Annual Report 2001/2002

Solidarity in a
challenging year
Following their discussions at the Annual Meeting 2002 in New York, US Treasury Secretary
Paul O'Neill and rock star Bono visited Ethiopia as part of a joint tour of Africa. The tour
marked a step forward for the continent. Since their return, the US government has put
forward initiatives to address the AIDS epidemic and improve education in Africa.
 The World Economic Forum is an
independent international
organization committed to
improving the state of the world.
The Forum provides a collaborative
framework to address global
issues, engaging world leaders –
particularly its corporate members
– in global citizenship.

Contents
The president’s statement 2

The global agenda: Annual Meeting 4

The regional agenda 6

Task forces and initiatives 10

Our members and partners 16

Our communities and constituencies 18

Our people 22

Our organization 24

Our mission and strategic vision 31

Our values and principles 31

Our financial results 32

www.weforum.org

1
 The president’s statement
The World Economic Forum has achieved much in a
difficult year. The attacks of 11 September, the
financial downturn, international tension and a
breakdown of trust in corporate governance all
created a sense of global uncertainty. Against this
disturbed backdrop our membership and internal
team delivered in line with their key objectives.
A clear example was the Annual Meeting held in
New York in early 2002. Our team relocated the
event from its traditional home in Davos, Switzerland
in just 12 weeks. We are proud of this achievement
and of being able to provide a platform for world
leaders to show their solidarity with New Yorkers so
soon after the attacks. This speed of relocation is
emblematic of the drive and purpose of our people.
Significantly, it increased understanding in the US of
the World Economic Forum’s mission.
In 2001/02 various outcomes showed that the World
Economic Forum is succeeding in its aims of
becoming an integrator of the best minds and a
catalyst to creating innovative, challenging ideas. Here
I highlight three specific examples of how the World
Economic Forum served as a platform and – I believe
– as a prompt for our members to deliver solutions to
significant global issues:
1) Our Global Digital Divide Initiative, which is focused
on bringing digital technology to the developing
world, took significant steps. Following discussions
at the Annual Meeting 2002, President Thabo
Mbeki of South Africa was able to announce that
Microsoft would supply free software to all 32,000
government schools in his country.
2
Solidarity in
a challenging
year
2) Our Global Health Initiative Executive Statement
was well received by corporations, governments
and medical leaders alike. The health initiative is
driven by a partnership between the World
Economic Forum’s member companies, the World
Health Organization and the Joint United Nations
Programme on HIV/AIDS. Among the Executive
Statement’s objectives is a 50% reduction in the
disease burden of TB and malaria, and a 25%
reduction in HIV by 2010. In addition the World
Economic Forum assisted the Global Fund to Fight
AIDS, TB and Malaria by advising them on how to
engage the private sector.
3) Canada’s Prime Minister, Jean Chrétien, announced
at the Annual Meeting the creation of a US$ 500
million fund by the G-8 for African countries
committed to reform. This action followed the
strong involvement of the World Economic Forum
in the launch of the New Partnership for Africa’s
Development (NEPAD).
The World Economic Forum is well-placed to help its
members meet the societal challenges ahead and to
ensure that economic activities serve the global public
interest. At this time, when trust in organizations of all
types around the world is low, we are more committed
than ever to transparency in our activities. In 2001/02
we reaffirmed the values and principles which guide us
in several corporate documents.

Our team is stronger than ever before. It increased in
size from 147 people to 171, broadening the range of
experience, cultural diversity and talent we offer. Our
management team has also been strengthened. This
will help us to both deliver on a day-to-day basis and
to ensure that we have the necessary skills and
expertise to focus and develop our strategic offering.
After former President of Costa Rica José María
Figueres joined us as a managing director in 2000,
bringing vital governmental experience, we appointed
a new director of communications. Michel Ogrizek,
who previously fulfilled global communications remits
at Unilever and UBS Warburg, started working with
us in August 2002. He will help with the key
challenge of communicating our mission in a
globalized world. In addition, we strengthened our
organizational capability, developing the new
governance system and extending our IT resources.
Our finances remain robust and we have continued
to manage them prudently and effectively with a
focus on future needs. In the year under report,
our income increased by 13% to Sfr. 72,195,453.
This allowed us to boost the amount spent on our
high priority activities and on essential
infrastructure by nearly 9% to Sfr. 69,077,008. The
surplus has been added to Foundation Capital
which now stands at Sfr. 12,114,753.
Klaus Schwab
The strength of the balance sheet and management
team and our organizational capability will be
important in the months and years to come. As
global leaders we all bear the responsibility for
rebuilding trust in corporate and government
institutions. It is in our own interests, and those of
society, that we act together to find solutions.
The role of the World Economic Forum is
permanently changing to be responsive to the
challenges of our time. In 2001/02 the Forum
continued its progression from being the convener of
events, which uniquely engage all stakeholders in civil
society, to becoming a leading strategic insight body.
This progression will continue throughout the years to
come. It is mine and my colleagues’ intention that the
World Economic Forum will become the leading
strategic insight organization in the world. As such the
World Economic Forum will continue to support global
leaders, from all sectors of society, by enabling them to
identify the key issues and scenarios that face us all,
and – most importantly – the actions that they must
take together to improve the state of the world.
Klaus Schwab
Founder and President of the World Economic Forum
www.weforum.org
3
 The global agenda Participants in the Annual Meeting 2002

Annual
Meeting
2002 in
New York
Rabbi Israel Meir Lau, Ashkenazi Chief Rabbi of Israel, and
Cardinal Francis Arinze, President of the Pontifical Council
for Inter-Religious Dialogue

The Annual Meeting 2002 brought together more

than 2,700 leaders from business, government,
academia, the media and civil society.

It convened for the first time in New York City as a

Rudolph W. Giuliani, former Mayor of New York, addresses
the Annual Meeting 2002 of the World Economic Forum
symbolic act of solidarity with the city, after the
attacks of 11 September. These tragic events
brought home to all of us how fragile our world is.
In line with this insight, we built the meeting around
the theme of Leadership in Fragile Times: a Vision
for a Shared Future. Sessions thus concentrated
on six areas: advancing security and addressing
vulnerability; re-evaluating leadership and
governance; redefining business challenges;
reducing poverty and improving equity; restoring
sustained growth; and sharing values and
respecting differences.

Ratio of Annual Meeting Participants 2002 The Annual Meeting achieved progress in many of
these areas. In particular, it was significant in
Other constituents developing relationships between the constituencies
Religious leaders from all walks of life that took part, 45% of whom
NGOs came from outside the world of business.

Media Fellows
In particular, the 42 religious leaders who participated
helped build a greater understanding of different
Business Technology Pioneers
values and cultures. In addition, there was a
Global Leaders
for Tomorrow significant Arab presence. Forty young Arab leaders
were integrated into the full Annual Meeting and we
Academic saw the highest ever participation of Saudi Arabians
experts
at a World Economic Forum event. This strong Arab
presence helped participants to better grasp the
Public figures complex relationship between Islam and the West.

