority for us all. The WorldEconomic Forum’s Global Education Initiative (GEI) aimsto utilize the strengths of the private sector, along with

Building public-private partnerships


government and civil society, to support education reform.Through a sustainable and collaborative approach, newtechnologies, especially in information and communicationtechnology (ICT), have modernized educational systems,skills development and quality learning.

The Jordan Education Initiative, the Forum’s first public-private partnership launched in 2003, has helped 82,000students and trained over 3,500 teachers in the publiceducation system. In Jordan, 100 discovery schools arenow fully networked and connected, with access tocomputer labs. We have applied learnings from Jordan to other new education initiatives. The Rajasthan EducationInitiative, for instance, is applying innovative and locallyappropriate public-private partnership models to improveeducational outcomes, while the Egyptian Government,through the Egyptian Education Initiative, is targeting650,000 students and 70,000 teachers in 2000 schools.

We are now working with our GEI partners to develop a setof activities to impact and catalyse education public-privatepartnerships on a global level, partnering with keyeducation institutions such as UNESCO.

Climate change Building on the successful G8 Climate Change Roundtableprocess at the Annual Meeting 2005, the World EconomicForum has been invited by the UK Government tocontribute to a new project on climate change. The G20‘Gleneagles Dialogue’ was launched in September 2005,and will last up to the G8 Summit under Japan’sPresidency in 2008.

This dialogue process will involve a series of meetings toshape policy recommendations on climate change for theperiod 2008–2012 and beyond. The Forum is proud to bepart of this important dialogue and to give businesses theopportunity to add their input to the process.

Engagement in the Gleneagles Dialogue complements ourother areas of climate change work, such as our GlobalGreenhouse Gas Register, the development of Voluntary

Carbon Standards, and a global register of offset projectsthat aim to reduce carbon dioxide emissions.

Global Governance InitiativeThe Global Governance Initiative (GGI) monitors theefforts of governments, the private sector, internationalorganizations and civil society towards achieving theUnited Nations Millennium Development Goals oninternational development, security and environmentalprotection. The GGI released its third annual report inJanuary. For the first time since its inception, the reportdeclared the world had improved its efforts in the areasof peace and security, poverty, hunger, health andeducation. This suggests that the focus given to poverty,Africa and development issues by a raft of 2005 events – the G8, high-profile campaigns such as Make PovertyHistory and the Live 8 concerts, and new policies inmajor developing countries – had a genuine impact.Efforts to improve the environment and human rights,however, slipped backwards in 2005.

The findings of the report, based on working groups ofinternationally renowned experts, were presented to worldleaders at briefings in Washington and Davos and widelydisseminated through the media. The project has helpedchart a course for world leaders to improve progresstoward global commitments over the course of three years.

Council of 100 Leaders: West-Islamic World Dialogue (C-100) During the year, the Forum’s Council of 100 Leaders:West-Islamic World Dialogue (C-100) – a community that promotes understanding and cooperation betweenWestern countries and countries with predominantlyMuslim populations – had a number of successes.

The council’s ‘Action Track’ raised US$ 1.2 millionfunding for four NGO projects through the generosity ofHRH Prince Al Waleed of Saudi Arabia and our IndustryPartner Xenel/Saudi Cable. The C-100 also coordinatedwith Islamic Relief to give prominence to theHumanitarian Forum for expanding safe charitable giving.

28 | Building public-private partnerships


Through my interactions with the World Economic Forum, I’ve seen the positive impact public-private partnership can have on global issues such as education. My parents, who

were both doctors, taught me the importance of a good education, and I truly believe that educationand the internet are the two great equalizers in life. Entire countries are using education and informationtechnology to lift themselves out of poverty and compete successfully in the global marketplace.

I am extremely proud of Cisco’s involvement in the Forum’s Global Education Initiative and it’s truly an honour to be part of such a groundbreaking educational model. What began in 2003 as aneducational pilot in Jordan has today become a model that is being replicated in countries like Egyptand India with the potential to be replicated around the world. This exemplifies what can be achievedwhen public, private, and NGO organizations join together to give back, make a difference, andimprove the state of the world.

JOHN T. CHAMBERSPRESIDENT AND CEO, CISCO SYSTEMS, USA

“ “

Building public-private partnerships | 29

In addition, it played a key role in raising US$ 1.7 millionfrom Forum member IBM for the C-100 endorsedMeadan project, which will build technologies to bridgethe divide between the Islamic world and the West.

One particular highlight of the year was the inaugural C-100 Award, which was launched at the Annual Meeting2006. It was presented to boxing legend Muhammad Alifor promoting dialogue and cooperation.

Information Technology Access for EveryoneOn the basis that new models of collaboration wererequired to close the divide between those who haveaccess to the benefits of technology, and those who do not, the CEOs of many of the world’s leadingtechnology companies mandated the establishment of World Economic Forum’s IT Access for EveryoneInitiative (ITAFE).

