Annual Report 2002/2003

Building trust, peace

and reconciliation
Queen Rania of Jordan, member of the World Economic Forum Foundation Board, visits a school
information technology lab as part of her project to computerize education. The project
introduces IT to students and enhances Jordan’s human resources by equipping the people with
the necessary skills to compete in the global economy.

Foundation Board members

Klaus Schwab, Executive Chairman 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, 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, CEO, Nestlé SA, Switzerland
Lord Carey of Clifton, Former Archbishop of Canterbury,
UK
Victor L. L. Chu, Chairman and CEO, First Eastern
Investment Group, Hong Kong SAR
(appointed: 21 August 2003)
Flavio Cotti, Former President of Switzerland
Michael S. Dell, Chairman of the Board and CEO,
Dell Computer Corporation, USA
Niall FitzGerald, Chairman, Unilever Plc, UK
Rajat Gupta, Senior Partner, Worldwide, McKinsey &
Company Inc., USA
Nobuyuki Idei, Chairman and CEO, Sony Corporation,
Japan
Caio Koch-Weser, Secretary of State of Finance of
Germany
Henry A. McKinnell, Chairman and CEO, Pfizer Inc., USA
Heinrich von Pierer, President and CEO, Siemens AG,
Germany
H.M. Queen Rania of the Hashemite Kingdom of Jordan
Peter D. Sutherland, Chairman of Goldman Sachs
International; Chairman of British Petroleum Company Plc,
UK
Ernesto Zedillo Ponce de Leon, Director, Yale Center for
the Study of Globalization; former President of Mexico
 The World Economic
Forum is the foremost
global community of
business, political,
intellectual and other
leaders of society
committed to improving
the state of the world

Contents
The Executive Chairman’s statement 2

Annual Meeting 4

Extraordinary Annual Meeting 8

The regional agenda 10

Task forces and initiatives 14

Our members and partners 21

Our communities and constituencies 23

Our people 26

Our organization 28

Our financial results 34

Our mission and values 36

www.weforum.org

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
2002/2003 was another challenging year for the
international community, as war in Iraq, instability
in the Middle East region and financial volatility
continued to threaten global stability. Against this
troubled background, the members, partners
and staff of the World Economic Forum worked
hard towards our goal of improving the state of
the world.
The Annual Meeting 2003, which returned to
Davos after the 2002 sojourn in New York, again
demonstrated how the World Economic Forum
acts as a platform for addressing challenging ideas
and as a prompt to delivering timely approaches
to major global issues.
Significant outcomes included:
• The launch of the World Economic Forum Global
Governance Initiative to evaluate progress towards
the UN Millennium Declaration goals
• The news that US company, Pharmacia
Corporation, was to expand access to drugs for
the world’s poorest people, particularly in regard
to HIV/AIDS medication
• The announcement by the Bill and Melinda Gates
Foundation of a US$ 200 million donation to
establish the Grand Challenges in Global Health
Initiative, to research diseases that are a particular
blight to the developing world
In today’s increasingly complex and interlinked
world, global leaders can only resolve major issues
and gain strategic understanding by working
together. The World Economic Forum’s
2
Building trust,
peace and
reconciliation
Extraordinary Annual Meeting in Jordan, in June
2003, proved this truth once again.
The Extraordinary Annual Meeting provided a timely
opportunity for world leaders to come together and
progress towards reconciliation and reconstruction,
in the immediate aftermath of the Iraq war.
As is customary with World Economic Forum events,
the Extraordinary Annual Meeting established
relationships and communication channels that will
endure far beyond the meeting room. In particular,
the establishment of the Arab Business Council
created an important forum for a community
destined to play an integral part in shaping the future
prosperity and security of the Middle East.
Such Extraordinary Annual Meeting milestones,
along with those achieved at the Annual Meeting
2003 and our regional summits, emphasized
the continuing relevance of the World Economic
Forum in addressing complex issues faced by
the global community.
Our summits are just one of the ways we deliver
value to the senior business leaders that constitute
our membership. In 2002/03, we continued to offer
structured assistance to help CEOs excel across
their key fields of responsibility. For instance, our
internal team, supported by industry and academic
experts, provided dedicated support in such areas
as crisis management, corporate citizenship, global
competitiveness and motivational techniques.

It is testimony to the value we provide to our
members that, during the year, additional key
members signalled their greater commitment
to the World Economic Forum by becoming
strategic partners.
The World Economic Forum enhanced its
credibility as an initiator of private-public
partnerships with the August 2003 appointment
of Philippe Bourguignon to the Managing Board.
Philippe, whose previous roles included being
chairman and CEO of both Club Méditerranée and
Euro Disney, brings huge international experience
in corporate development.
Our finances remained stable during the year,
despite the effect of a tough economic climate
on our members. In the year, our income dropped
by 8% to Sfr. 66,454,727, largely reflecting the
return to more customary levels of participation in
the Annual Meeting, after the hugely increased
number of participants in New York.
To ensure that the World Economic Forum remains
a sustainable and unique organization for its
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.
The World Economic Forum will continue to
develop its offering, as a means of ensuring its
members achieve outstanding performance.
His Majesty King Abdullah II of Jordan, left, and Kofi Annan,
Secretary-General of the UN, centre, with Klaus Schwab
In particular, we will continue to provide strategic
advantage, by virtue of our role as one of the
world’s leading strategic insight bodies.
Our determination to increase the value we provide
is all part of our commitment to improving the state
of the world. We believe this will be best achieved
through activities which promote economic and
social development: a path that requires the active
collaboration of all stakeholders in society. Having
built a unique position of trust, over three decades,
at the heart of the world’s leadership communities,
we believe we are in the best position to bring
these stakeholders closer together, both
intellectually and geographically. We owe it to
our members – and the wider world – to continue
finding better and better ways of doing just that.
With the Forum so firmly at the centre of world
events, it gives me great pleasure to report that
the Foundation Board has entrusted me to build
further on our success and to use the next five
years to transform the Forum into the leading
organization dealing with the challenges of the
21st century.
www.weforum.org
Klaus Schwab
Founder and Executive Chairman,
The World Economic Forum
3
 Annual Meeting,
back in Davos

Loyola de Palacio, Vice-President of the European Commission,

during a session on the volatility of oil prices

In 2003, the World Economic Forum’s Annual

Meeting returned to its home in Davos,
Switzerland, following its relocation to New York
the previous year in the aftermath of the terrorist
attacks of September 11.

The Davos Meeting was convened in a climate

A citizen wears an ‘I love WEF’ sign in his hat during the
Annual Meeting 2003 in Davos
Ratio of Annual Meeting participants 2003
Religious leaders
Technology Pioneers
Business
of global uncertainty that had seen the breakdown
of trust in many sectors of society. There was little
confidence in the ability of public institutions to
govern effectively for the global common good and
a lack of trust in business’s accountability towards
society. There was also rising uncertainty about
the consequences of a military conflict with Iraq
and over the prospects for the recovery and
sustained growth of the global economy.
For six days, 2,311 participants, including 24
heads of state and the chief executives of many
of the world’s most influential companies, held
discussions around the theme of Building Trust.
They focused on the key topics of trust and
NGOs values, security and geopolitics, global
Global Leaders for Tomorrow
governance, prospects for the global economy
Academia
and corporate challenges.
Other constituents
Media Our ability to bring together leaders from business,
Fellows/ government, academia, the media and civil society
Leaders
provided a unique platform for dialogue. Among
the participants were high level representatives
from 99 countries, with more than a quarter
Public figures
coming from the developing world. They included

