1775 Massachusetts Avenue NW Annual Report 2013 Washington, DC 20036 www.brookings.edu

QUALITY. INDEPENDENCE. IMPACT.

Brookings Leadership Message

hen Robert S. Brookings and a group of like-minded reformers established the Brookings Institution nearly a century ago, they were guided by the simple but profound belief that good governance results from good ideas and that good ideas are based on respect W for facts, rigorous thinking, rational debate, and civil discourse. It is a testament to our founder that his vision has guided us across the decades and continents, into the era of globalization and the digital age. Brookings brings an unparalleled breadth and depth of expertise to the most pressing challenges to ­governance, with experts working across disciplines to develop comprehensive solutions. As we near the end of our first century of doing this important work, we remain true to the trinity of values that has been at the heart of what we do since Brookings was founded: Quality, Independence, and Impact. Quality. We’re proud to be found on the Internet at brookings.edu. It’s a subtle but deeply important symbol of our commitment to upholding the standards of intellectual rigor maintained by the world’s most respected educational institutions. Our institutional reputation for excellence derives from the individual excellence of our 270 resident and nonresident scholars, who collaborate across fields of expertise—and in many cases across the globe—to generate fresh, bold ideas. Independence. By any measure, our government is more polarized than it was a generation ago, with intense and destructive partisanship in Washington and many state capitals. In this environment, Brookings’s independence is our greatest asset. It means that policymakers across the ideological spectrum take our ideas seriously and value our analysis. It enables us to convene people with diverse views for ­reasoned, honest debate. Impact. At Brookings, we strive to make sure that the product of our thinking influences the thinking and action of people who can make our recommendations a reality. Often, our own scholars and Trustees pass through the revolving door between Brookings and the U.S. government. In recent years, as we’ve globalized Brookings, our talent pool has benefited other governments and international institutions. While Brookings never faltering in our commitment to high-quality research, we’re investing in dissemination through both traditional and emerging channels. For nearly a century, we’ve stayed true to our original purpose of improving the way that communi- ties—from the local to the national to the global—govern themselves. We also recognize that our ability to achieve real impact stems from how we govern the Institution, including fostering an atmosphere of intellectual freedom for our scholars. We have been entrusted with upholding Mr. Brookings’s legacy and we owe it to our predecessors—and our successors—along with our Trustees and generous supporters, to manage our human, financial, and physical resources. Perhaps Mr. Brookings would not recognize many aspects of the world we live in today, with our nearly instantaneous exchanges of information over cyberspace and the fragmented nature of domestic and international politics. Yet we have no doubt he would be proud of this Institution and our continued commitment to his vision of providing good ideas to improve governance.

Strobe Talbott John L. Thornton President Chair of the Board

Strobe Talbott John L. Thornton

President Chair of the Board l Morigi Pau by Photo 1 Brookings President Senator John McCain Strobe Talbott and former President Bill Clinton

Senior Fellow Cheng Li and Professor He Weifang of Peking University Photo by Paul Mori g i Paul by Photo Photo by Paul Mori g i Paul by Photo

Condoleezza Rice, former Secretary of State s now

Christine Lagarde, Managing Director of the International Stephen Breyer, Monetary Fund Associate Photo by andrew by Photo Justice of the Supreme Court Photo by Paul Mori g i Paul by Photo

Kasim Reed, Mayor of Atlanta Photo by Paul Mori g i Paul by Photo g wan A l s I rvin al p h R A lex Photo by by Photo by Photo

Ed Rendell, former Governance Matters Governor of Pennsylvania, and rookings research spans topics ranging from the global economy to national security crises to H errin g ­metropolitan-level strategies for growth to the health of national and international political institutions. Scott Smith, Mayor of Mesa, AZ and Vice Each of Brookings’s five research programs has unique capabilities in its particular focus area. Those President of the U.S. programs—Economic Studies, Foreign Policy, Global Economy and Development, Governance Stud- Council of Mayors ies, and Metropolitan Policy—may, at first glance, seem to be disconnected from each other; but rather Shawna by Photo B than being five separate think tanks under one roof, Brookings is one Institution tied together by an Bobby Jindal, overarching theme: governance. Governor of Governance Studies was Brookings’s original research program, committed to figuring out how we can best Louisiana organize, regulate, protect, and expand our communities. In an ever-more-interconnected world—characterized by economic globalization but increasingly knitted together on a personal level through social media—our concep- Mori g i Paul by Photo tion of the community has expanded from the local and national to encompass a global vision of shared risks and shared opportunities. Governance—whether in the public sector or private sector—involves mitigating risks and taking ­advantage of opportunities. That, in turn, requires well-functioning institutions that have the capacity to engage informed citizens and chart a course for the well-being of humanity. Political dysfunction in Washington­ is imposing sig- nificant—and unnecessary—costs on America’s economy and national security, raising serious questions about whether the United States can continue to play a leadership role in advancing peace and prosperity. Threats that spill across borders need a response from a truly international community. Some of the world’s

most pressing security challenges are themselves the result of failed governance. Generations that follow will bear m er Sharon Far by Photo the consequences of the action—or inaction—we take now. In short, governance matters, and Brookings scholars are dedicated to promoting good governance and the TUSIAD Senior Fellow Kemal Kiri¸sci and Turkish Prime informed citizenry that supports it. Minister Recep Tayyip Erdo˘gan 2 Economic Studies

Vice President and Co-Director of Economic Studies “Bending the Karen Dynan and Bank of America CEO Brian Moynihan Curve” on examine the costs and benefits of home ownership. Health Care Dynan was nominated for Assistant Secretary of the Costs Treasury for Economic Policy in August 2013 he third edition of Brookings’s “Bending Tthe Curve” report, released by the Engelberg Center for Health Care Reform, continued the conver- sation about how to provide better care at lower cost. The reforms proposed in the report, which focus on the patient, not the procedure, could curtail health care costs by $300 million in 10 years and possibly $1 tril- lion in 20, if imple- mented soon. Former Senate Majority Leader Tom Daschle u l M or igi a joined Senior Fellow y P Opportunities for a New Era b Mark McClellan, a

P hoto thought-leader in the Photo by Blend Images / Alamy field, at the launch event in April, provid- ing opening remarks he U.S. economy has been resilient deficit and create a growing economy that benefits “People and commentary. since the Great Recession, yet strong more Americans. who observe Alice Rivlin, the growth remains elusive. Many families For example, Adele Morris, Economic Stud- Leonard D. Schaef- are still challenged by job loss, inad- ies Fellow and Policy Director of the Climate and Brookings have fer Chair in Health equate savings, lack of access to credit, Energy Economics Project, outlined a carbon tax respected the Policy Studies and T and high health care and education plan to reduce the deficit by $199 billion over 10 intellectual Director of the Engel- costs. The Economic Studies program is focused on years while also achieving climate change goals. integrity, the berg Center, testified revitalizing U.S. economic conditions and achiev- Another innovative solution came from Vice Presi- before the Congres- ing broadly shared economic growth for decades to dent and Co-Director of Economic Studies Karen thoughtful sional Joint Economic come. Meeting these goals will require innovative Dynan, the Robert S. Kerr Senior Fellow, who analysis, and Committee about the economic policies driven by informed discourse, proposed tax policy changes that would promote the honest need to move Ameri- drawing in a range of expert viewpoints that are increased savings among Americans, while reduc- debate that can health care away firmly rooted in rigorous analysis. ing the budget deficit by $40 billion over 10 years. from a fee-for-service These policy recommendations, and the 13 others you folks system and towards a Devising Sensible Long-Term Deficit from the Hamilton Project, attracted attention from participate in system that rewards u l M or igi Reduction Proposals the White House and Capitol Hill. a quality of service. and contribute y P Too often in Washington, political posturing and b Leading the Conversation on Tax Policy to.”

ideological rigidity are substituted for serious, P hoto workable approaches to solving our nation’s fiscal Tax reform remains a central part of any sensible —Senator Pat Toomey Senator Mark Warner (D-VA) briefs the Brookings Board challenges. In an effort to advance more concrete path toward long-term fiscal health. The Tax (R-PA) of Trustees on the fiscal challenges facing the U.S. in a ideas, the Hamilton Project at Brookings invited Policy Center, a joint project of Brookings and session at the U.S. Capitol Visitor Center moderated by recognized economic experts from around the the Urban Institute, is playing a pivotal role in Co-Director of Economic Studies Ted Gayer (left), the country—and across the political spectrum—to the debate by providing independent evaluations Joseph A. Pechman Senior Fellow. Gayer was named Vice make concrete proposals. The resulting publica- of new policy ideas. Praised for its careful, non- President and Director of the program in August 2013 tion, 15 Ways to Rethink the Federal Budget, pro- partisan­ approach and the sophistication of its vided President Obama and Congress with innova- modeling capabilities, the Tax Policy Center is well tive, actionable policy ideas on how to reduce the established as the go-to place for estimates of the 4 5 Federal Reserve Board Governor Daniel Tarullo (second from right) confers with Economic Studies Senior Fellows Donald Kohn and Martin Baily and Fellow Doug Elliott (left to right) ahead of an event on structuring the financial industry Economic Studies Council Senator Pat Toomey rookings established the Economic (R-PA) provides an Studies Council to create opportunities update on negotiations to engage leaders from the front lines to avert the “fiscal cliff” of the U.S. economy with Brookings and shares his views on Bexperts. Under the leadership of Chairman Wilbur pro-growth tax reform Ross, Brookings Trustee and Chairman and CEO and deficit reduction of WL Ross and Co., and Vice Chairman H. Rodgin at a Budgeting for Cohen, Senior Chairman of Sullivan & Cromwell, National Priorities event moderated by Senior the Council has grown in the three years since its creation. The members of the Economic Studies

u l M or igi Fellow and Co-Director a Council provide important financial support to y P Ron Haskins (right) b the Economic Studies program, along with critical

P hoto perspectives on the effects of economic policies on the business community. Through a series of Mona Sutphen and roundtable discussions, regular conference calls, John Bridgeland listen and expert briefings, members of the Council as Senior Fellow Isabel take part in substantive dialogue with Brookings Sawhill, Co-Director of the scholars around the most pressing topics on the Center on Children and nation’s economic agenda. Families (right), examines the impact of the 2012 Trustee Wilbur Ross election on the U.S. poverty and opportunity agenda u l M or igi u l M or igi a a y P y P b b P hoto P hoto

U.S. Secretary of impact and distribution of tax reform proposals. “There’s no Education Arne Duncan Financial Reform at During the 2012 presidential election, a paper speaks at a Hamilton Home and Abroad think tank by Tax Policy Center Co-Director and Economic Project event on report or Studies Senior Fellow William Gale, the Arjay and promoting attainment uring the recent financial crisis, exist- academic Frances Fearing Miller Chair in Federal Economic and achievement in K–12 ing U.S. financial regulations were Policy, and Hamilton Project Policy Director and education shown to be inadequate and even study in recent Economic Studies Senior Fellow Adam Looney, dangerous to our economy. How to memory that’s along with Research Associate Sam Brown, looked Dimprove them—and whether the Dodd-Frank at Governor Romney’s proposed tax plan, examin-

dominated a u l M or igi reforms achieve the balance needed to foster a ing tradeoffs among revenues, progressivity, and a y P

campaign the b healthy financial system—is the subject of intense rates in tax reform. The report was cited more g alph A lswan y R

way the Tax b debate on Wall Street and Main Street and in than 13,000 times in the media and drove the P hoto Washington. Brookings experts are undertaking Policy Center’s public conversation during the campaign—includ- P hoto thoughtful examination of the effects and effec- analysis of ing in presidential and vice presidential debates— tiveness of competing proposals. Mitt Romney’s over the shape and contours of tax policy. The Chair, asked, “Should Everyone Go to College?” Senior Fellow Martin Baily has played a lead- paper is a clear demonstration of how Brookings’s Sawhill’s paper concludes that, on average, college ing role in shaping this debate as co-chair of the tax plan has commitment to careful and thoughtful analysis is still a profitable and worthwhile investment, but Bipartisan Policy Center’s Financial Regulatory dominated this makes the Institution an essential player in how advises caution when choosing a major and points Reform Initiative. Baily and his colleagues are one.” policymakers and the public think about the solu- out that tuition rates are rising faster than average looking at complicated but essential issues such tions to our most important challenges. family income. —Dylan Matthews, as how to deal with non-bank financial institu- Senior Fellow Martin Baily, Director of the The Washington Post, tions, “too big to fail” banks, and regulating Creating Long-Term Opportunity Initiative on Business and Public Policy and the September 27, 2012 derivatives. and Economic Growth ­Bernard L. Schwartz Chair in Economic Policy Brookings experts are also playing a criti- Efforts to address economic growth with too near- Development, continued to examine the problems cal role in regulatory discussions abroad. Senior term a view can give short shrift to important invest- that plague the U.S. economy and what lies ahead Fellow and former Vice Chairman of the Federal ments in growth. Brookings experts are focusing crit- for future job seekers. With the assistance of Non- Reserve Donald Kohn is advising the United King- ical attention on the steps needed to foster long-term resident Senior Fellow James M. Manyika and dom’s Financial Policy Committee on financial and broadly shared economic growth and increase Shalabh Gupta, Baily published “U.S. Productivity reforms, in addition to his work on the advisory opportunity for individuals at all income levels. Growth: An Optimistic Perspective,” a paper that, in For more information about committee of the new Office of Financial Research With an eye toward how best to build human contrast to prevailing views, lays out how both inno- >Economic Studies at Brookings, at the U.S. Department of the Treasury. capital, Co-Director of the Center on Children and vation and technological opportunities and the com- visit brookings.edu/economics Families Isabel Sawhill, holder of the Cabot Family ­ ing energy revolution can lead to future growth. Follow us @BrookingsEcon 6 7 Foreign Policy

