COMMITTEE FOR ECONOMIC DEVELOPMENT

2001 ANNUAL REPORT

Policy Leadership – at Home, in the World

60 YEARS OF THE BEST OF BUSINESS THINKING COMMITTEE FOR ECONOMIC DEVELOPMENT COMMITTEE FOR ECONOMIC DEVELOPMENT

Policy Leadership – at Home, in the World

The concept that a diverse nation can be brought Development. Our goal in 1942 was to strengthen and held together by ideas and values rather than the relationship between business and government by bonds of blood and culture is as radical now as it in the war effort, to develop principles for a solid was over 200 years ago. Unique among nations, the post-war recovery, and to galvanize business support United States is not a society grounded in a lan- for important post-war structures such as the World guage, in a class structure, a religion, or a set of tra- Bank and the International Monetary Fund. ditions. Rather, we are a nation based on ideas and In this same spirit, in 2002, CED remains values — taught generation after generation — that committed to addressing the important, enduring we are a free people with self-evident, inalienable long-term issues our country faces. As we noted in rights and responsibilities. This the fall of 2001 during the debate concept has served us well and has about economic stimulus legisla- helped sustain the resilience tion, “Providing for the safety and Americans have traditionally security of our people and nation shown to adapt, to prosper, and to has now become paramount, and prevail. this has created a new policy envi- Some have called the months ronment in the United States and since September 11, 2001 a turn- across the world. However, we must ing point, a seismic shift in America’s direction. not let these security concerns eclipse the need Without the benefit of distance, it is difficult to tell for sound economic policies, both domestic and whether we are, indeed, experiencing fundamental international. In the long term, the health of our change. But we do know that the world is a more economy will largely determine the well being of volatile, unsettled, and unsafe place than it has been our society, including our capacity to provide safety in decades and that global alliances and allegiances and security.” are being rethought and recast in new and interest- CED’s 2001 policy work on issues ranging ing ways. And we also know that Americans are from immigration reform and the importance of determined to do whatever is necessary to secure educational standards to globalization issues affect- ourselves, our allies, and our collective freedoms. ing trade, labor, and the environment is having Sixty years ago, as the country mobilized a significant impact on national decisions. The for World War II, a group of visionary business Attorney General is now separating the enforcement executives formed the Committee for Economic and service functions of the Immigration and

2 Naturalization Service, as recommended last year by CED. Our work on educational assessment provides important guid- ance for state and federal officials as they craft new systems to measure and improve student learning. And legislation pending in Congress on campaign finance reform includes many of CED’s recom- mendations on the role of money in politics. Likewise, the issues CED is now addressing — how globalization can CED President Charles E.M. Kolb and Chairman Frank P. Doyle help alleviate world poverty; the role of employer-sponsored health benefits; early childhood education; improving As CED prepares to celebrate its 60th the supply of scientists and engineers — will Anniversary, we also want to thank those business have a major impact on our world and our place leaders, corporations, university presidents, in it. advisors, and friends who have contributed so CED will continue to provide the best of much to our continued success. business thinking in critical areas of domestic Frank P. Doyle reform, international economic policy, and Chairman education and the workforce. We are committed Committee for Economic Development Retired Executive Vice President, GE to developing sound economic and social policies that will make our own systems at home work better Charles E.M. Kolb for all Americans, while at the same time improving President our ability to deal effectively with our interests in Committee for Economic Development the rest of the world.

3 FOCUS ON: DOMESTIC REFORM

Economic Policy in a New Environment

To help focus the fall 2001 debate over an appropriate fiscal stimulus package, CED released Economic Policy in a New Environment: Five Principles which called for an immediate economic stimulus within a long-term framework to ensure sustained growth. In this report, which was widely distributed on Capitol Hill and to the media, CED argued CED Immigration Policy project co-chairmen strongly that public and private spending must be Christopher D. Earl, Managing Director of Perseus raised quickly without Capital, LLC (center), and H.V. Jones, Office ECONOMIC Managing Director of Korn/Ferry International (left) POLICY with CED President Charles Kolb. IN A NEW undermining a credible ENVIRONMENT: FIVE commitment to the future PRINCIPLES the Immigration and Naturalization Service from

Research and Policy Committee budget surpluses needed Committee for Economic Development its service function. The September 11 terrorist attacks on our nation pro- duced horrendous loss of life and extraordinary grief and pain. Provision for the safety and security of our for long-term growth. To people and nation has now become paramount,and this has created a new policy environment in the United States and across the world. However, we must not let these security concerns eclipse the need for sound economic policies, both domestic and international. In date, Congress has failed to the long term, the health of our economy will largely Campaign Finance Reform act on a stimulus package.

Since the March 1999 release of CED’s landmark Immigration report Investing in the People’s Business: A Business Proposal for Campaign Finance Reform, the debate over On March 21, CED released Reforming Immi- the way American elections are financed has funda- gration in Washington, D.C. with Representative mentally changed. CED successfully demonstrated Zoe Lofgren, a member of Congress from Silicon that business leaders support reform, and business Valley, giving the keynote address. The report community representatives became prominent and argues that current U.S. immigration policy does outspoken advocates for reform for the first time not adequately address our future economic because of CED’s work. needs, and its administration is marked by ineffi- In the 2000 election, CED played a leading ciency, delay, and frustration. U.S. immigration role in national discussions and debates on the policy is also failing to meet the demands of a issue. Presidential candidates pointed to CED’s work global marketplace that rewards mobility and skills. and views, CED President Charles Kolb testified In October 2001, Attorney General John before an important Congressional panel, and CED Ashcroft implemented a key CED recommenda- representatives and recommendations were regular- tion — separating the enforcement operation of ly featured on op-ed pages and in editorials, net-

4 60 YEARS OF THE BEST work news reports, and newspaper and magazine articles around the nation. In 2001, CED increased the number of promi- nent business and civic leaders endorsing its reform plan to more than 300. CED was also instrumental in holding together a broad, bipartisan coalition of organizations in support of controversial elements of the Senate campaign finance reform legislation,

such as an increase in hard-money contribution Brian Tobin, Canada’s Minister of Industry, gave the keynote address at CED’s Forum on “The Digital limits. In April 2001, the U.S. Senate passed cam- Economy and North American Economic Growth.” paign finance legislation, and many Senators, including reform leaders John McCain and Russell At CED’s May 2001 Annual Meeting, CED and Feingold, used CED’s work to support their calls for the Canadian E-Business Opportunities Roundtable reform. hosted a joint forum in New York City on “The Digital Economy and North American Economic Growth.” The forum focused on the important role of business in shaping the policies driving e-com- merce in both Canada and the United States. Canada’s Minister of Industry Brian Tobin gave the keynote address. Forum panelists included Leonard J. Brody, CEO and Chairman, ipreo; Irwin Dorros, President, Dorros Associates; John Eckert, CED Trustee Ron Grzywinski (right), Chairman of Shorebank Corporation, hosted a discussion on cam- President, Canadian Venture Capital Association; paign finance reform for Chicago business leaders with Senators Russell Feingold (center) and John McCain. Everett M. Ehrlich, President, ESC Co. and former Under Secretary of Commerce; Edmund B. Fitzgerald, Managing Director, Woodmont E-Commerce Associates and former Chairman and CEO, Nortel; V. Peter Harder, Deputy Minister, Industry Canada; Early in 2001, CED released The Digital Economy: Peter Nicholson, Chief Strategy Officer, BCE Inc.; Promoting Competition, Innovation, and Opportunity Donald K. Peterson, President and CEO, Avaya Inc.; with the Internet Education Foundation Paula Stern, President, The Stern Group, Inc.; Tom (affiliated with the Internet Caucus of Congress). Weber, e-commerce columnist, The Wall Street Representative Robert Goodlatte, Co-chair of Journal; and John D. Wetmore, Vice President, the Internet Caucus, was the keynote speaker. ibm.com, IBM Americas.