4
Luiz Inácio Lula da Silva, President of Brazil, addresses
Annual Meeting participants
34 religious leaders, 72 NGO representatives,
172 academic experts, 226 public figures and 268
leading editors. For the first time the media group
included famous editorial cartoonists whose piercing
art has a significant effect on public opinion.
The crisis in Iraq dominated much of the
discussion and eventually led to the convening
of the Extraordinary Annual Meeting in Jordan.
Post-war reconstruction in Afghanistan was
also high on the agenda, with the participation
of Abdullah Abdullah, Afghan Minister of
Foreign Affairs.
The presence in Davos of a US delegation led
by Secretary of State Colin Powell and leading
representatives from the Middle East was a clear
demonstration of the World Economic Forum’s
unique ability to bring leaders together to seek
alternative solutions to global problems.
While the Middle East was a major topic, the
Annual Meeting was a focal point for discussions
on the challenges facing the emerging regional
powers. New Brazilian president Luiz Inácio Lula
da Silva spoke for many developing nations when
he called for international trade agreements to give
them greater access to developed markets.
From among a strong South American group,
President Vicente Fox of Mexico called on
participants to exercise ‘economic citizenship’.
Irene Khan, Secretary-General, Amnesty International, UK,
during a discussion on identifying priorities
“We need a global development strategy that
integrates competition and efficiency with
equality of opportunities and solidarity. We need,
and we must link together, economic and social
policies,” he said.
“It is vital that we build a world economic order that can
satisfy the yearnings of those billions of people who are
today excluded from the extraordinary scientific and
technological advances that mankind has achieved.”
President Luiz Inácio Lula da Silva of Brazil, at the Annual Meeting 2003
In the global corporate arena, trust in large
companies has been severely eroded by recent
corporate scandals. During the Annual Meeting
the results of a survey of signatories of the Joint
CEO Statement on Corporate Citizenship,
launched in New York in 2002, were unveiled.
The results revealed a shift in corporate behaviour,
with many companies seeking to further integrate
ethical behaviour into their business practices.
The survey of CEOs from 16 countries and 18
industry sectors also found that many companies
have now established board-level committees to
lead their corporate citizenship strategies.
www.weforum.org
5
 Annual Meeting

Heizo Takenaka, Japanese Minister of State for Financial Services,

Economic and Fiscal Policy, during a session on putting the Japanese
economy back on track

While the Annual Meeting was once again a
catalyst for discussion, it also provided the
launching pad for significant practical actions
to tackle global issues:
• The World Economic Forum launched the Global
Governance Initiative to evaluate progress in the
global effort to implement the ambitious
economic, social and environmental goals set
out in the United Nations Millennium Declaration
“Social and economic Darwinism destroys trust in
one another and demoralizes society. The long fight
for individual freedoms has ultimately resulted in a
boundless egoism.”
Pascal Couchepin, President of the Swiss Confederation,
• The Bill and Melinda Gates Foundation
announced a US$ 200 million grant to establish
the Grand Challenges in Global Health Initiative,
a partnership with the US National Institutes of
Health. The grant will increase research into
diseases that cause millions of deaths in the
developing world
• As part of efforts to improve economic and
social prospects in Africa, more than 50
companies operating in the region signed
covenants pledging to follow good corporate
governance and promote ethical practices
• Religious leaders from different faiths shared
messages of tolerance during a session on
coexistence. They agreed that there is no
intrinsic reason for people of different religions
to be in conflict

at the Annual Meeting 2003

For more about the Annual Meeting 2003 visit
www.weforum.org/annualmeeting
• Pharmacia Corporation, a US-based
pharmaceutical company, announced the launch
of a pilot model for expanding access to
medicines for the poorest populations in the
developing world. The not-for-profit programme,
in partnership with the International Dispensary
Association Foundation, will increase access to
medicines for HIV/AIDS

6

Open Forum Davos 2003
Thousands of Davos citizens participated in the first
ever series of World Economic Forum public debates.
The inaugural Open Forum Davos ran alongside
the Annual Meeting 2003. It was co-organized
by the World Economic Forum and civic society
groups, including churches, fair trade organizations
and the Swiss Red Cross.
The programme of seven debates provided
an open platform for frank discussion around
challenging aspects of globalization, with topics
ranging from ‘Can Globalization be Ethical?’
to ‘Are Children’s Rights Merely for Show?’
The free debates were attended by more than
2,000 people, including local schoolchildren,
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.
Speakers were nominated by both the World
Economic Forum and the participating NGOs.
They included leading international figures,
such as Peter Brabeck-Letmathe, CEO of Nestlé,
and Alec Erwin, South African Minister of Trade
and Industry.
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
The staging of the Open Forum Davos reflected
a desire to make a ‘living bridge’ between the
main Annual Meeting, critical NGOs and the
local community, as a means of making the
World Economic Forum’s mission more accessible
and transparent.
Two peaceful demonstrations, by members of the
Open Forum Davos audience, occurred during the
course of the programme. One group staged
a silent protest, with placards, against globalization
and the role of multinational companies, while the
second group read out a critical statement during
a debate on migration.
The Open Forum Davos is set to become a regular
feature of the Annual Meeting, with next year’s
debates being around the theme of Globalization
and Deglobalization for the Benefit of the Poorest.
www.weforum.org
7
 Extraordinary
Annual Meeting
in Jordan

Paul Bremer, US Chief Administrator in Iraq, was among a high-level

US delegation that took part in the World Economic Forum’s
Extraordinary Annual Meeting in Jordan

As the aftermath of war in Iraq threatened to

destabilize an already volatile Middle East, the
World Economic Forum convened its first ever
Extraordinary Annual Meeting to provide a platform
for peace and reconciliation.

Based on the theme Visions of a Shared Future, the

meeting took place beside the Dead Sea, in Jordan,
under the patronage of His Majesty King Abdullah II
and brought together more than 1,200 business,
political, religious, cultural and other leaders from
65 countries. The US delegation included Secretary
of State Colin Powell, US Chief Administrator in Iraq
Paul Bremer, and Richard Lugar, Chairman of the
US Senate Foreign Relations Committee.