“Revolution in Former UN Secretary-General Kofi Annan (left) is Riyadh” Makes welcomed to Brookings by Vice President of Foreign Policy an Impact in Martin Indyk and President Strobe Talbott before an event the Kingdom where Annan discussed his life’s work on behalf of world stability and human rights. Indyk was named the Special enior Fel- Envoy for Israeli-Palestinian Negotiations in July 2013 low Bruce ­Riedel’s policy memo, S“Revolution in Riyadh,” looked at the possible out- comes of a popular uprising in Saudi Arabia and provided recommendations for U.S. policymakers to mitigate the threat and ameliorate the impact should a cri- sis unfold. Originally published in Big Bets and Black Swans, the memo generated a robust conversation in the Saudi Arabian blogosphere. A Saudi blogger examined Riedel’s premise that l au M or i g the same forces— y P Meeting Challenges to the Global Order b demographic, eco-

Ph oto nomic, and political— Photo by epa european pressphoto agency b.v. / Alamy that contributed to the Arab Spring are also present in the oday, complex threats to U.S. and Qatar, and now India—to bring rigorous analysis “Brookings Kingdom, increasing global security—from organized crime to bear on breaking developments and long-term provides an the risk of revolution and terrorism to nuclear proliferation challenges that affect the global order. in the country. As a and climate change—demand policy essential forum result, the web ver- approaches that go beyond traditional Offering Policy Recommendations for examining sion of “Revolution in T concepts of diplomacy and defense. for Obama’s Second Term how the United Riyadh” was viewed New challenges continue to emerge in surprising As President Obama entered his second term in States, Europe, more than 43,000 ways and in multiple domains, from cyberspace office, the Foreign Policy program released Big times from within and the South China Sea to the streets of Cairo Bets and Black Swans: A Presidential Briefing Book, and the larger Saudi Arabia. and São Paulo. These crises and transitions exist a set of 20 memos to the president. Foreign Policy community of against a backdrop of changing U.S. foreign experts identified a number of “big bets”—policies nations can policy priorities: a U.S. shift toward Asia and the in which the president should invest his power,

work together l au M or i g

withdrawal of U.S. troops from Afghanistan. The time, and prestige—and “black swans,” the low- y P outcomes of the Arab Spring continue to be con- probability, high-impact events that could derail to meet the b

tested, with the civil war in Syria escalating into the administration’s priorities. With hard-hitting ­ challenges of Ph oto a regional conflict and Iran bent on its pursuit of analyses and concrete recommendations, Big our rapidly Chairman of the Joint Chiefs of Staff General Martin a nuclear future. Bets and Black Swans provides actionable policy E. Dempsey (left) discusses the military’s role in To help policymakers in Washington and options on potential opportunities and crises such changing cyberspace and the threat that cyberattacks pose around the world grapple with this complex set as an opening in U.S.-Cuba relations, a eurozone world.” to the U.S. with Senior Fellows Michael O’Hanlon, Director of Research in Foreign Policy, and Peter of competing priorities, Foreign Policy at Brook- collapse, and a shift away from oil dependence to —Hillary Clinton W. Singer, Director of the Center for 21st Century ings provides cutting-edge research and actionable green energy alternatives. Security and Intelligence Then-Secretary of State policy recommendations that promote sustainable Complementing the hardcopy publication Hillary Clinton speaks peace, security, and prosperity in the emerging of Big Bets and Black Swans, the Foreign Policy on the importance global order. With 40 full-time scholars, the For- program developed a unique video presentation of of the Transatlantic eign Policy program’s expansive research agenda the briefing book’s key assertions and a successful Partnership to l au M or i g

covers the world’s most critical regions, leverag- digital marketing campaign. With requests for the y P confronting global b ing Brookings’s three overseas offices—in China, briefing book coming from the White House, CIA, challenges 8 Ph oto 9 Foreign Policy “It’s always a Protecting the Internally Displaced in Africa pleasure to Senior Fellow and Director Brookings India Launches hile the 1951 UN Convention on Refugees has helped millions around the world over the speak at the of the Brookings-LSE in New Delhi past six decades, no globally binding international agreement exists for the almost 30 Project on Internal With generous support from the million people displaced within the borders of their own countries. To address this deficit, Brookings Displacement Elizabeth India Founders Circle the Brookings-LSE Project on Internal Displacement (IDP Project) has worked to support Institution, the Ferris explores conditions theW African Union’s Convention on the Protection and Assistance of Internally Displaced Persons (IDPs) in at a Syrian refugee camp aunched in 2013 and based in New Delhi, premier policy in Jordan Africa. Known as the Kampala Convention, this agreement is the world’s first binding regional treaty on institution in Brookings India establishes an indepen- IDPs and marks a tremendous step forward in international law on displacement. While the Convention dent platform for policy research and entered into force in December 2012, much work is still needed to translate the agreement into policies that Washington, analysis in one of the world’s largest will improve the lives of IDPs on the ground. The IDP Project will soon publish legal commentary on the DC, in Lemerging powers. The center focuses on the key Convention and is working with the UN and the African Union to train African political leaders in the legal America, and issues affecting India, including global and domes- implications—and obligations—resulting from the Convention. IDP Project staff also work closely with inter- in the world.” tic economic growth and stability, energy security, national partners to encourage more African states to ratify the Convention and to implement it in ways and foreign policy. Joining Brookings’s other —Senator John McCain that will improve the lives of Africa’s IDPs. international research centers in Doha, Qatar (R-AZ) and Beijing, China, Brookings India will expand the Institution’s global reach and bring its long- standing commitment to quality, independence, and impact to the world’s largest democracy. Working in concert with Brookings experts in New Delhi, Brookings’s Washington-based India Project will endeavor to raise the profile of the policy issues that shape U.S-Indian relations. Brookings India would not have been possible without the generous and visionary support of the Brookings India Initiative Founders Circle, a group of Indian

f e rr i s and American business leaders who believe in the importance of independent policy research at this ab e t h critical juncture in India’s history. of eliz y s New York Times columnist and author Tom Friedman l au M or i g (left) and Vikram Mehta, Chairman of Brookings y P b e court India Ph oto Ph oto David Gregory, host State Department, National Security Council, These books and monographs are based on in- of Meet the Press, in Afghanistan, Senior Fellow Vanda Felbab-Brown and a number of congressional offices, the memos depth, scholarly research that uncovers the causes moderates a panel analyzes U.S. and international efforts in Afghani- made an immediate impact among high-level and consequences of critical issues confronting discussion on Big Bets stan and offers detailed recommendations for and Black Swans: A Washington policymakers charged with guiding the United States and the international commu- dealing with the precarious situation leading up to Presidential Briefing U.S. national security strategy. nity today. The substantive research that under- Book with Senior Fellows the 2014 transition to Afghan control and beyond. pins each book allows Foreign Policy’s experts to Suzanne Maloney, Felbab-Brown argues that allied efforts in Afghani- Securing a New Century speak authoritatively, whether they are testifying Charles Ebinger, Kenneth stan have put far too little emphasis on good gov- The changing nature of warfare and the emer- on Capitol Hill, briefing Executive Branch offi- Lieberthal, Mireya Solís, ernance, concentrating too much on short-term gence of new national security challenges require cials, or appearing in the media. the Philip Knight Chair in military goals to the detriment of long-term peace policymakers to rethink the traditional battlefields Foreign Policy published a number of influ- Japan Studies, and Robert and stability. Following the publication of Aspira- and domains that have guided defense and intelli- ential books this year, covering a wide range of Kagan (right to left) tion and Ambivalence, Felbab-Brown has been gence efforts for decades. Brookings launched the ­policy-relevant topics. In Mr. Putin: Operative in invited on numerous occasions to brief top NATO Center for 21st Century Security and Intelligence the Kremlin, Senior Fellows Clifford Gaddy and and International Security Assistance Force offi- in March 2013 to bring together Foreign Policy’s Fiona Hill, Director of the Center on the United cials, as well as senior U.S. and international dip- extensive expertise in defense, intelligence, and States and Europe and the Stephen and Barbara lomats, on matters such as the 2014 Afghan presi- arms control and nonproliferation with an emerg- Friedman Fellow, explore the many dimensions dential election, Afghan local police capabilities,

ing capacity on cybersecurity and warfare in the of Russian President Vladimir Putin’s public per- and ways to improve governance in Afghanistan. in gs brook d i a in y new millennium. Under the leadership of Senior sona—statist, survivalist, outsider, free marketeer, The Brookings Press published a courageous b Fellow Peter W. Singer, the Center takes advan- and case officer. The book seeks to help policy- book, In the Name of Justice: Striving for the Rule Ph oto tage of Brookings’s deep regional and functional makers better understand the Russian president of Law in China, by Chinese law professor He expertise to shape both public understanding and and to develop strong policy approaches to work- Weifang. Part of the John L. Thornton China official policy on key security issues. ing with Russia’s leadership. The book reached ­Center Series on Chinese Thinkers, the book the highest levels of U.S. leadership, including presents He’s critical assessment of the state of Investing in Deeper Research Vice President Joe Biden, who described the book Chinese legal reform. At the event launching the At a time when serious discussion of U.S. foreign as “insightful” in a May 2013 interview in Rolling book, Supreme Court Justice Stephen Breyer For more information about policy is frequently compressed or overlooked, Stone. offered his thoughts on lessons from the American >Foreign Policy at Brookings, Foreign Policy at Brookings remains committed In Aspiration and Ambivalence: Strategies and legal system for developing an effective rule of law visit brookings.edu/foreignpolicy to producing book-length research and analyses. Realities of Counterinsurgency and State-Building in China. Follow us @BrookingsFP 10 11 Global Economy and Development

Ending Extreme Then-Director-General of the World Trade Organization Pascal Lamy (left) and Vice President of Global Poverty Economy and Development Kemal Dervi¸s confer n 1990, 43 ahead of an event on the future of global trade as percent of the mercantilism gives way to “made in the world” world’s popula- tion lived in Ipoverty, defined as living on less than $1.25 a day. Today, with the global prog- ress made on the 2000 Millennium Development Goal of eradicating extreme poverty and hunger, the world’s poverty rate has declined to 21 percent. “The Final Countdown: Prospects for End- ing Extreme Poverty by 2030” by Fellow Laurence Chandy and his co-authors was featured in a Fostering Sustainable cover story in a June 2013 issue of The Economist and in The l Mori g i y Pau b

o Washington Post, Prosperity for a Better World t

Pho among many other Photo by Stephan Bachenheimer / World Bank media outlets.

ontinued fragility in global financial opment agenda. Brookings experts are playing a “Brookings markets and prolonged fiscal chal- direct role in these processes to inform, shape, lenges in advanced economies have and design the next generation of the MDGs. has for a demonstrated that the world economy Senior Fellow and Deputy Director Homi Kharas long time is an interdependent whole: trouble served as lead author and executive secretary of been at the C in one country can have negative the United Nations high-level panel that devel- center of the ripple effects that spread beyond its borders. oped a framework for a new global partnership to Growth in emerging markets has been faster and end poverty and promote sustainable development. transatlantic more resilient than in advanced countries, but in The panel’s report has become the go-to dialogue. I 2013 there is a clear slowdown that is not sparing source for policymakers and practitioners on enjoy seeing them. Economic relationships are changing, with development goals, targets, and metrics, and will it becoming an expanding global middle class creating sources continue to play a formative role in key debates. of growth, while the difficulties in the eurozone In tandem, experts in the Center for Universal a truly global create risks for the entire world. New stories of Education, under the leadership of Senior Fellow center of progress have also brought forth optimism about and Director Rebecca Winthrop, collaborated with excellence.” the prospects for one day eliminating poverty. the United Nations’s Global Education First Initia- —Pascal Lamy, former Throughout the year, experts in the Global Econ- tive to ensure that the next generation of MDGs Director-General, World omy and Development program have responded to focuses not only on universal access to primary Trade Organization this changing landscape, improving prospects for school education for all children, but on the criti- continued growth and prosperity. cal need for learning.