By surveying over 50 ICT projects in developing andemerging countries, ITAFE established that the bestsolution involved a robust ecosystem of participants, and the right business model for long-term sustainability.This involves the collaboration of multiple partners fromthe public and private sectors and the local NGOcommunity in tackling specific individual needs:education, employment and health.

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

Disaster Resource Network The goal when facilitating many of our public-privatepartnerships is for the programme to ultimately be self-sustaining and successfully run itself. The DisasterResource Network (DRN) is a perfect example of this.

The DRN is helping companies around the world play an increasingly important role in international disasterpreparedness and response operations. In 2005, theDRN and corporate partners in engineering, construction,telecommunications and logistics put their resources towork on the ground following the tsunami, the South Asiaearthquake and Hurricane Katrina.

In the aftermath of the earthquake, 400 families inGujarat, India moved into newly constructed transitionalshelters; more than 3,000 injured people in the AllaiValley received emergency medical care; and thousandsof others benefited from an airlift of US$ 3 million of high-priority relief supplies – medicine, hospital equipment,blankets, six-person thermal tents, generators and watersanitation equipment.

www.weforum.org/initiatives


30 | Working with our members and partners

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

Member and Partner companiesinvolved in public-privatepartnerships organized by the Forum529


Working with our members and partners | 31

The businesses that we work with – across allindustry sectors and geographical regions – bring a level of expertise that plays a vital role in ourinitiatives and programmes.

MembersOur members represent the world’s foremost 1,000 global companies. Characteristics of members include: • their rank among the top companies within their

industry and/or country• the global dimension of their activities• their leading role in shaping the future of their industry

and/or region

Organizations that apply to become Forum membersundergo a rigorous selection process based on strictrules. On average, our membership committee acceptsjust one out of every five applications. Those that arechosen to become members are leaders in their sectoror region and demonstrate creative and innovativesolutions to some of the world’s mostchallenging problems.

As core to all our activities, members exhibit theircommitment to the mission of the Forum by engaging at the Annual Meeting and in our various regionalactivities or initiatives and programmes. Be it the sharingof best practices in the management of HIV/AIDS in theworkplace, the active contribution on the advisory boardof one of our Industry Partners Programmes or theengagement in one of our regional events, the Forum isin a unique position of being able to provide its memberswith the platform for the voice of global business.

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

Abdulhadi A. Al Qahtani Sons Group Adveq AFLAC Inc.Akzo Nobel NV Alghanim Industries Altimo Aluminium BahrainAmerican Express Company APEX-Brasil (Trade and InvestmentPromotion Agency) Areva Autodesk Inc. Barrick Gold CorporationBayer AG Biocon India British Airways Plc British ColumbiaHydro and Power Authority Cambridge Energy ResearchAssociates Inc. (CERA) Carlson Wagonlit Travel SAS Central Bankof Nigeria Cerberus Capital Management LP China InternationalCapital Corporation Limited China Mobile CommunicationsCorporation China Petroleum & Chemical Corporation (SinopecCorp.) Compagnie Financière Tradition Daiichi PharmaceuticalCo. Ltd E*Trade Financial Corp. EFG – Hermes Holding EFGInternational EgyptAir Electronic Arts Inc. EMC CorporationEmirates Telecommunications Corporation (Etisalat)Energie Baden-Württemberg AG (EnBW) Erste Bank derOesterreichischen Sparkassen AG Federal-Mogul CorporationFonterra Co-operative Group Limited Freescale SemiconductorInc. Gilead Sciences Inc. Government of Rajasthan GrupoOmnilife Gucci Group Gulf Finance House Humana Inc.Huntsman Corporation Hyundai Motor Company IDB HoldingCorporation Ltd Italcementi SpA JFE Holdings Inc.KarstadtQuelle AG Kuwait Petroleum Corporation Lagardère SCALANXESS AG Lenovo Group Limited Linklaters MarinopoulosBrothers Merck KGaA Molson Coors Brewing Company MTVNetworks Mubadala Development Company Munich Re(Münchener Rück) Nakheel National Health Service (NHS)Nigerian National Petroleum Corporation (NNPC) Nile ClothingCompany Norsk Hydro Asa OJSC Telecominvest OmnicomGroup Inc. Oriental Weavers Group PADICO PakistanInternational Airlines PIA Pantech Group Petrol Ofisi AS PGSILimited Phoenix Satellite Television Co. Ltd Playtex Products Inc.Polska Grupa Farmaceutyczna SA Pomona Capital Port ofRotterdam PT Bank Mandiri (Persero) PWC Logistics QatarFinancial Centre Quadrangle Group LLC Reliance Energy LtdRoyal & SunAlliance Insurance Group Plc Russian Aluminium(RusAl) JSC Sace SpA Satyam Computer Services Ltd SBS SeoulBroadcasting System (SBSi) Schering-Plough Corporation SercoGroup Plc Shinsei Bank SVB Capital Symantec CorporationTelenor ASA The Exxel Group The Nigerian Stock Exchange TheSt Paul Travelers Companies Inc. TMK Tupperware BrandsCorporation UBA Group Union Bank of Nigeria Plc US Trust Corporation Visteon Corporation WarburgPincus LLC Warner Music Group (WMG) Washington Mutual Inc.(WaMu) WI Harper Group Inc.

