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QUALITY. INDEPENDENCE. IMPACT. Brookings Annual Report 2009 aul aul morigi p

Contents by Photo 4 16 Economic Studies The program was at the Governance Studies A hotly contested election forefront of efforts to combat the “Great Recession,” giving and a crippling financial crisis left the nation increasingly polarized perspective and policy advice. Economics Studies scholars were over key issues such as health care and economic reform. Governance among the most sought-after minds in the country on tax policy, Studies advanced pragmatic recommendations to help renew stimulus spending, health care reform and financial regulation. ­America’s strained political system. 8 20 Global Economy and Metropolitan Policy When President Obama launched a historic fiscal experiment this year by delivering $787 As the ripple effect of the financial crisis Development billion to revive America’s economy, Metropolitan Policy experts spread throughout the world, Global Economy and Development deployed a comprehensive strategy to invigorate the nation’s responded with research and analysis focused on coordinated metropolitan areas, major sources of national prosperity. economic stimulus, global financial regulation, reform of international Brookings financial institutions and development assistance. 24 12 Governance and Renewal Gearing up for a post-crisis “renewal” effort, Brookings’s leadership, scholars and The past year saw political, economic Foreign Policy Trustees drafted the next phase of the Institution’s strategic plan— and military crises across the globe. Foreign Policy kept abreast of the Governance and Renewal—to encompass the multidimensional­ nature most important developments, consistently offering intelligent analysis of Brookings’s research agenda as it prepares for its second century. and pragmatic policy suggestions. 26 2 Chairman’s Message Impact and Change The first comprehensive survey of think tanks has ranked Brookings No. 1. And several scholars 3 President’s Message moved to government positions, giving them the chance to advance the policy ideas developed in residence at Brookings. 38 Financial Summary 41 Trustees 28 Support for Brookings Brookings’s donors have helped the Institution weather an uneven political landscape and

Editors: Melissa Skolfield and Susan Kellam Copyright ©2009 The Brookings Institution a traumatized national economy. Support from donors ensures that 1775 Massachusetts Avenue, NW Writers: Susan Kellam, William R. Fitzgerald, Ron Nessen Brookings maintains a high level of quality and independence in its Washington, DC 20036 research and its policy suggestions. PRODUCTION COORDINATOR: Adrianna Pita Telephone: 202.797.6000 Fax: 202.797.6004 Design and Print Production: TMG www.brookings.edu Printing: Jarboe Printing Jeffrey Kibler, Adriana Guevara, Brenda Waugh Library of Congress Card Number: 84-641502 Cover Photograph: Cameron Davidson 1 Chairman’s Message President’s Message

urbulent times heighten the need for sound, forward- ach of my eight years at Brookings has been exhilarating looking ideas from independent institutions like ours. That and challenging in its own way, but the one drawing to a is why we see this as a “Brookings moment”—on a par with close has been uniquely so. I’m sure that my predecessors other pivotal moments in our nation’s history where our felt that way about seismic events during their own tenures. research helped guide the nation and the world. Certainly America’s entry into World War I so qualified, as Today we face a daunting mix of political, economic did the Great Depression, World War II, the beginning— and national security challenges that go from the local to and the end—of the Cold War and, more recently, 9/11 and the national to the global and back again. These challenges its aftermath in Afghanistan and Iraq. Trequire what we call an “All-Brookings” effort, drawing on the talents, ener- EBut I’d still contend that never in the 93 years of the Institution’s existence gies and expertise of all five of our research programs. has there been an array of world-class problems, domestic and foreign, as Brookings scholars have dealt with the “Great Recession” in this broad kaleidoscopically varied, complex and urgent as what we’ve experienced in this historical and multidimensional context. Drawing lessons from the past and year. And virtually all of those problems cry out for solutions of the sort that analyzing events as they unfolded, they have developed a vision, not just for is our stock and trade. Hence John Thornton’s description of these turbulent recovery from the crisis, but for renewal after it is over. times as a “Brookings moment.” As markets gyrated and major institutions staggered to—and sometimes The task, as we look ahead, is to harness the energy and momentum we’ve over—the brink, our experts developed recommendations for the fiscal and demonstrated over the past year and play them forward. monetary stimulus plans. When the banking and automotive sectors needed At the core of our ability to do so are our scholars. So many of them have massive bailouts, the Brookings auditorium, conference rooms and Web site gone into the administration that Secretary of State Hillary Clinton, in a served as platforms for lucid explanation of the problems and pragmatic, inno- speech in our Falk Auditorium, described it (with a smile) as a “decimation.” vative solutions. Officials in the executive and legislative branches, as well as L ambert L ambert I prefer to think of it as a donation to public service—and as yet another indi- policy-makers from abroad and from state and local governments across the cator of our impact on policy-making. United States, turned to our scholars for advice. But there’s no question that all those departures have confronted us with As the response to the crisis moved from economic stimulus to regulatory yet another challenge: strategic replenishment of our ranks. While Larry

reform, Brookings remained at the fore. Our experts examined how the crisis katherine by Photo katherine by Photo ­Summers, Peter Orszag, Doug Elmendorf and other former colleagues and had spread from housing to the financial markets; then to the global economy. Trustees are going to work these days in the White House and the U.S. They probed issues ranging from the role of cities and regions in economic growth to the national security implications of falling oil prices. ­Capitol, our Economic Studies program is now in the capable hands of its new co-directors: Karen Dynan, most recently a senior advisor at As the Obama administration staffed up, more than 20 of our scholars went into key jobs. Meanwhile, some distinguished public servants the Federal Reserve Board, and Ted Gayer, lately an associate professor at Georgetown University’s Public Policy Institute. joined our staff, including in leadership positions. The revolving door between think tanks and the halls of power has always been a feature of Since the world economy has been shaken by a crisis that had its epicenter on Wall Street, it is equally important that we still have the the way Washington works—enabling government and NGOs to constantly refresh each other, to the benefit of both. ­strongest possible leadership of our Global Economy and Development program. When its founding director Lael Brainard moved to a key post My fellow Trustees provided critical contributions as well—on both sides of that revolving door. Several went into the administration, while at the Treasury Department, she passed the baton to Kemal Dervis¸ , a former director of an international program at the World Bank, finance others made their own fresh ideas available to policy-makers, the public and, of course, to Brookings. Glenn Hutchins drew wide acclaim for minister of Turkey, and most recently, the administrator of the United Nations Development Program. his sweeping, comprehensive assessment of the Panic of 2008, and Liaquat Ahamed published a critically acclaimed best seller, The Lords of The creation of the United Nations is part of Brookings legacy. In my office on Massachusetts Avenue, I have a portrait of Leo Pasvolsky, a Finance, the story of the great panic of 1928 and a cautionary tale for how not to deal with a financial meltdown. Polish immigrant who became a Brookings economist in 1922 and went on to play an instrumental role in translating Franklin Roosevelt’s vision As we approach our centenary and update the Institution’s Strategic Plan, which will carry us into our second century in 2016, we are think- of a world body into the organization on the banks of New York City’s East River. How proud he would be to have our Senior Fellow Susan Rice ing hard about a post-crisis America and a recovering world. We plan to highlight themes such as growth, innovation, opportunity, better gover- join President Obama’s cabinet as U.S. Permanent Representative to the UN. nance and responsible stewardship of our planet. During the summer, Carlos Pascual, whose spearheading of our Managing Global Insecurity project helped move us toward our goal of being In translating that plan into projects and products over the months and years to come, we will maintain our commitment to quality, inde- a global think tank, became U.S. Ambassador to Mexico. Carlos’s successor as vice president and director of Foreign Policy is Martin Indyk, the pendence and impact, which constitute both a legacy to protect and watchwords for the future. We will also continue to make the most of the founder of our Saban Center on Middle East Policy. breadth and depth of our five research programs, and we will build on our network of partnerships with kindred institutions around the country The year also included affirmations that our reputation matches our ambition. Once again, we’ve been ranked as the world’s most-influential, and the globe. most-quoted and most-trusted think tank. One of many innovations is a new index that helps answer, by means of wide-ranging benchmarks, In short, this Brookings moment will prepare us for our second century, and we count on your continuing support in helping us live up to the the question of “How We’re Doing” in economic recovery and national—and international—security. It premiered in July in the Washington Post opportunities and obligations. and will be updated on a quarterly basis. It’s an all-hands-on deck effort, and a metaphor for our enterprise as a whole: continuity of standards, ­collaboration supplementing outstanding individual research and adaptation to a rapidly changing world.

John L. Thornton, Brookings Chairman Strobe Talbott, Brookings President 2 3 With questions swirling in March 2009 on the inevitability of some financial firms Economic being “too big to fail,” former Federal Reserve Chairman Alan Greenspan calls this premise “the most Research to guide intractable problem in Studies the next structure of financial regulation.” Brookings Senior Fellow the nation on the road to recovery Martin Baily (right), Bernard L. Schwartz Chair in Economic Policy Development, moderates a panel with Greenspan following a presentation by The $700 billion Minneapolis Federal question in October Reserve President 2008 is the fate of Gary H. Stern and the economic rescue Vice President Ron J. package. Senior Fellow Feldman, authors of the Alice Rivlin says that prescient book Too Big the package will not to Fail: The Hazards of solve the whole problem Bank Bailouts (Brookings m origi aul aul and that some financial Institution Press, 2004; p institutions will fail. revised paperback,

Senior Fellow Thomas 2009). by p hoto Mann (right) moderates the discussion that includes Guest Scholar The economics of health care and former Republican reform require lowering the Member of Congress costs of care without reducing William Frenzel. the quality of care. Director of the Office of Management and Budget Peter Orszag (left) and former Secretary of the Treasury Robert E. Rubin confer before speaking at a June 9 forum on comparative effectiveness research to streamline the health system. A lswang al p h R Photo by Paul Morigi Paul by Photo 4 by Photo 5 Economic Studies

he “Great Reces- shortage of advice from their for- sion” occurred mer colleagues at Brookings. The amid meltdowns Initiative on Business and Public in housing and Policy was notably productive in The man in the middle financial markets, generating recommendations on of the TARP—Assistant rising unemploy- one of the central imperatives Treasury Secretary Neel Tment and growing fiscal shortfalls. of the day: fixing finance. Senior Kashkari—addresses a Policy-makers responded with Fellows Martin Baily and Robert Brookings audience in financial bail-outs and an ambitious Litan wrote a series of papers on January on the new Office of economic stimulus package, and the topic—much of which fore- Financial Stability, which is

also took steps to tackle financial shadowed the financial overhaul m er S haron Far charged with implementing reform, global warming and health unveiled by President Obama in the Troubled Asset Relief

care. The Economic Studies pro- June. Led by Baily, the Bernard L. by Photo Program. gram helped set this agenda and Schwartz Chair in Economic Policy For the first time in history, the world’s largest economy is also shape the subsequent debates with Development, the Business Initia- its largest debtor. On July 8, Center for Children and Families a steady stream of analysis and tive gained visibility with continual Co-Directors Ron Haskins and Isabel Sawhill examine the policy recommendations. forums throughout year. Its impact decisions that precipitated this situation and evaluate some “It was a terrifying but excit- was seen in requests to testify potential attempts at triage. ing year to be an economist,” on Capitol Hill, private briefings said ­William Gale, the Arjay and with more than a dozen members Brookings Papers on Economic lent considerable perspective, espe- ­Frances Fearing Miller Chair in of Congress and interaction­ with Activity has been a leader in cially on Medicare—the elephant Federal Economic Policy, who Treasury officials. emphasizing policy-oriented, empir- in the room throughout the debate. served as vice president and direc- Douglas Elliott, an investment ical research in macroeconomics. Center on Social and Economic tor of Economic Studies until banker for two decades and a Doug Elmendorf, Gregory Mankiw Dynamics Director Joshua Epstein September 2009. “Our expertise policy analyst, joined the program and Lawrence H. ­Summers con- and his team used agent-based and ingenuity were tested as the this year as a fellow. Barely in the vened a critical meeting in Sep- modeling to guide policy-makers on economy took a historic nose dive.” Brookings door, Elliott penned a tember 2008 that laid the ground- ways to contain this year’s H1N1