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
Development, and the late Sergio Vieira de Mello, Special
Representative of the UN Secretary-General
Another significant development was the launch
of a US-Middle East Free Trade Area, a region-
wide agreement to open trade both with the US
and between Arab nations.
Building on the participation of a strong Arab
presence at the Annual Meeting in Davos,
the Arab Business Council was launched to
proactively support responsible reform and more
liberal economic policies.
The World Economic Forum believes such initiatives
are needed to begin to address the economic
challenges that are currently facing the region.
Despite economic growth, incomes have stagnated
following a rapid increase in the population. The
region missed out on the boom in foreign direct
investment (FDI) in the 1990s and now only
accounts for 1% of FDI. Such factors now threaten
prospects for improved social welfare.
To reinforce efforts to achieve a lasting peace
between Israel and Palestine, attempts were made
to broaden support for the Roadmap for
Peace, that had earlier been endorsed by the
Quartet of the US, European Union, Russia and
the United Nations.
The Quartet: Kofi Annan, UN Secretary-General; Colin Powell, US
Secretary of State; Igor Ivanov, Minister of Foreign Affairs, Russian
Federation, and EU High Representative Javier Solana Madariaga
The summit also provided a platform for the foreign
ministers of Israel, the Palestinian Authority, Jordan
and Egypt to present their visions for the future of
the region.
“The summit demonstrated that the effort to build
a better world must begin with a joint endeavour to
redefine the values that we share. As was discussed
during the summit, peace is paramount to business
in the region and business is paramount to peace.”
Kofi Annan, UN Secretary-General, following the Extraordinary Annual Meeting
Although many obstacles to peace and prosperity
remain, the Extraordinary Annual Meeting provided
a unique platform for leaders from across the
region and the world to discuss their differences
and, following the disruption of the Iraqi war, to
begin planning a more prosperous and secure
future for the Middle East.
For more about the Extraordinary Annual Meeting
visit www.weforum.org/annualmeetingjordan
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
Our regional agenda focuses on high priority issues
relevant to members operating around the world.
In close cooperation with our regional partners,
we continued to pursue a programme to encourage
each region’s economic and social development.
In 2002/2003, the World Economic Forum summits
in Europe, the Middle East, Africa, East Asia and Latin
America brought together thousands of leaders to
define, discuss and advance the key issues in their
regions. We also convened specific country-related
meetings in Brazil and India.
Asia Pacific and China
Our East Asia Economic Summit 2002, in Kuala
Lumpur, Malaysia was a launch pad for dialogue,
initiatives and commitments on key issues facing
the region. The summit’s themes included business
challenges, competitiveness, diversity, regional
integration, governance and growth. See
www.weforum.org/eastasia
To further address the challenges posed in the future
by the increasingly complex nature of Asian business
and diplomacy the summit saw the launch of a
community of New Asian Leaders. This group of
outstanding young leaders from business, government,
civil society and academia are committed to economic
and social development in the region. At a retreat in
Seoul in 2003 the New Asian Leaders met to review
their ‘Blueprints for a New Asia’ and discussed their
plans with Korean President Roh Moo-Hyun.
The India Economic Summit 2002 focused on
economic reforms, trade and investment,
Encouraging
economic
and social
development
manufacturing industries, financial services, energy
and geopolitics. It identified the challenges that the
nation must overcome to succeed. The India
Advisory Council continued to promote the
achievements and progress made in the country.
Its enlargement to include non-Indian members,
including European, American and Chinese leaders,
has increased the council’s global influence. For
further information, visit www.weforum.org/india
“I believe Asia’s future rests upon its ability to harmonize the
region’s diversified characteristics and to develop a sense of
unity and, at the same time, a sense of interdependence.”
Thaksin Shinwatra, Prime Minister of Thailand, East Asia Economic Summit
In 2002/2003, China remained one of the world’s most
impressive economic performers, enjoying sustained
growth, improved competitiveness and a steady
increase in foreign direct investment. However,
economic activity in the Asia Pacific and China region
was severely disrupted by uncertainty surrounding the
spread of Severe Acute Respiratory Syndrome (SARS),
which also had the effect of forcing us to postpone our
China Business Summit.
In Japan, deflation remained a major problem and
the country continued to struggle with the challenges
of globalization. The Japanese sub-group of the New
www.weforum.org
Asian Leaders presented their blueprint for change
at the Annual Meeting 2003. Their suggestions
included the deregulation of unproductive industries
to improve competitiveness.
11
 The regional agenda
Africa and the Middle East
The World Economic Forum continued to play a key
role in building business support for the New
Partnership for Africa’s Development (NEPAD), and
its alignment of politicians, business and civil society
behind an ambitious economic and social
development programme.
“A lot of the world is sceptical about us, believing that
we Africans are not serious about ourselves. We have
to prove that the will to implement the NEPAD is there.”
Thabo Mbeki, President of South Africa, Africa Economic Summit 2003
The NEPAD’s first projects included the E-Schools
Initiative, which was launched at the Africa Economic
Summit in Durban with the aim of giving the continent’s
children the skills they need to prosper in today’s
information society. See www.weforum.org/africa
The Durban Summit also saw the launch of a drug
development collaboration between the Medicines
for Malaria Venture and GlaxoSmithKline, while the
Global Alliance for Improved Nutrition announced plans
to bring food fortified with vitamins and minerals to
some developing countries. There was a further
encouraging development at the Annual Meeting in
Davos when 50 companies operating in Africa pledged
to follow good corporate governance and promote
ethical business practices.
Against a background of war in Iraq and continued
tension between Israel and the Palestinians, the
World Economic Forum continued to seek solutions
to the region’s social and economic challenges. The
World Economic Forum’s 2002/2003 Arab World
Competitiveness Report revealed that growth
had stagnated since the 1980s. Noting the
implications of the steep rise in population, the report
stressed the need for job creation and improved
education systems.
We held the first Arab World Competitiveness
Meeting in Geneva in September 2002. Over 250
business and political leaders from the region, as well
as selected multinational corporations and international
organizations, took part. During the event, Arab
business leaders pledged 20% of their corporate
citizenship or philanthropy budgets to projects aimed
at bridging the digital divide between the region and
the world’s most developed nations.
12
To improve the competitiveness of Arab nations and to
build a broad-based tier with the West, the
Extraordinary Annual Meeting in Jordan became the
launch pad for the creation of the Arab Business
Council and the Council of 100 Leaders.
Despite such efforts, the difficulties in the region were
further highlighted in August 2003 when a car bomb
attack on the UN headquarters in Baghdad killed 22
people. In a tremendous loss, Sergio Vieira de Mello,
a participant in the Extraordinary Annual Meeting and
special representative of the United Nations Secretary-
General in Iraq, was killed in the explosion.
Europe
At both the European Economic Summit in
Salzburg and our Annual Meeting in Davos we
brought together leaders from business, politics
and civil society from the European Union and the
accession countries to discuss the challenges for
the enlarged region. They focused on integrating such
emerging regions as South East Europe into
mainstream economic activity. To support this goal we
convened our first South-East Europe Meeting in
Athens. Around 300 business and political leaders
from 31 countries, including seven heads of state,
participated. We also sought to involve Russia in the
future of Europe, promoting dialogue between Russian
and European leaders.
2002/2003 was also notable for strengthening links
between Turkey and the World Economic Forum.
A large delegation took part in the Annual Meeting
2003, including the then prime minister Abdullah Gul
and Recep Tayyip Erdogan, Chairman of the AK Parti,
who later went on to become prime minister. Turkey
was also represented at ministerial level at the
South-East Europe Meeting.
North America
The US economy remained the main engine for
global economic growth driven by innovative
technology, as explored in the World Economic
Forum 2002/2003 Global Competitiveness
Report. At the same time that the Iraq war caused
tension around the world, the World Economic Forum
provided a vital platform for engagement with the US
administration, enabling global leaders to share a
frank exchange of views on the conflict and on social
and economic issues.
The US demonstrated its commitment to continuing
dialogue on both security and the economy at the
Annual Meeting, when Secretary of State Colin Powell
led a delegation that included five senior members of
the administration, among whom was John Ashcroft,
Attorney-General, US Department of Justice. At the
Extraordinary Annual Meeting in Jordan, Secretary of
State Powell was joined by US trade representative
Robert Zoellick.
The profile of the World Economic Forum remained
high in the US following our decision to hold the
Annual Meeting 2002 in New York. The success of
the Extraordinary Annual Meeting further reinforced
the credibility of our mission with business,
government, civil society and the media.
Latin America
At the Latin America Business Summit in Rio
de Janeiro in November 2002, 400 participants from
business, civil society, academia and government
made key policy recommendations on how Latin
America could return to growth.
During the summit more than 100 institutions signed
the Private Sector Declaration, which committed
them to enhancing the institutional environment,
improving social conditions and increasing national
competitiveness. Many leaders also called for greater
access to developed world markets.
Towards European reintegration
Thirty one countries, from Croatia to Turkey, were
represented at the first ever World Economic Forum
South-East Europe Meeting, held in Athens in
May 2003.
On the agenda for around 300 participants were
