1775 Massachusetts Avenue NW Washington, DC 20036 www.brookings.edu BROOKINGS

QUALITY. INDEPENDENCE. IMPACT. Annual Report 2015 Convening Power BROOKINGS PHOTO BY PAUL MORIGI Senior policymakers from across the political spectrum and heads of state from across the world choose Brookings for policy speeches. Why? Because they know that they will be speaking to a well- informed, engaged, and influential . They know that Brookings is a place where rigorous research and practical policy prescriptions, not ideological agendas, drive the debate. Brookings’s commitment to independence and academic freedom helps create an atmosphere where good ideas can thrive. This convening power is an important part of what makes Brookings a valuable resource for policymakers, journalists, and the public. 1 Co-Chairs’ Message President’s Message

little more than a century ago, when or institutions as well as individuals, milestone anniversaries focus the mind on the past our original predecessors set about and the future. What have we accomplished? What have we learned? What are our goals creating the Institution we serve going forward? What adjustments are necessary to meet those goals? As Brookings marks today, their first step was to put in its centenary in 2016, all of us—Trustees, scholars, and staff—are taking stock. We’re writing their aspirations, values, a determined to keep faith with our founders’ conviction that independent, nonpartisan Abusiness plan, and an agenda. F research contributes to the efficacy of governance. In March 1916, after a year and a half of Since their time, the world has become vastly more complicated and interdependent. The same deliberation, they issued publicly an eight-page has happened to governance itself. Burgeoning and innovative technology, the communications prospectus for a scholarly institute, supported revolution, and globalization have empowered non-governmental organizations and non-state and overseen by “an association of citizens,” actors ranging in purpose from humanitarian relief and universal education to terrorism and piracy. that would “promote efficiency in government Brookings scholars have studied this phenomenon and recommended ways to bolster its upside and PHOTO BY KATHERINE LAMBERT KATHERINE BY PHOTO and advance the science of administration.” deal with its downside. MORIGI PAUL BY PHOTO They stressed the need to promulgate the We’ve grown substantially in recent years, enabling us to take on these and other new challenges, findings and recommendations in order to engage and influence “active public interest.” They also deepen and broaden our research, and expand our outreach to—and engagement with—new vowed to avoid “propaganda” and to stick to fact-based research and objective analysis. The Trustees audiences, constituencies, communities of thought-leaders, and partnerships. assigned themselves the responsibility “to vouch before the public for the integrity of the enterprise While managing this growth and evolution, we’ve done our best to hew to the vision, values, and and its freedom from the slightest political bias.” ideals of the founders: the highest intellectual standards, insulation from outside pressures, and the The group included reformist and philanthropic leaders from the world of business and finance, relevance of our work to the major issues of the day. In short: Quality, Independence, Impact. some with experience in government. There were also five presidents of major universities and the That motto won’t change, nor will our fealty to it. What will change, inevitably and to good chairman of the board of Washington University in St. Louis—Robert S. Brookings. Those members effect, is how we carry our legacy into our second century. Some of those changes are already in particular were adamant that, in addition to institutional independence, the Institution they underway. For example, the Brookings Press still publishes dozens of titles a year, but now the created would guarantee academic freedom for its scholars. That principle, too, was incorporated into product is often in digital format. Much of our output has migrated to our website, where it is free the prospectus. to all, instantaneously. Social media, such as Twitter and Facebook, has allowed our scholars to be That document—conceived and authored by the Trustees before there were bricks and mortar heard—and to hear other voices—in what is now a global conversation. and before the first scholars were hired—was, in effect, the founding strategic plan for what the We, along with our Trustees, are also committed to accelerating progress in diversification in all world now knows as the Brookings Institution. Ninety-nine years later, we and our fellow Trustees are parts of the Brookings community, on the board as well as on the staff, and in multiple categories: working hand in glove with Strobe and his colleagues to use our centenary year to develop and begin geography, gender, ethnicity, generation, and professional perspective. to implement a strategic plan that strikes a balance between continuity and change. More improvements and innovations will emerge from the strategic plan that John and David The core principles articulated in the 1916 prospectus are, if anything, even more crucial announced in their letter. As we develop, refine, and begin to implement that plan over the next year, today. For example, as the heads into what is likely to be a long, bruising, and we owe it to our founders, to you as our supporters, to ourselves, and to our successors to make sure none-too-edifying­ national political campaign, we’ll keep alive the spirit of nonpartisanship that that we have the right priorities and the right tools to address them. led Robert S. Brookings, whose own public service was under Woodrow Wilson, to recruit to the We also need the resources to maintain our momentum and our preeminence in an increasingly board an ex-president, William Howard Taft, and a future one as well, Herbert Hoover. They and competitive environment. In this, the last annual report of Brookings’s first century, I hope you’ll find other prominent Republicans served alongside leading lights of the Democratic Party such as Felix evidence that my colleagues are earning your support and engagement in that effort. I also hope that Frankfurter, F­ rederic Delano, and Dean Acheson. you’ll let John, David, and me know your own suggestions as we plan for our second century. The strategic plan will also reflect our fiduciary responsibility to ensure that the combination of our fiscal policies, internal controls, and funding practices ensure the integrity of our management, the maintenance of our reputation, the protection of our brand, and the sustainability of our business model as we cross the 100-year threshold. Just as members of the original board made it possible, through their own donations, to turn Strobe Talbott their brainstorm into an iconic, path-breaking, and permanent fixture on the national and now President global landscape, we, as their successors, are determined to succeed in our $600 million Second Century Campaign—the largest ever for a think tank—which will conclude at the end of 2016. Our success also depends on the generosity of a growing network of friends who value Brookings’s past achievements, current impact, and future promise. We’re grateful for your support and look forward to continued engagement.

John L. Thornton David M. Rubenstein Co-Chair of the Board Co-Chair of the Board

2 3 Economic Studies

Ben Bernanke’s Blog en Bernanke, former chair- man of the Federal BReserve and now Dis- tinguished Fellow in Residence in Economic Studies, launched a blog in March 2015 that has quickly become one of the most popu- lar resources for those interested in monetary policy. The blog had 450,000 page views and was the subject of 355 stories in the media in its first week of existence. One of the highlights of the blog so far has been a lively exchange with former Treasury Secre- Shaping Economic Policy tary Larry Summers on secular stagnation and through Independent Research low interest rates. PHOTO BY PAUL MORIGI PAUL BY PHOTO PM IMAGES/GETTY IMAGES Chair of the Federal Reserve Board of Governors Janet Yellen (left) and Visiting Fellow Douglas Elmendorf, former Congressional Budget Office director, in the audience of an event marking the 40th anniversary of the publication of Equality and Efficiency: The Big Tradeoff by former Brookings economist Arthur Okun, which was re-released as he U.S. economy continues to grow welcomed three new guest scholars to Economic “The Brookings a Brookings Classic this year at a moderate pace since the Great Studies. Former Congressional Budget Office Recession at a time when economic Director Douglas W. Elmendorf will work on Institution is problems abroad—particularly issues macro­economic topics, including fiscal and a think tank in the eurozone and slowing growth in monetary policy. Former Special Assistant to as respected T —are adding uncertainty to the the President for Economic Policy and Senior as it is long- global outlook. With the Federal Reserve consider- Advisor for Financial Services Seth Wheeler, ing raising interest rates and the Administration who served in both the Bush and Obama lived. Over the and Congress at odds on fiscal policy, it is increas- administrations, will focus on financial innova- last century, ingly difficult to find a path toward a sustainably tion, technology and policy, as well as housing empires have growing economy and one that offers opportunity finance. Joshua Gotbaum is former director of come and for mobility. As policymakers grapple with how to the U.S. Pension Benefit Guaranty Corporation gone, the Brookings Trustee address these challenges, experts in the Economic and is working on retirement security and public Wilbur Ross with Studies program are bringing rigorous analysis finance issues. world order Chairman of and practical recommendations to help make the With the generous support of Chris Rokos, has changed the Council of economy work for all. Brookings established the Rokos Policy Fellow- but Brookings Economic Advisers ship in the Hutchins Center on Fiscal and Mon- , Deepening Our Bench of Economic Experts etary Policy. This fellowship offers senior policy- has sailed Vice Chair of the Economic Studies welcomed a number of new makers in the legislative and executive branches on, not just Brookings Board scholars to its ranks this year, adding new capacity a six-month sabbatical from their government commenting Glenn Hutchins, to analyze important issues. Senior Fellow Stuart posts to work on a focused research project in and Vice President on events but and Director of Butler is an expert on health policy, education, the Economic Studies resulting in a set of concrete shaping them.” Economic Studies budget, and social mobility. He’s the editor of the policy recommendations. The inaugural Rokos Ted Gayer (from —Lord Jonathan Hill, Health360 blog, which focuses on new ideas and Policy Fellow was Michael Falkenheim, Deputy left) prior to an developments in health policy and their impact Associate Director of Economic Policy at the Member, European event on achieving on individuals, communities, and health systems Office of Management and Budget, who works Commission strong economic

in the U.S. and around the world. Brookings also on managing pension benefit guarantees. MORIGI PAUL BY PHOTO growth 4 5 Then-Greek Finance Minister Yanis Varoufakis outlines Economic Studies prospects for reform and economic renewal for Greece New Resources for Me the Evidence, which tells the story of how the “I have great Tax Policy Research Obama administration planned and enacted sev- obert C. Pozen, an American financial eral initiatives to fund social programs that have respect for executive, established the Pozen Direc- been proven to work. Based on interviews with Brookings as tor’s Chair at the Urban-Brookings a range of stakeholders, he offers a blueprint for an institution Tax Policy Center through a generous policymakers worldwide interested in expanding and the Rendowment gift to Brookings and the Urban the use of evidence in policymaking—something Institute, which jointly operate the Center. The that seems obvious but, in fact, only one percent work they do inaugural holder of the Chair is Leonard Burman, of U.S. government-funded social programs have examining all director of the Tax Policy Center. As the Center’s ever been shown to be effective. issues. They first-ever permanent endowment, the gift pro- take both the Advancing Opportunity, vides durable, dedicated resources to support Prosperity, and Growth long and the innovative, independent research on pressing issues in tax policy and tax reform. “I am glad Under the direction of Senior Fellow Diane Whit- short-term to support such a great institution,” Pozen said. more Schanzenbach and Policy Director Jane PHOTO BY STEVE PURCELL STEVE BY PHOTO view. They “The Tax Policy Center is one of the few American Dokko, the Hamilton Project seeks to advance Senior Fellow and Co-Director of the Center on Children think about organizations that con- Improving Social Mobility opportunity, prosperity, and growth in the American and Families Richard Reeves explains the odds of sistently provides non- Unplanned births, especially those outside of mar- economy. This year, Hamilton experts published children from married parents ending up in the top and analyze partisan and thought- riage, are just one of a number of complex, interre- policy papers on topics such as the promise and quintile of income in his video “Is America Dreaming? trends over ful analysis of current lated factors that contribute to persistent poverty and limits of education’s impact on inequality, and water Understanding Social Mobility” time, (and) tax issues.” Founded a lack of social mobility. Arguments over whether to management. An influential paper by University conduct smart, in 2002, the Tax Policy address this phenomenon through supporting unmar- of Minnesota Professor Morris Kleiner found that Center is comprised of ried parents or urging a return to traditional marriage excessive occupational licensing requirements systemic nationally recognized remain unresolved, and the nation’s ideological divide impose net costs on society with little benefit to empirical experts in tax, budget, demands an alternative approach. Senior Fellow service quality, health, or safety; he also proposed In Memoriam: Bill Frenzel research.” and social policy, many Isabel Sawhill offers a third way in her new book, reforms at the state and federal level that would ill Frenzel, who was a guest scholar at —Sylvia Burwell, of whom have served Generation Unbound, which draws on insights from increase employment and consumer access to Brookings for 23 years, passed away in Secretary of Health and

at the highest levels of OF POZEN ROBERT COURTESY PHOTO

behavioral economics to examine ways to encourage PURCELL STEVE BY PHOTO goods and services, and reduce prices. November 2014 at the age of 86. Bill Human Services government. Robert Pozen people to become “planners”—who delay parenthood Federal Minister of had represented Minnesota’s 3rd District until they marry—instead of “drifters”—who are hav- Finance for Germany Finding a Path Forward on Climate Policy Bin Congress for 20 years. He served as special ing unplanned children early and outside of marriage. Wolfgang Schäuble Extreme drought in the western U.S. and tor- advisor to President for NAFTA, and discusses economic policy Senior Fellow Ron Haskins, co-director of rential rains in Texas have brought the effects of President George W. Bush appointed him to the in Germany and Europe the Center on Children and Families and who climate change to the forefront of the national Social Security Commission and the Advisory holds the Cabot Family Chair, authored Show conversation. Figuring out how to reduce human- Committee on Trade Policy and Negotiations. A induced risks to the earth’s climate without crip- collegial scholar of impressive intellect, Bill was a pling the economy remains a major unresolved valued member of the Brookings community and The Premier Forum for question. To help policymakers understand the contributed greatly to the life of the Institution. Economic Research choices, Senior Fellow Adele Morris, policy direc- tor of the Climate and Energy Economics Project, he Brookings Papers on Economic Activ- Federal Reserve Board has been examining options and implications of ity (BPEA), founded by former Economic Governor Lael Brainard different approaches, including carbon Studies Fellow Arthur Okun in 1970 is a discusses the outlook taxes in the context of broader fiscal premier source of innovative research on for the economy with reform. The PlanetPolicy blog, to the International Tcurrent macroeconomic issues. The twice-annual which she and other scholars across Advisory Council conferences are highly anticipated events that the Institution contribute, covers a attract top economists and media from around the range of topics, from international world, with research grounded in empirical analysis negotiations and agreements to

and practical application. adapting to the effects of a chang- MORIGI PAUL BY PHOTO

