2. MESSAGE FROM THE PRESIDENT 1
KEY FIGURES 3
INDUSTRY AND MEMBERS’ AFFAIRS 5
PARTNERSHIPS WITH THE WORLD ECONOMIC FORUM 6
KNOWLEDGE MANAGEMENT AT THE FORUM 7
THE ANNUAL MEETING IN DAVOS 8
MIDDLE EAST/NORTH AFRICA BUSINESS INITIATIVE 9
REGIONAL ACTIVITIES AND RELATED SERVICES 10
EAST ASIA ECONOMIC SUMMIT, SINGAPORE 11
INDIA ECONOMIC SUMMIT, NEW DELHI, INDIA 12
USA MEETING, WASHINGTON DC 13
CHINA BUSINESS SUMMIT, BEIJING AND SHANGHAI 14
MERCOSUR ECONOMIC SUMMITS 15
CENTRAL AND EASTERN EUROPEAN ECONOMIC SUMMIT 16
SOUTHERN AFRICA ECONOMIC SUMMIT 17
RUSSIA MEETING 18
GLOBAL LEADERS FOR TOMORROW PROGRAMME 19
INITIATIVES 20
CONTENTS
FOUNDATION BOARD 22
EXECUTIVE BOARD AND COUNCIL 23
MEMBER COMPANIES 24
KNOWLEDGE PARTNERS
AND INSTITUTIONAL PARTNERS 28
3. Last year was another successful year for the World
Economic Forum. Nevertheless, it was also an appropriate
time to prepare for the new millennium. Thus, substantial
resources and energies have been invested in the creation
of the World Economic Forum for the 21st century. In close
cooperation with many of our members, particularly with our
Council, and assisted by the advice of some of the leading
consultancy companies, we have repositioned the
Foundation to expand and increase the value proposition
provided to our members. We will, of course, continue to
build on our past successes and ensure linkages and
1
complementarities between our different activities and
initiatives.
We have been guided by three principles:
1. Deeper engagement of our members and constituents
The Foundation is the creator and facilitator of the
world’s foremost community of political, business,
intellectual and other leaders of global society. Our
activities are member and constituent driven and will be
increasingly so in the future. We plan to deepen our
processes of engagement and leverage the new
technological opportunities for community building and
knowledge sharing. Some of our new efforts include
establishing Regional Councils to provide us with insights
and guidance in our efforts to extend and deepen the
role that the Forum has played in regional cooperation
and development. We will also form special Steering
Committees for each of our industry sectors to ensure
FROM THE PRESIDENT
even more closeness to specific strategic challenges,
which our members have to face in a globalizing
economy.
2. Leading in the creation and application of interaction and
knowledge tools based on state-of-the-art
technologies
We have always been technological pioneers. In
particular, our Annual Meetings in Davos have been the
test place for a number of new communications
technologies. Now, we want to go a step further by
MESSAGE
creating a knowledge backbone in all the areas where
we are active. As an example, we will introduce in each
of our industry sectors the tools and mechanisms that
4. help to capture and share ideas regarding the key
concerns of our members. This will be implemented in
those areas where collaborative efforts of the industry
are necessary, for example in dealing with societal
expectations and challenges. We have tested the first of
these tools and feel confident that the Foundation can
become a major driving force and a pioneer in the
creation of the ‘‘knowledge society’’.
3. Building a content and process orientation
2
The third principle in our refocused efforts is a logical
consequence of the application of the first two
principles: we will be much more content and
process-oriented in our activities, moving away from an
‘‘event approach’’. One of our new initiatives in this
respect is the Centre for the Global Agenda (CGA)
which will serve as a catalyst in defining, monitoring and
driving the global agenda. It will act as a hub of
networks and alliances on important global issues and
will play a key role in the world’s international system.
The Centre for the Global Agenda will be forward-
looking and dynamic. It will be a global integrator of
people, ideas and knowledge relevant to defining and
shaping the key issues on the global agenda. The
Centre will bring together business, political, intellectual
and civic leaders in generating, advancing and sharing
solutions to key challenges that lie at the interface of
the public and private sectors. It will build upon the
strengths of the World Economic Forum adding process
and content components that reinforce the depth of all
Foundation activities.
All of these efforts will build upon our core activities and
enable us to further pursue our mission of being initiator,
catalyst and facilitator of the foremost global community of
business, political, intellectual and other leaders of society.
5. KEY FIGURES
in Swiss Francs
YEAR 1994/95 1995/96 1996/97 1997/98 1998/99
Total income, 32,681,090 36,347,457 42,074,397 51,890,452 51,306,002
out of which
members’ fees 13,537,250 14,887,600 16,047,893 18,761,000 20,915,531
Total expenditure
including R&D
and investments 32,293,679 35,783,161 41,432,138 51,047,818 50,380,441
Surplus to be
added to the
Foundation capital 387,411 564,295 642,259 842,633 925,560
Foundation capital 4,087,291 4,651,587 5,293,847 6,136,481 7,062,041
TOTAL STAFF
Full time 56 58 59 73 68
Part time 11 21 21 26 24
In its transfer to a knowledge and process oriented organization, in 1998 the Forum invested particularly in its human
resources, which was reflected in an increase of personnel costs of 10.90%.
As far as income is concerned, for political reasons the Middle East/North Africa Summit could not be organized in 1998
and our income decreased from Sfr 51,890,452 to Sfr 51,306,002.
6. This accounting year has been marked by four major
developments with long-term implications for the future of
the World Economic Forum, putting in place some key
components of the 21st century.
First, we have moved to our new headquarters overlooking
Lake Leman in Geneva. It has been more than just a
physical move; this has been a development of major
significance. It has given the Foundation a clearly identifiable
‘‘physical’’ presence in its Swiss and Geneva home base that
it didn’t have until now – a major step as the Foundation
4
approaches the 30th anniversary of its creation. It also sends
a very powerful message on what the World Economic
Forum strives to be – open and transparent, outward-
looking, innovative and high-tech oriented. Above all, our
new premises will allow us to add the additional resources
needed to fulfil the development plans envisaged over the
next few years to make sure that the Forum will be able to
continue to expand its services to its members and
constituents to increase its relevance and usefulness to be
even more in a position to fulfil its commitment to improving
the state of the world.