Shaping the Next Generation Creative Solutions l Mori g i y Pau b

of Millennium Development Goals for Global Economic Stability o t

As the 2015 deadline for the Millennium Devel- Lasting effects of the global economic crisis and Pho opment Goals (MDGs) rapidly approaches, the its slow recovery are still reverberating worldwide. Senior Fellow and Director of the Center for Universal Education Rebecca Winthrop discusses education in the global community is taking stock of progress to Over the last year, scholars undertook high-quality context of the post-2015 development agenda with UN Special Envoy for Global Education and former British Prime date and laying the groundwork for a new devel- research and dialogue to shape U.S. and inter- Minister Gordon Brown 12 13 Global Economy and Development Haroon Bhorat, Director of the Development Policy Research Unit at the University of Cape Town in South Africa, discusses how to translate research into policy impact at a meeting of the Africa Growth Initiative’s think tank partners, which was moderated The Brookings Blum by Senior Fellow Mwangi S. Kimenyi, Director of the Initiative (left) European Commissioner Roundtable on Global Poverty for Economic and Celebrates 10 Years Monetary Affairs and With generous support from the Euro and Vice Richard C. Blum President of the European Commission Olli Rehn n August 2013, the Brookings Blum Round- examines options for table on Global Poverty celebrated its

resolving the eurozone w International Advisory ten-year anniversary. Thanks to the leader-

crisis during a panel s no Council member Rahul ship, foresight, and generosity of Brookings discussion with European Bajaj (left) listens as ITrustee Richard C. Blum—together with the Bill policymakers

y an d r ew Senior Fellow Eswar & Melinda Gates Foundation in recent years—the b o

t Prasad gives his outlook Roundtable has become a preeminent gathering

Pho on the Indian economy that convenes high-caliber policymakers, private sector and civil society leaders, and academics and former government officials. The Committee’s for focused discussions on critical topics in global second report was released in fall 2012 and has development. The tenth roundtable focused on been widely circulated to international institutions, the role of the private sector in global develop- central banks, and regulatory agencies around the ment, and featured former Secretary of State world. Madeleine Albright, former President of Ireland “I like to Mary Robinson, and USAID Administrator Rajiv Encouraging New Global Voices Shah, among others. for International Policy Dialogue come to the Richard C. Blum (second from left), founder of Recognizing that policy solutions must be deeply Brookings the Brookings Blum Roundtable on Global Poverty, informed by the needs of people from around the Blum joins President Strobe Talbott, Honorary Co-Chair world, the Global Economy and Development Roundtable— Mary Robinson, and Vice President of Global gs b rookin program engages a unique ecosystem of allies, y me r y Sharon Far Economy and Development Kemal Dervi¸s in Aspen b b always— o o t t partners, and networks to develop and disseminate for the 2013 Roundtable p ho Pho innovative research. The Africa Growth Initia- because I tive (AGI), led by Senior Fellow and Director think that the Mwangi S. Kimenyi, has partnerships with six subjects that African think tanks to undertake joint research national policymakers’ thinking on key macro- and dialogue on attaining sustainable prosperity in are taken up economic policy questions—from how to inspire Brookings Echidna Global Africa and elevating African voices in the debate are cutting inclusive growth in post-Arab Spring countries, Scholar: Pamhidzayi Berejena over the future of the continent’s economies. To edge and particularly Egypt and Tunisia, to Latin America’s Mhongera foster these partners’ ability to achieve impact in bring together role in the global economy through a new partner- Working to Save Young Girls in Zimbabwe Africa and internationally, representatives of the ship with the Center for the Study of Economic six think tanks traveled to Washington, DC in a lot of very and Social Affairs (CERES) in Uruguay on eco- amhidzayi Berejena Mhongera wants 2012, where they received high-level communica- interesting nomic and social policy. Brookings also launched every girl in the world to understand tions training and interacted with congressional people.” I rvin

that it doesn’t matter where you come Ale x

new research on strategies for renewed growth in staffers and policymakers. In addition, AGI’s y —Madeleine Albright, b

from. Mhongera grew up in a poor vil- o Greece, Spain, and Italy, as well as hosted dia- annual Foresight Africa report continues to be one former Secretary of State t

Plage in Zimbabwe, but that has not stopped her Pho logues with high-ranking government officials and of the top pieces of content on the Brookings web- experts, such as Portugal’s Minister of State and from achieving success and giving back to others. site, attracting new and expanded audiences from Finance Vitor Gaspar, Leader of the Greek Oppo- Today, she’s making sure young girls in Zimbabwe Kenya, Nigeria, and South Africa. l Mori g i y Pau b have outlets to escape poverty.

sition from the SYRIZA coalition Alexis Tsipras, o The Global Economy and Development pro- t During her time as an Echidna Global Scholar

and European Commissioner for Economic and Pho gram also elevates voices from the developing at Brookings, she focused on her country’s strug- Monetary Affairs and the Euro and Vice President Senior Fellow and world through the Center for Universal Educa- of the European Commission Olli Rehn. Deputy Director of gles with women’s rights and the plight of orphan tion’s Echidna Global Scholars Program. With In the United States, Senior Fellow Eswar Global Economy and children. She notes, “Women and girls become the support of Echidna Giving, emerging schol- Prasad, the New Century Chair in International Development Homi vulnerable to domestic violence simply because of ars, leaders, and policy advocates whose work is Trade and Economics, presented at the presti- Kharas, who served as poverty and lack of access to information.” Since focused on improving access to quality education gious, invitation-only Jackson Hole Symposium, executive secretary returning to Zimbabwe, Mhongera has continued for girls come to Brookings for a visiting fellowship which draws prominent central bankers, finance of the UN High Level to build on the skills she learned at Brookings to that helps them hone their research and analytical ministers, academic luminaries, and financial Panel on the Post-2015 advance her work with even more energy and skills, grow networks among the international edu- Development Agenda, market players from around the world. Prasad, enthusiasm, including organizing the first-ever cation policy community, and develop a project to offers insight on the International Day of the Girl Child event in Zimba- together with Barry Eichengreen and former next generation of the be implemented upon their return to their home bwe. She now serves as a Technical Advisor to the Nonresident Senior Fellow Raghuram Rajan, now Millennium Development countries. The Echidna Global Scholars leave Ministry of Social Services of the Government of For more information about Central Bank Governor of India, reconvened the Goals Brookings better equipped to contribute their >Global Economy and Development at Brookings, Committee on International Economic Policy and Zimbabwe. unique voices on these critical education issues visit brookings.edu/global Reform, which comprises a dozen top academics in the developing world. Follow us @BrookingsGlobal 14 15 Governance Studies

Making the Grade for School Choice

Twitter CEO Dick Costolo he Brook- examines the evolution of ings the public conversation Education in the age of social Choice and media with Senior Fellow TCompetition Index, Jonathan Rauch compiled by Brown Center on Education Policy Director Grover­ “Russ” Whitehurst, the Herman and George R. Brown Chair in Education Studies, and Sarah Whitfield, provides essential information to parents and poli- cymakers to improve school choice across the country and enhance performance in public schools. The Index is an interactive web appli- Distinguished Fellow cation that scores the Jon Hunstman (left) country’s 100 largest joins Vice President and school districts in an l M origi y Pau Innovative Ideas to Improve Governance b Director of Governance effort to create pub- Studies Darrell West in P hoto lic awareness of the Photo by Blend Images / Alamy a conversation about differences among leadership and the 2012 districts in their sup- presidential campaign port of school choice, overnance Studies at Brookings Appointments Process, Why It Never Happens, and “We could do provide a framework brings rigorous analysis and thought- How We Can Get It Done, a report by Senior Fel- no better than for efforts to improve ful recommendations to the gover- lows William A. Galston, the Ezra K. Zilkha Chair choice and competi- nance challenges facing the U.S. in Governance Studies, and E.J. Dionne, Jr. to use [It’s tion, and recognize and nations around the world. With To ensure their prescriptions reached the right Even Worse leaders among school G political polarization increasing and audiences, Galston and Dionne briefed key con- Than It Looks] districts in the design confidence in government declining, Brookings gressional staff members and leaders, including as a compelling and implementation experts are promoting innovative ideas to reform Senator Charles Schumer (D-NY), who drafted of choice and com- institutions and spark conversations to get elected the initial legislation. The bill that resulted from blueprint petition systems. The leaders to do what is needed most—govern. these bipartisan discussions is now law—repre- for urgently Recovery School Dis- senting a significant step toward governing more needed trict in New Orleans Fixing the Broken Presidential efficiently and effectively. reform. If was the highest scor- Appointment Process ing district in the 2012 The highest form of Brookings impact is when Exposing the Causes every member index, and Louisiana ideas that originate with the Institution’s scholars of Gridlock in Washington of Congress Governor Bobby become the law of the land. Last year, that hap- While Brookings’s success in helping fix the would read just Jindal participated in pened in one area that has been a leading example appointment process is a small step forward, the one book on a forum recognizing of the gridlock that has paralyzed Washington. problems are deeper and more this achievement and Presidential appointments to key executive branch endemic. In It’s Even Worse the subject, my offered his own views positions have been stonewalled in recent years by Than It Looks: How the Ameri- wish is that it on school reform. routine blocking of opposition nominees by both can Constitutional System would be this parties, leaving important federal agencies without Collided With the New Politics leaders. On August 10, 2012, President Obama of Extremism, Senior Fellow one.” signed the “Presidential Appointment Efficiency Thomas Mann, the W. Averell —Tom Daschle, former and Streamlining Act,” making into law a number Harriman Chair in American Senate Majority Leader l M origi y Pau of recommendations from A Half-Empty Govern- Governance, and his co-author, b

ment Can’t Govern: Why Everyone Wants to Fix the Norman J. Ornstein of the P hoto 16 17 Michelle Rhee, Founder Governance Studies and CEO of StudentsFirst and former Chancellor of Washington, DC’s Public A New Effort to Improve Schools, discusses the Political Leadership importance of school With generous support from the districts to educational achievement with Grover S.D. Bechtel, Jr. Foundation “Russ” Whitehurst, he Governance Studies program Director of the Brown launched the Management and Lead- Center on Education ership Initiative to improve national Policy Senior Fellow Elaine Kamarck, Director of political leadership. Led by Senior Fellow TElaine Kamarck, the Initiative aims to enhance the the Management and Leadership Initiative, understanding of the nation’s current leadership and Robert Taubman deficit to find ways to change leaders’ behavior explore ways to improve and improve leadership capacity. government performance l M origi y Pau In its inaugural year, the Management and b at the Forum on Fostering Leadership Initiative hosted several public forums,

P hoto Growth through Innovation including a discussion with then-Secretary of Homeland Security Janet Napolitano on her lead- ership of the agency and how America’s home- land security environment has changed over the l M origi y Pau b last decade. American Enterprise Institute, assert that partisan P hoto “The Lawfare The Initiative became a part of the new polarization is at the root of America’s governing ­Center for Effective Public Management in problems. blog is a ­September 2013. The book generated widespread attention in terrific source John Bellinger of Arnold the media and among policymakers, including of balanced Then-Secretary of Homeland Security & Porter LLP, Nonresident being referenced by Senate leaders Harry Reid commentary… Janet Napolitano Senior Fellow Robert (D-NV) and Mitch McConnell (R-KY) during Chesney, Senior Fellow a heated debate on the Senate floor about the It’s something Benjamin Wittes, and state of gridlock. Ezra Klein, a columnist for The I try to check Professor Stephen Washington Post and Bloomberg View, in the New in on.” Vladeck of the Washington York Review of Books said that Mann and Ornstein College of Law (from —Bob Litt, General “have done the public a great service—and have left) testify at a House of Counsel, Office of the Representatives Judiciary been much braver than many in the media, the Director of National think tanks, or Congress—in using their personal Committee hearing on the a loni Intelligence use of drones in the war credibility to clearly describe what has happened on terror to American politics in recent years, and who is

y C hris Ma dd primarily to blame.” The Washington Post’s “Wonk- b blog” named it their 2012 Book of the Year. The