Emerging economists also get their chance at ing climate to water security in the SAM KITTNER BY PHOTO Senior Fellow and Director of the Hutchins Center on Fiscal and Monetary BPEA. In 2015, Matthew Rognlie, a PhD student at U.S. and around the globe. Bill Frenzel Policy David Wessel (left) discusses the state of the U.S. economy with MIT, became only the second graduate student to Treasury Secretary Jacob Lew at an event the day after President Obama’s present a sole-authored paper in BPEA’s history; State of the Union Address his research questioned the underlying assump- tions of Thomas Piketty’s widely read Capital in the Twenty-First Century. One of the discussants for Rognlie’s paper, which had its roots in a com- ment he posted on a popular economics blog, was Explore beyond the highlights. Nobel Prize-winning economist Robert Solow. >Visit brookings.edu/economics

PHOTO BY PAUL MORIGI PAUL BY PHOTO and follow @BrookingsEcon 6 7 Foreign Policy

Framing the Obama-Modi Summit he election of as prime min- Tister of India ushered in a period of great promise for the U.S.- India relationship. The two nations have many shared economic and strategic interests; with the right set of policies in place, the two pos- sess a great opportunity to advance these com- mon priorities. Ahead of Prime Minister Modi’s visit to Washington in September 2014, more than two dozen Brook- ings experts prepared 28 memos to help pre- pare policymakers and journalists for the sum- mit. The memos pro- Navigating a Changing Globe vided in-depth analysis

ALABASTRO PHOTOGRAPHY ALABASTRO of the key issues central ZEIN AL-RIFAI/GETTY IMAGES Cheng Li, director of the John L. Thornton China Center (right), greets President Xi Jinping in Seattle during the to the summit meetings, Chinese leader’s state visit to the United States including foreign and security policies, eco- ussia’s aggression against Ukraine and global order. However, the economic rise of select “If you want nomic and trade issues, China’s regional maritime provocations nations, particularly the BRICs, has created a set Executive Vice energy security, and reveal the rise of direct challengers to of formidable states with divergent visions for the to begin to President Martin social policies. the liberal, international order. When global order, threatening to destabilize the rules- understand Indyk discusses coupled with the emergence of the based international system. President Russia Obama’s National R ISIS sub-state threat to the state sys- In response to these changing global dynam- today, read Security Strategy tem, 2015 reflects a year of considerable strain ics, Foreign Policy launched the Order from Chaos Mr. Putin: with National on the U.S.-led international order. While these project. This program-wide effort, with 35 scholars, Security Advisor simmering regional conflicts have yet to boil over one of the largest in Brookings’s history, strives to Operative in into Great Power clashes, they have demonstrated identify the factors driving this new global era and the Kremlin.” a return of geopolitical competition that menaces develop a strategy for reinforcing the liberal order. To —Sir John Scarlett, the global order. We are approaching a pivotal his- expand debate, Foreign Policy introduced the Order former chief of torical juncture; the U.S. response will be critical, from Chaos blog. This platform enables Brookings the British Secret but it is far from determined. To help U.S. and experts to share accessible analysis of issues ranging Intelligence Service international policymakers navigate this challeng- from the future of Indian defense policy to the state (MI6) ing global landscape, the experts of the Foreign of the eurozone, in addition to increasing awareness Policy program are examining these developments of Brookings’s in-depth research (accumulating over

and generating actionable policy recommendations 500,000 page views-per-month). Foreign Policy also MORIGI PAUL BY PHOTO to meet current threats to stability and peace. hosted high-profile public events with leading U.S. Fellow Tanvi Madan, and foreign policymakers and experts on subjects director of the India Project Toward a Revitalized International Order including: the implications of China’s rise, the evolv- We have entered a more multipolar world, one ing state of U.S. energy security, and the conse- defined by regional tensions, new rising powers, quences of Russia’s revisionism. and the perception of a U.S. decline. America remains more powerful than any other nation, Responding to Russia retaining the capacity to influence both competi- The Russia-Ukraine conflict has sparked heated

tors and partners, and shape the 21st century debate in Washington—including within Brookings SHARON FARMER BY PHOTO 8 9 Foreign Policy

A Blueprint for a Support for an Enhanced —over the correct U.S. response to this challenge. New Policy toward Cuba To shape the public debate, the Institution “The rigour of Focus on Germany Senior Fellow Steven Pifer and President Strobe inaugurated the Brookings Debate Series, where hen President its research, the ith its strong economy and skilled Talbott, alongside six other former U.S. security Senator Chris Murphy (D-CT) and Brookings and Cuban President Raul Castro diplomatic leadership, Germany officials, including Brookings alumnus Ivo scholars openly debated deploying ground troops expertise of its announced the restoration of has assumed a major role in Daalder, composed a major report arguing for a to counter ISIS. Additionally, Brookings schol- many scholars Cuban-American diplomatic defining economic, trade, and for- greater U.S. commitment to ending that conflict. ars’ incisive assessments of the Iran nuclear deal and its role relations,W Senior Fellows Ted Piccone and Richard eignW policy for the European Union as a whole. To These prescriptions included increased funding to have increased public awareness of the details of Feinberg—Brookings’s leading experts on U.S.- as a setting help policymakers better understand the forces upgrade Ukraine’s defense capabilities, particularly that agreement. Supplementing the myriad calls providing light anti-armor weapons to Ukraine. Cuba relations—were in Havana on a research and press appearances, Senior Fellows Suzanne for keynote shaping Germany and its critical role in Europe’s The report became international headline news; trip. Unable to use their smart phones in Cuba ­Maloney and Robert Einhorn partnered with presentations future and to deepen Brookings’s expertise on changing the terms of the global debate, it forced and eager for news of the decision, Piccone and Elaine Kamarck of Governance Studies for a web- by major European and transatlantic affairs, the Robert Feinberg rushed to the offices of the Reuters Bosch Stiftung made a generous gift to the Insti-

comments from Chancellor Merkel, President MORIGI PAUL BY PHOTO based discussion of the nuclear deal that, within news agency to learn more. Once at the Reuters policymakers tution to establish a new senior fellowship. Con- Obama, and others. Talbott and Pifer briefed the Swedish Prime Minister ten days of airing, had garnered over 8,000 views. offices and able to reach the outside world, stanze Stelzenmüller was named the first Robert vice president and national security advisor. The Stefan Löfven discusses Furthermore, through the new Markaz blog, put Brookings report was well received by most of the adminis- globalization in a time of Piccone and Feinberg were inundated with media edited by Maloney, leading experts from Brook- in the top tier Bosch Senior Fellow in 2014, working under the tration’s senior officials and on Capitol Hill, where turmoil requests for commentary and analysis. Long ings and partner organizations have explored issues of think tanks auspices of the Center on the United States a bipartisan majority embraced its proposals. before this historic day—and in the days since— such as developments in Iranian-Western relations around the and Europe. Dr. Stelzenmüller, a former writer Confronting an aggressive Russia, U.S. policy- Piccone has shared policy recommendations and counterterrorism strategies. Fellow William and editor of DIE ZEIT and former office makers must understand President Putin’s motiva- directly with the White House, which incorporated McCants, director of the Project on U.S. Relations world.” director and senior transatlantic fellow at the many of his ideas—including providing direct German Marshall Fund, is an expert on German, tions and worldview in order to devise an effective with the Islamic World, led a Markaz debate with —Prospect Magazine, strategy to counter Moscow’s revanchist agenda. assistance to Cuba’s small businesses, relaxing former senior State Department officials on meth- Awarding Top Think European, and transatlantic foreign and security Whether considering Putin’s efforts to reestab- trade and financial barriers, and removing Cuba ods of countering ISIS social media propaganda, Tank for International policy. Brookings is grateful to the ­Robert Bosch lish a sphere of influence in Eastern Europe or from the list of state sponsors of terrorism—into the conduit for foreign fighter recruitment. Affairs ­Stiftung for its generous support of this impor- his turn to nationalism to burnish his domestic the blueprint for the U.S.’s new Cuba policy. The Foreign Policy program worked closely tant position. popularity, Senior Fellows Fiona Hill and Clifford International Atomic with the administration on February’s White Robert Bosch Senior Fellow Constanze Stelzenmüller Gaddy offer U.S. policymakers comprehensive Energy Agency Secretary House Summit on Countering Violent Extrem- (left) moderates a conversation on the U.S.-German insights into the Russian leader. In 2015, Gaddy General Yukiya Amano ism, including organizing a private roundtable to relationship with German Ambassador Peter Wittig and Hill, director of the Center on the United (left) and Senior Fellow help formulate the summit’s agenda. Additionally, States and Europe, released an expanded edition Robert Einhorn confer White House staff invited five fellows from the ahead of an Alan and of Mr. Putin: Operative in the Kremlin, adding Center for Middle East Policy and Center for Jane Batkin International five new chapters that provide greater context on 21st Century Security and Intelligence to provide Leaders Forum on the Putin’s ambitions for Russia. IAEA’s role in the Iranian expert input on summit content. At the State nuclear issue Department’s request, the program sponsored a Seeking Stability in the Middle East private roundtable on the role of religious educa- Brookings possesses the scholarly breadth and tion in advancing multi-faith tolerance. McCants depth to perform thorough and real-time analysis and Nonresident Senior Fellow Peter Mandaville on the multiple crises unfolding in the Middle hosted that meeting, and continue to contribute to East. Brookings experts have created innovative and the State Department’s preventing violent extrem- practical responses to counter ISIS’s extremist ide- ism agenda. ology and brutal campaigns. Senior Fellow Kenneth­ Pollack, an authority on the political-military ­ RALPH ALSWANG BY PHOTO dynamics of the Middle East and Gulf states, has Brookings Trustee and provided the White House and Congress with Chairman of the Foreign feasible mechanisms for confronting ISIS. Within Policy Leadership Council the region, the Brookings Doha Center has con- Ben Jacobs listens as ducted extensive ground-level work on the con- Vice President of Foreign Policy Bruce Jones flict. Visiting Fellow Charles Lister’s near real- lays out the program’s time analysis has covered ISIS and the complex research agenda for the mosaic of other actors engaged in that struggle. coming year Salman Shaikh, director of the Brookings Doha Center, has brought together leaders from rival Syrian factions for a track 1.5 dialogue that exemplifies Brookings’s ability to tangibly impact global events. Domestically, Brookings

scholars also have briefed and provided policy MORIGI PAUL BY PHOTO MORIGI PAUL BY PHOTO

proposals to, among others, the president, the PETER BY HALMAGYI PHOTO vice president, secretary of state, the Office of South Carolina Senator Lindsey Graham speaks at the Explore beyond the highlights. the Director of National Intelligence, and the Saban Forum >Visit brookings.edu/foreignpolicy Central Intelligence Agency. and follow @BrookingsFP 10 11 Global Economy and Development

First Lady of the United States Michelle Obama discusses community-based solutions in girls’ education at a Center for Universal Education event Latin America Macro­ economic Outlook

fter a golden decade of rapid progress, ALatin America is experiencing a new socio-political and economic landscape that requires new thinking on the region’s institutions, macroeconomic stability, and inclusive growth. In partnership with the Center for the Study of Economic and Social Affairs (CERES) in Uruguay, the Brookings Global- CERES Economic and Social Policy in Latin America Initiative Strengthening Drivers of (ESPLA) released its annual flagship Sustainable Growth and Opportunity report, Macroeconomic

PHOTO BY PAUL MORIGI PAUL BY PHOTO Vulnerabilities in an PETER ADAMS/GETTY IMAGES Uncertain World: One Region, Three Latin Americas, in fall 2014 nder the leadership of Vice Presi- of the Eurozone, and sustainable growth in Latin Managing Director of the on the margins of the “I’m confident International Monetary dent and Director Kemal Dervi¸s, the America, among other regional topics. Similarly, Annual Meetings of the that we can Fund Christine Lagarde Edward M. Bernstein Scholar, and Vice President and Director Kemal Dervi¸s joined and the Deputy Director Homi Kharas, experts with Peter Drysdale of Australia National Univer- give all of (left) discusses the IMF’s role in financing the International Monetary in the Global Economy and Devel- sity to publish The G-20 at Five, a book of selected our girls the Fund. Authored by U opment program are focusing their essays on topics that were on the G-20 agenda. post-2015 sustainable development agenda Nonresident Senior research and recommendations on how to better Over the past year, Europe, which still education they deserve. That’s with Vice President of Fellow and ESPLA manage globalization and fight poverty and social accounts for about one-third of global GDP, has Global Economy and Director Ernesto Talvi, stress. been a source of particular concern, not least why I’m here.” Development Kemal the report argues because of the recurring Greek crisis. German —First Lady Michelle Dervi¸s that Latin America The Global Economy Federal Minister of Finance Wolfgang Schäuble Obama, speaking at a should be thought Global economic interdependence has contin- came to Brookings to discuss the next steps in the Center for Universal of as three distinct ued to grow with technology, financial markets, European project and how to manage the euro- Education event regions with three very and trade linking individual countries in multiple zone. To hear more on the Greek perspective, later different sets of policy ways. Understanding this connection and working that same day Brookings welcomed then-Finance challenges. on proposals aiming at win-win policies is at the Minister Yanis Varoufakis, who presented his very heart of the Global Economy and Development different perspectives. Dervi¸s has continued to program’s efforts. One instrument has been the build on his work published last year, with the Think Tank 20—a network of experts from policy future of the euro and of the European project research organizations around the world who come being a frequent topic in his Project Syndicate together to inform the debate around the G-20 articles. summits. The report Growth, Convergence, and Income Distribution: The Road from the Brisbane Sustainable Development After 2015 MORIGI PAUL BY PHOTO G-20 Summit was released during the Australian The year 2015 has been a pivotal one for the