The second development is the decision to create the Centre
for the Global Agenda, integrated into the World Economic
Forum but with its specific structures and resources. The
Centre will be the key instrument in making the Forum more
process and substance oriented. It will be in charge of
developing a number of projects and initiatives on issues of
priority interest to Forum members and constituents,
providing an inputting mechanism for all the Forum’s
activities. The Centre will function as a hub for global policy
networks. By providing a system of sustained contacts and
interactions with the top academic experts and the major
think tanks in the world, it will ensure that the Forum always
remains on the top edge of the knowledge creation and
integration process, thus increasing the value and relevance
of its activities to its members and constituents.
A third development has been the major overhaul and
expansion of our whole IT infrastructure. This has created
the much-needed in-house capability for a comprehensive
approach to the management of our relationship with our
members, and will allow the Forum to be an even more
member-driven organization. We now have the technological
capabilities not only to create a knowledge backbone
internally but also to become easily accessible to our
members and constituents. Such a development is an
important element in the Forum’s strategic orientation to
increasingly become a knowledge and process-oriented
organization.
The fourth development is the internal reorganization that
took place last spring. The regroupment of activities around
eight ‘‘clusters’’ has created a structure that will allow for
greater synergies inside the organization and contribute to
developing stronger leadership capabilities. This new
structure will also help to create clearer and more promising
career patterns inside the Forum. It will help to attract and
keep the new talents and additional resources needed to
implement the Forum’s strategy to enter the 21st century
as a knowledge based, input and process-oriented
organization, ever more capable of meeting the needs and
expectations of its members.
7. INDUSTRY AND MEMBERS’ AFFAIRS
One key aspect of this year’s activities has been the
emphasis put on making the Forum an even more
member-driven organization. Our strategy remains to limit
Foundation membership to the world’s 1,000 foremost global
corporations. Therefore we have continued our drive towards
improving and upgrading the quality and composition of
our membership in order to fully reflect the trends in
the global economy from a sectoral as well as a geographical
point of view.
5
In order to strengthen the notion that members are part of
an exclusive community of key decision-makers, and to
reinforce the relevance of the World Economic Forum as the
foremost global partnership of business, political, intellectual
and other leaders of society committed to improving the
state of the world, we have reinforced the implementation of
transparent membership criteria. We have also pursued our
policy of taking an even more selective approach with
companies applying for membership. At the same time we
have continued to separate from some companies which
have been part of our membership for ‘‘historical’’ reasons
but which no longer fulfil the criteria.
The Industry Affairs cluster is first and foremost responsible
for engaging Foundation members at the highest level in
the activities of the Forum. The cluster represents the key
engine in ensuring that the Forum’s activities and services
are responding to the present and, even more important,
future needs and expectations of member companies.
The idea is to enhance the Forum’s relevance and
sustainability by strengthening a real sense of stewardship
MEMBERS’ AFFAIRS
and involvement among key members.
The Industry Affairs cluster is structured on an industry
basis in order to enable the Forum to become a true
‘‘insider’’ on major issues of particular relevance and
INDUSTRY AND
importance to the world’s most important and dynamic
corporations. The cluster encompasses five teams:
Communications, Services, Manufacturing, Mobility and
Consumer Goods. Much effort has been directed to ensuring
that the cluster develops a knowledge base on all
industry-relevant issues of strategic importance. The purpose
is to guarantee relevant and useful content for the
Governors Meetings and other industry related activities.
The Forum’s Governors Meetings continue to provide an
increasingly valuable mechanism, allowing top leaders from
different sectors to meet informally among themselves to
examine and discuss strategic options to challenges and
opportunities facing their sectors. At present, there are
14 Industry Governors Groups. At the Annual Meeting 2000
we will introduce a new Governors Meeting in the Chemical
Industry. In an effort to make these gatherings more process
oriented, and to reinforce their long-term club character,
several initiatives and gatherings focusing on issues of
paramount strategic importance to a given industry have
been developed outside the yearly meetings in Davos.
8. PARTNERSHIPS WITH THE WORLD ECONOMIC FORUM
Over the last year, the Forum has seen a substantial
increase in the interest of our members to join the circle of
partner companies. While this positive response
demonstrates our great success with the partnership
offering, it has also caused us to reflect on our strategy.
The Foundation’s independent and impartial nature as a
membership organization is given highest priority when
determining partnership objectives. One of the basic
principles of the partnership opportunity is that the Forum
6
should be able to count on the partner company’s
specialized knowledge about a region or industry to bring
added value to our activities. Hence we established the
scheme of ‘‘Knowledge Partnership,’’ which now provides
the framework for our relationship with a group of our
members. Over this last year, the Forum has streamlined
and simplified partnerships at our Regional Summits and
the Annual Meeting with the objective of providing a clear
and transparent system to ensure fairness among all
members and partners.
The advent of the Knowledge Partnership scheme has
allowed the Forum to embark with renowned businesses on
numerous research projects and initiatives in an effort to
bring thought-provoking data and approaches to our
membership on a variety of subjects. These subjects
include benchmarking of the truly global corporation, how
strategic leadership permeates an organization, corporate
THE WORLD ECONOMIC
performance, knowledge management or what is on the
mind of the CEO worldwide. Several important internal
projects (for example, the development of a knowledge
PARTNERSHIPS WITH
database and the creation of a new IT infrastructure) that
are shaping the abilities of the Forum to move into the next
century have been initiated with key Knowledge Partners.
Finally, the number of Institutional Partners, which support
several of the Forum’s activities annually, have doubled
since this time last year. Several of our Institutional
Partners offer their infrastructure capabilities, which allow
participants to enjoy top-quality services during our
activities. We are pleased to recognize these companies
for their ongoing support and to thank them for their
respect of our mission of ‘‘improving the state of the
world’’.
FORUM
9. KNOWLEDGE MANAGEMENT AT THE FORUM
As mentioned above, this year has been marked by a major
overhaul of the World Economic Forum’s entire IT
infrastructure. This also allowed us to offer new services
to Forum members and participants at the 1999 Annual
Meeting. On this occasion, we deployed important new
technologies to help participants make better use of the
many opportunities and services provided by the meeting.
Each participant carried a computer with network
capabilities – actually hidden in his or her badge. This
7
significantly increased the capabilities for identification of
participants and the level of security in the Congress
Centre. The Kiosk, the interactive information and
communication platform, allowed the participants to send
and receive e-mail, look up programme details and meeting
venues, create a personal agenda and search through the
electronic version of the participants booklet.
