Professional Documents
Culture Documents
Contents
The Executive Chairman’s statement 2
Annual Meeting 4
Our people 26
Our organization 28
Pictured on the cover from top left are: Supachai Panitchpakdi, Director-General of the World Trade Organization;
Luiz Inácio Lula da Silva, President of Brazil; King Abdullah II of Jordan, and US Secretary of State Colin Powell
1
The Executive Chairman’s statement
Building trust,
peace and
reconciliation
2002/2003 was another challenging year for the Extraordinary Annual Meeting in Jordan, in June
international community, as war in Iraq, instability 2003, proved this truth once again.
in the Middle East region and financial volatility
continued to threaten global stability. Against this The Extraordinary Annual Meeting provided a timely
troubled background, the members, partners opportunity for world leaders to come together and
and staff of the World Economic Forum worked progress towards reconciliation and reconstruction,
hard towards our goal of improving the state of in the immediate aftermath of the Iraq war.
the world.
As is customary with World Economic Forum events,
The Annual Meeting 2003, which returned to the Extraordinary Annual Meeting established
Davos after the 2002 sojourn in New York, again relationships and communication channels that will
demonstrated how the World Economic Forum endure far beyond the meeting room. In particular,
acts as a platform for addressing challenging ideas the establishment of the Arab Business Council
and as a prompt to delivering timely approaches created an important forum for a community
to major global issues. destined to play an integral part in shaping the future
prosperity and security of the Middle East.
Significant outcomes included:
• The launch of the World Economic Forum Global Such Extraordinary Annual Meeting milestones,
Governance Initiative to evaluate progress towards along with those achieved at the Annual Meeting
the UN Millennium Declaration goals 2003 and our regional summits, emphasized
• The news that US company, Pharmacia the continuing relevance of the World Economic
Corporation, was to expand access to drugs for Forum in addressing complex issues faced by
the world’s poorest people, particularly in regard the global community.
to HIV/AIDS medication
• The announcement by the Bill and Melinda Gates Our summits are just one of the ways we deliver
Foundation of a US$ 200 million donation to value to the senior business leaders that constitute
establish the Grand Challenges in Global Health our membership. In 2002/03, we continued to offer
Initiative, to research diseases that are a particular structured assistance to help CEOs excel across
blight to the developing world their key fields of responsibility. For instance, our
internal team, supported by industry and academic
In today’s increasingly complex and interlinked experts, provided dedicated support in such areas
world, global leaders can only resolve major issues as crisis management, corporate citizenship, global
and gain strategic understanding by working competitiveness and motivational techniques.
together. The World Economic Forum’s
2
His Majesty King Abdullah II of Jordan, left, and Kofi Annan,
Secretary-General of the UN, centre, with Klaus Schwab
It is testimony to the value we provide to our In particular, we will continue to provide strategic
members that, during the year, additional key advantage, by virtue of our role as one of the
members signalled their greater commitment world’s leading strategic insight bodies.
to the World Economic Forum by becoming
strategic partners. Our determination to increase the value we provide
is all part of our commitment to improving the state
The World Economic Forum enhanced its of the world. We believe this will be best achieved
credibility as an initiator of private-public through activities which promote economic and
partnerships with the August 2003 appointment social development: a path that requires the active
of Philippe Bourguignon to the Managing Board. collaboration of all stakeholders in society. Having
Philippe, whose previous roles included being built a unique position of trust, over three decades,
chairman and CEO of both Club Méditerranée and at the heart of the world’s leadership communities,
Euro Disney, brings huge international experience we believe we are in the best position to bring
in corporate development. these stakeholders closer together, both
intellectually and geographically. We owe it to
Our finances remained stable during the year, our members – and the wider world – to continue
despite the effect of a tough economic climate finding better and better ways of doing just that.
on our members. In the year, our income dropped
by 8% to Sfr. 66,454,727, largely reflecting the With the Forum so firmly at the centre of world
return to more customary levels of participation in events, it gives me great pleasure to report that
the Annual Meeting, after the hugely increased the Foundation Board has entrusted me to build
number of participants in New York. further on our success and to use the next five
years to transform the Forum into the leading
To ensure that the World Economic Forum remains organization dealing with the challenges of the
a sustainable and unique organization for its 21st century.
members, in 2002/2003, the Managing and
Foundation Boards invested a significant amount
of time determining how the organization could
improve its services. The resulting strategic plan
will be outlined during the next 12 months.
www.weforum.org
3
Annual Meeting,
back in Davos
4
Luiz Inácio Lula da Silva, President of Brazil, addresses Irene Khan, Secretary-General, Amnesty International, UK,
Annual Meeting participants during a discussion on identifying priorities
34 religious leaders, 72 NGO representatives, “We need a global development strategy that
172 academic experts, 226 public figures and 268 integrates competition and efficiency with
leading editors. For the first time the media group equality of opportunities and solidarity. We need,
included famous editorial cartoonists whose piercing and we must link together, economic and social
art has a significant effect on public opinion. policies,” he said.
The crisis in Iraq dominated much of the “It is vital that we build a world economic order that can
discussion and eventually led to the convening
of the Extraordinary Annual Meeting in Jordan. satisfy the yearnings of those billions of people who are
Post-war reconstruction in Afghanistan was
also high on the agenda, with the participation
today excluded from the extraordinary scientific and
of Abdullah Abdullah, Afghan Minister of
technological advances that mankind has achieved.”
Foreign Affairs.