www.weforum.org/partners

Working with our members and partners

As CEO of a company with revenues derived primarily from food packaging, I am acutely awarethat chronic hunger is a daily problem for over 850 million people a year, shortening lifespans and

damaging health, while creating a major barrier to development. I believe that businesses such as ourshave a moral obligation to take action to alleviate chronic hunger. However, this complex problem canonly be solved through partnership between business, government, NGOs and civil society – making areal, sustainable difference requires a joined-up approach.

The World Economic Forum has provided a platform to create and launch the Business AllianceAgainst Chronic Hunger, a multistakeholder group which will work to solve the root causes of hunger,starting on the ground in Siaya District in Kenya. For me, this initiative clearly demonstrates how the World Economic Forum, and its Industry Partners, can translate intentions at the highest level into on-the-ground action.

WILLIAM HICKEYCEO, SEALED AIR, USA

“ “


32 | Working with our members and partners

Strategic PartnersThe Strategic Partners of the World Economic Forum are one of the driving forces behind our activities andcommunities and are actively involved in our endeavoursat the global, regional and industry levels. Drawn from theleading corporate global citizens, they provide essentialleadership in support of the Forum’s mission to improvethe state of the world.

Our Strategic Partners help shape our initiatives, projectsand task forces and provide intellectual guidance throughthe participation of their most senior executives in steeringboards and advisory groups as well as through secondingdedicated staff to the Forum’s operations. Without theirconsiderable financial support and in-kind services, theForum would not be able to deliver its programmes andadvance worldwide economic and social progress.

During the last year, the number of companies involvedwith the World Economic Forum at this level increasedfrom 49 to 60 companies, from virtually every industrysector. In addition, their individual support andengagement in our activities, public-private partnershipsand communities increased significantly.

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

The new communities of the Forum, such as the Forum forYoung Global Leaders and the Global Growth Companiesprogramme, each had between two and five StrategicPartners involved at their early stage of development tohelp shape their programmes and activities.

The newly formed Partners Advisory Group met twice to provide input into the global agenda. As a group, they are the best representatives of global, multi-sectoralbusiness perspectives and their input generated over 30 sessions. Their perspectives on the programmehelped ensure that more sessions at the Annual Meetinghad practical business value to participants.

As at 30 June 2006, our Strategic Partners are:

ABB Accel Partners Accenture AMD Apax Partners AudiAvaya Bain & Company Barclays Bombardier Booz AllenHamilton British Telecom CA Cisco Systems CitigroupCredit Suisse Deloitte Deutsche Bank Deutsche Post WorldNet Deutsche Telekom Dubai Holding E*Trade Financial Corp.Economic Development Board of Bahrain Ernst & YoungFluor Corporation Goldman Sachs Google HP HSBC Infosys Technologies Intel Corporation Investcorp JPMorgan Chase KPMG Kudelski Group Lehman Brothers ManpowerMarsh & McLennan Companies McKinsey & CompanyMerck & Co Merrill Lynch Microsoft Corporation NakheelNASDAQ Nestlé New York Stock Exchange Nike PepsiCoPfizer PricewaterhouseCoopers Qatar Airways RelianceIndustries Saudi Basic Industries Corporation SiemensSwiss Re The Coca-Cola Company UBS Volkswagen WPPZurich Financial Services.

www.weforum.org/strategicpartners


Engaging our communities and constituencies | 33

A key driver behind the World Economic Forum’sactivities are the communities of member andpartner companies. We have developed specificcapabilities to foster these communities andencourage them to interact.

The Forum of Young Global LeadersIn its first full year, the Forum of Young Global Leaders made an immediate impact on a number of our programmes as well as expanding its community of dynamic and inspiring individuals all aged under 40. In January, our selection committee, composed ofmedia leaders and chaired by Queen Rania of Jordan,announced the new class of 180 individuals. Thecommunity now has 415 members from 90 differentcountries representing all regions and stakeholder groups.

Since their inaugural summit in June 2005, the YoungGlobal Leaders have created several task forces in theareas they consider will be priority concerns for the world in 2020. One such project is Reinventing Aid,which studies how international aid needs to berethought in order for the world to meet the MillenniumDevelopment Goals. Other areas of focus include health, education, global governance and security, and the environment.

In addition, in response to an appeal from Young GlobalLeaders in Pakistan after the October 2005 earthquake, a delegation visited the affected areas and set up a taskforce to contribute to the reinvigoration of the tourisminfrastructure that is critical to economic recovery.