5 OF BUSINESS THINKING DOMESTIC REFORM

Ongoing Projects The Employer’s Role in Health Care Reform. Health care costs and insurance premi- Judicial Selection. As modern campaign ums are again rising rapidly after a brief period of techniques increase the costs of judicial elections, stability, and the number of uninsured Americans sitting judges and judicial candidates are soliciting continues to increase. A backlash against managed contributions in larger amounts than they did a care has moved decade ago. Public into the political perception is grow- ing that campaign arena, and issues of donors and political quality and effi- supporters are buy- ciency are receiv- ing the influence of ing renewed atten- the nation’s judges. tion. This CED pro- These developments ject is examining have prompted the role of employ- CED’s Trustees to ers and employer- examine the process based health insur- of judicial selection On November 8, CED Trustees heard from Steve Forbes (second from ance in addressing left), Editor-in-Chief of Forbes Magazine, on the post-September 11 eco- and to propose nomic and international environment. With Mr. Forbes are, from these issues while right, CED Chairman Frank P. Doyle, former Massachusetts Governor several reforms. William Weld, and CED President Charles Kolb. preserving the CED believes that innovative capacity an erosion of public of the health sector. trust and confidence in the Peter A. Benoliel, impartiality and fairness of Chairman, Executive judicial outcomes threatens the Committee, Quaker legitimacy of our legal system. Chemical Corporation; The project is funded in part Jerome H. Grossman, by the Open Society Institute. Chairman and CEO, Lion Derek Bok, President Gate Management Emeritus of Harvard University Corporation; and Steffen and Chairman of Common Co-chairmen of CED’s Research and Policy E. Palko, Vice Chairman Cause, and Roderick M. Hills, Committee Patrick W. Gross, Founder & Chairman, Executive Committee, American and President, XTO Chairman of Hills Enterprises, Management Systems, Inc. (left) and Bruce K. MacLaury, President Emeritus of The Energy Inc., co-chair the Ltd., co-chair the project. Brookings Institution. project.

6 60 YEARS OF THE BEST FOCUS ON:TRADE AND GLOBAL COMPETITIVENESS

World Poverty In July, CED released From Protest to Progress: Addressing Labor and Environmental Conditions CED’s Subcommittee on Globalization is contin- Through Freer Trade. The report argues that while uing its work with an examination of the role global environmental and that economic growth labor issues cannot be and development can ignored, they should not play in reducing world be dealt with through poverty. In addition to trade policy. While trade, the opening of global labor, and the environ- markets for trade and ment are interrelated, investment, the subcom- “this does not,” CED says, mittee will evaluate the “mean that they should all importance of other poli- be treated in the same cy areas for reducing forum or under the same global poverty, including agreement.” Specific envi- health, education, and ronmental and labor good government prac- issues should be negotiat- tices. The project focuses ed “under the auspices of on key policy areas that To initiate a dialogue on trade and the environment, CED specialized international and the World Affairs Council of Northern California co- must be at the core of hosted two October 23, 2001 events for the business and any country’s economic agencies.” “We need to policy communities in San Francisco and at Hewlett- Packard in San Jose. CED Trustee William D. Eberle address the labor and development and pover- (right), Chairman of Manchester Associates, and environmental issues that former United States Trade Representative, and Sierra ty-reduction strategy: Club Executive Director Carl Pope led these lively and are obstacles to new trade informative sessions. setting sound economic agreements and give the policies, improving gov- President the trade ernance and rooting out corruption, and investing promotion authority he needs,” said Edmund in human and social capital. Its recommendations, B. Fitzgerald, former Chairman and CEO of Nortel, however, will focus on clarifying for governments who along with Paula Stern, President of The Stern and businesses in the advanced economies what Group, Inc. and former Chairwoman of the U.S. actions they can take to help developing countries International Trade Commission, co-chaired the help themselves. These actions are not altruistic; CED Subcommittee that produced the report. they will also benefit the advanced economies. The On December 6, the House approved by a most important step would be the removal of all single vote, (215-214), trade promotion authority trade distortions — tariffs, quotas, and subsidies. (TPA) for the President. The report is scheduled for mid-2002 release. 7 OF BUSINESS THINKING FOCUS ON:EDUCATION AND THE WORKFORCE

Measuring Educational Performance

In February 2001, CED released Measuring What Matters: Using Assessment and Accountability to Improve Student Learning. Responding to growing interest in, and controversy about, the use of tests in education reform efforts, CED Trustees urged state and feder- al officials to use and improve tests now, rather than resisting them until they are perfect. CED argues that testing provides the best means of charting

progress toward the goal of improved academic CED President Charles Kolb (right) welcomes Senator James Jeffords with a copy of Measuring What Matters. achievement. “Properly designed and aligned tests are vital tools for managing and evaluating efforts to ensure that all children receive a high-quality educa- Soon after becoming President, George W. tion,” said Edward B. Rust, Jr., Chairman and CEO Bush proposed changes in federal education law of State Farm Insurance, who along with Roy J. that echoed these themes. On April 3, CED’s report Bostock, Chairman, Executive Committee of served as the backdrop for a luncheon speech by B/Com3 Group, Inc., chaired CED’s Education Senator James Jeffords and a panel discussion on Subcommittee that prepared the report. the federal role in assessment and accountability. Panelists included Gordon Ambach, Executive Director of the Council of Chief State School Officers; Christopher Cross, President of the Council for Basic Education; and Michael Feuer, Executive Director of the National Research Council’s Center for Education.

Early Education

In February 2002, CED’s Education Subcommittee released Preschool for All: Investing in a Productive and Just Society. This new CED statement calls on CED education project co-chairman Edward B. Rust, Jr., Chairman and CEO of State Farm Insurance, discussed the nation to make early education available to all education issues with President-elect George W. Bush in January 2001. children age 3 and over whose parents want them

Courtesy Archive Photos/Reuters 8 60 YEARS OF THE BEST to participate. The report emphasizes that for all individual communities, The MetLife Foundation children to have the opportunity to enter school and CED conducted a series of education dialogues ready to learn, the United States must change its in five cities. These Roundtables provided an current haphazard, piecemeal, and underfunded opportunity for teachers, parents, school adminis- approach to early learning by linking programs and trators, and students to talk openly about the issues providers into comprehensive, state-based systems with financial responsibility for early education shared equally between federal and state govern- ments.

MetLife/CED Education Roundtables

Each year, the Metropolitan Life Insurance Rod Paige, U.S. Secretary of Education (then- Company conducts a nation-wide survey of those Superintendent of Houston’s Schools) spoke at the MetLife-CED Roundtable on Education in Houston. The closest to the classroom — teachers, students, and MetLife Foundation and CED conducted this Roundtable principals. To bring the findings of the survey to with the aid of the Greater Houston Partnership and the Texas Business Education Partnership.

On February 7, 2001, CED and MetLife, working with the Georgia Partnership for Excellence in Education, held the second Roundtable at the studios of Georgia Public Broadcasting in Atlanta. Far right, MetLife Foundation President Sibyl Jacobson and far left, CED President Charles Kolb with some of the Atlanta-area students participating in the Roundtable.

On March 22, 2001, the third Roundtable was conducted in Raleigh, North Carolina in cooper- ation with the Public School Forum, the North Carolina State Board of Education, and the Southeast Center on Teaching Quality. 9 OF BUSINESS THINKING EDUCATION AND THE WORKFORCE

The MetLife-CED New York Roundtable was held at Washington Irving High School in Manhattan on April 26, 2001. This Roundtable focused on parental involve- ment in education.

that directly affect them and whether or not their schools are preparing them for life and work. Older Workers Summaries of each Roundtable are available from CED, as will a video presenting the issues CED has joined with the National Older Worker highlighted at each Roundtable. Career Center to form a standing coalition to On October 2, 2001, CED and MetLife develop an advocacy strategy around CED’s recom- also partnered on the release of the new 2001 mendations presented in the CED statement New Metropolitan Life Survey of the American Teacher in Opportunities for Older Workers (2000). The Coalition Washington, D.C. for Expanded Employment Opportunities consists of representatives from AARP, the National Association of Manufacturers, the Society for Human Resource Management, the National Governors Association, and the Urban Institute. In an effort to highlight the importance of this issue, Coalition members have met with Congressional leaders, representatives from the Departments of Labor and Health and Human Services, and the White House.

