THE COMMITTEE FOR ECONOMIC DEVELOPMENT 2000 ANNUAL REPORT

SHAPING AMERICA’S FUTURE

An Impact Agenda

THE BEST OF BUSINESS THINKING SHAPING AMERICA’S

An Impact Agenda

ur new century presents opportunities, challenges, and more than a few quandaries for Obusiness, government, and all American citizens. Staying ahead of changing conditions and clarifying long-term problems and possibilities are at the heart of CED’s approach to policymaking. CED’s ability to craft practical solutions in a fast-paced environment makes CED more important to the business community and the nation than ever before. For nearly 60 years, CED has helped shape the nation’s policy agenda. CED’s impact on economic policy, on education and the U.S. workforce, and on international trade and finance has its origins in CED’s post-war role in guiding the United States from a wartime to a peacetime econo- my. In recent years, CED has helped drive the deregulation efforts of the 1970s, imple- ment education reform efforts in the 1980s, and sustain the movement for lower federal deficits and faster adjustment to global economic change in the 1990s. As we demonstrate in this report, 2000 was an exceptionally rich and productive year for CED. In addi- tion to issuing policy statements on subjects CED Chairman Frank P. Doyle and President Charles E.M. Kolb

2 FUTURE

ranging from international finance to welfare reform, we conducted a broad-based, strategic outreach program to ensure that CED’s message is heard and makes a difference. Working on several fronts: ➤ CED has actively engaged its Trustees through Congressional testimony, community forums, policy addresses, and media appearances. ➤ CED has leveraged its impact and reach through partnerships and cooperative ventures with a wide variety of organizations and corporations. ➤ During the 2000 Presidential and Congressional election, CED provided an important resource for candidates and newly-elected officials.

➤ CED has become an important “go to” source for solid research and informed opinion for reporters, government officials, and business leaders. We are also pleased that CED is in a growth mode, and that positive results of our multi-year effort to strengthen CED’s organizational, institutional, and financial structure are emerging. CED’s Trustees are proud of the impact CED has on the national agenda. We are equally proud of the respect our organization has earned in the public arena. The hundreds of American businesses, foundations, and individuals that support CED’s work know that in CED, their investment in the best of business thinking is showing a positive return.

Frank P. Doyle Charles E.M. Kolb Chairman President Committee for Economic Committee for Economic Development Development Retired Executive Vice President, GE

The Committee for Economic Development (CED) is an independent, nonpartisan organization of over 200 business and education leaders, dedicated to policy research on major economic and social issues and the implementation of its recommendations by the public and private sectors. CED Trustees are Chairmen, Presidents, and senior executives of the nation’s largest and most respected corporations and universities. Since 1942, CED Trustees have devoted their time, skill, and energy to developing policies promoting economic growth and greater opportunity for all Americans. CED has played a pace-setting role in strengthening the federal budget process and fostering stable economic growth with high employ- ment. In international trade and investment, CED has consistently supported open markets, free of protective barriers, and has been outspoken on the need to bolster U.S. competitiveness through public and private strategies that recognize the growing interdependence of a global economy. CED’s landmark studies on education and child development have alerted the nation to the economic and social consequences of education- al failure and have placed American business in the vanguard of the movement to reform the public schools.

3 EDUCATION AND

Support and Improve Educational Testing: New CED Study

new CED policy statement provides an excellent guide to the White House, Congress, the states, A and the public as they develop educational testing strategies to enhance student achievement. Measuring What Matters: Using Assessment and Accountability to Improve Student Learning urges public support for testing, arguing that we cannot improve what we cannot measure. The report was prepared by a Trustee sub- committee led by Roy J. Bostock, Chairman of B/com3 Group, Inc., and Edward B. Rust, Jr., Chairman and CEO of State Farm Insurance. The subcommittee’s next effort will focus on finance and access issues in early childhood education. CED Education Subcommittee Co-Chairmen Roy J. Bostock (right) and Edward B. Rust, Jr.

Houston, Atlanta, Raleigh, New York—MetLife-CED Education Roundtables

hen-Superintendent of Houston’s Schools, Rod Paige, (now TSecretary of Education) launched the first in a series of Education Roundtables CED is conducting with the MetLife Foundation. The Houston Roundtable was held in December 2000. MetLife and CED are traveling to five cities across the United States to launch dialogues among parents, teachers, and students. The Roundtables will highlight the results of The Metropolitan Life Survey of the Rod Paige, U.S. American Teacher 2000: Are We Preparing Secretary of Education (then-Superintendent Students for the 21st Century? of Houston’s Schools) On February 7, 2001, CED and MetLife, spoke at the MetLife- CED Roundtable working with the Georgia Partnership for on Education.

4 THE WORKFORCE

Excellence in Education, held the second Roundtable in Atlanta. On March 22, the third Roundtable was conducted in Raleigh in cooperation with the Public School Forum, and the fourth Roundtable was held in New York City on April 26. The Los Angeles Roundtable will be held fall 2001.

Welfare-to-Work

educed welfare caseloads are an important goal, but they do not ensure employment or reduced Rpoverty. Former welfare recipients and their families need incentives and supports to encourage employment. States, too, need to prepare “rainy day” funds to cushion economic downturns. This strategy, detailed In CED’s 2000 policy statement, Welfare Reform and Beyond: Making Work Work, will become even more important in next year’s welfare legislation reauthorization debate. The debate will emphasize poverty reduction and address major issues raised in the CED report, such as the effectiveness of job placement, child care, transportation, and job training facilities. The report was co-chaired by Rex D. Adams, Dean of the Fuqua School of Business at Duke University, and Matina S. Horner, Executive VP of TIAA-CREF.

Representative Nancy Johnson (R-CT) and CED President Charles Kolb at the release of the CED welfare-to-work report. In a letter to her Congressional colleagues Rep. Johnson said, “CED is perhaps the best known and most widely respected business group that takes positions on public policy. I believe this report is the first careful study of the early effects of welfare reform by a mainstream, progressive group with a record of publishing nonpartisan, careful studies of critical public issues.”

5 EDUCATION AND

New Prospects for Older Workers

ED has joined with AARP and the National Older Worker Career Center to form a standing C coalition that will develop an advocacy strategy around CED recommendations for older workers. In September, CED and the Center for Strategic and International Studies (CSIS) jointly sponsored a major international conference, “Addressing the Aging of the Global Workforce.” Representatives from CED counter- part organizations in Australia, Germany, Japan, Spain, and Sweden participated in the Washington, D.C. forum that drew on the findings of CED’s 1999 report New Opportunities for Older Workers which calls for changes in public and private retirement policies and in business practices to make work a more attractive option to older Americans and their employers.

Senator Judd Gregg (R-NH) above, Chairman of the National Commission on Retirement Policy, Chairman of the Senate Budget Committee’s Task Force on Social Security, and Co-chair of the Senate Republican Leadership’s Social Security Task Force, spoke at the CED/CSIS forum on older workers.

CED Trustee William Haseltine, Chairman and CEO of Human Genome Sciences, Inc., spoke on dramatic medical advances that will improve the quality of life and longevity of future generations.

6 THE WORKFORCE

New Project — Employers and Health Care

he current U.S. health care system is unsustainable, and has major flaws that must be addressed. TA better health care system would provide affordable health coverage to all Americans and promote improvements in the health of our population. This CED project will examine problems related to costs, quality, and access to care, especially for low- wage workers of small employers. The project is co-chaired by Peter A. Benoliel, Chairman, Executive Committee, Quaker Chemical Corporation; Jerome Grossman, Chairman and CEO, Lion Gate Management Corporation; and Steffen E. Palko, Vice Chairman and President, Cross Timbers Oil Company. The first meeting of the working group was convened in October 2000 at the Commonwealth Fund in New York.