Shortly after the collapse dozen commentaries to clarify tech- work for important recovery and flu epidemic. A lswang

of Lehman Brothers, ­Douglas nical issues related to the Troubled long-term reform initiatives. After The Center on Children and al p h R ­Elmendorf, the Edward M. Asset Relief Program (TARP) and Elmendorf and Summers stepped Families, led by Senior Fellows ­Bernstein Scholar and director of other support to the banking sys- down to assume top government Ron Haskins and Isabel V. Sawhill, Photo by by Photo the Hamilton Project, was one of tem. As Congress wrestled with posts, they were replaced by David the Cabot Family Chair, examined Morigi Paul by Photo As President Obama calls on Congress to pass health care reform as a social and an economic imperative, Engelberg the first experts to call for the Trea- the president’s financial overhaul Romer of the University of Califor- ways to alleviate inequality in the Center for Health Care Reform Director Mark McClellan welcomes Council of Economic Advisers Chair Christina Romer sury Department to make equity plan, Elliott—quoted often in the nia and Justin Wolfers of the Uni- United States by holding forums to Brookings on June 2. They joined former Congressional Budget Office Director Douglas Holtz-Eakin and Harvard investments in financial institu- press—called the proposal “gener- versity of Pennsylvania. throughout the year on such top- economist David Cutler to discuss new CEA findings on the economic case for health reform. tions—a plan followed by both the ally quite sensible” despite falling Health care reform often pitted ics as healthy marriage programs, Bush and Obama administrations. short on the consolidation of regu- budget issues against social goals. juvenile justice and the future of Later, as part of a long Brook- latory functions into fewer hands. Senior Fellow Mark ­McClellan ­middle-skill jobs. Haskins and New Brookings Vice President ings tradition of “lending” experts New Vice President Karen offered a balanced approach, focus- Sawhill also completed a book, Karen Dynan, formerly a to government, Elmendorf moved Dynan, the Robert S. Kerr Senior ing on how to make health care Creating an Opportunity Society senior adviser at the Federal to Capitol Hill to take the helm at Fellow, who took over Economic dollars more productive. As the (Brookings Institution Press, 2009). Reserve Board, pauses outside the Congressional Budget Office. Studies on September 1, brought Leonard D. Schaeffer Chair in William Gale concentrated on Brookings to chat with Ted Elmendorf’s two predecessors considerable expertise from serv- Health Policy Studies and director simplifying the tax system as co- Gayer, an associate professor at the Hamilton Project—Peter ing as a senior adviser at the Fed- of the Engelberg Center for Health director ­of the Tax Policy Center— at Georgetown University. In a Orszag and Jason Furman—also eral Reserve Board. Ted Gayer, a Care Reform, McClellan oversaw a joint venture of Brookings and first-ever tandem arrangement, assumed major government posts: former professor at Georgetown major efforts to develop better the Urban Institute. His Retire- President Strobe Talbott Orszag as head of the Office of University and a member of the measures of health care quality and ment Security Project promoted announced that Dynan and Management and Budget; Furman Treasury Department under Presi- cost. the creation of an automatic IRA, a Gayer will serve as co-directors as deputy director of the National dent George W. Bush, joined at the Other Economic Studies schol- refundable Saver’s Credit and other of Economic Studies. Economic Council. same time to serve as co-director­ ars also contributed health care common-sense solutions. Elements In the midst of a severe eco- and the Joseph A. ­Pechman Senior expertise. Senior Fellows Alice of this agenda were incorporated nomic downturn, these new Fellow. Rivlin and Henry Aaron, the Bruce into the president’s budget outline

government officials have had no For almost four decades, the and Virginia MacLaury Chair, both and into bipartisan bills. n Morigi Paul by Photo 6 7 Global Economy andInnovative Development solutions to manage globalization and fight poverty

As the financial crisis continues to affect markets all over the world, the International

Monetary Fund moves wang

increasingly to the A l s

forefront of global al p h R policy discussions. This prominence Photo by by Photo has sparked calls for reforms to ensure Reducing climate change, a top priority for the Obama administration, roiled into major congressional debate by June. Fellow Adele that the Fund can Morris outlines a forthcoming report on the economic impact of climate change reduction strategies in a panel that includes co- play a lead role in authors and Nonresident Senior Fellows Peter Wilcoxen (far left) and Warwick McKibbin. David Goldston (far right), columnist for facilitating coordinated Nature, moderates. economic policies and in providing The Latin America Initiative precautionary finance. conducted numerous events An April 24 panel and hosted Chilean President moderated by Vice Michelle Bachelet (pictured President and Director here) as well as former of Global Economy and President of Mexico Ernesto Development Kemal Zedillo and President Álvaro Dervis¸ addressed Uribe Vélez of Colombia. suggestions for more efficient governance within the IMF. Background: George Soros of the Open Society Institute Photo by Sharon Farmer by Photo 8 Sharon Farmer by Photo 9 Global Economy and Development

s the global the composition of the proposed research efforts on the Chinese include likely impacts and policy economic reces- stimulus plans of G-20 countries economy and, most critically, responses following the financial sion became the and by analyzing the likely policy on China’s economic relation- crisis. epicenter of all impacts. Prasad’s online tracking ship with the United States. He In July, Brookings launched public policy this tool and commentary was cited convened a number of high- the Center for Universal Educa- year, the Global by numerous media organizations, level Chinese ­delegations jointly tion, an initiative that will develop AEconomy and Development pro- including a prominent reference in with U.S. partners on economic and disseminate effective solu- gram was ready for action, with a The Washington Post. sustainability. tions to the challenge of achieving research agenda centered squarely Global’s new Africa Growth Surrounding the G-20 summits universal quality education. Led on coordinated economic stimu- Initiative, launched in September and gatherings of the international by new Senior Fellow Jacques van lus, global financial regulation, 2008, reinforced that the time financial institutions, Senior Fel- der Gaag, with Fellows Rebecca reform of the international finan- has come for Africa’s voice to low Homi Kharas recommended ­Winthrop and David Gartner, the cial institutions and development be amplified in the global policy how organizations and countries center will focus on the provi- assistance. debates. Mwangi S. Kimenyi, could speed the flow of aid dol- sion of quality, universal basic “We’ve worked to bring these founding executive director of the lars already committed and not education to the world’s poorest

global issues into sharper relief as Kenya Institute for Public Policy jeopardized by the crisis. His work children. alex by irvin Photo Washington explores new ways of Research and Analysis, became a on aid volatility was widely cited Also in July, at the sixth annual Ernest Aryeetey, senior fellow armer working with the world on eco- senior fellow in May. He joined by development practitioners and Brookings Blum Roundtable in f and director of the Africa Growth nomic recovery, the rise of new Senior Fellow John Page—for- leaders across the globe. Aspen, Colo., 40 leading experts Initiative, participates in the annual powers and the need to prevent merly chief economist for Africa at The Middle East Youth Initia- met to develop strategies and s haron Brookings Blum Roundtable in July. the crisis from causing a huge set- the World Bank—on policy efforts tive, a joint partnership between ­policy recommendations for tack- Each year’s roundtable focuses on back in the fight against global to support African growth and the Wolfensohn Center for ling climate change in the midst by Photo research and initiatives to alleviate poverty,” said Kemal Dervis¸ , who development. Develop­ment and the Dubai of the downturn. Led by Dervis¸ Brookings teamed with the Clinton Global Initiative in May to host a discussion on global poverty. became vice president and direc- Global’s Top 10 Global Eco- School of Government, contin- and co-chaired by Brookings corporate philanthropy and social responsibility. Former President Bill Clinton describes tor of Global in March. nomic Challenges Facing America’s ued its groundbreaking work on ­President Strobe ­Talbott and how some companies have integrated “doing good” into their core practices. Muhtar Kent, Dervis¸ , also the Edward M. 44th President suggested that the economic implications of ­Trustee Richard C. Blum, partici- chairman and CEO of the Coca-Cola Co., offers his firm’s philosophy on sustaining its ­Bernstein Scholar, had been America could become a stronger youth exclusion in the Middle pants focused on the world’s least- markets. ad­min­is­trator of the United and steadier partner to Africa. Also East, but expanded its focus to developed countries. n Nations Development Program. detailed in the Top 10 report were On the eve of the Lael Brainard, who with Strobe suggestions for restoring financial Our growing and gathering challenges call for quick G-20 Summit in London, Talbott launched the Global stability, setting the right green calibration, urges Sen. John Kerry (D-Mass.) at a May 21 Senior Fellow Eswar program in 2006, left to join the agenda, reimagining global trade forum. He addresses the need for modernizing U.S. foreign Prasad (center left) Department of the Treasury. and pursuing a positive agenda for assistance to increase the effectiveness of U.S. development posits the importance As a convener for intellectual the Middle East. and reconstruction efforts around the globe. of buffering emerging debate, Global this year attracted Mauricio Cárdenas continued markets from the such notable individuals as to lead Brookings’s Latin America financial crisis. Prasad is ­Dominique Strauss-Kahn, the Initiative. Using the opportunity joined at the April forum managing director of the Inter- of the U.S. presidential elections, by Wolfensohn Center national Monetary Fund; Trevor Cárdenas and his team convened Director and Senior Manuel, then South Africa’s min- the Partnership for the Americas Fellow Johannes Linn ister of finance; Michael Froman, Commission, which released a (far left), Global Economy U.S. deputy national security report in November that garnered and Development Vice adviser for international economic considerable media and policy- President and Director affairs; and British Prime Minis- maker attention throughout the Kemal Dervis¸ and ter ­Gordon Brown, who attended Americas. Brookings Managing a private discussion hosted by Daniel Kaufmann, a world- Director William Antholis Brookings in London in advance renowned expert and writer on (far right). of the London G-20 Summit. governance, corruption and devel- wang Senior Fellow Eswar Prasad, opment, joined the Global pro- wang A l s the New Century Chair in Inter- gram this year as a senior fellow. A l s al p h al p h R national Trade and Economics, Through this year of increasing R led the program’s global macro- global uncertainties, Nonresident Photo by by Photo economic research by tracking Senior ­Fellow Wing Thye Woo led by Photo 10 11 Foreign Policy Pragmatic recommendations firmly rooted in sound study

Martin Indyk appears with Quartet Middle East Envoy Tony Blair at the Saban Forum in December to discuss the Middle East peace process. Indyk (left), then-director of the

Saban Center for hou by xiaojun P hoto Middle East Policy, Kenneth G. Lieberthal, director of the John L. Thornton China Center, talks with students at Tsinghua University in February after became vice president presenting his new report on improving U.S.-China cooperation on climate change. and director of the Foreign Policy program in August 2009. Carlos Pascual, now U.S. Ambassador to Mexico, joins President Barack Obama on a state visit to Mexico, arriving with him in Guadalajara City. Pascual, formerly vice president and director of Foreign Policy, was one of several Foreign Policy scholars who joined the Obama administration. r eute s o/ ome r r A lswang y hoto by hen r by P hoto 12 Ralph by photo 13 Foreign Policy

