2017 ANNUAL REPORT

IMPROVING GOVERNANCE IN A TIME OF TRANSITION

rookings research is firmly rooted in observed facts, empirical BB data, and an institutional commitment to developing practical solutions to the most vexing policy challenges facing society, in the and around the world. This way of operating is necessary in an ever-more polarized Washington, where like-minded people are drawn to information sources that reinforce their increasingly entrenched worldviews and even facts are the subject of debate. For more than 100 years, Brookings has built a reputation for quality, independence, and impact on the value proposition that thoughtful, unbiased analyses lead to good policies, which are at the heart of good governance. This is a constant, even in times of transition in administrations and shifting global alliances.

1 2 MESSAGE CO-CHAIRS’ and engagement. Thank you. engagement.and Thank develop solutions other succeed challenges, innovative support soonly your many we and to these can with ahabitable world to ensuring generations. planetfractious for we to reducing work future inequality As to mission for years. hundred another able be to pursue its essential will who Brookings have ensured that to all most our sincereexpress thanks outreach. our Wefor expand scholars, our and launch centers create new and research initiatives, and allowed usto establish new chairs have already funds by $70 goal our These exceeding million. million, 1,400 More than Board. donorsled contributed by Glenn ofBrookings over the Hutchins, chair $670 vice do. they all in to quality, independence, experts our guide impact—that and commitment follow prosperousand mission that reinforce and world. values—a support that goals the The levelsof of at governance society. all actors must civic Many empowered be to create apeaceful all we are if Brookings’ expanding with starts follow plan pages that the and on The progress. offer our some efforts, details tourgency our Honor the We to them all. in read report. Roll end at deeply the are of this grateful oversight, leadership’s our donors, support of management, many strong the our and whose you can names Co-Chair of Board the Co-Chair M. RubensteinDavid problems a The we stabilizing face more complex are today ever—from consequential and than effort year saw conclusion the also asix-and-a-half year last Campaign, Second of the This Century The Brookings 2.0 Brookings s mission s strategic plan that we began implementing we began that plan 2016 strategic in and anew framework brings , from a focus on the efficient functioning afocusimprovementof thegovernment functioning on efficient to , from the

PHOTO: KATHERINE LAMBERT Co-Chair of Board the Co-Chair Thornton John L. B because of our Board’s vision and and vision because of Board’s our pressing of public matters policy. agenuinehas impact on most the that research dent, high-quality needbeen for agreater indepen B We can fulfill this purpose purpose this We fulfill can than ever. neverthan has There more is important rookings - PHOTO: PAUL MORIGI President President Strobe Talbott second into our founding century. own our usfrom have guided that mission, the values, standards and maintaining also are helm—we the here Washington. in interconnected new world. increasingly the so administration is an And on still what is abetted bytechnology. marauders modern medieval states, and rogue from powers,between great threats aregression reactions bad come to old the geopoliticsThese centuries: with of zero-sum previous bellicosity trend. of United aglobal the is, in States itself, part of nationalism rise the and globalization against backlash the all, reinforcedlook work centers by and overseas our New After abroad, and Doha, greatly Beijing, Delhi. in Economic Policy our Metropolitan Studies, and from Studies, Governance Programs. research disciplinary economic prospects of low-income of and communities of color. citizens inter project from The draws and equity to advance the Inclusion Race, Prosperity, and strives Our Initiative Americans. by African nation’s our suffered as usfrom been racism, especially with founding: has that polity and of society our help politic and body remediate them. serious andquestionsongoing sparked raised debate. has that a theland mode of governing in office highest the broughthas that to out sufficientcampaign in to a numbers support successfulunorthodox disruptive, but ments population of neglected have the turned and felt by powers losing be. the ground They that are they where seg country of the areas in partners 2016. in with the parties both working in are scholars Our insurgencies the to understanding of competence. deepenand areas priority our For giving example, we are arena. political the in of truth of history, disregard and news, of fake or mangling ignorance rise antidotes to the us with cacophony the given 2016 blighted the that falsehoods and general and of election. insults primaries scale, of mission on our imperative a national part have made this years two past The polarized. often too houses members sides on both and both of in aisle. of Congress with the members key several of President Trump’s cabinet his for and House White events team briefings. and agencies, of their We foreign on and postings. policy issuesadvice workings departments, the and have hosted In short, while Brookings adjusts to change, both evolutionary and seismic—and as John Allen takes takes John Allen as seismic—and and adjusts evolutionary to change, both Brookings while short, In ideas and to usfor analysis our world challenges, those the too, looking On governments around are urgent these domestic problems, eager to tackle are scholars continue others Brookings many to While fact shameful at and another stubborn directed we launched initiative have time, same also an the At the of part asignificant in grievances legitimate to understand determined are scholars Brookings for of strategy. our We ways to broaden looking part always also are are course-correction Adaptation and scholars’ commitmentOur respect for and to solid armed research, knowledge,facts has empirical all is that acity in discourse civil and of nonpartisanship oasis been an For has decades, Brookings perspectives their to share been experts to our addition, abumperIn there has crop of invitations

A important jobs have reached outimportant have been seeking scholars. to our They way we opportunities. have the challenges met and the both exceptional. We ways, have truly muchdramatic proud to be the of in developments specific andthe disputesand have various in been, been no exception, has some year although offellow This citizens. A Starting with the transition last year, last anumber of transition appointees the to with Starting special chance to be of service to our elected to our chance leaders our of to be and service special a Brookings gives always between administrations transition PRESIDENT'S MESSAGE ­ - 3 ECONOMIC STUDIES

TAKING ON ECONOMIC CHALLENGES

he election of in November 2016 brought new attention to TT Americans who have seen the American Dream as increasingly out of reach for themselves and their families. Where well-educated professionals have seen their economic circumstances rebound, significant swaths of the country continue to see low wages and limited paths to opportunity. In the wake of the surprising Brexit vote, the candidates debated whether increased globalization and existing trade deals were contributing to or impeding economic progress. The president, Congress, and the leadership of both parties have struggled to find consensus—much less make progress—on the best way to improve prospects for struggling Americans. Throughout the campaign and into the new administration, Economic Studies scholars have carefully examined the underlying challenges to broadly shared prosperity, evaluated potential solutions, and proposed alternatives to improve prospects for all. PHOTO: SHARON FARMER SHARON PHOTO: A DRAMATIC SHIFT IN APPROACHES TO REGULATORY POLICYMAKING The Trump Administration has made regulatory relief one of the centerpieces of its domestic policy agenda. Among Donald Trump’s first acts as president was to issue an directing that at least two regulations be repealed for each new one instituted. This dramatic shift in regulatory policymaking deserves careful examination. The new Center on Markets and Regulation, launched in December, is poised to address this need. Under the leadership of Economic Studies Vice President and Governor of the Bank of Mexico Agustín Carstens outlines the challenges facing his Director Ted Gayer, the Center has analyzed administrative actions on the regulatory country’s economy and policies to meet them process, market and government failures, and regulation of financial markets. The

4 PHOTO: PAUL MORIGI PAUL PHOTO: Distinguished Fellow in Residence Ben Bernanke (LEFT) discusses the outlook for the U.S. economy under the Trump Administration with Secretary of the Treasury Steven Mnuchin

Center has published important analyses of the Trump Administration’s progress A Public Health Crisis: staffing federal agencies, the likely impacts of revisions to Dodd-Frank financial Understanding the Troubling regulations, and the broader economic impacts of rules related to land use, gun Rise of “Deaths of Despair” control, and more. At the spring 2017 Brookings Papers on Ultimately, regulatory policy is about much more than the collection of rules Economic Activity conference, Princeton and regulations that dictate government and corporate actions. Regulations guide University Professors Anne Case and Sir market activities including helping or hindering entrepreneurship and investments provided much-needed in technological innovation. They also impact people’s lives and well-being from their illumination of a growing public health housing options to their work arrangements to their ability to secure a loan. Careful crisis, presenting new data on the study of the complex regulatory process and the policies it generates can offer ideas dramatic and troubling rise in midlife for improved policymaking and better outcomes for all. deaths from drugs, alcohol, and suicide among white Americans with no more THE ACA AND THE FUTURE OF HEALTH CARE IN than a high school degree. In “Mortality THE UNITED STATES and Morbidity in the 21st century,” The GOP’s prolonged effort to repeal and replace Obamacare throughout 2017 was Case and Deaton, a Nobel Laureate, explore patterns and contributing fast-moving, but the Center for Health Policy responded quickly to new updates, factors to the troubling trend, found providing high-quality, nonpartisan analysis of how several pieces of introduced leg- among men and women alike in all areas islation might affect health insurance markets and ACA enrollees. As one example, of the country. This dramatic rise in Matt Fielder, a fellow in the USC-Brookings Schaeffer Initiative for Innovation in mortality rates is driven by an increase Health Policy, published a critical and widely-cited analysis of how the CBO would in “deaths of despair” from drugs, score introduced legislation—and the likely impact on the uninsured population. This alcohol, and suicide, despite progress piece and others helped policymakers and the public understand not only the impact against deaths from cancer and heart of proposed health policy solutions, but also potential paths forward to improve health disease. More than twenty thousand outcomes and lower costs. people read the paper in the first few Experts in Economic Studies are looking beyond strategies for expanding health days after publication and it was cited insurance coverage to find ways to make care more affordable through improving in local, national, and international Medicare, reforming prescription drug payment and innovation, exploring innovative media outlets more than 1,000 times. programs at the state and local level, and strengthening The authors suggest that increases in delivery. Amid the uncertainty of repeal and replace- “deaths of despair” are accompanied ment efforts, Brookings scholars are working to by deteriorating economic and social assess state- and local-level performance and well-being, declining marriage rates develop innovations that can fortify insurance and labor force participation, and rising exchanges and preserve and expand Medicaid reports of physical pain and poor mental to cover more Americans. and physical health.