Clockwise from top right, Peter A. Benoliel, Steffen E. Palko, and Jerome Grossman

New Project — Increasing the Supply of Science and Engineering Talent

very year, U.S. colleges award fewer bachelor’s degrees in computer science, mathematics, Eand engineering. Without a strong future supply of science and engineering talent, future U.S. success in these areas as well as our nation’s overall rate of productivity is in jeopardy. The newly-launched CED project examining how to reverse these trends is co-chaired by Christopher D. Earl, Managing Director of Perseus Capital, LLC, and William Haseltine, Chairman and CEO of Human Genome Sciences, Inc.

7 DOMESTIC

CED Frames Key Election Issues

efore the fall 2000 campaign season, CED developed CED: On the Issues to educate candidates, Bvoters, and newly-elected officials. Based on CED’s current research agenda, On the Issues provides a series of quick, informative two-page overviews of topics ranging from CED: education to Social Security to international trade. ON THE ISSUES THE BEST OF BUSINESS THINKING

In September, CED hosted a COMMITTEE FOR ECONOMIC DEVELOPMENT pre-election Washington debate and discussion between the two chief advisors on Social Security reform to the Bush and Gore campaigns. Speaking with reporters on the candidates’ proposals were (seated left) Bush advisor Lawrence B. Lindsey, now Assistant to the President and Director of the National Economic Council, and Gore advisor Alan S. Blinder of Princeton University.

A Business Voice for Campaign Finance Reform

ith recent Senate approval of campaign finance reform, major changes in political fund W raising are now within reach, thanks to the work of dedicated public servants and the work of organizations like CED. Much of the program outlined in CED’s 1999 policy statement Investing in the People’s Business: A Business Proposal for Campaign Finance Reform is mirrored in legislation moving through Congress in 2001. In late 2000, CED commissioned a nation-wide poll that showed overwhelmingly that business leaders support campaign finance reform and CED’s call for a ban on soft money.

8 REFORM

Since CED released its report in 1999, CED Trustees have been actively engaged in working to reform the political finance system. Over 300 business and civic leaders from across the country have publicly endorsed CED’s campaign finance reform plan. CED President Charles Kolb has discussed campaign finance reform on numerous national television broadcasts including the ABC, CBS, and NBC evening news broadcasts, the Newshour with Jim Lehrer, and MSNBC’s “Hardball.” In 2000, CED was honored for its work in campaign finance reform by the League of Women Voters of Chicago and by Common Cause of New York. CED participated in campaign finance reform events at both the Democratic and Republican national conventions. CED is grateful to The Pew Charitable Trusts, the Carnegie Corporation of New York, and The Joyce Foundation for their generous support of this project.

On February 12, 2001, CED and Americans for Reform hosted a town hall forum at Northwest- ern University in Chicago focusing on campaign finance reform featuring Senators John McCain and Russell Feingold. Later that day, CED Trustee Ron Grzywinski, Chairman of Shorebank Corporation, hosted a private discussion with Senators McCain and Feingold, Representative Mark Kirk, and 30 Chicago business leaders to discuss how to get more business leaders involved in the reform movement. At that session from right, Senator Feingold, Senator McCain, Representative Kirk, and CED President Charles Kolb.

9 DOMESTIC

Reforming Immigration Policy

n this new study, CED argues that a flexible, efficient, and market-friendly immigration system Ican help America meet changing economic and social conditions. The study urges reform in our immigration procedures and administration with a greater emphasis on labor market skills.

Representative Zoe Lofgren (D-CA), left, from Silicon Valley spoke at the March 2001 release of the CED report, Reforming Immigration: Helping Meet America’s Need for a Skilled Workforce. CED Immigration Policy project co-chairmen Christopher D. Earl, Managing Director of Perseus Capital, LLC (left), and H.V. Jones, Office Managing Director of Korn/Ferry International, Inc.

Legal Reform

alling the nation’s “litigation lottery” ineffective in compensating Americans for injuries, CED’s C2000 report Breaking the Litigation Habit urged Early Offers and Auto Choice insurance as practical alternatives to litigation. Trustees Roderick M. Hills, Chairman, Hills Enterprises, and Martin B. Zimmerman, Vice President of Governmental Affairs, Ford Motor Co., co-chaired the project.

House Majority Leader Dick Armey (R-Texas, left) spoke to CED Trustees and guests at the release of Breaking the Litigation Habit. With Rep. Armey are from left, CED President Charles Kolb and CED legal reform task force co-chairmen Roderick M. Hills and Martin B. Zimmerman.

10 REFORM

Government, Business, and E-Commerce

he decisions of business and government leaders can have an extraordinary influence on the Tdevelopment of the new-economy. CED’s new policy statement, The Digital Economy: Promoting Competiton, Innovation, and Opportunity, addresses four key areas of public policy affecting technological and commercial developments: ➤ Competition Policy - antitrust, economic regulation, and mergers ➤ Innovation and Intellectual Property - patents and copyright ➤ Privacy and Security - federal privacy standards and encryption ➤ Digital Divide - Internet access and literacy

The project was led by Irwin Dorros, President, Dorros Associates; Robert H. Lessin, Chairman, Wit Soundview Group, Inc.; and Ellen R. Marram of North Castle Partners.

CED’s report on e-commerce was released in Washington in May 2001 at the first “State of the Net” forum co-hosted by CED and the Internet Education Foundation. Participants included Representative Bob Goodlatte (R, VA, standing) and a panel featuring CED Trustee Carolyn Chin, Chairman of Commtouch and Kindmark; Lincoln Hoewing, Assistant Vice President, Verizon Communications; Mark Lloyd, Executive Director, Civil Rights Forum on Communications Policy; Bruce MacLaury, President Emeritus, The Brookings Institution; and Anthony Wilhelm, Director, Communications Policy Program, the Benton Foundation.

New Project — Judicial Selection

s the rising tide of money flowing into judicial campaigns corrupting the integrity of the American Ijudicial system? A new CED working group will consider reforms that can restore respect and confidence into the judicial selection process. Derek Bok, President Emeritus of Harvard University, and Roderick M. Hills, Chairman of Hills Enterprises, Ltd., co-chair the project.

11 INTERNATIONAL

Financial Stabilization

he failure of international financial institutions and some developing country governments to Tadapt to changing markets helped trigger some of the world’s recent financial crises. That is the conclusion of Improving Global Financial Stability, which outlined a unique package of reforms to place the international financial system on a more stable footing.

Stanley Fischer, (left) IMF First Deputy Managing Director, speaking at the May 2000 release of Improving Global Financial Stability.

Improving Global Financial Stability was co-chaired by Kathleen B. Cooper (above center), Chief Economist of Exxon Mobil Corporation; and George F. Russell, Jr., (right), Chairman of Frank Russell Company.

Normalize Trade Relations with China

ED joined the debate surrounding U.S.-China Trade relations with its statement The Case for C Permanent Normal Trade Relations with China, which presented a clear rationale for how permanent normal trade relations between the two countries are in the best interest of American workers and the U.S. economy. In March 2000, CED and the World Affairs Council of Northern California co-hosted an address on China trade relations with the San Francisco Bay Area business community and Alan P. Larson, Under Secretary of State for Business, Economic, and Agricultural Affairs.

12 TRADE

The New Russian Economy

“ ussia: Prospects for Economic Renewal: A U.S.-Russian Business Dialogue on New Forms of R Economic Partnership” (May 2000) focused on the opportunities and challenges in the new Russian economy.