At the internal level, the core of our system, the
membership database and back-office system, has been
redesigned and reinforced with the help of Andersen
Consulting. We have now successfully implemented the
system with the clear target of higher standards and
improved performance in managing the Forum’s relationship
KNOWLEDGE MANAGEMENT
with its members and constituents, the servicing of our
members and our internal operations.
The key orientations of the newly formed Knowledge
Management cluster are based on the professionalism of
the IT environment and the related operations; the creation
of the necessary IT infrastructure for knowledge sharing
and integration within the Forum and with our members;
and the development of our relations with our partners
who help us to continually adjust and expand our IT
infrastructure. This strategy should allow the Forum to
benefit from the optimum internal infrastructure needed to
provide high-quality services to our members, allowing the
AT THE FORUM
Forum to evolve into new directions like knowledge sharing
and integration for our members. This will also ensure that
our needs for new and evolving IT technologies can be
fulfilled with the help and involvement of our partners.
10. THE ANNUAL MEETING IN DAVOS
(28 JANUARY – 2 FEBRUARY 1999)
Responsible Globality: Managing the Impact of Globalization
The sessions of the Annual Meeting focused around the
overall theme Responsible Globality: Managing the
Impact
of Globalization. Crucial discussions were held to look at
where globalization is taking us and how we can make it a
more responsible process. In the midst of the Asia crisis,
8
after the financial collapse in Russia and the Brazilian crisis,
as the world financial markets were still reeling from the
LTCM shock, it was clear that globalization and free markets
left to themselves do not always produce the desired or
necessary results for society at large. There was wide
agreement that although a free market system is the best
and most efficient, there are inequalities that government, in
new partnerships with other sectors of society, need to
address. Senior political leaders participating in the Annual
Meeting recognized the need for governments to evolve in
order to respond effectively to the challenges posed by
globalization and the growing backlash of large segments of
the world’s population.
Following the reaction to the IMF’s reform plans in Asia,
the outcome of the 1999 Annual Meeting was to reinforce
the need for international organizations to adjust their modus
operandi and programmes to the new requirements created
by the global economic environment. In all discussions,
from Amartya Sen, Nobel Economic Prizewinner, to
THE ANNUAL MEETING
Vice-President Al Gore, the need to address the concerns of
the individual facing the daunting challenges of globalization
was clear. From the business world, governments, academia
and the NGO community there was resounding momentum
to create the necessary partnerships and new mechanisms
to ensure that globalization has a human face.
If the discussions centred on the need for a responsible
globality had wide-ranging impact in the media and among
economic and political decision-makers, the same can be
said of those related to the emergence of the e-economy
and its implications for business strategies, economic
IN DAVOS
prospects and the way our societies will operate in the
future. Expanding on the trend of the last few years, the
Annual Meeting confirmed its major role as a provider of the
framework and the platform for discussing and sharing
insights on the e-economy in reshaping the way corporations
and national economies will have to perform.
Bringing together the key players from all sectors of society
including government, business, academia and the media,
the 1999 Annual Meeting confirmed its significant role and
impact in shaping the global agenda on key issues such as
the new world of e-commerce, the impact of the Internet,
the role of the US and Russia, and the challenges of the
euro. In addition, the Meeting in Davos served to highlight
key debates that are emerging between different regions of
the world about corporate governance, privacy, genetics and
differing visions of capitalism.
The 1999 Annual Meeting also reinforced the GLT Wake Up
Europe initiative, focusing on key reforms needed to ensure
European economic growth, and launched the GLT Transition
to Peace initiative involving South Africa, the Middle East,
Northern Ireland, and Bosnia and Herzegovina.
11. MIDDLE EAST/NORTH AFRICA BUSINESS INITIATIVE
In the absence of a full-fledged Middle East/North Africa
Economic Summit, the Forum convened a special Middle
East/North Africa Business Initiative in the context of the
1999 Annual Meeting. The objectives of this gathering,
which included 200 business leaders, were to highlight the
business potential of the MENA region to the international
business community; to examine the effects of globalization
on the region; to assist in making the region resistant to
the impact of global financial volatility; and to assess the
9
competitive position of the MENA region in the world
economy.
The MENA Business Initiative was host to a series of
constructive discussions on the need to better integrate the
region’s economies into the mainstream of globalization.
Throughout the two-day gathering, participants discussed
how the MENA economies could better withstand the
compound pressures of the globalization process and low
commodity prices. There was also much deliberation on
how political obstacles and the stalled Middle East peace
process continue to have negative effects on the region’s
prospects.
MIDDLE EAST/NORTH AFRICA
The MENA Business Initiative responded to a real need for
regional executives to stay in the forefront of the global
economy and to avoid a certain degree of economic and
commercial marginalization. The business-driven approach
of the discussions allowed for a greater focus on practical
and concrete opportunities, on prospects for joint ventures
and on possibilities for intra-regional trade.
BUSINESS INITIATIVE
A number of proposals were raised during the MENA
Business Initiative, including:
• The Creation of a set of benchmarking standards to link
regional capital markets and coordination of financial
institutions. In this respect the group pledged to finance
a study on the liberalization of financial services in the
region.
• A commitment and pledge from participants to create a
MENA Business Council to allow the private sector to bring
forth recommendations to governments on policies to
create a user-friendly business environment; to examine
scenarios for regional cooperation projects and intra-
regional trade; to identify new commercial opportunities and
to recommend structures and mechanisms to enhance
business networking and bridge-building between chief
executives and government representatives.
12. REGIONAL ACTIVITIES AND RELATED SERVICES
In this era of time compression and ever-accelerating
changes, our member companies are revising their
corporate and development strategies on a regular basis.
Our Regional Summits and Country Initiatives constitute an
integrated and consistent system of involvement in all the
key areas of economic activity of a specific region.
The unique methodology and services available at each
World Economic Forum gathering allow members and
constituents to:
10
• share first-hand information and insights on the key trends
and developments affecting a region’s outlook
benefit from an exclusive and direct interface with political
•
leaders of the region
investigate new business opportunities directly with
•
business leaders from the region, offering a privileged
framework for intensive business networking, forging new
partnerships and alliances
have an impact on key issues affecting the business
•
relationship between the region and its key partners around
the world
participate actively in creating a more dynamic and
•
investor-friendly environment.