4
Tore Godal, executive secretary of GAVI Secretariat, Switzerland,
and Pascal Mocumbi, Prime Minister of Mozambique
There was a major focus on interactivity, with
workshops and interview-style panel discussions on
crucial global, regional and industry issues. As such,
the Annual Meeting was not a meeting in the traditional
sense, but more the flagship for the World Economic
Forum’s larger set of activities, including regional
knowledge meetings and initiatives.
The Annual Meeting, in common with all World
Economic Forum activities, aimed to identify tangible
solutions to the most urgent challenges facing the
world today. The outcomes delivered included:
• The signing of a Global Corporate Citizenship
statement by 36 CEOs, representing companies
from various industry sectors and geographical
regions. The statement recommends a
framework for action to manage the impact of
business on society and to strengthen
relationships with stakeholders around the globe
• The announcement of a contribution of
US$ 50 million by the Gates Family Foundation
for AIDS prevention in Africa. This sum included
a US$ 20 million donation to the trial of a
promising microbicide that could potentially help
protect women from HIV/AIDS
Shimon Peres, Minister of Foreign Affairs and Deputy Prime Minister
of Israel, and Hillary Rodham Clinton, Senator from New York
• The creation of a Disaster Response Network,
leveraging the resources of businesses in
engineering and transportation to assist with
disaster relief efforts
“By holding their 2002 Annual Meeting in New York, the World
Economic Forum served as a resounding endorsement of New
York City's sustained vitality. We can't think of a more appropriate,
courageous and optimistic milieu for the Davos Meeting to be held
than in the most diverse city in the world, which also happens to
be the financial capital of, and a global economic partner, to the
world. This is a tremendous vote of confidence in our city. It sends
a message that New York is back in business, and that New York is
the place to be for world leaders and decision-makers.”
Rudolph W. Giuliani, former Mayor of New York, Annual Meeting 2002
• A declaration by Canada’s Prime Minister Jean
Chrétien that the G-8 group of nations is creating
a US$ 500 million fund to help African countries
committed to reform. The fund will assist African
governments to build a durable peace, address
their health crises, strengthen democracy and
open potential for trade and investment
For more information about the Annual Meeting
2002 visit www.weforum.org/annualmeeting
www.weforum.org
5
 Gloria Macapagal Arroyo, President of the Philippines, at the World Economic Forum's East Asia
Economic Summit 2001, held in the Hong Kong Special Administrative Region.

6
The regional agenda
Our regional agenda focuses on high priority issues
relevant to local members operating in different
regions. In 2001/02, the World Economic Forum
brought together thousands of decision-makers to
address the most crucial regional issues of today.
Asia Pacific and China
China continued to develop its economic base
during the course of 2001/02. However, difficulties
remained in the Japanese economy and
throughout the region there was an over-reliance
on the US and other western markets.
The World Economic Forum recognized the need
to ensure the entire region benefited from China’s
growing strength. It was uniquely positioned to
bring together 600 leaders to address issues
surrounding market development at the China
Business Summit 2002 in Beijing. (For more
information visit www.weforum.org/china)
The World Economic Forum also acted to maintain
the momentum in the Chinese economy with the
launch of the New Chinese Economic Leaders
programme. It will support a new generation of
Chinese leaders from all walks of life as they
confront the social and economic challenges ahead.
Addressing
crucial local
issues
Taking a long-term view of Japanese recovery, in
the closing weeks of the financial year, the World
Economic Forum began to develop its ‘blueprint
for Japan’. Young Japanese leaders from the
business, government and academic arenas were
asked to identify and define how to surmount the
country’s ten biggest challenges in the years up to
2020. Their plan will be delivered to the Annual
Meeting 2003 in Davos.
At the India Economic Summit a council of chief
executives from both India and abroad was
created. The India Advisory Council will advise
the World Economic Forum on strategies for
building confidence, increasing investment and
delivering prosperity in the subcontinent. (See
www.weforum.org/india)
“It is not the case that most people wish to reverse
globalization. It is that they aspire to a different and better
kind than we have today.”
Kofi Annan, Secretary-General, United Nations, Annual Meeting 2002
The World Economic Forum again brought leaders
together to discuss regional issues at the East Asia
Economic Summit in Hong Kong in October 2001.
Although advances were made, discussion at the
event was inevitably dominated by the impact of the
terrorist attacks of 11 September in New York and
Washington. (For more details see
www.weforum.org/eastasia) www.weforum.org
7
 The regional agenda
Africa and the Middle East
In Africa, the World Economic Forum was instrumental
in winning business trust in the New Partnership for
Africa’s Development (NEPAD). The partnership aims
to eradicate poverty and achieve sustainable growth
but, as business felt it had not been consulted about
its creation by African governments, it was largely
sceptical about its prospects for success.
The World Economic Forum provided a platform for the
region’s leaders to overcome this scepticism and win
private sector support, both at the Annual Meeting in
New York and at the Africa Economic Summit in
Durban, South Africa. More than 200 African and
multinational companies signed a declaration
committing their businesses to supporting the NEPAD.
(For more information see www.weforum.org/africa)
“There is no way that Africa can benefit from
globalization without industrialization. Can globalization
deliver?…Only if there is cooperation between North and
South and rich and poor.”
Benjamin William Mkapa, President of Tanzania, Annual Meeting 2002
In the Middle East, economic stability was threatened
by tensions with Israel. The World Economic Forum’s
Annual Meeting 2002 provided an opportunity for
Israeli and Palestinian business leaders to hold private
meetings. They made a joint statement pledging to
seek closer relations. The statement was co-delivered
by Dan Gillerman, the Israeli ambassador to the United
Nations, and Walid Najjab, a board member of the
Palestinian Electricity Company.
Following this statement, as a gesture of goodwill,
Israeli business played an important role in
persuading its country’s customs authority to
release a shipment belonging to Palestine Cellular
Communications Limited.
In the Arab world, promising young leaders have often
found it difficult to come to the forefront on the
international stage. At the Annual Meeting 2002, the
Young Arab Leaders community was launched. The
aim of the initiative is to identify young people from the
Arab world that are poised to assume key positions in
areas such as business, academia and politics.
8
North America
In North America, the war on terror and corporate
accounting scandals exacerbated an already
sluggish economy. Despite this, the World
Economic Forum helped to inspire new moves by
the US government to relieve the plight of some of
the world’s poorest people. The World Economic
Forum’s unique role in bringing people together from
different walks of life was highlighted when Irish rock
star Bono met US Treasury Secretary Paul O’Neill at
the Annual Meeting in New York. There, they
discussed the possibility of writing off debts incurred
by some of the world’s poorest countries.
Following this meeting Bono and O’Neill went on a
tour of Africa, including Ghana, Uganda, South Africa
and Ethiopia, where they met doctors, farmers,
teachers, students and entrepreneurs. The tour
marked a step forward for the continent. Since their
return, the US administration has put forward initiatives
designed to address the AIDS epidemic and the
continent’s weak education infrastructure, which has
suffered neglect in countries crippled by debt.
In May, leaders from around the world discussed
prospects for the American economy at the USA
Meeting 2002 in Washington. Following 11 September,
they also focused on likely scenarios around the
economic and social impacts of terrorism.
(See www.weforum.org/usa)
Latin America
Economic turmoil in Latin America, particularly
in Argentina, continued to hinder growth and social
equality. In response, the World Economic Forum
sought to harness the private sector behind
economic and social reforms as a step to
future growth.
The Annual Meeting 2002 provided an opportunity for
political and business leaders to discuss ways of
solving the crisis in Argentina. They focused on political
institutions, competitiveness, foreign trade and financial
systems. Working with the new Argentinian
government they made key recommendations for
change. Latin American business leaders held a follow-
up meeting in Washington to further address the main
issues affecting the region.
Europe
In Europe, there were signs of increasing
scepticism about European integration and the
perceived gulf between the European Union’s
institutions and its citizens.
To help address this discontent and look forward to
the future, the World Economic Forum launched with
Monday Morning the Bridging Europe initiative. This
was a catalyst for online dialogue between 1,000
younger Europeans and some of the EU’s key
politicians and business leaders. (For further
information visit www.weforum.org/europe)
Russia and Central Asia
Central Asia, politically and economically significant
as the holder of important oil resources, remained
Bridging Europe
The Bridging Europe initiative demonstrated the
World Economic Forum’s commitment to building
communities of current and future leaders who
share our mission.
The initiative was designed to tackle political
indifference and the perceived gulf between the
European Union’s institutions and its citizens. It
united 1,000 young people, from 33 countries, in
an online dialogue with leaders from European
politics, business, non-governmental organizations
and academia.
The initiative was run in partnership with the
Danish think-tank Monday Morning. Following the
nine-week dialogue, the young people travelled to
Denmark for the Youth 2002 meeting. At this
event, they presented a draft proposal for a new
European constitution to Danish Prime Minister
Anders Fogh Rasmussen and Valéry Giscard
d’Estaing, President of the Convention on the
Future of Europe.
British youth delegate Zoë Waterman said: “The
two weeks in Denmark were a huge learning
experience for all involved, as well as a lot of fun
and the foundation of many firm friendships. For
a volatile and unpredictable region. It became
viewed by some authorities as a possible breeding
ground for extremists.
At the Eurasia Economic Summit 2002 in Almaty,
Kazakhstan, 500 business people, politicians,
academics and media representatives from across the
region were brought together to discuss how to
‘sustain growth in uncertain times.’ (For more
information visit www.weforum.org/eurasia)
As poor corporate governance practices continue
to dog the Russian economy, the World Economic
Forum drafted a corporate code of conduct
designed specifically for the local environment.
The issue was progressed at both the Russia Meeting
in Moscow 2001 and at the Annual Meeting 2002.
me, the most eye-opening aspect of the event was
the participation of those countries who are
currently applying to join
the EU. They made
me realize how western
my views are and
forced me to
re-evaluate them.”
Giampiero Alhadeff,
Secretary-General of
Solidar, an international
alliance of NGOs, said:
Young people discuss the way to a better Europe,
“There is much talk of a
as part of the Bridging Europe initiative
democratic deficit
separating the European Union from its citizens.
The unsurprising thing about the 1,000 young
people involved in this project is how committed
they are to a Europe that is dedicated to human
rights, tolerance and social inclusiveness. For them,
there is no contradiction between an economically
strong Europe and one that stands up for social
justice at home and abroad.”
(For more information about Bridging Europe see
www.weforum.org/bridgingeurope)
www.weforum.org
9
 The Global Health Initiative is fostering greater private sector engagement in the fight against
HIV/AIDS, TB and malaria. It is driven by a partnership of the World Economic Forum, WHO
and UNAIDS.