Russia Forum panelists, from left, George F. Russell, Jr., Chairman, Frank Russell Company; Scott Blacklin, President, American Chamber of Commerce in Russia; Bernard Sucher, Troika Dialog; Peter Charow, Executive Vice President, EastWest Institute; Aleksandr V. Surikov, Economic Senior Counselor, Embassy of the Russian Federation.

Special Address on AIDS

n October 2000, CED Trustee Raymond V. Gilmartin, Chairman, I President & CEO of Merck, spoke to a CED audience in New York on the innovative Merck/Bill and Melinda Gates Foundation/Govern- ment of Botswana program to address AIDS in that country.

Raymond V. Gilmartin with Pholie Legwaila, Counselor at the Botswana Mission to the United Nations.

New Project — Adjusting to Globalization

“ djusting to Globalization: Integrating Domestic and Trade Policies” will be a blueprint for bridging A the differences necessary to develop a progressive and sustainable U.S. trade policy. Traditional distinctions between international and domestic policy issues will be re-examined, addressing such social concerns as labor standards and the environment in addition to other areas of economic concern including foreign direct investment, expanded trade in services, and competition policy.

Co-chairing the project are former Nortel Chairman Edmund B. Fitzgerald, Managing Director, Woodmont Associates and former International Trade Commission Chair Paula Stern, President of The Stern Group.

13 ADP RECEIVES CORPORATE CITIZENSHIP AWARD

Excellence in Public Policy Award to Senators Feingold and McCain and Representatives Meehan and Shays

At CED’s 2000 annual dinner in Washington, D.C., Senators John McCain (R-AZ), Russell Feingold (D-WI), and Representatives Martin Meehan (D-MA) and Christopher Shays (R-CT) received CED’s first Excellence in Public Policy Award for their work on campaign finance reform. The dinner was co-chaired by Roderick M. Hills, Chairman of Hills Enterprises, Ltd., and Patrick W. Gross, Founder and Chairman of the Executive Committee of American Management Systems, Inc. The emcee for CED’s dinner was actress and campaign finance reform

activist Morgan Fairchild. Roderick M. Hills presents CED’s Excellence in Public Policy Award to Senator John McCain.

Roderick M. Hills and Patrick W. Gross present CED’s Excellence in Public Policy Award to Senator Russell Feingold.

Representative Christopher Shays, Morgan Fairchild, CED President Charles Kolb.

CED Chairman Frank P. Doyle (right) presents the Fifth Annual Corporate Citizenship Award to Josh S. Weston, Honorary Chairman of Automatic Data Processing, Inc. Previous recipients include Chase Manhattan, First Chicago NBD Corporation (now Bank One), Pfizer, and Nortel.

Trustees attending CED’s 2000 annual meeting explored national political issues with a panel moderated by Chris Matthews, host of the MSNBC program “Hardball.” The panel included, from right, Michael Barone of U.S. News and World Report, David Broder of the Washington Post, Chris Matthews, columnist and author Elizabeth Drew, and pollster Mark Mellman.

14 SELECTED RECENT FORUMS, BRIEFINGS, AND TESTIMONY

◗ New Hampshire Primary Town Hall on campaign finance reform co-sponsored with Common Cause. ◗ Release of Welfare Reform and Beyond: Making Work Work with Representative Nancy Johnson (R-CT). ◗ House Ways and Means testimony on welfare reform. ◗ San Francisco campaign finance reform Town Hall co-sponsored with Common Cause. ◗ CED-World Affairs Council of Northern California event on trade with China. ◗ Silicon Valley meeting of CED’s Subcommittee on U.S. Immigration Policy with Representative Zoe Lofgren (D-CA). ◗ Release of Breaking the Litigation Habit with House Majority Leader Dick Armey (R-TX). ◗ Release of Improving Global Financial Stability with IMF First Deputy Managing Director Stanley Fischer. ◗ Policy Forum on U.S.-Russia Economic Issues, co-sponsored with the EastWest Institute. ◗ Representative Rob Andrews (D-NJ) on education, Social Security, and internet security. ◗ Media Forum with MSNBC Hardball host Chris Matthews, Michael Barone of U.S. News and World Report, David Broder of the Washington Post, columnist and author Elizabeth Drew, and pollster Mark Mellman. ◗ Gene Sperling, Assistant to the President for Economic Policy and Director of the National Economic Council, on trade with China. ◗ CED participates in the Shadow Conventions at the Republican and Democratic National Conventions in Philadelphia and Los Angeles. ◗ Addressing the Aging of the Global Workforce, a joint CED-Center for Strategic and International Studies conference. ◗ Campaign debate on Social Security with Gore advisor Alan S. Blinder and Bush advisor Lawrence Lindsey. ◗ League of Women Voters of Chicago honors CED on campaign finance reform. ◗ CED-MetLife joint education event. ◗ Raymond V. Gilmartin, Chairman, President & CEO, Merck & Co., Inc. luncheon address on the Merck/Bill and Melinda Gates Foundation/Government of Botswana Comprehensive HIV/AIDS Partnership. ◗ CED-Commonwealth Fund business leaders’ roundtable on health care. ◗ “A United Europe Looking Outwards,” Paris meeting of CED Counterpart Organizations. ◗ MetLife Foundation-CED Education Roundtables in Atlanta, Houston, New York, and Raleigh. ◗ CED delegation met with Secretary of the Treasury Lawrence Summers.

15 DEVELOPMENT AND FINANCIAL SUPPORT

rustee leadership continues to be the driving force The Annual Dinner also helped to provide important sup- Tbehind CED. The direct participation of our Trustees in port. CED presented its 2000 Corporate Citizenship Award our work and in our development campaign is what guaran- to Automatic Data Processing, Inc. (Accepted by Josh S. tees CED’s success. Weston, ADP Honorary Chairman) and its inaugural We wish to recognize and thank our Chairman Frank P. Excellence in Public Policy Award to four distinguished indi- Doyle, along with Edward B. Rust, Jr., Chairman and CEO, viduals for their work in campaign finance reform — Senator State Farm Insurance Companies; Frederick W. Telling, Vice John McCain, Senator Russell D. Feingold, Representative President, Pfizer Inc.; Roderick M. Hills, Chairman, Hills Martin T. Meehan, and Representative Christopher Shays. Enterprises; Steffen E. Palko, President and Vice Chairman, The Dinner Co-Chairs were Patrick W. Gross, Founder Cross Timbers Oil; Edmund B. Fitzgerald; Managing and Chairman of the Executive Committee, American Director, Woodmont Associates; Josh S. Weston, Honorary Management Systems, Inc.; Roderick M. Hills, Chairman, Chairman, Automatic Data Processing, Inc.; Charles R. Lee, Hills Enterprises, Ltd.; and Jonathan M. Schofield, Chairman and Co-CEO, Verizon, and our other Trustees for Chairman and CEO, Airbus Industrie North America, Inc. their personal efforts. who all helped to raise contributions from Trustees and In 2000, CED’s development campaign turned an impor- other major corporations. tant corner, and we saw a significant increase in unrestricted Trustee recruitment remains an integral part of our orga- corporate contributions. Again, the involvement of Trustees nizational plan, and the Membership and Nominating helped to secure new support and regain corporate contri- Committee — led by Alair Townsend, Publisher of Crain’s butions. In addition, CED was successful in maintaining New York Business — secured 16 new Trustees (see listing and increasing its project support from both corporate below). In the coming year, our focus will be on recruiting foundations and the nation’s largest private, independent representatives from the bio-pharmaceutical, health care, foundations including — The Pew Charitable Trusts, The high-tech, telecommunications, retail, and service industries, Carnegie Corporation of New York, The Joyce Foundation, as well as from under-represented regions of the country and the David and Lucile Packard Foundation. CED also (e.g., the northwest and southeast). A key priority also is to received generous personal support from its Trustees and recruit more women and minorities as CED Trustees. Honorary Trustees. As the year closed, this extraordinary We also wish to thank McKinsey & Company, Inc., support sustained many of CED’s key programs. PricewaterhouseCoopers, and TIAA-CREF for their generosity In 2000, CED launched a strategic three-year plan to in providing meeting space for CED subcommittees. expand its overall development activities. CED also changed CED plans to establish Advisory Councils to build on its financial planning from 12 to 24 months, and a new Trustee-led research and help guide outreach and future pro- development team has been working diligently with CED’s gramming. The first Advisory Council is the Digital leadership to secure two-year pledges of support. A sharp Connections Council, established to focus on CED’s work in focus has been placed on the upcoming 60th Anniversary e-commerce. The next Advisory Council will be comprised of celebration in 2002 with plans for major project funding and chief human resources officers and other key executives to endowment expansion. focus on CED’s work in health care.