P hoto authors also brought their thesis to a popular audi- ence in an appearance on The Daily Show with Jon Senior Fellow Tom Mann Stewart. (right) and Nonresident Building an Senior Fellow Trevor Innovation-Based Economy Influencing National Security Potter discuss campaign Decisionmakers finance at the World overnance Studies scholars are Brookings also has tremendous impact by shap- Forum on Governance focused on how smart technology ing debates and setting the agenda for major issues in Prague policy can help the U.S. create jobs facing the nation and the world. Lawfare, a blog rmer y S h a ron Fa and improve long-term economic founded by Senior Fellow Benjamin Wittes and b

Ggrowth. Darrell West, Vice President and Direc- Nonresident Senior Fellows Robert Chesney and P hoto tor of Governance Studies and founding Director Jack Goldsmith, is the principal journalistic and of the Center for Technology Innovation, worked scholarly center for examining national security with Fellows Allan Friedman and Walter Valdivia legal issues. With more than 272,000 unique visi- on an important policy paper recommending how tors this year, Lawfare has become a must-read for to foster long-term growth of the digital economy the nation’s top legal minds. ˇ rej á t B esper in the United States. In addition, Fellow Elisabeth Lawfare fosters online discussion devoted to y O nd

b Jacobs tackled tough questions about the daunt- the hard national security choices facing policymak- ing employment prospects for young workers ers and the public. Readers from the highest levels P hoto and the unemployed in today’s labor market. In a of government, throughout the bureaucracy, the widely-cited paper, Jacobs put forth proposals for courts, Congress, the academy, and the media turn For more information about stronger investment in “lifetime learning” for the to Lawfare for thoughtful analysis of the merits of >Governance Studies at Brookings, unemployed. the underlying legal and policy debates that define visit brookings.edu/governance national security’s most pressing policy issues. Follow us @BrookingsGS 18 19 Metropolitan Policy George Stephanopoulos of ABC News moderates a panel featuring Vice President and Director of the Metropolitan Policy Program Bruce Katz, President of the Rockefeller Foundation Judith Rodin, Fellow Jennifer Bradley, and then-Mayor of Newark, NJ Cory Booker (left to right) at the launch of The Metropolitan Revolution c e Culver o by o Joy by Catalyzing Metropolitan Policy and Action t Pho Photo by Batchelder / Alamy

he Metropolitan Policy Program is space economy, which is highly concentrated in “I do want to redefining the challenges facing met- the Denver and Colorado Springs metro areas. start with a ropolitan America and promoting inno- Using the report as a guide, Governor John thanks to all of vative solutions to grow communities Hickenlooper and the state legislature have passed in more productive, inclusive, and sus- bills that boost investment in advanced industries the good work T tainable ways. Metro’s efforts enable and help more companies export their goods and that Brookings

metropolitan leaders to: (1) economically ­situate services. This success in Colorado has already has done over af i a ogr

their metropolitan area in the global marketplace become a model for other states. Metro is cur- t the years on Colorado Governor John through rigorous empirical research; (2) innovate rently working to help Tennessee and its metropol- ub Fo Hickenlooper speaks

this growth La locally through co-designing metropolitan eco- itan areas develop a plan to grow their advanced at the unveiling of the

nomic growth strategies that build on their distinct industries, especially improving the skills and and innovation a bio Launch! report

assets; (3) advocate nationally by promoting­ state innovative capacities of its automotive sector. a nd F on ways that

agenda. And t s and federal policy ideas and platforms that serve how much a the state metropolitan growth; and (4) network globally with Growing Exports to Increase Prosperity can leverage business, civic, and government leaders in met- One key path to long-term prosperity is the we’re going to its aerospace

o by o Ann a by Qu industry to boost ropolitan areas worldwide to forge new trade and embrace of global trade and engagement. This need Brookings t exports and expand investment partnerships. year, the Brookings-Rockefeller Project on State Pho and the people its economy and Metropolitan Innovation released a ten-point in this coming Richard Daley (left), Chairman of the Global Achieving Liftoff for guide for government and business leaders to Cities Initiative: A Joint Project of Brookings and State and Regional Economies develop effective metropolitan export plans, based and ongoing JPMorgan Chase, joins former President of Brazil As laboratories of reform, states are constantly on the experience of four pilot plans in Portland, struggle.” Fernando Henrique Cardoso (center) and Brookings Distinguished Fellow Javier Solana in a discussion about looking for new ways to boost their value-added Los Angeles, Minneapolis-Saint Paul, and Syra- —Senator Mark Warner strengthening trade linkages between U.S. and Brazilian industries and create quality jobs. To this end, as cuse. The guide was the basis for the Metropolitan (D-VA)

metros at a forum in São Paulo t e B ron part of a new Advanced Industries Series, Metro Export Exchange, which brought together a new released Launch! Taking Colorado’s Space Economy crop of leaders from geographically diverse metro o by o M a rk by

to the Next Level, a strategy that identifies impor- areas to learn how to create and implement their t

tant steps the state can take to strengthen its aero- own strategies in a structured peer-to-peer setting. Pho 20 21 Brookings Trustees Victoria Sant and James A. Johnson listen as Mayor Michael B. Hancock (right) outlines Metropolitan Policy Denver’s efforts to become more globally fluent at a Metropolitan Leadership Council dinner Confronting Suburban Poverty in America Senior Fellow Robert With generous support from Puentes testifies to the the Ford Foundation House of Representatives he Ford Foundation has been a stead- Subcommittee on fast and generous supporter of the Railroads, Pipelines, and Hazardous Materials Brookings Institution for decades and has long been an invaluable partner to

a loni and the Committee on Transportation and Tthe Metropolitan Policy Program. The Foundation Infrastructure on ways to worked very closely with the Metro team to exam- strengthen the federal- ine the shifting demographics of poverty in the

o by o Chris by M a dd state partnership on t United States. In Confronting Suburban Poverty

Pho passenger rail in America, Metropolitan Policy Program Deputy Director Alan Berube and Fellow Elizabeth Knee- bone brought overdue attention to rising levels of Key federal leaders praised Metro’s export poverty in the suburbs. work, including Boeing CEO Jim McNerney, While most Americans still carry the notion Chair of the President’s Export Council, who that poverty is most prevalent in inner-city neigh- emphasized the importance of federal collabora- borhoods and isolated rural areas, times have tion with state and local officials to realizing the changed. The majority of poor families in metro- goals of the National Export Initiative. Demand politan areas do not, in fact, live within city limits from mayors and regional leaders to participate but in surrounding sub- in the Exchange is high. Metro plans to generate “We are not urbs, which are often ill- new and updated trade data on exports, foreign waiting for equipped to deal with this direct investment, and freight flows in the coming socio-economic phenom- year as part of the Global Cities Initiative: A Joint Washington enon, especially in these Project of Brookings and JPMorgan Chase. This to create jobs. times of flat or declining research will serve as the foundation for working This is why municipal budgets. Then- with public and private sector leaders in 28 U.S. Los Angeles Ford Foundation President

ul Morigi metros—as well as select international metros— a Luis Ubiñas delivered the in the coming years to help them shape export partnered with

o by o P by opening remarks at the t and global engagement strategies to grow their Brookings as

Pho book’s launch. economies. the first region to implement Starting a Metropolitan Revolution Fellow Elizabeth Kneebone The source of innovation and problem-solving to an export Investing in the today’s supersized challenges will not be Washing- plan of this Green Movement ton. That is the premise of The Metropolitan Revolu- magnitude tion: How Cities and Metros Are Fixing Our Broken to help local iscal challenges in Washington, DC and Politics and Fragile Economy, a new book by Vice state capitals are making it hard for President and Director of the Metropolitan Policy companies green, low-carbon enterprises to grow. Program Bruce Katz and Fellow Jennifer Bradley. reach into Senior Fellow and Policy Director Mark The book, replete with stories and its own iPad app international FMuro and several of his Brookings colleagues and webpage, shows how political gridlock in Wash- markets so we identified this problem in their paper, “State Clean ington is forcing U.S. cities to bypass the federal Energy Finance Banks: New Investment Facilities government and develop their own plans for growing can create new for Clean Energy Deployment.” jobs and economic opportunities. By connecting jobs here in Their research chronicled the obstacles fac-

more purposely with their surrounding metropolitan Los Angeles.” ng wa ing low-carbon energy enterprises and pointed regions, they are becoming the driving force behind —Antonio Villaraigosa, to the creation of Connecticut’s Clean Energy our nation’s economic growth. The book reveals why former Mayor, Los l p h Ra Als Finance and Investment Authority as a posi- it’s time to re-imagine the

Angeles o by tive sign and potential model to emulate. Since economy, both national and t the creation of the “green bank” in Connecticut global, as a network of metro Pho ul Morigi and the paper’s publication, New York Governor a areas growing together, linked Andrew Cuomo has pledged $1 billion to start a o by o P by by trade and driven by innova- green bank in New York, and Hawaii has begun to t

Pho tion. It has attracted attention follow Connecticut’s and New York’s lead. These from policymakers at every small “green banks” stand ready to make a big Vice President and Director of the Metropolitan Policy Program Bruce Katz and Brookings Trustees Klaus level of government, media, impact on the nation’s energy supply by providing For more information about the Kleinfeld and Dominic Barton (left to right) identify proven and business and community > a dedicated source of financing. Metropolitan Policy Program at Brookings, strategies for bolstering advanced industries during the leaders who want to be part visit brookings.edu/metro Forum on Fostering Growth through Innovation of this revolution. Follow us @BrookingsMetro 22 23 Brookings President to make additional investments in 21st century Strobe Talbott (left) The Second Century Campaign confers with Vice Chair tools and strategies, including an enhanced social of the Board and Second media and web presence. With an expanding global Century Campaign Chair footprint—including overseas offices in China, Glenn Hutchins India, and Qatar—Brookings also seeks investments to help bring policy recommendations to a global

audience. afia ogr t Second Century Campaign Goals ub Fo

To accomplish this bold vision, the Second Cen- La

tury Campaign seeks to raise $600 million ahead a b i o

of Brookings’s centenary in 2016. With the out- and F

standing leadership of Campaign Chair and Vice ast Chair of the Board Glenn Hutchins, many promi- nent donors—including 100 percent of the Brook- o by o A nna by Qu