discussions about the region’s prospects, and an
appeal to speed up the process permitting reform-
minded Balkan states to apply for EU membership.
The meeting included a call to the EU and the
international community to build on the remarkable
economic and political achievements in the region over
the past four years. Participants pointed to the fact
that the process of European reintegration presents
an opportunity for the region to build a common future
– although this depends on regional cooperation
underpinned by international support. A session
entitled ‘How can the region catch up?’ suggested
Following the election of Luiz Inácio Lula da Silva as
President of Brazil, the World Economic Forum
focused on the challenges facing the country. The
Brazil Competitiveness Meeting in São Paulo,
in June 2003, provided business and other leaders
with an opportunity to meet the new Brazilian
Government, to assess the main economic and
social challenges and to develop strategies to
improve competitiveness. The meeting produced
recommendations for the country in the key areas
of macroeconomic policies, governance, the legal
framework, and technology and innovation.
We continued to expand our engagement with leaders
in Latin America and for the first time welcomed five
regional heads of state to the Annual Meeting 2003 in
Davos: Eduardo Duhalde, President of Argentina;
Vicente Fox, President of Mexico; Luiz Inácio Lula da
Silva, President of Brazil; Alvaro Uribe, President of
Colombia and Alejandro Toledo, President of Peru.
For more information on Latin America, see
www.weforum.org/latinamerica
that institutional reform is
vital for economic
success. Greece and
Ireland were cited as role
models for successful
growth backed by
EU involvement.
Many participants took Zoran Zivkovic, Prime Minister, Serbia; Boris Trajkovski,
President, FYR Macedonia; George Papandreou, Foreign
the opportunity to pay Minister, Greece; Fatos Nano, Prime Minister, Albania;
tribute to Zoran Djindjic, Stjepan Mesic, President, Croatia, and Milo Djukanovic,
Prime Minister, Montenegro, at the Athens summit
the Serbian Prime
Minister assassinated on
www.weforum.org
12 March 2003. Balkan leaders pledged to keep his
spirit and vision alive. Zoran Zivkovic, Prime Minister
of Serbia, said that Mr Djindjic had laid the foundations
of many institutions and his European vision would be
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
The diversity of our membership provides a
unique platform for the discussion, coordination and
development of practical projects dedicated to
improving the state of the world. Our task forces and
initiatives form an integral part of this mission by
acting as vehicles for sharing knowledge, views and
resources among all involved stakeholders and
mapping scenarios for decision-makers.
Pension Systems Readiness Initiative
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 Pension Systems Readiness Initiative brings
together leaders from the financial services and
employment sectors and other interested bodies,
such as senior citizen groups, labour unions and
governments. As a first step, they will compile
extensive cross-country information to assess
the readiness of Organization for Economic
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
strengths and weaknesses of various national
approaches and act as a catalyst for change.
For further information on the Pensions Systems
Readiness Initiative, see www.weforum.org
An integrated
approach
to global
challenges
Global Health Initiative
Diseases such as HIV/AIDS, tuberculosis and
malaria kill millions of people every year and
damage the economic and social prospects of
countries across the developing world. The private
sector is a key player in the fight against diseases.
Companies can bring significant resources of skills,
implementation and access to at risk populations
that complement the activities of the public sector
and civil society.
“Almost every global business has something it can and
should contribute to organizations on the front lines of
the global public health crisis.”
Rajat Gupta, Senior Partner, Worldwide, McKinsey & Company Inc., USA
The Global Health Initiative is a collaboration
between the World Economic Forum’s member
companies, such key United Nations agencies
as the Joint United Nations Programme on
HIV/AIDS (UNAIDS), and the World Health
Organization’s (WHO) Stop Tuberculosis and Roll
Back Malaria programmes.
www.weforum.org
15
 Task forces and initiatives
The initiative coordinates the private sector
interaction with the Board of the Global Fund to
Fight AIDS, Tuberculosis and Malaria, working to
increase private sector engagement in these
public-private partnerships. It seeks to:
• Develop tools for businesses to promote
good policy and practices within workforces
and communities
• Foster partnerships to develop policies and
programmes
• Expand corporate advocacy
In 2002/2003, we expanded Global Health Initiative
activities in individual countries, linking companies
with each other, with non-governmental
organizations and with governments in the worst
affected nations.
Companies began to play a greater part in the
fight against the diseases, developing infrastructure
and introducing education for their employees,
much of which can be expanded to include entire
communities. Through the efforts of many
companies, hundreds of thousands of people now
have access to life-saving medicines and care.
“We must not only increase public awareness about the
challenges the world is facing in relation to water, but we
must also change the way the water issue is perceived:
from being a driver of conflict to being a catalyst
for collaboration.”
Klaus Töpfer, Executive Director, United Nations Environment Programme,
at the launch of the World Economic Forum Water Initiative, June 2003
Achievements of the initiative in 2002/2003
included:
• Working with the World Bank and UNAIDS to
bring businesses from 15 countries, with high
rates of HIV, together in Zambia to share
corporate best practice in tackling AIDS
• Publishing workplace guidelines on dealing with
tuberculosis in partnership with the WHO and
International Labour Organization. These
guidelines seek to help companies tackle the
disease and are available online at
www.weforum.org/globalhealth
16
In 2003/2004 the Global Health Initiative will
seek to increase private sector involvement
at country-level, complementing such global
programmes as the US Presidential Emergency
Plan for AIDS Relief and the WHO strategy to
ensure three million people have access to
retroviral drugs by 2005. For further information,
see www.weforum.org/globalhealth
E-learning Initiative
The Jordan Education Initiative is an e-learning pilot
project, involving the national government and
World Economic Forum member companies, that
aims to deliver e-learning to Jordanian citizens. It
brings together leaders from the information
technology and telecommunications industries to
improve education in the kingdom.
The project provides young people with an
environment that enables them to pursue
their goals through a process of learning and
self-determination.
Ninety-six schools are piloting the project in
Jordan. They will serve as a test bed of how
information and communications technology can
benefit schools and their pupils. Though focused
on developing education, the plan also offers an
opportunity to develop the local information
technology industry.
The initiative supports the government vision of
building a knowledge economy by providing lifelong
learning opportunities for all its citizens. For further
information on the E-learning Initiative, see
www.weforum.org
Water Initiative
Ensuring water resources are managed effectively
is one of the key global challenges. In 2003, the
World Economic Forum, in association with the
United Nations Environment Programme (UNEP),
launched the Water Initiative to improve the
quality and quantity of water for both businesses
and communities.
Initiative members include leading businesses, non-
governmental organizations and governments who
seek to share best practice and create partnerships
for the management of water and watersheds (that
is, the area that drains to a common waterway,
such as a lake, estuary or ocean).
The Water Initiative aims to encourage private
sector participation in the maintenance of
watersheds and to put water management at the
forefront of economic development. It will serve as
an incubator for public-private partnerships that
address the importance of watershed
management, both for business needs and the
environment. The initiative will also contribute to a
better understanding of how to structure the costs
of environmental services, and establish and
promote best practice in the management of
watersheds. For more information, see
www.weforum.org/water
Global Greenhouse Gas Register
In consultation with companies, environmental
organizations and governments, the World
Economic Forum launched a multistakeholder
partnership to design and operate a global
register of voluntary corporate greenhouse gas
reduction targets. By creating a global emission
inventory and register, where data and commitments
on greenhouse gas emissions can be recorded, we
seek to encourage more companies to take early
action to measure their emissions and set their own
reduction targets.
Global Information Technology Report
Preparing for a networked society
The Global Information Technology Report is part of
the World Economic Forum’s commitment to helping
countries achieve optimum economic performance
and overcome barriers to success.
In 2002/2003, the comprehensive report assessed
82 economies around the globe to get a clear
picture of their readiness for the networked world.
Countries were rated according to a Networked
Readiness Index (NRI). This measures their degree of
preparedness to capture the benefits of a networked
economy according to three factors: market
conditions, including political and regulatory framework
and infrastructure; the readiness of three stakeholder
groups – individuals, business and government; and
the actual usage of IT.
Finland took first place in the index, reflecting good
The initiative involves partners from the business
and environmental arenas, including WWF (the
World Wildlife Fund), World Resources Institute,
Pew Center on Global Climate Change, World
Business Council on Sustainable Development,
World Energy Council, the International Emissions
Trading Association and BrasilConnects. For further
information on the Global Greenhouse Gas Register
Initiative, see www.weforum.org/ghg
Global Governance Initiative
The World Economic Forum launched a Global
Governance Initiative at the Annual Meeting 2003,
to monitor progress towards the ambitious
economic, social and environmental goals of the
United Nations Millennium Declaration.
The initiative involves seven international groups
of experts, each dedicated to evaluating the effort
and cooperation among the key players seeking
to achieve these goals. Targets set out in the
declaration range from halving the number of