CED Trustees Elected in 2000–2001

JAMES S. BEARD, President, Caterpillar Financial Services Corp. MATTHEW NIMETZ, Partner, General Atlantic Partners THOMAS D. BELL, JR., Special Limited Partner, Forstmann Little & Co. RONALD L. OLSON, Partner, Munger, Tolles & Olson DEREK BOK, President Emeritus, Harvard University; Chairman, Common Cause TODD E. PETZEL, President & Chief Investment Officer, The Commonfund Asset LINDA M. DISTLERATH, Vice President, Global Health Policy, Merck & Co., Inc. Management Co., Inc. E. GORDON GEE, Chancellor, Vanderbilt University MARGUERITE W. SALLEE, Chairman & Chief Executive Officer, Frontline Group WILLIAM HENDERSON, Former Postmaster General MICHAEL M. SEARS, Senior Vice President & Chief Financial Officer, The Boeing Company SHIRLEY ANN JACKSON, President, Rensselaer Polytechnic Institute STEPHEN JOEL TRACHTENBERG, President, George Washington University VAN E. JOLISSAINT, Corporate Economist, DaimlerChrysler Corporation L. R. WILSON, Chairman, Nortel Networks Corporation KURT M. LANDGRAF, President, Educational Testing Service

16 CED SUPPORTERS

CED is pleased to thank its supporters for their generous contributions and grants, which enable us to pursue a dynamic agenda focused on today’s most significant economic and social issues. The list below represents CED’s major supporters.

$50,000 and Over $10,000 — $19,999 Sealed Air Corporation Johnson Capital Partners The Shorenstein Company Pres Kabacoff Automatic Data Processing, Inc. ABC, Inc. A.O. Smith Corporation Lehman Brothers Inc. Exxon Mobil Corporation Airbus Industrie of North Sprint Corporation Robert H. Lessin Ford Motor Company America, Inc. Sun Microsystems, Inc. Liberty Mutual Group GE Fund American Home Products Target Corporation Lincoln National Corporation Nortel Networks Corporation Corporation TRW Inc. Lion Gate Management Pfizer Inc. American Management Tyco International Ltd. Corporation The Procter & Gamble Systems, Inc. Hermine Warren Robert W. Lundeen Company Apache Corporation The Washington Post McDonald’s Corporation The Prudential Insurance Co. AXA Financial Inc. Company MGM Mirage of America Bain & Company, Inc. Weil, Gotshal & Manges LLP Perseus Capital, LLC State Farm Insurance Biogen, Inc. Donald K. Peterson Companies The Blackstone Group Pirelli Cables and Systems Time Warner Inc. Brown Brothers Harriman & Co. $5,000 — $9,999 Publix Super Market Verizon Communications Donald R. Caldwell Akamai Technologies Inc. Charities, Inc. Campaign for America Alberto-Culver Company Quaker Chemical Corporation Caterpillar Inc. Bell Atlantic Corporation $30,000 — 49,999 Sallie Mae Carolyn Chin Alan Belzer B/com3 Group, Inc. Sheridan Broadcasting Ferdinand Colloredo-Mansfeld Peter A. Benoliel Chase Manhattan Corporation Corning Incorporated BET Holdings Cross Timbers Oil Company The J. M. Smucker Company Deere & Company Beyond Insight Corporation GE Fund Roger W. Stone Donaldson, Lufkin & Jenrette, Roy J. Bostock PaineWebber Incorporated The Mark Twain Institute Inc. Brunswick Corporation PPL Corporation Unisys Corporation Frank P. Doyle CIGNA Corporation U.S. Bancorp Educational Testing Service CNA Insurance Companies The Vanguard Group $20,000 — $29,999 Fannie Mae Connell Limited Partnership Warner-Lambert Company American International Group Edmund B. Fitzgerald Consolidated Edison Co. of NY, Sidney J. Weinberg The Boeing Company Joseph Gantz Inc. Weyerhaeuser Company Bristol-Myers Squibb Company The Goodyear Tire & Rubber Corning Cable Systems Chevron Corporation Company Cross Atlantic Capital Citigroup Inc. Guardsmark, Inc. Partners $2,500 — $4,999 DaimlerChrysler Corporation John Hancock Life Insurance CSX Corporation 3M Deloitte Touche Tohmatsu Company Irwin Dorros American Family Mutual Enron Corporation Johnson & Johnson The Dow Chemical Company Insurance Company Inc. General Mills, Inc. KeySpan Christopher D. Earl Black Enterprise Magazine General Motors Corporation Thomas J. Klutznick Company Eastman Kodak Company The Boston Consulting Group, Merck & Co., Inc. Korn/Ferry International, Inc. edu.com Inc. Merrill Lynch & Co., Inc. Lucent Technologies Inc. Electric Power Research Carnival Cruise Lines, Inc. New York Community Trust McKinsey & Company, Inc. Institute Covington & Burling The Northwestern Mutual Harvey R. Miller FedEx Corporation Crain’s New York Business Financial Network The MONY Group Inc. Frontline Group The Dayton Power & Light PricewaterhouseCoopers Morgan Stanley Dean Witter Goldman Sachs Group, Inc. Company Frank Russell Company & Company Alfred G. Goldstein Equitable Resources, Inc. State Street Corporation New York Stock Exchange, Inc. Grey Advertising Inc. Forest Oil Corporation TIAA-CREF Pacific Life Insurance Company Patrick W. Gross The Gillette Company Xerox Corporation Payden & Rygel Harman International The Goldberg Family Peter G. Peterson Industries, Inc. Foundation Public Service Enterprise Hills Enterprises, Ltd. GPU, Inc. Group Inc. Human Genome Sciences, Inc. Granite Broadcasting Corp. Raytheon Company Robert J. Hurst Granite Construction Roadway Express, Inc. Inhale Therapeutic Systems, Incorporated Daniel Rose Inc. Grey Flannel Auctions Sara Lee Corporation The Guardian Life Insurance Company of America

