1775 Massachusetts Avenue NW Washington, DC 20036 Annual Report 2013 www.brookings.edu QUALITY. INDEPENDENCE. IMPACT. Brookings Leadership Message W Strobe Talbott President John L. Thornton Chair of the Board Strobe Talbott President John L. Thornton Chair of the Board Photo by Paul Morigi Brookings hen Robert S. Brookings and a group of like-minded reformers established the Brookings Institution nearly a century ago, they were guided by the simple but profound belief that good governance results from good ideas and that good ideas are based on respect for facts, rigorous thinking, rational debate, and civil discourse. It is a testament to our founder that his vision has guided us across the decades and continents, into the era of globalization and the digital age. Brookings brings an unparalleled breadth and depth of expertise to the most pressing challenges to ­governance, with experts working across disciplines to develop comprehensive solutions. As we near the end of our first century of doing this important work, we remain true to the trinity of values that has been at the heart of what we do since Brookings was founded: Quality, Independence, and Impact. Quality. We’re proud to be found on the Internet at brookings.edu. It’s a subtle but deeply important symbol of our commitment to upholding the standards of intellectual rigor maintained by the world’s most respected educational institutions. Our institutional reputation for excellence derives from the individual excellence of our 270 resident and nonresident scholars, who collaborate across fields of expertise—and in many cases across the globe—to generate fresh, bold ideas. Independence. By any measure, our government is more polarized than it was a generation ago, with intense and destructive partisanship in Washington and many state capitals. In this environment, Brookings’s independence is our greatest asset. It means that policymakers across the ideological spectrum take our ideas seriously and value our analysis. It enables us to convene people with diverse views for ­reasoned, honest debate. Impact. At Brookings, we strive to make sure that the product of our thinking influences the thinking and action of people who can make our recommendations a reality. Often, our own scholars and Trustees pass through the revolving door between Brookings and the U.S. government. In recent years, as we’ve globalized Brookings, our talent pool has benefited other governments and international institutions. While never faltering in our commitment to high-quality research, we’re investing in dissemination through both traditional and emerging channels. For nearly a century, we’ve stayed true to our original purpose of improving the way that communities—from the local to the national to the global—govern themselves. We also recognize that our ability to achieve real impact stems from how we govern the Institution, including fostering an atmosphere of intellectual freedom for our scholars. We have been entrusted with upholding Mr. Brookings’s legacy and we owe it to our predecessors—and our successors—along with our Trustees and generous supporters, to manage our human, financial, and physical resources. Perhaps Mr. Brookings would not recognize many aspects of the world we live in today, with our nearly instantaneous exchanges of information over cyberspace and the fragmented nature of domestic and international politics. Yet we have no doubt he would be proud of this Institution and our continued commitment to his vision of providing good ideas to improve governance. 1 Photo by Paul Morigi Photo by Paul Morigi Senior Fellow Cheng Li and Professor He Weifang of Peking University Photo by Paul Morigi Senator John McCain Brookings President Strobe Talbott and former President Bill Clinton Stephen Breyer, Associate Justice of the Supreme Court 2 Photo by Shawna Herring Photo by Paul Morigi rookings research spans topics ranging from the global economy to national security crises to ­metropolitan-level strategies for growth to the health of national and international political institutions. Each of Brookings’s five research programs has unique capabilities in its particular focus area. Those programs—Economic Studies, Foreign Policy, Global Economy and Development, Governance Studies, and Metropolitan Policy—may, at first glance, seem to be disconnected from each other; but rather than being five separate think tanks under one roof, Brookings is one Institution tied together by an overarching theme: governance. Governance Studies was Brookings’s original research program, committed to figuring out how we can best organize, regulate, protect, and expand our communities. In an ever-more-interconnected world—characterized by economic globalization but increasingly knitted together on a personal level through social media—our conception of the community has expanded from the local and national to encompass a global vision of shared risks and shared opportunities. Governance—whether in the public sector or private sector—involves mitigating risks and taking­advantage of opportunities. That, in turn, requires well-functioning institutions that have the capacity to engage informed citizens and chart a course for the well-being of humanity. Political dysfunction in W ­ ashington is imposing significant—and unnecessary—costs on America’s economy and national security, raising serious questions about whether the United States can continue to play a leadership role in advancing peace and prosperity. Threats that spill across borders need a response from a truly international community. Some of the world’s most pressing security challenges are themselves the result of failed governance. Generations that follow will bear the consequences of the action—or inaction—we take now. In short, governance matters, and Brookings scholars are dedicated to promoting good governance and the informed citizenry that supports it. Ed Rendell, former Governor of Pennsylvania, and Scott Smith, Mayor of Mesa, AZ and Vice President of the U.S. Council of Mayors Bobby Jindal, Governor of Louisiana Photo by Sharon Farmer Governance Matters B Kasim Reed, Mayor of Atlanta Photo by Alex Irvin Photo by Ralph Alswang Photo by Paul Morigi Christine Lagarde, Managing Director of the International Monetary Fund Photo by andrew snow Condoleezza Rice, former Secretary of State TUSIAD Senior Fellow Kemal Kiri¸ sci and Turkish Prime Minister Recep Tayyip Erdo˘gan Economic Studies “Bending the Curve” on Health Care Costs Vice President and Co-Director of Economic Studies Karen Dynan and Bank of America CEO Brian Moynihan examine the costs and benefits of home ownership. Dynan was nominated for Assistant Secretary of the Treasury for Economic Policy in August 2013 Photo by Paul Morigi T Opportunities for a New Era Photo by Blend Images / Alamy Devising Sensible Long-Term Deficit Reduction Proposals Too often in Washington, political posturing and ideological rigidity are substituted for serious, workable approaches to solving our nation’s fiscal challenges. In an effort to advance more concrete ideas, the Hamilton Project at Brookings invited recognized economic experts from around the country—and across the political spectrum—to make concrete proposals. The resulting publication, 15 Ways to Rethink the Federal Budget, provided President Obama and Congress with innovative, actionable policy ideas on how to reduce the 4 deficit and create a growing economy that benefits more Americans. For example, Adele Morris, Economic Studies Fellow and Policy Director of the Climate and Energy Economics Project, outlined a carbon tax plan to reduce the deficit by $199 billion over 10 years while also achieving climate change goals. Another innovative solution came from Vice President and Co-Director of Economic Studies Karen Dynan, the Robert S. Kerr Senior Fellow, who proposed tax policy changes that would promote increased savings among Americans, while reducing the budget deficit by $40 billion over 10 years. These policy recommendations, and the 13 others from the Hamilton Project, attracted attention from the White House and Capitol Hill. Leading the Conversation on Tax Policy Tax reform remains a central part of any sensible path toward long-term fiscal health. The Tax Policy Center, a joint project of Brookings and the Urban Institute, is playing a pivotal role in the debate by providing independent evaluations of new policy ideas. Praised for its careful, nonpartisan­approach and the sophistication of its modeling capabilities, the Tax Policy Center is well established as the go-to place for estimates of the “People who observe Brookings have respected the intellectual integrity, the thoughtful analysis, and the honest debate that you folks participate in and contribute to.” —Senator Pat Toomey (R-PA) Photo by Paul Morigi T he U.S. economy has been resilient since the Great Recession, yet strong growth remains elusive. Many families are still challenged by job loss, inadequate savings, lack of access to credit, and high health care and education costs. The Economic Studies program is focused on revitalizing U.S. economic conditions and achieving broadly shared economic growth for decades to come. Meeting these goals will require innovative economic policies driven by informed discourse, drawing in a range of expert viewpoints that are firmly rooted in rigorous analysis. he third edition of Brookings’s “Bending the Curve” report, released by the Engelberg Center for Health Care Reform, continued the conversation about how to provide better care at lower cost. The reforms proposed in the report, which focus on the patient, not the procedure, could curtail health care costs by $300 million in 10 years and possibly $1 trillion in 20, if implemented soon. Former Senate Majority Leader Tom Daschle joined Senior Fellow Mark McClellan, a thought-leader in the field, at the launch event in April, providing opening remarks and commentary. Alice Rivlin, the Leonard D. Schaeffer Chair in Health Policy Studies and Director of the Engelberg Center, testified before the Congressional Joint Economic Committee about the need to move American health care away from a fee-for-service system and towards a system that rewards quality of service. Senator Mark Warner (D-VA) briefs the Brookings Board of Trustees on the fiscal challenges facing the U.S. in a session at the U.S. Capitol Visitor Center moderated by Co-Director of Economic Studies Ted Gayer (left), the Joseph A. Pechman Senior Fellow. Gayer was named Vice President and Director of the program in August 2013 5 Federal Reserve Board Governor Daniel Tarullo (second from right) confers with Senior Fellows Donald Kohn and Martin Baily and Fellow Doug Elliott (left to right) ahead of an event on structuring the financial industry Economic Studies Economic Studies Council D uring the recent financial crisis, existing U.S. financial regulations were shown to be inadequate and even dangerous to our economy. How to improve them—and whether the Dodd-Frank reforms achieve the balance needed to foster a healthy financial system—is the subject of intense debate on Wall Street and Main Street and in Washington. Brookings experts are undertaking thoughtful examination of the effects and effectiveness of competing proposals. Senior Fellow Martin Baily has played a leading role in shaping this debate as co-chair of the Bipartisan Policy Center’s Financial Regulatory Reform Initiative. Baily and his colleagues are looking at complicated but essential issues such as how to deal with non-bank financial institutions, “too big to fail” banks, and regulating derivatives. Brookings experts are also playing a critical role in regulatory discussions abroad. Senior Fellow and former Vice Chairman of the Federal Reserve Donald Kohn is advising the United Kingdom’s Financial Policy Committee on financial reforms, in addition to his work on the advisory committee of the new Office of Financial Research at the U.S. Department of the Treasury. 