The Regional Summits of the World Economic Forum are
recognized today as the most time efficient and productive
tool for senior executives wishing to consolidate or expand
AND RELATED SERVICES
their business horizons worldwide. In 1999 close to 7,000
participants integrated our regional activities into their travel
REGIONAL ACTIVITIES
and business plans, thus proving the net worth we always
seek to deliver to the top echelons of international business.
New mechanisms are currently being developed to provide
the Forum and its members with the opportunity of
following up on specific issues and strengthening the
impact of our activities. For example, 14 Business
Interaction Groups (BIGs) were held over the last
12 months. Each BIG aims to deepen the process of
mutual interaction of policy-makers of developing countries
and leading multinational businesses. Members of the
World Economic Forum are invited to participate throughout
the year in one or several BIGs within their field of interest.
Discussions take place face to face with top political
leaders of countries concerned during the Annual Meeting
and are followed up at our relevant Regional Activities.
The Regional Activities are the Forum’s footprints around
the world and play a central role in creating more dynamic
and investor-friendly environments. These activities also
provide a mechanism whereby our regional constituencies
can be engaged in our global community of decision-makers.
13. EAST ASIA ECONOMIC SUMMIT, SINGAPORE
(13 – 15 OCTOBER 1998)
The seventh East Asia Economic Summit took place in an
atmosphere of soul-searching, as leaders from government,
business and academia met to define Asia’s new route
to come out of the crisis and ensure sustainable growth
and global competitiveness. A unique sense of realism
permeated the discussions, and resulted in a clear vision
of the weaknesses that fed the crisis, the policy measures
that were needed to correct these weaknesses and the
11
future shape of the new economic and business landscape.
As Philippine President Estrada noted during the Summit,
‘‘The crisis is an opportunity to do more than repair work.’’
Despite the fact that the crisis had not yet bottomed out,
the mood at the Summit was cautiously optimistic.
Government and business leaders comprehensively outlined
their plans for restructuring and reported on the progress
achieved to date. Business leaders unveiled responses to
the key challenges ahead for corporate renewal, with a
clear recognition that the old ways of doing business in the
EAST ASIA ECONOMIC SUMMIT
region were no longer applicable.
Participants took the opportunity of the Summit to air their
concerns and make recommendations for solutions to the
problems facing the region. The ‘‘Action Plan for Global
Growth and Reform of the World Financial System’’, a
blueprint drawn up by some participants for a coordinated
global response to the crisis, which included calls for action
from the US, Europe and Japan, had a significant impact
in the international media and among policy-makers. It was
one manifestation of the extent of open and proactive
dialogue that took place.
There can be no doubt that many of the thoughts and
ideas, as well as the opportunities, that surfaced at the
East Asia Economic Summit have contributed to the
renewed phase of expansion in the region. By bringing
together the key players in the Asian market, the Summit
proved to be an excellent catalyst for action.
14. INDIA ECONOMIC SUMMIT, NEW DELHI, INDIA
(29 NOVEMBER – 1 DECEMBER 1998)
The India Economic Summit (held in partnership with the
Confederation of Indian Industry) took place soon after
the new government presented its economic and financial
priorities and policies. Prime Minister Atal Bihari
Vajpayee stressed that India’s economic agenda is now
‘‘depoliticized’’ in order to ensure that reforms are
irreversible. He then presented his 12-point programme to
enable India to ‘‘face the challenges of full liberalization
12
and globalization’’.
In other major sessions, the Ministers of Finance, Industry
and Power, the Vice-Chairman of the State Planning
Commission as well as many senior government officials
presented their priorities and action plans and had intensive
debates with the 500 Indian and international business
participants taking part in the Summit. Other important
dimensions were sessions with four chief ministers from
major Indian States and a special seminar on investment
opportunities in Sri Lanka.
To conclude the Summit, the four co-chairmen presented
a list of recommendations to the Indian decision-makers,
the strongest of which was ‘‘implement fast all the new
economic policies and laws announced towards liberaliza-
INDIA ECONOMIC SUMMIT
tion and opening up of the economy to allow domestic and
foreign investment to grow and contribute to India’s
prosperity’’.
Six months after the 1998 Summit, the government lost
a vote of confidence. New elections have since taken
place. The India Economic Summit 1999 will offer us the
occasion to meet the new government.
15. USA MEETING, WASHINGTON DC
(14 – 15 APRIL 1999)
This year's USA Meeting offered over 200 senior business
leaders from some 27 countries a virtually unparalleled
perspective of the United States economy and its role in
the world. The theme of the meeting, Operating in the
New Global Market Place, focused on the impact that
globalization was having on the US economy, and how
firms – both domestic and international – were adapting.
13
Four members of the Cabinet and a host of other senior
government officials shared their insight with participants.
While there was general satisfaction with the current
strength of the US economy among members of the
Administration, they also stressed the need for other
regions of the world, in particular Europe and Japan, to
proceed urgently with structural reforms of their economies
in order to stimulate demand worldwide.
During the 24-hour gathering, participants also discussed
a number of management topics critical to maintain a
competitive edge in today's unforgiving business
environment. These included a look at the future of industry
consolidations, the prospect for various currency regimes
and monetary policy in general, and the need to constantly
promote innovation in today's companies.
The meeting reflected much of the ambivalence felt by
business leaders in today's economy: an admiration for the
success of the US economy in the last decade, especially
the conduct of the Federal Reserve, but also concern about
some of the financial instability that persists worldwide and
the fragility of the global economy.
USA MEETING
16. CHINA BUSINESS SUMMIT, BEIJING AND SHANGHAI
(25 – 28 APRIL 1999)
The Forum’s nineteenth China Business Summit was
organized in partnership with the State Economic and Trade
Commission and China Enterprise Confederation. It took
place in the context of general economic slowdown and
deepening deflationary pressures. The future of WTO
negotiations and the growing discrepancies between the
Chinese leadership’s longer-term and short-term economic
imperatives provided a backdrop for most of the
14
discussions.
Several sessions were devoted to the renewed urgency to
reflate the economy and reinvigorate domestic demand.