The September 23, 2001 Los Angeles Roundtable, conducted with the assistance of the Los Angeles New Project: CED will soon launch a new project Educational Partnership (LAEP), was held at KCET on access issues in higher education. Public Broadcasting. At the Roundtable, Susan Way-Smith, LAEP’s President and LAEP Chairman Johnny Griggs, Partner, Sidley Austin Brown & Wood.

10 60 YEARS OF THE BEST 2001 AWARDS, POLITICS, AND POLICIES

Merck Receives Corporate Manhattan Bank, First Chicago NBD Corporation, Citizenship Award Nortel Networks, and Pfizer. CED Honors Peter G. Peterson with In presenting CED’s Excellence in Public Excellence in Public Policy Award Policy Award to CED Trustee Peter G. Peterson, CED Chairman Frank P. At CED’s May 16, 2001 Doyle, retired Executive New York City annual Vice President of GE, dinner, Raymond V. said “The award we are Gilmartin, Chairman, presenting to Pete President, and Chief tonight is for an exem- Executive Officer of plary life of public and Merck & Co., Inc., private service.” Mr. accepted CED’s Peterson is Chairman of Corporate Citizenship The Blackstone Group Award on behalf of and former U.S. Merck and its employees. Secretary of Commerce,

The CED Corporate Raymond V. Gilmartin, Chairman, President, and CEO of Chairman of the Federal Merck & Co. accepts the CED Corporate Citizenship Citizenship Award is pre- Reserve Bank of New Award from Josh S. Weston, Honorary Chairman of sented annually to a Automatic Data Processing, Inc. York, Chairman of the company which pro- Council on Foreign motes active involvement in the Relations, Founding Chairman policy dialogue and a carefully of the Institute for International considered commitment to Economics, Founding President social and community responsi- of The Concord Coalition, and bility. In honoring Merck, CED author of Gray Dawn: How the highlighted Merck’s global phil- Coming Age Wave Will Transform anthropic efforts and its special America and the World. commitment to fighting AIDS in In accepting the award Mr. the developing world. Peterson said “I believe the Previous recipients of Committee for Economic CED’s Corporate Citizenship Development can play an ever Award include Automatic Data more vital role in charting Excellence in Public Policy Award Processing, Inc., The Chase recipient Peter G. Peterson. new ways to meet the world’s challenges.”

11 OF BUSINESS THINKING 2001 AWARDS, POLITICS, AND POLICIES

2001 Politics and Policies

Trustees and guests attending CED’s May 2001 Annual Meeting dis- cussed poli- tics and poli- cies with Heather Mac Donald of City Journal; Scott Harshbarger, President of Common Cause; John Fund of The Wall Street Journal; and Tish Durkin of the National Journal. The group also heard from Robert Thomson, New York Editor of the Financial Times.

Evan Thomas, Assistant Managing Editor of Newsweek and author of Robert Kennedy: His Life, gave his assessment of the first months of the Bush Administra- tion during a luncheon address.

New CED Research Director: CED has named Everett M. Ehrlich, for- mer Under Secretary of Commerce for Economic Affairs (left), its new Senior Vice President and Director of Research. On March 1, 2002, Dr. Ehrlich will suc- ceed Van Doorn Ooms (right) who has directed CED’s research program for 11 years. Dr. Ooms will continue to be involved in CED’s work as a part-time Senior Fellow.

12 60 YEARS OF THE BEST SELECTED RECENT FORUMS, BRIEFINGS, AND TESTIMONY

MetLife-CED Education Roundtables held in June 28, CED President Charles Kolb spoke at the Atlanta, February 7; Raleigh, March 22; New York Committee for Economic Development of Australia’s City, April 26; Los Angeles, September 23. (CEDA) 40th Anniversary celebrations in Sydney, Melbourne, and Canberra. January 19, CED Trustees met with Senator John McCain and Representative Lindsey Graham to In July and August, CED Trustee Paula Stern and discuss campaign finance reform. CED economist Elliot Schwartz briefed offices of Senators Daschle, Hagel, Kerry, Murkowski, and February 12, CED and Americans for Reform host- Bingaman and Representatives Crane, Dooley, Levin, ed a Town Hall forum at Northwestern University fea- and Matsui on CED’s trade recommendations. turing Senators John McCain and Russell Feingold. September 10-11, National Governors February 12, CED Trustee Ron Grzywinski Association/Education Commission of the Chairman of Shorebank Corporation, hosted a dis- States/CED Conference “Where There’s a Will: cussion on campaign finance reform for Chicago Promising Ways to Promote Early Childhood business leaders with Senators Russell Feingold and Development,” Washington, D.C. John McCain. October 19, CED and the Canadian E-Business February immigration briefings were held for Opportunities Roundtable Toronto conference business leaders in Silicon Valley and Seattle, hosted “The Private Sector’s Role in Creating Digital by CED Trustees Robert Chess, Chairman, Inhale Opportunities.” CED Trustee Carolyn Chin, Therapeutic Systems, Inc., and H.V. Jones, Office Chairman, Commtouch and Kindmark, spoke. Managing Director, Korn/Ferry International. October 23, CED and the World Affairs Council of March 21, release of Reforming Immigration. Northern California trade and environment events in San Francisco and at Hewlett-Packard in San Jose. In March, CED President Charles Kolb authored Discussions led by William D. Eberle, Chairman of an article on regulation in Memos to the President: Manchester Associates and former United States Management Advice from the Nation’s Top Public Trade Representative, and Sierra Club Executive Administrators, issued by The Pricewaterhouse- Director Carl Pope. Coopers Endowment for the Business of Government. November 8, New York City address by Steve Forbes, Editor-in-Chief of Forbes Magazine. May 9, CED-Japan Society jointly hosted lunch in New York City for CED Trustee Frederick W. Smith, November 15-16, 15th International Conference Chairman, President, and CEO of Federal Express. of Private Business Organizations, Tokyo, “Meeting the New Challenges of the 21st Century.” CED’s May 16 Annual Meeting in New York featured a joint CED-Canadian E-Business Opportunities Roundtable Forum on “The Digital Economy and North American Economic Growth.”

May 16, Presentation of CED Corporate Citizenship Award to Raymond V. Gilmartin, Chairman, President, and CEO of Merck; Excellence in Public Policy Award to Peter G. Peterson.

In June, Sara Lee Corporation Chairman John Bryan and former Quaker Oats CEO Robert Stuart co-hosted a Chicago lunch for business leaders on campaign finance reform.

June 18, Washington, D.C. reception for CED Edmund B. Fitzgerald, former Chairman and CEO of Nortel Trustee Philip K. Howard, Vice Chairman of (left), and Yotaro Kobayashi, Chairman of Fuji Xerox and Covington & Burling, to discuss his new book, Chairman of CED’s Japanese Counterpart Keizai Doyukai, in Tokyo. The Lost Art of Drawing the Line. 13