President Luiz Inácio Lula da Silva of Brazil, at the Annual Meeting 2003
The presence in Davos of a US delegation led
by Secretary of State Colin Powell and leading In the global corporate arena, trust in large
representatives from the Middle East was a clear companies has been severely eroded by recent
demonstration of the World Economic Forum’s corporate scandals. During the Annual Meeting
unique ability to bring leaders together to seek the results of a survey of signatories of the Joint
alternative solutions to global problems. CEO Statement on Corporate Citizenship,
launched in New York in 2002, were unveiled.
While the Middle East was a major topic, the
Annual Meeting was a focal point for discussions The results revealed a shift in corporate behaviour,
on the challenges facing the emerging regional with many companies seeking to further integrate
powers. New Brazilian president Luiz Inácio Lula ethical behaviour into their business practices.
da Silva spoke for many developing nations when The survey of CEOs from 16 countries and 18
he called for international trade agreements to give industry sectors also found that many companies
them greater access to developed markets. have now established board-level committees to
lead their corporate citizenship strategies.
From among a strong South American group,
www.weforum.org
5
Annual Meeting
While the Annual Meeting was once again a • The Bill and Melinda Gates Foundation
catalyst for discussion, it also provided the announced a US$ 200 million grant to establish
launching pad for significant practical actions the Grand Challenges in Global Health Initiative,
to tackle global issues: a partnership with the US National Institutes of
Health. The grant will increase research into
diseases that cause millions of deaths in the
• The World Economic Forum launched the Global
developing world
Governance Initiative to evaluate progress in the
global effort to implement the ambitious
economic, social and environmental goals set • As part of efforts to improve economic and
out in the United Nations Millennium Declaration social prospects in Africa, more than 50
companies operating in the region signed
“Social and economic Darwinism destroys trust in covenants pledging to follow good corporate
governance and promote ethical practices
one another and demoralizes society. The long fight
• Religious leaders from different faiths shared
for individual freedoms has ultimately resulted in a messages of tolerance during a session on
coexistence. They agreed that there is no
boundless egoism.” intrinsic reason for people of different religions
to be in conflict
Pascal Couchepin, President of the Swiss Confederation,
6
The World Economic Forum continues to seek dialogue with
responsible anti-globalization groups. These anti-globalization
demonstrators expressed their views outside the Annual Meeting 2003
Open Forum Davos 2003 The staging of the Open Forum Davos reflected
a desire to make a ‘living bridge’ between the
Thousands of Davos citizens participated in the first main Annual Meeting, critical NGOs and the
ever series of World Economic Forum public debates. local community, as a means of making the
World Economic Forum’s mission more accessible
The inaugural Open Forum Davos ran alongside and transparent.
the Annual Meeting 2003. It was co-organized
by the World Economic Forum and civic society Two peaceful demonstrations, by members of the
groups, including churches, fair trade organizations Open Forum Davos audience, occurred during the
and the Swiss Red Cross. course of the programme. One group staged
a silent protest, with placards, against globalization
The programme of seven debates provided and the role of multinational companies, while the
an open platform for frank discussion around second group read out a critical statement during
challenging aspects of globalization, with topics a debate on migration.
ranging from ‘Can Globalization be Ethical?’
to ‘Are Children’s Rights Merely for Show?’ The Open Forum Davos is set to become a regular
feature of the Annual Meeting, with next year’s
The free debates were attended by more than debates being around the theme of Globalization
2,000 people, including local schoolchildren, and Deglobalization for the Benefit of the Poorest.
participating as part of their civic education
syllabus. The sessions, which took place in
a Davos school hall, were held in German
and French, with simultaneous translation.
7
Extraordinary
Annual Meeting
in Jordan
Salam Fayyad, Minister of Finance of the Palestinian Authority, listens Jordan was chosen to host the event because of
to the speech of Shimon Peres (on screen), former Prime Minister of
Israel, during the session 'Israel-Palestine: A Vision for the Future’ its location in the heart of the Middle East and its
reputation as a regional leader in political and social
reform. It has a peace treaty with Israel and maintains
Extraordinary Annual Meeting participants friendly relations with its neighbours. This made it the
ideal location for leaders to come together to seek
Religious leaders NGOs solutions to tense issues such as the future of Iraq,
Global Leaders for Tomorrow Arab-Israeli relations and prospects for democratic
Technology Pioneers
Academia reform and economic development.
Other constituents
Media Despite being arranged in just eight weeks, the
Fellows/ Extraordinary Annual Meeting created political
Leaders
momentum for change. Among the practical steps
Business taken was the decision to create the Council of 100
Leaders, composed of senior business, religious,
Public figures political, media and opinion leaders from the West and
the Islamic world who are dedicated to strengthening
ties and understanding between the two societies.
8
Andrew Natsios, left, Administrator, US Agency for International The Quartet: Kofi Annan, UN Secretary-General; Colin Powell, US
Development, and the late Sergio Vieira de Mello, Special Secretary of State; Igor Ivanov, Minister of Foreign Affairs, Russian
Representative of the UN Secretary-General Federation, and EU High Representative Javier Solana Madariaga
Another significant development was the launch The summit also provided a platform for the foreign
of a US-Middle East Free Trade Area, a region- ministers of Israel, the Palestinian Authority, Jordan
wide agreement to open trade both with the US and Egypt to present their visions for the future of
and between Arab nations. the region.
Building on the participation of a strong Arab “The summit demonstrated that the effort to build
presence at the Annual Meeting in Davos,
a better world must begin with a joint endeavour to
the Arab Business Council was launched to
proactively support responsible reform and more redefine the values that we share. As was discussed
liberal economic policies.
during the summit, peace is paramount to business
The World Economic Forum believes such initiatives
are needed to begin to address the economic in the region and business is paramount to peace.”
challenges that are currently facing the region.