A new fiscal boost, the viability of interest rate cuts and the
pros and cons of potential exchange rate adjustments were
among the hotly debated topics. Considerable attention was
also paid to the current state of the key economic reforms:
state enterprises, housing, insurance, the labour market
and the promotion of private business. Chinese business
participants engaged in networking with the members
of the World Economic Forum, discussing a range of
innovations and novel ideas in a series of sessions on
branding, R&D, e-commerce and corporate governance.
The second part of the Summit in Shanghai focused more
CHINA BUSINESS SUMMIT
specifically on the development of the financial industry
as the backbone of China’s modernizing economy. The
complementary needs to deepen fixed-income markets,
further develop fund management industry and strengthen
the banking system’s intermediating role were stressed in
an interactive exchange between decision-makers, experts
and foreign participants. The Summit was an excellent
opportunity to meet the growing group of young, successful
Mainland entrepreneurs whose ideas and achievements will
undoubtedly mark the coming century.
17. MERCOSUR ECONOMIC SUMMITS, BUENOS AIRES,
ARGENTINA (21 – 23 JULY 1998) AND SANTIAGO,
CHILE (5 – 7 MAY 1999)
The fourth and fifth Mercosur Summits took place within
the same fiscal year. They reflected the full commitment
of heads of state from the Mercosur region and associate
countries to support the Forum’s initiative to promote
the interface between senior executives from member
companies and regional political and business leaders.
15
The Mercosur Summit – Davosito as it is known in Latin
America – has now truly established itself as the major
yearly event in the region.
Our Summits in Buenos Aires and Santiago took place in
the context of two very different momenta in South
America. In Buenos Aires, key discussion leaders as well as
the business community debated the consequences of the
Asian crisis on the Mercosur economies and highlighted the
MERCOSUR ECONOMIC SUMMITS
importance of promoting the region’s competitiveness
through the improvement of physical infrastructure.
In Santiago, on the other hand, discussions focused on
the lessons learned from the Brazilian crisis and its efficient
management to avoid new shocks. The issues of political
stability in the region and the upcoming presidential
elections in the Southern Cone were also on the agenda.
Issues such as the Free Trade Agreement of the Americas
and the EU-Mercosur free trade negotiations were raised at
both Summits. The negotiation process for both initiatives
has advanced more slowly than expected, which is a source
of frustration for leaders in the Mercosur region. However,
the long-term strategy of cooperation with the two largest
integrated markets in the world is the best guarantee to
secure domestic and foreign investment as well as a step
towards stability.
18. CENTRAL AND EASTERN EUROPEAN ECONOMIC
SUMMIT, SALZBURG, AUSTRIA (30 JUNE – 2 JULY 1999)
The Central and Eastern European Economic Summit
convened for the fourth time in Salzburg, Austria, from
30 June – 2 July 1999 in an atmosphere of hope and
cautious optimism. Hope that the end of the Kosovo
conflict would lead to committed action for reconciliation
and reconstruction. Optimism because the crisis had
opened the possibility of a new beginning and a new focus
on the integration of the region. Above all, it had pointed
16
to the need to expand the scope of thinking about the
shape of a larger Europe.
The meeting brought together over 800 business and
political leaders, top experts and opinion-makers from the
media to discuss the burning issues on the region’s
agenda. As in past years, President Thomas Klestil of
CENTRAL AND EASTERN EUROPEAN
Austria extended his patronage to the Summit, which was
attended by most of the presidents and prime ministers of
the region. The overriding importance of the war in Kosovo
as a defining moment in post Cold War history cast a new
light on questions such as accession to the European
Union, investor confidence in the transition economies and
security challenges of the next decade. For the first time,
issues relating to the whole of Europe, including the
prospects of Western Europe’s economic growth rates were
also taken into account.
Russia’s place in Europe was prominently highlighted by the
largest ever high-level representation from that country to
the Summit. Then Prime Minister Sergei Stepashin came
to deliver his first public speech in the West stressing his
ECONOMIC SUMMIT
new reform programme for Russia and the key role of
his country in Europe.
Very concrete business issues such as investment
opportunities in new privatizations, the battle against
corruption, the restructuring of the banking systems, the
prospects for stock market recoveries, the development of
information technologies and the financing of future
infrastructure projects remain the backbone of the delibera-
tions and were extensively discussed during the sessions.
They will be on the agenda again in 2000 when the
Summit will reconvene in Salzburg. The Summit has
become the unique annual meeting place for the business
and governments of the region and beyond. It is now firmly
established as an indispensable part of the calendar year.
19. SOUTHERN AFRICA ECONOMIC SUMMIT, DURBAN,
SOUTH AFRICA (4 – 6 JULY 1999)
The ninth Summit was held under the theme Responsible
Leadership for Stability, Action and Growth. A
mere three weeks after the elections in South Africa the
entire South African Cabinet led by the new President,
Thabo Mbeki, was introduced for the first time to our mem-
bers and
the international business community. Nigeria’s new Vice-
17
President was our special guest along with 850 business
and political leaders from the region and abroad. Three
broad challenges were scrutinized and discussed with a
SOUTHERN AFRICA ECONOMIC SUMMIT
view of finding solutions and actions to bring about a new
dynamic to the business environment in Southern Africa:
•
The need for a comprehensive plan for regional integration.
South African President Thabo Mbeki engaged his
government to present a timetable and plan by June 2000.
•
The urgent need to increase capacities in all areas of eco-
nomic and political activities with the necessary institutions.
•
Devising new and better communication strategies with
the rest of the world, as it is clear that Africa does not yet
hold the place it should in the boardrooms of international
companies.
The World Economic Forum has built the strongest and
highest level network of international and regional leaders
committed to improving Southern Africa. This yearly
gathering has achieved global recognition as the ‘‘must’’
meeting for those wishing to play a role in this desirable
objective. The world simply cannot afford to ignore Africa
and Africans cannot ignore the ever-accelerating pace of
change required to achieve and maintain a competitive
environment. The Summit and the process that it creates
allows all stakeholders in the region to explain their views
and objectives, their concerns and constraints and, more
importantly, to lock their brains together to seek solutions
that end up in win-win situations. The Summit also allows
us to confront perceptions with realities and, in so doing,
to create better understanding between those who are
ultimately charged with the responsibility of bringing
Southern Africa forward.
The Southern Africa Economic Summit 2000 will once
again take place in Durban (from 21-23 June) allowing us
not only to see how much progress will have been achieved
in Southern Africa but also to investigate means and
processes through which a real African Renaissance can
be kick-started. In this respect, next year’s Summit will
also feature the launch of our Africa Competitiveness
Report 2000.