6 “There’s no think tank report or academic study in recent memory that’s dominated a campaign the way the Tax Policy Center’s analysis of Mitt Romney’s tax plan has dominated this one.” —Dylan Matthews, The Washington Post, September 27, 2012 Creating Long-Term Opportunity and Economic Growth Efforts to address economic growth with too nearterm a view can give short shrift to important investments in growth. Brookings experts are focusing critical attention on the steps needed to foster long-term and broadly shared economic growth and increase opportunity for individuals at all income levels. With an eye toward how best to build human capital, Co-Director of the Center on Children and Families Isabel Sawhill, holder of the Cabot Family­ Photo by Paul Morigi Trustee Wilbur Ross U.S. Secretary of Education Arne Duncan speaks at a Hamilton Project event on promoting attainment and achievement in K–12 education Photo by Paul Morigi Financial Reform at Home and Abroad impact and distribution of tax reform proposals. During the 2012 presidential election, a paper by Tax Policy Center Co-Director and Economic Studies Senior Fellow William Gale, the Arjay and Frances Fearing Miller Chair in Federal Economic Policy, and Hamilton Project Policy Director and Economic Studies Senior Fellow Adam Looney, along with Research Associate Sam Brown, looked at Governor Romney’s proposed tax plan, examining tradeoffs among revenues, progressivity, and rates in tax reform. The report was cited more than 13,000 times in the media and drove the public conversation during the campaign—including in presidential and vice presidential debates— over the shape and contours of tax policy. The paper is a clear demonstration of how Brookings’s commitment to careful and thoughtful analysis makes the Institution an essential player in how policymakers and the public think about the solutions to our most important challenges. Mona Sutphen and John Bridgeland listen as Senior Fellow Isabel Sawhill, Co-Director of the Center on Children and Families (right), examines the impact of the 2012 election on the U.S. poverty and opportunity agenda B rookings established the Economic Studies Council to create opportunities to engage leaders from the front lines of the U.S. economy with Brookings experts. Under the leadership of Chairman Wilbur Ross, Brookings Trustee and Chairman and CEO of WL Ross and Co., and Vice Chairman H. Rodgin Cohen, Senior Chairman of Sullivan & Cromwell, the Council has grown in the three years since its creation. The members of the Economic Studies Council provide important financial support to the Economic Studies program, along with critical perspectives on the effects of economic policies on the business community. Through a series of roundtable discussions, regular conference calls, and expert briefings, members of the Council take part in substantive dialogue with Brookings scholars around the most pressing topics on the nation’s economic agenda. Photo by Ralph Alswang Photo by Paul Morigi Photo by Paul Morigi Senator Pat Toomey (R-PA) provides an update on negotiations to avert the “fiscal cliff” and shares his views on pro-growth tax reform and deficit reduction at a Budgeting for National Priorities event moderated by Senior Fellow and Co-Director Ron Haskins (right) Chair, asked, “Should Everyone Go to College?” Sawhill’s paper concludes that, on average, college is still a profitable and worthwhile investment, but advises caution when choosing a major and points out that tuition rates are rising faster than average family income. Senior Fellow Martin Baily, Director of the Initiative on Business and Public Policy and the ­Bernard L. Schwartz Chair in Economic Policy Development, continued to examine the problems that plague the U.S. economy and what lies ahead for future job seekers. With the assistance of Nonresident Senior Fellow James M. Manyika and Shalabh Gupta, Baily published “U.S. Productivity Growth: An Optimistic Perspective,” a paper that, in contrast to prevailing views, lays out how both innovation and technological opportunities and the coming energy revolution can lead to future growth. or more information about > FEconomic Studies at Brookings, visit brookings.edu/economics Follow us @BrookingsEcon 7 Foreign Policy “Revolution in Riyadh” Makes an Impact in the Kingdom Former UN Secretary-General Kofi Annan (left) is welcomed to Brookings by Vice President of Foreign Policy Martin Indyk and President Strobe Talbott before an event where Annan discussed his life’s work on behalf of world stability and human rights. Indyk was named the Special Envoy for Israeli-Palestinian Negotiations in July 2013 Photo by Paul Morigi Meeting Challenges to the Global Order S enior Fellow Bruce ­Riedel’s policy memo, “Revolution in Riyadh,” looked at the possible outcomes of a popular uprising in Saudi Arabia and provided recommendations for U.S. policymakers to mitigate the threat and ameliorate the impact should a crisis unfold. Originally published in Big Bets and Black Swans, the memo generated a robust conversation in the Saudi Arabian blogosphere. A Saudi blogger examined Riedel’s premise that the same forces— demographic, economic, and political— that contributed to the Arab Spring are also present in the Kingdom, increasing the risk of revolution in the country. As a result, the web version of “Revolution in Riyadh” was viewed more than 43,000 times from within Saudi Arabia. 8 Qatar, and now India—to bring rigorous analysis to bear on breaking developments and long-term challenges that affect the global order. Offering Policy Recommendations for Obama’s Second Term As President Obama entered his second term in office, the Foreign Policy program released Big Bets and Black Swans: A Presidential Briefing Book, a set of 20 memos to the president. Foreign Policy experts identified a number of “big bets”—policies in which the president should invest his power, time, and prestige—and “black swans,” the lowprobability, high-impact events that could derail the administration’s priorities. With hard-hitting­ analyses and concrete recommendations, Big Bets and Black Swans provides actionable policy options on potential opportunities and crises such as an opening in U.S.-Cuba relations, a eurozone collapse, and a shift away from oil dependence to green energy alternatives. Complementing the hardcopy publication of Big Bets and Black Swans, the Foreign Policy program developed a unique video presentation of the briefing book’s key assertions and a successful digital marketing campaign. With requests for the briefing book coming from the White House, CIA, “Brookings provides an essential forum for examining how the United States, Europe, and the larger community of nations can work together to meet the challenges of our rapidly changing world.” —Hillary Clinton Chairman of the Joint Chiefs of Staff General Martin E. Dempsey (left) discusses the military’s role in cyberspace and the threat that cyberattacks pose to the U.S. with Senior Fellows Michael O’Hanlon, Director of Research in Foreign Policy, and Peter W. Singer, Director of the Center for 21st Century Security and Intelligence Photo by Paul Morigi T oday, complex threats to U.S. and global security—from organized crime and terrorism to nuclear proliferation and climate change—demand policy approaches that go beyond traditional concepts of diplomacy and defense. New challenges continue to emerge in surprising ways and in multiple domains, from cyberspace and the South China Sea to the streets of Cairo and São Paulo. These crises and transitions exist against a backdrop of changing U.S. foreign policy priorities: a U.S. shift toward Asia and the withdrawal of U.S. troops from Afghanistan. The outcomes of the Arab Spring continue to be contested, with the civil war in Syria escalating into a regional conflict and Iran bent on its pursuit of a nuclear future. To help policymakers in Washington and around the world grapple with this complex set of competing priorities, Foreign Policy at Brookings provides cutting-edge research and actionable policy recommendations that promote sustainable peace, security, and prosperity in the emerging global order. With 40 full-time scholars, the Foreign Policy program’s expansive research agenda covers the world’s most critical regions, leveraging Brookings’s three overseas offices—in China, Photo by Paul Morigi Photo by epa european pressphoto agency b.v. / Alamy Then-Secretary of State Hillary Clinton speaks on the importance of the Transatlantic Partnership to confronting global challenges 9 Senior Fellow and Director of the Brookings-LSE Project on Internal Displacement Elizabeth Ferris explores conditions at a Syrian refugee camp in Jordan Photo by Paul Morigi —Senator John McCain (R-AZ) State Department, National Security Council, and a number of congressional offices, the memos made an immediate impact among high-level Washington policymakers charged with guiding U.S. national security strategy. Securing a New Century The changing nature of warfare and the emergence of new national security challenges require policymakers to rethink the traditional battlefields and domains that have guided defense and intelligence efforts for decades. Brookings launched the Center for 21st Century Security and Intelligence in March 2013 to bring together Foreign Policy’s extensive expertise in defense, intelligence, and arms control and nonproliferation with an emerging capacity on cybersecurity and warfare in the new millennium. Under the leadership of Senior Fellow Peter W. Singer, the Center takes advantage of Brookings’s deep regional and functional expertise to shape both public understanding and official policy on key security issues. Investing in Deeper Research At a time when serious discussion of U.S. foreign policy is frequently compressed or overlooked, Foreign Policy at Brookings remains committed to producing book-length research and analyses. 10 These books and monographs are based on indepth, scholarly research that uncovers the causes and consequences of critical issues confronting the United States and the international community today. The substantive research that underpins each book allows Foreign Policy’s experts to speak authoritatively, whether they are testifying on Capitol Hill, briefing Executive Branch officials, or appearing in the media. Foreign Policy published a number of influential books this year, covering a wide range of ­policy-relevant topics. In Mr. Putin: Operative in the Kremlin, Senior Fellows Clifford Gaddy and Fiona Hill, Director of the Center on the United States and Europe and the Stephen and Barbara Friedman Fellow, explore the many dimensions of Russian President Vladimir Putin’s public persona—statist, survivalist, outsider, free marketeer, and case officer. The book seeks to help policymakers better understand the Russian president and to develop strong policy approaches to working with Russia’s leadership. The book reached the highest levels of U.S. leadership, including Vice President Joe Biden, who described the book as “insightful” in a May 2013 interview in Rolling Stone. In Aspiration and Ambivalence: Strategies and Realities of Counterinsurgency and State-Building David Gregory, host of Meet the Press, moderates a panel discussion on Big Bets and Black Swans: A Presidential Briefing Book with Senior Fellows Suzanne Maloney, Charles Ebinger, Kenneth Lieberthal, Mireya Solís, the Philip Knight Chair in Japan Studies, and Robert Kagan (right to left) Brookings India Launches in New Delhi With generous support from the India Founders Circle L aunched in 2013 and based in New Delhi, Brookings India establishes an independent platform for policy research and analysis in one of the world’s largest emerging powers. The center focuses on the key issues affecting India, including global and domestic economic growth and stability, energy security, and foreign policy. Joining Brookings’s other international research centers in Doha, Qatar and Beijing, China, Brookings India will expand the Institution’s global reach and bring its longstanding commitment to quality, independence, and impact to the world’s largest democracy. Working in concert with Brookings experts in New Delhi, Brookings’s Washington-based India Project will endeavor to raise the profile of the policy issues that shape U.S-Indian relations. Brookings India would not have been possible without the generous and visionary support of the Brookings India Initiative Founders Circle, a group of Indian and American business leaders who believe in the importance of independent policy research at this critical juncture in India’s history. New York Times columnist and author Tom Friedman (left) and Vikram Mehta, Chairman of Brookings India in Afghanistan, Senior Fellow Vanda Felbab-Brown analyzes U.S. and international efforts in Afghanistan and offers detailed recommendations for dealing with the precarious situation leading up to the 2014 transition to Afghan control and beyond. Felbab-Brown argues that allied efforts in Afghanistan have put far too little emphasis on good governance, concentrating too much on short-term military goals to the detriment of long-term peace and stability. Following the publication of Aspiration and Ambivalence, Felbab-Brown has been invited on numerous occasions to brief top NATO and International Security Assistance Force officials, as well as senior U.S. and international diplomats, on matters such as the 2014 Afghan presidential election, Afghan local police capabilities, and ways to improve governance in Afghanistan. The Brookings Press published a courageous book, In the Name of Justice: Striving for the Rule of Law in China, by Chinese law professor He Weifang. Part of the John L. Thornton China ­Center Series on Chinese Thinkers, the book presents He’s critical assessment of the state of Chinese legal reform. At the event launching the book, Supreme Court Justice Stephen Breyer offered his thoughts on lessons from the American legal system for developing an effective rule of law in China. Photo by brookings india W hile the 1951 UN Convention on Refugees has helped millions around the world over the past six decades, no globally binding international agreement exists for the almost 30 million people displaced within the borders of their own countries. To address this deficit, the Brookings-LSE Project on Internal Displacement (IDP Project) has worked to support the African Union’s Convention on the Protection and Assistance of Internally Displaced Persons (IDPs) in Africa. Known as the Kampala Convention, this agreement is the world’s first binding regional treaty on IDPs and marks a tremendous step forward in international law on displacement. While the Convention entered into force in December 2012, much work is still needed to translate the agreement into policies that will improve the lives of IDPs on the ground. The IDP Project will soon publish legal commentary on the Convention and is working with the UN and the African Union to train African political leaders in the legal implications—and obligations—resulting from the Convention. IDP Project staff also work closely with international partners to encourage more African states to ratify the Convention and to implement it in ways that