Vice President and Director of Economic Studies Ted Gayer, the Joseph A. Pechman Senior Fellow PHOTO: SHARON FARMER

5 “Scholars at Brookings…have been part of a driving force behind an effort to reform the Congressional budget process. I want to thank you for lending your time, your expertise, and your passion to this issue.”

— REP. TOM PRICE (R-GA), THEN-CHAIRMAN OF THE HOUSE BUDGET COMMITTEE

Brookings Trustee Jason Cummins PHOTO: PAUL MORIGI PAUL PHOTO:

New Leadership of the Economic Studies Council

The Economic Studies Council provides financial support for Economic Studies and engages business and community leaders in its work. Through an annual program of expert briefings, round- tables, and conference calls, members of the Council participate in high-level discussions of critical economic topics and share their private sector perspec- tives on current issues. ALI DEFAZIO PHOTO: Boston Globe columnist Indira Lakshmanan leads a conversation with Senior Fellow Isabel Jason Cummins succeeded Wilbur Sawhill, Senior Fellow and Co-Director of the Center on Children and Families Richard Reeves, Ross as chair of the Economic Studies and Nonresident Senior Fellow Dayna Bowen Matthew (FROM LEFT) on economic mobility and Council in 2017, when Ross was con- racial inequities as part of a Brookings podcast series leading up to the 2016 election firmed as Secretary of Commerce in the Trump Administration. In this role, Cummins, who is head of research and Senior Fellow and Director of chief U.S. economist at Brevan Howard the Hutchins Center on Fiscal Asset Management, has worked to both and Monetary Policy David Wessel deepen the engagement of existing moderates a discussion with Council members and identify prospec- Representatives Rosa DeLauro tive new members. In addition, Brevan (D-CT) and Tom Reed II (R-NY) (FROM LEFT) on the political Howard has contributed generously realities and challenges of to Economic Studies, supporting the public investment program’s broad agenda of analyzing emerging economic policy issues facing the United States and the world. Cummins was elected as a Trustee of Brookings in June 2017. PHOTO: PAUL MORIGI PAUL PHOTO:

6 PHOTO: RALPH ALSWANG PHOTO: LYDIA THOMPSON/URBAN INSTITUTE Times Times who dedicated Brooks, one David of his Washington, with in DC & ISynagogue work the in his York New Guardian, Post including publications, major by Reeves appearances oning NPR’s thus promote and broaderhoarding opportunity. action effective to reduce take prescriptions opportunity can for society ways that aless is competitiveargues, economy well a less as as open society. He concludes with licensing, college application procedures, access and result, Reeves to internships. The occupational schooling, laws and such zoning mechanisms as hoarding” “opportunity through doing this They’re children. to their status on successfully passing their are about Do It to What Problem, and a is That Why Else in Dust, the Everyone Leaving is Class Middle Upper American “upper class.” middle should another group blame: the share America’s privileged thinks Families, and mobility,social Senior Fellow Center of the Reeves, co-director on Richard Children of rates dismal and end inequality of receiving mostthe blame of for the growing top issue. the 1% salient political Though become increasingly has an have been on Dream wider, grow fate poor the the gaps American of and the between rich the As DISRUPTING THECONVERSATION ONSOCIAL MOBILITY Dream Hoarders Dream Hoarders new published book Press, his In by Brookings the columns subject. to the New YorkNew Times has enjoyedhas atremendous includ reception media, the in , and , and The The and took part in apublic in event 6th took part and historic at the , Reeves takes a critical look at how top acritical the 20% , Reeves takes Morning Edition Morning on Children andFamilies published by theCenter and Competition Index, annual Education Choice the launchof thefifth the keynote address at Betsy DeVos delivers Secretary of Education . He also published. He on also based op-ed an , Washington Post Washington and reviews or citations in reviews and Dream Hoarders: How the the How Dream Hoarders: , The Nation The Visit brookings.edu/program/economic-studies , The The - (FROM LEFT) confirmed as Secretary of Commerce and , whowould later be campaign advisors Peter Navarro tax plansthatfeatured Trump debate onthepresidential candidates’ Monetary Policy David Wessel leads a of theHutchins Center onFiscal and election, Senior Fellow andDirector Less thanone month before the Explore beyond thehighlights. and follow at alllevels of government often goto and local pride. For thisreason, leaders important source of civicengagement Professional teams sports can bean Stadium Financing? Who Benefits from Federal onESPN: agree isapooruse of taxpayer money. introduced to reverse course onwhatthey on ESPN whilepromoting legislationthey Lankford (R-OK),whocited theresearch Senators Cory Booker (D-NJ)andJames The paper caught theattention of U.S. federal taxpayer dollars since 2000. stadiumssports to thetune of $3.2 billion significantly renovated professional has subsidized newly constructed or determine thatthefederal government Austin J. Drukker, andAlexander K.Gold Professional Stadiums,” Sports Ted Gayer, Municipal Bonds andtheFinancingof In aninfluential paper titled“Tax-exempt to noeconomic benefit to taxpayers. struction of stadiums thatprovide little Gayer, unnecessarily subsidizes thecon Studies Vice President andDirector Ted a practice that, according to Economic include theissuing of tax-exempt bonds, that are relocating. These efforts often don’t leave theircity, or to attract teams extraordinary lengthsto ensure teams @ BrookingsEcon

ECONOMIC 7 - STUDIES

INFORMING POLICY DEBATE IN A TIME OF UNCERTAINTY

espite predictions of the demise of fact-based policymaking, Washington has DD remained open to ideas, including within the new administration. Brookings scholars continue to engage, inform, and, at times, push back on policymaking— just as they did during the Obama Administration. Foreign Policy (FP) scholars played important roles in informing the last phases of the Obama team’s policy initiatives, including on Iran and Cuba diplomacy, the counter-ISIS campaign, the Syrian refugee crisis, and U.N. peacekeeping. At the same time, several scholars were among the leading voices challenging Obama’s overall Syria strategy, warning of its consequences for America’s position in the region, and arguing for a more engaged posture. During the early months of the Trump Administration, Brookings scholars have renewed the emphasis on independence, non-partisanship, and the quality and depth of our fact-based analysis. One notable recent example is FP’s “Order from Chaos” project, a multi-year initiative that engaged scholars from across the program PHOTO: RALPH ALSWANG RALPH PHOTO: and assembled a prominent task force of former Republican and Democratic foreign policy officials. The resulting bipartisan report,Building “Situations of Strength,” outlines U.S. policy for a new era of geopolitical competition, providing analysis and policy recommendations for defending and reforming the international order for the Senior Fellow Mireya Solís, co- director of the Center for East 21st century. Launched in February 2017 in a period marked by disruption as the Policy Studies and Philip Knight new administration was still taking shape, the report burnished the Foreign Policy Chair in Japan Studies, defends free program’s reputation for analysis of the new geopolitical realities and its standing trade deals during the Brookings as a team that can forge bipartisan consensus—an increasingly rare resource in a Debate series fractious time.

8 PHOTO: PAUL MORIGI PAUL PHOTO: Vice President and Director of Foreign Policy Bruce Jones leads a conversation with National Security Advisor H.R. McMaster during the spring joint meeting of the Brookings Board of Trustees and the International Advisory Council

“This institution and the conversations in Washington are stronger because of your long leadership and service.”