OF BUSINESS THINKING DEVELOPMENT AND FINANCIAL SUPPORT

Trustees remain the driving force behind CED’s successfully moving its fiscal year planning from a development efforts and leadership recruitment. 12 to a 24 month cycle. We entered 2002 with over Our Trustee network of business executives and $500,000 in pledged corporate support and academic leaders provides experience and exper- $845,000 committed in foundation grants. tise to CED’s policy programs and reaches out to In addition, new areas of support for CED are their industry and regional colleagues to partici- being explored. At the end of 2001, CED launched pate in and support CED’s work. a subscription program to the academic commun- CED would like to recognize and thank the ity, and the initial response has been positive. many Trustees and others who helped to broaden Trustee recruitment continues to be a priority, our corporate support, including: Thomas D. Bell, and under the leadership of Fredrick W. Telling of Jr., Forstmann Little; Peter A. Benoliel, Quaker Pfizer, 24 new Trustees joined the Board in 2001. Chemical; Roy J. Bostock, B/Com3; William E. For some, this is the first time their companies have Brock, Bridges LearningSystems; Gordon Brunner, been represented on CED’s Board — AIG, Owens Procter & Gamble; Frank C. Carlucci; Carolyn Corning, and Raytheon, for example. Other new Chin, Commtouch and Kindmark; George H. Trustees represent our long-standing corporate Conrades, Akamai Technologies; T.J. Dermot partners, including American Home Products; Dunphy, Kildare Enterprises; Jerome H. Grossman, ChevronTexaco; Corning; ExxonMobil; IBM; State Lion Gate Management; Ronald Grzywinski, Street Bank; and TRW. A complete listing appears Shorebank; William F. Hecht, PPL Corporation; on page 17. Matina S. Horner, TIAA-CREF; Edward A. Kangas, CED is also leading a major effort to engage Deloitte Touche Tohmatsu; Kurt M. Landgraf, key colleges and universities through Trustee repre- Educational Testing Service; Charles R. Lee, sentation. Throughout its history, CED has been Verizon Communications; Michael Lockhart, proud to count as Trustees the presidents of many Armstrong World Industries; Robert J. O’Toole, of the nation’s leading institutions of higher educa- A.O. Smith Corporation; Steffen E. Palko, XTO tion. This tradition will continue in 2002. Energy; Edward B. Rust, Jr., State Farm Insurance Advisory Councils have been established to Companies; Stephen W. Sanger, General Mills, Inc.; help CED gain the input of additional company Paula Stern, The Stern Group; Donald M. Stewart, representatives, build on its Trustee-led research, The Chicago Community Trust; Frederick W. and guide future outreach and programming activi- Telling, Pfizer Inc.; James L. Vincent, Biogen, Inc.; ties. A Digital Connections Council has been Josh S. Weston, Automatic Data Processing, Inc.; launched to focus on CED’s work in e-commerce Clifton R. Wharton, Jr., TIAA-CREF; Michael W. (see membership page 23), and a Human Wickham, Roadway Express, Inc.; and Kurt Yeager, Resources Council will be established in 2002 to Electric Power Research Institute. Our special address workforce issues, including health care. appreciation goes to CED Chairman Frank P. Doyle CED’s Annual Dinner provided important for his exceptional leadership of the development support to the organization. The 2001 Corporate campaign. Citizenship Award was presented to Merck & Co., Support for CED in 2001 remained constant — Inc. and accepted by its Chairman, President, and corporate and personal contributions were on par CEO, Ray Gilmartin. Merck was recognized for its with the previous year. Program grants were strong exceptional efforts addressing global health, as well in the areas of education, health care, and e-com- as its commitment to education and community merce. Support for campaign finance reform, how- revitalization. The 2001 Excellence in Public ever, began to decrease as this program entered its Policy Award was presented to Peter G. Peterson, last phase. New funding for current and future work Chairman of The Blackstone Group for his many in education, e-commerce, health care, judicial selec- distinguished years of service in the public sector tion, and globalization is now being sought. and for his role as a well-respected national busi- We are also pleased to report that CED is ness leader.

14 60 YEARS OF THE BEST CED SUPPORTERS

American Management Classroom Connect CED thanks its supporters Systems, Inc. Compaq Computer Corporation Armstrong Holdings, Inc. George H. Conrades for their generous contribu- Biogen, Inc. Consolidated Edison Co. of NY, Inc. tions and grants, which Brown Brothers Harriman & Co. Covington & Burling Caterpillar Inc. Crain’s New York Business enable us to pursue a Chevron Corporation Cross Atlantic Capital Partners dynamic agenda, focused on CIGNA Corporation CSX Corporation Ferdinand Colloredo-Mansfeld The Dow Chemical Company today’s most significant eco- Deere & Company El Paso Energy Corp. nomic and social issues. The Frank P. Doyle Elan Corporation Educational Testing Service Electric Power Research Institute list below represents CED’s Fannie Mae Harry L. Freeman major supporters. Federal Express Corporation Frontline Group Edmund B. Fitzgerald GlaxoSmithKline Joseph Gantz The Goldman Sachs Group, Inc. $50,000 and over General Motors Corporation Alfred Goldstein Automatic Data Processing, Inc. The Goodyear Tire & Granite Broadcasting Corp. Exxon Mobil Corporation Rubber Company Jerome H. Grossman Ford Motor Company Guardsmark, Inc. The Guardian Life Insurance GE Fund The Home Depot, Inc. Company of America Merck & Co., Inc. Johnson & Johnson Harman International The MetLife Foundation Manpower Inc. Industries, Inc. J.P. Morgan Chase & Co. McKinsey & Company, Inc. Roderick M. Hills Nortel Networks Corporation Harvey R. Miller Household International, Inc. Pfizer Inc. Morgan Stanley Dean Witter Human Genome Sciences, Inc. The Prudential Insurance Co. & Company Robert J. Hurst of America The New York Community Trust Inhale Therapeutic Systems, Inc. State Farm Insurance Companies New York Stock Exchange, Inc. James A. Johnson Verizon Communications Pacific Life Insurance Company Korn/Ferry International Philip Morris Companies Inc. Robert W. Lundeen $20,000 to $49,999 PPL Corporation Marsh, Inc. American International Group Quaker Chemical Corporation McDonald’s Corporation B/Com3 Group, Inc. Raytheon Company Perseus Capital, LLC The Blackstone Group Rensselaer Polytechnic Institute Donald K. Peterson The Boeing Company Sara Lee Corporation Publix Super Markets Bristol-Myers Squibb Company Sealed Air Corporation Charities, Inc. Citigroup Inc. The Shorenstein Company Rose Associates, Inc. DaimlerChrysler Corporation Stilwell Financial Inc. Sallie Mae Deloitte Touche Tohmatsu Target Corporation Sheridan Broadcasting Corporation Enron Corporation TRW Inc. Roger W. Stone Forstmann Little & Company Tyco International Ltd. TIAA-CREF General Mills, Inc. United Parcel Service U.S. Bancorp Thomas J. Klutznick Company Weil, Gotshal & Manges Unisys Corporation Merrill Lynch & Co., Inc. Xerox Corporation Robert C. Waggoner The Procter & Gamble Company Arnold R. Weber Public Service Enterprise $5,000 to $9,999 Sidney J. Weinberg Group Inc. Alberto-Culver Company Weyerhaeuser Company Roadway Express, Inc. Ian Arnof Frank Russell Company Avaya Inc. $2,500 to $4,999 UBS PaineWebber Incorporated AXA Financial Inc. Avenir Group, Inc. Josh S. Weston Peter Benoliel BB&T Corporation XTO Energy Best Buy Company, Inc. Alan Belzer BET Holdings The Boston Consulting Group, Inc. $10,000 to $19,999 Black Enterprise Magazine H. E. Butt Grocery Company A. O. Smith Corporation Roy J. Bostock Frank C. Carlucci ABC, Inc. Donald R. Caldwell Corning Cable Systems American General Corporation Canadian E-Business Opportunities Corning Incorporated American Home Products Roundtable T. J. Dermot Dunphy Corporation Carolyn Chin Christopher D. Earl 15 OF BUSINESS THINKING CED SUPPORTERS