Kofi Annan, UN Secretary-General, following the Extraordinary Annual Meeting
Despite economic growth, incomes have stagnated
following a rapid increase in the population. The
region missed out on the boom in foreign direct Although many obstacles to peace and prosperity
investment (FDI) in the 1990s and now only remain, the Extraordinary Annual Meeting provided
accounts for 1% of FDI. Such factors now threaten a unique platform for leaders from across the
prospects for improved social welfare. region and the world to discuss their differences
and, following the disruption of the Iraqi war, to
To reinforce efforts to achieve a lasting peace begin planning a more prosperous and secure
between Israel and Palestine, attempts were made future for the Middle East.
to broaden support for the Roadmap for
Peace, that had earlier been endorsed by the For more about the Extraordinary Annual Meeting
Quartet of the US, European Union, Russia and visit www.weforum.org/annualmeetingjordan
the United Nations.
www.weforum.org
9
South African President Thabo Mbeki, right, listens to the Chief Executive Officer of
Ashanti Goldfields, Sam Jonah, during the last plenary session of the Africa Economic
Summit in June 2003, in Durban.
10
The regional agenda
Encouraging
economic
and social
development
Our regional agenda focuses on high priority issues manufacturing industries, financial services, energy
relevant to members operating around the world. and geopolitics. It identified the challenges that the
In close cooperation with our regional partners, nation must overcome to succeed. The India
we continued to pursue a programme to encourage Advisory Council continued to promote the
each region’s economic and social development. achievements and progress made in the country.
Its enlargement to include non-Indian members,
In 2002/2003, the World Economic Forum summits including European, American and Chinese leaders,
in Europe, the Middle East, Africa, East Asia and Latin has increased the council’s global influence. For
America brought together thousands of leaders to further information, visit www.weforum.org/india
define, discuss and advance the key issues in their
regions. We also convened specific country-related “I believe Asia’s future rests upon its ability to harmonize the
meetings in Brazil and India.
region’s diversified characteristics and to develop a sense of
Asia Pacific and China unity and, at the same time, a sense of interdependence.”
Our East Asia Economic Summit 2002, in Kuala
Lumpur, Malaysia was a launch pad for dialogue, Thaksin Shinwatra, Prime Minister of Thailand, East Asia Economic Summit
initiatives and commitments on key issues facing
the region. The summit’s themes included business In 2002/2003, China remained one of the world’s most
challenges, competitiveness, diversity, regional impressive economic performers, enjoying sustained
integration, governance and growth. See growth, improved competitiveness and a steady
www.weforum.org/eastasia increase in foreign direct investment. However,
economic activity in the Asia Pacific and China region
To further address the challenges posed in the future was severely disrupted by uncertainty surrounding the
by the increasingly complex nature of Asian business spread of Severe Acute Respiratory Syndrome (SARS),
and diplomacy the summit saw the launch of a which also had the effect of forcing us to postpone our
community of New Asian Leaders. This group of China Business Summit.
outstanding young leaders from business, government,
civil society and academia are committed to economic In Japan, deflation remained a major problem and
and social development in the region. At a retreat in the country continued to struggle with the challenges
Seoul in 2003 the New Asian Leaders met to review of globalization. The Japanese sub-group of the New
www.weforum.org
their ‘Blueprints for a New Asia’ and discussed their Asian Leaders presented their blueprint for change
plans with Korean President Roh Moo-Hyun. at the Annual Meeting 2003. Their suggestions
included the deregulation of unproductive industries
The India Economic Summit 2002 focused on to improve competitiveness.
economic reforms, trade and investment,
11
The regional agenda
Africa and the Middle East To improve the competitiveness of Arab nations and to
The World Economic Forum continued to play a key build a broad-based tier with the West, the
role in building business support for the New Extraordinary Annual Meeting in Jordan became the
Partnership for Africa’s Development (NEPAD), and launch pad for the creation of the Arab Business
its alignment of politicians, business and civil society Council and the Council of 100 Leaders.
behind an ambitious economic and social
development programme. Despite such efforts, the difficulties in the region were
further highlighted in August 2003 when a car bomb
“A lot of the world is sceptical about us, believing that attack on the UN headquarters in Baghdad killed 22
people. In a tremendous loss, Sergio Vieira de Mello,
we Africans are not serious about ourselves. We have
a participant in the Extraordinary Annual Meeting and
to prove that the will to implement the NEPAD is there.” special representative of the United Nations Secretary-
General in Iraq, was killed in the explosion.
Thabo Mbeki, President of South Africa, Africa Economic Summit 2003
Europe
The NEPAD’s first projects included the E-Schools At both the European Economic Summit in
Initiative, which was launched at the Africa Economic Salzburg and our Annual Meeting in Davos we
Summit in Durban with the aim of giving the continent’s brought together leaders from business, politics
children the skills they need to prosper in today’s and civil society from the European Union and the
information society. See www.weforum.org/africa accession countries to discuss the challenges for
the enlarged region. They focused on integrating such
The Durban Summit also saw the launch of a drug emerging regions as South East Europe into
development collaboration between the Medicines mainstream economic activity. To support this goal we
for Malaria Venture and GlaxoSmithKline, while the convened our first South-East Europe Meeting in
Global Alliance for Improved Nutrition announced plans Athens. Around 300 business and political leaders
to bring food fortified with vitamins and minerals to from 31 countries, including seven heads of state,
some developing countries. There was a further participated. We also sought to involve Russia in the
encouraging development at the Annual Meeting in future of Europe, promoting dialogue between Russian
Davos when 50 companies operating in Africa pledged and European leaders.
to follow good corporate governance and promote
ethical business practices. 2002/2003 was also notable for strengthening links
between Turkey and the World Economic Forum.