At their second Annual Summit, held in Vancouver,Canada, in June 2006, Young Global Leaders

brainstormed on the theme ‘Innovations 4 the future’,and continued the work on their task forces to shape the world in 2020. Significant progress was achieved on several fronts: for example, to address global climatechange, a group of YGLs decided to launch a series of actions to raise awareness among leaders and thepublic, engage the private sector in focusing on businessopportunities and spread best practices to changeconsumer behaviour.

The voice of the younger generation of leaders wasintegrated throughout the year’s activities, both at theAnnual Meeting in Davos – where 150 Young GlobalLeaders participated actively across all sessions – and at our regional events.

The Schwab Foundation for Social EntrepreneurshipThe World Economic Forum works closely with theSchwab Foundation for Social Entrepreneurship tosupport profitable businesses with a public purpose.Together, the two organizations aim to open upnetworking opportunities to visionaries who have adriving passion to improve society. The support of thefoundation has allowed high-impact social entrepreneursto mobilize millions of dollars of investment and to serve as inspirational role models in their countries and around the world.

In 2005, the foundation spearheaded an effort withmedia partners in 24 countries worldwide to search andselect the ‘Social Entrepreneur of the Year’ in each ofthose nations. The foundation screened over 2,000candidates, with finalists and winners being selected bynational selection committees of business and thoughtleaders in each participating country.

All the winners have since become members of thefoundation. The community today is made up of 100leading innovative entrepreneurs, whose initiatives havethe capability to be replicated to resolve similarchallenges elsewhere.

Engaging ourcommunities andconstituencies

The World Economic Forum is a great example of how the public and private sectors can join together to foster creative and

innovative ideas that address some of society's most difficult challenges.Microsoft is committed to improving affordability and technology accessfor underserved populations and helping to create opportunity througheconomic development. As a result, we will continue to partner with awide range of organizations, including the World Economic Forum. Istrongly believe that these partnerships are essential if we are going toachieve the high ambitions that the World Economic Forum hasset for addressing critical issues around the world.

BILL GATESCO-FOUNDER, BILL AND MELINDA GATESFOUNDATION; CHAIRMAN AND CHIEF SOFTWAREARCHITECT, MICROSOFT CORPORATION, USA

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34 | Engaging our communities and constituencies

The International Business CouncilThe International Business Council (IBC) is a communityof 100 highly respected and influential chief executivesfrom all industries. As in previous years, the IBCgathered twice during the last 12 months for peerexchanges on global risks which were the cornerstone of the IBC Summer Meeting. Also, just two weeks beforeher party won the German election, the IBC met with Angela Merkel – now German Chancellor – to discussher vision for her country in the context of Europe.

At the IBC’s Winter Meeting, which took place at the Annual Meeting 2006 in Davos, the councilexchanged views with Zeng Peiyan, Vice-Premier of theState Council of China, about the country’s new five-yearplan. They continued their trade dialogue during a joint,private IBC session with some of the key trade deal-makers, including: Peter Mandelson, Trade Commissionerat the European Commission; Celso Amorim, Minister ofForeign Relations for Brazil; Pascal Lamy, Director-Generalof the World Trade Organization; Robert Portman, USTrade Representative; and Mark Vaile, Deputy PrimeMinister and Minister for Trade, Australia.

In addition, the IBC members had an opportunity tomeet in private with Chinese Premier Wen Jiabao inBeijing on 13 June prior to the official launch of theCommunity of Global Growth Companies and theopening of the Forum’s new office in the city.

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

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

on the reception this study received, we are currentlyworking on the second in the series. Through the creationof a new Gender Gap Network, the Women LeadersProgramme reaches out to appropriate policy-makers toensure effective dissemination of, and action around, theinformation revealed by the study rankings.

Civil society organizationsCivil society organizations continue to occupy a centralposition within the Forum’s multistakeholder platform.Their unique expertise and far-reaching influence in a variety of fields make them valuable collaborators in a number of our initiatives and programmes.

At both the Annual Meeting 2006 and the regionalevents, civil society organizations, including non-governmental organizations (NGOs) and labour leaders,played significant roles in defining the global and regionalagendas. NGOs also continue to provide substantiveinput and guidance to a number of Forum workstreamsand activities.

As the new Centre for Public-Private Partnership evolvesand deepens its activities, it is expected that NGOs willform an integral part of its framework, helping to shapespecific initiatives in important ways.

www.weforum.org/aboutus

For almost two decades, PricewaterhouseCoopers has been a dedicated supporter of theWorld Economic Forum. I have personally been involved with the Forum for many years and

have observed the important difference it makes – in both significant and subtle ways.On a global scale, the Forum brings together thought leaders to expand the dialogue on, and

seek solutions to, key issues of the day – from global economic growth to critical social problems. My involvement with the Forum’s International Business Council gives me a deeper understanding of critical issues facing the leaders of today’s businesses, such as global risks and trade.