20. RUSSIA MEETING, MOSCOW (4 – 5 DECEMBER 1998)
In keeping with the World Economic Forum’s consistent
support of Russia’s integration into the global economy,
the sixth Russia Meeting in Moscow was convened to give
the members of the World Economic Forum a first-hand
assessment of the critical economic and political crisis
following the drastic currency devaluation and sudden debt
moratorium that had shaken the country since August
1998. It was important for our member companies to be in
Russia to understand how the achievements of reform
18
could have been undone so quickly, whether they could be
salvaged and what useful action could be taken.
Russia’s most senior government, parliamentary and
business leaders outlined the state of the economy, its
prospects for the near future and the outlook for a
teetering banking system. As Russia headed into a year of
legislative and presidential elections, the various scenarios
for future political development were also considered. In his
opening statement, then Prime Minister Yevgeny Primakov
directly addressed some of the key concerns of foreign
investors including how the liquidity crisis would be tackled,
what would be the fate of the banking system, what the
future holds for Russia’s industrial structures and whether
the upcoming election period would bring increasing
instability. Specific measures were pledged to resolve the
severe financial crisis and specifically to reduce the federal
budget deficit, to reform taxes, to facilitate foreign
investment and to address the problem of capital flight.
Vladimir Ryzhkov, First Deputy Chairman of the State Duma,
stressed the need for political reform. Grigory Yavlinsky,
Head of the Yabloko Movement, pointed out that with all
the emphasis placed on economic change, the sociological
and political development of Russia had been tragically
RUSSIA MEETING
ignored. Political parties, civil institutions and important
legislative measures had yet to be created.
In conclusion, the meeting’s one Russian and two
non-Russian co-chairmen specified seven key priorities for
immediate action. Taking place at a low point in investor
confidence in Russia, the meeting provided a unique
occasion for our members to re-establish relationships
and to engage in a meaningful exchange with a broad
spectrum of Russia’s business and political leadership.
21. GLOBAL LEADERS FOR TOMORROW PROGRAMME
Major advances have been achieved in the Global Leaders
for Tomorrow (GLT) programme over the past year. The
GLT network, for which 100 individuals are recruited each
year, represents the new generation of global decision-
makers from business, politics, civil society, academia and
the media.
The GLTs have been systematically incorporated into all the
World Economic Forum’s activities. During their meeting
19
in Davos in February they decided to launch a number
of initiatives and task forces on issues related to key
challenges that they have identified as we enter the
21st century. This move was a continuation of a process
launched with the ‘‘Wake Up Europe’’ initiative brought
forward by a group of European GLTs to assess and define
the success factors for a prosperous and stable Europe,
GLOBAL LEADERS FOR TOMORROW
which has started a debate in Europe. The initiatives
decided in Davos ranged from launching a project to
establish criteria for measuring environmental performance
indicators to a ‘‘Business of Cooperation’’ initiative which
addresses the role of business in fostering political stability
and cooperation that in turn can benefit companies’
financial bottom line. As another example, the initiative on
‘‘Technology to Alleviate Poverty’’ is identifying the role
technology can take to help developing countries address
their problems. It was decided that these initiatives would
be reviewed during a GLT Summit in Paris (3-5 September
1999).
The uniqueness of the GLT network will ensure that we
address the key challenges in an integrated and
interdisciplinary way, drawing on the diversity, creativity and
dynamism of the GLT network. The GLT initiatives will be
integrated into our programmes, providing the Foundation
and its members with an in-depth knowledge of some of
the key issues our society is facing by discussing these
issues with the new generation of leaders, the GLTs.
PROGRAMME
22. INITIATIVES
Transition to Peace
At the 1999 Annual Meeting in Davos, 60 young leaders
from Bosnia and Herzegovina, the Middle East, Northern
Ireland and South Africa – regions that have made political
breakthroughs in the transition to peace from conflict –
gathered together under the framework of the Transition to
Peace Initiative. Jointly launched by the World Economic
Forum and the Peres Center for Peace, this initiative
provides an important vehicle for generating greater
20
interregional cooperation and exchange. It will also facilitate
economic relations and political dialogue between these
regions and the international community.
Since gathering in Davos, Transition to Peace participants
have continued to meet within each region. The World
Economic Forum integrated one such meeting into the
1999 Southern Africa Economic Summit held in Durban,
South Africa. Young South African business, civil society
and political leaders met for a day and a half prior to the
Summit to examine strategies for social and economic
development in their country. Leaders from the other
Transition to Peace regions joined the South Africans in
order to share the knowledge gained at the meeting with
colleagues in their home countries.
Transition to Peace participants are currently developing a
conceptual framework for peacebuilding that integrates the
common lessons each region has learned from their peace-
making efforts. A newly launched website will make this
information freely available to individuals and organizations
from areas experiencing similar transitions in addition to
everyone in the four participating regions. With this
initiative the World Economic Forum strengthens the global
community by assisting the political and economic
stabilization of post-conflict regions.
INITIATIVES
23. Business Community Responds To Kosovo
Refugee Crisis
As the severity of the Kosovo crisis increased at the end of
May 1999, the World Economic Forum initiated a unique
effort to assist the United Nations High Commissioner for
Refugees (UNHCR) in its work to coordinate the relief effort.
In a letter to members, Professor Klaus Schwab articulated
his personal concern for the crisis and offered to facilitate
the donations of the global business community into the
large-scale integrated humanitarian action.
21
The Forum’s membership responded quickly with personal
and corporate contributions of approximately US$ 1 million to
a special fund set up for the UNHCR. In addition, member
companies directly donated at least US$ 10 million in cash
and in kind to their respective in-country aid agencies working
in the Balkans. These donations showed that not only is the
civic responsibility of business alive and well, but also the
value of strategic partnerships between the private sector and
humanitarian organizations.
UN High Commissioner Mrs Sadako Ogata, who participated
in the 1999 Annual Meeting in Davos and presented the
longer-term challenges to incorporating refugee issues into
the global business agenda, commended the business
community’s response to the Forum’s initiative. Mrs Ogata
commented, ‘‘I hope this endeavour from the world's business
leaders serves as an example for mobilizing private efforts
on behalf of refugees and displaced people not only from
Kosovo, but throughout the world. I have often noted that
the response to humanitarian problems as we move towards
globalization requires global solidarity. Thank you for
strengthening this solidarity with your actions today.’’