Against a background of war in Iraq and continued A large delegation took part in the Annual Meeting
tension between Israel and the Palestinians, the 2003, including the then prime minister Abdullah Gul
World Economic Forum continued to seek solutions and Recep Tayyip Erdogan, Chairman of the AK Parti,
to the region’s social and economic challenges. The who later went on to become prime minister. Turkey
World Economic Forum’s 2002/2003 Arab World was also represented at ministerial level at the
Competitiveness Report revealed that growth South-East Europe Meeting.
had stagnated since the 1980s. Noting the
implications of the steep rise in population, the report North America
stressed the need for job creation and improved The US economy remained the main engine for
education systems. global economic growth driven by innovative
technology, as explored in the World Economic
We held the first Arab World Competitiveness Forum 2002/2003 Global Competitiveness
Meeting in Geneva in September 2002. Over 250 Report. At the same time that the Iraq war caused
business and political leaders from the region, as well tension around the world, the World Economic Forum
as selected multinational corporations and international provided a vital platform for engagement with the US
organizations, took part. During the event, Arab administration, enabling global leaders to share a
business leaders pledged 20% of their corporate frank exchange of views on the conflict and on social
citizenship or philanthropy budgets to projects aimed and economic issues.
at bridging the digital divide between the region and
the world’s most developed nations.
12
The US demonstrated its commitment to continuing Following the election of Luiz Inácio Lula da Silva as
dialogue on both security and the economy at the President of Brazil, the World Economic Forum
Annual Meeting, when Secretary of State Colin Powell focused on the challenges facing the country. The
led a delegation that included five senior members of Brazil Competitiveness Meeting in São Paulo,
the administration, among whom was John Ashcroft, in June 2003, provided business and other leaders
Attorney-General, US Department of Justice. At the with an opportunity to meet the new Brazilian
Extraordinary Annual Meeting in Jordan, Secretary of Government, to assess the main economic and
State Powell was joined by US trade representative social challenges and to develop strategies to
Robert Zoellick. improve competitiveness. The meeting produced
recommendations for the country in the key areas
The profile of the World Economic Forum remained of macroeconomic policies, governance, the legal
high in the US following our decision to hold the framework, and technology and innovation.
Annual Meeting 2002 in New York. The success of
the Extraordinary Annual Meeting further reinforced We continued to expand our engagement with leaders
the credibility of our mission with business, in Latin America and for the first time welcomed five
government, civil society and the media. regional heads of state to the Annual Meeting 2003 in
Davos: Eduardo Duhalde, President of Argentina;
Latin America Vicente Fox, President of Mexico; Luiz Inácio Lula da
At the Latin America Business Summit in Rio Silva, President of Brazil; Alvaro Uribe, President of
de Janeiro in November 2002, 400 participants from Colombia and Alejandro Toledo, President of Peru.
business, civil society, academia and government
made key policy recommendations on how Latin For more information on Latin America, see
America could return to growth. www.weforum.org/latinamerica
that the process of European reintegration presents 12 March 2003. Balkan leaders pledged to keep his
an opportunity for the region to build a common future spirit and vision alive. Zoran Zivkovic, Prime Minister
– although this depends on regional cooperation of Serbia, said that Mr Djindjic had laid the foundations
underpinned by international support. A session of many institutions and his European vision would be
entitled ‘How can the region catch up?’ suggested realized after his death.
13
Elderly people are leading longer, healthier and more fulfilled lives, with many choosing to
study in their later years. But, as a growing number of citizens enter their third age, who will
fund their retirement? The World Economic Forum’s Pension Systems Readiness Initiative is
assessing how well OECD countries will cope with their ageing populations.
14
Task forces and initiatives
An integrated
approach
to global
challenges
The Pension Systems Readiness Initiative brings The Global Health Initiative is a collaboration
together leaders from the financial services and between the World Economic Forum’s member
employment sectors and other interested bodies, companies, such key United Nations agencies
such as senior citizen groups, labour unions and as the Joint United Nations Programme on
governments. As a first step, they will compile HIV/AIDS (UNAIDS), and the World Health
extensive cross-country information to assess Organization’s (WHO) Stop Tuberculosis and Roll
the readiness of Organization for Economic Back Malaria programmes.
Cooperation and Development (OECD) countries
to face the reality of ageing populations and the
pressure this will place on their pension systems,
economies and future generations. It is intended
that this analytical tool will shed light on the
www.weforum.org
15
Task forces and initiatives
The initiative coordinates the private sector In 2003/2004 the Global Health Initiative will
interaction with the Board of the Global Fund to seek to increase private sector involvement
Fight AIDS, Tuberculosis and Malaria, working to at country-level, complementing such global
increase private sector engagement in these programmes as the US Presidential Emergency
public-private partnerships. It seeks to: Plan for AIDS Relief and the WHO strategy to
• Develop tools for businesses to promote ensure three million people have access to
good policy and practices within workforces retroviral drugs by 2005. For further information,
and communities see www.weforum.org/globalhealth
• Foster partnerships to develop policies and
programmes E-learning Initiative
• Expand corporate advocacy The Jordan Education Initiative is an e-learning pilot
project, involving the national government and
In 2002/2003, we expanded Global Health Initiative World Economic Forum member companies, that
activities in individual countries, linking companies aims to deliver e-learning to Jordanian citizens. It
with each other, with non-governmental brings together leaders from the information
organizations and with governments in the worst technology and telecommunications industries to
affected nations. improve education in the kingdom.