Senior Fellow Suzanne Maloney he historic con- Fiona Hill, a long-time senior testifies before the House vergence of a new fellow, returns to Brookings to Committee on Foreign Affairs six government in direct the Center on the United weeks after the Iranian elections. Washington with States and Europe. Visiting Fellow Maloney recommends a policy of the most severe Steven Pifer, a former ambassador U.S. engagement. However, she global economic to Ukraine, who ran the center warns, “there are no silver bullets Tdownturn since the Great Depres- this year, will head a new arms with respect to Iran.” sion has generated major shifts control and non-proliferation ini- in U.S. foreign policy. Through tiative. In November 2008, the research, analysis and pragmatic center welcomed Turkish Prime alph alswang

policy recommendations, the Minister Recep Tayyip Erdogan r Foreign Policy program was at for a discussion on revitalizing

the center of the policy debate Turkish-American relations. by P hoto through the year’s milestones and President Obama tapped Senior “Restoring the Balance: A New Middle East Strategy for the deliberations in the United States Fellow Bruce Riedel to co-chair an Next President, a report produced by Middle East experts from and abroad. interagency review of U.S. policy Brookings and the Council on Foreign Relations, was launched One strong indicator of the toward Afghanistan and Pakistan in January. Senior Fellows Tamara Cofman Wittes, Daniel Byman program’s impact was the move of and singled him out for his con- and Bruce Riedel listen as their recommendations are presented al command several Brookings experts to senior tribution during the culminating in the Falk Auditorium. Nonresident Senior Fellow Shibley positions in the National Security White House news conference. Telhami, far right, contributed to the report. Council, the State Department On the numerous problems

and other U.S. government agen- facing Afghan President Hamid U.S. policy in Iraq. A new Afghan- the 21st Century (Penguin Press, W illiams om cies. After three and a half years Karzai’s government, Sen. Joseph istan Index, authored by Fellow 2009) became a mainstay on The T of stewardship, Carlos Pascual Lieberman (I-Conn.) talked at Jeremy Shapiro, was also launched New York Times bestseller list. ie jewell/u.s. r ie r cent lo jewell/u.s. by P hoto stepped down as vice president Brookings in January about how to this year. Ten years after the drafting of by P hoto and director of Foreign Policy to turn the tide in that troubled coun- In Iran, millions of people the Guiding Principles on Internal Iran has been at the center of U.S. national security concerns for three decades, yet become the new U.S. ambassador try. Fellow Vanda Felbab-Brown headed to the polls on June 12 Displacement by the UN Com- contact with the traditionally combative nation has been sporadic and largely troubled. to Mexico. traveled to Afghanistan to examine in a hotly contested presidential mission on Human Rights, the Over 150 participants, led by new Saban Center Director Kenneth Pollack (left); Gen. Martin Indyk, who served as the illicit poppy trade. Karzai pro- election. Although Mahmoud Brookings-Bern Internally Dis- David Petraeus; and Ryan Crocker, former U.S. Ambassador to Iraq, met to discuss the director of the Saban Center for vided his own perspective in May, Ahmadinejad was proclaimed the placed Persons project headed by June 12 election. Middle East Policy since its found- when he came to Brookings to dis- landslide winner, accusations of Elizabeth Ferris continues to advo- ing in 2002, took the helm of the cuss a new strategy for governance, widespread election fraud led to cate for those who have lost their Chairman of the Joint program. Senior Fellow Kenneth institution-building and economic violent crackdowns on Iranians homes because of armed conflicts Chiefs of Staff Adm. M. Pollack replaced Indyk as direc- development. protesting the elections. Pollack in the Middle East, Africa and Michael G. Mullen updates tor of the Saban Center. President Obama also faced and Saban Center Senior Fellow other regions. a Brookings audience in May “These administration appoint- critical choices on Iraq. The Suzanne Maloney launched the With U.S. national secu- on the changing face of global ments demonstrate our impact on Saban Center’s Pollack this year Iran Working Group in partnership rity and consumer fears on the engagement. He is joined by U.S. foreign policy as our former was appointed as a member of with the U.S. Institute of Peace, upswing, the Energy Security Ini- new Foreign Policy Research colleagues assume leadership roles the Joint Campaign Plan Assess- which brought Iran experts to tiative contributed to the debate Director Michael E. O’Hanlon, within the administration, taking ment Team assembled to critique Washington for a series of policy on energy alternatives. Senior who holds the Sydney Stein, Jr. the ideas they developed at Brook- the new comprehensive Ameri- discussions. Maloney’s assessment Fellow David Sandalow organized Chair in International Security. ings with them,” said Indyk. can plan for Iraq. He and Senior of the evolving situation in Iran a highly successful conference on Kenneth Lieberthal, a former Fellow Michael O’Hanlon, the was followed closely on the Brook- plug-in technologies before join- presidential adviser, was named Sydney Stein, Jr. Chair in Interna- ings Web site by those outside and ing the Department of Energy. As director of the John L. Thornton tional Security, served as special inside the volatile country. the world prepares for the climate China Center, succeeding Jeffrey advisers to Gen. David Petraeus’ Now in its third year, the 21st conference in Copenhagen in Bader, who moved to the White CENTCOM assessment team, Century Defense Initiative contin- December 2009, Brookings hosted House. Now in its third year, the assisting in the development of ued under the leadership of Senior ­several productive discussions Thornton Center—as part of its theater-level strategies for war-torn Fellow Peter W. Singer, hosting all with top officials and experts.

mission to help U.S. and Chinese areas. O’Hanlon also continued of the military service chiefs and Lieberthal issued a major report M o r igi aul aul leaders—runs the Brookings- to produce the Iraq Index, which many U.S. military commanders. on U.S.-China cooperation on P Tsinghua Center for Public Policy appears regularly in The New York Singer’s book, Wired for War: The climate change, released in both

in Beijing. Times, assessing conditions and Robotics Revolution and Conflict in Washington, D.C., and Beijing. n by P hoto 14 15 Governance Studies Practical ideas for government’s next generation

Darrell West, (right) vice president and director of Governance Studies, argues during a panel on the future of the news industry in May that the proliferation of online, user-generated content on sites such as YouTube and Twitter does not sound a death- knell for all that’s fit to print. The other A lswang panelists are Sen. Ben Cardin (D-Md.),

Aspen Institute’s p h Ral by Photo Walter Isaacson, and Two former White House chiefs of staff, Kenneth Duberstein and Leon Panetta, engage in a lively discussion in November on journalist Michael President-elect Barack Obama’s choice of Rahm Emanuel to fill their old office. Their talk was the first of 12 events to provide Kinsley. Time’s Karen recommendations and advice to the incoming president. Darrell West presented the first “Memo to the President” on how to bring Tumulty moderated the the polarized electorate together. discussion.

“Always take your wife’s phone calls,” the pros advise incoming White House Press Secretary Robert Gibbs. Veteran press secretaries Mike McCurry (left) and Dana Perino discuss Gibbs’ demanding new job with presidential scholar Stephen Hess

prior to a Brookings panel A lswang discussion in December.

16 Mo r igi Paul by Photo p h Ral by Photo 17 Governance Studies

rises call for instantaneous popularity. In the cool-headed nar- first two months of tracking the ratives, whether new government, the various on governance online interactive charts received during a reces- thousands of page views. sion or a deten- One campaign promise was Ction system after the closing of quickly reaffirmed—the closing Guantánamo Bay. Collectively, of the Guantánamo Bay deten- scholars in the Governance Stud- tion camp in Cuba—raising ies program bring intellect, mea- many thorny issues, masterfully sured assessments and a keen tackled by Senior Fellow and sense of history to the pressing Research Director in Public Law need to reform a fractured politi- Benjamin Wittes. At a Judicial al p h alswang cal system. Issues Forum in March, Wittes r “If it is on the minds of deci- and other experts provided an

sion makers, it is on our agenda,” overview of the questions con- by p hoto

said Darrell West, vice president founding President Obama and Mo r igi Paul by Photo Terry Edmonds (right), who crafted words for President Bill Clinton, joins Darrell West to discuss presidential speechwriting. and director of Governance his national security team—such Managing Director William Antholis (left) and Fellow Vanda Elaborating before a Brookings audience, Edmonds, now an associate vice president at Columbia University, says that the historic Studies. “As one might expect, as what to do with the 240-some Felbab-Brown join Politico’s Senior Political Reporter Mike election conjures the words of Langston Hughes: “Let America be America again.” the insights and observations detainees at Guantánamo. Allen, who moderates a panel on President Obama’s first 100 of our experts have been much As the national security days in office. in demand this year by both debate continued, another ques- Senior Fellow Sarah domestic and international news tion became whether the presi- former director of the Institute of thrilled, most Republicans were Binder says in this online media.” dent provided enough specifics Education Sciences in the U.S. treading cautiously, Galston video that the nation’s A hallmark of the program for lawmakers to accede to his Department of Education, joined wrote. economic crisis provides a has always been original thought, requests. There are no easy Governance Studies in January Supreme Court justices aside, prism for viewing how the conveyed through numerous options for closing the prison 2009 as the new director of the many court picks tend to lag. Congress has interacted Governing Ideas and Judicial camp at Guantánamo Bay, Wittes Brown Center on Education Senior Fellow Sarah Binder pro- with the executive branch. Issues Forums and published fre- said. As commander in chief, Policy. The center provided rec- posed judicial selection reforms quently in Issues in Governance Obama must weigh all risks to ommendations on how the new with an eye to encouraging Studies papers. Topics this year Americans. When the vow to administration should evaluate greater efficiency and account- ranged from the dearth of women close the detention camp by the the success of programs funded ability in the practice of advice running for public office to how president’s January 2010 deadline by the $650 million Innovation and consent. to create a brighter future for the pressured the administration to Fund established by the Ameri- Online tools dramatically Education Secretary Arne news industry. craft a new system for incarcerat- can Recovery and Reinvestment changed the 2008 presidential Duncan (right) confers with One hundred days into the ing terrorist suspects, Wittes and Act of 2009. In May, the center election. Logically, government Brown Center on Education Obama administration, West ini- co-author Colleen A. Peppard, hosted Education Secretary Arne officials hoped to bring the ben- Policy Director Grover “Russ” tiated the “GovWatch” monitor in a timely Governance Studies Duncan for a conversation on efits of information technology to Whitehurst prior to a May 11 of presidential and congressional paper, suggested instead a model the billions of dollars of eco- its major policy goal: reforming forum on proposed educational job approval, trust in govern- law for terrorist incapacitation. nomic stimulus aid targeted for health care. In Digital Medicine: reforms. Bolstered by the ment, public satisfaction, politi- A Wittes-edited volume, education. Health Care in the Internet Era almost $8 billion in stimulus cal polarization and much more. Legislating the War on Terror: An On judicial issues, scholars (Brookings Institution Press, funds that the administration Unlike other evaluative sources Agenda for Reform (Brookings also kept kaleidoscope trends 2009), West and co-author pledged to revamp the at the 100-day mark, GovWatch Institution Press, 2009) show- in perspective. Senior Fellow Edward Miller investigated education system, Duncan put Obama’s popularity in his- cased an authoritative lineup William A. Galston, the Ezra the barriers to having digital promises to reward states that torical perspective. For all the of legal experts and former K. Zilkha Chair in Governance technology remake health care. are driving reform. chief executives, from Dwight government officials to pres- Studies, and Visiting Fellow Governance Studies also held ­Eisenhower to Obama, the aver- ent an agenda for reforming the Russell R. Wheeler were among two events this year to focus on age job approval is 64 percent. statutory law governing this new the first to describe the historic the central role of new technol-

Obama’s 62 percent approval battle, balancing the need for nomination of Sonia Sotomayor ogy in transitioning to a health m o r igi aul aul rating on April 29 put him in the security, the rule of law and the to replace retiring Justice David care system that could reduce p middle of the pack. constitutional rights of freedom. Souter. While Democrats were health care costs while expanding

GovWatch enjoyed almost Grover “Russ” Whitehurst, united and Hispanics were ­coverage. n by p hoto 18 19 Metropolitan Policy Remapping America’s political and economic landscape

Bruce Katz, vice president and founding director of Metropolitan Policy, answers reporters’ questions at a January 12 presidential transition event after presenting a “Memo to the President.” He argues that investments in infrastructure can enhance national prosperity—especially

in metropolitan areas, Morigi Paul by Photo where the bulk of our U.S. Secretary of Housing and Urban Development Shaun Donovan introduces a new Choice Neighborhoods funding proposal population lives and at a Brookings forum at the National Press Club. Donovan says the new initiative will help public, private and nonprofit partners most jobs are located. extend neighborhood transformation efforts beyond public housing.