Presidency of the G-20 and examined these issues global community, punctuated by several high- MORIGI PAUL BY PHOTO from different perspectives, including chapters profile international gatherings of leading experts, Nonresident Senior Fellow Ernesto Talvi on growth in Africa, deflation in Japan, the future policymakers, and practitioners: UNESCO’s World 12 13 McArthur were particularly engaged in inform- In Memoriam: Global Economy and Development ing the agenda, discussions, and outcomes of the Mwangi Financing for Development conference, participat- ing in key meetings, consultations, and retreats Kimenyi with various stakeholders. Kharas and McArthur rookings lost Increased Focus on Africa wrote an influential paper that outlined nine pri- a dear friend s one of Brookings’s most generous ority commitments—such as support for lower and colleague donors, the Bill & Melinda Gates middle-income and least developed countries, when Mwangi Foundation provides critical support investing in infrastructure, improving accounting BS. Kimenyi passed “I’d like to for work across the Institution and practices, and encouraging impact investing—for away in June. He joined Aalso provides founding support for the Africa the conference. thank The Brookings in 2009 Brookings Growth Initiative. In 2014, the Foundation made as a Senior Fellow a $3.75 million grant to the Global Economy Universal Education: in the Africa Growth Institution for and Development program for work to advance Building Block for Development Initiative and served as its scholarship economic opportunity and positive development Too many children in the developing world, espe- its director from 2010– outcomes for the world’s most vulnerable cially girls and those living in conflict areas, have and stellar 2014, during which time work on populations. Specifically, the grant supports

only limited access to education. And even when KAPUSCINSKI LECTURES DEVELOPMENT BY PHOTO he brought tremendous efforts to inform the post-2015 development they are enrolled, the quality can be inconsistent enthusiasm and energy Deputy Director of Global Economy and Africa, in agenda and how it is shaped and financed, and external pressures often make it difficult to to Brookings’s study of Development Homi Kharas speaks on particular U.S. leadership in global development, and the complete schooling. But without adequate educa- the continent and its transitioning from “the developing world” the African Africa Growth Initiative’s work to develop long- PHOTO BY OECD BY PHOTO tion, individuals have a hard time reaching their to “a developing world” in the Kapuscinski economic opportunities. term strategies for economic growth in the Secretary-General of the OECD Angel Gurría discusses economic potential and improving outcomes for Development Lecture in Riga, Latvia Growth and He helped build region. Brookings is grateful for the support and ways to address growing inequality through inclusive their families and communities. Under the lead- an enterprise that Opportunity intellectual engagement of the Bill & Melinda Gates growth ership of Senior Fellow and Director Rebecca brings African voices Act, ensuring Foundation. Winthrop, experts in the Center for Universal to the development that the many Education Forum in Incheon, the Third Interna- Education are pursuing a comprehensive research debate, established tional Financing for Development Conference in and outreach agenda to educate policymakers on partnerships with stakeholders Addis Ababa, and the Conference of Parties in how to achieve better learning outcomes and how African think tanks, of AGOA on to address climate change, among others. to scale up successful interventions so that they launched the successful the continent These efforts offer a historic opportunity to ensure reach more children. Africa Policy Dialogue of Africa that no one is left behind, support a new eco- On girls’ education, Distinguished Fellow Julia on the Hill, and nomic model focused on low-carbon growth, and Gillard, former prime minister of Australia, joined developed AGI’s now- and here in instigate a better-governed globalization. with the Clinton Global Initiative to announce the signature publication, the U.S. are Brookings experts have been conducting launch of CHARGE—Collaborative for Harness- Foresight Africa, which informed research and offering thoughtful analysis and rec- ing Ambition and Resources for Girls Education, provides an annual about the ommendations to inform the debates over how to a group of more than 30 public, private, and civil look-ahead at the achieve these critical development goals. Senior society actors committed to investing more than big issues facing the importance of Fellow and Deputy Director Homi Kharas, Senior $600 million and aiming to reach nearly 14 million continent. All who had AGOA for all Fellow Amar Bhattacharya, and Senior Fellow John girls by 2019. Efforts to improve and expand girls’ the privilege to work concerned.” education got a major boost in attention from the with Mwangi knew him —United States vocal support of First Lady Michelle Obama, who ALEX BY IRVIN PHOTO

to be a serious and MORIGI PAUL BY PHOTO Former President of Ireland Mary Robinson Representative has used her prominence to advance the cause. thoughtful scholar and Her Excellency Catherine Samba-Panza, President moderates a panel on opportunities and challenges Karen Bass The Center for Universal Education is working a cheerful and kind of the Central African Republic, outlines the peace for development cooperation at the 2015 Brookings as a knowledge partner with the White House on person. Brookings will and stabilization agenda of her country’s transitional Blum Roundtable on Global Poverty the Let Girls Learn initiative that it launched to miss having him as part government at a roundtable led by Senior Fellow Amadou encourage community-led solutions to helping of our community. Sy, director of the African Growth Initiative (left) girls complete their education. Future Development Blog riginally hosted by the World Bank in 2013, the Future Development blog, co-edited by Homi Kharas, Deputy Director of Global Economy and Development, and Shanta Devarajan and Wolfgang OFengler, both of the World Bank, was moved to the Brookings platform in 2015. Future Development seeks to inform and Amina Mohammed, Special stimulate debate on key development issues in an effort Advisor to the Secretary- to hold governments more accountable and offer solutions General on Post-2015 to important development challenges. With frequent posts

Development Planning, SHARON FARMER BY PHOTO by development experts from around the world, the blog presents recommendations Mwangi Kimenyi explores issues like urbanization, corruption, demographics, from The Road to Dignity and agriculture, among others. by 2030: Ending Poverty, Transforming All Lives, and

PHOTO BY SHARON FARMER BY PHOTO Explore beyond the highlights. Protecting the Planet, a major >Visit brookings.edu/global new report from the UN and follow @BrookingsGlobal 14 15 Governance Studies

Senior Fellow E.J. Dionne, Jr. (left) listens as Representative Nancy Pelosi discusses financial security for middle class families The Professor and the President acing an ­oppositional Congress when he Fassumed the presi- dency in 1969, Presi- dent Richard Nixon made the risky deci- sion to appoint a prominent Democrat to his White House staff. His choice was ­, a liberal professor from the Ivy League, whom Nixon selected as his top urban affairs adviser. What developed was a strong professional and political relation- ship, as well as a close Independent Research personal friendship. In his new book, The Professor and the for Improving Governance President: ­Daniel PHOTO BY CHRIS BY MADDALONI PHOTO ECHO/GETTY IMAGES ­Patrick ­Moynihan in the Nixon White House, Senior Fellow Emeritus ­Stephen Hess pulls hroughout the year, Governance The spread of smartphones and cellular net- FBI Director James “It’s great to back the curtain on Studies scholars delivered important works is creating new opportunities for poor and Comey (right) and Senior perhaps one of the research and practical policy solutions rural communities to access government benefits be here at Fellow Benjamin Wittes most unexpected and on key issues from technology to edu- and financial services previously unavailable to Brookings. One listen to an audience unusual pairings in cation, from national security to health them. Through the Financial and Digital Inclusion question during an event of the really on the intersection of Washington during T care to political campaigns and elec- Project, West and Nonresident Senior Fellow John significant technology, privacy, and that era. Hess, who tions, and from marijuana policy to the influence Villasenor are looking at how technologies such as public safety worked with both of billionaires on politics. Scholars testified before mobile money can bring marginalized populations functions that Moynihan and Nixon Congress and were interviewed by major news into the mainstream of commerce. The Project’s this Institution in the White House, outlets, providing fact-based analysis to policymak- first report analyzed 21 politically, economically, provides details the dynamics ers and the public. and geographically diverse countries to evaluate is to be a between the two and each nation’s commitment and progress on finan- the passionate debates Policies for Emerging Technologies cial inclusion. place where that took place behind Advances in technology often get ahead of the policymakers closed doors. policies designed to regulate them. For instance, The Future of Financial and the public the field of robotics raises important questions Aid for Higher Education can interact around privacy, liability, and safety, among other Education costs are increasingly out of reach for concerns. As automation and artificial intelligence many families, raising barriers to getting additional on important become increasingly sophisticated, benefits will training that could lead to better jobs and higher issues.” need to be weighed against their effect on work- pay. At the same time, the growing role of tech- —Tom Wheeler, ers, workforce development, and privacy. Experts nology in the workplace and the importance of Chairman, Federal in the Center for Technology Innovation, founded advanced industries to the economy place a pre- Communications and led by Governance Studies Vice President and mium on workers’ skills, especially in the STEM Commission Director Darrell West, the Douglas Dillon Chair, fields. As a result, financial aid plays an ever-more are wrestling with these questions and formulating important role in access to higher education. policy recommendations to protect consumers and There has been a growing concern about

ensure a competitive commercial landscape. increasing levels of student debt and the ability MORIGI PAUL BY PHOTO 16 17 Governance Studies

Kentucky Governor Steve Beshear (left) and Fellow John Hudak exchange ideas on good governance lessons from the states prior to an event that also included Investing in a Colorado Governor John Hickenlooper to repay loans. This debate prompted then-Senior Stronger Democracy Fellow and Research Director of the Brown Cen- epairing the political system to make ter on Education Policy Matthew Chingos and American democracy function more Fellow Beth Akers to take an evidence-based look effectively is a core part of the Gov- at how student loan debt levels and incomes have ernance Studies program’s mission. evolved between 1989 and 2010. They found that, RWith the support of the William & Flora Hewlett while average debt levels had increased signifi- Foundation, Brookings launched the Strengthen- cantly, the returns to education in higher incomes ing American Democracy Initiative in 2013 under more than offset larger monthly payments. As the leadership of Senior Fellow Elaine Kamarck, Congress considered reauthorization of the Higher founding director of the Center for Effective Education Act in 2015, Akers testified before Public Management. The Initiative examines a the U.S. Senate Committee on Health, Educa- set of issues that feed into the partisanship that

tion, Labor, and Pensions on ways to help ensure SHARON FARMER BY PHOTO has hobbled decisionmaking in Washington and that students are taking on debt in a responsible, Nonresident Senior Fellow Fredrick Harris (left) discusses race and policing after proposes reforms that can restore efficiency Ferguson on a panel with Delroy Burton, chairman of the D.C. Police Union informed manner to encourage investments in and effectiveness to government. The Hewlett education while minimizing risk of an unsustain- Foundation made a new $1.5 million grant to able financial burden. Governance Studies to continue this work with a focus on institutional innovation, electoral reform PHOTO BY CHRIS BY MADDALONI PHOTO Seeking Justice for All “Brookings and representation, and strengthening the role From Ferguson, Missouri, to Staten Island, New Senator Lamar of the news media in fostering accountability and York, fatal encounters between police officers and has a long and proud history Making an Impact Alexander (R-TN) transparency. Brookings is grateful to the William minority citizens brought long-simmering tensions on Marijuana Reform shares his views & Flora Hewlett Foundation for its generous sup- to the surface across the U.S. Communities of of tackling on the future of port of this important work. color have long complained of their unfair treat- difficult public hen Oregon, Alaska, and the school choice at a ment at the hands of law enforcement, but these policy issues District of Columbia passed mea- Brown Center on cases and others like them, and the protests that sures to legalize recreational Education Policy event followed, raised important questions about how and fostering marijuana in 2014, they joined launching the annual Education Choice and police interact with minorities, especially African robust public ColoradoW and Washington in defying federal drug Competition Index Americans, and the criminal justice system. debate.” laws to institute a new regulatory regime that To help address these questions, Nonresident promised greater justice for minority populations —Kara Stein, Senior Fellow Fredrick Harris moderated an event and fiscal benefits from reduced policing costs Commissioner, that included, among other panelists, Delroy and new tax revenues. Adding these jurisdic- Securities and Exchange Burton, chairman of the D.C. Police Union. The tions to the 19 others that have legalized medical Commission discussion focused on policing in modern-day cannabis, it becomes clear that voters in a large PHOTO BY PAUL MORIGI PAUL BY PHOTO America and reforms that could improve relation- swath of the United States are reconsidering the ships between law enforcement and citizens, value and effectiveness of the “War on Drugs” with an eye on lessons learned from recent highly and its impact on vulnerable communities. Fel- charged incidents and recommendations for how lows John Hudak and Philip Wallach have written to improve interactions in the future. extensively on the issues that have been raised

by various levels of legalization and the tensions MORIGI PAUL BY PHOTO Senator Bernie Sanders (I-VT) outlines his “Agenda Former Indiana Governor between federal, state, and local laws. As gov- for America” to address the nation’s most pressing and Office of Management ernments grapple with how to regulate growing, economic challenges and Budget Director selling, and use of marijuana, Wallach and Hudak Mitch Daniels makes the have provided analysis and recommendations case for higher education through the 420 Series of the widely read FixGov reform at a Brown Center Vice President for Education Policy event blog. Marijuana policy will be a closely watched issue in the 2016 presidential election and in and Director of referenda in a number of states, making their Governance Studies research timely and important in educating the Darrell M. West (right) escorts Federal electorate and policymakers. Communications Commission Chairman Tom Wheeler to an event on maximizing the benefits of broadband

Explore beyond the highlights.