Companies began to play a greater part in the The project provides young people with an
fight against the diseases, developing infrastructure environment that enables them to pursue
and introducing education for their employees, their goals through a process of learning and
much of which can be expanded to include entire self-determination.
communities. Through the efforts of many
companies, hundreds of thousands of people now Ninety-six schools are piloting the project in
have access to life-saving medicines and care. Jordan. They will serve as a test bed of how
information and communications technology can
“We must not only increase public awareness about the benefit schools and their pupils. Though focused
on developing education, the plan also offers an
challenges the world is facing in relation to water, but we
opportunity to develop the local information
must also change the way the water issue is perceived: technology industry.
from being a driver of conflict to being a catalyst The initiative supports the government vision of
building a knowledge economy by providing lifelong
for collaboration.” learning opportunities for all its citizens. For further
information on the E-learning Initiative, see
Klaus Töpfer, Executive Director, United Nations Environment Programme,
www.weforum.org
at the launch of the World Economic Forum Water Initiative, June 2003
Water Initiative
Achievements of the initiative in 2002/2003 Ensuring water resources are managed effectively
included: is one of the key global challenges. In 2003, the
• Working with the World Bank and UNAIDS to World Economic Forum, in association with the
bring businesses from 15 countries, with high United Nations Environment Programme (UNEP),
rates of HIV, together in Zambia to share launched the Water Initiative to improve the
corporate best practice in tackling AIDS quality and quantity of water for both businesses
and communities.
• Publishing workplace guidelines on dealing with
tuberculosis in partnership with the WHO and Initiative members include leading businesses, non-
International Labour Organization. These governmental organizations and governments who
guidelines seek to help companies tackle the seek to share best practice and create partnerships
disease and are available online at for the management of water and watersheds (that
www.weforum.org/globalhealth is, the area that drains to a common waterway,
such as a lake, estuary or ocean).
16
The Water Initiative aims to encourage private The initiative involves partners from the business
sector participation in the maintenance of and environmental arenas, including WWF (the
watersheds and to put water management at the World Wildlife Fund), World Resources Institute,
forefront of economic development. It will serve as Pew Center on Global Climate Change, World
an incubator for public-private partnerships that Business Council on Sustainable Development,
address the importance of watershed World Energy Council, the International Emissions
management, both for business needs and the Trading Association and BrasilConnects. For further
environment. The initiative will also contribute to a information on the Global Greenhouse Gas Register
better understanding of how to structure the costs Initiative, see www.weforum.org/ghg
of environmental services, and establish and
promote best practice in the management of Global Governance Initiative
watersheds. For more information, see The World Economic Forum launched a Global
www.weforum.org/water Governance Initiative at the Annual Meeting 2003,
to monitor progress towards the ambitious
Global Greenhouse Gas Register economic, social and environmental goals of the
In consultation with companies, environmental United Nations Millennium Declaration.
organizations and governments, the World
Economic Forum launched a multistakeholder The initiative involves seven international groups
partnership to design and operate a global of experts, each dedicated to evaluating the effort
register of voluntary corporate greenhouse gas and cooperation among the key players seeking
reduction targets. By creating a global emission to achieve these goals. Targets set out in the
inventory and register, where data and commitments declaration range from halving the number of
on greenhouse gas emissions can be recorded, we people living in poverty by 2015 to finding ways
seek to encourage more companies to take early to eliminate war and the dangers posed by the
action to measure their emissions and set their own dissemination of weapons of mass destruction.
reduction targets.
17
Task forces and initiatives
The initiative steering committee convened for the The survey, which questioned chief executives
first time during the Annual Meeting and will publish from 18 industry sectors and 16 countries,
its first annual report in 2004. It will assess the showed that companies are treating corporate
steps being taken by governments, civil society, citizenship more strategically than in the past and
the private sector and international organizations are linking it to business practices. It also found
to meet the targets, which have the support of that citizenship strategy is now increasingly driven
189 governments. at board level.
18
Global Competitiveness Programme concludes that Finland is the country most
The Global Competitiveness Programme aims to prepared to capture fully the benefits of the
act as a catalyst for economic policy change, by networked economy.
assisting governments in identifying impediments
to growth and in designing strategies to achieve In 2002/2003, the World Economic Forum published
sustained economic progress. In 2002/2003, we the first Arab World Competitiveness Report. It
published a series of reports and held regional showed how growth in the Middle East has stagnated
and national workshops under the Global since the 1980s and why, despite its natural
Competitiveness Programme umbrella. resources, the region has failed to capture a greater
proportion of international trade and capital flow.
The programme’s flagship publication, the Global
Competitiveness Report, was created by Klaus The competitiveness sessions and workshops
Schwab in 1979. It is the most authoritative and held during the Annual Meeting and the regional
comprehensive assessment of the comparative summits provided an opportunity for leaders from
strengths and weaknesses of national economies. business, government, academia, international
In 2002/2003, the report showed that nations organizations and civil society to debate key
must improve their governance systems if they competitiveness issues, drawing on information
are to remain competitive. from the reports.
However, the programme’s Global Information The World Economic Forum also gave
Technology Report 2002/2003 found that fortunes presentations around the world to research
were reversed in the IT sector where Finland institutes and governments keen to strengthen
ranked first in terms of readiness for the networked their economies. For further information, see
world and the US slipped to second place. It www.weforum.org/gcp
is ready to work with governments to enhance dialogue with governments and business sectors in the
competitiveness in the region, establish constructive US and the European Union.
dialogue with business leaders in the most developed
countries, and integrate the Arab world more effectively
into the global economy.