Photo credit: UNAIDS/G. Pirozzi

10
Task forces and initiatives
The World Economic Forum’s global, multi-sector
membership provides a unique platform for the
discussion, coordination and development of
practical projects dedicated to improving the state
of the world. The World Economic Forum has
established a number of task forces whose
initiatives form an integral part of this mission.
(See www.weforum.org/initiatives)
Global Competitiveness Programme
The World Economic Forum’s Global
Competitiveness Programme expanded during
2001/02, with the introduction of workshops to
complement its expert reports.
The Global Competitiveness Programme aims to
act as a catalyst for economic policy change, by
assisting governments in identifying impediments
to growth and in designing strategies to achieve
sustained economic progress. One recent
collaboration has been with Colombia, whose
economic reform programme is based on the World
Economic Forum's competitiveness approach.
The programme also serves as an integrator
between members and key policy-makers,
contributing to the creation of an economic
framework that supports private investment,
entrepreneurship and social progress. Its other
objectives include stimulating public debate on
economic development and global stewardship,
and helping investors develop business strategy by
monitoring and benchmarking national economies.
Furthering
our mission
In 2001/2002, the programme produced the
following reports:
• The Global Information Technology Report
2001-2002: Readiness for the Networked World
• The European Competitiveness and Transition
Report 2001-2002
• Environmental Performance Measurement:
The Global Report 2001-2002
• The Latin American Competitiveness Report
2001-2002
“The gap in health outcomes is growing dramatically… AIDS
and TB are really phenomena of the poor world: when I say
poor world, of course, I mean the majority of the world.”
Bill Gates, Chairman and Chief Software Architect,
Microsoft Corporation, Annual Meeting 2002
In addition, the World Economic Forum held a
range of regional and global workshops where
leaders met to discuss issues critical to national
competitiveness. These workshops were
supported by presentations around the world to
national governments keen to strengthen their
economies. (For further information see
www.weforum.org/gcp)
www.weforum.org
11
 Task forces and initiatives
Environmental Sustainability Index
The Environmental Sustainability Index is
a measure of overall progress towards
environmental sustainability.
The index was first developed in 2000 by the
World Economic Forum’s Global Leaders for
Tomorrow Environment Task Force, the Yale Center
for Environmental Law and Policy, and the Columbia
University Center for International Earth Science
Information Network.
It takes account of both a country’s existing
environmental capabilities and performance and
its future capacity to manage environmental
challenges. The index offers a benchmark for
national environmental comparison and provides the
critical information required for environmental
decision-making.
“Today, if you try to ‘greenwash’ as a multinational
corporation, you will wake up sorry one morning.”
Björn Stigson, President, World Business Council for Sustainable
Development, Annual Meeting 2002
This year, the index’s scope was broadened. An
increase in the number of ranked countries from 122
to 142 made it more comprehensive; the crucial
measure of greenhouse gas emissions was
emphasized, and measuring techniques were
improved with the introduction of new data sets and
advanced data importing methods.
A pilot Environmental Performance Index was also
launched. This ranks countries more precisely by
using specific environmental criteria and by indicating
improvement rates.
In the 2002 index, Finland was ranked first for
environmental sustainability. This followed its success
in minimizing air and water pollution, its management
of environmental problems and its low levels of
greenhouse gas emissions. (For further information
visit www.weforum.org/esi)
Global Digital Divide Initiative
The Global Digital Divide Initiative builds partnerships
between the public and private sectors to help less
developed countries make use of information and
communication technology (ICT).
12
The digital divide is about more than just direct access
to technology. It also concerns a nation’s computer
literacy and how effectively different countries use IT for
social and economic development.
At the Annual Meeting 2002 in New York, the initiative
task force launched a CEO Charter for Digital
Development. CEO signatories agreed to try to target
at least 20% of their annual corporate citizenship
and/or philanthropy budgets towards concrete and
sustainable actions to promote social, economic and
educational progress in developing countries and
disadvantaged communities, through information and
communication technologies.
Initial signatories included participants from Taiwan,
Egypt, the US, Jordan, the Philippines, South Africa,
Malaysia, the United Arab Emirates, the Russian
Federation, Switzerland, Spain and France.
In 2001/02, the task force carried out an international
survey and evaluation of digital divide-related projects.
It also forged partnerships between digital divide teams
and the wider World Economic Forum, to share
knowledge about successful projects.
This activity helped match companies seeking to
invest in education-related activities with projects
requiring support. During 2001, World Economic
Forum strategic partnerships helped the following
projects to improve their education-related
activities: the Committee for Democracy in
Information (Brazil), Educar Chile (Chile), ITrain
(Canada), and US-based Schools Online, World
Computer Exchange and World Links.
There were several other key outcomes. For
instance, a joint Southern African Development
Community/World Economic Forum workshop
helped to share perspectives on e-readiness. In
another example, in regional pilot studies in South
Africa and Brazil, local teaching bodies and
government groups worked with global IT
companies to develop IT education.
The initiative began in 2000 with a one-year
mandate but was so successful that its remit was
expanded. The task force will now be refocused
at the Annual Meeting 2003 to assess the social
investment required to ensure its continuing
success. (For further information visit
www.weforum.org/digitaldivide)
Global Health Initiative
The Global Health Initiative is designed to foster
greater private sector engagement in the global
battle against HIV/AIDS, tuberculosis (TB) and
malaria. These diseases are regarded as the root
causes for the failure of developing countries to
increase their economic and social well-being.
The initiative is driven by a partnership between the
World Economic Forum's member companies, the
World Health Organization and the Joint United
Nations Programme on HIV/AIDS (UNAIDS).
It has four major strategies:
• Promoting the business case to unite global
industry in the fight against HIV/AIDS, TB
and malaria
• Developing resources to promote good practice
within workforces and communities
• Identifying resource gaps and corresponding
partnership/philanthropic opportunities
• Expanding corporate advocacy
Global Digital Divide Initiative
The Jordanian Government intends to introduce
information technology as an important component
of both primary and secondary education. To
achieve this it wishes to equip 3,183 schools with
computer laboratories.
The World Economic Forum is supporting this
programme through its Global Digital Divide Initiative.
Although Jordan has been successful in securing
loans for the project, it still needs to equip more than
1,000 schools and provide basic computer literacy
training for almost 57,000 teachers.
The World Economic Forum is working with the
independent, non-profit organization World Links
and private sector partners to provide computer
equipment and software for 500 Jordanian
schools. World Economic Forum members are also
supplying financial resources for teacher training.
As a result of these aims, many companies
have strengthened their internal policies and
programmes, offering anti-AIDS drugs to workers
and their families. This potentially doubles the