ings Board of Trustees—have already stepped t

forward with unprecedented levels of support. Pho Brookings currently seeks gifts for the following The Global Cities Initiative JPMorgan Chase & investment priorities: Co. Chairman and CEO Goes to São Paulo Jamie Dimon explores With generous support from the importance of l Ensuring Quality: $150 million for the endow- ment and durable funds for Brookings experts, JPMorgan Chase & Co. connecting cities through trade with programs, and facilities he Global Cities Initiative: A Joint Project Amy Liu, Co-Director of l Sustaining Independence: $30 million for of Brookings and JPMorgan Chase is a the Metropolitan Policy strategic initiative funds for Brookings’s Presi- five-year effort to help the leaders of U.S. Program, at a Global dent and research Vice Presidents and global metropolitan regions strengthen Cities Initiative Forum l Maximizing Impact: $25 million for outreach, Ttheir regional economies by becoming more competi- in São Paulo, Brazil social media, digital technology, and other tive in the global marketplace. The Initiative is built on impact strategies the concept that the global economy is a network of Addressing the Challenges l Strengthening the Annual Fund: $30 million metropolitan economies that are home to most of the world’s population, produc- in unrestricted, general operating funds tion, finance, and sources of innovation. In November 2012, the Global Cities Ini- l Providing Program Support: $365 million itiative held a forum in São Paulo, Brazil, its first outside the U.S. Throughout the of a New Century for research projects and initiatives across the week in Brazil, Bruce Katz, founding Director of the Metropolitan Policy Program, Institution and Richard Daley, former Mayor of Chicago and Senior Advisor to JPMorgan Photo by Paul Morigi Chase & Co., hosted a series of workshops, tours, and briefings that enabled the The Brookings Institution has more than delegation of over 40 U.S. metropolitan leaders to connect with Brazilian lead- doubled in size in the last decade in order to meet ers, including former President Fernando Henrique Cardoso, to boost trade and n the nearly 100-year history of the Brookings enable the Institution’s scholars to focus on their “As we the growing demands for independent, pragmatic investment. In 2013, the Global Cities Initiative is bringing its innovative approach Institution, global change has rarely been as research, analysis, and policy recommendations for approach our solutions to major challenges. The Second Century to fostering economic growth to four domestic forums—in Atlanta, Dallas, Denver, unpredictable, multifaceted, and consequential greater impact locally, nationally, and globally. Campaign will sustain that growth and position and Houston—along with one in Mexico City, to continue building a global network as it is now. At the same time, U.S. partisanship Sustaining Independence. The value that centennial, this Brookings for a continued leading role in guiding of cities linked by trade and shared prosperity. and polarization are more extreme and toxic than Brookings brings to the policy debate—and to its is Brookings’s the critical decisions facing our nation and the I at any time since the late nineteenth century, supporters—is rooted in the Institution’s abso- world. Brookings invites you to get involved with moment. The and public trust in government is at an all-time low. lute commitment to independence and rigorous, the Institution for leading-edge research and analy- Few institutions are better positioned than ­evidence-based study of the issues. Because the issues facing sis of critical local, national, and global issues. Brookings to provide the breadth, depth, and qual- policy recommendations that emerge from this our nation are ity of research and analysis needed to meet these approach are free from ideological bias, they gain of enormous challenges. As one of the world’s leading think tanks, greater traction with policymakers, the public, and consequence and Brookings is launching the Second Century Cam- other key audiences. Further, the pace of change paign to provide a solid foundation for this important in the world demands that Brookings retain the our governing work in the coming century and beyond. flexibility to launch new research and convene key process is often stakeholders on short notice. The Second Century at loggerheads. A Rich History, A Bold Vision Campaign will support expanded strategic initiative Brookings The Second Century Campaign derives from the funds for the President and research Vice Presi- Trustee and enduring values of the Institution itself—Quality, dents that provide secure, unrestricted funding to scholars play an Development Chair Independence, and Impact. advance high-quality, independent research. indispensable Cheryl Cohen Effron Ensuring Quality. Brookings has long been Maximizing Impact. All Brookings research is role in crafting and Vice President of Governance Studies recognized for the excellence of its scholars and driven toward action—converting in-depth research solutions to the Darrell West (center) the quality of their research. The Second Century and pragmatic ideas into public policy. The Second thorniest public listen as Chair of the Campaign will help Brookings to continue attract- Century Campaign will bring resources to invest Board John Thornton ing the best scholars across many disciplines by in outreach capacity to ensure that policy recom- policy problems.” discusses Campaign ul Mor i g ensuring that resources are available to support mendations by Brookings experts reach influential —Glenn Hutchins, priorities between a o by o P by

their work. Brookings will strive to double the num- audiences in government, the private sector, and Second Century sessions at a Board t

ber of endowed chairs and expert funds, which will the media. To achieve these goals, Brookings seeks Campaign Chair of Trustees meeting Pho 24 25 The Second Century Campaign Supporting Development and Helping Cities Retool Advancing Democracy Manufacturing and Create With generous support from the William and Flora Hewlett Foundation Jobs and Planning for China’s Low-Carbon Future ver the and transparency, and of African researchers With generous support from course of inclusive growth. Other in policymaking and Alcoa and Alcoa Foundation more than Hewlett Foundation planning. thirty-five grants enabled Center The Foundation’s lcoa and its Foundation are deeply Oyears of investing in for Universal Education investments in Gover- committed to supporting critical shared priorities, the Wil- experts, under the lead- nance Studies supported research and public policy to cre- liam and Flora Hewlett ership of Senior Fellow the program’s work on ate a workforce ready for careers in Foundation has supported and Director Rebecca strengthening American Amanufacturing as skilled operators, engineers,

projects and initiatives Winthrop, to collaborate democracy, led by Senior g l p h Ra Al swan designers, and managers. In 2013, Alcoa Founda- “As we embark

in all five of Brookings’s with UNESCO’s Institute Fellow Elaine Kamarck, o by tion made a generous multi-year gift in support t on our second of efforts in three of Brookings’s research pro-

research programs. In for Statistics in establish- which aims to enhance Pho 2013, the Foundation ing a Learning Metrics the understanding of grams in honor of Brookings’s Second Century century, we Trustee Haim Saban (center) with Vice President of are seeking made several important Task Force, which seeks contemporary U.S. gov- Foreign Policy Martin Indyk before the annual Saban Campaign. For the Metropolitan Policy Program, g l p h Ra swan Al Forum the Alcoa Foundation is providing resources to grants in support of the to develop a set of inter- ernance challenges and other vision- o by t Governance Studies and nationally comparable identify a comprehensive help cities retool manufacturing and improve job ary individuals, Pho Global Economy and benchmarks for assessing agenda for constructive training as part of an emphasis on promoting corporations, Brookings Council member and Treasurer of the Irene Development programs. what students are learn- change. Another grant advanced industries to enhance U.S. competitive- Diamond Fund Peter Kimmelman (left) with Irene Hewlett Foundation ing. The Foundation’s from the Hewlett Foun- ness. In addition, the Foundation is supporting and founda- Diamond Fund President Jane Silver and Trustee support was critical in generous support for dation enabled Senior work in Governance Studies on how federal and tions to sustain and Second Century Campaign Cabinet member Al establishing the Global AGI enabled Senior Fel- Fellow Thomas Mann to state government policies can contribute most Brookings’s Engelberg before an Engelberg Center for Health Care Economy and Develop- low and Director Mwangi convene a one-day con- effectively to building a workforce that has the Reform event on biomedical innovation ment program in 2006, Kimenyi and his team to ference that examined skills to fill the jobs of tomorrow. Alcoa Founda- innovative, and this year it provided conduct high-quality pol- the Supreme Court’s rul- tion is also contributing to work in the Brookings research-based ul Mor i g dedicated funds to the icy research and analysis ing in Shelby County vs. a Climate and Energy Economics Program in Eco- recommenda- Africa Growth Initiative focused on attaining sus- Holder and its impact on nomic Studies, which is using advanced model- o by o P by

t tions in this (AGI) and research and tainable economic devel- voting rights and election ing techniques to analyze possible impacts of Pho China’s efforts to steer its massive economy to a time of unprec- dialogue on the global opment and prosperity in administration, and pros- Trustee John White details the importance of workplace development agenda, aid Africa, with an emphasis pects for future legisla- education in manufacturing industries on a panel with low-carbon future. Under the leadership of Chair- edented global effectiveness, governance on amplifying the voice tive action. Representative David Cicilline (D-RI) at the annual John man and CEO Klaus Kleinfeld, who is a Brookings change.” Hazen White Forum on Public Policy Trustee, the company made a gift of general oper- —Strobe Talbott, ating support that provides critical resources that President enable Brookings to bring its commitment to qual- ul Mor i g

ity, independence, and impact to the most press- a ing challenges facing policymakers in the U.S. and o by o P by around the world. Second Century t Pho Campaign Roger Sant (left) speaks with Trustee and Second Cabinet Century Campaign Cabinet member Ken Jacobs Brookings is grateful for the support of Trustee and these leaders as we Second Century work to accomplish ul Mor i g Campaign a the visionary goals

Cabinet member o P by and objectives of t s

Andrew Tisch Pho the Second Century Andrew and Ann Tisch Campaign: l Glenn Hutchins o by o Al e x in by Irv o by kin g o broo by t ith the generous support of Brook- t Campaign Chair ul Mor i g Pho Pho a ap h e r s ings Trustee Andrew Tisch and his l Cheryl Cohen Effron Julie Sunderland, Director Robert Gallucci, President ogr wife Ann, the newly established Development Chair t o by o P by of Program-Related of the John D. and t Andrew and Ann Tisch Endowed l Alan M. Dachs Investments at the Bill & Catherine T. MacArthur Pho DistinguishedW Visiting Fellowships in Governance Melinda Gates Foundation, Foundation, explains l Alfred B. Engelberg Managing Director Bill Antholis (left) asks Trustee and hl e r Pho Hec Studies will bring former top government officials Second Century Campaign Cabinet member Ben Jacobs speaks about the role options for countering l Bart Friedman

o by o by and private sector leaders to Brookings to conduct t of the private sector in nuclear proliferation to for his thoughts following the Forum on Growth through l Benjamin R. Jacobs Pho research and participate in private and public global development at rogue states Innovation l Kenneth M. Jacobs Vice Chair of the Board David Rubenstein at a Brookings event in New York events in their areas of expertise. Tisch Distin- the 10th annual Brookings guished Visiting Fellows will enhance Brookings’s Blum Roundtable on l Victoria P. Sant work with their senior perspective and experience Global Poverty l Andrew H. Tisch For more information about the at the highest levels of government and business. > l Ezra K. Zilkha Second Century Campaign, visit brookings.edu/secondcentury 26 27 Support for Brookings

Vice President of Global Economy and Development Kemal Dervi¸s updates Vice Chair of the Board Suzanne Nora Johnson, Co-Chair of the Global Leadership Council, on his program’s priorities for the coming year ss

Empowering Independent Research y B i nd e lgla y P err and Intellectual Freedom b Photo Photo Photo by Andrew Snow Members of the Brookings Council watch the final debate of the 2012 campaign at an event in New York

rookings’s valued contributors play an essential role in sustaining the qual- ity, independence, and impact of the Kelvin Dushnisky (far left) and Michael Brown (far Institution’s work. Since its founding, right) of Barrick Gold are welcomed to the Chairman’s generous support from individuals, Circle of the Brookings Council by Chair of the Board B foundations, and corporations has John Thornton (second from left). They are joined by enabled Brookings experts to develop practi- Gustavo Cisneros cal, enduring solutions to the most urgent policy challenges facing the nation and the world. The Institution’s donors also bring valuable intellectual insights and private sector perspectives that enrich Brookings experts’ research and strengthen their policy recommendations.

A Catalyst for Research w Snow y Paul Mo ri g i y Paul

and Implementation b

The Brookings Council is the Institution’s core A nd re y Photo Photo b group of individual and corporate supporters, pro- Trustee Ann Fudge takes

viding crucial unrestricted funding for research, Photo part in a presidential publications, and events. Throughout the year, Everett Cook (center) transition simulation members of the Brookings Council enjoyed fre- and Anders Brag (right) exercise at a Brookings quent opportunities to engage in thoughtful dia- welcome James Torrey Board meeting logue on timely policy topics with leading experts, to a Brookings Council in a variety of formats. event they co-hosted in In October, the Brookings Council was invited New York featuring Senior y Paul Mo ri g i y Paul

Fellow Cheng Li b to watch the final debate of the 2012 presiden-

tial campaign, which focused on foreign policy, Photo 28 29 Trustee and Co-Chair of Support for Brookings the International Advisory Council Paul Desmarais, Jr. leads a discussion of Victoria P. Sant developments around the world at the Council’s rustee Vicki Sant and her husband Roger with Brookings scholars at simultaneous events in annual meeting created a charitable remainder trust that California and New York. The California event, co- supports Brookings’s general operations, hosted with the Center for International Security helping ensure that Brookings has the and Cooperation at Stanford University and the Tresources to sustain the excellence that defines the Ploughshares Fund, featured Brookings President Institution’s work. Vicki and Roger Sant are lead- Strobe Talbott, while the New York event included ing national philanthropists who have generously Managing Director Bill Antholis and Senior Fel- supported Brookings for many years. “Including lows Bill Galston and Robert Kagan. In each city, w Snow Brookings in our estate planning was a natural way the Brookings scholars provided key background A nd re to extend our support for the great work they do,” y on the issues and engaged in a lively dialogue with b Sant said. “Roger and I are pleased to be able to the Council members in attendance ahead of the Photo Photo help give Brookings experts the tools they need to debate, allowing for in-depth analysis of the candi- achieve real impact.” dates’ positions. Taking part in events such as the debate-watch Trustee and Second Century Campaign parties is how many Brookings Council members Cabinet member Victoria Sant begin their involvement with the Institution. For example, longtime Brookings Council member Everett Cook has become increasingly engaged with

Brookings since participating in his first Council w Snow event almost a decade ago. Early in his association A nd re y with the Institution, he joined two separate Brook- b ings traveling delegations on trips to India and Photo Photo China, where he had the chance to interact with Trustee John Whitehead (left) Brookings experts and gain a new, more in-depth shares his perspective with understanding of the culture and politics of the two Trustee Alan Dachs, Chair of nations. “My involvement with the Brookings Coun- the Foreign Policy Program cil has been personally rewarding and intellectually Leadership Committee and stimulating,” Cook said. “The events are timely and Second Century Campaign interesting and I appreciate the dialogue with the Cabinet member experts and other Council members.” w Snow