19
The United States remains the powerhouse of the global economy, according to the
World Economic Forum’s Global Competitiveness Report 2002/2003.
20
Our members and partners
Entrepreneurship
in the global
public interest
The World Economic Forum brings together major Netcom Corporation Ltd, Computerland SA,
businesses to work with all stakeholders in civil Cotecna Inspection SA, Dow Chemical Company,
society to promote economic and social Dubai Development and Investment Authority,
development. Our members and partners represent Empresa Periodistica El Mercurio SAP, Eurazeo,
all sectors and regions of the global community. Exel Plc, Findus AB, Forrester Research Inc.,
France Telecom, Gemplus International SA,
Members Georgetown University, Hellenic
Although our members are drawn from the world’s Telecommunications Organization SA, ICICI Bank
top 1,000 companies, we reserve 35% of places Ltd, Imax Corporation, Industrial and Commercial
for those from the developing world. Our members Bank of China, Ingram Micro Inc., Institute of
help guide our work, and provide financial and International Finance, Invensys Plc, Investissement
in-kind support to develop our activities. They Québec, Italtel SpA, J. & W. Seligman & Co. Inc.,
benefit through their involvement in our events, KT Corporation, La Poste, Lloyd’s of London,
communities and initiatives. Malaysia Airlines, Manugistics Group Inc.,
Millennium Pharmaceuticals Inc., Mohammed
Our members represent a diverse range of Abdulmohsin Al-Kharafi & Sons WLL, Moore
experience and opinions. They come from 25 Capital Management, National Commercial Bank,
different industry sectors and are based in every NetJets, Oil and Natural Gas Corporation Ltd,
part of the world. This is why the World Economic Pacific Basin Economic Council, Petrol Ofisi AS,
Forum is a neutral organization which does not Portugal Telecom SGPS, SA, Quantum
make public statements on behalf of its members. Corporation, Renaissance Re Holdings Ltd, Royal
Jordanian Airlines (ALIA), SAS Institute, Sealed Air
During 2002/2003, the following companies were Corp., Shenzhen Development Bank Co. Ltd,
accepted as members of the World Economic Forum: Siemens Corporation, Silver Lake Partners, Star
Activision Inc., AEA Investors Inc., Aegis Group Group Ltd, Supreme Economic Council, Taiwan
Plc, African Rainbow Minerals Gold (ARMgold), Power Company, Telecom Italia Mobile (TIM) SpA,
Akin, Gump, Strauss, Hauer & Feld LLP, Alshaya The Bear Stearns Companies Inc., The
Group, An-Nahar Group, Autostrade SpA, Banca Shorenstein Company LLC, The Timberland
Intesa SpA, Bank of China, Bolsa de Mercadorias Company, Underwriters Laboratories Inc., Union
www.weforum.org
& Futuros (BM&F), Brasil Telecom SA, British Bank of Nigeria Plc, United States Postal Service
Columbia Lottery Corporation (BCLC), BUPA and the Youssef El-Khereiji Group of Companies.
(British United Provident Association), Business
Objects SA, CH2M HILL Companies Ltd, China
21
Our members and partners
22
Our communities and constituencies
The special
commitment of
the business
community
Davos in January 2003 with the aim of giving strategic and logistics and transportation sectors were held in
guidance to the World Economic Forum. Following a Geneva. A similar meeting for the engineering and
debate at its summer meeting, the IBC developed a construction industry was held in London and another
statement on corporate governance for use by for the automotive sector took place in Paris.
members in discussions with officials and regulators.
23
Our communities and constituencies
Forum Fellows This year 100 new members were selected, marking
Intellectual capital is very important to the World the community’s tenth anniversary. Many earlier GLTs
Economic Forum and much of it is provided by our have gone on to become household names, including
Forum Fellows, a group of around 1,500 scientists and Bill Gates, Chairman of Microsoft Corporation, Tony
experts from a variety of fields. Blair, Prime Minister of the UK, and the composer and
singer Bono.
24
Technology Pioneers We continued to seek constructive dialogue with
The Technology Pioneers programme has matured anti-globalization groups, participating in meetings
significantly since it was established in 2000. Members with the World Social Forum.
of this community represent the cream of global talent
in the fields of information technology, biotechnology Social Entrepreneurs
and renewable energy. Their aim is to provide The Schwab Foundation for Social Entrepreneurship
alternatives to accepted wisdom, as well as to keep consists of about 70 individuals and organizations that
the World Economic Forum informed about emerging use innovation to create social value, with wealth
technologies likely to have an impact on how business creation as a means to that end.
and society operate.
The Foundation was created by Klaus and Hilde
In 2002/2003, 40 new Technology Pioneers were Schwab in 1999. It is independent but works
selected from among the chief executives of the most closely with the World Economic Forum to
innovative technology companies in the world. For provide a global platform to promote the benefits
the first time, Technology Pioneers formed part of the of social entrepreneurship.
official Annual Meeting programme, and their sessions
on IT, biotechnology and energy were well attended Members of this community are united by their
and stimulated lively debate. From 2004, this commitment to working for the public good, whether
heightened profile will be extended to include an through profit-making or not-for-profit organizations.
annual Technology Pioneer event at a regional summit. Social Entrepreneurs are pioneers and innovators.