Visiting Fellow Christopher B. Leinberger discusses development trends with Rep. Donna F. Edwards (D-Md.) after an event that urged smart investments in infrastructure and innovation to boost short- and long-term recovery. Photo by Paul Morigi Paul by Photo 20 Morigi Paul by Photo 21 Metropolitan Policy

hen on the auto industry and its sup- President ply chain. Fellow Howard Wial, wang

Obama co-author of the MetroMonitor, A l s launched had earlier mapped the economic al p h a historic impact of restructuring Detroit’s R wang

fiscal Big Three automakers. His timely A l s

experiment this year by delivering research ensured that Metro by Photo al p h W Over 500 people attend the launch of a Blueprint for R $787 billion to revive America’s analysis figured into the national economy, Metropolitan Policy debate on emergency loans and American Prosperity report in February on energy discovery- Program experts deployed a stra- bailouts. Wial substantiated how innovation institutes at the National Press Club. Sen. Sherrod by Photo tegic blueprint to invigorate the the regional economies of 50 Brown (D-Ohio) delivers remarks. Shown seated, left to right: Community colleges nation’s metropolitan areas, major metropolitan areas, mostly in the University of Michigan President Emeritus James Duderstadt, serve almost half sources of national prosperity. Great Lakes region, depended Ohio State University President Gordon Gee and Arizona State of higher education No other research group so thor- on the jobs and incomes gener- University President Michael Crow. students but receive oughly incorporated the nation’s ated by General Motors, Ford, far less attention regional diversity into proposals Chrysler and their suppliers. the next generation of alternative across the country. The region- than prominent four- for renewal. Berube and Wial found that energy. specific analysis was interpreted year universities. At a “The global economic crisis the less auto-oriented manufac- Senior Fellow Robert Puentes by nearly 100 different regional June 7 event, Cecilia has only heightened the impor- turing sectors in the Northeast— headed up the metropolitan infra- journalists, but all delivering the Rouse, a member tance of getting this federal-metro aerospace in Hartford, Conn., structure initiative, which took same message: Job sprawl under- of the White House partnership right,” said Bruce photonics in Rochester, N.Y., big strides this year to integrate mines the economic health of cit- Council of Economic Katz, vice president and founding and plastics in Scranton, Pa.— reform of our nation’s infrastruc- ies and regions by boosting energy Advisers, emphasizes director of the Metro program insulated those areas from heavy ture and transportation policies consumption, adding to building the importance of and the Adeline M. and Alfred job losses and deflated housing with the goal of creating livable costs, increasing commuting these community-based I. Johnson Chair in Urban and prices. Likewise, they demon- communities. America’s driving times and isolating low-income institutions of higher learning. Metropolitan Policy. “When our strated in considerable detail how footprint continued to shrink even and minority workers in the urban Morigi Paul by Photo metro economies recover, so will deeply real estate–dependent as gas prices dropped, Puentes core from employment opportuni- Barack Obama’s first 100 days in office saw the passage of a massive stimulus package. At a forum on the nation.” regions such as Arizona, inland and research analyst Adie Tomer ties in the outlying areas. Obama’s 101st day, Deputy Director of Metropolitan Policy Amy Liu argues that the definitive measure To track recovery, the program California, Florida and Nevada illustrated in a first-ever ranking of As debate slowly simmered on of Obama’s economic success will be the recovery of cities and jobs, with more flexible federal funding. launched the quarterly Metro­ succumbed to the broader the vehicle miles driven in the top a new federal immigration policy, Liu is joined by Politico Editor in Chief John Harris and Brookings Senior Fellow William Gale. Monitor, an interactive barometer housing fallout; but specializa- 100 metropolitan areas. Senior Fellow Audrey Singer of the health of America’s metro- tions in energy and government A two-day tour of Gulf Coast helped to create a new Brookings politan economies. The inaugural cushioned areas in Arkan- recovery efforts in February gave Immigration Series that offers Metropolitan areas edition in June, cited widely in sas, ­Louisiana, New Mexico, two members of the president’s fresh perspective and new data that straddle the U.S.- regional and national media, was ­Oklahoma and Texas. In short, cabinet—Janet Napolitano and on how communities have felt the Canadian border represent viewed on the Brookings Web Berube and Wial broadly com- Shaun Donovan—a firsthand look influx of foreign-born residents. a unique challenge for site over 34,000 times in its first municated, a full recovery would at what’s been done to rebuild Bruce Katz returned in April border policy in the two weeks. Senior Fellow Alan require more targeted assistance. after Katrina. At the same time, from several months “on loan” to future. The solution, Berube, the program’s research Metro experts played pivotal Amy Liu, deputy director of President Obama’s transition. He according to Secretary of director, noted how getting roles this year by offering regional Metro, urged a congressional zeroed in on what he considered Homeland Security Janet beneath the veneer of national perspectives on major national homeland security panel to create a rare opportunity to orchestrate Napolitano, is to create a figures revealed varied signs of concerns. The debate on climate a White House-based Office of a generational shift in federal technologically advanced recovery and distress, suggest- change legislation, for instance, Disaster Recovery. She said that housing policy. “Crisis begets border infrastructure that ing that the stimulus bill might incorporated the push for energy “the federal government has a innovation,” he told participants allows for convenient access not be enough to ensure a truly innovation hubs spearheaded shared stake in recovery success at a housing conference in June. while still maintaining a national rising economic tide. in December by a Blueprint for and therefore must be a proactive Among other things, he recom- high level of security. At MetroMonitor defined, for the American Prosperity report. Fel- partner with states and localities mended structural changes in the a March forum, Toward a first time, two distinct “manufac- low Mark Muro, the program’s by giving them the tools and flex- tax code, new regulatory institu- Better Border, Secretary turing belts.” Its examination of policy director, with leaders in ibilities to succeed.” tions at the federal level, system- Napolitano presented the first-quarter 2009 indicators for industry and research, detailed In April, Metro released a atic reforms to energy and trans- keynote address. the nation’s 100 largest metropoli- a national network of regionally report that defined what “job portation policies and a revitalized tan areas underscored the decline based energy discovery­-innovation sprawl” means for the health and delivery system at the state, met-

of Midwestern areas dependent institutes (e-DIIs) to produce productivity of metropolitan areas ropolitan and local levels. n m er Sharon Far by Photo 22 23 Pondering the future of hedge funds, Brookings Trustee Glenn Hutchins (left) and Washington Post columnist Sebastian Mallaby engage with the audience during a February Governance forum. Hedge funds are an integral part of any solution to the larger economic problem, according to Hutchins, and will be vitally important to getting the nation out of this “mess.” r me on Fa and Renewal: S ha r

A Brookings Moment by Photo

eptember 2008 will and, eventually, by having a num- reinvestment program can push the debt-to-GDP ratio to 82 be remembered as ber of scholars move directly into achieve its ambitious goals. percent, Gale found. the month that an government ranks. The MetroMonitor, an interac- Brookings economists and American financial Gearing up for a post-crisis tive barometer of the health of public policy experts also face crisis rocked the renewal effort, Brookings has America’s metropolitan econo- the question of where growth will A lswang global economy. In the begun to draft the next phase of mies, looked “beneath the hood” come from in a post-crisis econ- course of the ensuing year—which the Institution’s strategic plan. of national economic statistics for omy. How to restore productivity-

S p h Ral by Photo featured a historic presidential Governance and Renewal encom- the first time in June. Led by Alan led growth becomes a driving election and a transition to a new passes the multidimensional Berube, senior fellow and research question. Where is the next wave On the campaign trail, candidate Barack Obama offers his views administration and Congress— nature of Brookings’s research director of the Metropolitan Policy of innovative industries going to on rising costs and rising uncertainty and says that it is time for recovery from the recession pre- agenda. When released in early program, researchers examined develop? What set of national “Washington to put a little wind at the backs of the American people.” sented an opportunity for renewal. 2010, it will build on the 2007 local indicators through the first and local economic policies are As Brookings has learned from Strategic Plan adopted by Brook- quarter of 2009 and found that, likely to foster innovation? Weigh- other pivotal moments in its his- ings Trustees and will be driven by while no region of the country has ing these and other questions will tory, crises can create a powerful the Institution’s commitment to been immune from the economic forge the Institution’s strategy for incentive for innovations and insti- quality, independence and impact. downturn, the pain is unevenly growth. tutional reforms. An early, high-visibility distributed. Cleverly displayed Brookings economists are “The challenge going forward,” product—“How We’re Doing: A in a series of interactive maps on also keeping an eye on devel- said William J. Antholis, Brook- Composite Index of Global and the Brookings Web site, the data opments overseas. Numerous ings managing director, “is to National Trends”—premiered on suggested that recovery might countries pledged to aggressively ensure that the nation and the July 26 on The Washington Post’s be quite uneven as well, posing reinvigorate their economies to world don’t simply recover from Sunday opinion page. A team of particular challenges for policy- restore economic growth. To help the crisis, but that policies and Brookings scholars established makers focused on a national ris- decipher the stimulus plans in institutions are renewed for a a baseline for future indexes by ing economic tide. the G-20 countries, Senior Fel- post-crisis world. This is where comparing the state of the nation With the economy appear- low Eswar Prasad in the Global a Brookings contribution can be and the world with conditions ing to be stable in summer 2009, Economy and Development pro- invaluable.” that prevailed early in the tenures Vice President and Director of gram provided a detailed assess- Brookings experts responded of the past five presidents. Future Economic Studies William Gale ment that included the size of A lswang early and fast to the deteriorat- indexes will track these items and warned in a paper and at a July the fiscal stimulus packages as ing economy, dating back to the others on a quarterly basis. event that Congress and the new announced by government agen-

work of the Economic Studies In April, released at a Brook- administration face a delicate bal- cies and compiled by the Interna- p h Ral by Photo program in helping to shape ings event on Obama’s first 100 ancing act between encouraging tional Monetary Fund. In March, Lessons from the Great Depression The chair of

the first stimulus package in days, Governance Studies initi- economic recovery and establish- Prasad examined the extent of A lswang the Council of Economic Advisers, Christina Romer, January 2008. Over the course ated the online “GovWatch” mon- ing budget sustainability. Imposing the stimulus relative to the coun- shares her views on the nation’s economic future, of the next 18 months, Brook- itor. Led by Darrell M. West, vice fiscal discipline before the recov- try’s GDP, the balance between saying that “it’s the new policy-maker in me that wants ings scholars helped guide local, president and director of Gover- ery gains traction could weaken spending and revenue measures to make it clear that we’re doing all that we can do to national and global recovery nance Studies, experts compiled the recovery; fiscal discipline and the speed with which the p h Ral by Photo make sure that the word ‘great’ never applies to the efforts. They accomplished this data going back several decades delayed too long could harm it. fiscal measures hit the ground. As unemployment rose in the early months of 2009, White House current downturn.” through research and publica- to help people understand what The strong policy response to the Global continues to monitor National Economic Council Director Lawrence H. Summers explains tions, through high-profile public is happening today. Looking recession in the form of financial these developments to assess per- the rationale behind the president’s recovery program and the strategy events, through behind-the- ahead, their governmental perfor- bailouts and the stimulus pack- formance overseas, and to see if for long-term growth. scenes work with administration mance analysis will track whether age has the United States headed it is helping growth return to the and congressional policy-makers the $787 billion recovery and down a path that, by 2019, would United States. n 24 25 Executive Impact and Education xecutive Educa- aul aul mo r igi