will improve the lives of Africa’s IDPs. Photo courtesy of elizabeth ferris Protecting the Internally Displaced in Africa Foreign Policy “It’s always a pleasure to speak at the Brookings Institution, the premier policy institution in Washington, DC, in America, and in the world.” or more information about > FForeign Policy at Brookings, visit brookings.edu/foreignpolicy Follow us @BrookingsFP 11 Global Economy and Development Then-Director-General of the World Trade Organization Pascal Lamy (left) and Vice President of Global Economy and Development Kemal Dervi¸s confer ahead of an event on the future of global trade as mercantilism gives way to “made in the world” Photo by Paul Morigi Fostering Sustainable Prosperity for a Better World Photo by Stephan Bachenheimer / World Bank 12 opment agenda. Brookings experts are playing a direct role in these processes to inform, shape, and design the next generation of the MDGs. Senior Fellow and Deputy Director Homi Kharas served as lead author and executive secretary of the United Nations high-level panel that developed a framework for a new global partnership to end poverty and promote sustainable development. The panel’s report has become the go-to source for policymakers and practitioners on development goals, targets, and metrics, and will continue to play a formative role in key debates. In tandem, experts in the Center for Universal Education, under the leadership of Senior Fellow and Director Rebecca Winthrop, collaborated with the United Nations’s Global Education First Initiative to ensure that the next generation of MDGs focuses not only on universal access to primary school education for all children, but on the critical need for learning. Shaping the Next Generation of Millennium Development Goals As the 2015 deadline for the Millennium Development Goals (MDGs) rapidly approaches, the global community is taking stock of progress to date and laying the groundwork for a new devel- Creative Solutions for Global Economic Stability Lasting effects of the global economic crisis and its slow recovery are still reverberating worldwide. Over the last year, scholars undertook high-quality research and dialogue to shape U.S. and inter- I n 1990, 43 percent of the world’s population lived in poverty, defined as living on less than $1.25 a day. Today, with the global progress made on the 2000 Millennium Development Goal of eradicating extreme poverty and hunger, the world’s poverty rate has declined to 21 percent. “The Final Countdown: Prospects for Ending Extreme Poverty by 2030” by Fellow Laurence Chandy and his co-authors was featured in a cover story in a June 2013 issue of The Economist and in The Washington Post, among many other media outlets. “Brookings has for a long time been at the center of the transatlantic dialogue. I enjoy seeing it becoming a truly global center of excellence.” —Pascal Lamy, former Director-General, World Trade Organization Photo by Paul Morigi C ontinued fragility in global financial markets and prolonged fiscal challenges in advanced economies have demonstrated that the world economy is an interdependent whole: trouble in one country can have negative ripple effects that spread beyond its borders. Growth in emerging markets has been faster and more resilient than in advanced countries, but in 2013 there is a clear slowdown that is not sparing them. Economic relationships are changing, with an expanding global middle class creating sources of growth, while the difficulties in the eurozone create risks for the entire world. New stories of progress have also brought forth optimism about the prospects for one day eliminating poverty. Throughout the year, experts in the Global Economy and Development program have responded to this changing landscape, improving prospects for continued growth and prosperity. Ending Extreme Poverty Senior Fellow and Director of the Center for Universal Education Rebecca Winthrop discusses education in the context of the post-2015 development agenda with UN Special Envoy for Global Education and former British Prime Minister Gordon Brown 13 Global Economy and Development The Brookings Blum Roundtable on Global Poverty Celebrates 10 Years European Commissioner for Economic and Monetary Affairs and the Euro and Vice President of the European Commission Olli Rehn examines options for resolving the eurozone crisis during a panel discussion with European policymakers With generous support from Richard C. Blum Photo by andrew snow International Advisory Council member Rahul Bajaj (left) listens as Senior Fellow Eswar Prasad gives his outlook on the Indian economy photo by brookings Photo by Sharon Farmer and former government officials. The Committee’s second report was released in fall 2012 and has been widely circulated to international institutions, central banks, and regulatory agencies around the world. 14 Brookings Echidna Global Scholar: Pamhidzayi Berejena Mhongera Working to Save Young Girls in Zimbabwe P Photo by Paul Morigi national policymakers’ thinking on key macroeconomic policy questions—from how to inspire inclusive growth in post-Arab Spring countries, particularly Egypt and Tunisia, to Latin America’s role in the global economy through a new partnership with the Center for the Study of Economic and Social Affairs (CERES) in Uruguay on economic and social policy. Brookings also launched new research on strategies for renewed growth in Greece, Spain, and Italy, as well as hosted dialogues with high-ranking government officials and experts, such as Portugal’s Minister of State and Finance Vitor Gaspar, Leader of the Greek Opposition from the SYRIZA coalition Alexis Tsipras, and European Commissioner for Economic and Monetary Affairs and the Euro and Vice President of the European Commission Olli Rehn. In the United States, Senior Fellow Eswar Prasad, the New Century Chair in International Trade and Economics, presented at the prestigious, invitation-only Jackson Hole Symposium, which draws prominent central bankers, finance ministers, academic luminaries, and financial market players from around the world. Prasad, together with Barry Eichengreen and former Nonresident Senior Fellow Raghuram Rajan, now Central Bank Governor of India, reconvened the Committee on International Economic Policy and Reform, which comprises a dozen top academics Senior Fellow and Deputy Director of Global Economy and Development Homi Kharas, who served as executive secretary of the UN High Level Panel on the Post-2015 Development Agenda, offers insight on the next generation of the Millennium Development Goals amhidzayi Berejena Mhongera wants every girl in the world to understand that it doesn’t matter where you come from. Mhongera grew up in a poor village in Zimbabwe, but that has not stopped her from achieving success and giving back to others. Today, she’s making sure young girls in Zimbabwe have outlets to escape poverty. During her time as an Echidna Global Scholar at Brookings, she focused on her country’s struggles with women’s rights and the plight of orphan children. She notes, “Women and girls become vulnerable to domestic violence simply because of poverty and lack of access to information.” Since returning to Zimbabwe, Mhongera has continued to build on the skills she learned at Brookings to advance her work with even more energy and enthusiasm, including organizing the first-ever International Day of the Girl Child event in Zimbabwe. She now serves as a Technical Advisor to the Ministry of Social Services of the Government of Zimbabwe. Encouraging New Global Voices for International Policy Dialogue Recognizing that policy solutions must be deeply informed by the needs of people from around the world, the Global Economy and Development program engages a unique ecosystem of allies, partners, and networks to develop and disseminate innovative research. The Africa Growth Initiative (AGI), led by Senior Fellow and Director Mwangi S. Kimenyi, has partnerships with six African think tanks to undertake joint research and dialogue on attaining sustainable prosperity in Africa and elevating African voices in the debate over the future of the continent’s economies. To foster these partners’ ability to achieve impact in Africa and internationally, representatives of the six think tanks traveled to Washington, DC in 2012, where they received high-level communications training and interacted with congressional staffers and policymakers. In addition, AGI’s annual Foresight Africa report continues to be one of the top pieces of content on the Brookings website, attracting new and expanded audiences from Kenya, Nigeria, and South Africa. The Global Economy and Development program also elevates voices from the developing world through the Center for Universal Education’s Echidna Global Scholars Program. With the support of Echidna Giving, emerging scholars, leaders, and policy advocates whose work is focused on improving access to quality education for girls come to Brookings for a visiting fellowship that helps them hone their research and analytical skills, grow networks among the international education policy community, and develop a project to be implemented upon their return to their home countries. The Echidna Global Scholars leave Brookings better equipped to contribute their unique voices on these critical education issues in the developing world. “I like to come to the Brookings Blum Roundtable— always— because I think that the subjects that are taken up are cutting edge and bring together a lot of very interesting people.” I n August 2013, the Brookings Blum Roundtable on Global Poverty celebrated its ten-year anniversary. Thanks to the leadership, foresight, and generosity of Brookings Trustee Richard C. Blum—together with the Bill & Melinda Gates Foundation in recent years—the Roundtable has become a preeminent gathering that convenes high-caliber policymakers, private sector and civil society leaders, and academics for focused discussions on critical topics in global development. The tenth roundtable focused on the role of the private sector in global development, and featured former Secretary of State Madeleine Albright, former President of Ireland Mary Robinson, and USAID Administrator Rajiv Shah, among others. Richard C. Blum (second from left), founder of the Brookings Blum Roundtable on Global Poverty, joins President Strobe Talbott, Honorary Co-Chair Mary Robinson, and Vice President of Global Economy and Development Kemal Dervi¸s in Aspen for the 2013 Roundtable Photo by Alex Irvin Haroon Bhorat, Director of the Development Policy Research Unit at the University of Cape Town in South Africa, discusses how to translate research into policy impact at a meeting of the Africa Growth Initiative’s think tank partners, which was moderated by Senior Fellow Mwangi S. Kimenyi, Director of the Initiative (left) —Madeleine Albright, former Secretary of State or more information about > FGlobal Economy and Development at Brookings, visit brookings.edu/global Follow us @BrookingsGlobal 15 Governance Studies Making the Grade for School Choice T Innovative Ideas to Improve Governance Photo by Paul Morigi Twitter CEO Dick Costolo examines the evolution of the public conversation in the age of social media with Senior Fellow Jonathan Rauch G overnance Studies at Brookings brings rigorous analysis and thoughtful recommendations to the governance challenges facing the U.S. and nations around the world. With political polarization increasing and confidence in government declining, Brookings experts are promoting innovative ideas to reform institutions and spark conversations to get elected leaders to do what is needed most—govern. Fixing the Broken Presidential Appointment Process The highest form of Brookings impact is when ideas that originate with the Institution’s scholars become the law of the land. Last year, that happened in one area that has been a leading example of the gridlock that has paralyzed Washington. Presidential appointments to key executive branch positions have been stonewalled in recent years by routine blocking of opposition nominees by both parties, leaving important federal agencies without leaders. On August 10, 2012, President Obama signed the “Presidential Appointment Efficiency and Streamlining Act,” making into law a number of recommendations from A Half-Empty Government Can’t Govern: Why Everyone Wants to Fix the 16 Appointments Process, Why It Never Happens, and How We Can Get It Done, a report by Senior Fellows William A. Galston, the Ezra K. Zilkha Chair in Governance Studies, and E.J. Dionne, Jr. To ensure their prescriptions reached the right audiences, Galston and Dionne briefed key congressional staff members and leaders, including Senator Charles Schumer (D-NY), who drafted the initial legislation. The bill that resulted from these bipartisan discussions is now law—representing a significant step toward governing more efficiently and effectively. Exposing the Causes of Gridlock in Washington While Brookings’s success in helping fix the appointment process is a small step forward, the problems are deeper and more endemic. In It’s Even Worse Than It Looks: How the American Constitutional System Collided With the New Politics of Extremism, Senior Fellow Thomas Mann, the W. Averell Harriman Chair in American Governance, and his co-author, Norman J. Ornstein of the “We could do no better than to use [It’s Even Worse Than It Looks] as a compelling blueprint for urgently needed reform. If every member of Congress would read just one book on the subject, my wish is that it would be this one.” —Tom Daschle, former Senate Majority Leader Photo by Paul Morigi Photo by Blend Images / Alamy Distinguished Fellow Jon Hunstman (left) joins Vice President and Director of Governance Studies Darrell West in a conversation about leadership and the 2012 presidential campaign he Brookings Education Choice and Competition Index, compiled by Brown Center on Education Policy Director Grover­ “Russ” Whitehurst, the Herman and George R. Brown Chair in Education Studies, and Sarah Whitfield, provides essential information to parents and policymakers to improve school choice across the country and enhance performance in public schools. The Index is an interactive web application that scores the country’s 100 largest school districts in an effort to create public awareness of the differences among districts in their support of school choice, provide a framework for efforts to improve choice and competition, and recognize leaders among school districts in the design and implementation of choice and competition systems. The Recovery School District in New Orleans was the highest scoring district in the 2012 index, and Louisiana Governor Bobby Jindal participated in a forum recognizing this achievement and offered his own views on school reform. 