continued on page 18 17 CED SUPPORTERS

Historic Restoration, Inc. Cooper Tire & Rubber Victor A. Pelson Charles Stewart Mott Household International, Inc. Company Roger Penske Foundation Hubbard Broadcasting, Inc. Country Companies Carl H. Pforzheimer & Co. Nellie Mae Foundation Kemper Insurance Companies Deposit Guaranty Corp. Preformed Line Products The David and Lucile Packard Kmart Corporation The Dickson Foundation Inc. Company Foundation The Liberty Corporation W. D. Eberle S. L. Prendergast The Pew Charitable Trusts Lloyds TSB Bank PLC A. G. Edwards & Sons, Inc. Hugh B. Price Smith Richardson Foundation Marsh & McLennan Federal Reserve Bank of The Rand Corporation United Parcel Service, Inc. Companies, Inc. Philadelphia Ned Regan Nationwide Federated Insurance James Q. Riordan Endowments The New York Times Company Companies Rolls-Royce North America Inc. The Roy L. Ash Program in PG&E Corporation FirstEnergy Corporation William Ruder Incorporated American Governance The Pittston Company Flushing Savings Bank The Savings Bank of Utica (given by Mr. Ash) Randall & Dewey, Inc. French Oil Mill Machinery Scarbroughs Randolph Foundation Company Henry B. Schacht The Owen B. Butler Program Samsung Electronics America, Raymond V. Gilmartin Sea Island Company in Education Studies (given Inc. Joseph T. Gorman The Segal Company by Daiwa Securities Co., Ltd.) Thomas Publishing Company GreenPoint Financial Corp. Shorebank Corporation The Edmund B. Fitzgerald Wachovia Corporation Ronald Grzywinski Shure Incorporated Program in International Xcel Energy Inc. J. J. Haines & Company, Inc. Snap-on Incorporated Studies (given by Northern Richard W. Hanselman Society for Human Resource Telecom) $2,000 and Under* William A. Haseltine Management The Hillman Company Stanley Consultants, Inc. The Philip M. Klutznick The Ackman-Ziff Real Estate Hayne Hipp The State Life Insurance Program in Urban Studies Group LLC Holborn Corporation Company (given by Mr. Klutznick) Air Logistics Corporation Robert C. Holland Donald M. Stewart Alleghany Corporation The Philip D. Reed Program Leon C. Holt Matthew J. Stover Alliant Energy in Energy and the HSBC Bank USA Susquehanna Pfaltzgraff Co. American General Corporation Environment (given by the IGA, INC. T. Rowe Price Associates, Inc. Ameritas Life Insurance Corp. Philip D. Reed Foundation) Intermountain Gas Company Maurice Tempelsman Ian Arnof The Richard E. Jacobs Group Stephen J. Trachtenberg Atlas Electric Devices Company Kimball International, Inc. The Vantage Group Avenir Group, Inc. Charles E.M. Kolb Western Industrial Contractors BB&T Corporation C. Joseph LaBonte Clifton R. Wharton, Jr. Henry P. Becton Melvin B. and Joan F. Lane Michael W. Wickham Belz Enterprises Lawson Products, Inc. Harold M. Williams H & R Block, Inc. Leviton Manufacturing Wolfe Enterprises Inc. William E. Brock Company, Inc. Mortimer B. Zuckerman Bunge Corporation William W. Lewis Frank C. Carlucci Bruce K. MacLaury Carolina Power & Light Project Funders The Marmon Group Inc. Company Carnegie Corporation of New Ellen R. Marram Robert B. Catell York Mitchell Energy & John B. Cave The Commonwealth Fund Development Corporation Central Bank Ford Foundation Monadnock Paper Mills, Inc. Raymond G. Chambers GE Fund National Cooperative Refinery ChemFirst Inc. The Joyce Foundation Association Chubb Corporation KeySpan Foundation North Carolina Farm Bureau Cleveland-Cliffs Inc. Levi Strauss Foundation Mutual Insurance Company Clifton Gunderson L.L.C. John T. and Catherine D. Carol J. Parry CNF Inc. MacArthur Foundation Convergys Corporation John Cooney

*This category includes many personal contributions provided by CED’s Trustees.

18 CED TRUSTEES

Chairman DEREK BOK KATHLEEN B. COOPER KATHLEEN FELDSTEIN President Emeritus Chief Economist and Manager, President FRANK P. DOYLE Harvard University Economics & Energy Division Economics Studies, Inc. Retired Executive Vice President Exxon Mobil Corporation GE ROY J. BOSTOCK RONALD E. FERGUSON Chairman JAMES P. CORCORAN Chairman, President and Chief B/com3 Group, Inc. Executive Vice President, Executive Officer JOHN BRADEMAS Government & Industry General RE Corporation Vice Chairmen President Emeritus Relations E. JAMES FERLAND American General Corporation ROY J. BOSTOCK New York University Chairman, President and Chief Chairman WILLIAM E. BROCK GARY L. COUNTRYMAN Executive Officer B/com3 Group, Inc. Chairman Chairman Emeritus Public Service Enterprise Group Inc. Liberty Mutual Insurance Company JOHN H. BRYAN Bridges LearningSystems, Inc. * EDMUND B. FITZGERALD Chairman of the Board JOHN H. BRYAN STEPHEN A. CRANE Managing Director Sara Lee Corporation Chairman of the Board Chairman, President and Chief Woodmont Associates Executive Officer DONALD R. CALDWELL Sara Lee Corporation HARRY L. FREEMAN Stirling Cooke Brown Holdings Chair Chairman and Chief Executive THOMAS J. BUCKHOLTZ Limited Officer Executive Vice President The Mark Twain Institute Cross Atlantic Capital Partners Beyond Insight Corporation RONALD R. DAVENPORT MITCHELL S. FROMSTEIN Chairman of the Board Chairman Emeritus RAYMOND V. GILMARTIN MICHAEL BUNGEY Sheridan Broadcasting Corporation Chairman, President and Chief Chairman and Chief Executive Manpower Inc. Executive Officer Officer JOHN T. DEE JOSEPH GANTZ Merck & Co., Inc. Bates Worldwide Chairman and Chief Executive Partner Officer GG Capital, LLC * FLETCHER L. BYROM Volume Services America President and Chief Executive E. GORDON GEE Officer ROBERT M. DEVLIN Chancellor MICASU Corporation Chairman and Chief Executive Vanderbilt University Treasurer Officer DONALD R. CALDWELL American General Corporation THOMAS P. GERRITY REGINA DOLAN Chairman and Chief Executive Dean Emeritus Executive Vice President, Chief Officer JOHN DIEBOLD The Wharton School Financial Officer and Chief Cross Atlantic Capital Partners Chairman University of Pennsylvania John Diebold Incorporated Administrative Officer FRANK C. CARLUCCI RAYMOND V. GILMARTIN UBS PaineWebber, Inc. Washington, D.C. LINDA M. DISTLERATH Chairman, President and Chief Vice President, Global Health Policy Executive Officer ROBERT B. CATELL Merck & Co., Inc. Chairman and Chief Executive Merck & Co., Inc. Officer REGINA DOLAN FREDERICK W. GLUCK ROGER G. ACKERMAN KeySpan Corporation Executive Vice President, Chief Of Counsel Chairman and Chief Executive Financial Officer and Chief McKinsey & Company, Inc. Officer JOHN B. CAVE Administrative Officer Corning Incorporated Principal UBS PaineWebber, Inc. CAROL R. GOLDBERG Avenir Group, Inc. President REX D. ADAMS IRWIN DORROS The AvCar Group, Ltd. Dean JOHN S. CHALSTY President The Fuqua School of Business Senior Advisor Dorros Associates ALFRED G. GOLDSTEIN Duke University Credit Suisse First Boston President and Chief Executive FRANK P. DOYLE Officer PAUL A. ALLAIRE RAYMOND G. CHAMBERS Retired Executive Vice President AG Associates Chairman Chairman of the Board GE Xerox Corporation Amelior Foundation JOSEPH T. GORMAN E. LINN DRAPER, JR. Chairman and Chief Executive IAN ARNOF ROBERT CHESS Chairman, President and Chief Officer Retired Chairman Chairman Executive Officer TRW Inc. Bank One, Louisiana, N.A. Inhale Therapeutic Systems, Inc. American Electric Power Company RICHARD A. GRASSO JAMES S. BEARD CAROLYN CHIN T. J. DERMOT DUNPHY Chairman and Chief Executive President Chairman, Commtouch Chairman Officer Caterpillar Financial Services Corp. Chairman, Kindmark Kildare Enterprises, LLC New York Stock Exchange, Inc. HENRY P. BECTON, JR. JOHN L. CLENDENIN * CHRISTOPHER D. EARL EARL G. GRAVES, SR. President and General Manager Retired Chairman Managing Director Publisher and Chief Executive WGBH Educational Foundation BellSouth Corporation Perseus Capital, LLC Officer THOMAS D. BELL, JR. FERDINAND COLLOREDO- W. D. EBERLE Black Enterprise Magazine Special Limited Partner MANSFELD Chairman WILLIAM H. GRAY, III Forstmann Little & Co. Chairman and Chief Executive Manchester Associates, Ltd. Officer President and Chief Executive ALAN BELZER Cabot Industrial Trust JAMES D. ERICSON Officer Retired President and Chief Chairman and Chief Executive The College Fund Operating Officer GEORGE H. CONRADES Officer ROSEMARIE B. GRECO AlliedSignal Inc. Chairman and Chief Executive The Northwestern Mutual Life Officer Principal PETER A. BENOLIEL Insurance Company Akamai Technologies, Inc. Greco Ventures Chairman, Executive Committee WILLIAM T. ESREY GERALD GREENWALD Quaker Chemical Corporation Chairman and Chief Executive Chairman Emeritus MELVYN E. BERGSTEIN Officer UAL Corporation Chairman and Chief Executive Sprint BARBARA B. GROGAN Officer President Diamond Cluster International, Inc. Western Industrial Contractors