Then there are the successful regional, industry and partner events where I, along with others, have the opportunity to engage in dialogue with political and business leaders and establish valuablerelationships. It is my fervent hope that the Forum will continue to create foundations of understandingand pathways to future solutions.

I value and appreciate the Forum’s ongoing commitment to improving the state of the world through thoughtful and intelligent dialogue with world leaders.

SAMUEL A. DIPIAZZA, JRGLOBAL CEO, PRICEWATERHOUSECOOPERS, USA

“ “


Engaging our communities and constituencies | 35

650The work of social entrepreneurs of the World Economic Forum has improved the lives of over

million people

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


36 | Our organization

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 its representative to outside parties.

In 2005/2006, the Managing Board consisted of: Klaus Schwab, Executive Chairman (1)Ged Davis (5)Michael Obermayer (6)Jean-Pierre Rosso (7)Rick Samans (3)André Schneider (4)Peter Torreele (2)

For more information about the Managing Board, visitwww.weforum.org/leadershipteam

The Foundation BoardThe Foundation Board is responsible for inspiringbusiness and public confidence by ensuring anexemplary standard of governance. Board members are individuals with unique leadership experience frombusiness, politics, academia and civil society. They donot represent any personal or professional interests,solely those of the Foundation.

The Board’s role includes: managing the statutes of the World Economic Forum; appointing new members;approving and monitoring the execution of Forumstrategies; defining the roles of the Managing Board and committees; approving the annual accounts; andacting as the Board of Trustees and the guardian of the Foundation’s mission, values and brand.

Board membership criteria include: integrity, global vision,leadership experience and engagement in world affairs.

In November, the Foundation Board discussed andapproved the Roadmap 2008, which had been preparedby the Managing Board, outlining the Forum’s strategyfor the next three years. The Foundation Board alsoapproved the opening of the Centre for Global Industriesin New York. In its January 2006 meeting, Carlos Ghosn,President and CEO of Renault and of Nissan MotorCompany, and Nandan Nilekani, President, CEO andManaging Director of Infosys Technologies, wereunanimously elected new members of the board.

During the same board meetings, William Turner, whohas served as member and Vice-Chairman for manyyears, stepped down, having reached the Forum’sretirement age, and Caio Koch-Weser resigned from the Board, after having left the German Government. The Board expressed its great appreciation for theirengagement and friendship.

On 30 June 2006, the Foundation Board consisted of:• Klaus Schwab, Executive Chairman• Josef Ackermann, Vice-Chairman• Henry A. McKinnell, Vice-Chairman• Kurt Alig, Secretary• Peter Brabeck-Letmathe• Lord Carey of Clifton• Victor L. L. Chu• Flavio Cotti• Michael S. Dell• Niall FitzGerald• Orit Gadiesh• Carlos Ghosn• Rajat Gupta• Nobuyuki Idei• Maurice Lévy• Nandan Nilekani• Heinrich von Pierer• HM Queen Rania of Jordan• Peter Sutherland• Ernesto Zedillo

Our organization

1 3

2


Our organization | 37

4 5 6

7

The Committees of the Foundation BoardThe Foundation Board appoints four committees fromamong its members:• The Executive Committee exercises the overall

strategic management of the Foundation and overseesthe Managing Board.

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

• The Evaluation and Remuneration Committeerecommends candidates for positions on theManaging Board, evaluates their performance and determines their remuneration.

• The Mission Compliance Committee reviews Forumpolicies, strategies and activities in light of its mission.

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

StructureThe Forum’s structure consists of six core departments:the Centre for Global Industries, Regional Agenda teams,the Centre for Public-Private Partnership, the StrategicInsight teams, Communications, and Events andResources Management.

Centre for Global Industries – The Centre for GlobalIndustries (Geneva) houses our Swiss-based industryteams. Together with their counterpart teams from our affiliate, the World Economic Forum USA (see page 41 for detail about its organization), these teams are responsible for managing relations with globalcommunities of business leaders drawn from over 15 industry sectors. They are committed to fosteringengagement between Forum members through theIndustry Partners Programme. This year’s prioritiesinclude continuing to expand the Industry PartnersProgramme to include at least eight active industry sectors.

Regional Agenda teams – The Regional Agenda teamsdeliver value to actual and potential members via a seriesof regional and national meetings. The department hassix regional teams who focus on the most important

regional and global trends to understand how they affect an increasingly interconnected world.

The Centre for Public-Private Partnership – The Centrefor Public-Private Partnership was created by the World Economic Forum to broaden the application ofpublic-private partnerships to some of the world’s mostpressing problems. The Centre consolidates all our taskforces and initiatives and is a comprehensive resourcefor companies seeking to engage with the public sectorto tackle global issues.

The Strategic Insight teams – The Strategic Insightteams work with the Forum’s network of communities,such as business leaders, NGOs and policy-makers, to create relevant strategic insight. The Centre has fourcore teams focusing on scenarios, the global agenda,economics and competitiveness, and global challenges.