— SENATOR CHRIS COONS (D-DE)

HOW TO COUNTER THE KOREA THREAT New Thinking on Strategic In recent months, with repeated test firings of intercontinental ballistic missiles Competition capable of reaching the United States, the need to counter Kim Jong-Un’s aggres- Thomas Wright, director of the Center sive nuclear weapons development has gained new urgency. The incendiary rhetoric for the United States and Europe, broke exchanged by the leaders of both sides has further escalated tensions and increased new ground in the discourse about great the risk of miscalculations. Brookings has an extensive roster of experts on North power competition with All Measures Korea and East Asia who know the region and have decades of experience devel- Short of War: The Contest for the 21st oping policy ideas for responding to the dangers that Pyongyang presents. Through Century and the Future of American publications and briefings, these scholars have offered sensible advice for a compre- Power. This examination of strategic hensive strategy to ratchet down the temperature of this crisis. For example, Senior rivalry shows why the post-Cold War Fellow Jonathan Pollack’s report on international order, East Asia, and the Korean era of convergence came to an end Peninsula has been voraciously read in Seoul and across the region. His earlier work and how major powers are now using on the incoming president’s foreign policy occasioned a flurry of debate, but also a global interdependence to gain strategic meaningful reconsideration of policy. advantage over their competitors. Wright contends that the great powers seek to avoid costly, all-out wars with each other, PROMOTING DIPLOMACY AND DIALOGUE IN U.S.-CHINA RELATIONS but they compete with myriad other FP scholars have been at the forefront of the debate on the imbalance in the U.S.- means, including cyber and economic China economic relationship and instrumental in underscoring how a trade war means, proxy war, and coercive diplo- would hurt the U.S. economy and make other economic targets harder to meet. Senior macy. He argues that the United States Fellow David Dollar’s piece, “Playing Responsible Hardball on China’s Trade and must employ a calculated and rational Investment,” set a benchmark for understanding key concepts, articulated terminology approach to counter rival states such as that was adopted by key stakeholders, and has been widely quoted in publications and China, Russia, and Iran. at events. Before the Mar-a-Lago summit between Presidents Trump and Xi in April, Upon its publication in May, All Measures Senior Fellow Richard Bush, director of the Center for East Asia Policy Studies, sent Short of War received favorable reviews his “One China Policy Primer” to officials in the administration, which was widely both here and abroad. Foreign Policy and circulated. Likewise, commentary from Senior Fellow the included it among Cheng Li, director of the John L. Thornton China its summer reading selections, and FT’s Center, on “The Trump-Xi Summit: Why Personal Gideon Rachman described it as “an Relationships Matter,” was read at the highest immensely useful and lucid analysis of levels of the government in both the United States the current global balance of power.” and China prior to the summit. Additionally, Publisher’s Weekly hailed it as “a bracing antidote to simplistic thinking about complex policies.” Dr. Condoleezza Rice, former U.S. secretary of state and the Thomas and Barbara Stephenson Senior Fellow on Public Policy at the Hoover Institution at Stanford University, discusses the story of democracy both past and present

9 PHOTO: PAUL MORIGI PAUL PHOTO: Fellow Natan Sachs, director of Co-Chair of the the Center for Middle East Policy, Foreign Policy moderates a discussion at the Leadership Council 2016 Saban Forum Jonathan Colby (RIGHT) and his wife Susan PHOTO: PAUL MORIGI PAUL PHOTO: with Vice President and Director of Foreign Policy Bruce Jones PHOTO: RALPH ALSWANG RALPH PHOTO:

New Resources for Research To help support a strong working relationship and maintain an ongoing dia- and Impact logue between China and the United States, the John L. Thornton China Center at Brookings convened the second U.S.-China Leaders Forum at Sunnylands in Rancho With a generous five-year gift, Mirage, California. This gathering brought together high-level participants to foster Brookings Trustee David Rubenstein greater understanding and trust and to develop and promote ideas for increased col- continued his support for the FP laboration. Following the Trump-Xi summit the previous month, the Forum focused Director’s Strategic Initiatives Fund. This funding is crucial in fostering on key strategic, economic, security, and social issues that the two presidents iden- collaboration across the program, pro- tified as areas of mutual interest. Forum participants also examined the direction of viding strategic hiring opportunities, China-U.S. relations in light of the new administration in Washington and the scale and enabling cutting-edge research on of the anticipated leadership transitions during China’s upcoming Party Congress. emerging issues. Expanded multi-year funding from the Robert Bosch Stiftung POLICY IMPACT AMID TRANSITION has strengthened the existing partner- The process of improving policymaking is often informed by analytical writings, but ship between the Bosch Stiftung and it is also advanced through engagement, including personal contact, strategic com- Brookings and supports new efforts to munication, and high-level convening. Brookings scholars have regular and direct reinvigorate transatlantic cooperation interactions with policymakers and staff members across regional and and coordination. The Brookings- functional areas of responsibility. Several FP scholars have briefed the relevant senior Robert Bosch Foundation Transatlantic directors on Middle East, Asia, and Latin America policy. Foreign Policy’s security Initiative, launched in April 2017, adds significant new capacity for research, team—including Senior Fellows Michael O’Hanlon, Steven Pifer, Robert Einhorn, analysis, and high-profile discussions and Vanda Felbab-Brown—have offered advice and ideas to officials and professional on transatlantic issues. Foreign Policy staff at the Department of Defense, the Joint Chiefs, and the combatant commands. also received a grant from the Charles Senior Fellow Bruce Riedel has played an important role in briefing and advising Koch Institute to host a debate series the intelligence community at the highest levels of leadership within the Trump in cities across the country. These Administration. The Middle East and security teams have sustained the role they discussions aim to exhibit civil dis- had during the Obama Administration of providing recommendations to Central course focused on America’s role in the Command and the counter-ISIL coalition. Ongoing dialogue with the government world, while expanding audiences and underscores that our scholars’ work on global hotspots such as Syria and Iraq—includ- increasing exposure to critical views ing Michael O’Hanlon’s ongoing work on these countries—actively informs critical that challenge preconceptions. debates within the defense and military community.

Tamara Cofman Wittes, senior fellow in the Center for Middle East Policy, and former Secretary of State (FROM RIGHT) FARMER SHARON PHOTO: answer questions during a discussion of Wittes’ report, “Real Security: The Interdependence of Governance and Stability in the Arab World”

10 experience will be significant. significant. be will experience ongoing Putin-Trump questions the and around relationship, deep expertise Hill’s one put the House—and elections—including that White Trump Donald the in of With interference Russian allegations Western in Affairs. Russian and for European deputy president to the as assistant Council staff senior and director National Security joined Fiona of April, public In when call answer scholars the our service. U.S.-Iran the from nuclear deal. to withdrawing detriments the so far—on Congress—successfully and administration the been among those advising of ForeignDirector have Senior Maloney Policy and Fellow Einhorn Suzanne Robert educate public. and scholars including Senior media Fellow the Brookings Deputy and to intelligencethe writing community,and informing Congress, theme, briefing this messages administration’s on the questioning in active have been very Byman Dan objectives. scholars such others and Senior Fellows Hamid as McCants and Will to U.S. counterterrorism damaging and ill-informed which both most see as scholars cidation for contesting new approach the administration’s to Muslim immigration, engagement media and source of elu have important been an writings extensive his World the Reshaping Islam is over Struggle the How Senior Fellow sound book alternatives. Hamid’s Shadi viding recommendations andtheproposed legislative solutions. and Senate Bill 1018revealed key areas of overlap between Brookings’s Venezuela. After thepublication’s release, adetailed analysis of thereport antidemocratic policies andlower thecosts of areturn to democracy in effortsand support to raise theMaduro administration’s costs of pursuing options detailing ways inwhichtheUnited States could exercise leadership ing political andhumanitarian situation inVenezuela andprovided policy Congress. The scholars highlighted thecritical features of thedeteriorat for short,focused policy recommendations to theadministration and a policy brief titled Harold Trinkunas, Senior Fellow Ted Piccone, andBruce Jones) authored Bahar, Nonresident Senior Fellows Charles T. Call, Richard Feinberg, and In April,theBrookings Venezuela Working Group (Rubenstein Fellow Dany well asperspectives onregional actors. mendations for addressing the ongoingthreats posed by Korea, North as produced inamatter of days, provides arange of assessments andrecom transcript, whichwas edited by Fellow Tarun Chhabra andBruce Jones and Korea, China,Japan, andnuclear andmissile proliferation. The resulting collectively have decades of diplomaticandmilitary experience focused on and Evans Revere, andDistinguished Fellow inResidence JohnAllen,who Fellows Richard Bush, Robert Einhorn,Steven Pifer, JonathanPollack, by Vice President andDirector of Foreign Policy Bruce Jones, withSenior The Brookings Interview onU.S. policy options for Korea North was led cross-section of Foreign Policy scholars for aworld-class policy dialogue. impact. The “Brookings Interview” isoneinnovative tool thatconvenes a developing new formats to convey its analysis thatenableimmediate fact-based analysis designed to inform thedebate. Recently, FPhasbeen The basis for allof Foreign Policy’s work istheproduction of high-quality, Impact through Innovative Communications Another significant aspect of impactBrookings’sand mission ongoing occurs significant Another of impact form problematic countering is important pro policy and equally An Venezuela: APath outof Crisis, (St. Press, 2016) Martin’s and whichwas avehicle Islamic Exceptionalism: Visit - - brookings.edu/program/foreign-policy - - Explore beyond thehighlights.