PHOTO BY PAUL MORIGI PAUL BY PHOTO >Visit brookings.edu/governance

PHOTO BY PAUL MORIGI PAUL BY PHOTO and follow @BrookingsGOV 18 19 Metropolitan Policy

Senior Fellow and Co-Director of the Metropolitan Policy Program Amy Liu (center) learns about workforce training innovation up close at a Siemens Training Center in Nuremberg, Germany, during a Global Cities Initiative study Understand- tour of Bavaria. With her are a Siemens trainee (left) and Karin Norington-Reaves of Cook County Works in Chicago ing the Impact of Changing Demographics n his new book, Diversity Explo- sion: How New Racial Demo- Igraphics are Remaking America, internation- ally renowned demog- rapher and Brookings Senior Fellow Bill Frey takes a detailed look at the dramatic growth of minority populations in the U.S. America has long regarded itself as the world’s melting pot, where people of all cultures are part of a unique, blended society. The longtime Harnessing the Power of Cities population dominance of white Americans to Drive Innovation and Opportunity will soon give way to a nation with no PHOTO BY DARREN JACKLIN DARREN BY PHOTO TOM COCKREM/GETTY IMAGES racial majority, where the social, economic, and political impact etropolitan areas are at the heart of spending per worker in the 80th percentile and a “You have Vice President and of non-whites will be the American economy. They bring share of STEM workers above the national average. Co-Director of the increasingly important. the most important ingredients for The authors find that the 50 manufacturing, energy, to have the Metropolitan Policy Using innovative maps economic growth—human capital, high-tech, and services sectors that meet these cri- right set of Program Bruce Katz, and charts to comple- infrastructure, research, and innova- teria have special importance to America’s future. partners to Mayor of London Boris ment a sophisticated Johnson, and Mayor Mtion—into close proximity and leverage The report reveals the scale of the contributions analysis, Diversity move forward of San Diego Kevin Explosion explores them into productive enterprises. At the same time, that advanced industries make to the U.S. economy, Faulconer (from left) an ambitious how a new generation many cities face challenges in education, affordable contributing 17% of GDP despite employing only prepare to take the housing, and poverty that make it difficult to fully 9% of the workforce. Clustered largely in major economic stage at a Global Cities of young minorities is capitalize on their potential for sustainable, inclusive metropolitan areas, these industries also support development Initiative event on the infusing an aging labor growth. The Metropolitan Policy Program works with extensive supply chains and supporting businesses agenda, and challenges of governing force with vitality and public and private sector stakeholders across the that, all together, account for nearly a quarter of global cities for growth innovation. country and, increasingly, across the globe to over- U.S. employment. Jobs in advanced industries are we have the come these challenges and build on their assets to comparatively high paying across a range of educa- perfect partners maximize benefits to their communities. tion levels and are extremely productive. Looking assembled forward, though, the U.S. is losing ground to other today. The Advanced Industries nations in advanced industry competitiveness and, Powering Economic Growth the authors conclude, there needs to be a renewed entire city of Two of the defining characteristics of an commitment to innovation, improved workforce Indianapolis is ­innovation-based economy are the intensity of training, and an intentional approach by public and grateful to be research and development investment and the preva- private sector actors to foster an environment where a part of the lence of high-knowledge STEM workers. “America’s these industries can thrive. Global Cities Advanced Industries: What They Are, Where RALPH ALSWANG BY PHOTO They Are, and Why They Matter,” a new report by Understanding Place, Initiative.” Senior Fellow and Director of Policy Mark Muro Race, and Opportunity —The Honorable Greg and Fellow Jonathan Rothwell, takes a close look at In August 2014, unrest engulfed the St. Louis Ballard, Mayor of industries that have both of these features—R&D suburb of Ferguson, Missouri, after Michael Indianapolis 20 21 Metropolitan Policy

Investing in Innovation and Placemaking ith the support of a $2 million gift from Brookings Trustee Robert Bass and Anne Bass, Brookings launched the Anne T. and Robert M.W Bass Initiative on Innovation and Placemaking. Along with the New York-based Project for Public Spaces, long-time advocates of the community- led placemaking movement, Brookings experts are developing a new city-building paradigm that emphasizes the reinforcing benefits of vibrant public spaces and innovative urban economies. PHOTO BY RALPH ALSWANG BY PHOTO Through research, on-the-ground projects, PHOTO BY RALPH ALSWANG BY PHOTO Director of Leadership and new analytic, financial, and policy tools, the Governor of Terry Development and Bass Initiative will help cities and suburbs develop McAuliffe (right) discusses Graduate Leadership mixed-use, entrepreneurial communities cen- advanced industries in his state at YouthBuild USA with Senior Fellow and Policy Joel Miranda (center) tered around assets such as advanced research Director of the Metropolitan discusses ways to create universities, medical campuses, historic ware- Policy Program Mark Muro opportunity for young houses and waterfronts, main streets, and public people and families in markets. By channeling the benefits of proximity, distressed neighborhoods, density and authenticity—“cityness”—these hubs as Former Chairman can strengthen cities’ innovative economies and and CEO of Enterprise reanimate public spaces, making communities Community Partners Brown, an unarmed teenager, was shot and killed more resilient and inclusive, and helping them Frederick (Bart) Harvey to become high-quality places in which to live, by a police officer. Fellow Elizabeth Kneebone (left) and President and work, and play. Brookings is grateful to Robert

discussed the economic and social backdrop for MORIGI PAUL BY PHOTO CEO of the Reinvestment and Anne Bass for their generous and far-sighted those protests in “Ferguson, Mo. Emblematic of Co-Director of the Metropolitan Policy Program Amy Fund Donald Hinkle-Brown investment in this important work. Growing Suburban Poverty.” Ferguson exempli- Liu, Rockefeller Foundation President Judith Rodin, listen fies the sharp increase in suburban poverty that and Vice President and Co-Director of the Metropolitan Brookings Trustees Bob Bass and Victoria P. Sant has occurred in almost every major metropolitan Policy Program Bruce Katz (from left) prior to the discuss the Metropolitan Policy Program’s agenda area since 2000, which Kneebone explored with launch of Rodin’s new book, The Resilience Dividend: with Vice President and Co-Director Bruce Katz at Senior Fellow and Deputy Director Alan Berube in Being Strong in a World Where Things Go Wrong the March Board meeting Diagram of freight flows to and from major U.S. cities their 2013 book, Confronting Suburban Poverty in and their global trading partners from the “Mapping America. Freight” report by Fellow Adie Tomer and Senior Policy face of entrenched poverty, long-term disinvest- In May 2015, shortly after Freddie Gray of and Research Assistant Joseph Kane ment, and racial divides came together to discuss Baltimore died of injuries he sustained while in policy initiatives that have worked in Baltimore, police custody, prompting protests nationwide, the , Chicago, and other communities. Metropolitan Policy Program published a series The Metropolitan Policy Program will continue of blog posts examining the concentrated poverty to provide research and lift up solutions that help “I’m so happy that still plagues neighborhoods like Baltimore’s Reshaping Workforce Training reduce stark divides by place and race in our cities ­Sandtown-Winchester. Fellow Jennifer Vey situ- and metro areas. that Brookings ated that community’s experiences against the emand-driven workforce strategies have garnered increased atten- Metro is backdrop of its relatively affluent metropolitan tion for their potential to connect more workers to better-paying Mapping Employment and

taking up MORIGI PAUL BY PHOTO area in “The Challenges of Baltimore (and the jobs, while ensuring that employers have access to an adequate Output around the World Nation) in Context.” In “Good Fortune, Dire pool of labor. Building on regional strategy work supported by The world’s 300 largest metropolitan economies the challenge Dthe Brookings-Rockefeller Project on State and Metropolitan Innovation, a Poverty, and Inequality in Baltimore: An Ameri- have only 20% of the population, but account for of race and developing country metropolitan economies fea- can Story,” Berube and Nonresident Fellow Brad group of twelve Louisville manufacturers joined together to adopt a prom- nearly half of global economic output. Under- opportunity ture faster growth than their developed peers, with McDearman provided 10 charts that illustrate ising apprenticeship model developed at a nearby Toyota manufacturing standing the growth patterns of these thriving at the highest those specializing in commodities outperforming inner-city Baltimore’s issues both regionally and facility. Nearly two dozen participants will start the Louisville program this places offers valuable insights into where and why those with high concentrations of business, finan- nationally. And in “Beyond Baltimore: Building on fall, attending classes at a local community college while gaining real-world incomes and standards of living are rising and levels.” cial, and professional services. Further, the data What We Know to Create Neighborhood Oppor- experience with participating manufacturers. To spur the adoption of more labor market opportunity is most concentrated. —Darren Walker, reveal that metropolitan economies power their tunities,” Senior Fellow and Co-Director Amy Liu employer-driven skills strategies to support advanced industries, Brookings Alan Berube worked with Research Analyst Joe President, Ford larger national economies, with 60% of the top discussed policy solutions for connecting people traveled with a delegation of 40 leaders to Munich and Nuremberg, Germany, Parilla and Tao Ran, a nonresident senior fellow in Foundation 300 having recovered their pre-recession levels of in areas of high poverty to economic opportunity in November as part of the Global Cities Initiative: A Joint Project of Brook- the Foreign Policy program, to develop the Global employment growth and GDP per capita. and jobs. ings and JPMorgan Chase. Participants toured Siemens and Seidenader plants, Metro Monitor, a report and interactive map that observing apprentices at work on the factory floor, and exchanging insights Finally, at a May 21 “Baltimore and Beyond” uses a combination of change in employment and Explore beyond the highlights. policy forum, panelists with extensive on-the- with high-level German and industry leaders. GDP per capita to chart the economic recovery >Visit brookings.edu/metro ground experience in creating opportunity in the across the world. Among its key findings is that and follow @BrookingsMetro 22 23 Robert S. Brookings Brookings’s Centenary

Our centenary also marks the end of the Sec- sents Brookings at its nimble best, and leaves our ond Century Campaign, a historic effort to bolster supporters, constituents and colleagues inspired Brookings’s capacity to meet the great policy chal- and determined to make the most of the first year lenges of our time. The entire Institution will be of Brookings’s second century. working to ensure that our hundredth year repre-

The Brookings Institution was Brookings’s Centenary headquartered on Jackson Place NW PHOTOS: BROOKINGS INSTITUTION ARCHIVES in Washington from Senior Fellows Edward R. Fried, Alice Rivlin, Charles Schultze, and Nancy Teeters working on the Setting 1932–1959 National Priorities project, circa 1973

s Brookings crosses the threshold of way to take advantage of ways not just to inform its centenary in 2016, the Institution citizens of nations around the world, but to engage will celebrate its rich history, show- them in virtual conversation with our scholars. case its many contributions to the Having that ability will not only expand our global management of pressing public policy reach but enrich the quality of our work. A challenges, and launch initiatives and To the same end, Brookings is leveraging the innovations that will ensure our ability to build on breadth and depth of expertise in its scholar ranks our legacy to shape the future. through interdisciplinary approaches to com- From its inception, Brookings scholars have plicated, multi-faceted problems. As traditional played a significant role in developing important political, economic, and security systems change economic, security, and social policies. They have and, in many cases, weaken in response to shift- helped put in place the framework for the mod- ing circumstances and innovation, Brookings must ern federal budget, mobilize the nation for World work with the public and private sectors to help War II, design the Marshall Plan, implement the policy keep pace with a changing world. Congressional Budget Act of 1974, provide the Among our plans for 2016, Brookings will underpinnings of the Tax Reform Act of 1986, convene events for supporters and stakeholders make the case for major welfare reform legislation, in Washington and other cities across the country Isabel and Robert put forth proposals for new homeland security and and abroad. The Brookings Press is honoring the Brookings in 1928 intelligence operations following the 9/11 terrorist Institution’s most notable authors by republishing attacks, generate ideas for healthcare reform, and their groundbreaking works, with new introduc- facilitate progress in U.S.-Cuba relations. tions by distinguished scholars, thereby making The need for ideas that matter and solutions these Brookings Classics available to a new gen- Economic Studies Senior Fellow Joseph Pechman (center) leads a Friday Lunch, that work is just as urgent now as it has ever been, eration of readers as well as to scholars and inter- an informal weekly gathering of scholars and staff to discuss current research and and our audiences and constituencies are vastly ested citizens who will find much that is relevant pressing issues larger because of the digital age and the communi- today. The Press is also launching a new series United States President Lyndon Johnson (right) and cations revolution. Brookings has moved swiftly in of A Short History of… books that give essential Brookings President Robert D. Calkins at the Brookings the use of social media, and we have plans under- background on key issues and policy debates. 50th Anniversary Celebration in 1966 24 25 The Second Century Campaign