A growing number of leading companies have A nd re y realized the value of working with Brookings experts b

on key issues. Brookings is delighted to welcome Photo Barrick Gold—the world’s leading gold producer—as Trustees Nemir Kirdar (left) and Tracy Wolstencroft discuss Brookings’s research one of the newest members of the Chairman’s Cir- agenda during a Board meeting cle of the Brookings Council. Canada-based Barrick Gold operates mines and development projects on four continents, so it can draw on Brookings experts Brookings Executive Education to better understand developments across the globe, Educating Leaders for Today’s Challenges y Paul Mo ri g i y Paul as well as the possible policy responses from Wash- b ington and international capitals. On a local level, n partnership with the Olin Business School at Washington University Photo Photo Barrick Gold’s significant operations in Nevada in St. Louis, the Brookings Executive Education (BEE) program provides mean that the Brookings Mountain West work that high-quality executive education to government and private sector lead- all five research programs are doing in partnership ers. The BEE program includes certificate programs in public leadership or Ipolicy strategy and a Master of Science degree in leadership. BEE also runs the with the University of Nevada, Las Vegas offers significant opportunities for company executives highly respected Legis Congressional Fellowship program, which has proven to engage with Brookings experts. Through their extremely popular on Capitol Hill for providing high-quality fellows to congres- involvement with Brookings, Barrick Gold executives sional offices. have access to valuable insights into the policy chal- BEE’s innovative Leading Thinking™ model, which teaches leaders to think lenges that can affect global businesses. differently to improve performance, has produced a new wave of government and industry executives who are better equipped to solve problems and lead Harnessing Intellectual Power from Abroad their organizations. As an example, a BEE Master’s student who is a strategic Brookings’s International Advisory Council com- planner in the Department of Defense was asked to bring together 33 agencies to radically improve performance of U.S. missile ranges, while also lowering Trustees Phil Knight prises distinguished business and community lead- (left) and Antoine van costs. Applying one of the Leading Thinking™ processes to this challenge, the ers representing 25 countries across five continents. Agtmael, Co-Chair of the student achieved consensus among the agencies on both the problem’s formu- w Snow Co-chaired by Trustees Antoine van Agtmael and International Advisory

lation and an effective solution that saved $3 billion. A nd re Paul Desmarais, Jr., the Council’s diverse member- Council, welcome new y b ship brings a critical international perspective to Trustee Lei Zhang (right)

Brookings’s work and helps Brookings advance the Photo to his first Board meeting 30 31 Support for Brookings

Welcoming New Trustees rookings elected six new Trustees and two returning Trustees global reach of its research and analysis, along with to the Board in 2013. They join a distinguished group of leading important financial support. The International Advi- business executives, academics, and community leaders who help sory Council convenes in Washington each spring govern the affairs of the Institution. The Board, which meets three for a two-day meeting that includes conversations Btimes per year, approves the fields of scholarly investigation and safeguards with policymakers and Brookings experts, as well ss the independence of the Institution’s work. Brookings welcomes its newest as visits to important places where policy is made. members to the Board of Trustees: In between meetings, members of the Council take

part in events and meetings with Brookings experts y B i nd e lgla Paul Achleitner and senior leadership in Washington and abroad, Non-Executive Chairman y P err providing vital counsel and insight throughout the b Deutsche Bank AG

year. Eight new members joined the International Photo Advisory Council this year: Trustee and Second Century Campaign Cabinet member l Nicolas Berggruen, Chairman, Berggruen Institute Bart Friedman (left) introduces Senior Fellow Bill on Governance, United States Galston, the Ezra K. Zilkha Chair in Governance Studies, w Snow before his remarks to the Brookings Council Alfonso Fanjul l Mick Davis, Founding Partner, X2 Resources Chairman and CEO ­Limited, United Kingdom A nd re y b Fanjul Corporation and l J. Jon Imaz, Executive Managing Director, Florida Crystals Corporation Industrial and New Energy Division, Repsol, Spain Photo l Javier Monzón, Chairman, Indra, Spain Andrew Klaber (standing) l José Oliu Creus, Executive Chairman, Banc introduces Fellow Tom Sabadell, Spain Wright (center) and Senior Pete Higgins Fellow Bruce Jones at l Marian Puig, EXEA, Spain Founding Partner a Robert S. Brookings l Dato’ Sri Tahir, Chairman and CEO, Mayapada Second Avenue Partners Society event in New York Group, Indonesia l Yuanqing Yang, Chairman and CEO, Lenovo Group

Engaging the Next Generation Steven Rattner* As Brookings approaches its centenary, a new

w Snow Chairman generation of donors is engaging with the Institu- Willett Advisors LLC

tion, fostering support and dialogue. The Robert A nd re y Paul Mo ri g i y Paul y b S. Brookings Society is a new forum for emerg- b ing leaders to take part in substantive exchanges Photo Photo Photo Photo with Brookings experts and each other in a variety New Trustee Alfonso Trustee Alan Batkin discusses developments in the of settings. Coupled with interactions with the Fanjul speaks with Trustee Middle East with Senior Fellow Tamara Wittes, Director Wilbur Ross Brookings Council, their involvement with Brook- and Second Century of the Saban Center for Middle East Policy Chairman and CEO ings gives them a solid foundation in policy issues Campaign Cabinet WL Ross & Company LLC and their solutions. member Ezra Zilkha Understanding during a break at a Board a Changing World Sustaining Brookings’s Impact meeting With generous support from Contributions to the endowment provide a perma- UnitedHealth Group Director of the Engelberg Center for Health Care Reform Amy Schulman nent financial foundation for key policy priorities Alice Rivlin, the Leonard D. Schaeffer Chair in Health Group President and ensure an enduring legacy for the donors. An he economic and political forces that Policy Studies, talks about the Center’s work with Vaccines, Oncology and example of this kind of critical, durable support from drive business decisionmaking can Trustee Louis Cabot Consumer Healthcare this year is the establishment of the Lee Kuan Yew interact in complex and sometimes Pfizer, Inc. Chair in Southeast Asia Policy Studies, which will unpredictable ways. Continuing eco- support Brookings’s expanded work on the region, Tnomic weakness, shifting demographics, and thanks to endowed support from a group of forward- growth of emerging markets are just some of the Beatrice Welters* thinking donors. Named in honor of the first Prime challenges facing executives trying to navigate an Founder and Co-Chairperson Minister of Singapore in recognition of his transfor- uncertain business climate. To help make sense

y Paul Mo ri g i y Paul AnBryce Foundation mative leadership, this new, permanent chair in the of these trends, UnitedHealth Group’s senior b

Foreign Policy program expands Brookings’s capacity leadership looked to Brookings for analysis. With Photo on East Asia-related issues, bringing important new a grant in support of Governance Studies and attention to U.S. policy toward the region. With the the Metropolitan Policy Program, the company is U.S. increasing its focus on Asia, the addition of providing critical resources that enable Brookings Lei Zhang the Lee Kuan Yew Chair to the Center for North- experts to conduct research and make policy rec- Founder and CEO east Asian Policy Studies—transforming it into the ommendations on pressing issues. Also included Hillhouse Capital Management Center for East Asian Policy Studies—will cement in the gift is a flexible fund that supports work on emerging policy challenges and new priorities. Brookings as a premier resource for policymakers * Returning Trustees and business leaders working in and on the region. 32 33 Board of Trustees International Advisory Council

John L. Thornton Kenneth M. Duberstein Edgar Rios HONORARY TRUSTEES Ann Dibble Jordan rookings established the International Advisory Council, a group Chair of the Board Chairman and CEO Co-Founder and Managing Brookings The Duberstein Group, Inc. Director Elizabeth E. Bailey Vernon E. Jordan, Jr. of distinguished international business and community leaders, to Wenzi Capital Partners Professor Emerita and John C. Senior Managing Director extend its outreach and relevance to other countries and increase Glenn Hutchins Cheryl Cohen Effron Hower Professor of Business Lazard Vice Chair of the Board Founder James Rogers and Public Policy Of Counsel its ability to inform the American public and policymakers about Brookings Conjunction Fund Chairman The Wharton School Akin Gump Strauss Hauer global developments. Members—who represent 25 countries on Co-Founder Duke Energy University of Pennsylvania & Feld, LLP B Silver Lake Alfonso Fanjul five continents—provide invaluable advice and diverse perspec- Chairman and Chief Executive Wilbur Ross Zoë Baird Budinger Herbert M. Kaplan tives on developments in their own regions, along with candid insights into Suzanne Nora Johnson Officer Chairman and Chief Executive President Chairman how the U.S. and its policies are received abroad. Membership on the Inter- Vice Chair of the Board Fanjul Corporation and Florida Officer The Markle Foundation Warren Equities Brookings Crystals Corporation WL Ross & Company LLC national Advisory Council is by invitation only. Former Vice Chairman Rex J. Bates Donald F. McHenry Ann M. Fudge Haim Saban Distinguished Professor in the The Goldman Sachs Group, Inc. Antoine W. van Agtmael J. Jon Imaz Former Chairman and CEO Chairman and CEO Richard C. Blum Practice of Diplomacy and Jorma Ollila Co-Chairman of the IAC Executive Managing Director, Chairman David M. Rubenstein Young & Rubicam Brands Saban Capital Group, Inc. Chairman and President International Affairs Senior Adviser Industrial and New Energy Royal Dutch Shell Vice Chair of the Board Blum Capital Partners, LP School of Foreign Service Garten Rothkopf Division Netherlands Brookings Ellen V. Futter Leonard D. Schaeffer Georgetown University Geoffrey T. Boisi Co-Founder and Managing President Founding Chairman and CEO Former Chairman Repsol Chairman and CEO Victor Pinchuk Director American Museum of Natural WellPoint Mario M. Morino Ashmore EMM, LLC Spain Roundtable Investment Partners Founder a ndrew snow History Co-Founder and Chairman y The Carlyle Group Amy W. Schulman Paul Desmarais Jr. Sheikh Hamad Bin Jassim Bin EastOne Ltd. b LLC Venture Philanthropy Partners o Co-Chairman of the IAC t Strobe Talbott Brian L. Greenspun Group President, Vaccines, Jabr Al-Thani Ukraine

Louis W. Cabot, chair emeritus Pho President Chairman and CEO Oncology and Consumer Samuel Pisar, Ph.D. Chairman and Co-CEO Former Prime Minister and Greenspun Media Group Healthcare Chairman International Lawyer Power Corporation of Canada Minister of Foreign Affairs Marian Puig Brookings EXEA Vice President of Global Economy and Development Pfizer, Inc. Cabot-Wellington LLC New York and Paris Qatar Robert J. Abernethy Pete Higgins Mohammed Mahfoodh Spain Kemal Dervi¸s, Nonresident Senior Fellow Vera Songwe, William T. Coleman, Jr. President Founding Partner Lynn Thoman Charles W. Robinson Alardhi Takashi Kawamura and Trustee Antoine van Agtmael, Co-Chair of the Second Avenue Partners Co-President Senior Partner and The Senior President Chairman Chairman and CEO Itamar Rabinovich American Standard Development Former President, Tel Aviv International Advisory Council, listen as Council Leon Lowenstein Foundation Counselor Robinson & Associates, Inc., Rimal Investments Hitachi, Ltd. Co., Inc. University Shirley Ann Jackson, Ph.D. O’Melveny & Myers LLP CBTF Co., and M Ship Co. Oman Japan member Tokyo Sexwale (left) shares his perspective Paul M. Achleitner President Larry D. Thompson Former Israeli Ambassador to on Africa’s growing role in the global economy Kenneth W. Dam Non-Executive Chairman Rensselaer Polytechnic Institute Executive VP of Government James D. Robinson III Mukesh Ambani Andrónico Luksic the U.S. Max Pam Professor Emeritus of Deutsche Bank AG Affairs, General Counsel, and General Partner and Co-Founder Chairman Vice Chairman Israel Benjamin R. Jacobs Corporate Secretary American & Foreign Law RRE Ventures Reliance Industries Banco de Chile Liaquat Ahamed Senior Advisor and Founder PepsiCo, Inc. University of Chicago Law School India Chile Nassef Sawiris Former Chief Executive Officer The JBG Companies Victoria P. Sant Chief Executive Officer Steven A. Denning Fischer Francis Trees and Michael L. Tipsord President Delphine Arnault Philip Mallinckrodt Orascom Construction Industries Kenneth M. Jacobs Chairman Watts, Inc. Vice Chairman and Chief The Summit Foundation Executive Vice President Group Head of Private Banking Egypt Chairman and CEO Operating Officer General Atlantic Louis Vuitton Schroders PLC Dominic Barton Lazard State Farm Insurance Companies B. Francis Saul II France United Kingdom Tokyo Sexwale Vishakha N. Desai, Ph.D. Global Managing Director President and Chairman Minister of Human Settlements Richard A. Kimball, Jr. Special Advisor for Global Affairs McKinsey & Company, Inc. Andrew H. Tisch B.F. Saul Company Rahul Bajaj Jorge Mandelbaum Government of South Africa Chief Strategy Officer Co-Chairman of the Board and Columbia University Chairman Chairman of the Advisory Board Republic of South Africa Robert M. Bass Accretive Health Inc. Chairman of the Executive Ralph S. Saul Bajaj Auto Limited CIPPEC (Center for the Alfred B. Engelberg President Committee Former Chairman India Implementation of Public Charles Sirois Nemir Kirdar Trustee Keystone Group, L.P. Loews Corporation CIGNA Corporation Policy) Chairman of the Board Founder, Executive Chairman The Engelberg Foundation Nicolas Berggruen Argentina Canadian Imperial Bank of Alan R. Batkin and CEO Antoine W. van Agtmael Michael P. Schulhof Chairman Commerce Investcorp Lawrence K. Fish Chairman and CEO Berggruen Institute on Chairman Senior Adviser Jaime J. Montealegre Canada a ndrew snow