*Life Trustee 19 continued on page 20 CED TRUSTEES

PATRICK W. GROSS VAN E. JOLISSAINT ELLEN R. MARRAM TODD E. PETZEL Founder and Chairman, Executive Corporate Economist Partner President and Chief Investment Officer Committee DaimlerChrysler Corporation North Castle Partners The Commonfund Asset American Management Systems, Inc. H.V. JONES ALONZO L. MCDONALD Management Co., Inc. JEROME GROSSMAN Office Managing Director Chairman and Chief Executive Officer RAYMOND PLANK Chairman and Chief Executive Korn/Ferry International, Inc. Avenir Group, Inc. Chairman and Chief Executive Officer Officer PRES KABACOFF EUGENE R. MCGRATH Apache Corporation Lion Gate Management Corporation President and Co-Chairman Chairman, President and Chief ARNOLD B. POLLARD RONALD GRZYWINSKI Historic Restoration, Inc. Executive Officer President and Chief Executive Officer Chairman JOSEPH J. KAMINSKI Consolidated Edison Company The Chief Executive Group Shorebank Corporation Corporate Executive Vice President of New York, Inc. S. LAWRENCE PRENDERGAST JUDITH H. HAMILTON Air Products and Chemicals, Inc. DAVID E. MCKINNEY Executive Vice President of Finance President and Chief Executive Officer EDWARD A. KANGAS President LaBranche & Co. Classroom Connect Chairman, Retired The Metropolitan Museum of Art HUGH B. PRICE WILLIAM A. HASELTINE Deloitte Touche Tohmatsu DEBORAH HICKS MIDANEK President and Chief Executive Officer Chairman and Chief Executive JOSEPH E. KASPUTYS Principal National Urban League Officer Chairman, President and Chief Glass and Associates, Inc. NED REGAN Human Genome Sciences, Inc. Executive Officer HARVEY R. MILLER President WILLIAM F. HECHT Thomson Financial Primark Senior Partner Baruch College Chairman, President and Chief JAMES P. KELLY Weil, Gotshal & Manges WILLIAM R. RHODES Executive Officer Chairman and Chief Executive Officer NICHOLAS G. MOORE Vice Chairman PPL Corporation United Parcel Service Inc. Chairman Citigroup, Inc. WILLIAM HENDERSON THOMAS J. KLUTZNICK PricewaterhouseCoopers JAMES Q. RIORDAN Former Postmaster General President DIANA S. NATALICIO Quentin Partners Co. JOSEPH D. HICKS Thomas J. Klutznick Company President E. B. ROBINSON, JR. Retired President and Chief CHARLES F. KNIGHT The University of Texas at El Paso Chairman Emeritus Executive Officer Chairman and Chief Executive Officer MARILYN CARLSON NELSON Deposit Guaranty Corporation Siecor Corporation Emerson Electric Co. Chairman, President and Chief ROY ROMER HEATHER HIGGINS CHARLES E.M. KOLB Executive Officer Former Governor of Colorado President President Carlson Companies, Inc. Superintendent Randolph Foundation Committee for Economic MATTHEW NIMETZ Los Angeles Unified School District STEVEN R. HILL Development Partner DANIEL ROSE Senior Vice President, Human ALLEN J. KROWE General Atlantic Partners Chairman Resources Retired Vice Chairman THOMAS H. O’BRIEN Rose Associates, Inc. Weyerhaeuser Company Texaco Inc. Chairman of the Executive Committee HOWARD M. ROSENKRANTZ RODERICK M. HILLS C. JOSEPH LABONTE PNC Financial Services Group, Inc. Chief Executive Officer Chairman Chairman DEAN R. O’HARE Grey Flannel Auctions Hills Enterprises, Ltd. The Vantage Group Chairman and Chief Executive Officer LANDON H. ROWLAND HAYNE HIPP KURT M. LANDGRAF Chubb Corporation Chairman, President and Chief President and Chief Executive Officer President and Chief Executive Officer RONALD L. OLSON Executive Officer The Liberty Corporation Educational Testing Service Partner Stillwell Financial Inc. DEBORAH C. HOPKINS J. TERRENCE LANNI Munger, Tolles & Olson NEIL L. RUDENSTINE Former Executive Vice President and Chairman of the Board ROBERT J. O’TOOLE President Chief Financial Officer MGM Mirage Vice Chairman and Chief Executive Harvard University Lucent Technologies CHARLES R. LEE Officer WILLIAM RUDER MATINA S. HORNER Chairman and Co-Chief Executive A.O. Smith Corporation President Executive Vice President Officer STEFFEN E. PALKO William Ruder Incorporated TIAA-CREF Verizon Communications Vice Chairman and President GEORGE RUPP PHILIP K. HOWARD ROBERT H. LESSIN Cross Timbers Oil Company President Vice Chairman Chairman SANDRA PANEM Columbia University Covington & Burling Wit Soundview Group, Inc. Partner GEORGE F. RUSSELL, JR. ROBERT J. HURST WILLIAM W. LEWIS Cross Atlantic Partners, Inc. Chairman Vice Chairman Director CAROL J. PARRY Frank Russell Company Goldman Sachs Group, Inc. McKinsey Global Institute President EDWARD B. RUST, JR. SHIRLEY ANN JACKSON McKinsey & Company, Inc. Corporate Social Responsibility Chairman and Chief Executive Officer President IRA A. LIPMAN Associates State Farm Insurance Companies Rensselaer Polytechnic Institute Chairman of the Board and President VICTOR A. PELSON ARTHUR F. RYAN WILLIAM C. JENNINGS Guardsmark, Inc. Senior Advisor Chairman and Chief Executive Officer Chief Executive Officer MICHAEL D. LOCKHART Warburg Dillon Read LLC The Prudential Insurance Company US Interactive, Inc. Chairman and Chief Executive Officer DONALD K. PETERSON of America JEFFREY A. JOERRES Armstrong Holdings, Inc. President and Chief Executive Officer MARGUERITE W. SALLEE President and Chief Executive Officer BRUCE K. MACLAURY Avaya Inc. Chairman and Chief Executive Officer Manpower Inc. President Emeritus PETER G. PETERSON Frontline Group JAMES A. JOHNSON The Brookings Institution Chairman STEPHEN W. SANGER Chairman and Chief Executive Officer COLETTE MAHONEY, RSHM The Blackstone Group Chairman and Chief Executive Officer Johnson Capital Partners President Emeritus General Mills, Inc. ROBERT M. JOHNSON Marymount Manhattan College HENRY B. SCHACHT Chairman and Chief Executive Officer Chairman and Chief Executive Officer Bowne & Co., Inc. Lucent Technologies