The World Economic Forum highlighted the plight of refugees
and the Kosovo conflict in its June 1999 Central and Eastern
European Economic Summit in Salzburg, Austria. The Forum
will continue to address the Balkan situation and similar issues
in its forthcoming Summits in recognition of the positive role
that business plays on the international political stage.
24. MEMBERS OF THE FOUNDATION BOARD
KURT ALIG, Chartered Accountant, Arcadia Treuhand, Switzerland; Secretary of the Foundation Board
PERCY BARNEVIK, Chairman of the Board, ABB Asea Brown Boveri, Switzerland; Chairman, Investor AB,
Sweden; Vice-President of the Foundation Board
RAYMOND BARRE, Former Prime Minister of France; Mayor of Lyon
RONNIE C. CHAN, Chairman, Hang Lung Development Company Ltd, Hong Kong SAR
22
GUY FONTANET, Lawyer; Former President of the State Council of Geneva; Legal Adviser of the
Foundation Board
NOBUYUKI IDEI, President and Representative Director, Sony Corporation, Japan
M. DOUGLAS IVESTER, Chairman and Chief Executive Officer, The Coca Cola Company, USA
HELMUT O. MAUCHER, Chairman of the Board, Nestlé SA, Switzerland; Vice-President of the
Foundation Board
JEAN-MARIE MESSIER, Chairman and Chief Executive Officer, Vivendi, France
FERDINAND PIECH, Chairman of the Board of Management, Volkswagen AG, Germany
HEINRICH VON PIERER, President and Chief Executive Officer, Siemens AG, Germany
KLAUS SCHWAB, President of the Foundation Board
MAURICE F. STRONG, Chairman, Earth Council, Canada; Former UN Undersecretary General
PETER SUTHERLAND, Chairman, Goldman Sachs International, United Kingdom; Co-Chairman, BP Amoco
FOUNDATION BOARD
PLC, United Kingdom
WILLIAM I. M. TURNER, Chairman and Chief Executive Officer, Exsultate Inc., Canada; Vice-President of
the Foundation Board
25. EXECUTIVE BOARD OF THE WORLD ECONOMIC FORUM
Klaus Schwab, President and Founder
Claude Smadja, Managing Director
Gregory Blatt, Director
Barbara Erskine, Director
Frédéric Sicre, Director
COUNCIL OF THE WORLD ECONOMIC FORUM
23
COUNCIL OF THE WORLD ECONOMIC FORUM
JOSEF ACKERMANN, Member, Managing Board, Deutsche Bank AG, Germany
KHALID A. ALIREZA, Executive Director, Xenel Industries Ltd, Saudi Arabia
ABIDIN AZIZAN, Chairman, Petronas, Malaysia
RAHUL BAJAJ, Chairman and Managing Director, Bajaj Auto Limited, India
FRANCO BERNABE, Member of the Board, Fiat, Italy
SIR JOHN BOND, Group Chairman, HSBC Holdings Plc, United Kingdom
SIR JOHN BROWNE, Group Chief Executive, BP Amoco Plc, United Kingdom
JOHN H. BRYAN, Chairman and Chief Executive Officer, Sara Lee Corporation, USA
HUBERT BURDA, Publisher and Chief Executive Officer, Burda Media, Germany
VICTOR L.L. CHU, Chairman, First Eastern Investment Group, Hong Kong SAR
BERTRAND COLLOMB, Chairman and Chief Executive Officer, Lafarge, France
M. SHAFIK GABR, Chairman and Managing Director, Artoc Group for Investment and Development, Egypt
JOSEPH T. GORMAN, Chairman and Chief Executive Officer, TRW Inc., USA
JAAKKO IHAMUOTILA, Executive Director, Fortum Corporation, Finland
E. NEVILLE ISDELL, Chairman and Chief Executive Officer, Coca-Cola Beverages Plc, UK
DONALD R. KEOUGH, Chairman, Allen & Co., USA
NEMIR A. KIRDAR, President and Chief Executive Officer, Investcorp, Bahrain
YOH KUROSAWA, Chairman of the Board, Industrial Bank of Japan Ltd, Japan
SIR MARTIN LAING, Chairman, John Laing Plc, United Kingdom
G. LANGES-SWAROVSKI, Chairman, Daniel Swarovski Corporation, Austria
KENNETH L. LAY, Chairman and Chief Executive Officer, Enron Corporation, USA
CHRIS F. LIEBENBERG, Chairman, Nedcor Limited, South Africa
EXECUTIVE BOARD
GEORGE W. MALLINCKRODT, President, Schroders Plc, United Kingdom
ARNE MARTENSSON, President and Group Chief Executive, Svenska Handelsbanken, Sweden
YUZABURO MOGI, President and Chief Executive Officer, Kikkoman Corporation, Japan
MARK MOODY-STUART, Chairman, Royal Dutch/Shell Group of Companies, United Kingdom
HUGH M. MORGAN, Managing Director, WMC Limited, Australia
MINORU MUROFUSHI, Chairman, Itochu Corporation, Japan
HASSO PLATTNER, Co-Chairman and Chief Executive Officer, SAP AG, Germany
DAVID DE PURY, Chairman of the Board, De Pury Pictet Turrettini & Co., Switzerland
JAMES J. SCHIRO, Chief Executive Officer, PricewaterhouseCoopers LLP, USA
PAULO D. VILLARES, Chairman of the Board, Industrias Villares SA, Brazil
LORENZO H. ZAMBRANO, Chairman and Chief Executive Officer, Cemex, Mexico
26. MEMBER COMPANIES
Bain & Company Inc. Bufete Industrial SA
3m Company
Bajaj Auto Limited Buhrmann NV
A.T. Kearney Inc.