Equitable Resources, Inc. GreenPoint Financial Corp. Susquehanna Pfaltzgraff Co. Exelon Corporation Richard W. Hanselman The Mark Twain Institute The Gillette Company Health Quest 1 U.S. Trust Company of New York The Goldberg Family Foundation Healthcare Resources Group, Inc. University of Montana Grey Flannel Auctions The Hillman Company University of Nebraska Hershey Foods Corporation Holborn Corporation Medical Center Historic Restoration, Inc. Leon C. Holt The Vantage Group Hubbard Broadcasting HSBC Bank USA Western Industrial Contractors IKON Office Solutions IGA, INC. Dolores Wharton The Richard E. Jacobs Group InContext Data Systems, Inc. Wolfe Enterprises Inc. William C. Jennings Intermountain Gas Company Kemper Insurance Companies Charles E.M. Kolb Project Funders The Liberty Corporation C. Joseph LaBonte Arnof Family Foundation Marsh & McLennan Leviton Manufacturing (in memory of I.N. and Lucile Companies, Inc. Company, Inc. Arnof of McCrory, Arkansas) Nationwide William W. Lewis Carnegie Corporation of New York Todd E. Petzel Lion Gate Management FedEx Corporation The Pittston Company Corporation GE Fund Randall & Dewey, Inc. Bruce K. MacLaury The Joyce Foundation Randolph Foundation Colette Mahoney The MetLife Foundation Shure Incorporated The Marmon Group Inc. Charles Stewart Mott Foundation Alan G. Spoon Ellen R. Marram Nortel Networks The Stanley Works Oscar G. Mayer Open Society Institute Thomas Publishing Company Robert Mercer The David and Lucile Tyco Capital Ltd. Mitchell Energy & Development Packard Foundation The Vanguard Group Corporation The Pew Charitable Trusts Wachovia Corporation Monadnock Paper Mills, Inc. Quaker Chemical Corporation John C. Whitehead National Cooperative Refinery Roadway Express, Inc. Michael W. Wickham Association Smith Richardson Foundation Robert C. Winters Niagara Mohawk Power Stuart Family Foundation Corporation $2,499 and under Matthew Nimetz Endowments The Ackman-Ziff Real Estate North Carolina Farm Bureau Group LLC Mutual Insurance Company The Roy L. Ash Program in Alliant Energy Sandra Panem American Governance Amelior Foundation Carol J. Parry (given by Mr. Ash) Ameritas Life Insurance Corp. Carl H. Pforzheimer & Co. Appeal of Conscience Foundation Pharmaceutical Research and The Owen B. Butler Program Atlas Electric Devices Company Manufacturers of America in Education Studies (given by Baruch College Pharmacia Corporation Daiwa Securities Co., Ltd.) Henry P. Becton, Jr. Dean P. Phypers Belz Enterprises Raymond Plank The Edmund B. Fitzgerald Boston Properties, Inc. Edmund T. Pratt Program in International Studies John B. Cave Preformed Line Products Company (given by Northern Telecom) Central Bank S. L. Prendergast ChemFirst Inc. Hugh B. Price The Philip M. Klutznick CNF Inc. T. Rowe Price Associates, Inc. Program in Urban Studies Cooper Tire & Rubber Company James Q. Riordan (given by Mr. Klutznick) Country Companies E. B. Robinson, Jr. The Dickson Foundation Inc. William J. Ruder The Philip D. Reed Program John Diebold Inc. Edward B. Rust, Jr. in Energy and the Environment Irwin Dorros Scarbroughs (given by the Philip D. Reed W. D. Eberle Sea Island Company Foundation) Federal Reserve Bank Walter H. Shorenstein of Philadelphia John C. Siciliano FirstEnergy Corporation Rocco C. Siciliano Flushing Savings Bank Herbert D. Simons General Atlantic Partners Snap-on Incorporated Glass & Associates Stanley Consultants, Inc. Granite Construction Matthew J. Stover

16 60 YEARS OF THE BEST CED TRUSTEES

LINDA M. DISTLERATH VAN E. JOLISSAINT CED Trustees Vice President, Global Health Policy Corporate Economist President, The Merck Company DaimlerChrysler Corporation Elected 2001 Foundation Merck & Co., Inc. JOHN W. LOOSE President and Chief Executive Officer F. GREGORY AHERN WILLIAM H. DONALDSON Corning, Inc. Senior Vice President, External Affairs Former Chief Executive Officer MATTHEW NIMETZ State Street Corporation Aetna Partner DEREK BOK Founder, DLJ General Atlantic Partners President Emeritus PHILIP DUKE Harvard University RONALD L. OLSON Executive Vice President (retired) Chairman, Common Cause Partner Lockheed Martin Corporation TONY BUZZELLI Munger, Tolles & Olson ROBERT A. ESSNER Deputy Managing Partner JERRY PARROTT President and Chief Executive Officer Deloitte & Touche LLP Vice President, Corporate Communications American Home Products Human Genome Sciences, Inc. DARALD W. CALLAHAN Corporation Executive Vice President TODD E. PETZEL WILLIAM HENDERSON ChevronTexaco President and Chief Investment Officer Former Postmaster General KENNETH P. COHEN The Commonfund Asset Vice President Public Affairs GLEN J. HINER Management Co., Inc. Chairman and Chief Executive Officer Exxon Mobil Corporation DAVID A. SPINA Owens Corning DAVID M. COTE Chairman and Chief Executive Officer President and Chief Executive Officer PAUL M. HORN State Street Corporation TRW Inc. Senior Vice President, Research RICHARD WHEELER IBM Corporation THOMAS M. CULLIGAN Chief Executive Officer Executive Vice President, Business Development L. OAKLEY JOHNSON InContext Data Systems, Inc. Raytheon Company Senior Vice President, Corporate Affairs L. R. WILSON Chief Executive Officer American International Group Raytheon International, Inc. Chairman Nortel Networks Corporation

CED Trustees

Chairman REX D. ADAMS MELVYN E. BERGSTEIN Dean Chairman and Chief Executive Officer FRANK P. DOYLE The Fuqua School of Business Diamond Cluster International, Inc. Retired Executive Vice President Duke University GE DEREK BOK F. GREGORY AHERN President Emeritus Senior Vice President, External Affairs Harvard University Vice Chairmen State Street Corporation Chairman, Common Cause ROY J. BOSTOCK PAUL A. ALLAIRE ROY J. BOSTOCK Chairman, Executive Committee Chairman Chairman, Executive Committee B/Com3 Group, Inc. Xerox Corporation B/Com3 Group, Inc. DONALD R. CALDWELL IAN ARNOF JOHN BRADEMAS Chairman and Chief Executive Officer Retired Chairman President Emeritus Cross Atlantic Capital Partners Bank One, Louisiana, N.A. New York University GEORGE H. CONRADES JAMES S. BEARD WILLIAM E. BROCK Chairman and Chief Executive Officer President Chairman Akamai Technologies, Inc. Caterpillar Financial Services Corp. Bridges LearningSystems, Inc. RAYMOND V. GILMARTIN HENRY P. BECTON, JR. THOMAS J. BUCKHOLTZ Chairman, President and Chief Executive President and General Manager Executive Vice President Officer WGBH Educational Foundation Beyond Insight Corporation Merck & Co., Inc. THOMAS D. BELL, JR. MICHAEL BUNGEY JAMES A. JOHNSON Special Limited Partner Chairman and Chief Executive Officer Chairman and Chief Executive Officer Forstmann Little & Co. Bates Worldwide Inc. Johnson Capital Partners ALAN BELZER TONY BUZZELLI ARTHUR F. RYAN Retired President and Chief Operating Deputy Managing Partner Chairman and Chief Executive Officer Officer Deloitte & Touche LLP The Prudential Insurance Company AlliedSignal Inc. of America *FLETCHER L. BYROM PETER A. BENOLIEL President and Chief Executive Officer FREDERICK W. TELLING Chairman, Executive Committee MICASU Corporation Vice President Corporate Strategic Planning Quaker Chemical Corporation and Policy Division Pfizer Inc. *Life Trustee 17 OF BUSINESS THINKING CED TRUSTEES