Former Chairman and CEO Global Technology Investments y Converse Associates, Inc. Klaus Kleinfeld Garten Rothkopf Governance President b Citizens Financial Group, Inc. Kihak Sung o Former Chairman United States Sigma Management, SA t Crandall Bowles Chairman and Chief Executive John C. Whitehead, chair emeritus Chairman and CEO Ashmore EMM, LLC Cyrus F. Freidheim, Jr. Costa Rica Pho Chairman Officer Tae-won Chey Youngone Corporation Chairman Stephen M. Wolf The Springs Company Alcoa, Inc. Beatrice W. Welters Chairman Javier Monzón South Korea International Advisory Council member Kihak Old Harbour Partners, LLC Chairman Founder and Co-Chairperson SK Holdings Chairman Sung (right) speaks with Vice President of Hanzade Do˘gan Boyner Philip H. Knight RR Donnelly and Sons Company Dato’ Sri Tahir AnBryce Foundation Bart Friedman South Korea Indra Vice Chairwoman Chairman Chairman and CEO Foreign Policy Martin Indyk before President Senior Partner Ezra K. Zilkha Spain Do˘gan Holding ¸Sirketler Grubu Nike, Inc. John H. White, Jr. George David Mayapada Group Strobe Talbott’s remarks at the House of Cahill Gordon & Reindel President A.¸S. Rajan Bharti Mittal President and CEO Zilkha & Sons, Inc. Chairman Katsuhiro Nakagawa Indonesia Sweden Taco, Inc. David Friend Coca-Cola Hellenic Bottling Chairman Paul L. Cejas Vice Chairman and Managing Marcus Wallenberg President and CEO Company Institute for International Chairman Director Tracy R. Wolstencroft Chairman Bharti Enterprises Limited Carbonite, Inc. Greece Economic Studies PLC Investments, Inc. Advisory Director Senior Advisor to the Board Skandinaviska Enskilda Goldman, Sachs & Co. William A. Haseltine, Ph.D. Mick Davis Banken AB Abby Joseph Cohen Nigel Morris Toyota Motor Corporation President Founding Partner Sweden President, Global Markets Managing Partner Daniel Yergin Japan The Haseltine Foundation X2 Resources Limited Institute and Senior QED Investors Vice Chairman Yuanqing Yang Chairman United Kingdom Hutham S. Olayan Investment Strategist IHS, Inc. Chairman and CEO James Murren Haseltine Global Health, LLC President and CEO, Olayan Goldman, Sachs & Co. Chairman and CEO Founder John Elkann America Lenovo Group IHS Cambridge Energy Research Teresa Heinz Chairman Howard E. Cox MGM Resorts International The Olayan Group Dieter Zetsche Associates Chairman FIAT SpA Advisory Partner Saudi Arabia Chairman Thomas C. Ramey Heinz Family Foundation Italy Greylock Former Chairman Lei Zhang José Oliu Creus Daimler Corporation Founder and CEO Joel Z. Hyatt Pablo González Guajardo Germany Arthur B. Culvahouse, Jr. Liberty International, Liberty Executive Chairman Mutual Group Hillhouse Capital Management Former CEO Chief Executive Officer Banc Sabadell Partner Kimberly-Clark de México a ndrew snow Current Media, LLC Spain y O’Melveny & Myers LLP Daniel B. Zwirn Mexico b Steven Rattner o Managing Partner James A. Johnson, chair emeritus t Alan M. Dachs Chairman Zwirn Family Interests, LLC Chairman Pho President and CEO Willett Advisors LLC Johnson Capital Partners Fremont Group International Advisory Council member Jon Imaz (right) at the Council’s annual gathering in Paul Desmarais, Jr. Chairman and Co-CEO Washington, DC Power Corporation of Canada 34 35 Honor Roll of Contributors Cash Received July 1, 2012–June 30, 2013