PHOTO: RALPH ALSWANG PHOTO: SHARON FARMER national security strategy a bipartisan report offering ideas for anew launching “Building ‘Situations of Strength,’” makes openingremarks duringanevent the Project onInternational Order andStrategy, United States andEurope andasenior fellow in Thomas Wright, director of theCenter onthe trans-Atlantic relationship U.S.-Russia relations, theNATO alliance, andthe (FROM LEFT) and Director of Foreign Policy Bruce Jones President Strobe Talbott andVice President U.S. Senator Chris Coons (D-DE)withBrookings and follow , priorto adiscussion onthefuture of @BrookingsFP

FOREIGN 11 POLICY GLOBAL ECONOMY AND DEVELOPMENT

MANAGING GLOBALIZATION IN TODAY’S INTERCONNECTED WORLD

nder the leadership of Vice President and Director Kemal Dervis¸, the Edward UU M. Bernstein Scholar, and Senior Fellow and Co-Director Homi Kharas, experts in the Global Economy and Development program (Global) work to strengthen the drivers of sustainable growth and ensure that the benefits of growth are inclusive and broadly shared. Over the past year, Global explored the catalysts of globalization and recent signs that integration may be slowing and, in the case of 2016’s Brexit vote, even reversing. In a formative new book, Leo Pasvolsky Senior Fellow Carol Graham examined how the recent backlash against globalization is not just about economic inclusion, but also how people feel about their overall well-being (see box opposite page). Significant political uncertainties have elevated concern over whether anti-glo- balization positions will continue to gain momentum. In his monthly Project Syndicate column, Kemal Dervis¸ cautioned against the dangers of short-term thinking for eco- nomic policymaking, which could result in increased tension around issues such as monetary policy, development, and trade. Senior Fellow Eswar Prasad, the New PHOTO: BROOKINGS PHOTO: Century Chair in and Economics, continued to examine global economic trends through Tracking Indexes for the Global Economic Recovery (TIGER), a collaboration with the Financial Times, finding that global growth is Senior Fellow and Co-Director of Global Economy and Development broad-based and stable, but that undercurrents of political and policy uncertainty Homi Kharas (RIGHT) with William J. in key countries have the potential to erode progress. Nonresident Senior Fellow Clinton, 42nd president of the United and Director of the Brookings Global-CERES Economic and Social Policy in Latin States, at the 14th annual Brookings America (ESPLA) initiative Ernesto Talvi offered insights on Brazil’s political transi- Blum Roundtable on Global Poverty tions, and Rubenstein Fellow Dany Bahar wrote extensively on Venezuela’s political, economic, and humanitarian crisis and needed reforms.

12 PHOTO: PAUL MORIGI PAUL PHOTO:

Vice President and Director of Global Economy and Development Kemal Dervis¸, the Edward M. Bernstein Scholar

The uncertain state of the global economy has also opened new debates on the Happiness for All? future of growth and economic progress. Senior Fellow Joshua Meltzer analyzed pros- Leo Pasvolsky Senior Fellow Carol pects for global trade and the implications of rising protectionist policies for countries Graham is an expert on well-being and businesses. While stock markets rallied at various points and new advances were metrics, poverty, and inequality. Using made in areas like computing, Global experts examined the slowdown in productivity surveys and other empirical data, she growth in most major developed economies, rising inequality, and the impact of the explores the linkages between the end of the commodities price boom on countries around the world. Senior Fellow distribution of income, attitudes about Brahima Coulibaly, who joined the Africa Growth Initiative as director in spring inequality and future mobility, and 2017, and Amadou Sy, former director and now a nonresident senior fellow, each well-being in the United States. She also highlighted how several African economies that were hit particularly hard by the drop provides some comparisons with other in commodity prices need to diversify their economies to make them more resilient countries and regions. Her 2017 book, to economic shocks. Global also continued to inform the Group of 20 (G20) and its Happiness for All? Unequal Hopes and efforts to provide collective action to steer the global economy. Global partnered with Lives in Pursuit of the American Dream, collaborating institutions in Germany and a broader G20 think tank network (Think examines the widening optimism gap 20) in the lead-up to the G20 Summit in Hamburg, offering new research and policy between rich and poor in the United proposals on issues such as sustainable infrastructure and food security that were States, as well as between low-income transmitted to Germany’s G20 sherpa. whites, blacks, and Hispanics. Graham finds that stress, insecurity, and lack INCLUSIVE GROWTH AND DEVELOPMENT: AGENDA 2030 of hope are particularly acute among poor whites, and are related to the Global is focused on the implementation of Agenda 2030, a blueprint for all coun- rising deaths of despair among the same tries, including developing countries, to achieve the 17 interconnected Sustainable cohort. These trends point to an even Development Goals (SDGs). Global experts are engaged with the institutions and more divided society, as people who lack processes, including those at the United Nations (UN), that are instrumental in hope are less likely to invest in their advancing new policies and debates. futures. The book gives clear evidence Education is a critical building block for development and economic progress, that inequalities in well-being and and, while access to schooling has improved, learning has not kept pace and enormous opportunity relate to the alienation and disparities exist within and across countries. The Center for Universal Education, anti-government sentiments prevailing led by Senior Fellow and Director Rebecca Winthrop, is working in much of the American body politic. to rapidly accelerate progress in education—not only to help mar- ginalized communities catch up to others, but also to foster more effective, holistic, and equitable education for every child in the world. In spring 2017, the Center convened a meeting of top thought leaders in the fields of learning, innovation, and technology, resulting in a compendium of 17 Lord Nicholas Stern, chair of the Grantham Institute and essays entitled “Meaningful Education professor at the London School in Times of Uncertainty.” of Economics, discusses carbon pricing and implementation of the Paris Agreement

13 PHOTO: SHARON FARMER SHARON PHOTO: Former Trustee James Wolfensohn (SECOND FROM RIGHT), his wife Elaine, and their family join President Strobe Talbott (RIGHT) at the dedication of the James Wolfensohn Room, named in honor of his generosity in establishing the Wolfensohn Center for Development at Brookings (2006–2011) PHOTO: RALPH ALSWANG RALPH PHOTO:

“We’re pleased and grateful that [the Brookings Blum] Roundtable proceedings over the years have helped initiate or further energize collaborations on several advances in global development.”

— RICHARD BLUM, CHAIRMAN OF BLUM CAPITAL AND BROOKINGS TRUSTEE

Amplifying the Impact of Leaders in Girls’ Education

With the generous support of Echidna Giving, Brookings established the

Echidna Global Scholars Program in FARMER SHARON PHOTO: 2012 to support the efforts of emerg- ing girls’ education leaders as they contribute to sound research and evidence-based policy development focused on developing countries. Housed in the Center for Universal Education (CUE), which is led by Senior Fellow Rebecca Winthrop, selected scholars spend a five-month residency at Brookings, where they Former President of Malawi Joyce Banda (RIGHT) outlines how her country approached conduct research on global education, girls’ education during her time in office at an Echidna Global Scholars event led by with a focus on improving outcomes Rebecca Winthrop and opportunities for girls. The 2016 and 2017 cohort of Echidna Scholars Global experts are also examining how to mobilize sufficient and effective brought visiting fellows to Washington resources to support Agenda 2030. At the invitation of the 70th President of the from India, Jamaica, Kenya, Mexico, UN General Assembly, H.E. Mogens Lykketoft, Homi Kharas and Senior Fellow Nepal, Uganda, and Zimbabwe. They John McArthur wrote “Links in the Chain of Sustainable Finance: Accelerating explored such topics as reintegrating Private Investments for the SDGs, including Climate Action.” The policy brief, which school-aged mothers, preventing early identifies strategies designed to shift the global flow of capital toward sustainable marriage, transitions from school to investments that generate economic growth, social inclusion, and environmental pro- the workforce, mentorship and life tection, was launched at an event chaired by Lykketoft that featured introductory skills development, the effects of remarks from his successor, Peter Thomson. Former Fellow Laurence Chandy also on education, and the released a paper on the performance of bilateral donors, multilateral development impact of women teachers on girls’ education outcomes. The program fits banks, and other institutions in providing development assistance in fragile and con- within CUE’s broader efforts to cata- flict-affected countries, where a lack of institutional or governmental legitimacy can lyze and sustain collaborative action to create unique administrative challenges. achieve quality education for all, and As an essential foundation for achieving inclusive growth, sustainable infra- helps to build the leadership pipeline structure underpins all economic activity. Global is partnering with the New Climate for girls’ education around the world. Economy and undertaking joint work with Lord Nicholas Stern on climate, sus- tainable infrastructure, and next steps for implementing the Paris Agreement, with new research and a high-level report released in late 2016 entitled “Delivering on Sustainable Infrastructure for Better Development and Better Climate.” In the report, Senior Fellow Amar Bhattacharya and co-authors identified the factors that are driving