number of people in Africa with access to life-saving
medicines. (See www.weforum.org/globalhealth)
Encouraging progress has been made during
2001/02, including:
• The production of the initiative’s executive
statement. This corporate call to action was
signed by 30 companies and was accompanied
by a resource paper comprising the findings and
tools developed in 2001
• The World Economic Forum’s participation as a
private sector representative on the Transitional
Working Group, the design and development
body of the Global Fund to Fight AIDS, TB and
Malaria. The initiative is now the focal point for
private sector interaction with the Global Fund
This project is an essential part of the Jordanian
Government’s long-term goal of becoming a global
hub of information technology.
Bridging the gap between
those who have information
and communications
technology and those who
have not is an important
goal of the World Economic
Forum. This technology can
enable a better life for
millions by enabling
countries to overcome
barriers to development. Bridging the digital divide
The Global Digital Divide Initiative is bringing
technology to people across the developing
world, including Brazil, Ghana, Mexico, South
Africa and Vietnam.
www.weforum.org
13
 Task forces and initiatives
Global Agenda Atelier
The World Economic Forum launched the Global
Agenda Atelier at its Annual Meeting 2002. The
programme aims to help members systematically
anticipate and assess risks or opportunities emerging
from political, social and economic trends.
The programme focuses on global themes such
as re-evaluating leadership, reducing poverty and
sharing values. It draws on the insight of global leaders
to develop an overall understanding of the issues and
possible solutions. (For more details see
www.weforum.org/atelier)
“If an organization perceives that the CEO and top
management are tweaking things in the company for
their own comfort...I guarantee you that it will roll
downhill like a big snowball and everyone will tweak
things for their own comfort.”
Roger Enrico, Chairman and CEO, PepsiCo, Annual Meeting 2002
Agricultural Trade Task Force
The task force was established in 2001 to drive
forward equitable reform of global agricultural trade,
making a substantial contribution to the alleviation of
poverty in the developing world.
During the World Economic Forum's Annual Meeting
2002, the task force of companies and anti-poverty
NGOs issued Recommendations for Action on
Trade. This included key guidelines for equitable
reform of the global agricultural trade system. It also
advocated a move towards a more open and fair trade
system through the removal of market-distorting export
subsidies, export credits, direct payments and market
access restrictions. (For further information visit
www.weforum.org/agriculturaltrade)
Pension System Readiness Initiative
The Pension System Readiness Initiative aims to
assess the retirement system readiness of member
countries of the Organization for Economic
Cooperation and Development.
14
Increased life expectancy, the impending retirement of
the baby boom generation and a falling retirement age
are creating unsustainable pressures on public and
private pension systems. Although this is a global
problem, many countries are approaching the issues of
ageing and pension reform in an isolated manner.
The task force aims to create a cross-country
comparison of policy performance together with a
broader discussion about the effect the changes could
have on the world economy.
The initiative will bring together leaders from the
financial services and employment industries and other
stakeholders, such as senior citizen groups, labour
unions and international organizations.
Global Governance Initiative
The World Economic Forum’s Global Governance
Initiative assesses the efforts of governments, inter-
governmental organizations, and non-state bodies to
address global problems such as poverty, disease and
armed conflict. Its aim is to bring the international
community to greater accountability to the Millennium
Summit Declaration’s goals, in particular, on how much
effort and cooperation has been given.
The initiative, which was conceived in 2001, will
produce regular reports that rate these
organizations on their effort and willingness to
engage in partnerships. These will be used to help
stimulate the interest of the media and policy-
makers and to put pressure on governments to
take action and fulfil their promises.
The Global Corporate Citizenship Initiative
The World Economic Forum believes that business
should be fully recognized as a key part of society and
must act proactively in the global public interest.
Business is now increasingly realizing that it has a
raison d’être in society that extends beyond
behaving responsibly. More and more, companies
are accepting that they must address the global
issues of our time if they are to remain successful
and sustainable.
In July 2001, the World Economic Forum launched the
Global Corporate Citizenship Initiative: in 2001/02, it
continued to act as a catalyst for corporate citizenship.
The Global Corporate Citizenship Initiative aims to
help business leaders develop systems to integrate
corporate citizenship principles into their business
strategies. The 30-plus inaugural member
companies came from a diverse range of industries
and regions and included UBS AG, The Coca-Cola
Company, McDonald’s Corporation and Phillips-Van
Heusen Corporation.
At the Annual Meeting 2002, the initiative’s members
launched a landmark statement: ‘Global Corporate
Citizenship: the Leadership Challenge for CEOs and
Boards’. This emphasizes that corporate citizenship
is first and foremost about the way companies run
their businesses. Moving beyond philanthropy,
responsible business principles must be integrated
into core business principles and practices.
Disaster Response Network
Earthquakes, famine and other major disasters bring
misery to many thousands of people every year.
In many situations, humanitarian tragedies are
made worse by the fact that aid donated by
business, charities and the public cannot get
through to those who need it most. The World
Economic Forum’s Disaster Response Network
was launched to make it easier for companies to
channel aid and expert help to stricken
communities in the early response phase of
emergencies. It also ensures that corporate
donations are delivered in a coordinated and
effective manner to humanitarian organizations.
The aftermath of the Gujarat earthquake, which
prompted the launch of the Disaster Response Network
The statement includes a practical template for
leadership, which can be used by CEOs and board
members to translate these principles into practice
within their organizations. In drawing up the statement,
members were assisted by academics and pro-
corporate citizenship organizations, with the Prince of
Wales International Business Leaders Forum playing a
significant role.
The urgent need for global corporate citizenship was
also promoted at the World Economic Forum’s
regional economic summits in Europe and Africa. (See
www.weforum.org/corporatecitizenship)
The network was established at the World
Economic Forum’s Annual Meeting 2002 in New
York, after the Gujarat earthquake in India. A
financial strategy was developed, with member
companies committing to contribute over
US$ 100,000 to the launch.
The initial aims are to develop a circle of regional
business leaders who are willing to take action
when disaster strikes, and to create a clearing
house to ensure engineering and transportation
company experts reach particular areas of need.
Its main goals are to develop regional groups in
Mexico and India, providing staff training and
creating a knowledge centre for organizations
involved in disaster relief.
The project is also working to overcome legal,
contractual and regulatory hurdles that slow the
progress of relief operations and to ensure training
is available for member company employees willing
to volunteer to help after a disaster. (For further
information visit www.weforum.org/drn)
www.weforum.org
15
 The World Economic Forum's Global Competitiveness Report 2001 ranked the comparative
strengths and weaknesses of 75 national economies. It found that Finland had the most
competitive economy.