tion at Brookings p is about leader-

ship. After cel- by Photo Brookings is ebrating 50 years Strobe Talbott, president of Change of providing man- Brookings, with Washington Eagers and executives with a better University Chancellor Mark understanding of the U.S. system S. Wrighton. No. 1 among think tanks of government, Brookings formed an academic partnership with Washington University in St. Louis. he first compre- From the launch of the presi- alumni and affiliates to the White ­Secretary of State Hillary Starting July 1, Washington University’s John M. Olin School of hensive ranking dential transition project until House, executive branch gov- ­Clinton’s counter-terrorism coor- Business assumed management responsibilities for Brookings’s exec- of the world’s top the day that Barack Obama took ernments, diplomatic posts and dinator; and Vicki Huddleston, utive education activities. Jackson A. Nickerson, the Frahm Family think tanks, based occupancy of the White House, Congress. who joined the Defense Depart- Professor of Organization and Strategy at the Olin Business School on a worldwide the multimedia presence on the On the foreign policy front, ment as a deputy assistant secre- and a nonresident senior fellow at Brookings, became director of the survey of scholars Brookings Web site hit a popular Susan Rice, who spent eight tary responsible for Africa. new executive education initiative. and experts, ranked the Brook- chord with the broad public. years as a senior fellow, was Lawrence H. Summers— T The new collaboration between Brookings and Washington ings Institution No. 1 among The transition e-newsletter, quickly confirmed as a member whose multiple associations with University could be considered a reunion of old friends. Turn-of- think tanks. As published in the “The Transition Update,” was also of the cabinet and U.S. Per- the Institution include service A lswang the-20th-century St. Louis businessman Robert S. Brookings both January/February issue of Foreign a great success, with subscribers manent Representative to the as a Trustee and co-editor of the Policy, Brookings was also first steadily increasing throughout United Nations. A few months Brookings Papers on Economic founded the Institution and, as leader of Washington University’s “with the most impact on public the life of the project. And the later, Barack Obama sent Carlos Activity—is chairman of the governing board for 33 years, laid the foundation for the school’s policy debates.” “Transition­ Tracker” podcast ­Pascual, vice president and direc- National Economic Council. p h Ral by Photo ascent to academic prominence. Former Senior Fellow Susan Rice talks about foreign policy Author James McGann series notably raised the visibility tor of Foreign Policy, as ambas- His deputy at the NEC is Jason In 1917, President Woodrow Wilson appointed Brookings to with the Brookings International Advisory Council and Board divided the 5,500 think tanks of Brookings scholars’ ideas. sador to Mexico. Former Trustee ­Furman, who was director of the the War Industries Board and later named him chairman of its of Trustees. She is now a member of the cabinet and U.S. worldwide, in nearly 170 coun- In the course of the new Tom Donilon became deputy Hamilton Project at Brookings. Price ­Fixing Committee. Strobe Talbott commented—when the Permanent Representative to the United Nations. tries, into ­policy-makers, par- president’s early months in office, director of the National Security Peter Orszag, who left Brookings partnership was sealed in April—that the two institutions’ common tisans, phantoms, scholars and Brookings “donated” more than Council and Jeffrey A. Bader, in 2007 to run the Congressional benefactor had helped a new president design a massive federal activists. Brookings was catego- 20 scholars, Trustees, recent director of the John L. Thornton Budget Office, is now director of intervention in the markets and the economy. “The parallels to today rized among the scholars. “The China Center, fol- the Office of Management and As unemployment are striking,” he said, “and I know that together we will continue to rose, attention turned stars of the think tank world,” lowed as senior Budget. Taking his place at the advance his faith in independent, high-quality policy research and to struggling families. McGann wrote, “these power­ director of the CBO is ­Douglas Elmendorf, who education.” Rebecca M. Blank, houses of policy are regularly NSC responsible served many roles at Brookings “Our historic ties are the foundation for significant educational as the Robert S. relied upon to set agendas and for Asia. in a short time, most notably as and scholarly programs,” Washington University Chancellor Mark S. Kerr Senior Fellow, craft new initiatives.” Also “loaned” one of the first to truly explain the suggested ways to Wrighton echoed. Brookings’s impact especially from Foreign crisis in the credit and housing improve the outdated In the past year, more than 1,200 people from at least 145 resounded in this presidential Policy were Philip markets. poverty measure. different government organizations and the private sector have transition year. Transition-related H. Gordon, now Rebecca M. Blank left in June She emphasized that, participated in executive education at Brookings. One of the activities began in cyberspace assistant secre- to serve as undersecretary for eco- to understand the premier programs remains the Legis Congressional Fellowships, even before the election results tary of State for nomic affairs at the Commerce problems of poverty, which allows federal officials to spend seven to 12 months working were known, with the launch on European and Eur- Department. it is important to in the office of a member of Congress or serving on the staff of a November 3 of a multimedia Web asian Affairs; Ivo As the No. 1 think tank, the accurately identify congressional committee. page that included ideas, back- H. Daalder, now attention drawn to our transi- who is poor. Blank At any one time, there are approximately 40 Legis fellows on ground materials and resources U.S. Permanent tion memos—plus the quality left Brookings in Capitol Hill serving in legislative assistant capacities and learning focusing on a dozen key chal- Representative to and quantity of our government June to serve as lenges facing the president-elect. the North Atlantic “loans”—stand as testament to the policy-making process from the inside: drafting legislation, brief- undersecretary for During the 77 days from Council; David the relevance and reputation of ing congressmen and senators, serving as a constituent liaison, plan- economic affairs the election to the Inaugura- Sandalow, assistant Brookings’s work. As the global ning and participating in committee hearings and more. The Legis at the Commerce tion, Brookings experts offered secretary for policy network grows more complex, and program will continue unchanged in the new partnership. Department. 12 “Memos to the President” on and international yet more close to home, a superb Under the new agreement, Washington University and Brookings policy priorities, starting with gov- affairs at the group of Brookings scholars con- A lswang will also participate in a scholar-in-residence exchange program, and ernance and climate change and Department of tinues their work on the new Washington University undergraduate and graduate students will expanding across the spectrum of Energy; ­Daniel agenda facing the nation and the have opportunities to become involved in Brookings programs.

domestic and global challenges. Benjamin, world. n p h Ral by Photo 26 27 Support for Brookings Donors provide essential resources to sustain excellence N EVE LL PURCE ST Photo by by Photo Brookings Chairman of the Board John L. Thornton (far right) discusses the U.S.-China relationship on climate change and clean energy with Speaker of the House Nancy Pelosi. Senior Fellow E.J. Dionne (far left) had moderated a board lunch with the speaker that included President Strobe Talbott (center).

At the June Board of Trustees meeting, former U.S. Secretary of State Henry Kissinger discusses President Obama’s Cairo speech with Trustee Andrew H. Tisch, co- chairman of the board of Loews Corp. Kissinger had a cautiously favorable reaction to the speech. Trustees Ann M. Fudge and Glenn H. Hutchins also converse. A lswang Photo by p h Ral by Photo Health care reform brought experts and policy-makers to Brookings on November 17—a testament to the generosity of Trustees Leonard D. Schaeffer (center) and Alfred B. Engelberg (far right), shown with Gail Engelberg, in establishing the Engelberg Center

for Health Care Reform and the Leonard D. Schaeffer Chair in Health Policy Studies. Sen. Max Baucus (D-Mont.) (left) gave the N EVE LL PURCE ST opening remarks on political prospects and priorities for reform. Photo by by Photo 28 29 Support for Brookings

hrough a tumultu- vibrant global network of knowl- ous year of change edge, ideas and policy programs and uncertainty, through partnerships with African Thomas C. Ramey, former chairman, the generous sup- institutions, leaders and emerging Liberty International, Liberty Mutual port of Brookings experts,” President Strobe Talbott Group and a Brookings Trustee, at the donors built an said. “It is time for Africa’s voice Brookings board meeting in Miami. Tever-stronger institutional base. to be amplified in the global policy Coming amid a shifting political debates of our time, particularly landscape and bearing the weight as they relate to Africa’s economic of the worst economic downturn and development opportunities. since the Great Depression, that Our goal is to help foster the intel- support helped Brookings provide lectual and research base to aid

an essential forum to elucidate the this objective.” A lswang most crucial issues of the day, from The Rockefeller Foundation a dialogue with Sen. Max Baucus made substantial investments in (D-Mont.) on health care policy the work of Brookings experts a Photo by p h Ral by Photo ab rer

options in November 2008 to this year, with seven grants c informative lunches in June with totaling $4.1 million, including During his last month in office, President Bush addresses e . an

Dr. Henry Kissinger and House almost $1 million to support the challenges facing U.S. foreign policy in the Middle N EVE LL PURCE ST Speaker Nancy Pelosi (D-Calif.). the Wolfensohn Center for East at the Saban Forum. Acknowledging both the failures Photo by j u by Photo President of the Republic of Development’s work on promoting and successes of his administration, the outgoing president by Photo Costa Rica Oscar Arias Sanchez, rapid and inclusive growth in notes that the “condescending view that the culture of the Exploring themes of recovery and renewal in June, with briefings by budget and winner of the 1987 Nobel Peace the urban areas of developing Middle East is unfit for freedom” has been dispelled. national security officials, captivates Trustees Alan M. Dachs (far left), president and Prize, offered his global perspec- countries. The Foundation CEO of Fremont Group; Philip H. Knight, chairman of Nike, Inc.; Brian Greenspun, tive as guest of honor at a dinner also provided crucial support chairman and CEO of the Greenspun Corp.; and International Advisory Council in Miami with members of the to the annual Brookings Blum understanding changing political intelligence service, general Member Pablo Gonzalez Guajardo, CEO of Kimberly-Clark de Mexico. Board of Trustees and Brookings’s Roundtable on Global Poverty, and economic landscapes. The population and Afro-Cuban com- guests. And, in a speech to Brook- which focused on how the world’s November gathering officially munity and youth. Joining Carlos ings Trustees and members of the poor will cope with climate kicked off with a discussion on the Pascual and Vicki ­Huddleston for International Advisory Council at change. 2008 election results that included the discussion were Jorge Piñón, a reception in June, UN Secretary- The Metropolitan Policy Governance Studies Senior Fel- international energy consultant General­ Ban Ki-moon underscored program also received substantial lows Thomas Mann, the W. Aver- and former President of Amoco A lswang the imperative of global solidarity support from Rockefeller, ell Harriman Chair in American Oil Latin America, and Jorge in confronting the common con- including generous investments in Governance; and William Galston, Dominguez, vice provost for inter- cerns of our time. the Metro program’s infrastructure the Ezra K. Zilkha Chair in Gov- national affairs at Harvard. Pas- Photo by p h Ral by Photo One highlight of the year was initiative, “State of the Nation’s ernance Studies. Several Brook- cual later became ambassador to Trustee Suzanne Nora Johnson, the launch in September of the Metros” report and the Blueprint ings scholars who would go on to Mexico. Suzanne Nora Johnson, former vice chairman of Goldman Africa Growth Initiative as part of for American Prosperity Initiative. major government posts, including former vice chair of Goldman Sachs, offers her insights on the global the Global Economy and Devel- In addition, the Foundation Douglas Elmendorf and Lael Brai- Sachs and a Brookings Trustee, implication of the U.S. market turmoil opment program. Established in supported two projects in nard, briefed the Board on details joined Thomas F. McLarty—a at the November Board of Trustees part with a $5.8 million grant from Economic Studies: the Retirement of the economic crisis. former chief of staff to President meeting in Washington. the Bill & Melinda Gates Foun- Security Project’s research on Implications of the new Bill Clinton—for a panel on what dation—one of Brookings’s most developing an automatic IRA Obama administration for Latin the new president faces with the a generous foundation supporters— to encourage savings and the America flavored the tone of the global financial crisis. ab rer the initiative significantly expands Engelberg Center for Health February Board of Trustees meet- By the June Trustee meeting, c e .

the Institution’s capacity and Care Reform’s work on improving ing in Miami. Experts including the question had become “Panic an expertise on development policy in health care systems in developing ­Mauricio Cárdenas, director of ’08: What Happened?” Among and toward Africa and is helping countries. Brookings is grateful for the Brookings Latin America those who provided answers were Brookings build stronger relation- the generosity of the Rockefeller Initiative, discussed the macro- Office of Management and Bud- j u by Photo ships with the African policy and Foundation and its support for so economic, trade and investment get Director and former Brookings At the February Board of Trustees meeting in Miami, Larry D. Thompson, a senior vice research community. many important projects. outlook for the region. Brookings Senior Fellow Peter Orszag and president for government affairs and general counsel at PepsiCo. Inc, offers insights “It is our hope that this initia- Board of Trustees meetings experts also presented on potential Deputy National Security Advisor on global markets, as Edgar Rios (left), co-founder and managing director of Wenzi tive will allow us to establish a through the year set the stage for changes within Cuba: its military, Michael Froman. Capital Partners, listens. 30 (continued) 31 Support for Brookings