14 PHOTO: RALPH ALSWANG PHOTO: RALPH ALSWANG of bringing stability and economic growth to fragile states. to fragile economic and growth stability of bringing difficulty the along with proposedthe 2018 restructuring, budget organizational and Roundtable entitled “U.S. Foreign under Challenge,” Assistance which focused on 2017, summer In administration. Global convened Blum 14th the Brookings annual 2016 the to inform to Brookings’s contributing reform, aid efforts election new the and Africa. in particularly constraints, financing infrastructure such to alleviate pension mechanisms as funds funding alternative to leverage opportunities well as construction contribute as to alow-carbon future, shouldthat powerandnew to other ensure financed be new roads, plants, buildings, included world. has the research work Additional on how infrastructure sustainable around institutions practitioners, multilateral sector, and private the banks, central development approaches and ministries, strategies the of finance ments to inform been coupled has of high-level a series research engage investments. with those This for making time now opportune that an is arguing investing, infrastructure sustainable Roundtable onGlobal Poverty at the14thannualBrookings Blum Brookings's Africa Growth Initiative, the Distinguished Advisory Group of The Vaccine Alliance andmemberof Ngozi Okonjo-Iweala, chairof Gavi: Senior Fellow George Ingram provided new research and insight on U.S. insight and new provided research Senior Fellow foreign Ingram George shared prosperity 2030 andboosting extreme poverty by his visionfor ending Jim Yong Kimsets out World Bank President recovery inhiscountry reconciliation and a conversation on to Brookings for African Republic, president of theCentral Archange Touadéra, Excellency Faustin- (LEFT) Initiative Amadou Sy the Africa Growth Then-Director of welcomes His Explore beyond thehighlights. Visit program/global-economy-and-development - and follow PHOTO: ALEX IRVIN Learning Metrics Task Force. The Task to co-convene thefour-year, high-level with theUNESCO Institute of Statistics the Center for Universal Education joined ing children's learning outcomes globally, With theoverarching purpose of improv Learning Metrics Task Force the process of carrying itout. launching thecurriculum reform andisin coalition of actors hasbeenatthehelmof first timein34 years. Today, this same of Education revised its curriculum for the Following the meeting, the Kenyan Ministry need to succeed inthe21st century. children thelearning opportunities they actions thatwould provide thecountry's worked together withCUE to identify tions, andMinistry of Education officials Kenyan teachers, civilsociety organiza At anEast Africa Task Force meeting, to education. the Sustainable Development Goal related Task Force, includingdirectly informing have beenmultipleoutcomes from the across more than100countries. There , andtheprivate sector— from government, civilsociety, teachers, together thousands of stakeholders— these skills. The Task Force brought and concrete steps for how to measure children to succeed inthe21st century outlining thebreadth of skillsneededfor Force produced arobust bodyof research @ BrookingsGlobal brookings.edu/

GLOBAL ECONOMY AND - 15 - DEVELOPMENT GOVERNANCE STUDIES

EFFECTIVE LEADERSHIP IN A TIME OF UPHEAVAL

he 2016 election brought a new, combative style of governing to the White TT House that has tested the system of checks and balances put in place by the framers. Controversy and suspicion have surrounded the president since he took the oath of office. Since then, despite controlling the White House and both cham- bers of Congress, divisions within the GOP have stymied any significant legislative accomplishments. In addition an energized, engaged resistance movement has taken hold to oppose what many see as an overreaching administration with a fundamental disregard for the norms that have long guided political behavior. Experts in the Governance Studies program have been analyzing developments in Washington to help explain the implications of this new approach to politics and the policies that the administration is working to implement. Through research, analysis, and policy recommendations, these scholars are providing important insights into how government works and how it could work better.

PHOTO: PAUL MORIGI PAUL PHOTO: ETHICS, EMOLUMENTS, AND THE PRESIDENT President Trump’s unwillingness to divest his interests in the Trump Organization brought new attention to the Emoluments Clause of the U.S. Constitution. This Senior Fellow John Hudak once-obscure provision was included in the nation’s founding document to guard against the practice, common in the eighteenth century, of wealthy foreign nations using gifts, titles, and other things of value to attempt to influence leaders of other countries. The president’s far-flung business empire presents many opportunities for financial benefits to flow to the Trump Organization and, thus, to the president himself. Whether or not this arrangement violates the Constitution is the subject of an intense debate that will likely only be resolved in the courts.

16 PHOTO: SHARON FARMER SHARON PHOTO: Senior Fellow and Editor-in-Chief of Lawfare Benjamin Wittes (RIGHT) leads a discussion with Representative Adam Schiff (D-California) on the role of Congress in protecting liberal democracy

“Along with the government itself, the American electorate, and our free press, Brookings and its peers have come to constitute a crucial fourth leg of the American policy process.”

— REPRESENTATIVE ADAM SCHIFF (D-CA)

To help inform the answer to this question, Senior Fellow Norman Eisen (who Resources for Understanding previously served as the chief White House ethics lawyer under President Barack American Democracy Obama), along with University of Minnesota Professor Richard Painter (who held The William and Flora Hewlett Foundation the same position in the George W. Bush White House), and Harvard Law School is a longtime supporter of Brookings, Professor Laurence Tribe undertook a thorough examination of the Emoluments with grants to programs and projects Clause and its implications. Their paper, “The Emoluments Clause: Its Text, Meaning, across the Institution going back four and Application to Donald J. Trump,” was published five weeks prior to Inauguration decades. Hewlett Foundation support has Day, at a time when the scope of the Trump Organization’s businesses were, as they enabled Brookings experts to take on remain, shrouded in secrecy and complex ownership structures. This has become specific critical issues as well as broader, among the most-downloaded papers on the Brookings website, a testament to the thematic work. This year, in Governance intense interest that this unique president’s actions have stirred. Studies, the Foundation took a particular After a careful study of the Clause’s origins and its interpretation at the time interest in research on various aspects of of adoption, the authors examine how it applies to the contemporary situation, con- the workings of the federal government cluding that the then-president elect “appears to be on a direct collision course with and its relationship to U.S. democracy. the Emoluments Clause.” The watchdog group Citizens for Responsibility and Ethics Funding includes generous support for in Washington, which Eisen and Painter co-chair, has filed a case challenging the Senior Fellow Elaine Kamarck’s work on president’s ongoing acceptance of payments from foreign sources. Congressional primaries and what they can tell us about the roots of polarization PRIMARY ELECTIONS IN A POLARIZED ERA and the governmental dysfunction that results, and Fellow Molly Reynolds and Stories of palace intrigue in the White House have been widely reported in the media Senior Fellow Sarah Binder’s efforts to in the months since Donald Trump took office. The dramatic storylines are amplified improve governance, decisionmaking, and by the frequent inclusion of quotes from prominent Republicans in Congress pleading democracy. The Hewlett Foundation also for the president to focus on the job at hand. The pull of partisan politics appears provides critical support for Lawfare, to be as strong as ever. Knowing why this trend has continued and intensified in which brings clear, analytic think- recent years is an important part of understanding modern American politics ing to the intersection of law and more broadly. national security and the many As part of the Primaries Project, Senior Fellow Elaine Kamarck, director varied bureaucratic agencies of the Center for Effective Public Management, has delved into the role of managing that complex set the party primaries, especially at the Congressional level, as a significant of issues. factor in the pronounced shift toward steep divisions between the parties. This year, she, along with Alexander Podkul and Nicholas Zeppos, published two illuminating papers on the candidates Vice President and Director of and the voters in the 2016 primary elections and Governance Studies Darrell West, the Douglas Dillon Chair on how new members of Congress govern once they come to Washington.

PHOTO: PAUL MORIGI PAUL PHOTO: 17 Fellow Nicole Turner-Lee (LEFT) and the Reverend Jesse L. Jackson, Sr. discuss the state of voting rights in America PHOTO: PAUL MORIGI PAUL PHOTO:

Megachange: Economic The researchers found that primary voters are older and more educated than the Disruption, Political general population and the general electorate and that they re-nominate incumbents in Upheaval, and Social Strife enormous numbers, despite claiming that they do not value experience. Candidates, in the 21st Century meanwhile, are largely male, well-educated, and married, and slightly more likely to have served in the military than the average citizen. After scouring all candidates’ web- The election of Donald Trump in 2016 was sites to determine what issues were most important to those seeking office, Kamarck perhaps the most dramatic manifestation and her co-authors discovered a telling indication of the growing divide between of an ongoing trend of big, unexpected Democrats and Republicans: There was only one issue—the Affordable Care Act— changes sweeping society, both domes- tically and globally. Changes in public that made it into the list of the five most-discussed issues among candidates from attitudes toward once-divisive issues like both parties. The researchers also found that Republican incumbents are challenged same-sex marriage and legalizing mar- more often than Democrats and tend to perform worse when they are. Consequently, ijuana previously moved at a slow pace, when these representatives arrive in Washington, they are often governing “with one but today, major shifts occur rapidly. For eye over their right (or left) shoulder.” example, a rapid rise in populist senti- ment affected mainstream politics across Europe and the United States. In recent Ambassador of Uganda Oliver elections, this has had a profound effect Wonekha (LEFT) on how candidates campaign as well on and Ambassador policies related to a host of issues, from of the Republic of immigration to trade. Rwanda Mathilde Mukantabana at the Vice President and Director of launch of the second Governance Studies Darrell West, the Financial and Digital Inclusion report Douglas Dillon Chair, chronicled this emerging dynamic in Megachange: Economic Disruption, Political Upheaval, and Social Strife in the 21st Century. In ALSWANG RALPH PHOTO: the face of this remarkable shift, many Howard University governing institutions rely too heavily Associate Professor on slow deliberation and burdensome Michael Fauntroy bureaucratic processes. West argues (RIGHT) talks about that, in the face of “megachange,” what to expect from institutions must become more nimble minority voters in the 2016 election as and adaptable, an important lesson for María Teresa Kumar, governments and citizens alike. president and CEO of Voto Latino listens PHOTO: STEVEN A. PURCELL STEVEN PHOTO:

18 Lawfare: Hard National Security Choices

The Trump Administration’s unorthodox readership for Lawfare. In the first six months STUDIES approach to a range of security issues has cre- following Donald Trump’s inauguration, traffic ated an unprecedented demand for thoughtful, to the website surpassed the entire volume it

careful analysis of the legal and ethical had received since its founding in 2010, and GOVERNANCE dimensions of its actions. From the executive the number of page views in January 2017 order to prevent entry into the United States exceeded that of January 2016 by 1,101 percent. from seven Muslim-majority nations to the Lawfare’s remarkable success has caught the unfolding drama around the Trump campaign’s attention of the media, with a profile in theNew connection with Russia to the firing of FBI York Times Magazine and a segment on NPR’s Director James Comey, there are serious ques- “This American Life,” among others. tions about the law and legal institutions in the context of national security and the presi- One of Lawfare’s key innovations is SourceList, a dent’s policies. Under the leadership of Senior database compiled by Hennessey of female and Fellow and Editor-in-Chief Benjamin Wittes and minority experts in the fields of national secu- Fellow and Managing Editor Susan Hennessey, rity and technology. Due to launch in fall 2017, Lawfare has been answering these questions Hennessey created this resource as a response with well-reasoned discussions of legal prin- to the tendency of national media, conference ciples and how they apply to the unusual organizers, and others to rely on white men in situation in which the nation finds itself. the field of national security for commentary Fellow and Managing Editor and analysis. SourceList aims to include differ- of Lawfare Susan Hennessey The quality of the insights, along with the sheer ent and more diverse experts in discussions that (LEFT) moderates a discussion with then-Secretary of volume of controversies generated by the new need their voices. Homeland Security administration, have led to explosive growth in John F. Kelly

PAYING TAXES: A CIVIC DUTY AND POINT OF NATIONAL PRIDE

Civic engagement comes in many forms, from following policy debates and attend- MORIGI PAUL PHOTO: ing town halls to volunteering for campaigns and voting, or even running for office. One somewhat surprising avenue for civic participation is the paying of taxes, which is usually thought of as a source of consternation and resentment for much of the public. But research shows that this initial and widespread assumption about how Americans feel about paying taxes is incorrect. In fact, paying taxes is more often a source of pride. Fellow Vanessa Williamson used both national survey data and interviews to explore how people actually feel about paying taxes, which she published in her book, Read My Lips: Why Americans are Proud to Pay Taxes. She finds that Americans largely see their own taxpaying as a sign that they are contributing Karen Tumulty of moderates productively to their nation, even though they may have misconceptions about who a discussion on President Trump’s first 100 days else pays taxes. These incorrect notions create resentment toward those who are with Senior Fellow and Director of the Center for Effective Public Management Elaine Kamarck and perceived as not paying their share, including both the wealthy and the poor, as Senior Fellow William Galston, the Ezra K. Zilkha well as illegal immigrants. For all the rhetoric in Washington Chair in Governance Studies (FROM LEFT) railing against taxes, this empirical study of American attitudes could clear the way for a better, more produc- tive understanding among policymakers of how to talk about taxes, taxpayers, and even civic engagement.

Explore beyond the highlights. Visit brookings.edu/program/ governance-studies and follow @ BrookingsGov 19 PHOTO: PAUL MORIGI PAUL PHOTO: METROPOLITAN POLICY PROGRAM

REDEFINING GROWTH AND OPPORTUNITY IN CITIES

s our nation prepared for, and then ushered in, new leadership in Washington, the AA Brookings Metropolitan Policy Program (the Metro Program) doubled down on its steadfast belief that cities and metro areas must continue to be a force for progress in creating an advanced economy that works for all. The very attributes of an advanced economy—globally integrated, technologically savvy, multicultural—can also be threats, real or perceived, to prosperity for some people, firms, and communities. Though the scale of these challenges is national, the solutions are often local. Under the leadership of Vice President Amy Liu, the Adeline M. and Alfred I. Johnson Chair in Urban and Metropolitan Policy, the Metro Program focused its year on broadening the definition of economic success, helping local leaders adapt to disruptive macroeconomic forces, and advancing local problem-solving with data, insights, and convening power.

CONNECTING COMPETITIVENESS AND INCLUSION

PHOTO: SHARON FARMER SHARON PHOTO: While proponents of economic growth and proponents of equity and opportunity have traditionally worked in parallel structures and with parallel purposes, the mag- nitude and urgency of today’s challenges call for more than the status quo. Economic inclusion requires systems change, behavior change, and a culture shift across all Global Economy and Development institutions and actors in a region to achieve an advanced U.S. economy that works Senior Fellow Jeffrey Gutman (LEFT) for more people, firms, and communities. and Metropolitan Policy Program To be successful, regional economic development, business, and other market Fellow Adie Tomer at the launch of their Moving to Access report leaders need to be actively engaged in economic inclusion efforts. Yet, most lack the framework, business case, and general know-how to pursue growth strategies that improve opportunities for underserved populations and communities. To meet growing demand from these stakeholders, the Metro Program piloted an experimental

20 Kresge Foundation President Rip Rapson leads a discussion on Detroit’s resurgence with Sandy

PHOTO: RALPH ALSWANG RALPH PHOTO: Baruah, President and CEO of Detroit Regional Chamber, Stephen Henderson, Editorial Page Editor of the , Quintin E. Primo III, Chairman and CEO of Capri Investment Group, and Brookings Senior Fellow Jennifer Vey (FROM LEFT)

“learning lab” with economic development leaders in three metro areas—Indianapolis, Nashville, and —to develop and articulate a data-driven business case Tracking Detroit's Resurgence for why inclusion is central to economic competitiveness. The intensive, six-month While the resurgence of Detroit’s auto process involved conducting rigorous research and outreach efforts—including to industry has been an integral component neighborhood and equity organizations—and informed new research by Metro Fellow of the city’s stabilization, business lead- Joseph Parilla and Nonresident Senior Fellow Brad McDearman. As a result, market ers agree that entrepreneurship and small leaders in these three metros know how to integrate inclusion into a growth agenda businesses are at the heart of the city’s and, importantly, now have the tools required to advocate for new organizational renaissance. So, what does it take for priorities, strategies, and collaborations. small business owners and entrepreneurs to be successful in a city like Detroit and elsewhere? In May, Brookings hosted RESPONDING IN AN AGE OF ACCELERATIONS an event with the Kresge Foundation The major forces roiling the U.S. economy—including globalization, technology, to unpack the answer to this question. urbanization, and demography—are not new, but they are outpacing society’s ability Kresge President Rip Rapson pre- to adapt in what Thomas Friedman calls this “age of accelerations.” The resulting sented the Foundation’s annual “Detroit dislocation, in which many workers, firms, and communities are left behind as others Reinvestment Index,” a comprehensive prosper, has given rise to class, race, and geographic divisions. Research by Metro report measuring Detroit’s comeback scholars continued to frame the debate around these disruptive forces and what they since the recession and the city’s fiscal mean to America’s local and state leaders, who retain the ability and reputation to collapse. The report found significant con- bridge divides and work creatively to ensure widespread growth and prosperity. fidence in the city among both national Senior Fellow Mark Muro demonstrated the rise of the “gig economy” with new investors and local entrepreneurs. data suggesting ride-sharing technologies are beginning to displace payroll workers Following the presentation, a panel of in some cities, while Associate Fellow Devashree Saha showed the unstoppable tra- philanthropic and non-profit leaders jectory of in coal mining, dispelling political notions about its potential examined Detroit’s strategy to big resurgence. Fellow Elizabeth Kneebone reminded us that poverty continues to grow on small businesses, explored whether at twice the rate in America’s suburbs as in its core cities, and the challenges of it could serve as a model for other Rust poverty touch all 435 congressional districts. Upon President Trump’s decision to Belt cities, and discussed what small withdraw the U.S. from the Paris Climate Accord, Metro scholars responded with business owners and entrepreneurs might an affirmative role for cities and states to limit the fallout with their own redoubling require in order to continue powering of commitments. And, as the plight of the white working class dominates national Detroit’s comeback. Panelists determined discourse, Senior Fellow William Frey focused on the nearly 50 percent of millennials that cities need to intentionally build an and children who belong to ethnic minority groups. ecosystem to support small businesses as they provide unique benefits to neighborhood economies and residents, Vice President and Director of the and offer expanded pathways to Metropolitan Policy Program Amy opportunity and wealth-building. Liu (RIGHT) interviews New York Times columnist Tom Friedman about his latest book, Thank You for Being Late

21 PHOTO: PAUL MORIGI PAUL PHOTO: Senior Fellow and Deputy Director of the Metropolitan Policy Program Alan Berube at a Brookings Book Club event on Global Cities: A Short History by Nonresident Senior Fellow Greg Clark PHOTO: SHARON FARMER SHARON PHOTO:

This“ has been an incredible ride, with tangible success and deep learnings that have influenced our entire economic development strategy. Thank you for the wonderful work that you’ve done.”