16
Our members and partners
The World Economic Forum is a business-centred
organization, which acts as an interface with all
stakeholders in civil society at large. Our members
and partners represent all sectors and regions of
the global community. The World Economic Forum
does not make public or private statements in the
name of its members.
Members
The World Economic Forum’s membership is
primarily drawn from the world’s 1,000 leading
global companies. However, 35% of the
membership is reserved for companies from
developing countries and those which are
corporate or technological trendsetters.
Membership criteria are strict and forward-looking
to ensure that the businesses chosen are
representative of the evolving global economy and
committed to the mission of the World Economic
Forum. Our members represent the top companies
within their industry and/or country; play a leading
role in shaping the future of their industry and/or
region; engage in activities with a global dimension;
and enjoy a healthy growth and reputation.
During 2001/02 the following companies were
accepted as members of the World Economic Forum:
Akamai Technologies, Alticor Inc., American Express
Company, AstraZeneca Plc, Avaya Inc., Aviva Plc,
Azizler Holding AS, Banca Nazionale del Lavoro SpA
(BNL), BEA Systems Inc., Becton Dickinson and
Company, Böhringer Ingelheim GmbH, Bristol-Myers
Squibb Company, Cathay Pacific Airways Ltd,
A business-
centred
forum
Centerpulse Ltd, Central Japan Railway Company,
China Hainan Airlines Co. Ltd, Clifford Chance, Club
Méditerranée, Commerce One Inc., Dassault Falcon
Jet Corp., Depository, Trust & Clearing Corporation
(DTCC), Diageo Plc, Dogus Holding AS, Dongwon
Securities Co. Ltd, Economic Development Board,
EMI Group Plc, eSpeed Inc., Federal-Mogul
Corporation, Fedex Corporation, Ferrovie Dello Stato
SpA, Finmeccanica SpA, Flextronics International,
Google Inc., Government of Andhra Pradesh, Grey
Global Group Inc., Groove Networks Inc., Grupo P.I.
Mabe SA de CV, Gulf International Bank BSC (GIB),
Home Box Office, Human Genome Sciences Inc.,
IBS Group, ING Group, Interpublic Group of
Companies Inc., Intertex Holding GmbH, Intier
Automotive Inc, IPP Limited, J.D. Power and
Associates, Jet Airways (India) Pvt Limited, KTB
Network, Kuala Lumpur Stock Exchange (KLSE),
MIH Group, Moody's Corporation, Mori Building
Company Limited, Murugappa Group, National
Bank of Dubai PJSC, National Investment Council,
Novolipetsk Metallurgical Combine (NLMK), NTL
Inc., Omnicom Group Inc., Oxygen Media Inc., Palm
Inc., Panama Canal Authority, Pequot Capital
Management, Inc., Peregrine Systems Inc., PKN
Orlen SA, Ports Customs & Free Zone Corporation,
Random House, Reader's Digest Association Inc.,
Ripplewood Holdings LLC, RVC-The Greenhouse
Fund, RWE AG, Saudi Arabian General Investment
Authority, Seiyo Food Systems, SK Telecom Co.,
Sonangol E.P., Superfos, Sybase Inc., Synopsys
Inc., TDC A/S, Thomas Cook AG, Timken
Company, TSX Group, Vattenfall, VIA Technologies
Inc., Viking Global Investors LP, Vulcan Inc. and
Zenith International Bank Ltd. www.weforum.org
17
 The business co-chairmen of the Annual Meeting 2002,
clockwise, from top left: Raymond V. Gilmartin,
Chairman, President and CEO, Merck and Co., Niall
Fitzgerald, Chairman, Unilever; Yotaro Kobayashi,
Chairman, Keizai Doyukai, Japan; Roberto Civita,
Chairman and CEO, The Abril Group

Partners Membership Development

Strategic Partners are select member companies
who strongly support the World Economic Forum's
commitment to improving the state of the world.
They are actively involved in the World Economic
Forum’s endeavours at global, regional and
industry levels. They contribute their expertise and
resources at the highest level in order to advance
worldwide economic and social progress.
“A knowledge-based economy without an open society
is impossible…You need the creativity of free people –
citizens – to run the heart of a productive knowledge-
based economy.”
Joschka Fischer, German Federal Vice-Chancellor and Minister of Foreign Affairs,
Annual Meeting 2002
Our members are at the heart of the World
Economic Forum and include 1,000 of the world's
foremost companies. Members encompass not
only the most global companies in the world, but
also regional market leaders and smaller
companies shaping the future of their industries.
The selection criteria for inclusion are quite strict.
Over the past year the World Economic Forum has
not only welcomed almost 100 new companies
into the organization but has also declined to
renew membership for a number of companies
who no longer meet the requisite criteria.
We are proud to report that, despite economic
pressures from a difficult global economy, the
World Economic Forum has maintained its number
of active members, which underlines its ability to
meet their needs and address issues of concern.

As of 30 June 2002, our strategic partners were:

ABB, Accel Partners, Accenture, A.T. Kearney, Audi,

Barco, The Boeing Company, Booz Allen Hamilton,
BP, Cisco Systems, The Coca-Cola Company,
Compaq, Deloitte Touche Tohmatsu, DHL
Worldwide Express, Ernst & Young, General Atlantic
Partners, Goldman Sachs, J. & W. Seligman & Co.,
IBM Corporation, KPMG, Kudelski Group,
McKinsey, Merck & Co. Inc., Merrill Lynch, Microsoft
Corp., Nestlé, Pfizer, PricewaterhouseCoopers,
Reuters, Siemens, Suez, Sun Microsystems, UBS,
Vivendi Universal and Volkswagen.

18
Our communities and constituencies
Communities
A key part of World Economic Forum activity is the
creation of distinctive communities of member and
partner companies, creating smaller, more informal
opportunities for interaction.
The International Business Council
The International Business Council (IBC) was
established by the Foundation Board in 2001/02 to
replace the Council of the World Economic Forum.
The IBC is an interactive community of concerned
and committed business leaders made up of 100
highly respected and influential chief executives. It
identifies and addresses globally relevant business
issues and develops practical solutions. It also acts
as an advisory body providing intellectual
stewardship to the World Economic Forum.
The IBC meets twice a year. It followed its inaugural
meeting, at the February Annual Meeting 2002 in
New York, with an August meeting in Geneva.
IBC members are nominated by a membership
committee, based on clear criteria and guidelines,
with selection based on the qualities of the
individuals and their companies. Council
membership is limited to two three-year teams,
other than in very exceptional cases when it is
extended to three three-year terms.
Engaging
leaders
Industry Governors
Another significant community is the World
Economic Forum's Industry Governors. These are a
group of CEOs selected from influential companies
within each of our designated industry groupings.
They engage with the World Economic Forum to
identify, discuss and address issues of primary
importance to their sectors and provide intellectual
stewardship to the Forum's efforts, such as
industry-specific initiatives and task forces and
industry-targeted sessions in meetings and events.
“We may come from different countries but, at this
moment in the world economy, we all speak the same
language: the language of change.”
Vicente Fox, President of Mexico, Annual Meeting 2002
Each year, during the last two days of the Annual
Meeting in Davos, each of these groups
assemble for a private, off-the-record discussion
to address non-competitive issues of mutual
importance and interest. Many of the World
Economic Forum's most impactful initiatives,
including the Global Digital Divide Initiative and the
Disaster Relief Network, stemmed directly from
these discussions.
www.weforum.org
19
 Our communities and constituencies
Constituencies
To complement the knowledge of members and
partners, the World Economic Forum engages a
wide range of individuals and organizations from all
sectors of society, whom it includes in its activities
as constituents.
Advisory Groups
In 2001/02, we created advisory groups to enable
other key stakeholders of the global economy to
engage in and help shape the World Economic
Forum's activities. The labour union, non-
governmental organization, academic and religious
leaders’ groups involved are made up of leading
figures from these segments of global society. They
provide advice and input into the development of
the World Economic Forum's meetings,
communities and initiatives.
“Financial ratings have become kind of second nature in the
business world. We must further explore the idea of social
and environment ratings.”
François Roussely, President and CEO, Electricité de France
These consultative arrangements are a vital part of
the World Economic Forum's commitment to
providing a non-partisan, multistakeholder platform
for dialogue and partnership. In addition, to maximize
the relevance of meetings and initiatives for policy-
makers, we consult extensively with leaders from
international organizations and governments.
20
A World Economic Forum director (far right), with two
Global Leaders for Tomorrow
Forum Fellows
The World Economic Forum relies upon a continuously
evolving group of about 300 experts and scientists
from all fields of knowledge. These people are at the
cutting edge of their disciplines and are considered as
leaders by their peers. We collaborate closely with this
faculty group to design the programmes of our
summits and meetings, as well as to develop the
various initiatives and task forces we undertake with
our members and partners.
Global Leaders for Tomorrow
The Global Leaders for Tomorrow (GLT) community
represents the new generation of leaders. The GLTs
are young but proven leaders from business, politics,
the arts, the media and civil society with a
demonstrated commitment to addressing issues
beyond their immediate professional interest.
The third annual GLT Summit, held in Geneva in
the late summer of 2001, provided an opportunity
to design the Global Agenda for 2010. In the
Annual Meeting 2002, in New York, GLTs
participated in the Special GLT Private Programme,
during which we held a breakfast with Bill and
Hillary Clinton and a private session with US
Secretary of State Colin Powell.
GLT programmes also form part of the regional
summits. In the last USA Meeting, the GLTs discussed
the US role in the Middle East. In the Africa Economic
Summit 2002 in Durban there was a joint NGO-GLT
discussion on the New Partnership for Africa's
Development (NEPAD).
Technology Pioneers
The Technology Pioneers programme was formed
in 2000 to provide new perspectives on the
technology horizon.
Each year, the World Economic Forum selects up
to 100 Technology Pioneers, who are chief
executives of companies that are developing and
applying the most innovative and transformational
technologies. Sixty-nine Technology Pioneers were
selected for the class of 2002, representing
companies engaged in cutting-edge work in
information technology, biotechnology and
renewable energy.
At the Annual Meeting 2002 in New York,
Technology Pioneers participated in a private
programme designed to explore synergies among
and between different technology sectors. In a
specially designed workshop, Technology
Pioneers, along with Governors of the information
technology, health and telecommunications
industries, discussed ways of applying innovative
technology to further economic and social
development in developing countries. At the USA
Meeting 2002, Technology Pioneers met privately
with executives in the technology industry to
discuss how to maintain an environment open to
innovation and entrepreneurial talent in a tough
and cynical economic climate.
Social Entrepreneurship
Javier Hurtado Mercado* has fostered a shift in
attitudes in his native Bolivia: transforming
peasants into empowered micro-entrepreneurs.
Hurtado’s company,
Irupana, makes organic
products, such as coffee,
honey, marmalade, dried
fruit and cereals.
The goods are sold
throughout Bolivia and
are now being
Javier Hurtado Mercado exported abroad.
Irupana buys direct from 1,700 family farms across
Bolivia. By cutting out the middleman and
concentrating on premium-priced organic foods,
Social Entrepreneurs
The World Economic Forum is working closely
with the Schwab Foundation for Social
Entrepreneurship, which supports enterprises
founded primarily for the public good.
The Schwab Foundation celebrates individuals
who identify and apply practical solutions to social
problems, by embracing business principles in
an innovative and resourceful way. It plays a
distinct but complementary role to the World
Economic Forum.
Each year, the Schwab Foundation selects a
number of outstanding social entrepreneurs. These
individuals are invited to the World Economic
Forum’s Annual Meeting and its regional summits.
These opportunities provide the social
entrepreneurs with both credibility and access to
potential sources of financial and in-kind support.
the company is able to pay its supplier farmers
25% more than market rates. Irupana encourages
the farmers to keep part of their harvest, so
improving their family diet.
By integrating poor communities into the Bolivian
agriculture value chain, Irupana is enabling people
formerly dependent on aid handouts to become
self-respecting businesspeople.
*Hurtado was one of a group of 60 outstanding
individuals appointed in 2001/02 to the Schwab
Foundation for Social Entrepreneurship network.
www.weforum.org
21
 Teamwork behind the scenes at the World Economic Forum.