DONALD R. CALDWELL JOHN DIEBOLD JOSEPH GANTZ Chairman and Chief Executive Officer Chairman Partner Cross Atlantic Capital Partners John Diebold Incorporated GG Capital, LLC DARALD W. CALLAHAN LINDA M. DISTLERATH E. GORDON GEE Executive Vice President Vice President, Global Health Policy Chancellor ChevronTexaco President, The Merck Company Vanderbilt University Foundation FRANK C. CARLUCCI Merck & Co., Inc. THOMAS P. GERRITY Washington, D.C. Dean Emeritus WILLIAM H. DONALDSON The Wharton School JOHN B. CAVE Former Chief Executive Officer University of Pennsylvania Principal Aetna Avenir Group, Inc. Founder, DLJ RAYMOND V. GILMARTIN Chairman, President and Chief Executive JOHN S. CHALSTY IRWIN DORROS Officer Senior Advisor President Merck & Co., Inc. Credit Suisse First Boston Dorros Associates FREDERICK W. GLUCK RAYMOND G. CHAMBERS FRANK P. DOYLE Of Counsel Chairman of the Board Retired Executive Vice President McKinsey & Company, Inc. Amelior Foundation GE CAROL R. GOLDBERG ROBERT CHESS E. LINN DRAPER, JR. President Chairman Chairman, President and Chief Executive The AvCar Group, Ltd. Inhale Therapeutic Systems, Inc. Officer American Electric Power Company ALFRED G. GOLDSTEIN CAROLYN CHIN President and Chief Executive Officer Chairman, Commtouch PHILIP DUKE AG Associates Chairman, Kindmark Executive Vice President (retired) *JOHN L. CLENDENIN Lockheed Martin Corporation JOSEPH T. GORMAN Retired Chairman Retired Chairman BellSouth Corporation T. J. DERMOT DUNPHY TRW Inc. Chairman KENNETH P. COHEN Kildare Enterprises, LLC RICHARD A. GRASSO Vice President Public Affairs Chairman and Chief Executive Officer Exxon Mobil Corporation CHRISTOPHER D. EARL New York Stock Exchange, Inc. Managing Director FERDINAND COLLOREDO- Perseus Capital, LLC EARL G. GRAVES, SR. MANSFELD Publisher and Chief Executive Officer Chairman and Chief Executive Officer W. D. EBERLE Black Enterprise Magazine Cabot Industrial Trust Chairman Manchester Associates, Ltd. WILLIAM H. GRAY, III GEORGE H. CONRADES President and Chief Executive Officer Chairman and Chief Executive Officer WILLIAM T. ESREY The College Fund Akamai Technologies, Inc. Chairman and Chief Executive Officer Sprint GERALD GREENWALD JAMES P. CORCORAN Chairman Emeritus Executive Vice President, Government & ROBERT A. ESSNER UAL Corporation Industry Relations President and Chief Executive Officer BARBARA B. GROGAN American General Corporation American Home Products Corporation President Western Industrial Contractors DAVID M. COTE KATHLEEN FELDSTEIN President and Chief Executive Officer President PATRICK W. GROSS TRW Inc. Economics Studies, Inc. Founder and Chairman, Executive RONALD E. FERGUSON Committee STEPHEN A. CRANE American Management Systems, Inc. Chairman, President and Chief Executive Chairman, President and Chief Executive Officer Officer JEROME H. GROSSMAN Stirling Cooke Brown Holdings Limited General RE Corporation Chairman and Chief Executive Officer Lion Gate Management Corporation THOMAS M. CULLIGAN E. JAMES FERLAND Executive Vice President, Business Development Chairman, President and Chief Executive RONALD GRZYWINSKI Raytheon Company Officer Chairman Chief Executive Officer Public Service Enterprise Group Inc. Shorebank Corporation Raytheon International, Inc. *EDMUND B. FITZGERALD JUDITH H. HAMILTON RONALD R. DAVENPORT Managing Director President and Chief Executive Officer Chairman of the Board Woodmont Associates Classroom Connect Sheridan Broadcasting Corporation HARRY L. FREEMAN WILLIAM A. HASELTINE JOHN T. DEE Chair Chairman and Chief Executive Officer Chairman and Chief Executive Officer The Mark Twain Institute Human Genome Sciences, Inc. Volume Services America MITCHELL S. FROMSTEIN WILLIAM F. HECHT ROBERT M. DEVLIN Chairman Emeritus Chairman, President and Chief Executive Former Chairman and Chief Executive Officer Manpower Inc. Officer American General Corporation PPL Corporation

*Life Trustee 18 60 YEARS OF THE BEST WILLIAM HENDERSON PRES KABACOFF DEBORAH HICKS MIDANEK Former Postmaster General President and Co--Chairman Principal Historic Restoration, Inc. Glass & Associates, Inc. JOSEPH D. HICKS Retired President and Chief Executive Officer EDWARD A. KANGAS HARVEY R. MILLER Siecor Corporation Chairman and Chief Executive Officer Senior Partner (retired) Weil, Gotshal & Manges HEATHER HIGGINS Deloitte Touche Tohmatsu President NICHOLAS G. MOORE Randolph Foundation JOSEPH E. KASPUTYS Chairman Emeritus Chairman, President and Chief Executive PricewaterhouseCoopers STEVEN R. HILL Officer Senior Vice President, Human Resources Global Insight, Inc. DIANA S. NATALICIO Weyerhaeuser Company President THOMAS J. KLUTZNICK The University of Texas at El Paso RODERICK M. HILLS President Chairman Thomas J. Klutznick Company MARILYN CARLSON NELSON Hills Enterprises, Ltd. Chairman, President and Chief Executive CHARLES F. KNIGHT Officer GLEN J. HINER Chairman Carlson Companies, Inc. Chairman and Chief Executive Officer Emerson Electric Co. Owens Corning MATTHEW NIMETZ CHARLES E.M. KOLB Partner HAYNE HIPP President General Atlantic Partners President and Chief Executive Officer Committee for Economic Development The Liberty Corporation THOMAS H. O’BRIEN ALLEN J. KROWE Chairman of the Executive Committee DEBORAH C. HOPKINS Retired Vice Chairman PNC Financial Services Group, Inc. Former Executive Vice President and Chief Texaco Inc. Financial Officer DEAN R. O’HARE Lucent Technologies C. JOSEPH LABONTE Chairman and Chief Executive Officer Chairman Chubb Corporation PAUL M. HORN The Vantage Group Senior Vice President, Research RONALD L. OLSON IBM Corporation KURT M. LANDGRAF Partner President and Chief Executive Officer Munger, Tolles & Olson MATINA S. HORNER Educational Testing Service Executive Vice President ROBERT J. O’TOOLE TIAA-CREF CHARLES R. LEE Chairman and Chief Executive Officer Chairman and Co-Chief Executive Officer A.O. Smith Corporation PHILIP K. HOWARD Verizon Communications Vice Chairman STEFFEN E. PALKO Covington & Burling WILLIAM W. LEWIS Vice Chairman and President Director, McKinsey Global Institute XTO Energy Inc. ROBERT J. HURST McKinsey & Company, Inc. Vice Chairman SANDRA PANEM The Goldman Sachs Group, Inc. IRA A. LIPMAN Partner Chairman of the Board and President Cross Atlantic Partners, Inc. SHIRLEY ANN JACKSON Guardsmark, Inc. President JERRY PARROTT Rensselaer Polytechnic Institute JOHN W. LOOSE Vice President, Corporate Communications President and Chief Executive Officer Human Genome Sciences, Inc. WILLIAM C. JENNINGS Corning, Inc. Chairman CAROL J. PARRY US Interactive, Inc. BRUCE K. MACLAURY President President Emeritus Corporate Social Responsibility JEFFREY A. JOERRES The Brookings Institution Associates President and Chief Executive Officer Manpower Inc. COLETTE MAHONEY VICTOR A. PELSON President Emeritus Senior Advisor JAMES A. JOHNSON Marymount Manhattan College UBS Warburg LLC Chairman and Chief Executive Officer Johnson Capital Partners ELLEN R. MARRAM DONALD K. PETERSON Partner President and Chief Executive Officer L. OAKLEY JOHNSON North Castle Partners Avaya Inc. Senior Vice President, Corporate Affairs American International Group ALONZO L. MCDONALD PETER G. PETERSON Chairman and Chief Executive Officer Chairman ROBERT M. JOHNSON Avenir Group, Inc. The Blackstone Group Chairman and Chief Executive Officer Bowne & Co., Inc. EUGENE R. MCGRATH TODD E. PETZEL Chairman, President and Chief Executive President and Chief Investment Officer VAN E. JOLISSAINT Officer The Commonfund Asset Corporate Economist Consolidated Edison Company of Management Co., Inc. DaimlerChrysler Corporation New York, Inc. RAYMOND PLANK H.V. JONES DAVID E. MCKINNEY Chairman and Chief Executive Officer Office Managing Director President Apache Corporation Korn/Ferry International The Metropolitan Museum of Art *Life Trustee 19 OF BUSINESS THINKING CED TRUSTEES