(continued) Trustees Glenn Hutchins Muhtar Kent, CEO and Chair- and Abby Joseph Cohen offered man of Coca-Cola, described his Welcoming insights from the private sec- firm’s ethos: “We have a philoso- tor. The two and a half days of phy that says that unless we can New intense sessions with scholars, meaningfully help create sustain- senior officials and congressional able communities in all of those Trustees leaders were held in conjunction 203 countries where we operate, with the annual meeting of the then we will not have a long-term uring the 2008–2009 International Advisory Council. and sustainable business.” year, six new Trustees In July, Brookings lost a Dwere elected to the longtime friend with the death of Council Members Exchange Brookings Board, joining a dis- Robert S. McNamara, who joined Views with Brookings Experts tinguished group of the nation’s the Board of Trustees in 1968 With a robust calendar of events foremost business executives, and was elected as an honorary in New York, Washington and academics, community leaders, N EVE LL PURCE ST trustee in 1986, serving until his other major cities, Brookings N EVE LL PURCE ST former government officials, death. Talbott commented that ­Corporate Council members this and international business lead- Photo by by Photo “Bob McNamara was a towering year enjoyed a variety of oppor- by Photo ers. The Board, which meets figure who left his mark in tunities to hear directly from Trustee Steven A. Denning, chairman of General Atlantic Shaping a new strategic plan for Brookings, President Strobe Talbott and Board Chairman John three times a year, helps gov- multiple ways on the national and scholars about their research and LLC, participates in a discussion on the global ramifications of Thornton give Trustees a comprehensive understanding of the Institution’s capability, expertise and ern the business affairs of the global landscape—in business, analysis. the economic downturn. goals for moving ahead. Institution, approves the fields in international finance, in Senior Fellow Bruce Riedel of scholarly investigation and public service, and in advocacy and others drew a full crowd to safeguards the independence of for causes ranging from the a Council event in New York the Institution’s work. Brookings eradication of poverty to nuclear hosted by Brookings Trustee James Wolfensohn provides remarks at is proud to welcome its new- disarmament.” Alan Batkin. Council members a Wolfensohn Center for Development est members to the Board of were eager to hear Riedel, as he event in December that called for action Trustees: Corporate Philanthropy = had just returned to Brookings on global early child development to help Social Responsibility after spending two months at the break the cycle of inherited poverty. J o ur nal • Dominic Barton A responsible business can White House chairing President Managing Director not avoid trying to improve the Obama’s review of Afghanistan McKinsey & Company environment in which it operates, and Pakistan policy. Brookings i onal m / N at B loo • Cheryl Cohen Effron Bill Clinton emphatically stated Trustee Bart Friedman hosted A . at a Brookings gathering this year. another well-attended event in • Benjamin R. Jacobs The 42nd president of the United New York, featuring Vice Presi- Founder and Managing States and founding chairman dent of Foreign Policy Carlos ­Partner

of the Clinton Global Initiative Pascual and Senior Fellow Bruce R ic ha rd by Photo The JBG Companies urged more government-private Jones assessing the Obama • Richard A. Kimball, Jr. sector collaboration, especially administration’s response to Managing Director and since many people are failing to global security threats. Antoine van Agtmael (left), Co-Head of Global Health- thrive in the current downturn. In Washington, Brookings Trustee, chairman of the care Investment Banking With so many chief executives Trustee Ann Jordan hosted Brookings International a and Capital Markets from major corporations facing Senior Fellow Thomas Mann, Advisory Council and chairman

ab rer Goldman, Sachs & Co. the challenge of restoring the who offered his predictions for c and CIO of Emerging Markets e . Management, LLC, talks to public’s confidence in business, the 2008 elections and provided an • Thomas C. Ramey the event brought together cor- his assessment of the likely con- Trustee Kenneth M. Jacobs, Former Chairman porate leaders for a discussion on sequences. After the election, deputy chairman of Lazard Liberty International, how businesses can create value Brookings Council member Kay j u by Photo Freres & Co. LLC, on the Liberty Mutual Group both for shareholders and society. Enokido hosted Senior Fellow Trustee Beatrice W. Welters, founder of the An-Bryce “unthinkable” headlines • Lynn Thoman Some companies have inte- E.J. Dionne at the Hay-Adams Foundation, with Brenda Thompson (right). dominating news. Opening the Co-President grated “doing good” into their Hotel in Washington to engage in June IAC meeting, van Agtmael Leon Lowenstein core businesses to reduce costs, a thoughtful conversation on the N EVE LL PURCE ST sketched the dramatic change Foundation increase profits and confront the meaning of its outcome. incurred by the bankruptcy of iconic U.S. corporations. world’s most pressing problems. (continued) by Photo 32 33

Support for Brookings Honor Roll of Contributors

(continued) Cash Received Surdna Foundation, Inc. Kenneth M. Jacobs $50,000–$99,999 The International Advisory July 1, 2008–June 30, 2009 Government of Switzerland The Jenesis Group Anonymous (2) Council Offers a Global Taipei Economic and Cultural Jolie-Pitt Foundation Robert John Abernethy Perspective on $1,000,000 and Above Representative Office Richard Kauffman William Ackman Tumultuous Times Anonymous Bernard van Leer Foundation Nemir Kirdar Alfred Herrhausen Society for The Brookings International Alfred and Gail Engelberg Youth Employment Center Kohlberg Kravis Roberts & Co. International Dialogue Advisory Council held its fourth Ford Foundation Ezra K. Zilkha Anne Lauvergeon, AREVA All Nippon Airways (in kind) annual meeting in the midst Bill & Melinda Gates Foundation Frank P. Lowy Rahul Bajaj of the global economic crisis The William and Flora Hewlett $100,000–$249,999 The Markle Foundation Alan R. and Jane Batkin and five months into the new Foundation Anonymous (3) Microsoft Corporation Battelle Obama administration. With a The Robert Wood Johnson Alcoa The NASDAQ OMX Group, Inc. Geoffrey T. Boisi and the Boisi membership that represents the Foundation Allstate National Intelligence Council Family Foundation diverse regions of the world and The John D. & Catherine T. American Express National Science Foundation The Andrea and Charles Bronfman leaders from business, politics, MacArthur Foundation Amgen, Inc. Novartis Corporation U.S.A. Fund at Brandeis University media and higher education, the Government of the State of Qatar Asian Development Bank The Pennsylvania State University Antony Burgmans, Unilever IAC launched a global, action- The Rockefeller Foundation AT&T Services Inc. Pfizer Inc The Morris and Gwendolyn Cafritz oriented dialogue. It ranged from Haim and Cheryl Saban Dominic Barton Victor Pinchuk Foundation Foundation climate change and U.S. health Leonard D. Schaeffer Bipartisan Policy Center Thomas C. Ramey and Perrin Campaign Finance Institute care reform to the growth of John L. Thornton Boston College Ireland Canadian Department of Foreign emerging economies exemplified James D. Wolfensohn Canadian International Council Reliance Industries Limited Affairs and International Trade by China, India, Brazil and South m o ri g i

u l Paul L. Cejas Charles W. Robinson The Century Foundation, Inc. a

Africa. p $500,000–$999,999 Chevron Rockefeller Brothers Fund Chenega Advanced Solutions & The IAC, in conjunction with Anonymous (2) The Council for the United Jacob Rothschild and the Saffery Engineering LLC

the Brookings Board of Trustees, by Photo Richard C. Blum and Senator States and Italy Champness Trust Corporation Cherokee urged a Brookings agenda Betsy Biern, vice president for development, talks to the Metropolitan Policy program’s Amy Liu Dianne Feinstein Government of Denmark as Trustee of the Arrow Adam Chesnoff that gives priority to issues prior to an event on the stimulus package at six months. Liu and the other panelists were cited by Carnegie Corporation of Steve and Roberta Denning Charitable Trust The Cleveland Foundation of restoring growth through Washington Post columnist David Broder for their insights on what will happen in 2010, the year New York Department of Defense Nathaniel Rothschild Coalition of Private Investment innovation and fresh thinking when stimulus spending concludes and the nation must figure out what to do next. Annie E. Casey Foundation Paul Desmarais, Jr. Sabanci University Companies on the policy conundrums of District of Columbia State Hanzade Do˘gan, Do˘gan Group of Roger W. and Victoria P. Sant Abby Joseph Cohen the day, notably energy and Education Office Companies Robert H. Smith The Community Foundation for the health care. Many endorsed the climate regime. The Speaker Liberty Mutual Group The Doris Duke Charitable Target National Capital Region importance of a cross-disciplinary predicted—correctly—that the Oracle (in kind) Foundation The Tecovas Foundation Confederation of Businessmen and approach to multifaceted issues. House of Representatives would The Pew Charitable Trusts Blair W. Effron and Cheryl Andrew H. and Ann R. Tisch Industrialists of Turkey Looking ahead, the long-term pass a climate change bill before Russell Sage Foundation Cohen Effron Foundation Lester Crown growth in government spending the July 4 recess. The Bernard and Irene Schwartz Eli Lilly and Company Tokyo Club Foundation for Alan M. Dachs is heavily pushed by health IAC members, Trustees and Foundation Energy Foundation Global Studies Government of the District of costs. Budget Director Peter guests gathered before a giant The Spencer Foundation David and Marianna Fisher Toyota Columbia Orszag told the IAC and Trustees screen to watch as President UnitedHealth Group, Inc. Embassy of France C.H. Tung and China-United DST Systems, Inc. that the United States is on an Obama addressed the Muslim The Freeman Foundation States Exchange Foundation EADS North America unsustainable course. Much of world from a university podium $250,000–$499,999 GE Foundation Turkish Industrialists’ and Edison Electric Institute the conversation that followed in Cairo. Afterward, they Bank of America Jeffrey A. Goldstein Businessmen’s Association James Elrod centered on the best way to discussed their reactions. Their Citi Google.org Fund of Tides Unbound Philanthropy Lawrence K. Fish reorient the system toward assessment: largely positive. Edgar M. Cullman, Sr. Foundation University of Pittsburgh The Foundation for Maryland’s quality care versus quantity of Henry Kissinger, former U.S. Exxon Mobil Corporation Maurice R. Greenberg and U.S. Agency for International Future care. Secretary of State and recipient Johns Hopkins University The Starr Foundation Development Foundation to Promote Open Society The theme of more effective of the 1973 Nobel Peace Prize, N EVE LL PURCE ST Ewing Marion Kauffman Pablo González Guajardo, Antoine van Agtmael Bart Friedman global governance—with expressed a cautiously favorable Foundation Kimberly-Clark de México Vanderbilt University The Victor and William Fung

cooperation among great powers reaction to the Cairo speech. by Photo Living Cities, Inc. Guardian Realty Investors, LLC Wal-Mart Stores, Inc. Foundation at its core—ran through the Referring to his personal Trustees Cheryl Cohen Effron (left) and Benjamin R. Charles Stewart Mott Foundation (in kind) General Dynamics Corporation proceedings. House Speaker experience with transformative Jacobs, managing partner of the JBG Companies, attend a Royal Ministry of Foreign Affairs, The George Gund Foundation The German Marshall Fund of the Nancy Pelosi (D-Calif.), who had moments in world history, he welcome reception and dinner hosted by the Knight Foundation Norway The Heinz Endowments United States just returned from an official visit shared his opinion that “great at the home of Rosa and Carlos de la Cruz prior to the February State Farm Mutual Automobile Hitachi, Ltd. Richard and Rhoda Goldman Fund to China, focused her remarks leaders deal at the outer limit of Board of the Trustees meeting in Miami. Gail Jacobs is also Insurance Company Gail and Benjamin Jacobs Jeffrey W. Greenberg on negotiations over a post-Kyoto possibilities.” n pictured. 34 35 Honor Roll of Contributors Honor Roll of Contributors