22
Our people

A truly
international
team

The reputation of the World Economic Forum

depends entirely on its values, insight, knowledge Nationality Numbers Age Group Numbers
and people. Its community of highly committed
people provides quality expertise and support to American 17 20 to 24 13
members and constituents. Armenian 1 25 to 29 46
Austrian 2 30 to 34 46
The team at the World Economic Forum is truly Belgian 1 35 to 39 21
international. In the year under review, our people British 5 40 to 44 13
represented 26 nationalities. This range of cultural Canadian 5 45 to 49 10
experience is clearly important for us to be able to Chinese 1 50 to 54 7
support our global members and the participants Colombian 1 55 to 59 8
at our events around the world. Costa Rican 1 60 to 62 5
Danish 1 63 to 65 1
The World Economic Forum is a youthful Dutch 2 65 or older 1
organization with a current average age of 35 Finnish 1
years. That said, we have always believed it French 19
important to balance the fresh thinking that youth German 13
brings with the insights that come from long Irish 1
experience in world affairs. This blend of Italian 2
experience can clearly be seen by a breakdown of Jordanian 1
employee ages for the year under report. Of the Malagasy 1
171 people who work for the World Economic Malaysian 1
Forum, two-thirds are university graduates. Mexican 1
New Zealander 1
The remuneration policy in 2001/02 continued to Norwegian 3
combine the World Economic Forum’s status as a Spanish 3
not-for-profit foundation with the need to attract Swedish 2
the best people. Swiss 84
Thai 1
Forum staff are encouraged to engage in external
social and cultural activities provided there is no Nationalities 26
conflict of interest.