— GREG FISCHER, MAYOR OF LOUISVILLE, KY, ON HIS CITY’S PARTICIPATION IN THE GLOBAL CITIES INITIATIVE

Redefining Global Cities PARTNERING WITH CITIES TO DESIGN NEW SOLUTIONS

In September 2016, the Metro Program The Metro Program continued to partner with its network of regional business, hosted the Global Cities Summit, mark- elected, and non-profit leaders in cities across the country to co-design new solutions ing the five-year milestone of the Global to today’s biggest challenges and inspire real change. Under the leadership of Fellow Cities Initiative. The Summit reinforced Elizabeth Kneebone, the Metro Program convened a Housing Mobility Community the importance of global trade and com- of Practice to help local housing authorities, state housing finance agencies, and petitiveness, highlighted major urban local governments in Minneapolis-St. Paul, , Chicago, and Kansas City innovations underway, and catalyzed a pursue collaborative regional strategies to increase the supply of housing choices next wave of bottom-up initiatives that in so-called opportunity neighborhoods in cities and suburbs. For each, the Metro respond to the dynamics of the global Program framed the issues, offered new comparative data, facilitated workshops, economy, including ways to engage and captured innovative examples that have enabled local leaders to improve their workers in a period of disruptive global own regional collaborations and apply new approaches from other cities in the net- change. Attendees included city and work. To date, the members of the network have worked together on new financing regional leaders representing nearly tools, ways to engage community stakeholders in embracing housing choices in their 40 metro areas from around the globe, neighborhoods, and how to innovate amidst changes in the federal policy landscape. along with participants from national Metro scholars also launched deep, long-term engagements in Southern and international business and trade California’s Inland Empire and in Portland, OR to develop new visions for inclu- promotion groups, federal agencies, and sive growth and transportation access, respectively. Through the Global Cities economic development organizations. Initiative, Metro’s ongoing joint project with JPMorgan Chase, Metro Fellows Marek The Summit featured the release of a Gootman and Joseph Parilla launched a new cohort of eight metro areas to identify report by Fellow Joseph Parilla that their distinct, competitive strengths and build trading relationships with other cities defines seven types of global cities, around the world. providing a nuanced understanding of how cities are participating in trade and the flow of goods, services, people, capital, and ideas. Parilla takes the 123 largest metropolitan areas in the world and divides them into clusters—global MORIGI PAUL PHOTO: giants, knowledge capitals, American middleweights, international middle- weights, emerging gateways, Asian anchors, and factory China. These groupings make clearer the distinct competitive positions of the world’s largest metro economies and reveal the peers that metropolitan areas can look Kresge Foundation Program Officer Chantel Rush moderates a conversation on the role to for common solutions and invest- of small businesses in Detroit with Anthony Hatinger, CEO of Detroit Ento, Kathy Belk, ments to enhance economic growth. president of JumpStart, Inc., Pamela Lewis, director of the New Economy Initiative, and Janis Bowdler, Head of Small Business and Community Development for Global Philanthropy at JPMorgan Chase (FROM LEFT) 22 Source: Public Citizen.DepartmentofLabor TradeAdjustmentAssistance ConsolidatedPetitionsDatabase. Washington,DC,http th Database. Washington DC,http://www.citizen.org/taadatabase Source: PublicCitizen. Department of LaborTrade Adjustment Assistance Consolidated Petitions Map 1.Trade displacement felt most intensely inMidwest and South T AA cerfiedwork ous Brookings Trustee Pete Higginsandhiswife, Leslie. the Numbers,” both by Ross. This work was generously supported by Out-of-Work,” and“Beyond theMonthly Jobs Report: Putting Faces to Berube; and“People withDisabilities are Disproportionately amongthe of America’s Jobless Adults,” by Deputy Director andSenior Fellow Alan explorefurther crucialelements of thereport: “The Surprising Diversity the report’s release, Metro Program scholars publishedthree blogposts to where visitors can explore data from all130 local jurisdictions. Following The Metro Program publishedthereport withaninteractive webpage, proven andpromising practices. tions for local policymakers to consider implementing based onasurvey of the researchers recommend appropriate workforce development interven report attempts to putaface onout-of-work Americans. For each group, on shared characteristics. By describing andvisualizingthese groups, the ties withpopulationsof more than500,000 into seven majorgroups based that places out-of-work 25 to 64year-olds across 130 U.S. cities andcoun To demonstrate thisvariation, theresearchers developed anew taxonomy history, disability status, andEnglishlanguageproficiency. categories, includingeducational attainment, age, race, family status, work variation inout-of-work populationsatthelocal level based onseveral key Research Analyst andAssociate Fellow Natalie Holmes exposed important and Strategies to Connect Them to Employment,” Fellow Ross Martha and needing work. In“Meet theOut-Of-Work: Local Profiles of Jobless Adults markedly around thecountry, yieldingdiverse local populationswanting or who wants work can findit. Both job availability anddemographics vary unemployment rate, jobs are not always available, andnot everyone Even inthemidst of aprolonged economic expansion withalow national Meet theOut-of-Work 0.15 and work Map 1. 0.75 er T s, 1994-2014 1.5 rade displacementfeltmostintenselyinMidwestandSouth ers pe 3 r :/ /www.citizen.org/taadatabase Natalie Holmes and Associate Fellow Fellow Ross Martha of-Work,” areport by from “Meet theOut- unemployed Americans, The many faces of Mark Muro and Fellow Joseph Parilla Senior Fellow andPolicy Director Impact onWorkers,” ablogpost by “Where Global Trade hastheBiggest affects workers by county from Map of how trade displacement - - program/metropolitan-policy-program Cities Initiative marked thefive-year anniversary of theGlobal of hiscity attheGlobal Cities Summit, which Atlanta Mayor Kasim Reed discusses thefuture Explore beyond thehighlights. and follow Visit brookings.edu/ @ BrookingsMetro

23 METROPOLITAN POLICY PROGRAM PHOTO: PAUL MORIGI STRATEGIC PLAN

PHOTO: JOE CLAPPER

IMPLEMENTING BROOKINGS 2.0

Brookings installed a solar array on its roof that can generate up to 63 kilowatts of renewable energy per day rookings launched its strategic plan in 2016 to position the Institution to con- BB front the challenges of the 21st Century. Brookings 2.0 laid out five goals aimed at strengthening the organization, making it more nimble, and enhancing the rele- vance and impact of its work. The carefully developed strategies to achieve them are creating synergies with other goals. For example, activities intended to promote inclusion and diversity are also fostering collaboration throughout the Institution.

FOCUS THE MISSION OF THE INSTITUTION ON IMPROVING GOVERNANCE There are important questions about how the civic forces of government, the private sector, and non-governmental organizations can work more effectively and efficiently PHOTO: PAUL MORIGI PAUL PHOTO: to improve citizens’ lives. In response, Brookings has focused its mission on improving governance at all levels, from local to national to global. To advance this goal, Brookings has identified five top governance challenges—inclusive growth and opportunity, order and chaos in the international system, the digital revolution, energy and climate change, and urbanization—and launched a set of initiatives and projects to address them. Senator John McCain (R-AZ) (LEFT) discusses the U.S.-led international order with Senior Fellow • The Race, Prosperity, and Inclusion Initiative strives to advance the equity and eco- Robert Kagan nomic prospects of poor and low-income Americans and of communities of color • Brookings is a partner in the Global Governance Futures program, which brings together young professionals to look ahead ten years and recommend ways to address global challenges • The Cross-Brookings Initiative on Energy and Climate brings together expertise on geopolitics, economics and the technical and market realities of energy systems to develop practical, durable energy and climate policies 24 Economic Studies Senior Fellow Adele

PHOTO: PAUL MORIGI PAUL PHOTO: Morris outlines the implications of a with Ian Parry of the International Monetary Fund and Columbia University Professor Joseph Stiglitz (FROM RIGHT) at a Cross-Brookings Initiative on Energy and Climate event