Communications – The Communications departmentconsists of three teams, focusing on the Forum’swebsite, publications and media relations. The threeteams work together to publicize the Forum’s work andto explain to both members and non-members how wedeliver on our mission.

Events and Resources Management – Each year the World Economic Forum brings together thousands of decision-makers in meetings and regional events to address the most crucial issues facing mankind. To maintain quality and effectiveness our participantshave come to expect, our experts in event management,IT, human resources, accounting, controlling, security,operations and general services work closely throughoutthe year. Their unique knowledge and experience resultin the delivery of these high-calibre events.


38 | The Forum community

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

231The World Economic Forum employs

peoplefrom 43 nations


Our peopleThe skills, knowledge and dedication of our people atthe Forum are essential to fulfilling our mission. This year,we recruited a number of new people, thus expandingand reinforcing our skills base to better support ourmembers. Notable among these recruits were the 47Global Leadership Fellows who contributed to a verysuccessful first year for our Global Leadership Programme.

Our total headcount is now 231, compared to 192 theprevious year. Reflecting our diverse, multistakeholderfocus, our people are drawn from 43 countries, and two-thirds are women. Forum employees remain highlyskilled, with 83% being graduates and 7% holding aPhD. Their learning and experience are complemented by their youth, with the median age being 35 years old.

The Forum was delighted to be one of the first threebodies ever to receive a ‘Label for Corporate SocialResponsibility’, from the Swiss social responsibility group ‘Stiftung sozialverantwortliche Wirtschaft’ (SWW:Foundation for a Socially Responsible Economy). Theprize is awarded to organizations that take theirresponsibility towards employees, customers and thecommunity seriously. Qualifying criteria include equalopportunities and family-friendly policies, motivation and participation, health and accident prevention, andtraining and further education.

The Forumcommunity

NationalityAmerican 28Argentinian 1Australian 5Belgian 3Bolivian 1Brazilian 2British 18Canadian 7Chilean 1Chinese 4Danish 2Dutch 8Egyptian 1Ethiopian 1Finnish 1French 21German 15Guatemalan 1Hungarian 1Indian 5Irish 2Italian 14

NationalityJapanese 2Kenyan 1Latvian 1Lebanese 3Mexican 2Moroccan 3New Zealander 1Nigerian 1Pakistani 2Polish 3Romanian 2Russian 3Singaporean 1Slovak 1South African 4Spanish 4Sri Lankan 1Swedish 5Swiss 51Thai 1Tunisian 1Grand Total 231

The Forum community | 39


40 | The Forum community

Chairman’s OfficeKlaus Schwab, ExecutiveChairman. Claudia Gonzalez,Fiona Paua, StéphanieNassenstein, RegulaWaltenspuel, Maryse Zwick

Centre for Global IndustriesJean-Pierre Rosso,Chairman. Stefano Ammirati,Delphine Angelloz-Nicoud,Roy Antink, Sandra Bétemps,Théa Chiesa, Séverine Currit,Louise Dearnley, SeanDoherty, Melanie Duval,Cristiana Falcone, ChristophFrei, Nadia Guillot Socquet,Helena Leurent, CorettaMagongoa, Yasmina Makar,Marcello Mastioni, HeidiMorgan, Simon Mulcahy,Arseni Panov, Wouter SavrijDroste, Preeti Sinha, MarthaStack, Max von Bismarck,Silvia von Gunten, Alex Wong

PartnershipDavid Aikman, Director,Head of Partnership.Valérie Aillaud, MireilleBertolini Cabezas, ChrisCooper, Susanne Helmsley,Anna Janczak, JonathanQuigley, Elena Smirnova,Jessica Thyssen

Regional Agenda teamsPeter Torreele, ManagingDirector. Haiko Alfeld,Mercedes Aubert, YemiBabington-Ashaye, ThomasBerglund, Helen Besson,Søren Bested, Shruti Bhatia,Els Boekhoudt, NadiaBoulifa, Fabienne Chanavat,Daniel Davies, Yvonne Diallo,Sherif El Diwany, Diana El-Azar, Anne Catherine GayDes Combes, Serge Guex,Felix Howald, Lee Howell,Julianne Jammers,

Jeremy Jurgens, BéatriceLaenzlinger, Kate Lau, Yu Liu, Giuseppe Lorio,Macha Levinson, EmilioLozoya, Dezhi Ma, Colette Mathur, Amal Mbarki,Grant McKibbin, KazumiOkura, Satya Rajan, SushantRao, Lucien Rieben, MelanieRogers, Karim Sehnaoui,Benita Sirone, LoganStanton, Uschi Trouilhet,Akira Tsuchiya, MarikaVolosin, Carolina Windmeijer,Li Zhang

Governments andStakeholders, InitiativesRick Samans, ManagingDirector. Saman Ahsan,Sandra Costa-Marini, LaurenJohnston,Carina Larsfälten,Samuel Mbugua, ChristopheWeber, Saadia Zahidi