17 Governance Studies Michelle Rhee, Founder and CEO of StudentsFirst and former Chancellor of Washington, DC’s Public Schools, discusses the importance of school districts to educational achievement with Grover “Russ” Whitehurst, Director of the Brown Center on Education Policy A New Effort to Improve Political Leadership Photo by Chris Maddaloni John Bellinger of Arnold & Porter LLP, Nonresident Senior Fellow Robert Chesney, Senior Fellow Benjamin Wittes, and Professor Stephen Vladeck of the Washington College of Law (from left) testify at a House of Representatives Judiciary Committee hearing on the use of drones in the war on terror Senior Fellow Tom Mann (right) and Nonresident Senior Fellow Trevor Potter discuss campaign finance at the World Forum on Governance in Prague Building an Innovation-Based Economy ˇ Photo by Ondrej Besperát G 18 overnance Studies scholars are focused on how smart technology policy can help the U.S. create jobs and improve long-term economic growth. Darrell West, Vice President and Director of Governance Studies and founding Director of the Center for Technology Innovation, worked with Fellows Allan Friedman and Walter Valdivia on an important policy paper recommending how to foster long-term growth of the digital economy in the United States. In addition, Fellow Elisabeth Jacobs tackled tough questions about the daunting employment prospects for young workers and the unemployed in today’s labor market. In a widely-cited paper, Jacobs put forth proposals for stronger investment in “lifetime learning” for the unemployed. American Enterprise Institute, assert that partisan polarization is at the root of America’s governing problems. The book generated widespread attention in the media and among policymakers, including being referenced by Senate leaders Harry Reid (D-NV) and Mitch McConnell (R-KY) during a heated debate on the Senate floor about the state of gridlock. Ezra Klein, a columnist for The Washington Post and Bloomberg View, in the New York Review of Books said that Mann and Ornstein “have done the public a great service—and have been much braver than many in the media, the think tanks, or Congress—in using their personal credibility to clearly describe what has happened to American politics in recent years, and who is primarily to blame.” The Washington Post’s “Wonkblog” named it their 2012 Book of the Year. The authors also brought their thesis to a popular audience in an appearance on The Daily Show with Jon Stewart. Influencing National Security Decisionmakers Brookings also has tremendous impact by shaping debates and setting the agenda for major issues facing the nation and the world. Lawfare, a blog founded by Senior Fellow Benjamin Wittes and Nonresident Senior Fellows Robert Chesney and Jack Goldsmith, is the principal journalistic and scholarly center for examining national security legal issues. With more than 272,000 unique visitors this year, Lawfare has become a must-read for the nation’s top legal minds. Lawfare fosters online discussion devoted to the hard national security choices facing policymakers and the public. Readers from the highest levels of government, throughout the bureaucracy, the courts, Congress, the academy, and the media turn to Lawfare for thoughtful analysis of the merits of the underlying legal and policy debates that define national security’s most pressing policy issues. Senior Fellow Elaine Kamarck, Director of the Management and Leadership Initiative, and Robert Taubman explore ways to improve government performance at the Forum on Fostering Growth through Innovation “The Lawfare blog is a terrific source of balanced commentary… It’s something I try to check in on.” T he Governance Studies program launched the Management and Leadership Initiative to improve national political leadership. Led by Senior Fellow Elaine Kamarck, the Initiative aims to enhance the understanding of the nation’s current leadership deficit to find ways to change leaders’ behavior and improve leadership capacity. In its inaugural year, the Management and Leadership Initiative hosted several public forums, including a discussion with then-Secretary of Homeland Security Janet Napolitano on her leadership of the agency and how America’s homeland security environment has changed over the last decade. The Initiative became a part of the new ­Center for Effective Public Management in ­September 2013. Then-Secretary of Homeland Security Janet Napolitano —Bob Litt, General Counsel, Office of the Director of National Intelligence Photo by Sharon Farmer Photo by Paul Morigi Photo by Paul Morigi With generous support from the S.D. Bechtel, Jr. Foundation or more information about > FGovernance Studies at Brookings, visit brookings.edu/governance Follow us @BrookingsGS 19 Metropolitan Policy Catalyzing Metropolitan Policy and Action Photo by Joyce Culver George Stephanopoulos of ABC News moderates a panel featuring Vice President and Director of the Metropolitan Policy Program Bruce Katz, President of the Rockefeller Foundation Judith Rodin, Fellow Jennifer Bradley, and then-Mayor of Newark, NJ Cory Booker (left to right) at the launch of The Metropolitan Revolution Achieving Liftoff for State and Regional Economies As laboratories of reform, states are constantly looking for new ways to boost their value-added industries and create quality jobs. To this end, as part of a new Advanced Industries Series, Metro released Launch! Taking Colorado’s Space Economy to the Next Level, a strategy that identifies important steps the state can take to strengthen its aero- 20 space economy, which is highly concentrated in the Denver and Colorado Springs metro areas. Using the report as a guide, Governor John Hickenlooper and the state legislature have passed bills that boost investment in advanced industries and help more companies export their goods and services. This success in Colorado has already become a model for other states. Metro is currently working to help Tennessee and its metropolitan areas develop a plan to grow their advanced industries, especially improving the skills and innovative capacities of its automotive sector. Growing Exports to Increase Prosperity One key path to long-term prosperity is the embrace of global trade and engagement. This year, the Brookings-Rockefeller Project on State and Metropolitan Innovation released a ten-point guide for government and business leaders to develop effective metropolitan export plans, based on the experience of four pilot plans in Portland, Los Angeles, Minneapolis-Saint Paul, and Syracuse. The guide was the basis for the Metropolitan Export Exchange, which brought together a new crop of leaders from geographically diverse metro areas to learn how to create and implement their own strategies in a structured peer-to-peer setting. “I do want to start with a thanks to all of the good work that Brookings has done over the years on this growth and innovation agenda. And how much we’re going to need Brookings and the people in this coming and ongoing struggle.” —Senator Mark Warner (D-VA) Richard Daley (left), Chairman of the Global Cities Initiative: A Joint Project of Brookings and JPMorgan Chase, joins former President of Brazil Fernando Henrique Cardoso (center) and Brookings Distinguished Fellow Javier Solana in a discussion about strengthening trade linkages between U.S. and Brazilian metros at a forum in São Paulo Colorado Governor John Hickenlooper speaks at the unveiling of the Launch! report on ways that the state can leverage its aerospace industry to boost exports and expand its economy Photo by Mark Bronte T he Metropolitan Policy Program is redefining the challenges facing metropolitan America and promoting innovative solutions to grow communities in more productive, inclusive, and sustainable ways. Metro’s efforts enable metropolitan leaders to: (1) economically­situate their metropolitan area in the global marketplace through rigorous empirical research; (2) innovate locally through co-designing metropolitan economic growth strategies that build on their distinct assets; (3) advocate nationally by p ­ romoting state and federal policy ideas and platforms that serve metropolitan growth; and (4) network globally with business, civic, and government leaders in metropolitan areas worldwide to forge new trade and investment partnerships. Photo by Anna Quast and Fabio Laub Fotografia Photo by Batchelder / Alamy 21 Brookings Trustees Victoria Sant and James A. Johnson listen as Mayor Michael B. Hancock (right) outlines Denver’s efforts to become more globally fluent at a Metropolitan Leadership Council dinner Metropolitan Policy Confronting Suburban Poverty in America Investing in the Green Movement 22 Photo by Paul Morigi F iscal challenges in Washington, DC and state capitals are making it hard for green, low-carbon enterprises to grow. Senior Fellow and Policy Director Mark Muro and several of his Brookings colleagues identified this problem in their paper, “State Clean Energy Finance Banks: New Investment Facilities for Clean Energy Deployment.” Their research chronicled the obstacles facing low-carbon energy enterprises and pointed to the creation of Connecticut’s Clean Energy Finance and Investment Authority as a positive sign and potential model to emulate. Since the creation of the “green bank” in Connecticut and the paper’s publication, New York Governor Andrew Cuomo has pledged $1 billion to start a green bank in New York, and Hawaii has begun to follow Connecticut’s and New York’s lead. These small “green banks” stand ready to make a big impact on the nation’s energy supply by providing a dedicated source of financing. Vice President and Director of the Metropolitan Policy Program Bruce Katz and Brookings Trustees Klaus Kleinfeld and Dominic Barton (left to right) identify proven strategies for bolstering advanced industries during the Forum on Fostering Growth through Innovation Key federal leaders praised Metro’s export work, including Boeing CEO Jim McNerney, Chair of the President’s Export Council, who emphasized the importance of federal collaboration with state and local officials to realizing the goals of the National Export Initiative. Demand from mayors and regional leaders to participate in the Exchange is high. Metro plans to generate new and updated trade data on exports, foreign direct investment, and freight flows in the coming year as part of the Global Cities Initiative: A Joint Project of Brookings and JPMorgan Chase. This research will serve as the foundation for working with public and private sector leaders in 28 U.S. metros—as well as select international metros— in the coming years to help them shape export and global engagement strategies to grow their economies. Starting a Metropolitan Revolution The source of innovation and problem-solving to today’s supersized challenges will not be Washington. That is the premise of The Metropolitan Revolution: How Cities and Metros Are Fixing Our Broken Politics and Fragile Economy, a new book by Vice President and Director of the Metropolitan Policy Program Bruce Katz and Fellow Jennifer Bradley. The book, replete with stories and its own iPad app and webpage, shows how political gridlock in Washington is forcing U.S. cities to bypass the federal government and develop their own plans for growing jobs and economic opportunities. By connecting more purposely with their surrounding metropolitan regions, they are becoming the driving force behind our nation’s economic growth. The book reveals why it’s time to re-imagine the economy, both national and global, as a network of metro areas growing together, linked by trade and driven by innovation. It has attracted attention from policymakers at every level of government, media, and business and community leaders who want to be part of this revolution. “We are not waiting for Washington to create jobs. This is why Los Angeles partnered with Brookings as the first region to implement an export plan of this magnitude to help local companies reach into international markets so we can create new jobs here in Los Angeles.” With generous support from the Ford Foundation T he Ford Foundation has been a steadfast and generous supporter of the Brookings Institution for decades and has long been an invaluable partner to the Metropolitan Policy Program. The Foundation worked very closely with the Metro team to examine the shifting demographics of poverty in the United States. In Confronting Suburban