Trustee John White takes part in a conversation on the Governance Studies program’s research agenda PHOTO BY PAUL MORIGI PAUL BY PHOTO Trustees Benjamin Jacobs and Cheryl Cohen Effron, who completed her term as chair of the Development Committee Building a Foundation for Innovative Thinking in 2015 PHOTO BY PAUL MORIGI PAUL BY PHOTO PHOTO BY PAUL MORIGI Chair of the Second Century Campaign and Vice Chair of the Board he pace of change in the world today The most important investment in this founda- Glenn Hutchins (left) puts tremendous demands on decision- tion is in the people—senior fellows, fellows, and with Brookings President makers. The global economy has grown visiting scholars—who are conducting research Strobe Talbott so interconnected that developments in and developing solutions to the hardest problems far-away countries can instantaneously on the global agenda. That’s why the focus of the T reverberate in financial markets across Campaign through its conclusion at the end of the world. A terrorist attack can have an immediate 2016 remains on the durable resources that enable impact on stability and international relationships. Brookings to recruit and retain the best talent in A new technology can disrupt old practices and policy research, increase the diversity of the staff,

create previously unimagined business opportuni- and build a strong bench of rising stars. MORIGI PAUL BY PHOTO ties. Responding effectively to new developments The Brookings strategic plan, unveiled as a Trustees Paul Cejas, Andrew Tisch, and Alfy Fanjul (from left) around the globe requires nimble thinking and draft in November 2015, sharpens the vision of quick action. how the Institution will position itself going for- As an Institution that works at the intersec- ward. A successful Second Century Campaign tion of breaking news and long-term trends, sets the foundation for bringing the plan to life, Brookings continually works to ensure that its ensuring that the rigorous, independent research research agenda reflects the most pressing issues. of Brookings experts continues to resonate with This means being flexible and ready to marshal policymakers and business and community leaders resources when it counts. The priorities that ani- facing their own pressing challenges. mated the Second Century Campaign’s $600 mil- lion goal when it was officially launched in 2009 haven’t changed, but the specific topics that Brook- ings experts are working on have. The Campaign is a living, dynamic undertaking that seeks to build a solid foundation for Brookings to carry out the important work of addressing national and global Trustees Art Collins

challenges with practical, effective solutions. MORIGI PAUL BY PHOTO (left) and Pete Higgins 26 27 Changing Leadership of the Support for Brookings Development Committee n May 2015, Art Collins succeeded Cheryl Co-Chair of the Board John Thornton (left) and Trustee Philip Knight during the Board Cohen Effron as chair of the Development business meeting in March Committee of the Board. Cheryl led this important committee for more than five Iyears, a period during which Brookings’s annual budget grew by 25% and the Second Century Campaign was officially launched. Brookings is grateful to Cheryl for her leadership and dedica- tion to ensuring that the Institution has the finan- cial resources to fulfill its mission.

Trustee and Co-Chair of the International Advisory Council Antoine van Agtmael shares his thoughts on the last two years of the Obama administration

Trustee Daniel Yergin, with Roger Sant and Co-Chair of the Board David Rubenstein

(from left) MORIGI PAUL BY PHOTO

Supporting Solutions by Investing in People

PHOTO BY PAUL MORIGI

rookings’s supporters contribute much more than just financial resources to MORIGI PAUL BY PHOTO the success of the Institution. Their Trustee Bea Welters active engagement with Brookings takes part in a experts on the full range of policy discussion of the B issues enriches the research, grounding Global Economy and it in real-world experiences. That is what makes Development the various opportunities for dialogue—whether program’s research at a Brookings Council event, on a conference agenda

call, or during a panel discussion—so important. MORIGI PAUL BY PHOTO The exchange of ideas and perspectives between Brookings President Strobe Talbott (left) and Trustee Leonard D. Schaeffer Brookings experts and donors is an essential part of the atmosphere of intellectual freedom that defines the Brookings approach to scholarship. Trustee Betsy Z. Cohen Being able to road-test ideas and hear feedback on (right) and Co-Chair of the Board John their strengths and shortcomings makes for better MORIGI PAUL BY PHOTO policy recommendations. Thornton participate in a breakout session on the future research Major Support for the Center agenda of the for Universal Education MORIGI PAUL BY PHOTO Economic Studies The Center for Universal Education, led by Senior Vice Chair of the Board Suzanne Nora Johnson welcomes Trustees to the program Fellow Rebecca Winthrop, conducts a range of May Board meeting research and activities to help solve the challenge of achieving quality education for all children in the developing world, especially girls and children in conflict zones. The Center’s work informs the

policy agendas of multilateral agencies, NGOs, MORIGI PAUL BY PHOTO 28 29 Support for Brookings Brookings Society Engages Rising Leaders Trustees Alan Batkin, Ann Fudge, and Bart Friedman he Robert S. Brookings Society gives emerging leaders exclusive confer on prospective Trustee candidates during opportunities to participate in interactive discussions with Brook- a meeting of the Nominations and Governance Witnessing India’s Transition, Up Close ings experts on a range of priority issues. With members in four Committee of the Board cities, the Society has grown rapidly in recent years. Membership is and national governments around the world seek- arendra Modi’s landslide victory as India’s 15th prime minister Toffered only through the recommendation of a current member of the Society ing to identify what works and how to scale up ushered in a new era of optimism that he could effectively tackle or the Brookings Council, building a community of future leaders who are pas- and finance successful programs. Recent activi- the nation’s long to-do list. From reforming the nation’s health sionate about policy. ties have gone beyond efforts to ensure access to care and bureaucratic systems to upgrading the infrastructure to This year’s events included Society members exchanging views on the schooling to focus on the importance of learning Nmanaging relations with China, Pakistan, and the United States, his reputa- role of the U.S. Dollar in global finance with Senior Fellow Eswar Prasad, New that students are doing. tion as a can-do executive would be tested early in the new administration. To Century Chair in International Trade and Economics, and discussing global This year the LEGO Foundation made a gen- give members of the Board of Trustees, International Advisory Council, and development after 2015 with Senior Fellow John MacArthur. They also took erous two-year, $4 million grant to support new other friends of the Institution an opportunity to see the country’s progress part in a conversation on strengthening the financial system between David work on making sure that “soft skills” like execu- up close, Brookings undertook its second study tour to India in six years. The Wessel, director of the Hutchins Center on Fiscal and Monetary Policy, and tive function and critical thinking are equally as trip was led by President Strobe Talbott, then-Vice President of Foreign Policy Matthew Rutherford, former Acting Under Secretary for Domestic Finance at valued as “hard skills” like literacy and numeracy, Martin Indyk, and India Project Director Tanvi Madan, along with Chairman the U.S. Treasury. In January Senior Fellow Shadi Hamid spoke with Society since children need both to thrive. Through a pro- Vikram Mehta and Research Director Subir Gokarn of Brookings India. members about Islamic extremism. gram of rigorous research that informs the global With stops in New Delhi, Bengaluru (formerly Bangalore), Mumbai, and Going forward, the Brookings Society will continue to build on the momen- dialogue around the key elements of quality edu- Jodhpur, the traveling delegation met with a variety of public and private sec- cation, the Center and the LEGO Foundation will tum with a robust schedule of events featuring prominent Brookings experts. MORIGI PAUL BY PHOTO tor leaders who provided unique insights into the economic, social, and foreign The strength of the Society is the thoughtful contributions from its members bring complementary strengths to bear on promot- policy priorities shaping India’s future. The business leaders the group met to the policy debate, and Brookings is grateful for their active participation in ing the value of holistic learning. with were bullish on India’s future, but they highlighted the urgency of reforms the intellectual life of the Institution. to increase efficiency, improve education, and foster export-driven growth Advancing the Metropolitan Revolution including through enhanced infrastructure investment. With Indian foreign Brookings Society members Christopher Koza, Andrew Klaber, Jackie Carter, Experts in the Metropolitan Policy Program have policy and commercial interests expanding in scope, there was considerable Philip Piro, and John Zacharias (from left) at the annual Brookings-by-the-Sea identified a metropolitan revolution that is reshap- discussion about East Asia, Africa, and the Middle East, even as China and Pak- reception in the Hamptons ing how cities and metropolitan areas are foster- istan continue to demand policymakers’ attention. The U.S.-India relationship ing economic growth. The pre-Great Recession was a recurring theme, as part of a strong international order, as an economic economic model that centered on consumption partner, and as a balancer to the Chinese giant on their border. and debt is giving way to a new paradigm that can While some of the group visited Agra to see the Taj Mahal, the study tour meet the challenge of remaining competitive in a formally ended with a return to Delhi and flights home. The travelers took with highly integrated global economy. With the fed- them a deeper understanding of India, its challenges, and its aspirations. eral government mired in partisanship and many state governments adrift, it is local leaders in the Maharaja Gaj Singh and Brookings President Strobe Talbott welcome former

public and private sector who are taking the steps MORIGI PAUL BY PHOTO Member of the Indian Parliament N.K. Singh (from left) to the Umaid Bhawan to forge trade ties, upgrade workforce skills, and Trustee James Murren (right) listens to an update on Palace in Jodhpur remake their downtowns to promote innovation Brookings’s work on the post-2015 development agenda and prosperity. from Senior Fellow and Deputy Director of Global The Kresge Foundation, a longtime supporter Economy and Development Homi Kharas of the Metro Program, made a new $2.25 million grant to support research and network-building activities to advance this metropolitan revolution. Brookings Mountain West his year, Brookings and the University of Nevada, Las Vegas renewed the Brook- ings Mountain West initiative through 2019, a partnership launched in 2010. PHOTO BY SARAH MERIANS PHOTOGRAPHY & VIDEO COMPANY & MERIANS SARAH COMPANY VIDEO PHOTOGRAPHY BY PHOTO TThrough research, outreach across the region, Trustee James Rogers Trustee Peter Scher frames the conversation at the shares his views on the and the unique Brookings Curriculum for UNLV outset of a Global Cities Initiative event future of energy production students, Brookings Mountain West advances cru- as part of a panel discussion cial policy recommendations on issues affecting on economic growth and Las Vegas, the state of Nevada, and the Mountain climate change West region as a whole and brings rigorous policy research to the university’s students. The partner- ship brings Brookings experts from across the Institution to UNLV for one-week residencies that include lectures, meeting with local policymakers and media, and collaborating with counterparts at the University on a variety of research projects. The new resources will enable expanded efforts in all of these areas and allow Brookings to contribute con- structive solutions to the policy challenges facing this important region. PHOTO BY PAUL MORIGI PAUL BY PHOTO MORIGI PAUL BY PHOTO 30 31 Support for Brookings In Memoriam rookings lost two long-time members of Trustees Benjamin Jacobs, Tom Ramey, and AB Culvahouse (from left) discuss the Board of Trustees this year. John C. progress in the strategic planning process Whitehead and Samuel Pisar were valued Brookings Welcomes members of the Brookings community The Foundation’s previous investments made pos- Two New Trustees Band brought tremendous leadership and wise sible work on revitalizing older industrial cities rookings elected two new Trustees to the counsel to the governance of the Institution. that helped identify important economic trends Board in 2015. They join a distinguished and define the future focus of the Metro Program. group of leading business executives, John C. Whitehead With this generous support, Metro’s experts will academics, and community leaders continue developing and articulating a compelling 1922–2015 Bwho help govern the affairs of the Institution. John served as a Trustee for more than 25 years, vision for the next economy. The Board, which meets three times per year, including as chairman from 1992–94. He brought approves the fields of scholarly investigation and energy, dedication, and a powerful intellect to his Understanding Global safeguards the independence of the Institution’s leadership of Brookings. He was unfailingly gener- Trends and Regional Shifts work. Brookings welcomes its newest members to ous with his time and was actively engaged with The business community has a major stake in the Board of Trustees: scholars across the Institution. In recognition of his understanding the global trends that are shaping service to the Institution and the country, Brook- the economics and strategic relationships of nations Victor Hymes ings established the John C. Whitehead Senior around the world. The middle class is growing in Chief Executive Fellowship in International Diplomacy, which is cur- emerging countries, while it comes under increasing Officer and Chief rently held by Jeff Bader in the John L. Thornton strain in many advanced economies. Technology is Investment Officer China Center. Through a generous gift to Brook- advancing at a breathtaking pace, but productivity Legato Capital ings, he endowed the John C. and Nancy D. White- growth is slowing. The effects of climate change Management LLC head Chair, which is currently held by Gary Burtless are becoming more evident, but carbon emissions

in Economic Studies. Throughout his long career, continue to grow. Knowing how to adapt to these MORIGI PAUL BY PHOTO John was known for his integrity, philanthropy, and changes is essential to mitigating threats and capi-