Centre for Public-PrivatePartnershipRick Samans, ManagingDirector. Pratik Bhatnagar,Francesca Boldrini, FrançoisBonnici, Elizabeth Dreier,Brindusa Fidanza, EmmaJupp, David Kim, RandallKrantz, Jason Liu, ShrutiMehrotra, Tanya Mounier,Alex Mung, Pan Pan, HalaShash, Paul Smyke,Clementina Todor, ChrisTrimble, Dominic Waughray,Valerie Weinzierl

Strategic Insight teamsGed Davis, ManagingDirector. Laura Altinger, SvenBehrendt, Jennifer Blanke,Nathalie Cerutti, MargaretaDrzeniek, Charles Emmerson,Julio Estrada, JesseFahnestock, Ilaria Frau,Thierry Geiger, Paola Hjelt,Stéphanie Janet, Alia

Karaouni, Dimitry Leger,Emma Loades, AugustoLopez-Claros, ThierryMalleret, Vladimir Merkushev,Irene Mia, Kathi Milligan,Sandrine Perrollaz, MichelePetochi, Marie-France Roger,Sarah Saffar, JonathanSchmidt, Vidhi Tambiah,Sheana Tambourgi, Alexandervan de Putte, Kristel van derElst, Deming Zhu

LeadershipMicky Obermayer,Managing Director & Dean,Global Leadership FellowProgramme. David Heng,Juraj Ondrejkovic

Chief Operating Officer’s Office, Events andResources ManagementAndré Schneider, ManagingDirector & Chief OperatingOfficer. Chantal Adamson,Georges Aeschlimann, AnnaAndersson Plusa, HelenaBaars, Guy-Serge Baer,Virginie Bays, GrégoryBernarda, Kuki Bindanda,Monika Boerlin, NadineBonard, Doris Borchardt,Denise Burnet, SebastianBustos, Nancy Chazal,Raymonde Christmann,Antonio Corrales Rodriguez,Steve Crettenand, RomainCrevoisier, Irène Croisier-Rapin, Oliver Cusworth,Stéphanie Danhier, Laura deWolf, Jean-Loup Denereaz,Laurent Desnoux, SamanthaDimeck, Maggie Fliege, SusiFranceschi, FlorianeFreymond, Yannick Fuentes,Agnès Gabirout, MalteGodbersen, Karine Guitton,Elly Hammar, Janet Hill,Nour-Eddine Iguimdrane,George Jacovides,

Mirjam Kleinheerenbrink,Carine Kulloian, GeorgeKumpera, Dan Lambert, LuisLandrove, Fabien Limousy,Sophie Lux, Samira Mandil,Martine Michaud, AnnabellMolnar, Anouk Pache,Vimesh Patel, AnnemariePeter, Eddie Quintanella,Sarah-Jane Rossoni, PetraRuiz, Mehr Ruiz-Faizi, VincentSchertenleib, AngelaScioscia, Christel Sutherland,Paula Verholen

Communications & MediaRelationsMark Adams, Director,Head of Communications.Nina Joyce, Kamal Kimaoui, Matthias Lüfkens, FonMathuros, Désirée Mohindra,Tillia Peitrequin, LaurentSfumat, Fabienne Stassen,Samantha Tonkin, IsabelleTornare, Nancy Tranchet,Yann Zopf

Schwab FoundationPamela Hartigan, ManagingDirector. Maria Hermoso,Sandor Nagy, MirjamSchoening

Young Global LeadersNicole Schwab Sanchez,Director, Head of YoungGlobal Leaders. MartinaGmür, Francesca Martonffy,Rosanna Mastrogiacomo,Magdalena Thurig


In late 2005, the World Economic Forum formallyexpanded into North America with the creation of itsfirst overseas affiliate, the World Economic ForumUSA Inc. In April 2006, the Forum USA opened itsNew York office to house the new Centre for GlobalIndustries and act as the global headquarters forindustry-based activities of the Forum and the ForumUSA. By July 2006, five industry sectors of the Centrefor Global Industries have moved from Geneva toNew York: banking, insurance, investors, diversifiedfinancials and healthcare.

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

The Forum USA ia a non-profit corporation formed underUS (Delaware) law, with a separate board of directorsand officers, which is intended to be exempt from USincome tax as a business league under section 501(c)(6)of the Internal Revenue Code. The Forum USA and theWorld Economic Forum are linked by a formal affiliationagreement and a shared mission to engage leaders inimproving the state of the world.

The Board of the World Economic Forum USA Inc. comprises:• Jean-Pierre Rosso (Chairman)• Alfred Berkeley• Bill George • Rajat Gupta• Joe Schoendorf• Kevin Steinberg (Secretary)

As from 1July 2006, the officers and employees of the World Economic Forum USA Inc. included:Jean-Pierre Rosso, Chairman.Kevin Steinberg, Chief Operating Officer; Alain Baumann;Josh Bell; Giancarlo Bruno; Julian Jaeger; Kerry Jaggi;Jane Lence; Viraj Mehta; Michael Seo.