people living in poverty by 2015 to finding ways
to eliminate war and the dangers posed by the
dissemination of weapons of mass destruction.
use of technology by all
three stakeholder groups.
The US slipped to second
place, due to its less
competitive performance in
terms of connectivity and
diffusion of technology.
Singapore was third, but
ranked higher in terms of
government and regulatory
backing for IT. Brazil and Finland is leading the way in information technology
Estonia also scored well
for government support, while Germany topped the
league for IT usage by businesses.
www.weforum.org
The NRI was produced in partnership with INSEAD
and the World Bank Information for Development
Programme (which addresses obstacles facing
developing countries in the information-driven world).
17
 Task forces and initiatives
The initiative steering committee convened for the
first time during the Annual Meeting and will publish
its first annual report in 2004. It will assess the
steps being taken by governments, civil society,
the private sector and international organizations
to meet the targets, which have the support of
189 governments.
“Let us try to understand each other. We want peace.
So let us do it together, the Jordanians, the Palestinians,
the Egyptians, all of us – to have a better future for the
children of our region.”
Silvan Shalom, Deputy Prime Minister and Minister of Foreign Affairs of Israel,
at the Extraordinary Annual Meeting
Global Corporate Governance Dialogue
In line with the global focus on corporate
governance, the World Economic Forum is
planning a series of high-level workshops at its
regional summits and the Annual Meeting. These
will take advantage of their setting in different
regions to explore the international and cross-
cultural dimensions of corporate governance. For
further information on the Global Governance
Initiative, see www.weforum.org/globalgovernance
Global Corporate Citizenship Initiative
The World Economic Forum’s Global Corporate
Citizenship Initiative is working to increase business
engagement in, and support for, corporate
citizenship. It involves 40 member companies and
representatives from other concerned organizations.
In preparation for the Annual Meeting 2003, the
initiative conducted a survey of chief executives
who had signed the Joint CEO Statement on
Corporate Citizenship, which was launched in
New York in January 2002.
18
The survey, which questioned chief executives
from 18 industry sectors and 16 countries,
showed that companies are treating corporate
citizenship more strategically than in the past and
are linking it to business practices. It also found
that citizenship strategy is now increasingly driven
at board level.
In the survey, 90 per cent of CEOs listed the
internal communication of values and policies
as a key tool in embedding corporate citizenship.
Although managing reputation and brand equity
were selected as the most important factors for
making the business case for corporate
citizenship, attracting, motivating and retaining
employees came close behind. For more on the
Global Corporate Citizenship Initiative, see
www.weforum.org/corporatecitizenship
Council of 100 Leaders
The Council of 100 Leaders seeks to be the
foremost community of senior business, political,
religious, media and opinion leaders from the
West and the Islamic world who are dedicated
to strengthening ties between the two societies.
Members of the council met for the first time
at the Extraordinary Annual Meeting in Jordan
in 2003 to develop a framework for the initiative,
which will be formally launched at the
Annual Meeting 2004.
The council’s mission is to foster a culture of
respect and cooperation between the two
traditions and so overcome the current tension
and mistrust. It seeks to establish a dialogue
through a shared commitment to universal values
and goals, together with a programme of joint
action that will bring clear practical results,
transformational change and cooperation. For
further information, see www.weforum.org/c100
Global Competitiveness Programme
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. In 2002/2003, we
published a series of reports and held regional
and national workshops under the Global
Competitiveness Programme umbrella.
The programme’s flagship publication, the Global
Competitiveness Report, was created by Klaus
Schwab in 1979. It is the most authoritative and
comprehensive assessment of the comparative
strengths and weaknesses of national economies.
In 2002/2003, the report showed that nations
must improve their governance systems if they
are to remain competitive.
However, the programme’s Global Information
Technology Report 2002/2003 found that fortunes
were reversed in the IT sector where Finland
ranked first in terms of readiness for the networked
world and the US slipped to second place. It
Arab Business Council
Building growth in the Middle East
More than 50
leading companies,
in association with
the World Economic
Forum, have united
to form the Arab
Business Council.
The formation of
the council at the
Extraordinary
Annual Meeting
Shafiq Gabr,
Chairman of the Arab Business Council in Jordan is a
response to the challenges of slow growth, weak
investment and perceived instability in the Middle East.
The new council’s seven-member executive committee
is ready to work with governments to enhance
competitiveness in the region, establish constructive
dialogue with business leaders in the most developed
countries, and integrate the Arab world more effectively
into the global economy.
concludes that Finland is the country most
prepared to capture fully the benefits of the
networked economy.
In 2002/2003, the World Economic Forum published
the first Arab World Competitiveness Report. It
showed how growth in the Middle East has stagnated
since the 1980s and why, despite its natural
resources, the region has failed to capture a greater
proportion of international trade and capital flow.
The competitiveness sessions and workshops
held during the Annual Meeting and the regional
summits provided an opportunity for leaders from
business, government, academia, international
organizations and civil society to debate key
competitiveness issues, drawing on information
from the reports.
The World Economic Forum also gave
presentations around the world to research
institutes and governments keen to strengthen
their economies. For further information, see
www.weforum.org/gcp
The council is committed to promoting global best
practice in the Arab business sector, and has adopted
stringent standards on accounting, corporate social
responsibility and combating corruption and bribery.
It will also advise the World Economic Forum on issues
of key importance to the Arab world for inclusion in the
agenda of the Annual Meeting.
The council will seek to take advantage of the
opportunities offered by the new US-Arab Free
Trade Agreement that has been proposed by the
US administration to provide a platform for
sustained growth.
Two international private sector meetings are planned
for the 2003/2004 financial year in order to open
www.weforum.org
dialogue with governments and business sectors in the
US and the European Union.
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
The World Economic Forum brings together major
businesses to work with all stakeholders in civil
society to promote economic and social
development. Our members and partners represent
all sectors and regions of the global community.
Members
Although our members are drawn from the world’s
top 1,000 companies, we reserve 35% of places
for those from the developing world. Our members
help guide our work, and provide financial and
in-kind support to develop our activities. They
benefit through their involvement in our events,
communities and initiatives.
Our members represent a diverse range of
experience and opinions. They come from 25
different industry sectors and are based in every
part of the world. This is why the World Economic
Forum is a neutral organization which does not
make public statements on behalf of its members.
During 2002/2003, the following companies were
accepted as members of the World Economic Forum:
Activision Inc., AEA Investors Inc., Aegis Group
Plc, African Rainbow Minerals Gold (ARMgold),
Akin, Gump, Strauss, Hauer & Feld LLP, Alshaya
Group, An-Nahar Group, Autostrade SpA, Banca
Intesa SpA, Bank of China, Bolsa de Mercadorias
& Futuros (BM&F), Brasil Telecom SA, British
Columbia Lottery Corporation (BCLC), BUPA
(British United Provident Association), Business
Objects SA, CH2M HILL Companies Ltd, China
Entrepreneurship
in the global
public interest
Netcom Corporation Ltd, Computerland SA,
Cotecna Inspection SA, Dow Chemical Company,
Dubai Development and Investment Authority,
Empresa Periodistica El Mercurio SAP, Eurazeo,
Exel Plc, Findus AB, Forrester Research Inc.,
France Telecom, Gemplus International SA,
Georgetown University, Hellenic
Telecommunications Organization SA, ICICI Bank
Ltd, Imax Corporation, Industrial and Commercial
Bank of China, Ingram Micro Inc., Institute of
International Finance, Invensys Plc, Investissement
Québec, Italtel SpA, J. & W. Seligman & Co. Inc.,
KT Corporation, La Poste, Lloyd’s of London,
Malaysia Airlines, Manugistics Group Inc.,
Millennium Pharmaceuticals Inc., Mohammed
Abdulmohsin Al-Kharafi & Sons WLL, Moore
Capital Management, National Commercial Bank,
NetJets, Oil and Natural Gas Corporation Ltd,
Pacific Basin Economic Council, Petrol Ofisi AS,
Portugal Telecom SGPS, SA, Quantum
Corporation, Renaissance Re Holdings Ltd, Royal
Jordanian Airlines (ALIA), SAS Institute, Sealed Air
Corp., Shenzhen Development Bank Co. Ltd,
Siemens Corporation, Silver Lake Partners, Star
Group Ltd, Supreme Economic Council, Taiwan
Power Company, Telecom Italia Mobile (TIM) SpA,
The Bear Stearns Companies Inc., The
Shorenstein Company LLC, The Timberland
Company, Underwriters Laboratories Inc., Union
www.weforum.org
Bank of Nigeria Plc, United States Postal Service
and the Youssef El-Khereiji Group of Companies.
21
 Our members and partners
Partners
Our strategic partners are key companies that are
particularly deeply involved in the activity of the World
Economic Forum. They ensure the agenda reflects
business concerns, help launch our task forces and
initiatives and provide people for specific projects, to
serve on steering committees or take project
management responsibilities. They also contribute
significant financial resources. There was a special
partners meeting in spring 2003, to test our strategy.
“Stimulating faster economic growth in developing
countries is essential to enable sustained global
economic growth. It is in the mutual interest of developed
and developing nations. It is also key to sharing the
benefits of global growth more equitably.”
International Business Council trade task force statement, March 2003
As of 30 June 2003, our strategic partners were:
ABB, Accel Partners, Accenture, Apax Partners, A.T.
Kearney, Audi, Bain & Company, Barco, The Boeing
Company, Bombardier, Booz Allen Hamilton, BP, Cisco
Systems, The Coca-Cola Company, Deloitte Touche