PHOTO BY PAUL MORIGI PAUL BY PHOTO Arne Sorenson talizing on opportunities. Trustee Dominic public spirit and he enriched the world around him. Trustee and Co-Chair of President and With the support of a $1.5 million gift from Barton (left) the International Advisory moderates a Chief Executive Samuel Pisar Liberty Mutual, Brookings experts are undertak- Council Paul Desmarais, panel discussion Officer ing an ambitious research agenda to make sense 1929–2015 Jr. makes welcoming on advanced Marriott Sam contributed his global perspective and gener- remarks at the Council’s of what is happening in the most dynamic nations industries in the International, Inc. ous spirit to his 25-year affiliation with Brookings tenth annual meeting and regions and how they are interacting on eco- U.S. that also and greatly valued his service on the Board. An nomic and security issues. Liberty Mutual was included PACCAR international lawyer, author, and diplomat, he served instrumental in helping Brookings launch the Chief Executive as UNESCO’s ambassador and special envoy for Latin America Initiative, making a five-year, $2.5 Officer Ron holocaust and genocide education. Sam was born in million grant to expand work on this important Armstrong Poland and survived Auschwitz and other Nazi death region. The relationship has continued to build camps; he was awarded American citizenship by a from there and Brookings is grateful for the impor- special Act of Congress. His public service included tant investments that have made so much impor- time as an advisor to the State Department, the tant work possible. Senate Committee on Foreign Commerce, and the Joint Economic Committee of Congress, as well as

President Kennedy’s Task Force on Foreign Eco- RALPH ALSWANG BY PHOTO nomic Policy, and the International Olympic Commit- Chair Emeritus James tee. Sam was a true citizen of the world and brought Johnson (left) discusses great joy to all who knew him. Brookings’s research agenda with Trustee Victoria P. Sant during PHOTO BY PAUL MORIGI PAUL BY PHOTO a break between Board Secretary of Energy Ernest Moniz speaks with Vice meeting sessions Chair of the Board Suzanne Nora Johnson following the Secretary’s remarks at the March Board meeting

Trustee Ezra Zilkha (right) catches up with Trustee Crandall Bowles before a

PHOTO BY PAUL MORIGI PAUL BY PHOTO MORIGI PAUL BY PHOTO Board meeting session 32 33 International Advisory Council

Antoine W. van Agtmael John Elkann José Oliu Creus Co-Chairman of the IAC Chairman President Senior Adviser Fiat Chrysler Automobiles Banc Sabadell Garten Rothkopf Italy Spain

Paul Desmarais, Jr. Pablo González Guajardo Juan Pardinas Co-Chairman of the IAC Chief Executive Officer Director General Chairman and Co-CEO Kimberly-Clark de México IMCO Power Corporation of Canada Mexico Mexico

Mohammed Mahfoodh Adrian Gore Victor Pinchuk Alardhi Founder and CEO Founder Chairman Discovery Group EastOne Ltd. Rimal Investments South Africa Ukraine Oman International Advisory Council Co-Chair and Trustee J. Jon Imaz Marian Puig Rahul Bajaj CEO EXEA Paul Desmarais, Jr. speaks with Council member Chairman Repsol Spain Yukitoshi Funo and Sumio Ohtsuji Bajaj Auto Limited Spain India Itamar Rabinovich Frank Lowy President Hakeem Belo-Osagie Co-Founder Israel Institute Chairman Westfield Group Bronfman Distinguished Etisalat Nigeria Australia Nonresident Senior Fellow Nigeria The Brookings Institution Andrónico Luksic Israel Nicolas Berggruen Vice Chairman Chairman Banco de Chile Royal Dutch Shell Berggruen Holdings Chile Netherlands United States Philip Mallinckrodt Tokyo Sexwale Tobias Josef Brown Group Head of Wealth Sexwale Family Foundation Managing Director Management Republic of South Africa UCL Asia Limited Schroders PLC Hong Kong U.K. SK holdings Co. Ltd. South Korea George David Jorge Mandelbaum Chairman Chairman of the Advisory Board Kihak Sung Coca-Cola Hellenic Bottling CIPPEC (Center for the Chairman and CEO Company Implementation of Public Youngone Corporation Ten Years of Global Engagement Greece Policy) South Korea Argentina Sir Mick Davis Yukitoshi Funo PHOTO BY PAUL MORIGI PAUL BY PHOTO Chief Executive Officer, IIES PHOTO BY PAUL MORIGI Founding Partner Shmuel Meitar X2 Resources Limited Senior Advisor to the Board Founding members of the Chairman and Founder U.K. Aurec Capital Toyota Motor Corporation International Advisory Israel Japan Council (from left) Rahul Haluk Dinçer President, Retail and Insurance Jaime J. Montealegre Marcus Wallenberg Bajaj, Philip Mallinckrodt, Chairman or ten years, the Brookings International also included regional briefings and discussions on Sabancı Holding President Itamar Rabinovich, and Turkey Sigma Management, S.A. Skandinaviska Enskilda Banken Advisory Council has brought together Latin America, Europe, and East Asia. Costa Rica AB Antoine van Agtmael with Brookings President Sweden business and community leaders from To mark the tenth annual meeting, the Coun- President Strobe Talbott. Strobe Talbott Javier Monzón Dieter Zetsche across the world to share perspectives cil’s conversations at this year’s meetings included Not shown are founding introduces Spain Chairman and seek solutions to the most pressing a look back at the issues that dominated the head- members Mukesh Ambani, Vice President Hutham S. Olayan Daimler Corporation F global challenges. Now numbering 36 lines at the first meeting and how priorities had Hutham Olayan, Victor Joseph Biden President and CEO, Olayan Germany members from 25 countries on six continents, the changed over time. The group also discussed the Pinchuk, and Marcus America The Olayan Group Council brings critical perspectives to its research changing political and economic toolkits that Wallenberg agenda and expands its impact. Members of the policymakers and business leaders have at their Council engage with Brookings experts at an disposal to address the big challenges of the day Members of the International Advisory Council participate in a panel annual meeting in the spring and throughout the and what long-term trends should be on the discussion on the Iran nuclear deal at the 2015 annual meeting year in Washington and in their home countries. Brookings research agenda for the next ten years. In 2015, the Council convened for its tenth annual meeting, which included a series of brief- ings from senior policymakers, panel discussions with Brookings experts, and site visits. Over the course of three days, members heard from Vice President Joseph Biden, Secretary of State , Permanent Representative to the UN , and Associate Justice of the Supreme Court Stephen Breyer. The Council also spent time discussing important issues like the Iran nuclear deal, the Islamic State, the eco- nomic outlook, innovation and privacy, education in developing countries, advanced industries, and

energy, water, and climate change. The agenda MORIGI PAUL BY PHOTO MORIGI PAUL BY PHOTO 34 35 Brookings Institution Executive Leadership Program Leadership Councils

Brookings is led by a management team compris- ach of Brookings’s five research programs has assembled an advi- ing the president and executive vice president of sory group of business, community, and philanthropic leaders who the Institution, along with the vice presidents of provide strategic advice on important policy issues and ways to the research programs and non-research programs. maximize the impact of scholars’ recommendations. The Councils Together this team works to ensure that Brookings E convene several times annually for briefings from Brookings experts is operating efficiently and maintaining the highest and senior policymakers and working sessions on pressing topics. standards of quality, independence, and impact in all of its activities.

PHOTO BY PAUL MORIGI PAUL BY PHOTO ECONOMIC GLOBAL LEADERSHIP David Rogers The Heinz Endowments Strobe Talbott FOREIGN POLICY Strobe Talbott STUDIES COUNCIL COUNCIL President LEADERSHIP COUNCIL David M. Rubenstein Hitachi, Ltd. Wilbur Ross, Chair Suzanne Nora Johnson, Chair Benjamin R. Jacobs, Chairman Haim Saban James A. Johnson

Martin Indyk H. Rodgin Cohen, Vice Chair Yonca Brunini Dominic Barton Joseph N. Sanberg Jefferson Educational Society

Executive Vice President Sandeep Arora Deborah Duncan Alan Batkin William A. Shutzer JPMorgan Chase & Co.

Ken Bentsen L. Enrique Garcia Jeffrey Boyd David S. Steiner Tom Kaplan Steven Bennett Vice President and Chief Operating Officer Julia Coronado Lou Anne King Jensen Charles Bronfman Krishen Sud Monica Keany Jason Cummins Tawfic Khoury Paul L. Cejas Antoine van Agtmael Richard A. Kimball, Jr. Kimberly Churches Scott Evans Jonathan Schaffzin Ronald Cohen Nick Welch Peter Kimmelman Vice President for Institutional Advancement and Lorenzo Giorgianni Ercument Tokat Jonathan E. Colby Poju Zabludowicz Kohlberg, Kravis, Roberts External Relations & Co.

PHOTO BY DAY WALTERS DAY BY PHOTO MORIGI PAUL BY PHOTO MORIGI PAUL BY PHOTO Jeffrey A. Goldstein Howard E. Cox Arshad Zakaria Secretary of the Board GOVERNANCE The Kresge Foundation Martin Indyk Steven Bennett Kimberly Churches George Kellner Alan Dachs STUDIES COUNCIL METROPOLITAN Lear Corporation Kemal Dervi¸s Matt Miller Mick Davis Rebecca Arbogast LEADERSHIP COUNCIL Lennar International Vice President and Director, Global Economy and Barbara Novick Chris DeLong Elizabeth Avery AIG Lumina Foundation for Development Roberto Perli Feng Deng Education Daniel Berger Alcoa Foundation The Edward M. Bernstein Scholar Andrew Plepler Joshua Donfeld John D. & Catherine T. William D. Budinger Annie E. Casey Foundation Nancy D. Prior Ronald I. Dozoretz, M.D. MacArthur Foundation Ona Alston Dosunmu Louis W. Cabot Bank of America Steven Rattner Alfonso Fanjul McKnight Foundation Vice President and General Counsel Daniel Cruise Robert and Anne Bass Chris Rokos Theresa Fariello Microsoft Corporation Gary L. Ginsberg Central Indiana Charles Stewart Mott Ted Gayer Mark Spindel Raj Fernando Corporate Partnership / Foundation Robert D. Jensen BioCrossroads PHOTO BY RALPH ALSWANG BY PHOTO MORIGI PAUL BY PHOTO MORIGI PAUL BY PHOTO Vice President and Director, Economic Studies Paul Schott Stevens Lawrence K. Fish RBC Capital Markets Kemal Dervi¸s Ona Alston Dosunmu Ted Gayer Joseph A. Pechman Senior Fellow William Kamela Citi Yasuyuki Sugiura David Fisher The Rockefeller Foundation Jeri Kubicki The Civic Council of Greater Carl Tannebaum Bart Friedman Bruce Jones David Lieber Kansas City Rob Roy Michael Tipsord Michael Gelman Vice President and Director, Foreign Policy Michael Lopez Comcast NBCUniversal Louis Salkind Debra Valentine Susie Gelman Carol Melton Paul Desmarais, Jr. San Diego Economic Bruce Katz Heather Wingate Vartan Gregorian Development Council R. Hewitt Pate Cheryl Cohen Effron Vice President and Co-Director, Metropolitan David Zervos Andrew Gundlach Robert A. Stewart Policy Program Edgar Rios FedEx Corporation Roger Hertog Surdna Foundation, Inc. The Adeline M. and Alfred I. Johnson Chair in Peter L. Scher Ford Foundation Suzanne Nora Johnson Lynn Thoman Urban and Metropolitan Policy A. Alfred* and Judy Taubman The George Gund Foundation David Kamenetzky UnitedHealth Group Andrew H. Tisch Hampton Roads Community PHOTO BY PAUL MORIGI PAUL BY PHOTO PHOTO BY RALPH ALSWANG BY PHOTO PHOTO BY PAUL MORIGI PAUL BY PHOTO David Nassar Samer Khoury Foundation University of Nevada, Bruce Jones Bruce Katz David Nassar Claude Wasserstein Las Vegas Vice President for Communications Edward Lamont Seymour and Kate Weingarten Antoine van Agtmael Dan W. Lufkin Leigh Morris Sloane John White, Jr. Jeffrey Walker John G. Macfarlane III Chief of Staff Carol Wilner Tracy R. Wolstencroft Richard Nye Ezra K. Zilkha John O. Wynne Stewart Uretsky John G. Popp Adam and Ariel Zurofsky Vice President, Chief Financial Officer and Joseph L. Rice III

Treasurer Stephen Robert * Deceased Darrell West Vice President and Director, Governance Studies PHOTO BY PAUL MORIGI PAUL BY PHOTO MORIGI PAUL BY PHOTO WALTERS DAY BY PHOTO The Douglas Dillon Chair Leigh Sloane Stewart Uretsky Darrell West

36 37 Board of Trustees Honor Roll Cash, Contracts, and In-Kind Contributions Received July 1, 2014–June 30, 2015