They challenge the usual or ‘inevitable’ and identify
Dialogue with NGOs pattern-breaking approaches to resolve seemingly
In 2002/2003, the World Economic Forum continued intractable problems, using new processes, services,
to build strong relationships with non-governmental products or new ways of combining proven practice.
organizations (NGOs) and sought to integrate their
views into its activities. NGOs played an active part in The vast majority of Social Entrepreneurs are educated
our regional events, 72 took part in the Annual professionals, such as medical doctors, engineers,
Meeting and many were involved in our initiatives and scientists, economists, management specialists and
task forces. For example, WWF has worked with us lawyers. Their commitment to creating social value
on environmental issues while Amnesty International colours the way they use their expertise and talents.
and Oxfam contributed to the World Economic
Forum’s 2003 Global Agenda Monitor.
Social Entrepreneurship
Empowering African businesswomen
Gisèle Yitamben is one of the outstanding individuals Yitamben carried out a study for the African
in the Schwab Foundation for Social Entrepreneurship Development Bank in 1986, which revealed that women
network. Her Association pour le Soutien et l'Appui à entrepreneurs in Africa had no access to credit. Their
la Femme Entrepreneur (ASAFE) provides business businesses were too small and they could not provide
training and collateral. Moreover, in Cameroon a combination of
development services, discriminatory traditional laws and a lack of government
alternative financing support prevented women’s economic empowerment.
and access to
e-commerce for ASAFE strives to enable women entrepreneurs to seize
thousands of women emerging opportunities, building competency
www.weforum.org
25
The Forum blends the best of the private and public sectors to create a unique culture, boosted by
the dynamism and youthfulness of a multicultural staff.
26
Our people
Our people:
a wealth of
diversity and
talent
Spanish 4
Swedish 3
We also continued to encourage staff to take part Swiss 43
in external social, cultural and sporting activities Thai 1
provided there was no conflict of interest.
Nationalities 32
27
Our organization
World class
governance
The World Economic Forum is striving towards a The membership criteria include integrity, global
world-class corporate governance system. vision, leadership experience and participation in
world affairs.
In 2002/2003, we completed the dual
implementation of a new system of corporate The Foundation Board members for the year
governance, which is rooted in our operational and 2003/2004 are:
strategic approach. • Klaus Schwab, Executive Chairman
• William I. M. Turner, Vice-Chairman
We will continue to review and adapt the World • Josef Ackermann, Vice-Chairman
Economic Forum organization to ensure we remain • Kurt Alig, Secretary
responsive to the needs of our stakeholders. • Peter Brabeck-Letmathe
• Lord Carey of Clifton
“Global governance should not be based on rules or • Victor L. L. Chu
• Flavio Cotti
power. It should be based on values.” • Michael S. Dell
• Niall FitzGerald
Bertrand Collomb, Chairman and CEO, Lafarge, France, at the Annual Meeting 2003 • Rajat Gupta
• Nobuyuki Idei
• Caio Koch-Weser
The Foundation Board • Henry A. McKinnell
The Foundation Board is currently made up • Heinrich von Pierer
of 18 eminent individuals from business, politics, • H.M. Queen Rania of the Hashemite Kingdom
academia and civil society, each serving a of Jordan
three-year term. • Peter D. Sutherland
• Ernesto Zedillo Ponce de Leon
The Board acts as the guardian of the World
Economic Forum’s mission, values and brand, At the Foundation Board meeting of 21 August 2003,
inspiring business and public confidence through an members accepted the resignation of Graça Machel,
exemplary standard of governance. This includes: who stepped down due to other commitments.
managing the statutes of the World Economic Forum
and its institutions; defining the powers of the
Committees and of the Managing Board; appointing
new members; reviewing fund applications; and
determining and monitoring the execution of the
World Economic Forum’s strategies.
28
The Committees of the Foundation Board The Centre for Regional Strategies
The Foundation Board appoints four committees The Centre for Regional Strategies (CRS) provides
from among its members: members and constituents with a series of
• The Executive Committee prepares the decisions outcome-oriented summits in markets of major
of the Foundation Board and oversees the strategic interest. It builds regional and national
Managing Board communities of leaders drawn from business,
• The Audit Committee ensures compliance with politics, academia, religion, media and other areas
all financial, accounting and control processes of civil society who share the World Economic
• The Evaluation and Remuneration Committee Forum’s mission.
recommends candidates for positions on the
Managing Board and monitors their performance The regional summits allow members and
• The Mission Compliance Committee reviews participants to share, face-to-face, information and
Forum policies, strategies and activities in light insights on key developments and trends of regional
of its mission significance. They also give the issues an audience
which extends to all stakeholders of global society.
Practice Structure CRS works closely with both CGA and CGI, with
In 2002/2003 the World Economic Forum the regional summits serving as a platform for the
organized its work into three integrated practices. World Economic Forum’s global initiatives.
29
Our organization
30
Frédéric Sicre André Schneider
Managing Director, Regional Strategy, aged 39 Managing Director, Chief Operations Officer, aged 44
Qualifications: BA in Literature, Villanova University, Qualifications: Classical Orchestra Musician; Diploma,
Philadelphia, Pennsylvania, USA. Positions held: Richard Strauss Konservatorium, Munich. PhD in
managing a communication centre within the NATO Computer Science, University of Geneva. Positions
organization, Germany. Programmer, News held: the Philharmonic Orchestra of Berlin; the
Reporter for Radio Geneva Information and KTFM Staatsheater Kassel; the Symphony Orchestra of the
radio stations, 1982-84. Joined the World Radio Saarland; the Lucerne International Festival
Economic Forum in 1989. In 2000, he became Orchestra. Researcher in parallel computers for the
Managing Director with direct responsibility for the European Community; various positions held with IBM,
Centre for Regional Strategies. including: Product Developer; Consultant and Principal,
IBM Consulting Group; Consultant for various
Rick Samans*** companies and organizations; Speaker on IT-related
Director, Global Issues, aged 45 topics. Joined the World Economic Forum in 1998,
Qualifications: BA in Economics and French from Tufts appointed Director of Knowledge Management and
University and a Masters in International Affairs from an Associate Member of the Managing Board in 2000
Columbia University. Positions held: Corporate Lending and a member of the Managing Board from
Officer, Credit Lyonnais USA, New York from 1981-84. January 2003.