World Economic Forum USA | 41

World EconomicForum USA

The World Economic Forum USA celebrated its officialopening by ringing the Nasdaq closing bell


42 | Our financial results

Our financial resultsOur financial resultsIn 2005/2006, we achieved strong financial results asincome from all our initiatives and activities continued to grow. We did not touch our reserve funds during theyear, despite investing a significant sum into the launchof our Industry Partner Programme and the GlobalLeadership Fellows. Among the most notable revenuedrivers was the growing number of Forum memberschoosing to become partners and participating in ouractivities. In total, this trend added Sfr. 2,030,965 to ourreserves. This figure was also due to cost efficiencies weachieved during the year. In finance, as throughout ourorganization, we aim for excellence. During the year,we took steps to make our approach compliant with US GAAP, pursued best practice across our processesand improved our internal reporting methods.

Financial policyThe World Economic Forum’s financial policy states thatmembership fees in principle should cover operationalcosts, that events are funded through cost contributionsand that projects are supported by income frompartnership contracts. The Forum may accept grants,donations, legacies and other contributions or subsidiesthat are consistent with its purpose of ‘integratingleaders from business, politics and society at large into acommunity for global action committed to improving thestate of the world and the well-being and prosperity ofhuman society’. The World Economic Forum makes nopayments to political personalities, parties or otherorganizations and avoids involvement in national politics.

AuditorsThe World Economic Forum’s financial results are auditedby PricewaterhouseCoopers, who examine the balancesheet and accounts. The annual report, as well as allinstitutional documents, are submitted to the SwissFederal Government, which by law acts as thesupervisory body for the Foundation.


Our financial results | 43

Year 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006

Total income* 72,195,453 66,454,727 74,058,911 83,336,839 104,766,543out of which

members’ fees 24,965,367 25,530,325 25,137,257 26,546,382 26,410,294participation fees 26,972,981 21,465,398 20,543,108 20,824,213 27,063,138partnership 18,946,940 17,390,452 24,552,385 31,035,927 44,668,943

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

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

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

Total staffFull time 139 130 134 162 204out of which secondedby Forum members 4 4 5 5 7Part time 28 28 28 31 25

* all key figures in Swiss francs


44 | Our mission and values

The World Economic Forum is an independentinternational organization committed to improvingthe state of the world by engaging leaders inpartnerships to shape global, regional and industry agendas.

Incorporated by Professor Klaus Schwab as a foundationin 1971, and based in Geneva, Switzerland, the WorldEconomic Forum is impartial and not-for-profit; it is tiedto no political, partisan or national interests.

Our culture combines the best elements ofentrepreneurship with those of public service. Thus, ourmotto is ‘entrepreneurship in the global public interest’.

We cultivate public trust by never compromising ourinstitutional integrity. We constantly strive to win therespect of our members and constituents by ensuringeverything we undertake is ‘first in class’. We can serveour communities best by making ourselves a role modelfor a highly interactive, open and fast learning community.

Our mission is best realized through activities whichpromote economic and social development. We believethat economic progress without social development isnot sustainable, while social development withouteconomic progress is not feasible.

In addition to convening world leaders, the Forum aimsto involve them in living communities of common interestand purpose. The Forum ensures substance in the formof strategic insights and, where relevant, platforms forjoint action. To carry out its mission, the World EconomicForum has developed an integrated value chain byinvolving world leaders in communities, inspiring them withstrategic insights and enabling them through initiatives.

Our vision for the World Economic Forum is threefold. To be:• The foremost organization which builds and energizes

leading global communities• The creative force shaping global, regional and industry

strategies for its communities• The catalyst of choice for its communities when

undertaking global initiatives to improve the state of the world

The World Economic Forum enjoys unique globalpositioning by recognizing and responding to two developments:• The world’s key challenges cannot be met by

governments, business or civil society alone.• In a world characterized by complexity, fragility and

ever-greater synchronicity, strategic insights cannot be passively acquired. They are best developedthrough continuous interaction with peers and with the most knowledgeable people in the field (learning communities).

For more information see www.weforum.org

Our mission and values


Matthieu Ricard (Co-Director, Shechen Monastery, Nepal) being embraced by Awraham Soetendorp (Rabbi, Jewish Institute forHuman Values, Netherlands), Hany el Banna (President, Islamic Relief, United Kingdom) and Madhi Bray (Executive Director,Muslim American Society (MAS) Freedom Foundation, USA)


Annual Report 2005/06

World Economic Forum91- 93 route de la CapiteCH – 1223 Cologny/GenevaSwitzerlandTel +41 (0) 22 869 1212Fax +41 (0) 22 786 2744E-mail [email protected]

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

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