Tohmatsu, DHL, Ernst & Young, HP, IBM Corporation,
KPMG, Kudelski Group, McKinsey & Co., Merck & Co.
Inc., Merrill Lynch, Microsoft Corporation, Nestlé,
PepsiCo, Pfizer, PricewaterhouseCoopers, Sara Lee
Corporation, Siemens, UBS and Volkswagen.
22
Co-chairs of the Annual Meeting: Junichi Ujiie, President and CEO,
Nomura Holdings, Japan; Bertrand Collomb, Chairman and CEO,
Lafarge, France; Henry A. McKinnell, Chairman and CEO, Pfizer,
USA; Philip M. Condit, Chairman and CEO, The Boeing Company,
USA (also co-chair of the Extraordinary Annual Meeting)
Four of the co-chairs of the Extraordinary Annual Meeting: Peter
Brabeck-Letmathe, Vice-Chairman and CEO, Nestlé, Switzerland;
William R. Rhodes, Chairman, Citicorp and Citibank and Senior
Vice-Chairman, Citigroup, USA; Khalid A. Alireza, Chairman,
Xenel/Saudi Cable Company, Saudi Arabia; Carly Fiorina,
Chairman and CEO, HP, USA
Membership development
The World Economic Forum’s members encompass
not only the largest companies in the world but also
those that are regional and industry leaders. Our
membership criteria remain strict and, during
2002/2003, the World Economic Forum not only
welcomed 91 new members but also refused
membership to companies that did not meet our
criteria. Despite the difficult economic conditions we
enjoyed the support of 15 new partners in 2002/2003.
Several of these were previously members who had
decided to strengthen their ties with the World
Economic Forum.
Our communities and constituencies
Communities
A key part of World Economic Forum activity is
the creation of communities of member and partner
companies. We have developed specific expertise and
capabilities to foster and support these communities
and to encourage interaction between them whenever
relevant and worthwhile.
The International Business Council
The International Business Council (IBC) consists of
100 highly influential, concerned and committed chief
executives. It identifies and addresses globally relevant
business issues and acts as an advisory body,
providing intellectual stewardship to the World
Economic Forum. In 2003, the IBC created a task
force of four members, Niall FitzGerald, Peter Brabeck-
Letmathe, Josef Ackermann and Henry A. McKinnell,
which was given the responsibility of elaborating its
policy on trade. Its statement calling for significant
breakthroughs in the Cancun Ministerial Meeting of
the World Trade Organization was sent to the heads of
state of the G-8 nations.
At the Extraordinary Annual Meeting in Jordan the IBC
released a statement on the commitment of business
to the peace process, appealing to governments to
use their power and influence to establish peace
throughout the Middle East. IBC steering committees
for Asia and for healthcare met for the first time in
Davos in January 2003 with the aim of giving strategic
guidance to the World Economic Forum. Following a
debate at its summer meeting, the IBC developed a
statement on corporate governance for use by
members in discussions with officials and regulators.
The special
commitment of
the business
community
Industry Governors
Industry Governors’ groups are made up of CEOs
selected from influential companies within a range of
industry sectors. These fall under the general
categories of basic industries, communications and
technology, consumer goods and health, and financial
services and transportation. The Governors aim to
provide informal, efficient frameworks for an exchange
of opinions on global issues of concern to specific
sectors. They provide intellectual stewardship to our
efforts, such as industry-specific initiatives and task
forces and industry-targeted sessions and events.
“We appeal to governments to use their power and to
fully commit to establishing security and lasting peace
in the whole of the Middle East.”
Peter Brabeck-Letmathe, Vice-Chairman and CEO, Nestlé, on behalf
of the International Business Council Trade Task Force, at the Extraordinary
Annual Meeting
At the Annual Meeting 2003, the Governors met to
discuss the global issues facing such sectors as the
mining and metals industries, healthcare and
professional services. These discussions were
preceded by a series of preparatory meetings to
confirm the Governors’ agenda. Preparatory meetings
for the chemicals, energy, communications and
technology, finance, aerospace, travel and tourism,
www.weforum.org
and logistics and transportation sectors were held in
Geneva. A similar meeting for the engineering and
construction industry was held in London and another
for the automotive sector took place in Paris.
23
 Our communities and constituencies
Jonathan Zapiro, Editorial Cartoonist, South Africa,
at the Annual Meeting 2003
Constituencies
The World Economic Forum’s constituencies are
individuals and organizations that are drawn from
all sectors of society and represent a rich source of
expertise and information.
Advisory Groups
Our Advisory Groups range from religious leaders
to non-governmental organizations, from academic
institutions to trade unions. In 2002/2003, a new group
was created representing philanthropic bodies called
the Global Foundation Leaders’ Advisory Group. The
purpose of the Advisory Groups is to assist other key
stakeholders in the global economy to engage in,
and help shape, World Economic Forum activities.
“There is immense unrest, injustice and inequity in our
world. These circumstances demand the emergence of
a new breed of moral leaders who are committed to
developing innovative, sustainable and tailored
approaches to addressing the most pressing problems.”
Ndidi Okonkwo Nwuneli, Founder, LEAP Africa, Nigeria,
Global Leader for Tomorrow 2003
Forum Fellows
Intellectual capital is very important to the World
Economic Forum and much of it is provided by our
Forum Fellows, a group of around 1,500 scientists and
experts from a variety of fields.
24
The Forum Fellows are at the cutting edge of their
disciplines. They contribute ideas, in-depth knowledge,
new ways of tackling problems and sound advice
throughout the year. While some fellows are drawn
into activities only when their expertise is required,
around 50 constitute the core of the community and
are heavily involved on a regular basis.
Global Leaders for Tomorrow
The Global Leaders for Tomorrow (GLT) programme
is designed to bring together young leaders from
fields ranging from the arts and media to business
and politics – what they have in common is a
visionary approach. The object is to provide a fresh
view of global issues, and to think creatively. The
members propose task forces and initiatives that
support our mission of improving the state of the
world. In 2003, they focused on such issues as access
to water, the characteristics that make strong women
leaders and measuring the impact of philanthropy.
The GLT community’s annual summit was based on
the theme of Leadership: Yesterday, Today and
Tomorrow and examined how attitudes to leadership
have changed in the last decade. Many GLTs were
also active participants in the Annual Meeting 2003
in Davos.
This year 100 new members were selected, marking
the community’s tenth anniversary. Many earlier GLTs
have gone on to become household names, including
Bill Gates, Chairman of Microsoft Corporation, Tony
Blair, Prime Minister of the UK, and the composer and
singer Bono.
Technology Pioneers
The Technology Pioneers programme has matured
significantly since it was established in 2000. Members
of this community represent the cream of global talent
in the fields of information technology, biotechnology
and renewable energy. Their aim is to provide
alternatives to accepted wisdom, as well as to keep
the World Economic Forum informed about emerging
technologies likely to have an impact on how business
and society operate.
In 2002/2003, 40 new Technology Pioneers were
selected from among the chief executives of the most
innovative technology companies in the world. For
the first time, Technology Pioneers formed part of the
official Annual Meeting programme, and their sessions
on IT, biotechnology and energy were well attended
and stimulated lively debate. From 2004, this
heightened profile will be extended to include an
annual Technology Pioneer event at a regional summit.
Dialogue with NGOs
In 2002/2003, the World Economic Forum continued
to build strong relationships with non-governmental
organizations (NGOs) and sought to integrate their
views into its activities. NGOs played an active part in
our regional events, 72 took part in the Annual
Meeting and many were involved in our initiatives and
task forces. For example, WWF has worked with us
on environmental issues while Amnesty International
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
in the Schwab Foundation for Social Entrepreneurship
network. Her Association pour le Soutien et l'Appui à
la Femme Entrepreneur (ASAFE) provides business
training and
development services,
alternative financing
and access to
e-commerce for
thousands of women
entrepreneurs in
Cameroon, Guinea,
Benin, Chad and the
Democratic Republic
Social entrepreneur
Gisèle Yitamben
of Congo.
We continued to seek constructive dialogue with
anti-globalization groups, participating in meetings
with the World Social Forum.
Social Entrepreneurs
The Schwab Foundation for Social Entrepreneurship
consists of about 70 individuals and organizations that
use innovation to create social value, with wealth
creation as a means to that end.
The Foundation was created by Klaus and Hilde
Schwab in 1999. It is independent but works
closely with the World Economic Forum to
provide a global platform to promote the benefits
of social entrepreneurship.
Members of this community are united by their
commitment to working for the public good, whether
through profit-making or not-for-profit organizations.
Social Entrepreneurs are pioneers and innovators.
They challenge the usual or ‘inevitable’ and identify
pattern-breaking approaches to resolve seemingly
intractable problems, using new processes, services,
products or new ways of combining proven practice.
The vast majority of Social Entrepreneurs are educated
professionals, such as medical doctors, engineers,
scientists, economists, management specialists and
lawyers. Their commitment to creating social value
colours the way they use their expertise and talents.
Yitamben carried out a study for the African
Development Bank in 1986, which revealed that women
entrepreneurs in Africa had no access to credit. Their
businesses were too small and they could not provide
collateral. Moreover, in Cameroon a combination of
discriminatory traditional laws and a lack of government
support prevented women’s economic empowerment.
ASAFE strives to enable women entrepreneurs to seize
emerging opportunities, building competency
www.weforum.org
in management, bookkeeping and marketing. Many
of its 5,000 members have created flourishing micro-
enterprises. Using information and communication
technology, ASAFE has brought its entrepreneurs
closer together and connected them to larger markets.
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