Bajaj Electricals Limited Bunge International
ABB Ltd
Baker & McKenzie Burda Media
ABN Amro Bank NV
Ballarpur Industries Ltd Bureau Veritas Group
ABSA Group Limited
Balli Group Plc Burger Soehne AG Burg
Accel Partners
Baloise-Holding Business Council on National Issues
Achmea Group
Banco Bilbao Vizcaya SA (BBV) Caisse des Dépôts et Consignations
Acindar SA
Banco del Desarrollo Caisse Nationale de Crédit Agricole
Ackermans & Van Haren
(CNCA)
Banco Mercantil
Acnielsen Corporation
Caixa d’Estalvis de Catalunya
Banco Santa Cruz SA
Adecco Group
Caixabank
Banco Santander Central Hispano
Adira
Caixa-Geral de Depositos Group
Adolf Würth GmbH & Co. KG Banco Union SA
Caltex Corporation
Aegon NV Bank Austria AG
24
Canadian National Railway
Aerospatiale Matra Bank Handlowy W Warszawie SA
Company
Aga AB Bank J. Vontobel & Co. AG
Canadian Pacific Limited
Agra Inc. Bank of America
Canal Plus
Agrolimen SA Bank of Bermuda Limited
Cantor Fitzgerald LP
Aicher Group Bank of Jerusalem Ltd
Capital Group Companies Inc.
Akebono Brake Industry Co. Ltd Bank of Montreal
Cargill Inc.
Al Mulla Group of Companies Bank Saint Petersburg Plc
Carl Zeiss
Al-Ahli Commercial Bank Banque Cantonale de Geneve
Carlo Gavazzi Holding AG
Alcan Aluminium Limited Banque de Luxembourg SA
Carlsmith Ball S.C.
Alcatel Banque et Caisse d'Epargne
Carlson Companies Inc.
de l'Etat
Alfa
Caterpillar Inc.
Banque Générale du
Alinco Corporation
Cedel International
Luxembourg SA
Alliance Capital Management
Celanese Canada Inc.
Banque Internationale à
International
Luxembourg SA Celsa Group
Allied Bank of Pakistan Limited
Banque OBC Odier Bungener Celsius Corporation
Allied Irish Banks Plc (AIB)
Courvoisier Cemex
Allstate Corporation
Banque Pasche SA Central Bank of the Republic of
Alma Media Corporation
Banque Privée Edmond Turkey
Almazy Rossii-Sakha Company Ltd de Rothschild SA Central Bank of Venezuela
ALSO Holding AG Barclays Bank Plc Centrica Plc
Alusuisse Lonza Group AG Barco NV Centunion
Amcor Limited Barrick Gold Corporation Ceres Hellenic Shipping
America Online Inc. Bass Plc Enterprises Ltd
American Express Bank, Ltd Al Basti & Muktha Ltd Chargeurs
American Fiber Manufacturers Bata Schuh AG The Charles Schwab Corporation
Association
Baxter International Inc. Chase Manhattan Corporation
American General Corporation
Baybg Bayerische Beteiligungsges. Chevron Corporation
American Management Systems Inc. Mbh
Chicago Mercantile Exchange (CME)
American Water Works Bechtel Group Inc.
Company Inc. China Everbright Holdings
NV Bekaert SA Company Ltd
MEMBER COMPANIES
Ameritech International
Bell Atlantic Corporation China International Trust and
Amrad Corporation Ltd
Bermuda Government Investment Corporation (CITIC)
Andersen Consulting
Bertelsmann AG China State Construction
André & Cie SA
Engineering Corporation
Bestfoods
Anglo American Corporation
Chiyoda Corporation
BG Bank A/S
of South Africa Ltd
Ciech SA
BG Plc
Anglogold Ltd
Cigna Corporation
Bharat Forge Limited
Anglovaal Mining Limited
Ciments Français
BIG Bank Gdanski SA
Aon Corporation
Cimpor - Cimentos de Portugal
BIG Flower Holdings Inc.
Apasco SA de CV
SGPS SA
Billiton Plc
Apax Partners & Co. AG
Cisneros Group of Companies
Binder-Optik Aktiengesellschaft
Arabian Light Metals KSC
Citibank NA
Biopharm/SAEG
Aracruz Celulose SA
CLT-UFA (RTL)
Birkart Globistics
Arcor Saic
The Coca-Cola Company
Biwater Plc
Arge
Coca-Cola Enterprises Inc.
The Blackstone Group
Arrow Electronics Inc.
Coflexip Stena Offshore
Bloomberg LP
Arthur Andersen
Coinvertir - Corporacion Invertir en
BMC Software Inc.
Arthur D. Little Inc.
Colombia
The Boeing Company
Artoc Group for Investment and
Cold Metal Products Company
Bolsa Mexicana de Valores SA
Development
Colonial Limited
de CV
ASB Greenworld
Comalco Aluminium Limited
Bombardier Inc.
Ascom Management AG
Commonwealth Bank of Australia
Bonlac Foods Limited
Ashanti Goldfields Company Ltd
Communications Capital Group
Boots Company Plc
Asian Paints (India) Limited
Compagnie des Signaux
Booz, Allen & Hamilton Inc.
AT&T Company
Compagnie Financière Edmond de
Bordier et Cie
Atlantic Richfield Company (ARCO)
Rothschild Banque
Bossard Holding AG
Atos
Compaq Computer Corporation
The Boston Consulting Group Inc.
Attias Holding SA
Compass Group Plc
Bouygues SA
Atwood Richards Inc.
Computer Associates
Bovis Construction Group
Audi AG International Inc.
BP Amoco Plc
Australia and New Zealand Banking Conseil Alain Aboudaram SA
BRE Bank SA
Group Limited (ANZ)
Consolidated Contractors Company
Bridas Corporation
Australia Post (CCC)
The Bristol Company
Autonomous Government of Consoltex Group Inc.
Catalonia British Aerospace Plc Consultores Asset Management
Autosur SA British American Tobacco Plc Continental AG
AVL List GnbH British Columbia Hydro and Power Cookson Group Plc
Authority
Axa
Corel Corporation
British Steel Plc
Axa UAP
Coril Holdings Ltd
Axel Johnson AB Broadview
Corning Incorporated
Ayala Corporation Broken Hill Proprietary Co. Ltd
Corporacion Andina de
Ayala Land Inc. Brown Brothers Harriman and Co. Fomento (CAF)
Azizler Holding AS Brunswick Corporación Nacional del Cobre de
BAA Plc BSI-Banca della Svizzera Italiana Chile (Codelco Chile)
Babcock Borsig AG BT Plc Corporación Zapata Cardenas SA
Bacardi Limited BTG Plc de CV
Bahrain Petroleum Company BSC Budimex SA Cosco (Hong Kong) Group Limited