www.weforum.org

23
 Our organization
The Managing Board
The Managing Board acts as the executive body
of the Foundation Board. It ensures activities and
services fulfil the mission of the World Economic
Forum and represents it in its dealings with
outside parties. The Managing Board members for the
2002/03‡ are as follows:
Klaus Schwab
President and Founder, Aged 64
Qualifications: Swiss Federal Institute of Technology
and the Universities of Fribourg and Harvard. Degrees
include Doctorates in Mechanical Engineering and in
Economics (summa cum laude). Taught business
policy since 1969 and has been a Professor at the
University of Geneva since 1972. Author of several
books, the yearly Global Competitiveness Report
(since 1979) and many other publications. Founded
the World Economic Forum in 1971 as a not-for-profit
foundation building it into the foremost global
partnership of business, political, intellectual and other
leaders of society committed to improving the state of
the world. Recipient of numerous academic and
national honours for initiatives undertaken in the spirit
of entrepreneurship in the global public interest and for
peace and reconciliation efforts in several regions.
24
The 2002/03 World Economic Forum Managing Board.
From right, José María Figueres, Klaus Schwab, Frédéric
Sicre, Rick Samans, André Schneider and Michel Ogrizek
José María Figueres
Managing Director, Aged 48
Qualifications: Bachelor Degree in Engineering in 1979.
Joined the United States Military Academy (USMA) at
West Point in 1991 followed by MPA, Kennedy School
of Public Administration, Harvard University. Positions
held: General Manager, Fibers of Central America,
1980-84. President of the San Cristobal Agroindustrial
Group from 1984-87. Minister of Foreign Trade for
Costa Rica, 1987-88, becoming the Minister of
Agriculture from 1988-90 and President of Costa Rica
from 1994-98. Joined the World Economic Forum in
2000 as Managing Director. Additional posts held:
President of the Board of Leadership in Environment
and Development (LEAD), Member of the Board of
Directors: World Resources Institute (WRI), Stockholm
Environment Institute (SEI).
Frédéric Sicre
Managing Director, Aged 38
Qualifications: BA in Literature, Villanova University,
Philadelphia, Pennsylvania, USA. Positions held:
managing a communication centre within the NATO
organization, Germany. Programmer, News
Reporter for Radio Geneva Information and KTFM
radio stations, 1982-84. Joined the World
Economic Forum in 1989. In 2000, he became
Managing Director with direct responsibility for the
Centre for Regional Strategies.
Rick Samans
Director, Global Issues, Aged 44
Qualifications: BA in Economics and French from Tufts
University and a Masters in International Affairs from
Columbia University. Positions held: Corporate Lending
Officer, Credit Lyonnais USA, New York from 1981-84.
Legislative Assistant to a member of the House
Committee on Ways and Means from 1985-88.
Professional Staff Member and Senior Legislative
Assistant to the Chairman, Senate Banking
Committee; International Affairs Fellow, Council on
Foreign Relations, London and Washington DC from
1988-91. Associate Director and Staff Director for the
Subcouncil on Capital Allocation, Competitiveness
Policy Council, 1993-96. Economic Policy Adviser to
the Senate Minority Leader from 1996-99. Special
Assistant to the President for International Economic
Policy, USA, 1999-2001. Joined the World Economic
Forum in 2001 as Director, Global Issues and as an
Associate Member of the Managing Board.
André Schneider
Director, Resources and Knowledge Management,
Aged 43
Qualifications: Classical Orchestra Musician; Diploma,
Richard Strauss Konservatorium, Munich. PhD in
Computer Science, University of Geneva. Positions
held: the Philharmonic Orchestra of Berlin; the
Staatsheater Kassel; the Symphony Orchestra of the
Radio Saarland; the Lucerne International Festival
Orchestra. Researcher in parallel computers for the
European Community; various positions held with IBM,
including: Product Developer; Consultant and Principal,
IBM Consulting Group; Consultant for various
companies and organizations; Speaker on IT-related
topics. Joined the World Economic Forum in 1998,
appointed Director of Knowledge Management and an
Associate Member of the Managing Board in 2000.
Michel Ogrizek*
Director, Communications, Aged 55
Qualifications: Medical Doctor, University of Paris,
1974. Positions held: Chief Medical Officer at the
French Ministry of Cooperation from 1975-82.
Research Associate in the Department of Cultural
Anthropology and post-doctoral studies at Berkeley,
1982-83. Medical and Public Affairs Director, Africa
Region and Medical Director, Canada, at Warner
Lambert from 1983-87. Médecins Sans Frontières
trainer. From 1987-91, Director, Burson-Marsteller,
France. President and CEO, Hill & Knowlton, France,
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.
‡
During the year 2001/02, Donna Redel (Managing
Director) and Charles McLean (Director of
Communications) left the Managing Board.
*Joined the Managing Board in mid-2002.
www.weforum.org
25
 Our organization
Corporate Governance
The organizational structure is permanently under
review in our continuous effort to ensure that we
are responsive to the evolution of the world and
are meeting the needs of our stakeholders.
“If the big economies slow and the big economies get the
sniffles, the rest of us get pneumonia. There is a need to
pursue growth with the big guys and the small guys.”
Mike Moore, Director-General, World Trade Organization, Annual Meeting 2002
The Foundation Board
The Foundation Board acts as the guardian of the
World Economic Forum's mission, values and brand,
inspiring business and public confidence through an
exemplary standard of governance. This includes:
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.
The Board comprises 15-24 eminent individuals
from business, politics, academia and civil society,
each serving a three-year term. The membership
criteria include integrity, global vision, leadership
experience and participation in world affairs.
26
Structured
to meet
stakeholders’
needs
The Foundation Board members for the year
2002/03* are:
• Klaus Schwab, President of the Foundation Board
• William I.M. Turner, Chairman and CEO, Exsultate
Inc., Canada; Vice-Chairman of the Foundation Board
• Josef Ackermann+, Spokesman of the Board, and
Chairman of the Group Executive Committee of
Deutsche Bank AG, Germany; Vice Chairman of the
Foundation Board
• Kurt Alig, Chairman, Arcadia Treuhand AG,
Switzerland; Secretary of the Foundation Board
• Peter Brabeck-Letmathe+, Vice-Chairman and CEO,
Nestlé SA, Switzerland
• Lord Carey of Clifton+, Former Archbishop of
Canterbury, United Kingdom
• Flavio Cotti, Former President of Switzerland
• Michael S. Dell, Chairman and CEO, Dell Computer
Corporation, USA
• Niall FitzGerald+, Chairman, Unilever Plc,
United Kingdom
• Rajat Gupta, Managing Director, Worldwide,
McKinsey & Company Inc., USA
• Nobuyuki Idei, Chairman and CEO, Sony
Corporation, Japan
• Caio Koch-Weser, Secretary of State
of Finance, Germany
• Graça Machel+, Chairperson, Foundation for
Community Development, Mozambique
• Henry McKinnell+, Chairman and CEO, Pfizer Inc., USA
• Heinrich von Pierer, President and CEO,
Siemens AG, Germany
• Peter Sutherland, Chairman of Goldman Sachs
International; Chairman of British Petroleum
Company Plc, United Kingdom
• Ernesto Zedillo+, Director, Yale Center for the Study
of Globalization, USA; Former President of Mexico
During the year under report, and at the
Foundation Board meeting of 4 November 2002,
the following Foundation Board members retired
due to their age or to other reasons: they were
Percy Barnevik, Raymond Barre, Ronnie C. Chan,
Guy Fontanet, Helmut Maucher, Jean-Marie
Messier, Ferdinand Piech and Maurice F. Strong.
The Foundation Board would like to express their
gratitude to all outgoing members. In particular,
they would like to give their heartfelt thanks to
Guy Fontanet, for his wisdom, dedication and
loyalty, and to Raymond Barre and Maurice Strong
for the great contribution they have made to the
development of the World Economic Forum since it
was first created.
+ Appointed on 4 November 2002.
The Committees of the Foundation Board
The Foundation Board appoints four Committees from
among its members:
• The Executive Committee defines the rules of
procedure of the Foundation Board and represents
the World Economic Forum to third parties.
• The Audit Committee ensures compliance with all
financial, accounting and control processes.
• The Evaluation and Remuneration Committee
recommends candidates for positions on the
Managing Board.
• The Mission Compliance Committee reviews
Forum policies, strategies and activities in light
of its mission.
Practice Structure
In 2001/02 the World Economic Forum organized its
work into three integrated practices.
The Centre for the Global Agenda
The Centre for the Global Agenda (CGA) monitors and
analyses global issues to provide content for the World
Economic Forum’s annual, regional, country and
industry meetings. It stimulates thinking and dialogue
by organizing task forces and other initiatives involving
different regions, intellectual disciplines and
stakeholders in the world economy.
The CGA also manages the World Economic
Forum’s engagement with its constituencies,
including the academic and scientific communities,
business trade bodies, international organizations,
labour leaders, non-governmental organizations,
religious leaders, Technology Pioneers and Global
Leaders for Tomorrow.
(See www.weforum.org/globalagendamonitor)
The Centre for Global Industries
The Centre for Global Industries (CGI) handles relations
with the World Economic Forum’s membership. The
CGI is divided into five broad industry groupings, to
allow the development of expertise and special
relationships with members covering: basic industries,
communications and technology, consumer goods
and health, financial services and mobility industries.
The Centre for Regional Strategies
The Centre for Regional Strategies (CRS) provides
members and constituents with a series of
outcome-oriented summits in markets of major
strategic interest. It builds communities of leaders
drawn from business, politics, academia, religion,
media and other areas of civil society who share
the World Economic Forum’s mission.
The regional summits allow members and
participants to share, face-to-face, information and
insights on key developments and trends of regional
significance. They also give the issues an audience
which extends to all stakeholders of global society.
CRS works closely with both CGA and CGI, with
the regional summits serving as a platform for the
World Economic Forum’s global initiatives.
Partnerships
The World Economic Forum also seeks partnerships
with like-minded institutions. It has, for example,
NGO consultative status with the Economic and
Social Council of the United Nations and works
closely with the Prince of Wales International
Business Leaders Forum and the World Business
Council for Sustainable Development.
www.weforum.org
27
 Participants in the Annual Meeting 2002 were each offered a ‘Davos Companion’. This hand-
held Compaq iPAQ with wireless LAN allowed them to download e-mails, find information
about the programme, book places in sessions and transfer digital images.