The World Economic Forum’s reputation depends

on its values, its ability to generate knowledge Nationality Numbers Age Group Numbers
and strategic insight, and the skills and expertise
American 22 20 to 24 1
of its staff.
Armenian 1 25 to 29 44
Australian 3 30 to 34 47
In 2002/2003, our people continued to reflect
Belgian 1 35 to 39 22
the international nature of our organization, Brazilian 3 40 to 44 14
with representatives of 32 different nationalities. British 7 45 to 49 8
This cultural diversity was invaluable as we sought Canadian 4 50 to 54 7
to work with our partners and members around Chinese 1 55 to 59 8
the world. Cypriot 1 60 to 64 7
Costa Rican 1 65 or older 1
The World Economic Forum continued to be Danish 2
a young, talented organization with the average Dutch 2 Total 159
age of our people being 36 years. However, it Finnish 1
French 22
is important to balance the fresh thinking that
German 12
comes with youth with the experience of those
Indian 1
who have spent many years working in the
Iranian 1
international business and governmental arena. Irish 2
This blend of experience can be seen in the Italian 9
breakdown in ages of our staff. The skills and Ivorian 1
high qualifications of our staff is clear from Malagasy 1
the fact that two-thirds of the 159 people who Malaysian 1
work for the World Economic Forum hold Mexican 1
university degrees. Moroccan 2
New Zealander 1
The remuneration policy in 2002/2003 continued to Norwegian 3
Polish 1
reconcile our status as a not-for-profit foundation
South African 1
with our aim of attracting the best people.
www.weforum.org