$1,000,000 and Above Dubai Cares The Council for the United Eric E. Schmidt H. Rodgin Cohen The Olayan Group Development Initiatives Poverty $10,000–$24,999 Anonymous Cheryl Cohen Effron and States and Italy Eric S. Schwartz Sir Ronald Cohen Palantir Technologies Research Ltd. Anonymous (3) Ford Foundation Blair W. Effron Howard Cox Searle Freedom Trust Jonathan E. Colby Pearson plc Joshua Donfeld Advanced Micro Devices, AMD Bill & Melinda Gates Foundation Exxon Mobil Corporation Alan and Lauren Dachs Tokyo Sexwale Comcast NBCUniversal PepsiCo, Inc. eBay Inc. Liaquat and Meena Ahamed The William and Flora Hewlett Google Inc. Daimler Shell Dawat-e-Hadiyah (America), a Phoenix Satellite Television Co. European Council on Foreign Eileen A. Aptman Foundation Gail and Benjamin Jacobs George A. David Siemens Corporation Corporation Sole Ltd. Relations The Loreen Arbus Foundation The Hutchins Family Foundation The Japan Foundation Center for Mick Davis Robert H. Smith The Irene Diamond Fund John G. Popp Edith B. Everett Asian Development Bank JPMorgan Chase & Co. Global Partnership Paul Desmarais, Jr. Sodexo, Inc. Deborah L. Duncan Marian Puig EY Institute Philip Knight Japan International Cooperation Dubai School of Government Specialized Association Services Jay C. Farrar Thomas C. Ramey and Perrin Mitzi and Cyrus Freidheim Elizabeth E. Bailey The John D. & Catherine T. Agency (JICA) Echidna Giving The Starr Foundation Fidelity Investments Ireland Ann M. Fudge Liza Bailey and Michael MacArthur Foundation Nand and Jeet Khemka Alfred and Gail Engelberg Statoil Government of Finland Repsol Foundation Mark Gerson Musgrave Foundation Richard Merkin Alfonso Fanjul Target Corporation Julie Finley Joseph L. Rice III Brian L. and Myra S. Greenspun The Bank of Tokyo-Mitsubishi The Korea Foundation Microsoft Corporation FedEx Corporation Lynn Thoman and the Leon The Lee and Juliet Folger Fund Stephen Robert and the Greenspun Family UFJ, Ltd. The MasterCard Foundation The Rockefeller Foundation Raj Fernando Lowenstein Foundation Stephen Freidheim Sabanci University Foundation Barclays Bank PLC Charles Stewart Mott Foundation David M. Rubenstein Fiat Toyota Bart Friedman and Wendy A. SAP Teresa Heinz Kerry Joanne Barker Cheryl and Haim Saban Government of Norway David and Marianna Fisher George Tsunis Stein The Sasakawa Peace Foundation Fiona Hill Anders Brag SK holdings Schlosstein-Hartley Family Futurewei Technologies, Inc. Turkish Industry and Business FutureWorld Foundation Jonathan Schaffzin IBM Bristol-Myers Squibb Foundation Foundation John L. Thornton Mark T. Gallogly and Elizabeth B. Association (TUSIAD) M. Shafik Gabr Charles Sirois Intesa Sanpaolo Paul Britton Skoll Global Threats Fund United Arab Emirates Strickler Unbound Philanthropy Global Green Growth Institute Samuel M. and Helene K. Soref Frank F. Islam Carter Cafritz Alfred P. Sloan Foundation GE Visa Inc. Jeffrey A. Goldstein Foundation Tom Kaplan Conrad Cafritz State Farm Mutual Automobile $500,000–$999,999 Genentech Jeffrey C. Walker Andrew Gundlach, Anna- Standard Chartered Bank Betsy Karel Embassy of Canada Insurance Company Anonymous (2) Pablo R. González John Hazen White, Jr. Maria and Stephen Kellen David S. and Sylvia Steiner Lockheed Martin Corporation Canada Pension Plan Investment Surdna Foundation Bank of America The William T. Grant Foundation Tracy R. Wolstencroft Foundation Krishen Sud Marubeni America Corporation Board Government of Switzerland Carnegie Corporation of The George Gund Foundation Xcoal Energy & Resources William A. Haseltine, Ph.D. Sullivan & Cromwell LLP Northrop Grumman Corporation Caterpillar Inc. Taipei Economic and Cultural New York The Heinz Endowments Poju Zabludowicz, Tamares Hitachi Foundation Kihak Sung, Youngone Occidental Petroleum Central Compilation and Representative Office in the Annie E. Casey Foundation Hitachi, Ltd. Real Estate Holdings James A. Johnson Corporation Corporation Translation Bureau United States Steve and Roberta Denning The JPB Foundation Alan K. Jones Dato’ Sri Tahir The Alexander S. Onassis Public Ellen Chesler and Matthew J. The Andrew H. and Ann R. Tisch Roger Hertog Ewing Marion Kauffman $50,000–$99,999 Herbert M. Kaplan A. Alfred Taubman Benefit Foundation (USA) Mallow Foundation Kenneth M. Jacobs Foundation Anonymous (6) George A. Kellner Volkswagen Group of America Partnership for a New American Cisco Systems, Inc. U.S. Agency for International The Kresge Foundation Nemir Kirdar All Nippon Airways Co., Ltd. The Kern Family Foundation Alex C. Walker Foundation Economy Karen and Everett Cook Development Peter B. Lewis Living Cities, Inc. Allen & Company LLC Samer Khoury Marcus Wallenberg, Foundation Robert Peck Corning Incorporated Foundation Antoine van Agtmael, Sunrise Liberty Mutual Group Andrónico Luksic Amgen Asset Management (FAM) PwC Arthur B. Culvahouse, Jr. Foundation Tawfic Khoury Embassy of the State of Qatar Markle Foundation Amsterdam International Institute Richard A. Kimball, Jr. Wal-Mart Stores, Inc. Raytheon The Curtis Family Foundation Embassy of the Republic of Korea Qualcomm Incorporated $100,000–$249,999 Mars, Incorporated for Development Korea International Trade Beatrice W. and Anthony Welters Linda S. Daines Arrangements Abroad, Inc. John B. Rhodes UnitedHealth Group, Inc. Anonymous (4) MetLife, Inc. Association (KITA) The Western Union Company David E. R. Dangoor Association for Corporate Growth James D. Robinson III University of Nevada, Las Vegas Robert John Abernethy Eric M. Mindich Lennar Urban Ariel and Adam Zurofsky Deloitte Touche Tohmatsu Martin Neil Baily David Rogers Limited The Walton Family Foundation Paul Achleitner and Deutsche The MITRE Corporation Dan W. Lufkin, Peter Jay Sharp D.B. Zwirn Foundation RR Donnelley & Sons Company Washington University in Bank AG National Bureau of Economic Rahul Bajaj Foundation Anthony and Darian Downs $25,000–$49,999 Sanofi US St. Louis Mohammed Mahfoodh Alardhi Research, Inc. Banco de Sabadell S.A. Lumina Foundation Emerson Leonard D. Schaeffer Alcoa Foundation New York City Partnership Alan and Jane Batkin Philip Mallinckrodt, The Anonymous (3) European Investment Bank $250,000–$499,999 William A. Shutzer Altman/Kazickas Foundation Foundation Battelle Schroder Foundation American Express Company European Union Anonymous Sumitomo Mitsui Banking Barrick Gold Corporation Niger Delta Partnership Initiative Crandall C. Bowles Mid-America Regional Council Hady Amr Robert S. Evans AT&T Corporation Dominic Barton Nomura Foundation Ken Brody Mitsubishi Corporation Aramco Services Company Facebook Australian Agency for (Americas) Teneo Holdings Anne T. and Robert M. Bass Open Society Foundations The Andrea and Charles Rex J. Bates Roger C. Faxon International Development Bronfman Philanthropies The Leo Model Foundation U.S. Department of Energy Bluegrass Economic Richard Perry The Boeing Company Lawrence K. Fish Australian Civil-Military Centre Verizon Communications Advancement Movement Victor Pinchuk Foundation Bruhn-Morris Family Foundation The Ambrose Monell Foundation Geoffrey T. Boisi and the Boisi David B. Ford S.D. Bechtel, Jr. Foundation (BEAM) Ploughshares Fund The Morris and Gwendolyn Jaime J. Montealegre Family Foundation Enzo Viscusi, Eni S.p.A. French Ministry of Foreign Affairs Richard C. Blum and the Ambassador Paul L. Cejas Pritzker Traubert Family Cafritz Foundation Mario M. Morino Heinrich Böll Foundation Daniel H. Yergin and Angela David Friend Honorable Dianne Feinstein Stent Chevron Foundation The Center for Responsible National Intelligence Council CAF – Development Bank of John L. Furth The Brown Foundation, Inc. of Enterprise and Trade Ezra K. Zilkha Chey Tae-won RBC Capital Markets Embassy of the Kingdom of the Latin America General Motors Foundation Houston CenterState Corporation for Mortimer Zuckerman Citi Charles W. Robinson Netherlands The Civic Council of Greater Goldman Sachs The Nathan Cummings Economic Opportunity Kansas City The Clearing House Association The Rodel Foundations New Economy Initiative for Patrick W. and Sheila Proby Foundation China-United States Exchange Southeast Michigan The Coca-Cola Company Jonathan Coslet James E. Rogers Gross Hanzade Do˘gan Boyner, Do˘gan Wilbur and Hilary Ross Foundation Nihon Keizai Shimbun-sya Cummins Inc. Agnes Gund Group Nassef Sawiris Abby Joseph Cohen (NIKKEI) Kenneth W. Dam Susan and John Gutfreund 36 37 Honor Roll of Contributors By the Numbers # July 1, 2012–June 30, 2013 The Harris Family Foundation Leila and Mickey Straus Marie Ridder Daniel Layton June R. Hechinger Sumitomo Corporation of Frederic A. and Susan Rubinstein Bryan Lee hhhh The Herman Foundation, Inc. America Ralph S. Saul Laura Liswood 1 158% Joel Hyatt Paul and Chandler Tagliabue Frederick Stavis Domenico Lombardi Rank in the University Charity 654,991 One-year growth ITOCHU International Inc. Nelson Talbott Symantec Corporation Richard Lounsbery Foundation of Pennsylvania’s Navigator Total Twitter in followers of 225% Robert Wood Johnson Foundation Larry D. Thompson Margaret L. Tomlinson Bruce K. and Virginia N. 2013 “Global ranking 3 years followers of @BrookingsInst One-year growth in Michael L. Tipsord MacLaury Go-To Think running Brookings experts Douglas M. Kaden James Torrey Facebook fans Joel and Ricki Kanter Toshiba America, Inc. John Usdan Kathryn Mancino Tank Index” James C. Kautz Ranvir Trehan Josh S. Weston Jeffrey Marlough David Woods Kemper Memorial Tudor Investment Corporation Randall White Daniel Martinez Foundation Paul Verbinnen and Cecilia Malcolm H. Wiener Eduardo Martinez Website visits by country of origin Lee Klingenstein Greene Donald F. McHenry Marie L. Knowles VOX Global Up to $4,999 Christopher Meyer Robert and Arlene Kogod Washington Office on Latin Anonymous James M. Mitchell KPMG LLP America (WOLA) Jack Anderson Stephen C. Morris Jennifer Scully Lerner Seymour and Kathleen William J. Antholis Sakura Namioka Toby Devan Lewis Weingarten Asian Development Bank Nathan Associates Inc. Gordon Litwin and Anne Luzzatto John C. Whitehead Andrea Austin Stevan Northcutt LMI Government Consulting Stephen M. Wolf Richard Barnes Rochelle Novins Daniel S. Loeb Xerox Corporation William Horton Beebe-Center Bruce Parrott Malcolm R. and Celia Lovell The Boston Foundation Raymond Piccolotti $5,000–$9,999 G Bertil P. Lundqvist Louis W. Cabot Steven Pifer American Society of the French Robert E. Marks Jacqueline Carter Todd Puglisi Legion of Honor G Michael L. Martell, Morrison Peter Clement Helen Raffel Zoë Baird Budinger and William G Cohen LLP Morton and Shirley Cohen Peter B. Reddaway G Budinger Edward and Dale Mathias Roberta Cohen Sean Ricard Steffi and Robert Berne Arjay Miller William T. Coleman, Jr. Mustafa S. Riffat G Robert O. Blake G Over a million Mitsui & Co. (U.S.A.), Inc. Cheryl Costa B. Francis Saul II CA Technologies G 100,000 to 300,000 Mulago Foundation Courtney Dunakin Henry B. Schacht William M. Cameron G 40,000 to 99,999 James J. Murren Elliott Company of Indianapolis, Robert Schulz 92 Kimberly Churches G Northern Trust Inc. Katherine Sierra 20,000 to 39,999 Op-eds published in the Kemal Dervi¸s NTT Corp. Ellen Ewart Edwin Soforenko Foundation G 10,000 to 19,999 10 highest circulation Kenneth M. Duberstein Richard Nye Robert L. Faherty Alexander Sokolowski American newspapers Charles W. Duncan, Jr. Ono, Inc. Nick Farmer Marjorie H. and Helmut Elinor K. Farquhar John E. Osborn Ellen V. Futter Sonnenfeldt Nancy M. Folger Geryl T. Pearl Toby Gati Brendan Taylor Forum for the Future of Higher George L. Perry Elisa B. Glazer Prasad Wagle Most viewed Education The Pew Charitable Trusts Vartan Gregorian Robert M. Weekley content Clifford Gaddy Pioneer Natural Resources Marion Guggenheim Robert Weinberger 236 on brookings.edu in Leslie I. Gold, Ph.D. 41 Hope M. Harrison 12 2013: The inaugural Samuel Pisar D. Kenneth Woodard David B. Golder Regional and Public events Books published Province of Alberta, Canada The Herman Foundation, Inc. Brookings Robert D. and Colleen G. Haas issue-specific by the Brookings Hickrill Foundation Essay William Pugh research 145 Press Noosheen Hashemi Stanley and Louise Resor Steedman Hinckley centers Congressional and Hellman Family Foundation Executive Branch Daniel and Joanna S. Rose Alfred Hurley Cynthia R. Helms briefings Robert J.T. Rosenfeld Vernon E. Jordan, Jr. Institutional budget growth Harold Hestnes William R. Salomon Norma Kacen Nicholas Jakobson Shimizu Corporation Catherine Kelleher Allison Nathan Stanley Shuman Thomas L. Kempner 31 2003 $39,225,000 North Atlantic Treaty Steven J. Simmons Homi Kharas Times Brookings Organization scholars testified Emily and Robert E. Smith Douglas Kiessling Sarah and Peter O’Hagan before congressional Sojitz Foundation Kemal Kiri¸sci Oracle Corporation committees 2013 $95,260,000 Andrew and Patricia Steffan Andrew Klaber Brookings strives to be complete James and Theodore Pedas Robert Kleinberg and accurate in recognizing the Michael A. Steinberg Family Foundation Christopher S. Koza generous support of our donors. 0816 24 32 40 48 56 64 72 80 88 96 We regret any omissions or errors. Budget growth (in millions $) 38 39 STATEMENT OF ACTIVITIES STATEMENT OF FINANCIAL POSITION Years Ended June 30, 2013 and 2012 (in thousands) As of June 30, 2013 and 2012 (in thousands) Preliminary and Unaudited* Preliminary and Unaudited*

TEMPORARILY PERMANENTLY FY 2013 FY 2012 2013 TOTAL 2012 TOTAL UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL ASSETS OPERATING ACTIVITIES Cash and cash equivalents $ 29,465 $ 36,643 Revenue and Support Grants, contributions and accounts receivable, net 100,679 90,788 Investment return designated for operations $ 10,023 $ 2,973 $ 12,996 $ 12,787 Inventory 341 355 Grants, contracts, and contributions 14,682 58,803 $ 6,791 80,276 114,837 Investments 286,997 262,209 Brookings Press 1,716 – – 1,716 1,941 Property and equipment, net 43,094 45,249 Facility and other revenue 2,862 – – 2,862 2,472 Other assets 2,067 1,687 Net assets released from restrictions— 64,793 (64,793) – – – TOTAL ASSETS 462,643 436,931 Satisfaction of program restrictions Total Operating Revenue 94,076 (3,017) 6,791 97,850 132,037 Liabilities and Net A ssets Liabilities Operating Expenses Accounts payable and accrued expenses (10,323) (8,050) Program Services Bonds payable and lines of credit (42,221) (43,540) Economic Studies 14,740 – – 14,740 15,636 Accrued compensated leave (1,688) (1,366) Foreign Policy 19,926 – – 19,926 19,157 Accrued post-retirement benefit obligation (2,148) (2,305) Global Economy and Development 9,587 – – 9,587 9,317 Deferred revenue (2,030) (362) Governance Studies 6,691 – – 6,691 6,665 TOTAL LIABILITIES (58,410) (55,623) Metropolitan Policy Program 12,513 – – 12,513 12,143 Net Assets Other research 535 – – 535 1,850 Unrestricted (193,316) (171,192) Brookings Press 2,775 – – 2,775 2,690 Temporarily restricted (135,104) (141,094) Communications 2,275 – – 2,275 2,485 Permanently restricted (75,813) (69,022) Total Program Services 69,042 – – 69,042 69,943 TOTAL NET ASSETS (404,233) (381,308) Supporting Services TOTAL LIABILITIES AND NET ASSETS $(462,643) $(436,931) Management and General 21,861 – – 21,861 18,642 Fundraising 2,898 – – 2,898 2,593 Operating Revenues Program Services Expenses Total Operating Expenses 93,801 – – 93,801 91,178 Net Operating Activities 275 (3,017) 6,791 4,049 40,859 29% Foreign Policy Change in net assets before non-operating 84% activities 275 (3,017) 6,791 4,049 40,859 Gifts and Grants 1% Other Research NON-OPERATING ACTIVITIES 2% 21% Investment return in excess of amounts Publications Economic Studies designated for operations 18% Realized gain (loss) on sale of investments 10,979 – – 10,979 8,462 11% Metropolitan Policy Program Endowment Unrealized gain (loss) from investments 18,927 – – 18,927 (10,262) 10% Governance Studies Interest and dividends, net 1,809 – – 1,809 305 3% Investment return designated for operations (10,023) (2,973) – (12,996) (12,787) Miscellaneous 4% Publications Total investment return (loss) in excess of 21,692 (2,973) – 18,719 (14,282) amounts designated for operations 14% Global Economy and Total Non-Operating Activities 21,692 (2,973) – 18,719 (14,282) Development Change in net assets before post-retirement 21,967 (5,990) 6,791 22,768 26,577 3% related changes other than net periodic Communications post-retirement benefit cost Notes: Post-retirement related changes other than net 157 – – 157 288 As a nonprofit and scientific organization, Brookings­ is exempt from federal income taxes under section 501(c)(3) of the Internal periodic post-retirement pension cost Revenue Code. The Institution also qualifies as a publicly supported organization under section 170(b)(1)(A)(vi) of the code. CHANGE IN NET ASSETS 22,124 (5,990) 6,791 22,925 26,865 Brookings policy is to make an annual investment spending allocation for the support of operations. This amount is calculated Net assets, Beginning of year 171,192 141,094 69,022 381,308 354,443 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 December 31 of the prior fiscal year. Certain reclassifications of prior year balances have been made to conform to the current year Net assets, End of year $193,316 $135,104 $75,813 $404,233 $381,308 presentation.­ *A copy of the Institution’s audited financial statements is available by request. 40 41 Brookings

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