*Life Trustee 20 CED HONORARY TRUSTEES

MICHAEL M. SEARS CHANG-LIN TIEN RAY C. ADAM LYLE EVERINGHAM Senior Vice President and Chief NEC Distinguished Professor of Retired Chairman Retired Chairman Financial Officer Engineering NL Industries The Kroger Co. The Boeing Company University of California, Berkeley O. KELLEY ANDERSON THOMAS J. EYERMAN WALTER H. SHORENSTEIN THOMAS J. TIERNEY Boston, Massachusetts Retired Partner Chairman of the Board Director (former Chief Executive) ROBERT O. ANDERSON Skidmore, Owings & Merrill The Shorenstein Company Bain & Company Retired Chairman JOHN T. FEY *GEORGE P. SHULTZ STOKLEY P. TOWLES Hondo Oil & Gas Company Park City, Utah Distinguished Fellow Partner ROY L. ASH JOHN M. FOX The Hoover Institution Brown Brothers Harriman & Co. Los Angeles, California Sapphire, North Carolina Stanford University STEPHEN JOEL TRACHTENBERG SANFORD S. ATWOOD DON C. FRISBEE JOHN C. SICILIANO President President Emeritus Chairman Emeritus Vice President, International George Washington University Emory University PacifiCorp Dimensional Fund Advisors JAMES L. VINCENT ROBERT H. B. BALDWIN RICHARD L. GELB RUTH J. SIMMONS Chairman of the Board Retired Chairman Chairman Emeritus President Biogen, Inc. Morgan Stanley Group Inc. Bristol-Myers Squibb Company Smith College ROBERT C. WAGGONER GEORGE F. BENNETT W. H. KROME GEORGE FREDERICK W. SMITH President and Chief Executive Officer Chairman Emeritus Retired Chairman Chairman, President and Chief Burrelle’s Information Services LLC State Street Investment Trust ALCOA Executive Officer DONALD C. WAITE, III Federal Express Corporation HAROLD H. BENNETT WALTER B. GERKEN Director Salt Lake City, Utah Chairman, Executive Committee ALAN G. SPOON McKinsey & Company, Inc. JACK F. BENNETT Pacific Life Insurance Company Managing General Partner HERMINE WARREN Polaris Ventures Retired Senior Vice President PAUL S. GEROT President Exxon Corporation Delray Beach, Florida JOHN R. STAFFORD Hermine Warren Associates, Inc. HOWARD W. BLAUVELT LINCOLN GORDON Chairman, President and Chief ARNOLD R. WEBER Executive Officer Keswick, Virginia Guest Scholar President Emeritus The Brookings Institution American Home Products Northwestern University MARVIN BOWER Corporation Delray Beach, Florida KATHARINE GRAHAM JOHN F. WELCH, JR. STEPHEN STAMAS ALAN S. BOYD Chairman of the Executive Chairman and Chief Executive Officer Committee Chairman GE Lady Lake, Florida The American Assembly The Washington Post Company JOSH S. WESTON ANDREW F. BRIMMER JOHN L. STEFFENS President JOHN D. GRAY Honorary Chairman Chairman Emeritus Vice Chairman Automatic Data Processing, Inc. Brimmer & Company, Inc. Merrill Lynch & Co., Inc. Hartmarx Corporation CLIFTON R. WHARTON, JR. HARRY G. BUBB PAULA STERN Chairman Emeritus JOHN R. HALL Former Chairman and Chief Executive Retired Chairman President Officer Pacific Mutual Life Insurance The Stern Group, Inc. Ashland Inc. TIAA-CREF THEODORE A. BURTIS DONALD M. STEWART Retired Chairman of the Board RICHARD W. HANSELMAN DOLORES D. WHARTON Chairman President and Chief Executive Officer Chairman and Chief Executive Officer Sun Company, Inc. The Chicago Community Trust Health Net Inc. The Fund for Corporate PHILIP CALDWELL ROGER W. STONE Initiatives, Inc. Chairman (Retired) ROBERT A. HANSON Retired Chairman Chairman and Chief Executive Officer MICHAEL W. WICKHAM Ford Motor Company Box USA Group, Inc. Deere & Company Chairman and Chief Executive Officer EVERETT N. CASE MATTHEW J. STOVER Roadway Express, Inc. Cooperstown, New York ROBERT S. HATFIELD President Retired Chairman HAROLD M. WILLIAMS HUGH M. CHAPMAN edu.com The Continental Group, Inc. President Emeritus Retired Chairman RICHARD J. SWIFT The J. Paul Getty Trust NationsBank South ARTHUR HAUSPURG Chairman, President and Chief Member, Board of Trustees J. KELLEY WILLIAMS E. H. CLARK, JR. Executive Officer Consolidated Edison Company Chairman and Chief Executive Officer Chairman and Chief Executive Officer Foster Wheeler Corporation of New York, Inc. ChemFirst Inc. The Friendship Group RICHARD F. SYRON PHILIP M. HAWLEY L. R. WILSON A.W. CLAUSEN President and Chief Executive Officer Retired Chairman of the Board Chairman Retired Chairman and Chief Executive Thermo Electron Corporation Carter Hawley Hale Stores, Inc. Nortel Networks Corporation Officer ROBERT C. HOLLAND HENRY TANG LINDA SMITH WILSON BankAmerica Corporation Chairman Senior Fellow President Emerita DOUGLAS D. DANFORTH Committee of 100 The Wharton School Radcliffe College Executive Associates University of Pennsylvania FREDERICK W. TELLING MARGARET S. WILSON JOHN H. DANIELS Vice President Corporate Strategic LEON C. HOLT, JR. Chairman and Chief Executive Officer Retired Chairman and Chief Executive Planning and Policy Division Retired Vice Chairman Scarbroughs Officer Pfizer Inc. Air Products and Chemicals, Inc. KURT E. YEAGER Archer-Daniels Midland Co. JAMES A. THOMSON SOL HURWITZ President and Chief Executive Officer RALPH P. DAVIDSON President and Chief Executive Officer Retired President Electric Power Research Institute Washington, D.C. RAND Committee for Economic MARTIN B. ZIMMERMAN ALFRED C. DECRANE, JR. Development Vice President, Governmental Affairs Retired Chairman and Chief Executive GEORGE F. JAMES Ford Motor Company Officer Ponte Vedra Beach, Florida Texaco, Inc. DAVID KEARNS ROBERT R. DOCKSON Chairman Emeritus Chairman Emeritus New American Schools CalFed, Inc.