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 Foundation Board appoints four committees
from among its members:
• The Executive Committee prepares the decisions
of the Foundation Board and oversees the
Managing Board
• 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 and monitors their performance
• The Mission Compliance Committee reviews
Forum policies, strategies and activities in light
of its mission
Practice Structure
In 2002/2003 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. For more information, 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 organized 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 regional and national
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.
An evolving structure
To better serve our members and constituents, we
are evolving the practice structure described above.
In the coming year, we will reshape the organization
to further improve our ability to: build and energize
the top global communities; convene world leaders
in the highest level meetings and interaction; serve
as the creative force shaping global, regional and
industry agendas, and enable world leaders to take
joint action through global initiatives and
partnerships. The adapted structure will be built
around groups dedicated to each of these
objectives and will continue to operate in an
integrated and seamless manner.
www.weforum.org
29
 Our organization
The Managing Board
The Managing Board acts as the executive body
of the Foundation. It ensures that activities fulfil the
mission of the World Economic Forum and acts as its
representative to outside parties. The Managing Board
members for the year 2003/2004 are as follows:
Klaus Schwab
Executive Chairman and Founder, aged 65
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
international 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.
José María Figueres*
Senior Managing Director, aged 49
Qualifications: Bachelor’s 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.
30
The 2002/03 World Economic Forum Managing Board. From right,
José María Figueres, Philippe Bourguignon, Klaus Schwab,
Frédéric Sicre, Rick Samans, André Schneider and Michel Ogrizek
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).
Philippe Bourguignon**
Senior Managing Director, aged 55
Qualifications: Master in Economics, University of
Aix-en-Provence and a postgraduate diploma from
the Institut d'Administration des Entreprises, Paris.
Positions held: Set up vacation hotels in Africa and
the West Indies, 1971-74. He worked for Accor
Group for 14 years: 1974-76, Vice-President,
Development, Asia & the Middle East; 1978-84,
Executive Vice-President, North America; 1984-88,
President, Accor/Pacific. In 1988 he joined Disney
Development Co., Los Angeles; 1992, promoted to
President, Euro Disney, Chairman and CEO, Euro
Disney and Executive Vice-President, Walt Disney
Company Europe. He was Chairman and CEO of
Club Meditérranée 1997-2003. In August 2003 he
became Managing Director of the World Economic
Forum. He is a board member of eBay, Dexia and
Aspen-France Institute.
Frédéric Sicre
Managing Director, Regional Strategy, aged 39
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 45
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 US President, for International
Economic Policy, 1999-2001. Joined the World
Economic Forum in 2001 as Director, Global Issues
and as an Associate Member of the Managing Board.
André Schneider
Managing Director, Chief Operations Officer, aged 44
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
and a member of the Managing Board from
January 2003.
Michel Ogrizek***
Director, Communications, aged 56
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.
*Appointed Co-Chief Executive Officer in
October 2003.
**Joined the Managing Board in August 2003
and appointed Co-Chief Executive Officer in
October 2003.
www.weforum.org
***Appointed Managing Director in August 2003.
31
 Our organization
Information technology and
knowledge management
In 2002/2003, the World Economic Forum continued
to develop its IT resources, for the benefit of its
members and staff and the global public.
At the Annual Meeting 2003, to enhance integration,
interaction and knowledge sharing, participants were
again supported by the latest technological systems,
provided in partnership with leading IT companies.
“I remember the CEO of General Electric saying if investors
wanted a financial report the size of the New York City phone
book, then that’s what they would get. Most of us don’t want
that amount. What we want is a small amount of information,
but we want good information.”
Constance Ford, Economics Editor, The Wall Street Journal, at the Annual Meeting
Building on the IT of previous Annual Meetings,
innovations for 2003 included:
• Improved ‘smart’ security badges. The badges,
which carry a microprocessor and antenna that
enable communication with the main computing
system, were this year overprinted with different
types of ink. This visual security complemented
the electronic security provided by the chip
• Consolidating all Annual Meeting information into
a simple, easy-to-use platform on the World
Economic Forum website
32
Sharing
knowledge
• Tablet PCs being introduced in the members’
lounges, to complement 90 fixed electronic
terminals or ‘kiosks’
• An enhanced ‘Davos Companion’. This year, this
hand-held, iPAC version of the printed
programme, participants’ booklet and guide,
included an integrated LAN card, making it thinner
and lighter. In another new departure, following the
Annual Meeting, almost one third of the 2,000
companions distributed were donated to aid
projects in Uganda and India.
In June, the World Economic Forum faced the
challenge of providing IT resources, at short notice,
for the very different environment of the Extraordinary
Annual Meeting in Jordan. The task was executed
successfully, with 150 PCs flown to Jordan,
to establish the required IT infrastructure.
Aside from these high-profile events, we continued
to enhance our all-year-round IT offering. Members
benefited from such additional services as
improved private spaces for key virtual
communities, including the IBC and Governors,
and more detailed online information.
To further improve our transparency, we also
increased the information on our public website.
For example, we provided more information on
our Global Competitiveness Programme reports
and on our initiatives.

The number of visits to our sites continued to rise.
In January 2003, there were one million page views,
up from 250,000 the previous January. Over the full
year, there were seven million page views, over one
million visits.
Looking forward, we will continue to develop our
IT capability, to enhance the experience of everyone
who interfaces electronically with the World
Economic Forum.
Communications
In 2002/2003, extensive – and largely positive –
media coverage brought World Economic Forum
activities to millions of people around the globe.
The Annual Meeting and the Extraordinary Annual
Meeting were the key focus of media attention.
For example, live BBC World broadcasts from both
meetings opened the events to almost half a billion
television viewers and radio listeners. The peace and
reconciliation summit in Jordan attracted significant
numbers of both the Israeli and Arab media, with
satellite television network Al-Jazeera broadcasting
three hours of coverage per day.
This level of media attention is due to the
international stature of our membership and the
significance of topics and initiatives. It also reflects
the World Economic Forum’s commitment to
building partnerships with the world’s media. Twenty
per cent of participants at our events are editors
attending not, as elsewhere, as reporters only but
as full and active stakeholders.
Online World Economic Forum staff hard at work at the
Annual Meeting 2003 in Davos
In 2002/2003, for the first time, the media presence
included many of the world’s leading editorial
cartoonists. As both journalists and artists, they
wield a peerless impact and influence on their
audiences, reflecting and even shaping public
perception of global leaders and issues. They
brought a unique perspective to our efforts to
engage dialogue during this year’s Annual Meeting,
Extraordinary Annual Meeting and regional summits.
Our close working relationship with the media across
the globe demonstrates our openness and
transparency. Ongoing media programmes
throughout the year reinforced this relationship which
is based on trust and credibility. Notable international
partnerships with press groups included editorial
cooperation with Newsweek at the global level and
Time in Europe, the Middle East and Africa.
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
33
 Our financial
results

In 2002/2003, despite a tough economic and Auditors

geopolitical climate, the World Economic Forum’s
financial base remained robust.
By keeping costs below last year, we partly offset a
lower level of incoming revenue. The latter followed
the SARS-related cancellation of the planned Asia
Economic Summit and the postponement of the
China Business Summit; the straitened finances of
some of our members and, following the exceptional
circumstances of the Annual Meeting 2002 in New
York, a return to the customary participation levels at
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 1998 – 2003
figures in Swiss francs

this year’s event.

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.

The World Economic Forum may accept grants,

donations, legacies and other contributions or
63,806,052
51,306,002

61,100,642

72,195,453

66,454,727

subsidies that are consistent with its purpose of

‘integrating leaders from business, politics and
society at large into a community for global action
committed to improving the state of the world and
1998/ 1999/ 2000/ 2001/ 2002/
the well-being and prosperity of human society’. 1999 2000 2001 2002 2003

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

Year 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003

Total income* 51,306,002 61,100,642 63,806,052 72,195,453 66,454,727

out of which
members’ fees 20,915,531 22,106,920 23,588,125 24,965,367 25,530,325
participation fees 26,972,981 21,465,398
partnership 18,946,940 17,390,452

Total expenditure 50,380,441 59,416,135 63,556,294 69,077,008 66,454,522

out of which
personnel costs 27,097,659 26,584,768
office costs 10,642,445 8,360,352
activity-related costs 31,336,904 31,509,401

Surplus to be
added to the
Foundation capital 925,560 1,684,507 249,759 3,118,445 205

Foundation capital 7,062,041 8,746,549 8,996,308 12,114,753 12,114,958

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

* all key figures in Swiss francs

www.weforum.org

35
 Our mission and
values

The World Economic Forum is the foremost global
community of business, political, intellectual and
other leaders of society committed to improving the
state of the world.
Our mission is best realized through activities
which promote economic and social development.
We believe that economic progress without social
development is not sustainable, while social
development without economic progress is not
feasible. Our motto is thus ‘entrepreneurship in
the global public interest’.
The World Economic Forum enjoys unique global
positioning by recognizing and responding to two
new developments:
• The world’s key challenges cannot be met by
governments, business or civil society alone
• In a world characterized by complexity, fragility
and ever greater synchronicity, strategic insights
cannot be passively acquired. They are best
developed through continuous interaction with
peers and with the most knowledgeable people
in the field (learning communities)

In addition to convening world leaders, the Forum is

committed to involving them in living communities of
common interest and purpose. The Forum ensures
substance in the form of strategic insights and, where
relevant, platforms for joint action. To carry out its
mission, the World Economic Forum has developed
an integrated value chain by involving world leaders
in communities, inspiring them with strategic insights
and enabling them through initiatives.

Our vision for the World Economic Forum is threefold.

To be:

• The foremost organization which builds and

energizes leading global communities
• The creative force shaping global, regional and
industry strategies for its communities
• The catalyst of choice for its communities when
undertaking global initiatives to improve the state
of the world

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.

Photo credit: BMW South Africa

37
 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