Brian L. and Myra S. Greenspun J. McDonald Williams and the Dallas Howard M. and Kate C. Kilguss John P. Birkelund Michael H. Jordan Daniel and Joanna Rose Elinor Farquhar Thomas E. Donilon and The Greenspun Family Foundation KnowledgeWorks Foundation Heinrich Böll Foundation Douglas M. Kaden RTI International Nancy M. Folger Walter Y. Elisha Foundation Youngone Corporation Edward M. Lamont Anders Brag Kansai Electric Power Company, Inc. Joseph Sassoon Dr. Leslie I. Gold and John P. Spain Henry L. Gates, Jr. Mala Gaonkar Haarmann Herbert S. Miller Brodsky Family Foundation Joel and Ricki Kanter Isabel V. Sawhill Lincoln Gordon Vartan Gregorian William A. Haseltine, Ph.D. $25,000–$49,999 Medco Health Solutions, Inc. Daniel Brodsky Betsy and Frank Karel Henry B. Schacht Jeffrey C. Gore Nancy M. Hewett, Ph.D. The F.B. Heron Foundation Anonymous National City Corporation Bristol-Myers Squibb Foundation James C. Kautz Michael P. and Paola Schulhof Greater New Orleans Nonprofit Ann and Vernon Jordan R. Christopher Hoehn-Saric Meena and Liaquat Ahamed Nationwide British Embassy David Woods Kemper Memorial Elinor A. Seevak Knowledge Works W.K. Kellogg Foundation Humanity United Allen & Company LLC Nihon Keizai Shinbunsha (NIKKEI) Carter Cafritz Foundation Paul and Deane Shatz Marion Guggenheim Thomas L. Kempner Joel Z. Hyatt The Paul G. Allen Family Foundation Our Nation’s Capital Conrad Cafritz Kenan Institute for Ethics at Duke Stanley S. Shuman and The Marc John Gutfreund Lowy Institute for International Frank F. Islam Alliance for Quality Nursing Home The David and Lucile Packard Cargill University Haas Foundation Miriam and Peter Haas Fund Policy Ministry of Foreign Affairs of Italy Care, Inc. Foundation Caterpillar Foundation Ken and Martha Kessler Stephanie and Fred Shuman Henry and Nancy Hamlin Gary and Babette Lubben The Japan Foundation Center for American Association of Homes and Frank H. Pearl Morris Chang, Taiwan Brenda R. Kiessling David Silverstein Samuel Hellman, M.D. James T. and Joan M. Lynn Global Partnership Services for the Aging The Philadelphia Foundation Semiconductor Manufacturing The Elbrun and Peter Kimmelman Steven J. Simmons Robert A. Helman Donald F. McHenry Herbert M. Kaplan American Electric Power Company Samuel Pisar Company, Ltd. Family Foundation Skype Francis O. Hunnewell Stephen C. Morris Richard A. Kimball The American Enterprise Institute The PNC Financial Services Group A. W. Clausen Derek Kirkland Robert E. and Emily Smith John R. Jakobson The PBN Company The Korea Foundation Aramco Services Company Princeton University Judith and Stewart Colton Marie L. Knowles Sojitz Foundation Nicholas Jakobson Samuel Plimpton Lazard Frères & Co. LLC Elizabeth E. Bailey Raytheon Co. Congressional Research Service Korea International Trade Association Andrew P. and Patricia Steffan Reuben Jeffery John Edward Porter Lockheed Martin Corporation Rex J. Bates James D. Robinson, III Karen and Everett R. Cook Tushar Kothari, Prestige Jewelry Sumitomo Corporation of America The Jovid Foundation Helen Raffel Luxembourg Ministry of Foreign BP America, Inc. sanofi-aventis US The Curtis Family Foundation International Paul and Chandler Tagliabue Robert P. and Arlene R. Kogod Stanley and Louise Resor Affairs Louis W. Cabot Shell Oil Company The Honorable Kenneth W. Dam and KPMG LLP Nelson Talbott Bruce K. and Virginia N. MacLaury Warren B. Rudman Robert E. Marks Center for Strategic & International Samuel M. and Helene K. Soref Marcia W. Dam Las Vegas Valley Water District Larry D. Thompson David O. Maxwell Stanley M. Rumbough, Jr. The Leo Model Foundation, Inc. Studies Foundation D. Ronald Daniel and Lise C. Scott Toby Devan Lewis Michael L. Tipsord The Mobility Agenda Francis H. Schott The Ambrose Monell Foundation Center on Budget and Policy David S. Steiner and Sylvia Steiner DC Appleseed Center for Law and Gordon Litwin and Anne Luzzatto Tokyo Electric Power Company Moriah Fund Alan B. Slifka Jaime J. Montealegre Priorities Charitable Trust Justice Daniel Loeb Toshiba America, Inc. National Investment Center for the Tata Sons Ltd. Mario M. Morino The Centre for International Joshua L. Steiner Deere & Company Malcolm Lovell Andrew K. Tsai Seniors Housing & Care Industry Joan Tobin National University of Singapore Governance Innovation Sumitomo Mitsui Banking Marti Dinerstein Bertil P. Lundqvist Tudor Investment Corporation Peter and Sarah O’Hagan Lady Villiers News Corporation Cerner Corporation Corporation Gaylord & Dorothy Donnelley Frederic V. Malek United States Army War College William A. Owens Robert M. Weekley Next Street Financial The Coca-Cola Company Takeda Pharmaceuticals North Foundation Mannheim LLC University of Akron Alan and Susan Patricof Frank Weil Observer Research Foundation The Commonwealth Fund America Inc. Adam J. Dooley Marathon Oil Corporation University of Cincinnati The Philanthropic Collaborative Todd G. Patkin The Concord Coalition UNITE HERE Anthony and Darian Downs Marubeni America Corporation Paul A. Verbinnen Population Resource Center *deceased Robert Peck Connect US Fund of Tides University of Pennsylvania William C. Eacho, III Edward J. and Dale Mathias Wachovia Corporation Frederic A. and Susan Rubinstein PepsiCo, Inc. Foundation Visa Inc. Kay Enokido and Thomas C. Crouse The McGraw-Hill Companies John C. Whitehead William R. Salomon Peter G. Peterson Foundation ConocoPhillips Enzo Viscusi Everett Foundation Sreedhar Menon Malcolm H. Wiener Ralph S. Saul John G. Popp CSC George A. Vradenburg and the Bee Roger C. Faxon Eugene and Agnes E. Meyer Fred Wilpon Kenneth Siegel Charles Prince Daimler Vradenburg Foundation Federal City Council Foundation Stephen M. Wolf SK Research Institute for SUPEX Wanda Rapaczynski DC Surface Transit Inc. Seymour and Kathleen Weingarten Julie Finley Arjay and Frances Miller The World Bank Management Joseph L. Rice, III European Commission Daniel H. Yergin and Angela Stent French Ministry of Foreign Affairs Mitsubishi International Corporation Xerox Corporation Helmut Sonnenfeldt Edgar and Lillian Rios Fidelity Investments David Friend Mitsui & Co. (U.S.A.), Inc. Daniel B. Zwirn Joan E. Spero and the R&R Foundation Samuel and Leah Fischer $10,000–$24,999 John L. Furth Raffiq A. Nathoo Frederick Stavis Jonathan Schaffzin The Lee and Juliet Folger Fund Anonymous The Gallup Organization Embassy of the Netherlands $5,000–$9,999 U.S. Institute of Peace Strobe Talbott and Brooke Shearer* Mitzi and Cyrus F. Freidheim, Jr. Donald C. Alexander* The Philip L. Graham Fund Nevada System of Higher Education American Society of the French Hermine Warren Beatrice Snyder Foundation Ann M. Fudge American Health Care Association Patrick W. and Sheila Proby Gross Northwestern Michigan College Legion of Honor Mary Weinmann Standard Chartered Bank The George Washington University American Honda Motor Co., Inc. Agnes Gund NV Energy, Inc. Amsterdam International Institute for Mary and Jeff Zients A. Alfred Taubman William T. Grant Foundation Loreen Arbus, Goldenson-Arbus Robert D. Haas Richard B. and Francesca Stanfill Development Lynn B. Thoman Harvard University Foundation The Harris Family Foundation Nye Rhoda W. Brownstein $4,999 and below Ranvir K. Trehan Alan Hassenfeld Estate of Robert E. Asher June R. Hechinger Ohio Capital Corporation for William M. Cameron Anonymous The Urban Institute Investment Company Institute Association of Public Data Users F. Warren Hellman Housing Ellen Chesler and Matthew J. Richard Barnes Mallory Walker and William Walker Naveen Jain Liza Bailey Cynthia Helms George F. Ohrstrom Mallow Carl and Courtney Bergeron Marcus Wallenberg, Skandinaviska Japan Bank for International The Bank of Tokyo-Mitsubishi UFJ Hong Kong University Alumni Eiji Ono Arthur B. Culvahouse Cabell and Shirley Brand Enskila Banken Cooperation Joanne Barker Association for China Study Panasonic Corporation Bruce B. Dayton Daniel J. Callahan, III Beatrice W. and Anthony Welters Japan Center for Economic Research Richard Bartlett Huntington Bancshares Incorporated The Procter & Gamble Company Democracy Coalition Project Morton and Shirley Cohen John White Johnson & Johnson Robert Berne ITOCHU International Inc. J. Woodward Redmond Kenneth M. Duberstein Roberta Cohen James A. Johnson and Maxine Isaacs Joshua Bernstein Martin D. Jacobson Marie Ridder Charles W. Duncan, Jr. Vishakha N. Desai 36 37 STATEMENT OF ACTIVITIES STATEMENT OF FINANCIAL POSITION Years Ended June 30, 2009 and 2008 (in thousands) As of June 30, 2009 and 2008 (in thousands) Preliminary and Unaudited* Preliminary and Unaudited*

TEMPORARILY PERMANENTLY 2009 2008 2009 2008 UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL ASSETS OPERATING ACTIVITIES Cash and cash equivalents $ 7,627 $ 5,604 Revenue and Support Grants, contributions and accounts receivable, net 72,528 70,356 Investment return designated for operations $ 10,536 $ 2,698 $ 13,234 $ 12,431 Inventory 546 481 Grants, contracts, and contributions 10,954 39,965 50,919 61,150 Investments 219,691 277,455 Conferences 4,270 4,270 5,283 Property and equipment, net 46,655 43,122 Brookings Press 2,694 2,694 2,654 Other assets 1,704 979 Facility and other revenue 1,437 18 1,455 1,241 TOTAL ASSETS $348,751 $397,997 Net assets released from restrictions— Satisfaction of program restrictions 51,013 (51,013) LIABILITIES AND NET ASSETS Total Operating Revenue 80,904 (8,332) 72,572 82,759 LIABILITIES Accounts payable and accrued expenses 7,759 8,846 OPERATING EXPENSES Bonds payable and lines of credit 44,361 28,031 Program services Accrued compensated leave 2,730 2,409 Economic Studies 15,167 15,167 11,924 Accrued post-retirement benefit obligation 3,400 3,340 Foreign Policy 19,067 19,067 17,112 Deferred revenue 976 613 Global Economy and Development 7,781 7,781 6,914 Governance Studies 3,526 3,526 2,409 TOTAL LIABILITIES $ 59,226 $ 43,239 Metropolitan Policy Program 7,687 7,687 9,551 Other Research 543 543 2,094 NET ASSETS Unrestricted 146,105 193,596 Executive Education 3,385 3,385 5,316 Temporarily restricted 85,810 102,876 Brookings Press 3,079 3,079 3,141 Permanently restricted 57,610 58,286 Communications 1,786 1,786 3,582 TOTAL NET ASSETS 289,525 354,758 Total Program Services 62,021 62,021 62,043 Supporting Services TOTAL LIABILITIES AND NET ASSETS $348,751 $397,997 Management and General 17,802 17,802 15,341 Fundraising 2,941 2,941 2,640 Total Operating Expenses 82,764 82,764 80,024 Net Operating Activity (1,860) (8,332) (10,192) 2,735 Write-off of impaired asset (3,753) (3,753) Change in net assets before non-operating activites (5,613) (8,332) (13,945) 2,735