ARNOLD B. POLLARD *GEORGE P. SHULTZ THOMAS J. TIERNEY President and Chief Executive Officer Distinguished Fellow Founder The Chief Executive Group The Hoover Institution The Bridgespan Group Stanford University HUGH B. PRICE STOKLEY P. TOWLES President and Chief Executive Officer JOHN C. SICILIANO Partner National Urban League Director, Global Institutional Services Brown Brothers Harriman & Co. Dimensional Fund Advisors NED REGAN STEPHEN JOEL TRACHTENBERG President RUTH J. SIMMONS President Baruch College President George Washington University Brown University WILLIAM R. RHODES JAMES L. VINCENT Vice Chairman FREDERICK W. SMITH Chairman Citigroup Inc. Chairman, President and Chief Executive Biogen, Inc. Officer JAMES Q. RIORDAN Federal Express Corporation DONALD C. WAITE, III Director Director Quentin Partners Co. JOHN F. SMITH, JR. McKinsey & Company, Inc. Chairman E. B. ROBINSON, JR. General Motors Corporation HERMINE WARREN Chairman Emeritus President Deposit Guaranty Corporation DAVID A. SPINA Hermine Warren Associates, Inc. Chairman and Chief Executive Officer ROY ROMER State Street Corporation ARNOLD R. WEBER Former Governor of Colorado President Emeritus Superintendent ALAN G. SPOON Northwestern University Los Angeles Unified School District Managing General Partner Polaris Ventures JOHN F. WELCH, JR. DANIEL ROSE Chairman and Chief Executive Officer (retired) Chairman STEPHEN STAMAS GE Rose Associates, Inc. Chairman The American Assembly JOSH S. WESTON HOWARD M. ROSENKRANTZ Honorary Chairman Chief Executive Officer JOHN L. STEFFENS Automatic Data Processing, Inc. Grey Flannel Auctions Managing Director Spring Mountain Capital CLIFTON R. WHARTON, JR. LANDON H. ROWLAND Former Chairman and Chief Executive Officer Chairman, President and Chief Executive PAULA STERN TIAA-CREF Officer President Stilwell Financial Inc. The Stern Group, Inc. DOLORES D. WHARTON Former Chairman and Chief Executive Officer NEIL L. RUDENSTINE DONALD M. STEWART The Fund for Corporate Initiatives, Inc. Chair, ArtStor Advisory Board President and Chief Executive Officer The Andrew Mellon Foundation The Chicago Community Trust RICHARD WHEELER Chief Executive Officer GEORGE RUPP ROGER W. STONE InContext Data Systems, Inc. President Chairman and Chief Executive Officer Columbia University Box USA Group, Inc. MICHAEL W. WICKHAM Chairman and Chief Executive Officer GEORGE F. RUSSELL, JR. MATTHEW J. STOVER Roadway Express, Inc. Chairman President Frank Russell Company LKM Ventures HAROLD M. WILLIAMS President Emeritus EDWARD B. RUST, JR. RICHARD J. SWIFT The J. Paul Getty Trust Chairman and Chief Executive Officer Chairman, President and Chief Executive State Farm Insurance Companies Officer J. KELLEY WILLIAMS Foster Wheeler Corporation Chairman and Chief Executive Officer ARTHUR F. RYAN ChemFirst Inc. Chairman and Chief Executive Officer RICHARD F. SYRON The Prudential Insurance Company President and Chief Executive Officer L. R. WILSON of America Thermo Electron Corporation Chairman Nortel Networks Corporation MARGUERITE W. SALLEE HENRY TANG Chairman and Chief Executive Officer Chairman LINDA SMITH WILSON Brown Schools Committee of 100 President Emerita Radcliffe College STEPHEN W. SANGER FREDERICK W. TELLING Chairman and Chief Executive Officer Vice President Corporate Strategic Planning MARGARET S. WILSON General Mills, Inc. and Policy Division Chairman and Chief Executive Officer Pfizer Inc. Scarbroughs MICHAEL M. SEARS Senior Vice President and Chief Financial JAMES A. THOMSON KURT E. YEAGER Officer President and Chief Executive Officer President and Chief Executive Officer The Boeing Company RAND Electric Power Research Institute WALTER H. SHORENSTEIN CHANG-LIN TIEN MARTIN B. ZIMMERMAN Chairman of the Board NEC Distinguished Professor of Engineering Vice President, Governmental Affairs The Shorenstein Company Emeritus Ford Motor Company University of California, Berkeley *Life Trustee 20 60 YEARS OF THE BEST CED HONORARY TRUSTEES

RAY C. ADAM ALFRED C. DECRANE, JR. LEON C. HOLT, JR. Retired Chairman Retired Chairman and Chief Executive Retired Vice Chairman NL Industries Officer Air Products and Chemicals, Inc. Texaco, Inc. O. KELLEY ANDERSON SOL HURWITZ Boston, Massachusetts ROBERT R. DOCKSON Retired President Chairman Emeritus Committee for Economic Development ROBERT O. ANDERSON CalFed, Inc. Retired Chairman GEORGE F. JAMES Hondo Oil & Gas Company LYLE EVERINGHAM Ponte Vedra Beach, Florida Retired Chairman ROY L. ASH The Kroger Co. DAVID KEARNS Los Angeles, California Chairman Emeritus THOMAS J. EYERMAN New American Schools SANFORD S. ATWOOD Retired Partner President Emeritus Skidmore, Owings & Merrill GEORGE M. KELLER Emory University Chairman of the Board, Retired JOHN T. FEY Chevron Corporation ROBERT H. B. BALDWIN Park City, Utah Retired Chairman FRANKLIN A. LINDSAY Morgan Stanley Group Inc. JOHN M. FOX Retired Chairman Sapphire, North Carolina Itek Corporation GEORGE F. BENNETT Chairman Emeritus DON C. FRISBEE ROY G. LUCKS State Street Investment Trust Chairman Emeritus San Francisco, California PacifiCorp HAROLD H. BENNETT ROBERT W. LUNDEEN Salt Lake City, Utah RICHARD L. GELB Retired Chairman Chairman Emeritus The Dow Chemical Company JACK F. BENNETT Bristol-Myers Squibb Company Retired Senior Vice President IAN MACGREGOR Exxon Corporation W. H. KROME GEORGE Retired Chairman Retired Chairman AMAX Inc. HOWARD W. BLAUVELT ALCOA Keswick, Virginia RICHARD B. MADDEN WALTER B. GERKEN Retired Chairman and Chief Executive MARVIN BOWER Chairman, and Chief Executive Officer Officer Delray Beach, Florida (Retired) Potlatch Corporation Pacific Life Insurance Company ALAN S. BOYD FRANK L. MAGEE Lady Lake, Florida LINCOLN GORDON Stahlstown, Pennsylvania ANDREW F. BRIMMER Guest Scholar The Brookings Institution AUGUSTINE R. MARUSI President Lake Wales, Florida Brimmer & Company, Inc. JOHN D. GRAY WILLIAM F. MAY HARRY G. BUBB Chairman Emeritus Hartmarx Corporation Chairman and Chief Executive Officer Chairman Emeritus Statue of Liberty-Ellis Island Pacific Mutual Life Insurance JOHN R. HALL Foundation, Inc. PHILIP CALDWELL Retired Chairman Ashland Inc. OSCAR G. MAYER Chairman (Retired) Retired Chairman Ford Motor Company RICHARD W. HANSELMAN Oscar Mayer & Co. HUGH M. CHAPMAN Chairman Health Net Inc. GEORGE C. MCGHEE Retired Chairman Former U.S. Ambassador and Under NationsBank South ROBERT A. HANSON Secretary of State E. H. CLARK, JR. Retired Chairman Deere & Company JOHN F. MCGILLICUDDY Chairman and Chief Executive Officer Retired Chairman and Chief Executive The Friendship Group ROBERT S. HATFIELD Officer A.W. CLAUSEN Retired Chairman Chemical Banking Corporation The Continental Group, Inc. Retired Chairman and Chief Executive JAMES W. MCKEE, JR. Officer ARTHUR HAUSPURG Retired Chairman BankAmerica Corporation Member, Board of Trustees CPC International, Inc. DOUGLAS D. DANFORTH Consolidated Edison Company of New York, Inc. CHAMPNEY A. MCNAIR Executive Associates Retired Vice Chairman JOHN H. DANIELS PHILIP M. HAWLEY Trust Company of Georgia Retired Chairman and Chief Executive Retired Chairman of the Board Carter Hawley Hale Stores, Inc. J. W. MCSWINEY Officer Retired Chairman of the Board Archer-Daniels Midland Co. ROBERT C. HOLLAND The Mead Corporation Senior Fellow RALPH P. DAVIDSON ROBERT E. MERCER Washington, D.C. The Wharton School University of Pennsylvania Retired Chairman The Goodyear Tire & Rubber Co.