Legislative Assistant to a member of the House
Committee on Ways and Means from 1985-88. Michel Ogrizek***
Professional Staff Member and Senior Legislative Director, Communications, aged 56
Assistant to the Chairman, Senate Banking Qualifications: Medical Doctor, University of Paris,
Committee; International Affairs Fellow, Council on 1974. Positions held: Chief Medical Officer at the
Foreign Relations, London and Washington DC from French Ministry of Cooperation from 1975-82.
1988-91. Associate Director and Staff Director for the Research Associate in the Department of Cultural
Subcouncil on Capital Allocation, Competitiveness Anthropology and post-doctoral studies at Berkeley,
Policy Council, 1993-96. Economic Policy Adviser to 1982-83. Medical and Public Affairs Director, Africa
the Senate Minority Leader from 1996-99. Special Region and Medical Director, Canada, at Warner
Assistant to the US President, for International Lambert from 1983-87. Médecins Sans Frontières
Economic Policy, 1999-2001. Joined the World trainer. From 1987-91, Director, Burson-Marsteller,
Economic Forum in 2001 as Director, Global Issues France. President and CEO, Hill & Knowlton, France,
and as an Associate Member of the Managing Board. and Head, Eurosciences, from 1991-95. From 1995-
97, President and CEO for Europe and Board
member, Edelman Public Relations Group. Global
Head of Corporate Relations, Unilever from 1997-
2000. Global Head, Marketing & Communications and
Managing Director, UBS Warburg from 2000-02.
Joined the World Economic Forum in mid-2002 as
Director of Communications and as an Associate
Member of the Managing Board.
31
Our organization
Sharing
knowledge
32
Online World Economic Forum staff hard at work at the
Annual Meeting 2003 in Davos
The number of visits to our sites continued to rise. In 2002/2003, for the first time, the media presence
In January 2003, there were one million page views, included many of the world’s leading editorial
up from 250,000 the previous January. Over the full cartoonists. As both journalists and artists, they
year, there were seven million page views, over one wield a peerless impact and influence on their
million visits. audiences, reflecting and even shaping public
perception of global leaders and issues. They
Looking forward, we will continue to develop our brought a unique perspective to our efforts to
IT capability, to enhance the experience of everyone engage dialogue during this year’s Annual Meeting,
who interfaces electronically with the World Extraordinary Annual Meeting and regional summits.
Economic Forum.
Our close working relationship with the media across
Communications the globe demonstrates our openness and
In 2002/2003, extensive – and largely positive – transparency. Ongoing media programmes
media coverage brought World Economic Forum throughout the year reinforced this relationship which
activities to millions of people around the globe. is based on trust and credibility. Notable international
partnerships with press groups included editorial
The Annual Meeting and the Extraordinary Annual cooperation with Newsweek at the global level and
Meeting were the key focus of media attention. Time in Europe, the Middle East and Africa.
For example, live BBC World broadcasts from both
meetings opened the events to almost half a billion Partnerships
television viewers and radio listeners. The peace and The World Economic Forum also seeks partnerships
reconciliation summit in Jordan attracted significant with like-minded institutions. It has, for example,
numbers of both the Israeli and Arab media, with NGO consultative status with the Economic and
satellite television network Al-Jazeera broadcasting Social Council of the United Nations and works
three hours of coverage per day. closely with the Prince of Wales International
Business Leaders Forum and the World Business
This level of media attention is due to the Council for Sustainable Development.
international stature of our membership and the
significance of topics and initiatives. It also reflects
the World Economic Forum’s commitment to
www.weforum.org
33
Our financial
results
Financial policy
The World Economic Forum’s financial policy
states that membership fees should cover
operational costs, that events are funded through
cost contributions and that projects are supported
by income from partnership contracts.
61,100,642
72,195,453
66,454,727
The World Economic Forum makes no payments to The financial year’s figures reflect the special partnership nature of
the Annual Meeting 2002 in New York and the SARS-related
political personalities, parties or other organizations cancellation/postponement of two significant Asian summits in 2003.
and avoids involvement in internal politics.
34
Key figures
Surplus to be
added to the
Foundation capital 925,560 1,684,507 249,759 3,118,445 205
Total staff
Full time 68 81 125 139 130
out of which are seconded
by Forum members 4 4
Part time 24 22 22 28 28
35
Our mission and
values
The World Economic Forum is the foremost global The World Economic Forum enjoys unique global
community of business, political, intellectual and positioning by recognizing and responding to two
other leaders of society committed to improving the new developments:
state of the world.
• The world’s key challenges cannot be met by
Our mission is best realized through activities governments, business or civil society alone
which promote economic and social development. • In a world characterized by complexity, fragility
We believe that economic progress without social and ever greater synchronicity, strategic insights
development is not sustainable, while social cannot be passively acquired. They are best
development without economic progress is not developed through continuous interaction with
feasible. Our motto is thus ‘entrepreneurship in peers and with the most knowledgeable people
the global public interest’. in the field (learning communities)
36
The Forum’s Global Health Initiative helps mobilize the private sector in the fight against
HIV/AIDS. Pictured, Ian Robertson, BMW South Africa’s managing director, is publicly
tested at an on-site medical facility, to encourage employees to learn their HIV status
without fear of discrimination.
37
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