NON-OPERATING ACTIVITIES Investment return in excess of amounts designated for operations Realized gain (loss) on sale of investments 9,359 9,359 12,162 Unrealized gain (loss) from investments (38,335) (9,272) (47,607) (24,676) Interest and dividends, net 138 138 1,094 Investment return designated for operations (13,235) (13,235) (12,431) Total investment return (loss) in excess of amounts designated for operations (42,073) (9,272) (51,345) (23,851) Contributions for endowment 89 538 $ (676) (49) 5,366 Total Non-Operating Activities (41,984) (8,734) (676) (51,394) (18,485) Change in net assets before post-retirement related changes other than net periodic post-retirement benefit cost (47,597) (17,066) (676) (65,339) (15,750) Post-retirement related changes other than net Notes: periodic post-retirement pension cost 106 106 (119) As a nonprofit and scientific organization, Brookings is exempt from federal income taxes under section 501(c)(3) of the Internal Revenue CHANGE IN NET ASSETS (47,491) (17,066) (676) (65,233) (15,869) Code. The Institution also qualifies as a publicly supported organization under section 170(b)(1)(A)(vi) of the code. Net assets, Beginning of year 193,596 102,876 58,286 354,758 370,627 The Brookings policy is to make an annual investment spending allocation for the support of operations. This amount is calculated based Net assets, End of year $146,105 $ 85,810 $57,610 $289,525 $354,758 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. 38 39 Brookings BOARD OF TRUSTEES John L. Thornton Benjamin R. Jacobs John W. Wilhelm David Friend Donald F. McHenry Chair of the Board Founder and Managing Partner President, Hospitality Industry President and CEO Distinguished Professor in the The Brookings Institution The JBG Companies UNITE HERE Carbonite, Inc. Practice of Diplomacy and International Affairs Strobe Talbott Kenneth M. Jacobs Daniel Yergin Ann M. Fudge School of Foreign Service President Deputy Chairman Chairman Former Chairman and CEO Georgetown University The Brookings Institution Lazard Frères & Co. LLC Cambridge Energy Research Young & Rubicam Brands Associates Arjay Miller Robert J. Abernethy Suzanne Nora Johnson Henry Louis Gates Jr. Ph.D. Dean Emeritus Press President Former Vice Chairman Daniel B. Zwirn Director Stanford Graduate School of American Standard Development The Goldman Sachs Group, Inc. Managing Partner W.E.B. Du Bois Institute Business he Brookings Policy ­Troubles at the Outset of than proactive, in confronting the terrorist network that was Co., Inc. DB Zwirn & Co., LLC Harvard University Richard Kauffman Mario M. Morino Institution Press Presidential Power with Kurt M. economic and environmental ­responsible for the 9/11 attacks. Liaquat Ahamed Chief Executive Officer Brian L. Greenspun Chairman Former Chief Executive Officer Good Energies HONORARY TRUSTEES Chairman and CEO Venture Philanthropy Partners released numer- Campbell, confirmed in June as concerns. Riedel’s book is believed to Fischer Francis Trees and Watts, Inc. The Greenspun Corporation ous books this Assistant Secretary of State for Before becoming the Deputy be the only Brookings volume Richard A. Kimball Jr. Leonard Abramson Maconda Brown O’Connor Ph.D. Dominic Barton Managing Director and Co-Head of Consultant and Member of the Robert D. Haas Trustee year on issues East Asian and Pacific Affairs. Chief Technology Officer for reviewed this year on a leading Chairman of the Asia Region Global Healthcare Investment Boards of Directors of Children’s Chairman of the Board The Brown Foundation, Inc. front and center Steinberg and Campbell pro- Open Government in the Obama jihadist Web site, Al Fallujah McKinsey & Company, Inc. Banking and Capital Markets Hospital of Philadelphia and Levi Strauss & Co. Goldman, Sachs & Co. Johns Hopkins University William A. Owens to the new administration and vide a road map to help the new White House, Beth Simone Islamic Forum. Alan R. Batkin Lee H. Hamilton Chairman and CEO T Vice Chairman Nemir Kirdar Elizabeth E. Bailey President and Director AEA Investors LLC Congress. With the reshap- administration steer clear of the Noveck authored the Brookings Budgeting for Hard Power, by Eton Park Capital Management Founder, Executive Chairman and Chair and John C. Hower Professor The Woodrow Wilson ing of the political landscape, land mines ahead. book Wiki Government: How Brookings Senior Fellow Michael CEO of Business and Public Policy International Center for Scholars Frank H. Pearl Richard C. Blum Investcorp Chairman and CEO many authors were subsequently Former Senior Fellow David Technology Can Make Govern- O’Hanlon, suggests ways that Chairman and President The Wharton School William A. Haseltine Ph.D. University of Pennsylvania Perseus, LLC appointed to positions to help B. Sandalow, editor of Plug-In ment Better, Democracy Stronger, President Obama can fund mili- Blum Capital Partners, LP Philip H. Knight President Chairman The Haseltine Foundation Samuel Pisar Ph.D. Geoffrey T. Boisi Zoë Baird implement their published ideas. Electric Vehicles: What Role for and Citizens More Powerful. She tary programs, homeland security, Nike, Inc. President Chairman International Lawyer Chairman and Senior Partner Haseltine Global Health, LLC New York and Paris Carlos Pascual, former vice Washington?, was selected to be promotes the thesis that com- diplomacy, and assistance to Roundtable Investment Partners Charles O. Prince The Markle Foundation president and director of the Assistant Secretary of Energy for puter networks allow ordinary threatened nations in a time of LLC Retired Chairman and CEO Rex J. Bates Teresa Heinz John Edward Porter Citigroup, Inc. Chairman Partner Foreign Policy program and a co- Policy and International Affairs. people to play a larger and more large budget deficits. Abby Joseph Cohen Louis W. Cabot Heinz Family Philanthropies Hogan & Hartson author of Power The Responsi- President, Global Markets Institute Thomas C. Ramey Chairman and Senior Investment Strategist Former Chairman Cabot-Wellington LLC F. Warren Hellman Charles W. Robinson and Responsi- bility to Protect: Goldman, Sachs & Co. Liberty International, Liberty Mutual Chairman President Group James W. Cicconi Hellman and Friedman LLC Robinson & Associates, Inc., bility: Building Ending Mass Arthur B. Culvahouse Jr. Senior Executive Vice President— CBTF Co., and M Ship Co. International Atrocity Crimes Chair Edgar Rios External and Legislative Affairs Samuel Hellman M.D. O’Melveny & Myers LLP Co-Founder and Managing Director AT&T A.N. Pritzker Distinguished James D. Robinson III Order in an Era Once and For Wenzi Capital Partners Service Professor General Partner and Co-Founder of Transnational All, authored by Alan M. Dachs A. W. Clausen The University of Chicago RRE Ventures President and CEO Haim Saban Retired Chairman and CEO Threats, was Gareth Evans of Fremont Group Chairman and CEO Bank of America Corporation Shirley Ann Jackson Ph.D. Warren B. Rudman Saban Capital Group, Inc. President Of Counsel confirmed by the International Steven A. Denning Former President The World Bank Rensselaer Polytechnic Institute Paul, Weiss, Rifkind, the U.S. Sen- Crisis Group, Chairman Sheryl K. Sandberg Wharton & Garrison General Atlantic LLC Chief Operating Officer William T. Coleman Jr. James A. Johnson ate in July to has been warmly Facebook Vice Chairman B. Francis Saul II Vishakha N. Desai Ph.D. Senior Partner and The Senior be U.S. Ambas- praised by a Counselor Perseus, LLC President and Chairman President and CEO Victoria P. Sant B.F. Saul Company sador to Mex- host of interna- The Asia Society President O’Melveny & Myers LLP Ann Dibble Jordan The Summit Foundation Ralph S. Saul ico. With the tional notables, Paul Desmarais Jr. Kenneth W. Dam Vernon E. Jordan Jr. Max Pam Professor Former Chairman Chairman and CEO David F. Swensen Senior Managing Director CIGNA Corporation other authors— including South Power Corporation of Canada Chief Investment Officer of American & Foreign Law Lazard Frères & Co. LLC Senior Fel- African leader Yale University University of Chicago Law School Of Counsel Leonard D. Schaeffer Kenneth M. Duberstein Akin Gump Strauss Hauer & Feld, Chairman low Bruce Jones and Nonresi- Book contributors include former constructive role in their own Desmond Tutu. It also received Chairman and CEO Lynn Thoman D. Ronald Daniel Director LLP Surgical Care Affiliates dent Senior Fellow Stephen J. government officials, respected government. honorable mention in the Coun- The Duberstein Group, Inc. Co-President Leon Lowenstein Foundation McKinsey & Company, Inc. Breene M. Kerr Michael P. Schulhof Cheryl Cohen Effron ­Stedman, an expert on civil wars private sector analysts, NGO As Congress and the White cil on Foreign Relations’ annual Robert A. Day President Chairman and CEO Larry D. Thompson Brookside Company Global Technology Investments and conflict management— activists and academic experts. House launched an effort to Arthur Ross Award competition. Alfred B. Engelberg Senior VP of Governmental Affairs, Chairman Pascual provides the concep- Together they explain the current reform health care in America, Two other Brookings books Trustee General Counsel and Secretary Trust Company of the West Herbert M. Kaplan John C. Whitehead The Engelberg Foundation PepsiCo, Inc. Chairman and CEO tual underpinnings for a new landscape for plug-in electrics Darrell M. West, vice president also won awards: Power Play by Mario Draghi Stephen M. Wolf Bart Friedman Governor Warren Equities approach to sovereignty and coop- and implications for national and director of the Governance James P. Pfiffner, about George Michael L. Tipsord Chairman of the Board of Directors Senior Partner Vice Chairman, Chief Financial Bank of Italy Marie L. Knowles RR Donnelly eration. They presented ideas to security, the environment and the Studies program, co-authored W. Bush’s use of presidential Cahill Gordon & Reindel Officer and Treasurer Retired Executive Vice President Charles W. Duncan Jr. James D. Wolfensohn the new U.S. administration for economy. Digital Medicine: Health Care in authority, won a silver medal in Jeffrey W. Greenberg State Farm Insurance Companies Chairman and CFO Atlantic Richfield Company (ARCO) Chairman working with other global powers Another Brookings book on the Internet Era to examine how ForeWord Magazine’s Book of Chairman and CEO Andrew H. Tisch Duncan Interests Wolfensohn & Company, LLC Aquiline Holdings LLC Co-Chairman of the Board Jessica Tuchman Mathews Former President toward peace and stability. this topic is Acting in Time on new developments in information the Year awards. The Market for Walter Y. Elisha Glenn Hutchins Loews Corporation Retired Chairman and CEO President The World Bank Carnegie Endowment for President Obama’s Deputy Energy Policy, edited by Kelly technology are remaking medical Virtue: The Potential and Limits Co-Founder and Co-CEO Antoine W. van Agtmael Springs Industries, Inc. Ezra K. Zilkha Silver Lake International Peace Secretary of State, James Sims Gallagher with a team of practice. of Corporate Social Responsi- Chairman and CIO Lawrence K. Fish President Steinberg, another former contributors from Harvard’s Ken- In The Search for Al Qaeda, bility, by David Vogel (2005), Joel Z. Hyatt Emerging Markets Management, Former Chairman and CEO David O. Maxwell Zilkha & Sons, Inc. CEO LLC Citizens Financial Group, Inc. Retired Chairman and CEO vice president and director of nedy School. Senior Fellow Bruce Riedel was judged the best book on Current Media, LLC Fannie Mae Beatrice W. Welters Cyrus F. Freidheim Jr. Foreign Policy, co-authored Their volume details the explains the origins, leader- social issues by the Academy of President and Chairman Former President and CEO Difficult Transitions: Foreign problems of being reactive, rather ship, ideology, and strategy of ­Management. n The An-Bryce Foundation Sun-Times Media Group, Inc. 40 41