28
Our organization
Information Technology and
Knowledge Management
The World Economic Forum’s strength lies in its
ability to coordinate the unique resources of its
global membership and multistakeholder
constituencies. It is dedicated to achieving its
strategic vision by developing a core of world-class
skills and systems that will support its mission.
The World Economic Forum hosts a large number
of virtual communities, which provide extensive
information to its partners, members and the
general public.
In 2001/02, the World Economic Forum
successfully completed a number of initiatives
in support of its information technology and
knowledge management needs.
These initiatives included:
• An enhanced technology platform providing
better tools, such as an integrated event
management and constituent relationship system
• A strengthening of the World Economic
Forum’s knowledge hub to provide a more
stable IT platform
• Improved security options to protect internal
data and systems
Sharing
knowledge
The World Economic Forum further improved its
external processes by launching some key projects:
• The implementation of a new Internet site
including a content management tool, knowledge
navigator and other facilities, to increase
interaction between members and partners
• Twenty distinct initiatives for the Annual Meeting
2002, including the first-ever wireless
infrastructure to provide participants with event
information and late-breaking news. The solution
combined kiosks and hand-held computers,
helping to keep participants in touch with each
other and the outside world.
“We have to use technology responsibly for the good
of the entire created order.”
Anglican Archbishop Njongonkulu Ndungane, Archbishop of Cape Town,
Annual Meeting 2002
Looking to the future, the World Economic Forum
aims to build on its stable IT platform with further
enhancements and an improved knowledge
management environment.
www.weforum.org
29
 Sharing knowledge
Communications
A Policy of Transparency and Openness
Communication plays an integral part in achieving
our mission. The World Economic Forum can only
bring a finite number of people together at its
events. Communication enables us to share the
insights and expertise of our members with the
wider global community.
The World Economic Forum believes that
transparency is an essential part of good
governance. In view of the importance of our
activities, we must communicate openly and
transparently. This is why we share full information
about our activities and internal operations with our
stakeholders through our website and printed
publications. We also fully integrate media leaders
into debates at our summits and meetings.
Our strategy of developing relationships with the
mainstream media, as well as the business press,
and the openness of our organization contributed
to largely positive press coverage during the year.
The Annual Meeting 2002 in New York resulted in
particularly constructive editorial.
In 2001/02, we forged several strategic
partnerships with the media. These included
collaborations with Time magazine, with which we
have a dedicated partnership around Technology
Pioneers (see www.weforum.org/techpioneers), and
Newsweek International, for which we provided
theme ideas, contacts and survey data for four
2002 editions. (For further information see
www.weforum.org/media)
30
Online Access to Information
The Internet enables us to provide large amounts of
information to our stakeholders. In November 2001
we relaunched our website. This was an immediate
success with hits on the site doubling over the
previous year’s figures. During the peak period of
January 2002 the members’ area of the site
averaged 500 visits a day.
Dialogue with NGOs
We continued to build communications bridges with
non-governmental organizations and constructive
anti-globalization movements. In many cases we
share common humanitarian goals with these
organizations, despite having different views on
how to achieve a significant improvement in the
state of the world.
In 2001/02, the World Economic Forum invited key
non-governmental organizations to be involved in
task forces, initiatives and public debates. Sixty
global NGOs were represented at the Annual
Meeting 2002 including Amnesty International,
WWF, Save the Children, Oxfam, Terre des
Hommes, Transparency International and Human
Rights Watch.
Our mission and strategic vision
Our values and principles
Our mission
and strategic vision
The World Economic Forum is an independent,
international organization committed to improving the
state of the world.
In aiming to achieve this mission, the World Economic
Forum embraces new challenges by developing initiatives
which support its core principles and values. These are to:
• Provide a collaborative framework for world leaders to
address global issues
• Promote entrepreneurship in the global public interest
• Maintain a non-partisan and independent position
Our Vision
The World Economic Forum will be a leader in identifying
strategic issues and will provide a platform for decision-
makers to effect constructive change.
The World Economic Forum facilitates dialogue between
corporate, political, intellectual and other leaders on
matters of global, regional, corporate and industry
importance. It facilitates discussion, acting as a catalyst
for the development and coordination of key strategic
insights. The World Economic Forum is changing. It is
evolving from a global event provider to becoming a body
that offers a world-class knowledge base and which
identifies strategic issues.
Our Value Proposition
The World Economic Forum aims to facilitate:
• Dialogue between chief executives of world-leading
companies and key stakeholders in global society
• Early identification and definition of issues of
central importance
• Focused engagement enabling global change
The World Economic Forum will play a unique and essential
role in identifying issues on all levels that could affect its
partners, members and global citizens. The World
Economic Forum supports its members and partners in
major aspects of global effort through multistakeholder
collaboration and public/private partnership. Its ability to
provide a neutral ground for discussion is a fundamental
component of its vision and mission.
Any initiative proposed must:
• Conform with the World Economic Forum’s mission of
improving the state of the world
• Act in the interests of its members
• Address an issue of significant global, regional, corporate
or industry importance
• Be unique to the World Economic Forum
• Reflect distinctive competencies within the World
Economic Forum
Our values and principles
The World Economic Forum’s task is to be a credible,
independent broker, characterized by intellectual integrity,
commitment and strong principles.
The World Economic Forum is guided by a set of
core principles:
• The stakeholder concept: Companies should serve all
stakeholders to form a community of destiny.
• Cooperation not confrontation: World improvement will
occur through joint effort by:
Bonding – defining problems together
Binding – defining joint objectives
Building – defining joint action
• Global entrepreneurship: Creates societal progress.
Economic activities should serve the global public interest.
• Corporate citizenship: Companies must take short and
long-term social and environmental responsibility.
• Globalization: The need to globalize globalization:
Globalization should be supplemented by political and
social measures.
• Global responsibility: Shared values are necessary to
provide a framework for global decision-making.
• Social entrepreneurship: Global cooperation at the
leadership level has to be supplemented by concrete
actions on the ground. Social entrepreneurs are a key
driver for societal transformation and progress.
The World Economic Forum promotes the protection of
the environment and sustainable development, fulfilling a
global environmental stewardship role. It respects
different cultures, cultivating an environment that values
diversity and inclusiveness.
The World Economic Forum strives to be the key builder of
global communities:
• Those fully integrated into the World Economic Forum,
such as members
• Those providing advice, such as the constituency
advisory groups
• Those who have autonomy but share and support the
World Economic Forum’s mission, such as the International
Business Council and the Global Leaders for Tomorrow
As an organization ‘without borders’ at the heart of the
communities it serves, the World Economic Forum
combines a range of approaches to support its mission,
such as seconding employees to members to help them
achieve their goals.
The World Economic Forum promotes learning and
knowledge through group interaction, shared experience and
expertise. It maintains high-level learning communities by:
• Understanding what makes them successful
• Developing and experimenting new technologies that
support virtual interaction and knowledge sharing
• Structuring itself as a best practice learning organization www.weforum.org
31
 Our financial
results

The World Economic Forum’s financial policy Auditors

states that membership fees should cover
operational costs, that events are funded through
participation fees, and that projects are supported
by the income from partnership contracts.
Approximately 5 to 10% of the World Economic
Forum’s income each year is saved to strengthen
its reserves for new initiatives. This year the surplus
added to Foundation Capital was Sfr. 3,118,445.
The World Economic Forum’s financial results are
audited by PricewaterhouseCoopers who examine
the balance sheet and accounts. The annual
report, as well as all institutional documents, are
submitted to the Swiss Federal Government, which
acts as the supervisory body of the Foundation.
Total Income 1997-2002
figures in Swiss francs

The World Economic Forum may accept

donations, legacies, grants and other contributions
or subsidies that are consistent with its purpose
of ‘integrating leaders from business, politics,
science and society at large into a community
for global action committed to improving the state
of the world and the well-being and prosperity of
human society’.
61,100,642
51,890,452

51,306,002

63,806,052

72,195,453

The World Economic Forum makes no payments to

political personalities, parties or other organizations
and avoids involvement in internal politics.

1997/ 1998/ 1999/ 2000/ 2001/

1998 1999 2000 2001 2002

32
Key figures

Year 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002

Total income* 51,890,452 51,306,002 61,100,642 63,806,052 72,195,453

out of which
members’ fees 18,761,000 20,915,531 22,106,920 23,588,125 24,965,367
participation fees 26,972,981
partnership 18,946,940

Total expenditure 51,047,818 50,380,441 59,416,135 63,556,294 69,077,008

out of which
personnel costs 27,097,659
office costs 10,642,445
activity-related costs 31,336,904

Surplus to be
added to the
Foundation capital 842,633 925,560 1,684,507 249,759 3,118,445

Foundation capital 6,136,481 7,062,041 8,746,549 8,996,308 12,114,753

Total staff
Full time 73 68 81 125 139
out of which are seconded
by Forum members 4
Part time 26 24 22 22 28

In its continued effort to support the Forum strategy, in 2001 the Forum continued to invest particularly
in its human resources, which was reflected in an increase of personnel costs of 14.96%.

* all key figures in Swiss francs

 Designed and edited by Wardour Communications

Contact details:

World Economic Forum,

91-93 route de la Capite,
CH-1223 Cologny/Geneva,
Switzerland

Telephone +41 (0)22 869 1212

Fax +41 (0)22 786 2744
e-mail: contact@weforum.org
www.weforum.org