Poverty in America, Metropolitan Policy Program Deputy Director Alan Berube and Fellow Elizabeth Kneebone brought overdue attention to rising levels of poverty in the suburbs. While most Americans still carry the notion that poverty is most prevalent in inner-city neighborhoods and isolated rural areas, times have changed. The majority of poor families in metropolitan areas do not, in fact, live within city limits but in surrounding suburbs, which are often illequipped to deal with this socio-economic phenomenon, especially in these times of flat or declining municipal budgets. ThenFord Foundation President Luis Ubiñas delivered the opening remarks at the book’s launch. Fellow Elizabeth Kneebone Photo by Ralph Alswang Photo by Paul Morigi Photo by Chris Maddaloni Senior Fellow Robert Puentes testifies to the House of Representatives Subcommittee on Railroads, Pipelines, and Hazardous Materials and the Committee on Transportation and Infrastructure on ways to strengthen the federalstate partnership on passenger rail —Antonio Villaraigosa, former Mayor, Los Angeles or more information about the > FMetropolitan Policy Program at Brookings, visit brookings.edu/metro Follow us @BrookingsMetro 23 Second Century Campaign Goals To accomplish this bold vision, the Second Century Campaign seeks to raise $600 million ahead of Brookings’s centenary in 2016. With the outstanding leadership of Campaign Chair and Vice Chair of the Board Glenn Hutchins, many prominent donors—including 100 percent of the Brookings Board of Trustees—have already stepped forward with unprecedented levels of support. Brookings currently seeks gifts for the following investment priorities: l l l Addressing the Challenges of a New Century l l nsuring Quality: $150 million for the endowE ment and durable funds for Brookings experts, programs, and facilities Sustaining Independence: $30 million for strategic initiative funds for Brookings’s President and research Vice Presidents Maximizing Impact: $25 million for outreach, social media, digital technology, and other impact strategies Strengthening the Annual Fund: $30 million in unrestricted, general operating funds Providing Program Support: $365 million for research projects and initiatives across the Institution Photo by Paul Morigi I n the nearly 100-year history of the Brookings Institution, global change has rarely been as unpredictable, multifaceted, and consequential as it is now. At the same time, U.S. partisanship and polarization are more extreme and toxic than at any time since the late nineteenth century, and public trust in government is at an all-time low. Few institutions are better positioned than Brookings to provide the breadth, depth, and quality of research and analysis needed to meet these challenges. As one of the world’s leading think tanks, Brookings is launching the Second Century Campaign to provide a solid foundation for this important work in the coming century and beyond. A Rich History, A Bold Vision The Second Century Campaign derives from the enduring values of the Institution itself—Quality, Independence, and Impact. Ensuring Quality. Brookings has long been recognized for the excellence of its scholars and the quality of their research. The Second Century Campaign will help Brookings to continue attracting the best scholars across many disciplines by ensuring that resources are available to support their work. Brookings will strive to double the number of endowed chairs and expert funds, which will 24 enable the Institution’s scholars to focus on their research, analysis, and policy recommendations for greater impact locally, nationally, and globally. Sustaining Independence. The value that Brookings brings to the policy debate—and to its supporters—is rooted in the Institution’s absolute commitment to independence and rigorous, ­evidence-based study of the issues. Because the policy recommendations that emerge from this approach are free from ideological bias, they gain greater traction with policymakers, the public, and other key audiences. Further, the pace of change in the world demands that Brookings retain the flexibility to launch new research and convene key stakeholders on short notice. The Second Century Campaign will support expanded strategic initiative funds for the President and research Vice Presidents that provide secure, unrestricted funding to advance high-quality, independent research. Maximizing Impact. All Brookings research is driven toward action—converting in-depth research and pragmatic ideas into public policy. The Second Century Campaign will bring resources to invest in outreach capacity to ensure that policy recommendations by Brookings experts reach influential audiences in government, the private sector, and the media. To achieve these goals, Brookings seeks “As we approach our centennial, this is Brookings’s moment. The issues facing our nation are of enormous consequence and our governing process is often at loggerheads. Brookings scholars play an indispensable role in crafting solutions to the thorniest public policy problems.” —Glenn Hutchins, Second Century Campaign Chair The Brookings Institution has more than doubled in size in the last decade in order to meet the growing demands for independent, pragmatic solutions to major challenges. The Second Century Campaign will sustain that growth and position Brookings for a continued leading role in guiding the critical decisions facing our nation and the world. Brookings invites you to get involved with the Institution for leading-edge research and analysis of critical local, national, and global issues. Trustee and Development Chair Cheryl Cohen Effron and Vice President of Governance Studies Darrell West (center) listen as Chair of the Board John Thornton discusses Campaign priorities between sessions at a Board of Trustees meeting The Second Century Campaign Photo by Anna Quast and Fabio Laub Fotografia to make additional investments in 21st century tools and strategies, including an enhanced social media and web presence. With an expanding global footprint—including overseas offices in China, India, and Qatar—Brookings also seeks investments to help bring policy recommendations to a global audience. The Global Cities Initiative Goes to São Paulo With generous support from JPMorgan Chase & Co. T JPMorgan Chase & Co. Chairman and CEO Jamie Dimon explores the importance of connecting cities through trade with Amy Liu, Co-Director of the Metropolitan Policy Program, at a Global Cities Initiative Forum in São Paulo, Brazil he Global Cities Initiative: A Joint Project of Brookings and JPMorgan Chase is a five-year effort to help the leaders of U.S. and global metropolitan regions strengthen their regional economies by becoming more competitive in the global marketplace. The Initiative is built on the concept that the global economy is a network of metropolitan economies that are home to most of the world’s population, production, finance, and sources of innovation. In November 2012, the Global Cities Iniitiative held a forum in São Paulo, Brazil, its first outside the U.S. Throughout the week in Brazil, Bruce Katz, founding Director of the Metropolitan Policy Program, and Richard Daley, former Mayor of Chicago and Senior Advisor to JPMorgan Chase & Co., hosted a series of workshops, tours, and briefings that enabled the delegation of over 40 U.S. metropolitan leaders to connect with Brazilian leaders, including former President Fernando Henrique Cardoso, to boost trade and investment. In 2013, the Global Cities Initiative is bringing its innovative approach to fostering economic growth to four domestic forums—in Atlanta, Dallas, Denver, and Houston—along with one in Mexico City, to continue building a global network of cities linked by trade and shared prosperity. Photo by Paul Morigi Brookings President Strobe Talbott (left) confers with Vice Chair of the Board and Second Century Campaign Chair Glenn Hutchins 25 Supporting Development and Advancing Democracy With generous support from the William and Flora Hewlett Foundation Photo by Hechler Photographers W 26 ith the generous support of Brookings Trustee Andrew Tisch and his wife Ann, the newly established Andrew and Ann Tisch Endowed Distinguished Visiting Fellowships in Governance Studies will bring former top government officials and private sector leaders to Brookings to conduct research and participate in private and public events in their areas of expertise. Tisch Distinguished Visiting Fellows will enhance Brookings’s work with their senior perspective and experience at the highest levels of government and business. Julie Sunderland, Director of Program-Related Investments at the Bill & Melinda Gates Foundation, speaks about the role of the private sector in global development at the 10th annual Brookings Blum Roundtable on Global Poverty Robert Gallucci, President of the John D. and Catherine T. MacArthur Foundation, explains options for countering nuclear proliferation to rogue states Brookings Council member and Treasurer of the Irene Diamond Fund Peter Kimmelman (left) with Irene Diamond Fund President Jane Silver and Trustee and Second Century Campaign Cabinet member Al Engelberg before an Engelberg Center for Health Care Reform event on biomedical innovation Second Century Campaign Cabinet Brookings is grateful for the support of these leaders as we work to accomplish the visionary goals and objectives of the Second Century Campaign: l l Photo by Paul Morigi —Strobe Talbott, President Roger Sant (left) speaks with Trustee and Second Century Campaign Cabinet member Ken Jacobs Glenn Hutchins Campaign Chair Photo by Paul Morigi Andrew and Ann Tisch Photo by Alex Irvin Trustee John White details the importance of workplace education in manufacturing industries on a panel with Representative David Cicilline (D-RI) at the annual John Hazen White Forum on Public Policy “As we embark on our second century, we are seeking other visionary individuals, corporations, and foundations to sustain Brookings’s innovative, research-based recommendations in this time of unprecedented global change.” Photo by brookings Trustee Haim Saban (center) with Vice President of Foreign Policy Martin Indyk before the annual Saban Forum Trustee and Second Century Campaign Cabinet member Andrew Tisch Vice Chair of the Board David Rubenstein at a Brookings event in New York A lcoa and its Foundation are deeply committed to supporting critical research and public policy to create a workforce ready for careers in manufacturing as skilled operators, engineers, designers, and managers. In 2013, Alcoa Foundation made a generous multi-year gift in support of efforts in three of Brookings’s research programs in honor of Brookings’s Second Century Campaign. For the Metropolitan Policy Program, the Alcoa Foundation is providing resources to help cities retool manufacturing and improve job training as part of an emphasis on promoting advanced industries to enhance U.S. competitiveness. In addition, the Foundation is supporting work in Governance Studies on how federal and state government policies can contribute most effectively to building a workforce that has the skills to fill the jobs of tomorrow. Alcoa Foundation is also contributing to work in the Brookings Climate and Energy Economics Program in Economic Studies, which is using advanced modeling techniques to analyze possible impacts of China’s efforts to steer its massive economy to a low-carbon future. Under the leadership of Chairman and CEO Klaus Kleinfeld, who is a Brookings Trustee, the company made a gift of general operating support that provides critical resources that enable Brookings to bring its commitment to quality, independence, and impact to the most pressing challenges facing policymakers in the U.S. and around the world. Photo by Ralph Alswang With generous support from Alcoa and Alcoa Foundation Photo by Ralph Alswang of African researchers in policymaking and planning. The Foundation’s investments in Governance Studies supported the program’s work on strengthening American democracy, led by Senior Fellow Elaine Kamarck, which aims to enhance the understanding of contemporary U.S. governance challenges and identify a comprehensive agenda for constructive change. Another grant from the Hewlett Foundation enabled Senior Fellow Thomas Mann to convene a one-day conference that examined the Supreme Court’s ruling in Shelby County vs. Holder and its impact on voting rights and election administration, and prospects for future legislative action. Photo by Paul Morigi and transparency, and inclusive growth. Other Hewlett Foundation grants enabled Center for Universal Education experts, under the leadership of Senior Fellow and Director Rebecca Winthrop, to collaborate with UNESCO’s Institute for Statistics in establishing a Learning Metrics Task Force, which seeks to develop a set of internationally comparable benchmarks for assessing what students are learning. The Foundation’s generous support for AGI enabled Senior Fellow and Director Mwangi Kimenyi and his team to conduct high-quality policy research and analysis focused on attaining sustainable economic development and prosperity in Africa, with an emphasis on amplifying the voice Photo by Paul Morigi O ver the course of more than thirty-five years of investing in shared priorities, the William and Flora Hewlett Foundation has supported projects and initiatives in all five of Brookings’s research programs. In 2013, the Foundation made several important grants in support of the Governance Studies and Global Economy and Development programs. Hewlett Foundation support was critical in establishing the Global Economy and Development program in 2006, and this year it provided dedicated funds to the Africa Growth Initiative (AGI) and research and dialogue on the global development agenda, aid effectiveness, governance The Second Century Campaign Helping Cities Retool Manufacturing and Create Jobs and Planning for China’s Low-Carbon Future heryl Cohen Effron C Development Chair l Alan M. Dachs l Alfred B. Engelberg l Bart Friedman l Benjamin R. Jacobs l Kenneth M. Jacobs l Victoria P. Sant l Andrew H. Tisch l Ezra K. Zilkha Managing Director Bill Antholis (left) asks Trustee and Second Century Campaign Cabinet member Ben Jacobs for his thoughts following the Forum on Growth through Innovation or more information about the > FSecond Century Campaign, visit brookings.edu/secondcentury 27 Support for Brookings Photo by Perry Bindelglass Vice President of Global Economy and Development Kemal Dervi¸s updates Vice Chair of the Board Suzanne Nora Johnson, Co-Chair of the Global Leadership Council, on his program’s priorities for the coming year Empowering Independent Research and Intellectual Freedom Photo by Andrew Snow Members of the Brookings Council watch the final debate of the 2012 campaign at an event in New York B rookings’s valued contributors play an essential role in sustaining the quality, independence, and impact of the Institution’s work. Since its founding, generous support from individuals, foundations, and corporations has enabled Brookings experts to develop practical, enduring solutions to the most urgent policy challenges facing the nation and the world. The Institution’s donors also bring valuable intellectual insights and private sector perspectives that enrich Brookings experts’ research and strengthen their policy recommendations. 