*Life Trustee continued on page 22 21 CED HONORARY TRUSTEES

GEORGE M. KELLER CHAMPNEY A. MCNAIR RUDOLPH A. PETERSON DAVIDSON SOMMERS Chairman of the Board, Retired Retired Vice Chairman President and Chief Executive Washington, D.C. Chevron Corporation Trust Company of Georgia Officer (Emeritus) ELMER B. STAATS FRANKLIN A. LINDSAY J. W. MCSWINEY BankAmerica Corporation Former Comptroller General of Retired Chairman Retired Chairman of the Board DEAN P. PHYPERS the United States Itek Corporation The Mead Corporation New Canaan, Connecticut FRANK STANTON ROY G. LUCKS ROBERT E. MERCER EDMUND T. PRATT, JR. Former President San Francisco, California Retired Chairman Retired Chairman and Chief CBS, Inc. ROBERT W. LUNDEEN The Goodyear Tire & Rubber Co. Executive Officer EDGAR B. STERN, JR. Retired Chairman RUBEN F. METTLER Pfizer Inc. Chairman of the Board The Dow Chemical Company Retired Chairman and Chief ROBERT M. PRICE Royal Street Corporation IAN MACGREGOR Executive Officer Retired Chairman and Chief ALEXANDER L. STOTT Retired Chairman TRW Inc. Executive Officer Fairfield, Connecticut Control Data Corporation AMAX Inc. LEE L. MORGAN WAYNE E. THOMPSON RICHARD B. MADDEN Former Chairman of the Board R. STEWART RAUCH Past Chairman Retired Chairman and Chief Caterpillar, Inc. Former Chairman Merritt Peralta Medical Center The Philadelphia Savings Fund Society Executive Officer ROBERT R. NATHAN HOWARD S. TURNER Potlatch Corporation Chairman JAMES J. RENIER Retired Chairman FRANK L. MAGEE Nathan Associates, Inc. Renier & Associates Turner Construction Company Stahlstown, Pennsylvania J. WILSON NEWMAN IAN M. ROLLAND L. S. TURNER, JR. STANLEY MARCUS Retired Chairman Former Chairman and Chief Dallas, Texas Consultant Dun & Bradstreet Corporation Executive Officer Lincoln National Corporation THOMAS A. VANDERSLICE Stanley Marcus Consultancy JAMES J. O’CONNOR TAV Associates Former Chairman and Chief AXEL G. ROSIN AUGUSTINE R. MARUSI JAMES E. WEBB Lake Wales, Florida Executive Officer Retired Chairman Unicom Corporation Book-of-the-Month Club, Inc. Washington, D.C. WILLIAM F. MAY SIDNEY J. WEINBERG, JR. Chairman and Chief Executive Officer LEIF H. OLSEN WILLIAM M. ROTH President Princeton, New Jersey Senior Partner Statue of Liberty-Ellis Island The Goldman Sachs Group, L.P. Foundation, Inc. LHO Group RALPH S. SAUL NORMA PACE Former Chairman of the Board ROBERT C. WINTERS OSCAR G. MAYER Chairman Emeritus Retired Chairman President CIGNA Companies Paper Analytics Associates Prudential Insurance Company Oscar Mayer & Co. GEORGE A. SCHAEFER of America GEORGE C. MCGHEE CHARLES W. PARRY Retired Chairman of the Board Retired Chairman Caterpillar, Inc. ARTHUR M. WOOD Former U.S. Ambassador and Chicago, Illinois Under Secretary of State ALCOA ROBERT G. SCHWARTZ RICHARD D. WOOD JOHN F. MCGILLICUDDY WILLIAM R. PEARCE New York, New York Director Director Retired Chairman and Chief MARK SHEPHERD, JR. Eli Lilly and Company Executive Officer American Express Mutual Funds Retired Chairman Chemical Banking Corporation JOHN H. PERKINS Texas Instruments, Inc. CHARLES J. ZWICK Coral Gables, Florida JAMES W. MCKEE, JR. Former President ROCCO C. SICILIANO Retired Chairman Continental Illinois National Bank Beverly Hills, California CPC International, Inc. and Trust Company

CED RESEARCH ADVISORY BOARD

Chairman JOHN COGAN ROBERT W. HAHN PAUL ROMER Senior Fellow Resident Scholar STANCO 25 Professor of Economics JOHN P. WHITE The Hoover Institution American Enterprise Institute Stanford University Lecturer in Public Policy Stanford University Graduate School of Business John F. Kennedy School of HELEN F. LADD Government ALAIN C. ENTHOVEN Professor of Public Policy Studies CECILIA E. ROUSE Harvard University Marriner S. Eccles Professor of and Economics Professor of Economics Public and Private Management Sanford Institute of Public Policy and Public Affairs Stanford University Duke University Woodrow Wilson School Graduate School of Business Princeton University JAGDISH BHAGWATI LINDA YUEN-CHING LIM Arthur Lehman Professor of Economics RONALD F. FERGUSON Associate Professor of Corporate DAVID WESSEL Columbia University Lecturer in Public Policy Strategy and International Business Assistant Bureau Chief/Columnist John F. Kennedy School of University of Michigan Business School The Wall Street Journal RALPH D. CHRISTY Government J. Thomas Clark Professor Harvard University ROBERT E. LITAN Department of Agriculture, Resource, Vice President, Director of and Managerial Economics BENJAMIN M. FRIEDMAN Economic Studies Cornell University William Joseph Maier Professor of The Brookings Institution Political Economy Harvard University

22 CED PROFESSIONAL AND ADMINISTRATIVE STAFF

CHARLES E.M. KOLB President

Research Communications/Government Relations Development VAN DOORN OOMS CLAUDIA P. FEUREY MARTHA E. HOULE Senior Vice President and Vice President for Communications Vice President for Development and Director of Research and Corporate Affairs Secretary of the Board of Trustees MICHAEL J. PETRO GLORIA Y. CALHOUN Vice President and Director of Development Assistant Business and Government JANET HANSEN Policy and Chief of Staff SANDRA L. MARTINEZ Vice President and Director Development Associate of Education Studies CHRIS DREIBELBIS Business and Government RICHARD M. RODERO ELLIOT SCHWARTZ Policy Associate Assistant Director of Development Vice President and Director of Economic Studies JIM KAPSIS Finance and Administration Public Affairs Associate TAREK ANANDAN KAREN CASTRO Research Associate VALERIE MENDELSOHN Director of Finance and Administration Conference Manager and MICHAEL BERG Secretary of the Research PETER E. COX Research Associate and Policy Committee Operations Manager SETH TUROFF ROBIN SAMERS SHARON A. FOWKES Research Associate Public Affairs Associate Executive Assistant to the President Advisor on International HELENA ZYBLIKEWYCZ ARLENE M. MURPHY Economic Policy Manager of Business and Executive Assistant to the President Public Affairs and Office Manager ISAIAH FRANK William L. Clayton Professor DENISE SMITH of International Economics Public Affairs and Development The Johns Hopkins University Assistant AMANDA TURNER Office Manager

CED COUNTERPART ORGANIZATIONS

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

CE Circulo de Empresarios IDEP Institut de l’Entreprise Madrid, Spain Paris, France CEDA Committee for Economic Development IW Institut der Deutschen Wirtschaft of Australia Cologne, Germany Sydney, Australia Keizai Doyukai EVA Centre for Finnish Business and Policy Studies Tokyo, Japan Helsinki, Finland SMO Stichting Maatschappij en Onderneming FAE Forum de Administradores de Empresas The Netherlands Lisbon, Portugal SNS Studieförbundet Naringsliv och Samhälle FDE Belgian Enterprise Foundation Stockholm, Sweden Brussels, Belgium

23 COMMITTEE FOR ECONOMIC DEVELOPMENT

477 Madison Avenue New York, New York 10022 (Telephone) 212-688-2063 (Fax) 212-758-9068

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