21 OF BUSINESS THINKING CED HONORARY TRUSTEES

RUBEN F. METTLER RALPH S. SAUL WAYNE E. THOMPSON Retired Chairman and Chief Executive Former Chairman of the Board Past Chairman Officer CIGNA Companies Merritt Peralta Medical Center TRW Inc. GEORGE A. SCHAEFER THOMAS A. VANDERSLICE LEE L. MORGAN Retired Chairman of the Board TAV Associates Former Chairman of the Board Caterpillar, Inc. Caterpillar, Inc. JAMES E. WEBB ROBERT G. SCHWARTZ Washington, D.C. ROBERT R. NATHAN New York, New York Chairman SIDNEY J. WEINBERG, JR. Nathan Associates, Inc. MARK SHEPHERD, JR. Senior Director Retired Chairman The Goldman Sachs Group, Inc. J. WILSON NEWMAN Texas Instruments, Inc. Retired Chairman ROBERT C. WINTERS Dun & Bradstreet Corporation ROCCO C. SICILIANO Chairman Emeritus Beverly Hills, California Prudential Insurance Company JAMES J. O’CONNOR of America Former Chairman and Chief Executive ELMER B. STAATS Officer Former Controller General of the ARTHUR M. WOOD Unicom Corporation United States Chicago, Illinois LEIF H. OLSEN FRANK STANTON RICHARD D. WOOD President Former President Director LHO GROUP CBS, Inc. Eli Lilly and Company NORMA PACE EDGAR B. STERN, JR. CHARLES J. ZWICK President Chairman of the Board Coral Gables, Florida Paper Analytics Associates Royal Street Corporation CHARLES W. PARRY ALEXANDER L. STOTT Retired Chairman Fairfield, Connecticut ALCOA WILLIAM R. PEARCE Director American Express Mutual Funds JOHN H. PERKINS CED Research Advisory Board Former President Continental Illinois National Bank and Trust Company Chairman RUDOLPH A. PETERSON President and Chief Executive Officer JOHN P. WHITE (Emeritus) Lecturer in Public Policy BankAmerica Corporation John F. Kennedy School of Government Harvard University DEAN P. PHYPERS New Canaan, Connecticut JAGDISH BHAGWATI HELEN F. LADD EDMUND T. PRATT, JR. Arthur Lehman Professor of Economics Professor of Public Policy Studies and Retired Chairman and Chief Executive Columbia University Economics Officer Sanford Institute of Public Policy Pfizer Inc. RALPH D. CHRISTY Duke University J. Thomas Clark Professor ROBERT M. PRICE Department of Agricultural, Resource, ROBERT LITAN Former Chairman and Chief Executive and Managerial Economics Vice President, Director of Economic Studies Officer Cornell University The Brookings Institution Control Data Corporation ALAIN C. ENTHOVEN PAUL ROMER R. STEWART RAUCH Marriner S. Eccles Professor of Public and STANCO 25 Professor of Economics Former Chairman Private Management Stanford University Graduate School The Philadelphia Savings Fund Society Stanford University Graduate School of Business of Business JAMES J. RENIER CECILIA E. ROUSE Renier & Associates BENJAMIN M. FRIEDMAN Professor of Economics and Public Affairs William Joseph Maier Professor of Political Woodrow Wilson School IAN M. ROLLAND Economy Princeton University Former Chairman and Chief Executive Harvard University Officer DAVID WESSEL Lincoln National Corporation ROBERT W. HAHN Assistant Bureau Chief/Columnist Resident Scholar The Wall Street Journal AXEL G. ROSIN American Enterprise Institute Retired Chairman Book-of-the-Month Club, Inc. WILLIAM M. ROTH Princeton, New Jersey

22 60 YEARS OF THE BEST Digital Connections Council

HARRIET EDELMAN LARRY JACKEL GLEN SALOW Senior Vice President and Chief Information Senior Vice President Chief Information Officer Officer AT&T Corporation American Express Avon Products RAY JORDAN KATHERINE SULLIVAN WILLIAM FRIEL Vice President, Communications Chief Operating Officer Vice President and Information e-Citi (Citigroup) The Prudential Insurance Company Pfizer Inc. of America PAUL TURNER CAMPBELL LANGDON Executive Vice President and Chief MARK GULLING Corporate Vice President, Strategic Technology Officer Chief Information Officer Development American Management Systems, Inc. Eastman Kodak Company Automatic Data Processing, Inc. COLLIN WATSON EDWARD HOROWITZ PAUL MANKIEWICH Senior Vice President, e-business Chairman Lucent Technologies KeySpan Energy EdsLink HILARIE ORMAN RICHARD HOWARD Chief Software Architect Senior Vice President, (retired) Volera Lucent Technologies

CED Professional and Administrative Staff

CHARLES E.M. KOLB President

Research Communications/Government Relations Development VAN DOORN OOMS CLAUDIA P. FEUREY MARTHA E. HOULE Senior Vice President and Director of Research Vice President for Communications and Vice President for Development and Secretary Corporate Affairs of the Board of Trustees JANET HANSEN Vice President and Director of Education MICHAEL J. PETRO GLORIA Y. CALHOUN Studies Vice President and Director of Business and Development Assistant Government Policy and Chief of Staff ELLIOT SCHWARTZ CAROLINA LOPEZ Vice President and Director of Economic CHRIS DREIBELBIS Manager, Development Studies Business and Government Policy Associate SANDRA L. MARTINEZ ALEXANDRA BEATTY VALERIE MENDELSOHN Development Associate Senior Project Director for Education Conference Manager and Secretary of the Research and Policy Committee RICHARD M. RODERO MICHAEL BERG Director of Development Research Associate THOMAS NELSON Public Affairs and Communications JEFF LOESEL Manager Finance and Administration Research Associate KAREN CASTRO CHRISTINE RYAN Director of Finance and Administration NORA LOVRIEN Public Affairs Associate Research Associate HOOJU CHOI ROBIN SAMERS Database Administrator Assistant Director of Communications Advisor on International SHARON A. FOWKES Economic Policy Executive Assistant to the President ISAIAH FRANK ARLENE M. MURPHY William L. Clayton Professor of International Economics Executive Assistant to the President and The Johns Hopkins University Office Manager DENISE SMITH Finance and Administration Assistant AMANDA TURNER Office Manager

23 OF BUSINESS THINKING CED Counterpart Organizations

Close relations exist between the Committee for Economic Development and independent, nonpolitical research organiza- tions in other countries. Such counterpart groups are composed of business executives and scholars and have objectives similar to those of CED, which they pursue by similarly objective methods. CED cooperates with these organizations on research and study projects of common interest to the various countries concerned.

CE Circulo de Empresarios Madrid, Spain

CEAL Consejo Empresario de America Latina Buenos Aires, Argentina

CEDA Committee for Economic Development of Australia Sydney, Australia

EVA Centre for Finnish Business and Policy Studies Helsinki, Finland

FAE Forum de Administradores de Empresas Lisbon, Portugal

FDE Belgian Enterprise Foundation Brussels, Belgium

IDEP Institut de l’Entreprise Paris, France

IW Institut der deutschen Wirtschaft Köln Cologne, Germany

Keizai Doyukai Tokyo, Japan

SMO Stichting Maatschappij en Onderneming The Netherlands Committee for Economic Development SNS Center for Business and Policy Studies Stockholm, Sweden 477 Madison Avenue New York, New York 10022 (Telephone) 212-688-2063 (Fax) 212-758-9068

2000 L Street, N.W., Suite 700 Washington, D.C. 20036 (Telephone) 202-296-5860 (Fax) 202-223-0776

www.ced.org