David M. Rubenstein Arthur B. Culvahouse, Jr. Victoria P. Sant HONORARY TRUSTEES Nemir Kirdar $2,000,000 and Above Dominic Barton $100,000–$249,999 Gisèle Huff Co-Chair of the Board Chairman Emeritus President Founder, Executive Chairman Richard C. Blum and the Investment Company Institute Brookings O’Melveny & Myers LLP The Summit Foundation Zoë Baird and CEO Anne T. and Robert M. Bass Anonymous (6) Co-Founder and Co-CEO President Investcorp Bill & Melinda Gates Foundation Honorable Dianne Feinstein Robert John Abernethy Gail and Benjamin Jacobs The Carlyle Group Alan M. Dachs Leonard D. Schaeffer The Markle Foundation President and CEO Founding Chairman and CEO Donald F. McHenry The William and Flora Hewlett The Brown Foundation, Inc. of Paul Achleitner and Kenneth M. Jacobs John L. Thornton Fremont Group WellPoint Rex J. Bates Distinguished Professor in the Foundation Houston Deutsche Bank AG Japan International Cooperation Co-Chair of the Board Practice of Diplomacy and Richard C. Blum The Hutchins Family Foundation Canadian Department of Foreign AIG Agency Brookings Paul Desmarais, Jr. Peter Scher International Affairs Chairman and President Chairman and Co-CEO Chairman of the Washington School of Foreign Service JPMorgan Chase & Co. Affairs and International Trade Mohammed Mahfoodh Alardhi Robert Wood Johnson Foundation Blum Capital Partners, LP Glenn Hutchins Power Corporation of Canada D.C. Region and Head of Georgetown University LEGO Foundation Charities Aid Foundation Alcoa Foundation Ewing Marion Kauffman Vice Chair of the Board Corporate Responsibility Geoffrey T. Boisi Brookings Kenneth M. Duberstein JPMorgan Chase & Co. Rajan Bharti Mittal Embassy of the State of Qatar Children’s Investment Fund AT&T Foundation Chairman and CEO Co-Founder Chairman and CEO Vice Chairman Roundtable Investment Partners David M. Rubenstein Foundation Australian Civil-Military Centre– Sheryl and Chip Kaye Silver Lake The Duberstein Group, Inc. Amy W. Schulman Bharti Enterprises Limited Senior Lecturer LLC John L. Thornton Citi Department of Defence Samer Khoury Suzanne Nora Johnson Cheryl Cohen Effron Harvard Business School Mario M. Morino Louis W. Cabot, chair emeritus University of Nevada, Las Vegas Steve and Roberta Denning Barrick Gold Corporation Philip Knight Vice Chair of the Board Founder Co-Founder and Chairman Chairman Brookings Conjunction Fund Arne M. Sorenson Venture Philanthropy Partners Hanzade Do˘gan Boyner, Do˘gan Rex J. Bates Charles Koch Foundation Cabot-Wellington LLC Former Vice Chairman President and Chief Executive $1,000,000–$1,999,999 Group Alan and Jane Batkin Kohlberg Kravis Roberts & Co. Alfonso Fanjul Officer Thomas C. Ramey Goldman, Sachs & Co. Kenneth W. Dam Chairman and Chief Executive Marriott International, Inc. Former Chairman Anonymous Cheryl Cohen Effron S.D. Bechtel, Jr. Foundation Ned Lamont Max Pam Professor of American Strobe Talbott Officer Liberty International, Liberty and Blair W. Effron & Foreign Law Food and Drug Administration Nicolas Berggruen Lear Corporation President Fanjul Corp. and Florida Crystals Antoine W. van Agtmael Mutual Group University of Chicago Law School Exxon Mobil Corporation Lennar Corporation The Brookings Institution Corporation Senior Adviser Cecilia Yen Koo and the Koo Daniel Berger Garten Rothkopf Steven Rattner Steven A. Denning Family The Financial Services Forum BlackRock Financial Frank P. Lowy Robert J. Abernethy Bart Friedman Former Chairman Chairman Chairman Roger Hertog The Henry Luce Foundation President Senior Partner Ashmore EMM, LLC Willett Advisors LLC The John D. & Catherine T. Management, Inc. General Atlantic American Standard Development Cahill Gordon & Reindel MacArthur Foundation The Japan Foundation Center for Brevan Howard Lili Lynton Beatrice W. Welters Edgar Rios Co., Inc. Vishakha N. Desai, Ph.D. Global Partnership Ann M. Fudge Founder and Co-Chairperson Co-Founder and Managing The Rockefeller Foundation Ambassador Paul L. Cejas Mars, Incorporated Special Advisor for Global Affairs Paul M. Achleitner Former Chairman and CEO AnBryce Foundation Director The Korea Foundation Central Indiana Corporate The McKnight Foundation Columbia University Cheryl and Haim Saban Non-Executive Chairman Young & Rubicam Brands Wenzi Capital Partners John H. White, Jr. United Arab Emirates Lumina Foundation Partnership/BioCrossroads MetLife, Inc. Deutsche Bank AG Thomas E. Donilon Ellen V. Futter President and CEO James D. Robinson III The MasterCard Foundation Former U.S. National Security Anla Cheng The NASDAQ OMX Group, Inc. Liaquat Ahamed President Taco, Inc. General Partner and Co-Founder Advisor Richard Merkin Cheniere Energy, Inc. Northrop Grumman Corporation Former Chief Executive Officer American Museum of Natural RRE Ventures $500,000–$999,999 Senior Partner Fischer Francis Trees and Watts, History Tracy R. Wolstencroft Anonymous Microsoft Corporation Chevron Open Society Foundations O’Melveny and Myers Inc. CEO Haim Saban Erin M. Mindich Richard Perry Brian L. Greenspun Heidrick and Struggles Chairman and CEO Laura and John Arnold Foundation W. Edmund Clark Lawrence K. Fish Dominic Barton Chairman and CEO Saban Capital Group, Inc. The Charles Stewart Mott The Clearing House Association Victor Pinchuk Foundation Former Chairman and CEO Australian Government, Global Managing Director Greenspun Media Group Daniel Yergin Citizens Financial Group, Inc. Department of Foreign Affairs Foundation Betsy Z. Cohen Steven Rattner McKinsey & Company, Inc. Vice-Chairman Ralph S. Saul Pete Higgins IHS, Inc. Former Chairman National Institutes of Health Sir Ronald Cohen and Maureen White Cyrus F. Freidheim, Jr. and Trade Robert M. Bass Founding Partner CIGNA Corporation Chairman British Foreign & Commonwealth Patient-Centered Outcomes Art Collins Repsol Foundation President Second Avenue Partners Lei Zhang Old Harbour Partners, LLC Keystone Group, L.P. Chairman and CEO Michael P. Schulhof Office Research Institute Comcast NBCUniversal Rio Tinto Victor L. Hymes Hillhouse Capital Management Chairman and CEO David Friend Porticus Jonathan Coslet Wilbur and Hilary Ross Alan R. Batkin Chief Executive Officer and Global Technology Investments Carnegie Corporation of Executive Chairman Chairman Chief Investment Officer Daniel B. Zwirn New York Qualcomm Incorporated The Council for the Rob Roy, Switch Carbonite, Inc. Converse Associates, Inc. Legato Capital Management LLC Managing Partner Lynn Thoman The Rodel Foundations Robert E. Rubin Zwirn Family Interests, LLC Co-Chair Annie E. Casey Foundation United States and Italy Henry Louis Gates, Jr. Crandall Bowles Shirley Ann Jackson, Ph.D. Leon Lowenstein Foundation Centers for Medicare & Chris Rokos Howard Cox Joseph N. Sanberg Director, Hutchins Center for Chairman President African & African American Medicaid Services Searle Freedom Trust Alan and Lauren Dachs Victoria and Roger Sant The Springs Company Rensselaer Polytechnic Institute Larry D. Thompson Research Executive VP of Governmental Government of Denmark Securities Industry and Financial Daimler Peter L. Scher Benjamin R. Jacobs Hanzade Do˘gan Boyner Harvard University Affairs, General Counsel and Echidna Giving Markets Association George A. David Schlosstein-Hartley Family Vice Chairwoman Senior Advisor /Founder Corporate Secretary William A. Haseltine, Ph.D. Do˘gan Holding Sirketler¸ Grubu The JBG Companies PepsiCo, Inc. Ford Foundation Alfred P. Sloan Foundation The Davis Foundation Foundation President A.¸S. Mark T. Gallogly Edwin Soeryadjaya LLP Eric E. Schmidt Kenneth M. Jacobs The Haseltine Foundation Michael L. Tipsord Paul L. Cejas Chairman and CEO Chairman Vice Chairman and Chief and Elizabeth B. Strickler State Farm Mutual Automobile Paul Desmarais, Jr. Eric S. Schwartz Lazard Chairman Haseltine Global Health, LLC Operating Officer Genentech–A Member of The Insurance Company Haluk Dinçer Gerald Schwartz PLC Investments, Inc. State Farm Insurance Companies Klaus Kleinfeld Teresa Heinz Roche Group Surdna Foundation Jian Ding and Heather Reisman Chairman and CEO W. Edmund Clark Chairman Andrew H. Tisch The Kresge Foundation Swedish Ministry for Foreign Ronald I. Dozoretz, M.D. Shell Alcoa, Inc. Heinz Family Foundation Retired Executive Co-Chairman of the Board and Affairs TD Bank Group Chairman of the Executive Liberty Mutual Group Every Child Capital Fund of the SK holdings Philip H. Knight Joel Z. Hyatt Committee Government of Norway Taipei Economic and Cultural Greater Cincinnati Foundation Statoil Abby Joseph Cohen Chairman James A. Johnson, chair Loews Corporation President, Global Markets Nike, Inc. Omidyar Network Representative Office in the Alfonso Fanjul Tom Steyer and Kat Taylor emeritus Institute; and Senior Stephen M. Wolf United States James Murren Chairman Robert C. Pozen and the Ashurst Raj Fernando Government of Switzerland Investment Strategist, Managing Parnter Chairman and CEO Johnson Capital Partners Foundation Turkish Industry and Business Fiat Tang Xiaodan Goldman, Sachs & Co. Alpilles, Inc. MGM Resorts International Association (TÜSIAD)˙ Ann Dibble Jordan The Andrew H. and Ann R. Tisch Fidelity Investments Lynn Thoman and the Leon Betsy Z. Cohen James Rogers Ezra K. Zilkha UN University World Institute Chief Executive Officer President Foundation Government of Finland Lowenstein Foundation Retired Chairman and CEO Vernon E. Jordan, Jr. for Development Economics The Bancorp Duke Energy Of Counsel Zilkha & Sons, Inc. UnitedHealth Group, Inc. David and Marianna Fisher Toyota Akin Gump Strauss Hauer & Research Arthur R. Collins Washington University Pablo R. González United Parcel Service Wilbur Ross Feld, LLP Antoine van Agtmael, Sunrise Managing Partner Chairman and Chief Strategy in St. Louis Google Inc. U.S. Agency for International theGROUP Officer Richard A. Kimball, Jr. Foundation The George Gund Foundation Development Howard Cox WL Ross & Co. LLC $250,000–$499,999 The Walton Family Foundation Hampton Roads Community Alex C. Walker Foundation Special Limited Partner Tracy R. Wolstencroft Tom and Nancy Wall, IV Greylock Anonymous Foundation Altman/Kazickas Foundation The Heinz Endowments John Hazen White, Jr. Bank of America Pete Higgins John O. Wynne 38 39 Honor Roll