28 Photo by Paul Morigi Photo by Andrew Snow Everett Cook (center) and Anders Brag (right) welcome James Torrey to a Brookings Council event they co-hosted in New York featuring Senior Fellow Cheng Li Trustee Ann Fudge takes part in a presidential transition simulation exercise at a Brookings Board meeting Photo by Paul Morigi A Catalyst for Research and Implementation The Brookings Council is the Institution’s core group of individual and corporate supporters, providing crucial unrestricted funding for research, publications, and events. Throughout the year, members of the Brookings Council enjoyed frequent opportunities to engage in thoughtful dialogue on timely policy topics with leading experts, in a variety of formats. In October, the Brookings Council was invited to watch the final debate of the 2012 presidential campaign, which focused on foreign policy, Kelvin Dushnisky (far left) and Michael Brown (far right) of Barrick Gold are welcomed to the Chairman’s Circle of the Brookings Council by Chair of the Board John Thornton (second from left). They are joined by Gustavo Cisneros 29 30 T Photo by Andrew Snow rustee Vicki Sant and her husband Roger created a charitable remainder trust that supports Brookings’s general operations, helping ensure that Brookings has the resources to sustain the excellence that defines the Institution’s work. Vicki and Roger Sant are leading national philanthropists who have generously supported Brookings for many years. “Including Brookings in our estate planning was a natural way to extend our support for the great work they do,” Sant said. “Roger and I are pleased to be able to help give Brookings experts the tools they need to achieve real impact.” Photo by Andrew Snow Trustee and Second Century Campaign Cabinet member Victoria Sant Trustee John Whitehead (left) shares his perspective with Trustee Alan Dachs, Chair of the Foreign Policy Program Leadership Committee and Second Century Campaign Cabinet member Photo by Paul Morigi Trustees Nemir Kirdar (left) and Tracy Wolstencroft discuss Brookings’s research agenda during a Board meeting Brookings Executive Education Educating Leaders for Today’s Challenges I n partnership with the Olin Business School at Washington University in St. Louis, the Brookings Executive Education (BEE) program provides high-quality executive education to government and private sector leaders. The BEE program includes certificate programs in public leadership or policy strategy and a Master of Science degree in leadership. BEE also runs the highly respected Legis Congressional Fellowship program, which has proven extremely popular on Capitol Hill for providing high-quality fellows to congressional offices. BEE’s innovative Leading Thinking™ model, which teaches leaders to think differently to improve performance, has produced a new wave of government and industry executives who are better equipped to solve problems and lead their organizations. As an example, a BEE Master’s student who is a strategic planner in the Department of Defense was asked to bring together 33 agencies to radically improve performance of U.S. missile ranges, while also lowering costs. Applying one of the Leading Thinking™ processes to this challenge, the student achieved consensus among the agencies on both the problem’s formulation and an effective solution that saved $3 billion. Photo by Andrew Snow Harnessing Intellectual Power from Abroad Brookings’s International Advisory Council comprises distinguished business and community leaders representing 25 countries across five continents. Co-chaired by Trustees Antoine van Agtmael and Paul Desmarais, Jr., the Council’s diverse membership brings a critical international perspective to Brookings’s work and helps Brookings advance the Victoria P. Sant Photo by Andrew Snow with Brookings scholars at simultaneous events in California and New York. The California event, cohosted with the Center for International Security and Cooperation at Stanford University and the Ploughshares Fund, featured Brookings President Strobe Talbott, while the New York event included Managing Director Bill Antholis and Senior Fellows Bill Galston and Robert Kagan. In each city, the Brookings scholars provided key background on the issues and engaged in a lively dialogue with the Council members in attendance ahead of the debate, allowing for in-depth analysis of the candidates’ positions. Taking part in events such as the debate-watch parties is how many Brookings Council members begin their involvement with the Institution. For example, longtime Brookings Council member Everett Cook has become increasingly engaged with Brookings since participating in his first Council event almost a decade ago. Early in his association with the Institution, he joined two separate Brookings traveling delegations on trips to India and China, where he had the chance to interact with Brookings experts and gain a new, more in-depth understanding of the culture and politics of the two nations. “My involvement with the Brookings Council has been personally rewarding and intellectually stimulating,” Cook said. “The events are timely and interesting and I appreciate the dialogue with the experts and other Council members.” A growing number of leading companies have realized the value of working with Brookings experts on key issues. Brookings is delighted to welcome Barrick Gold—the world’s leading gold producer—as one of the newest members of the Chairman’s Circle of the Brookings Council. Canada-based Barrick Gold operates mines and development projects on four continents, so it can draw on Brookings experts to better understand developments across the globe, as well as the possible policy responses from Washington and international capitals. On a local level, Barrick Gold’s significant operations in Nevada mean that the Brookings Mountain West work that all five research programs are doing in partnership with the University of Nevada, Las Vegas offers significant opportunities for company executives to engage with Brookings experts. Through their involvement with Brookings, Barrick Gold executives have access to valuable insights into the policy challenges that can affect global businesses. Support for Brookings Trustee and Co-Chair of the International Advisory Council Paul Desmarais, Jr. leads a discussion of developments around the world at the Council’s annual meeting Trustees Phil Knight (left) and Antoine van Agtmael, Co-Chair of the International Advisory Council, welcome new Trustee Lei Zhang (right) to his first Board meeting 31 Support for Brookings Welcoming New Trustees Sustaining Brookings’s Impact Contributions to the endowment provide a permanent financial foundation for key policy priorities and ensure an enduring legacy for the donors. An example of this kind of critical, durable support from this year is the establishment of the Lee Kuan Yew Chair in Southeast Asia Policy Studies, which will support Brookings’s expanded work on the region, thanks to endowed support from a group of forwardthinking donors. Named in honor of the first Prime Minister of Singapore in recognition of his transformative leadership, this new, permanent chair in the Foreign Policy program expands Brookings’s capacity on East Asia-related issues, bringing important new attention to U.S. policy toward the region. With the U.S. increasing its focus on Asia, the addition of the Lee Kuan Yew Chair to the Center for Northeast Asian Policy Studies—transforming it into the Center for East Asian Policy Studies—will cement Brookings as a premier resource for policymakers and business leaders working in and on the region. 32 Photo by Perry Bindelglass Photo by Andrew Snow Trustee and Second Century Campaign Cabinet member Bart Friedman (left) introduces Senior Fellow Bill Galston, the Ezra K. Zilkha Chair in Governance Studies, before his remarks to the Brookings Council Trustee Alan Batkin discusses developments in the Middle East with Senior Fellow Tamara Wittes, Director of the Saban Center for Middle East Policy Understanding a Changing World With generous support from UnitedHealth Group Director of the Engelberg Center for Health Care Reform Alice Rivlin, the Leonard D. Schaeffer Chair in Health Policy Studies, talks about the Center’s work with Trustee Louis Cabot T he economic and political forces that drive business decisionmaking can interact in complex and sometimes unpredictable ways. Continuing economic weakness, shifting demographics, and growth of emerging markets are just some of the challenges facing executives trying to navigate an uncertain business climate. To help make sense of these trends, UnitedHealth Group’s senior leadership looked to Brookings for analysis. With a grant in support of Governance Studies and the Metropolitan Policy Program, the company is providing critical resources that enable Brookings experts to conduct research and make policy recommendations on pressing issues. Also included in the gift is a flexible fund that supports work on emerging policy challenges and new priorities. Paul Achleitner Non-Executive Chairman Deutsche Bank AG ete Higgins P Founding Partner Second Avenue Partners Photo by Paul Morigi New Trustee Alfonso Fanjul speaks with Trustee and Second Century Campaign Cabinet member Ezra Zilkha during a break at a Board meeting rookings elected six new Trustees and two returning Trustees to the Board in 2013. They join a distinguished group of leading business executives, academics, and community leaders who help govern the affairs of the Institution. The Board, which meets three times per year, approves the fields of scholarly investigation and safeguards the independence of the Institution’s work. Brookings welcomes its newest members to the Board of Trustees: lfonso Fanjul A Chairman and CEO Fanjul Corporation and Florida Crystals Corporation Andrew Klaber (standing) introduces Fellow Tom Wright (center) and Senior Fellow Bruce Jones at a Robert S. Brookings Society event in New York Photo by Paul Morigi Engaging the Next Generation As Brookings approaches its centenary, a new generation of donors is engaging with the Institution, fostering support and dialogue. The Robert S. Brookings Society is a new forum for emerging leaders to take part in substantive exchanges with Brookings experts and each other in a variety of settings. Coupled with interactions with the Brookings Council, their involvement with Brookings gives them a solid foundation in policy issues and their solutions. B Photo by Andrew Snow global reach of its research and analysis, along with important financial support. The International Advisory Council convenes in Washington each spring for a two-day meeting that includes conversations with policymakers and Brookings experts, as well as visits to important places where policy is made. In between meetings, members of the Council take part in events and meetings with Brookings experts and senior leadership in Washington and abroad, providing vital counsel and insight throughout the year. Eight new members joined the International Advisory Council this year: l Nicolas Berggruen, Chairman, Berggruen Institute on Governance, United States l Mick Davis, Founding Partner, X2 Resources ­Limited, United Kingdom l J. Jon Imaz, Executive Managing Director, Industrial and New Energy Division, Repsol, Spain l Javier Monzón, Chairman, Indra, Spain l José Oliu Creus, Executive Chairman, Banc Sabadell, Spain l Marian Puig, EXEA, Spain l Dato’ Sri Tahir, Chairman and CEO, Mayapada Group, Indonesia l Yuanqing Yang, Chairman and CEO, Lenovo Group Steven Rattner* Chairman Willett Advisors LLC ilbur Ross W Chairman and CEO WL Ross & Company LLC Amy Schulman Group President Vaccines, Oncology and Consumer Healthcare Pfizer, Inc. eatrice Welters* B Founder and Co-Chairperson AnBryce Foundation ei Zhang L Founder and CEO Hillhouse Capital Management * Returning Trustees 33 Board of Trustees Cheryl Cohen Effron Founder Conjunction Fund Suzanne Nora Johnson Vice Chair of the Board Brookings Former Vice Chairman The Goldman Sachs Group, Inc. David M. Rubenstein Vice Chair of the Board Brookings Co-Founder and Managing Director The Carlyle Group Haim Saban Chairman and CEO Saban Capital Group, Inc. Ellen V. Futter President American Museum of Natural History Leonard D. Schaeffer Founding Chairman and CEO WellPoint Brian L. Greenspun Chairman and CEO Greenspun Media Group Robert J. Abernethy President American Standard Development Co., Inc. Pete Higgins Founding Partner Second Avenue Partners Liaquat Ahamed Former Chief Executive Officer Fischer Francis Trees and Watts, Inc. Dominic Barton Global Managing Director McKinsey & Company, Inc. Robert M. Bass President Keystone Group, L.P. Alan R. Batkin Chairman Converse Associates, Inc. Crandall Bowles Chairman The Springs Company Hanzade Do˘gan Boyner Vice Chairwoman Do˘gan Holding Sirketler ¸ Grubu A.