Xcoal Energy & Resources Tom Kaplan, Wolfgang Puck Fine Marcus Wallenberg, Wallenberg Sojitz Foundation Victoria Foley Michael L. Tipsord Erik Blumenkranz Jennifer Scully Lerner Jerry Yang Dining Group Foundations AB Sumitomo Mitsui Banking The Lee and Juliet Folger Fund Toshiba America, Inc. Zoë Baird Budinger Leonard Levie Chi Zhang George A. Kellner Claude Wasserstein Corporation Patrick Frayne Ranvir Trehan and William Budinger Wayne P. Limberg Lei Zhang Korea Foundation for Advanced Robert M. Weekley The Nelson S. Talbott Foundation David Friend UNICEF Erin E. Bullinger Amy Liu Ezra K. Zilkha Studies Beatrice W. and Anthony Welters Tata Group of companies Ann M. Fudge Paul Verbinnen and Cecilia Greene Adem Bunkeddeko Eric Lohr D.B. Zwirn Foundation Korea International Trade Daniel H. Yergin and Angela Stent Office for the John L. Furth Verizon Communications Theodore Bunzel Michael Love Association (KITA) Arshad Zakaria Coordination of Humanitarian Gardner Grout Foundation The Volcker Alliance Jacqueline Carter Claire Macelroy $50,000–$99,999 Linden Trust for Conservation Affairs General Motors Foundation VOX Global Samuel G. Charap Lissette Marcelo Anonymous (3) Dan W. Lufkin, Peter Jay Sharp $25,000–$49,999 University of Chicago Donna Gerstenfeld Seymour and Kathleen Weingarten Morris Clarke Jeffrey Marlough All Nippon Airways Co., Ltd. Foundation Anonymous (3) Visa Inc. Goldman Sachs John C. Whitehead Morton and Shirley Cohen Daniel Martinez Allen & Company LLC John G. Macfarlane III The AAA Foundation for Traffic Enzo Viscusi, Eni S.p.A. Patrick W. and Shelby Proby Gross Stephen M. Wolf Roberta Cohen Eduardo Martinez Amgen Philip Mallinckrodt, The Safety Volvo Research and Educational Agnes Gund Xerox Corporation Stephen Cohen Donald F. McHenry Asthma and Allergy Foundation Schroeder Foundation American Express Foundations The Harris Family Foundation Rachel Zhang Lew and Marge Collens Fund Milton Mitchell of America The Markle Foundation Aramco Services Company Judy and Fred Wilpon Family June R. Hechinger Stephen Cordani Stephen Morris Martin Neil Baily The MITRE Corporation Association of American Railroads Foundation, Inc. Hellman Foundation $5,000–$9,999 Paul Courant Kara Ramirez Mullins Rahul Bajaj Mitsubishi Corporation (Americas) The Bank of Tokyo-Mitsubishi WSP/Parsons Brinckerhoff Fiona Hill Anonymous The Morton and Dina Danseyar and Sean F. Mullins Banco de Sabadell S.A. The Leo Model Foundation UFJ, Ltd. ZTE USA Hitachi, Ltd. American Federation of Teachers Family Foundation Sakura Namioka Bank of America Merrill Lynch Ambrose Monell Foundation Heinrich Böll Foundation ITOCHU International Inc. Robert O. and Sylvia Blake Keith Darden New Venture Fund Hakeem Belo-Osagie Jaime J. Montealegre Bristol-Myers Squibb Foundation $10,000–$24,999 Karel Janeˇcek William M. Cameron Paul Diperna Norris, Tysse, Lampley & Blackstone Charitable Foundation National Association of Insurance CAF-Development Bank Anonymous (3) Joel and Ricki Kanter Kimberly Churches Jill Dougherty Lakis, LLP Crandall C. Bowles Commissioners of Latin America Liaquat and Meena Ahamed James M. Kemper Convergence Center for Policy Courtney Dunakin Robert C. Nurick The Andrea and Charles National Science Foundation The Morris and Gwendolyn American Society of Clinical Lee Klingenstein Resolution Paul Effron Robert Orttung Bronfman Philanthropies New Silk Route Cafritz Foundation Oncology Robert and Arlene Kogod Charles W. Duncan, Jr. Elliot Company of Indianapolis, Steven Pearson Brothers Brook Foundation New York University Frank Carlucci AttorneyFee LegalZoom Nancy M. Folger Inc. Peter Person Tobias Josef Brown Nihon Keizai Shimbun-sya The Coca-Cola Company Eileen A. Aptman Toby Devan Lewis Forum for the Future of Thomas Elliott Marc Peters China-United States Exchange (NIKKEI) ConocoPhillips The Loreen Arbus Foundation Linklaters LLP, on behalf of the Higher Education Sydney Farrar Philip A. Piro Foundation Noble Energy Cummins Inc. Arnhold Foundation Advancing Good Governance William H. Frey Florida International University Samuel Plimpton The Civic Council of Nomura Foundation Kenneth W. Dam Astra Capital Management in International Development Leslie I. Gold, Ph.D. Charles Freeman William Eric Pomeranz Greater Kansas City Northern Trust EDF Inc. The Atlantic Philanthropies Seminar Susan and John Gutfreund Ellen V. Futter Samuel Price Abby Joseph Cohen Richard Nye Edith B. Everett BAE Systems, North America Gordon Litwin and Anne Luzzatto Katherine Clark Harris Toby and Charles Gati Yuanyuan Qin H. Rodgin Cohen The Olayan Group French Ministry of Foreign Affairs Joanne Barker LMI Government Consulting Phil Harvey Ted and Rachel Gayer Blair Ruble Jonathan E. Colby PepsiCo GEICO Steffi and Robert Berne Malcolm R. and Celia Lovell Cynthia Helms Matthew Gebhardt Nicholas Rugoff The Commonwealth Fund Ploughshares Fund Greater Phoenix Economic Council The Boeing Company Bertil P. Lundqvist Marie L. Knowles Elizabeth Gemmill Raymond Ryan Cornerstone Macro John G. Popp Teresa Heinz Kerry Geoffrey T. Boisi and the Monica Mandelli Rebecca Liao Elisa B. Glazer The Sasakawa Peace Foundation Credit Suisse Potomac River Capital, LLC Honda North America, Inc. Boisi Family Foundation Edward and Dale Mathias Bruce and Virginia MacLaury David B. Golder B. Francis Saul II The Crown Family Marian Puig Frank F. Islam Anders Brag John P. McCormick State of Maryland Department Alexis Gregory Foundation Henry B. Schacht Deborah L. Duncan Thomas C. Ramey The Israel Institute Paul Britton Arjay Miller of Labor Licensing and Scott Grinsell Robert Schulz ECGRA and Perrin Ireland Japan Bank for International The Brodsky Family Foundation Mitsui & Co. (U.S.A.), Inc. Regulation (DLLR) Marion Guggenheim Michael Schwartz Facebook Joseph L. Rice III Cooperation Richard C. Bush Allison Nathan Betty Ann Ottinger Steve and Sheila Hamp Naveen Shahani The Fascitelli Foundation San Diego Regional Economic Peter A. Joseph Louis W. Cabot Embassy of the Kingdom of the James and Theodore Pedas Hope M. Harrison Henry Silver Mimi Frankel, Frankel Family Development Corporation Robert N. Kaplan Carter Cafritz Netherlands Family Foundation Nancy Maisto Hewett Michael Sklaroff Foundation Sanofi US Betsy Karel Conrad Cafritz The Nippon Foundation Marie Ridder Ronda Hodges Hendrith Vanlon Smith Mitzi and Cyrus Freidheim Dr. Fay L. Shutzer The Kern Family Foundation Caterpillar Inc. NTT Corp. David Rogers Kent Insley Alexander Sokolowski Bart Friedman and William A. Shutzer Peter Kimmelman Colorado Department of Health Gordon and Dailey Pattee Robert J.T. Rosenfeld Inter-American Development Bank Marjorie H. Sonnenfeldt and Wendy A. Stein Social Security Administration Knowledge Society Institute Care Policy and Financing Dina and George Perry Frederick Stavis Robert Jackson Constanze Stelzenmüller Susie and Michael Gelman Arne and Ruth Sorenson Robert E. Marks Everett R. Cook Steven Pifer Paul and Chandler Tagliabue Donald Jensen Santiago Torres Jeffrey A. Goldstein David S. and Sylvia Steiner Marubeni America Corporation Corning Incorporated Foundation Christopher Reynolds Foundation Margaret L. Tomlinson Taylor Johnson Peeranut Visetsuth Good Ventures Robert Stewart Robert R. McCormick Foundation Arthur B. Culvahouse, Jr. Frederic A. and Susan Rubenstein John Usdan Gerard Jones Frank A. Weil Graham Capital Management Krishen Sud McKinsey & Company, Inc. The Curtis Family Foundation Amy Schulman John S. Weston Marvin Kalb Robert Weinberger Andrew Gundlach, Taconic Capital Advisors LP Mitsubishi Heavy Industries Davis Polk & Wardwell, LLP Shimizu Corporation Malcolm H. Wiener Bruce Katz Shannon and Paul Wolfe Anna-Maria and Stephen Strobe Talbott America, Inc. Porter Dawson Stanley S. Shuman Mark Katz George Yin Kellen Foundation A. Alfred Taubman Morgan Stanley Laura A. DeFelice Skoll Centre for Global Up to $4,999 Katherine Kelleher Felicity Yost William A. Haseltine Time Warner, Inc. Mario M. Morino Joshua Donfeld Entrepreneurship Anonymous (11) Thomas L. Kempner Huntsman Foundation Ercument Tokat Philip D. Murphy The Honorable Kenneth M. Emily and Robert E. Smith Susan Beth Anders Douglas Kiessling Lou Anne King Jensen Tudor Investment Corporation Lisa O’Kelly Duberstein James E. Staley William J. Antholis Andrew Klaber James A. Johnson United Technologies Corporation Peter G. Peterson Foundation R.S. Evans Foundation Andrew and Patricia Steffan Aspen Institute Robert Kleinberg Jefferies, LLC U.S. Department of Health & Samuel Pisar Nick Farmer Sidney Stern Memorial Trust Harley D. Balzer Jim Klopper The Jefferson Educational Society Human Services Raytheon Company Roger C. Faxon Sumitomo Corporation of America William Horton Beebe-Center Christopher S. Koza Brookings strives for completeness The Jenesis Group U.S. Department of Transportation James D. Robinson III Frank and Kathy Finelli John Templeton Foundation Steven J. Bennett Phyllis Jo Kubey and accuracy in this Honor Roll. Bernard van Leer Foundation Jonathan Schaffzin Lawrence K. Fish Larry D. Thompson John Beyrle Dan Henry Lee III We regret any omissions or errors. 40 41 STATEMENT OF ACTIVITIES STATEMENT OF FINANCIAL POSITION Years Ended June 30, 2015 and 2014 (in thousands) As of June 30, 2015 and 2014 (in thousands) Preliminary and Unaudited* Preliminary and Unaudited*

TEMPORARILY PERMANENTLY FY 2015 FY 2014 2015 TOTAL 2014 TOTAL UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL ASSETS OPERATING ACTIVITIES Cash and cash equivalents $ 42,076 $ 41,849 Revenue and Support Grants, contributions and accounts receivable, net 74,374 90,492 Investment return designated for operations $ 10,519 $ 3,897 – $ 14,416 $ 13,463 Inventory 294 278 Grants, contracts, and contributions 13,305 61,539 $ 1,898 76,742 89,726 Investments 320,925 321,910 Brookings Press 1,710 – – 1,710 1,829 Property and equipment, net 39,455 39,714 Facility and other revenue 3,012 (300) – 2,712 2,544 Other assets 4,834 1,755 Net assets released from restrictions— 77,595 (77,595) – – – TOTAL ASSETS 481,958 495,998 Satisfaction of program restrictions Total Operating Revenue 106,141 (12,459) 1,898 95,580 107,562 LIABILITIES AND NET ASSETS LIABILITIES OPERATING EXPENSES Accounts payable and accrued expenses 6,525 7,116 Program Services Notes payable, bonds payable and lines of credit 48,339 40,659 Economic Studies 18,045 – – 18,045 17,191 Accrued compensated leave 2,083 1,810 Foreign Policy 24,416 – – 24,416 22,907 Accrued post-retirement benefit obligation 2,107 2,084 Global Economy and Development 10,321 – – 10,321 10,554 Deferred revenue 1,691 1,112 Governance Studies 7,337 – – 7,337 6,846 TOTAL LIABILITIES 60,745 52,781 Metropolitan Policy Program 11,628 – – 11,628 11,951 NET ASSETS Other Research 10 – – 10 160 Unrestricted 202,238 212,657 Brookings Press 2,457 – – 2,457 2,565 Temporarily restricted 135,238 148,721 Communications 2,452 – – 2,452 2,388 Permanently restricted 83,737 81,839 Total Program Services 76,666 – – 76,666 74,562 TOTAL NET ASSETS 421,213 443,217 Supporting Services TOTAL LIABILITIES AND NET ASSETS $481,958 $495,998 Management and General 24,422 – – 24,422 20,960 Fundraising 3,152 – – 3,152 3,462 Operating RevenuesProgram Services Expenses Total Operating Expenses 104,240 – – 104,240 98,984 Net Operating Activity 1,901 (12,459) 1,898 (8,660) 8,578 Change in net assets before non-operating 1,901 (12,459) 1,898 (8,660) 8,578 86% 32% activities Gifts and Grants Foreign Policy

NON-OPERATING ACTIVITIES 24% Investment return in excess of amounts 2% Economic Studies Publications designated for operations 15% Realized gain (loss) on sale of investments 9,803 2,019 – 11,822 10,489 Metropolitan Policy Program 10% Unrealized gain (loss) from investments (10,459) (1,024) – (11,483) 32,033 Endowment 10% Governance Studies Interest and dividends, net 7,626 1,878 – 9,504 1,296 Investment return designated for operations (10,519) (3,897) – (14,416) (13,463) 2% 3% Miscellaneous Publications Total investment return (loss) in excess of (3,549) (1,024) – (4,573) 30,355 amounts designated for operations 13% Global Economy and Other Non-Operating Activities Development Loss on Bond Debt Refinancing (8,748) – – (8,748) – 3% Total Non-Operating Activities (12,297) (1,024) – (13,321) 30,355 Communications Change in net assets before post-retirement (10,396) (13,483) 1,898 (21,981) 38,933 Notes: related changes other than net periodic As a nonprofit and scientific organization, Brookings­ is exempt from federal income taxes under section 501(c)(3) of the Internal post-retirement benefit cost Revenue Code. The Institution also qualifies as a publicly supported organization under section 170(b)(1)(A)(vi) of the code. Post-retirement related changes other than (23) – – (23) 64 Brookings policy is to make an annual investment spending allocation for the support of operations. This amount is calculated net periodic post-retirement pension cost based on 70% of the prior year’s spending adjusted for inflation and 30% of 5% of the market value of the investments as of CHANGE IN NET ASSETS (10,419) (13,483) 1,898 (22,004) 38,997 December 31 of the prior fiscal year. Certain reclassifications of prior year balances have been made to conform to the current year Net assets, Beginning of year 212,657 148,721 81,839 443,217 404,220 ­presentation. *A copy of the Institution’s audited financial statements is available by request. Net assets, End of year $202,238 $135,238 $83,737 $421,213 $443,217 42 43

Gifts and Grants (86%) By the Numbers July 1, 2014–June 30, 2015

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