¸S. Paul L. Cejas Chairman PLC Investments, Inc. Abby Joseph Cohen President, Global Markets Institute and Senior Investment Strategist Goldman, Sachs & Co. Howard E. Cox Advisory Partner Greylock Arthur B. Culvahouse, Jr. Partner O’Melveny & Myers LLP Alan M. Dachs President and CEO Fremont Group Paul Desmarais, Jr. Chairman and Co-CEO Power Corporation of Canada Wilbur Ross Chairman and Chief Executive Officer WL Ross & Company LLC Ann M. Fudge Former Chairman and CEO Young & Rubicam Brands Strobe Talbott President Brookings Paul M. Achleitner Non-Executive Chairman Deutsche Bank AG 34 Alfonso Fanjul Chairman and Chief Executive Officer Fanjul Corporation and Florida Crystals Corporation James Rogers Chairman Duke Energy Shirley Ann Jackson, Ph.D. President Rensselaer Polytechnic Institute Benjamin R. Jacobs Senior Advisor and Founder The JBG Companies Kenneth M. Jacobs Chairman and CEO Lazard Richard A. Kimball, Jr. Chief Strategy Officer Accretive Health Inc. Nemir Kirdar Founder, Executive Chairman and CEO Investcorp Klaus Kleinfeld Chairman and Chief Executive Officer Alcoa, Inc. Philip H. Knight Chairman Nike, Inc. Rajan Bharti Mittal Vice Chairman and Managing Director Bharti Enterprises Limited Nigel Morris Managing Partner QED Investors James Murren Chairman and CEO MGM Resorts International Amy W. Schulman Group President, Vaccines, Oncology and Consumer Healthcare Pfizer, Inc. Lynn Thoman Co-President Leon Lowenstein Foundation Larry D. Thompson Executive VP of Government Affairs, General Counsel, and Corporate Secretary PepsiCo, Inc. Michael L. Tipsord Vice Chairman and Chief Operating Officer State Farm Insurance Companies Andrew H. Tisch Co-Chairman of the Board and Chairman of the Executive Committee Loews Corporation Antoine W. van Agtmael Senior Adviser Garten Rothkopf Former Chairman Ashmore EMM, LLC Beatrice W. Welters Founder and Co-Chairperson AnBryce Foundation John H. White, Jr. President and CEO Taco, Inc. Tracy R. Wolstencroft Advisory Director Goldman, Sachs & Co. Daniel Yergin Vice Chairman IHS, Inc. Founder IHS Cambridge Energy Research Associates Thomas C. Ramey Former Chairman Liberty International, Liberty Mutual Group Lei Zhang Founder and CEO Hillhouse Capital Management Steven Rattner Chairman Willett Advisors LLC Daniel B. Zwirn Managing Partner Zwirn Family Interests, LLC HONORARY TRUSTEES Ann Dibble Jordan Elizabeth E. Bailey Professor Emerita and John C. Hower Professor of Business and Public Policy The Wharton School University of Pennsylvania Vernon E. Jordan, Jr. Senior Managing Director Lazard Of Counsel Akin Gump Strauss Hauer & Feld, LLP Zoë Baird Budinger President The Markle Foundation Herbert M. Kaplan Chairman Warren Equities Rex J. Bates Donald F. McHenry Distinguished Professor in the Practice of Diplomacy and International Affairs School of Foreign Service Georgetown University Richard C. Blum Chairman and President Blum Capital Partners, LP Geoffrey T. Boisi Chairman and CEO Roundtable Investment Partners LLC Mario M. Morino Co-Founder and Chairman Venture Philanthropy Partners Louis W. Cabot, chair emeritus Chairman Cabot-Wellington LLC Samuel Pisar, Ph.D. International Lawyer New York and Paris William T. Coleman, Jr. Senior Partner and The Senior Counselor O’Melveny & Myers LLP Charles W. Robinson President Robinson & Associates, Inc., CBTF Co., and M Ship Co. Kenneth W. Dam Max Pam Professor Emeritus of American & Foreign Law University of Chicago Law School James D. Robinson III General Partner and Co-Founder RRE Ventures Steven A. Denning Chairman General Atlantic Vishakha N. Desai, Ph.D. Special Advisor for Global Affairs Columbia University Alfred B. Engelberg Trustee The Engelberg Foundation Lawrence K. Fish Former Chairman and CEO Citizens Financial Group, Inc. Cyrus F. Freidheim, Jr. Chairman Old Harbour Partners, LLC Bart Friedman Senior Partner Cahill Gordon & Reindel David Friend President and CEO Carbonite, Inc. William A. Haseltine, Ph.D. President The Haseltine Foundation Chairman Haseltine Global Health, LLC Teresa Heinz Chairman Heinz Family Foundation Joel Z. Hyatt Former CEO Current Media, LLC James A. Johnson, chair emeritus Chairman Johnson Capital Partners Victoria P. Sant President The Summit Foundation B. Francis Saul II President and Chairman B.F. Saul Company Ralph S. Saul Former Chairman CIGNA Corporation Michael P. Schulhof Chairman and CEO Global Technology Investments John C. Whitehead, chair emeritus Stephen M. Wolf Chairman RR Donnelly and Sons Company Ezra K. Zilkha President Zilkha & Sons, Inc. B rookings established the International Advisory Council, a group of distinguished international business and community leaders, to extend its outreach and relevance to other countries and increase its ability to inform the American public and policymakers about global developments. Members—who represent 25 countries on five continents—provide invaluable advice and diverse perspectives on developments in their own regions, along with candid insights into how the U.S. and its policies are received abroad. Membership on the International Advisory Council is by invitation only. Antoine W. van Agtmael Co-Chairman of the IAC Senior Adviser Garten Rothkopf Former Chairman Ashmore EMM, LLC J. Jon Imaz Executive Managing Director, Industrial and New Energy Division Repsol Spain Paul Desmarais Jr. Co-Chairman of the IAC Chairman and Co-CEO Power Corporation of Canada Sheikh Hamad Bin Jassim Bin Jabr Al-Thani Former Prime Minister and Minister of Foreign Affairs Qatar Mohammed Mahfoodh Alardhi Chairman Rimal Investments Oman Takashi Kawamura Chairman and CEO Hitachi, Ltd. Japan Mukesh Ambani Chairman Reliance Industries India Andrónico Luksic Vice Chairman Banco de Chile Chile Delphine Arnault Executive Vice President Louis Vuitton France Philip Mallinckrodt Group Head of Private Banking Schroders PLC United Kingdom Rahul Bajaj Chairman Bajaj Auto Limited India Jorge Mandelbaum Chairman of the Advisory Board CIPPEC (Center for the Implementation of Public Policy) Argentina Nicolas Berggruen Chairman Berggruen Institute on Governance United States Tae-won Chey Chairman SK Holdings South Korea George David Chairman Coca-Cola Hellenic Bottling Company Greece Mick Davis Founding Partner X2 Resources Limited United Kingdom John Elkann Chairman FIAT SpA Italy Pablo González Guajardo Chief Executive Officer Kimberly-Clark de México Mexico Jaime J. Montealegre President Sigma Management, SA Costa Rica Javier Monzón Chairman Indra Spain Katsuhiro Nakagawa Chairman Institute for International Economic Studies Senior Advisor to the Board Toyota Motor Corporation Japan Hutham S. Olayan President and CEO, Olayan America The Olayan Group Saudi Arabia José Oliu Creus Executive Chairman Banc Sabadell Spain Jorma Ollila Chairman Royal Dutch Shell Netherlands Victor Pinchuk Founder EastOne Ltd. Ukraine Marian Puig EXEA Spain Vice President of Global Economy and Development Kemal Dervi¸s, Nonresident Senior Fellow Vera Songwe, and Trustee Antoine van Agtmael, Co-Chair of the International Advisory Council, listen as Council member Tokyo Sexwale (left) shares his perspective on Africa’s growing role in the global economy Itamar Rabinovich Former President, Tel Aviv University Former Israeli Ambassador to the U.S. Israel Nassef Sawiris Chief Executive Officer Orascom Construction Industries Egypt Tokyo Sexwale Minister of Human Settlements Government of South Africa Republic of South Africa Charles Sirois Chairman of the Board Canadian Imperial Bank of Commerce Canada Kihak Sung Chairman and CEO Youngone Corporation South Korea Dato’ Sri Tahir Chairman and CEO Mayapada Group Indonesia International Advisory Council member Kihak Sung (right) speaks with Vice President of Foreign Policy Martin Indyk before President Strobe Talbott’s remarks at the House of Sweden Marcus Wallenberg Chairman Skandinaviska Enskilda Banken AB Sweden Yuanqing Yang Chairman and CEO Lenovo Group Dieter Zetsche Chairman Daimler Corporation Germany Photo by andrew snow Glenn Hutchins Vice Chair of the Board Brookings Co-Founder Silver Lake Edgar Rios Co-Founder and Managing Director Wenzi Capital Partners Photo by andrew snow Kenneth M. Duberstein Chairman and CEO The Duberstein Group, Inc. Photo by andrew snow John L. Thornton Chair of the Board Brookings International Advisory Council International Advisory Council member Jon Imaz (right) at the Council’s annual gathering in Washington, DC 35 Honor Roll of Contributors Cash Received July 1, 2012–June 30, 2013 $1,000,000 and Above Anonymous Ford Foundation Bill & Melinda Gates Foundation The William and Flora Hewlett Foundation The Hutchins Family Foundation JPMorgan Chase & Co. Philip Knight The John D. & Catherine T. MacArthur Foundation Richard Merkin Microsoft Corporation The Rockefeller Foundation David M. Rubenstein Cheryl and Haim Saban SK holdings John L. Thornton United Arab Emirates $500,000–$999,999 Anonymous (2) Bank of America Carnegie Corporation of New York Annie E. Casey Foundation Steve and Roberta Denning Roger Hertog Kenneth M. Jacobs The Kresge Foundation Peter B. Lewis Liberty Mutual Group Embassy of the State of Qatar Qualcomm Incorporated UnitedHealth Group, Inc. University of Nevada, Las Vegas The Walton Family Foundation Washington University in St. Louis $250,000–$499,999 Anonymous AT&T Australian Agency for International Development Australian Civil-Military Centre S.D. Bechtel, Jr. Foundation Richard C. Blum and the Honorable Dianne Feinstein The Brown Foundation, Inc. of Houston The Nathan Cummings Foundation Hanzade Do˘gan Boyner, Do˘gan Group 36 Dubai Cares Cheryl Cohen Effron and Blair W. Effron Exxon Mobil Corporation Google Inc. Gail and Benjamin Jacobs The Japan Foundation Center for Global Partnership Japan International Cooperation Agency (JICA) Nand and Jeet Khemka Foundation The Korea Foundation The MasterCard Foundation Charles Stewart Mott Foundation Government of Norway Schlosstein-Hartley Family Foundation Skoll Global Threats Fund Alfred P. Sloan Foundation State Farm Mutual Automobile Insurance Company Surdna Foundation Government of Switzerland Taipei Economic and Cultural Representative Office in the United States The Andrew H. and Ann R. Tisch Foundation U.S. Agency for International Development Antoine van Agtmael, Sunrise Foundation $100,000–$249,999 Anonymous (4) Robert John Abernethy Paul Achleitner and Deutsche Bank AG Mohammed Mahfoodh Alardhi Alcoa Foundation Altman/Kazickas Foundation Barrick Gold Corporation Dominic Barton Anne T. and Robert M. Bass Bluegrass Economic Advancement Movement (BEAM) Ambassador Paul L. Cejas Chevron Chey Tae-won Citi The Clearing House Association Jonathan Coslet The Council for the United States and Italy Howard Cox Alan and Lauren Dachs Daimler George A. David Mick Davis Paul Desmarais, Jr. Dubai School of Government Echidna Giving Alfred and Gail Engelberg Alfonso Fanjul FedEx Corporation Raj Fernando Fiat David and Marianna Fisher Futurewei Technologies, Inc. Mark T. Gallogly and Elizabeth B. Strickler GE Genentech Pablo R. González The William T. Grant Foundation The George Gund Foundation The Heinz Endowments Hitachi, Ltd. The JPB Foundation Ewing Marion Kauffman Foundation Nemir Kirdar Living Cities, Inc. Andrónico Luksic Markle Foundation Mars, Incorporated MetLife, Inc. Eric M. Mindich The MITRE Corporation National Bureau of Economic Research, Inc. New York City Partnership Foundation Niger Delta Partnership Initiative Nomura Foundation Open Society Foundations Richard Perry Victor Pinchuk Foundation Ploughshares Fund Pritzker Traubert Family Foundation RBC Capital Markets Charles W. Robinson The Rodel Foundations James E. Rogers Wilbur and Hilary Ross Nassef Sawiris Eric E. Schmidt Eric S. Schwartz Searle Freedom Trust Tokyo Sexwale Shell Siemens Corporation Robert H. Smith Sodexo, Inc. Specialized Association Services The Starr Foundation Statoil Target Corporation Lynn Thoman and the Leon Lowenstein Foundation Toyota George Tsunis Turkish Industry and Business Association (TUSIAD) Unbound Philanthropy Visa Inc. Jeffrey C. Walker John Hazen White, Jr. Tracy R. Wolstencroft Xcoal Energy & Resources Poju Zabludowicz, Tamares Real Estate Holdings $50,000–$99,999 Anonymous (6) All Nippon Airways Co., Ltd. Allen & Company LLC Amgen Amsterdam International Institute for Development Arrangements Abroad, Inc. Association for Corporate Growth Martin Neil Baily Rahul Bajaj Banco de Sabadell S.A. Alan and Jane Batkin Battelle Crandall C. Bowles Ken Brody The Andrea and Charles Bronfman Philanthropies Bruhn-Morris Family Foundation The Morris and Gwendolyn Cafritz Foundation The Center for Responsible Enterprise and Trade CenterState Corporation for Economic Opportunity China-United States Exchange Foundation Abby Joseph Cohen H. Rodgin Cohen Sir Ronald Cohen Jonathan E. Colby Comcast NBCUniversal Dawat-e-Hadiyah (America), a Corporation Sole The Irene Diamond Fund Deborah L. Duncan Jay C. Farrar Fidelity Investments Government of Finland Julie Finley The Lee and Juliet Folger Fund Stephen Freidheim Bart Friedman and Wendy A. Stein FutureWorld Foundation M. Shafik Gabr Global Green Growth Institute Jeffrey A. Goldstein Andrew Gundlach, AnnaMaria and Stephen Kellen Foundation William A. Haseltine, Ph.D. Hitachi Foundation James A. Johnson Alan K. Jones Herbert M. Kaplan George A. Kellner The Kern Family Foundation Samer Khoury Tawfic Khoury Richard A. Kimball, Jr. Korea International Trade Association (KITA) Lennar Urban Dan W. Lufkin, Peter Jay Sharp Foundation Lumina Foundation Philip Mallinckrodt, The Schroder Foundation Mid-America Regional Council Mitsubishi Corporation (Americas) The Leo Model Foundation The Ambrose Monell Foundation Jaime J. Montealegre Mario M. Morino National Intelligence Council Embassy of the Kingdom of the Netherlands New Economy Initiative for Southeast Michigan Nihon Keizai Shimbun-sya (NIKKEI) The Olayan Group Palantir Technologies Pearson plc PepsiCo, Inc. Phoenix Satellite Television Co. Ltd. John G. Popp Marian Puig Thomas C. Ramey and Perrin Ireland Repsol Foundation Joseph L. Rice III Stephen Robert Sabanci University SAP The Sasakawa Peace Foundation Jonathan Schaffzin Charles Sirois Samuel M. and Helene K. Soref Foundation Standard Chartered Bank David S. and Sylvia Steiner Krishen Sud Sullivan & Cromwell LLP Kihak Sung, Youngone Corporation Dato’ Sri Tahir A. Alfred Taubman Volkswagen Group of America Alex C. Walker Foundation Marcus Wallenberg, Foundation Asset Management (FAM) Wal-Mart Stores, Inc. Beatrice W. and Anthony Welters The Western Union Company Ariel and Adam Zurofsky D.B. Zwirn Foundation $25,000–$49,999 Anonymous (3) American Express Company Hady Amr Aramco Services Company Rex J. Bates The Boeing Company Geoffrey T. Boisi and the Boisi Family Foundation Heinrich Böll Foundation CAF – Development Bank of Latin America The Civic Council of Greater Kansas City The Coca-Cola Company Cummins Inc. Kenneth W. Dam Development Initiatives Poverty Research Ltd. Joshua Donfeld eBay Inc. European Council on Foreign Relations Edith B. Everett EY Mitzi and Cyrus Freidheim Ann M. Fudge Mark Gerson Brian L. and Myra S. Greenspun and the Greenspun Family Foundation Teresa Heinz Kerry Fiona Hill IBM Intesa Sanpaolo Frank F. Islam Tom Kaplan Betsy Karel Lockheed Martin Corporation Marubeni America Corporation Northrop Grumman Corporation Occidental Petroleum Corporation The Alexander S. Onassis Public Benefit Foundation (USA) Partnership for a New American Economy Robert Peck PwC Raytheon Embassy of the Republic of Korea John B. Rhodes James D. Robinson III David Rogers RR Donnelley & Sons Company Sanofi US Leonard D. Schaeffer William A. Shutzer Sumitomo Mitsui Banking Corporation Teneo Holdings U.S. Department of Energy Verizon Communications Enzo Viscusi, Eni S.p.A. Daniel H. Yergin and Angela Stent Ezra K. Zilkha Mortimer Zuckerman $10,000–$24,999 Anonymous (3) Advanced Micro Devices, AMD Liaquat and Meena Ahamed Eileen A. Aptman The Loreen Arbus Foundation Asian Development Bank Institute Elizabeth E. Bailey Liza Bailey and Michael Musgrave The Bank of Tokyo-Mitsubishi UFJ, Ltd. Barclays Bank PLC Joanne Barker Anders Brag Bristol-Myers Squibb Foundation Paul Britton Carter Cafritz Conrad Cafritz Embassy of Canada Canada Pension Plan Investment Board Caterpillar Inc. Central Compilation and Translation Bureau Ellen Chesler and Matthew J. Mallow Cisco Systems, Inc. Karen and Everett Cook Corning Incorporated Foundation Arthur B. Culvahouse, Jr. The Curtis Family Foundation Linda S. Daines David E. R. Dangoor Deloitte Touche Tohmatsu Limited Anthony and Darian Downs Emerson European Investment Bank European Union Robert S. Evans Facebook Roger C. Faxon Lawrence K. Fish David B. Ford French Ministry of Foreign Affairs David Friend John L. Furth General Motors Foundation Goldman Sachs Patrick W. and Sheila Proby Gross Agnes Gund Susan and John Gutfreund 37 Honor Roll of Contributors The Harris Family Foundation June R. Hechinger The Herman Foundation, Inc. Joel Hyatt ITOCHU International Inc. Robert Wood Johnson Foundation Douglas M. Kaden Joel and Ricki Kanter James C. Kautz David Woods Kemper Memorial Foundation Lee Klingenstein Marie L. Knowles Robert and Arlene Kogod KPMG LLP Jennifer Scully Lerner Toby Devan Lewis Gordon Litwin and Anne Luzzatto LMI Government Consulting Daniel S. Loeb Malcolm R. and Celia Lovell Bertil P. Lundqvist Robert E. Marks Michael L. Martell, Morrison Cohen LLP Edward and Dale Mathias Arjay Miller Mitsui & Co. (U.S.A.), Inc. Mulago Foundation James J. Murren Northern Trust NTT Corp. Richard Nye Ono, Inc. John E. Osborn Geryl T. Pearl George L. Perry The Pew Charitable Trusts Pioneer Natural Resources Samuel Pisar Province of Alberta, Canada William Pugh Stanley and Louise Resor Daniel and Joanna S. Rose Robert J.T. Rosenfeld William R. Salomon Shimizu Corporation Stanley Shuman Steven J. Simmons Emily and Robert E. Smith Sojitz Foundation Andrew and Patricia Steffan Michael A. Steinberg 38 Leila and Mickey Straus Sumitomo Corporation of America Paul and Chandler Tagliabue Nelson Talbott Larry D. Thompson Michael L. Tipsord Toshiba America, Inc. Ranvir Trehan Tudor Investment Corporation Paul Verbinnen and Cecilia Greene VOX Global Washington Office on Latin America (WOLA) Seymour and Kathleen Weingarten John C. Whitehead Stephen M. Wolf Xerox Corporation $5,000–$9,999 American Society of the French Legion of Honor Zoë Baird Budinger and William Budinger Steffi and Robert Berne Robert O. Blake CA Technologies William M. Cameron Kimberly Churches Kemal Dervi¸s Kenneth M. Duberstein Charles W. Duncan, Jr. Elinor K. Farquhar Nancy M. Folger Forum for the Future of Higher Education Clifford Gaddy Leslie I. Gold, Ph.D. David B. Golder Robert D. and Colleen G. Haas Noosheen Hashemi Hellman Family Foundation Cynthia R. Helms Harold Hestnes Nicholas Jakobson Allison Nathan North Atlantic Treaty Organization Sarah and Peter O’Hagan Oracle Corporation James and Theodore Pedas Family Foundation Marie Ridder Frederic A. and Susan Rubinstein Ralph S. Saul Frederick Stavis Symantec Corporation Margaret L. Tomlinson James Torrey John Usdan Josh S. Weston Randall White Malcolm H. Wiener Up to $4,999 Anonymous Jack Anderson William J. Antholis Asian Development Bank Andrea Austin Richard Barnes William Horton Beebe-Center The Boston Foundation Louis W. Cabot Jacqueline Carter Peter Clement Morton and Shirley Cohen Roberta Cohen William T. Coleman, Jr. Cheryl Costa Courtney Dunakin Elliott Company of Indianapolis, Inc. Ellen Ewart Robert L. Faherty Nick Farmer Ellen V. Futter Toby Gati Elisa B. Glazer Vartan Gregorian Marion Guggenheim Hope M. Harrison The Herman Foundation, Inc. Hickrill Foundation Steedman Hinckley Alfred Hurley Vernon E. Jordan, Jr. Norma Kacen Catherine Kelleher Thomas L. Kempner Homi Kharas Douglas Kiessling Kemal Kiri¸sci Andrew Klaber Robert Kleinberg Christopher S. Koza Daniel Layton Bryan Lee Laura Liswood Domenico Lombardi Richard Lounsbery Foundation Bruce K. and Virginia N. MacLaury Kathryn Mancino Jeffrey Marlough Daniel Martinez Eduardo Martinez Donald F. McHenry Christopher Meyer James M. Mitchell Stephen C. Morris Sakura Namioka Nathan Associates Inc. Stevan Northcutt Rochelle Novins Bruce Parrott Raymond Piccolotti Steven Pifer Todd Puglisi Helen Raffel Peter B. Reddaway Sean Ricard Mustafa S. Riffat B. Francis Saul II Henry B. Schacht Robert Schulz Katherine Sierra Edwin Soforenko Foundation Alexander Sokolowski Marjorie H. and Helmut Sonnenfeldt Brendan Taylor Prasad Wagle Robert M. Weekley Robert Weinberger D. Kenneth Woodard By the Numbers 1 # July 1, 2012–June 30, 2013 Charity Navigator ranking 3 years Rank in the University of Pennsylvania’s 2013 “Global Go-To Think Tank Index” running 654,991 225% One-year growth in followers of Total Twitter followers of @BrookingsInst One-year growth in Facebook fans Brookings experts Website visits by country of origin ● ● ● ● Over a million ● 100,000 to 300,000 ● 92 ● ● 40,000 to 99,999 ● 20,000 to 39,999 ● Op-eds published in the highest circulation American newspapers 10 10,000 to 19,999 12 Regional and issue-specific research centers 145 Congressional and Executive Branch briefings 31 Brookings strives to be complete and accurate in recognizing the generous support of our donors. We regret any omissions or errors. 158% hhhh Times Brookings scholars testified before congressional committees 236 41 Public events Most viewed content on brookings.edu in 2013: The inaugural Books published by the Brookings Press Brookings Essay Institutional budget growth 2003 $39,225,000 $95,260,000 2013 0 8 16 24 32 40 48 56 64 72 80 88 96 Budget growth (in millions $) 39 STATE ME N T O F ACT I V I T I ES STATEMEN T OF FI N AN CI AL POS I TI ON Years Ended June 30, 2013 and 2012 (in thousands) Preliminary and Unaudited* As of June 30, 2013 and 2012 (in thousands) Preliminary and Unaudited* UNRESTRICTED TEMPORARILY RESTRICTED PERMANENTLY RESTRICTED FY 2013 TOTAL FY 2012 TOTAL Cash and cash equivalents Revenue and Support Grants, contributions and accounts receivable, net $ 10,023 $  2,973 14,682 58,803 Brookings Press 1,716 Facility and other revenue 2,862 Grants, contracts, and contributions $  12,996 $  12,787 $  6,791 80,276 114,837 – – 1,716 1,941 Property and equipment, net – – 2,862 2,472 Other assets Net assets released from restrictions— Satisfaction of program restrictions 64,793 (64,793) – – – Total Operating Revenue 94,076 (3,017) 6,791 97,850 132,037 $ 29,465 $ 36,643 Inventory 100,679 90,788 341 355 Investments 286,997 262,209 43,094 45,249 2,067 1,687 TOTAL ASSETS 462,643 436,931 Liabilities and N et Assets Liabilities Operating E xpenses Accounts payable and accrued expenses (10,323) (8,050) Program Services Bonds payable and lines of credit (42,221) (43,540) Economic Studies 14,740 – – 14,740 15,636 Accrued compensated leave (1,688) (1,366) Foreign Policy 19,926 – – 19,926 19,157 Accrued post-retirement benefit obligation (2,148) (2,305) Global Economy and Development 9,587 – – 9,587 9,317 Governance Studies 6,691 – – 6,691 6,665 12,513 – – 12,513 12,143 535 – – 535 1,850 Brookings Press 2,775 – – 2,775 2,690 Communications 2,275 – – 2,275 2,485 69,042 – – 69,042 69,943 21,861 – – 21,861 18,642 2,898 – – 2,898 2,593 93,801 – – 93,801 91,178 Metropolitan Policy Program Other research Total Program Services Supporting Services Management and General Fundraising Total Operating Expenses Net Operating Activities 275 (3,017) 6,791 4,049 40,859 Change in net assets before non-operating activities 275 (3,017) 6,791 4,049 40,859 N ON - OPE RATI N G ACT I V I T I ES Realized gain (loss) on sale of investments 10,979 – – 10,979 8,462 Unrealized gain (loss) from investments 18,927 – – 18,927 (10,262) Interest and dividends, net Investment return designated for operations Total investment return (loss) in excess of amounts designated for operations 1,809 – – 1,809 (10,023) (2,973) – (12,996) (12,787) 305 21,692 (2,973) – 18,719 (14,282) Total Non-Operating Activities 21,692 (2,973) – 18,719 (14,282) Change in net assets before post-retirement related changes other than net periodic post-retirement benefit cost 21,967 (5,990) 6,791 22,768 26,577 157 – – 157 288 CHANGE IN NET ASSETS 22,124 (5,990) 6,791 22,925 26,865 Net assets, Beginning of year 171,192 141,094 69,022 381,308 354,443 $193,316 $135,104 $75,813 $404,233 $381,308 Post-retirement related changes other than net periodic post-retirement pension cost Net assets, End of year Deferred revenue (2,030) (362) (58,410) (55,623) Unrestricted (193,316) (171,192) Temporarily restricted (135,104) (141,094) Permanently restricted (75,813) (69,022) (404,233) (381,308) $(462,643) $(436,931) TOTAL LIABILITIES N et Assets TOTAL NET ASSETS TOTAL LIABILITIES AND NET ASSETS Operating Revenues Program Services Expenses 29% Foreign Policy 84% Gifts and Grants 2% Publications Investment return in excess of amounts designated for operations 40 2012 TOTAL ASS ETS OPE RATIN G ACT I V I T I ES Investment return designated for operations 2013 TOTAL 11% Endowment 3% Miscellaneous 1% Other Research 21% Economic Studies 18% Metropolitan Policy Program 10% Governance Studies 4% Publications 14% Global Economy and Development 3% Communications Notes: As a nonprofit and scientific organization, B ­ rookings is exempt from federal income taxes under section 501(c)(3) of the Internal Revenue Code. The Institution also qualifies as a publicly supported organization under section 170(b)(1)(A)(vi) of the code. Brookings policy is to make an annual investment spending allocation for the support of operations. This amount is calculated based on 70% of the prior year’s spending adjusted for inflation and 30% of 5% of the market value of the investments as of December 31 of the prior fiscal year. Certain reclassifications of prior year balances have been made to conform to the current year ­presentation. * A copy of the Institution’s audited financial statements is available by request. 41 Brookings Editors: Robert Moore and Jessica Gibbs Design and Print Production: McMurry/TMG Jeffrey Kibler, Adriana Guevara, Brenda Waugh Printing: Chromographics Cover Photography: Paul 42 Souders/Getty Images Copyright © 2013 The Brookings Institution 1775 Massachusetts Avenue NW Washington, DC 20036 Telephone: 202.797.6000 Fax: 202.797.6004 www.brookings.edu