• The new Office of the Centennial Scholar is tackling the chal- PROMOTE A CULTURE OF COLLABORATION lenges of a city-driven century with new models of governance Brookings scholars have deep expertise in domestic and interna- and finance to mitigate global challenges tional policy issues, enabling them to address detailed, sometimes technical questions with great precision. But the biggest challenges ENHANCE OUR IMPACT are so complex and multifaceted that finding effective solutions To extend relevance and enhance impact, Brookings is working to requires a multidisciplinary approach, so Brookings marshals schol- bring the Institution’s research and analysis to new and influential ars from across the Institution to contribute to work on particular audiences. For every research endeavor, Brookings identifies the projects, initiatives, and other efforts. most important audiences—Congressional representatives and staff, executive branch agencies, the White House, multilateral • The Race, Prosperity, and Inclusion Initiative draws on schol- organizations, the media, or the public—and then develops strat- ars from the Economic Studies, Governance Studies, and egies to reach them most effectively. Dissemination may include Metropolitan Policy Programs to address the interlocking social full-length books, briefings, policy briefs, reports, press and televi- factors that limit economic mobility and keep marginalized poor sion interviews, and extensive use of Brookings’s website and social and low-income communities out of the economic mainstream media. Brookings also nourishes partnerships with organizations across the world and maintains three overseas centers to extend our • The Cross-Brookings Initiative on Energy and Climate includes presence. Brookings has made a number of investments to support work by scholars in Brookings’s five research programs and three these strategies and enable scholars to take maximum advantage overseas centers, each of whom brings specialized expertise to of opportunities for impact. the public debate over key energy issues • The new Office of the Centennial Scholar is working with schol- • Brookings.edu underwent a complete redesign and upgrade to ars in Global Economy and Development and Foreign Policy at improve the layout of information and make the most pertinent Brookings, and with external partners at the Partnership for topics more prominent Public Spaces in New York and the Copenhagen Business School • The Brookings Podcast Network includes four highly rated podcasts: the Brookings Cafeteria, Intersections, 5 on 45, and Brookings Events • @BrookingsInst has more than 303,000 Twitter followers who receive timely updates on the latest research, events, and other activities at Brookings. Individual Brookings scholars have hun- ALSWANG RALPH PHOTO: dreds of thousands more followers • Brookings is part of a number networks with other think tanks in the United States, all of the G-20 nations, Africa, and South America, and has overseas centers in , China, and India

CNBC Chief Washington Correspondent John Harwood moderates a Brookings Debate on free trade 25 PHOTO: SHARON FARMER SHARON PHOTO: Senior Fellow Ted Piccone (standing) introduces key foreign policy issues to DC Public School students on Career Day 2017

ADVANCE INCLUSION AND DIVERSITY REINFORCE EFFICIENCY AND SUSTAINABILITY Solving complex governance challenges requires an approach Achieving the goals of Brookings 2.0 requires disciplined manage- that includes a range of perspectives that reflect the diversity of ment and thoughtful decisionmaking. To ensure that the Institution the stakeholders. Brookings is committed to achieving greater operates sustainably, efficiently, and effectively, the strategic plan diversity among its scholars and staff—including gender, racial, updates and enhances approaches to our own governance. Chief ethnic, age, intellectual and ideological diversity—and to making among these are rigorous procedures and policies to safeguard the Institution a welcoming, inclusive work environment. As part the independence of Brookings scholars, careful stewardship of of this effort, Brookings has developed both qualitative and quan- financial resources, transparency, and accountability. titative measures of success. • Brookings continually updates its donor and partnership guide- • The Inclusion and Diversity Committee builds and promotes lines and gift acceptance policies that govern all fundraising the Institution’s work on these issues activities, including disclosure of relationships • Brookings seeks to diversify the pool of applicants by broaden- • Donors are listed in the Annual Report (see Honor Roll starting ing the places from which scholars and other staff are recruited on page 43) • Brookings Trustee David M. Rubenstein created a fellows pro- • Brookings has developed or substantially revised conflict of gram for early- and mid-career scholars identified as rising stars interest and disclosure rules for nonresident and resident schol- ars as well as for outside contributors • Brookings introduced approximately 90 Washington, DC stu- dents to the Institution’s work and operations at its first annual • Brookings has implemented a robust, required training cur- Career Day in an effort to inspire the next generation of leaders riculum for all employees and non-resident scholars on key Institutional policies about independence • Staff brown bag discussions have covered topics like Islamophobia, police shootings, and Charlottesville, as well as • Brookings has introduced new financial sustainability metrics learning opportunities on unconscious bias into program budgeting to improve processes and contribute to long-term financial health • Brookings launched its first-ever Staff Engagement Survey to assess the strengths and weaknesses in its organizational cul- • A new solar array on the roofs of Brookings’s two main buildings ture and create a roadmap for improvement generates up to 63 KW of power every day • Brookings continues to work with other organizations including Brookings 2.0 articulates a pathway to a more effective and sus- the Federal Reserve Board and peer think tanks to address tainable Institution. Improving the way we work enhances the shared challenges to achieving diversity ability of our scholars to address the biggest issues with practical policy solutions. This will be a process of continuous improvement, innovation, and refinement in the years to come.

26 PHOTO: RALPH ALSWANG B from Germany’s experience, and the response of multilateral institutions. response of the multilateral and experience, Germany’s from projectBusiness promote focused that School. has on resilience, strategies This lessons led by research Copenhagen key the Foreign the and with PolicyInitiative program, project The a collaboration is Scholar ofCentennial the of new arrivals. integration and the education, housing, some in financing cases, and, delivering, challenges of planning, Response project European Refugees:and the helps The with cities capacity to build deal thecitiesThe specific where onustheythe settle, governments. Cities putting on local of absorbing to level, task policies them made national falls but at the are immediate the acute an had Europe. Refugee impact in has on cities, crisis refugee especially global The RESPONDING TO THEINFLUX OFREFUGEES INTO CITIES governments. state cities more and conservative between liberal power divide regeneration, political of mayors, the and growing the of lessons Copenhagen’s work from included governance. Their urban examinations successful projects developed are implemented, and in of innovations drivers the and of governance, how characteristics at where power changing lie, the responsibility and Project to on successful governance. 21st The city looking is Governance City Century essential networks and institutions, to help norms, of the deepenrating understanding Dervis¸, Kemal and Vice President of Global Economy Development, and collabo are metropolitan-levelstrong governance. To help leaders tools effective, to be give Katz themselves cities, them requires meeting in and challenges manifest global Many IMPROVING URBAN GOVERNANCE talentand concentrateplacesand where firms, institutions, connect. research concrete provided Initiative recommendationsThe for high-quality developing dynamic, promote links. entrepreneurship, improve capital, and human transportation invest in clusters, ways to advancedcity’s and leverage industry assets their key them to grow identified City each Oklahoma and Philadelphia, of Pittsburgh, of Examinations life. cities to help them become more quality competitive their increase and economically American on three efforts research detailed undertook Scholar Initiative Centennial The ADVANCING INNOVATION TO COMPETE percentage world’s of the areas. population moves to urban cities challenges governance face that work a growing His focuses as on evolving the 2016. Scholar in Centennial inaugural the named was PolicyMetropolitan Program, of Brookings’s director founding impact.ommendations achieve Bruce Katz, real that INITIATIVE SCHOLAR CENTENNIAL B interdisciplinary, cross-program research on large-scale issues policy rec on and large-scale research cross-program interdisciplinary, for to create aplatform Scholar Initiative launched Centennial the rookings Jennifer Vey Innovation Placemaking and M. Bass Center on Anne T. andRobert Co-Director of the Senior Fellow and

PHOTO: PAUL MORIGI - -

To learn more about approaches to city buildingare emerging flock to urban areas, demands for new and office parks. Asmore residents decades of suburban sprawl inhousing popularity asplaces to live andwork after Cities have beenenjoying aresurgence in Investing inPlacemaking sustainable andinclusive. place innovations thatmake cities more and focuses onmarket, social, civic, and is ledby Centennial Scholar Bruce Katz advantage of thistrend. The Bass Center and business leaders’ efforts to take Spaces inNew York to help inform civic partnership withPartnership for Public for Placemaking andInnovation in the AnneT. andRobert M.Bass Center Robert Bass, Brookings established With thegenerous of support Trustee integrate residential andcommercial uses. public spaces, andneighborhoodsthat that emphasize quality of life, vibrant brookings.edu/about-us Bruce Katz Centennial Scholar Brookings 2.0 challenges and environmental serious social, economic, their power to address how cities can leverage Jeremy Nowak, looks at University Professor Bruce Katz andDrexel Centennial Scholar The New Localism , visit , by

27 STRATEGIC PLAN BROOKINGS BEYOND THE BELTWAY

GROWING IMPACT ACROSS THE NATION AND AROUND THE GLOBE PHOTO: XIAOJUN HOU XIAOJUN PHOTO: Brookings-Tsinghua Center Director Qi Ye delivers opening remarks at a forum on low-carbon development in China rookings has been a fixture in Washington, DC for more than 100 years. BB Resident in the nation’s capital, the Institution is able to achieve the greatest impact on the country’s governance. Over time, as policy issues at the local level increasingly came to reflect national challenges and the world became ever more interconnected, Brookings expanded its presence beyond the Beltway. Brookings now has research centers in the three countries—Qatar, China, and India—that extend its reach to some of the most critical regions of the world, as well as partnerships with the University of Nevada, Las Vegas and Washington University in St. Louis.

BROOKINGS MOUNTAIN WEST Recognizing the tremendous growth of the Intermountain West and the associated opportunities and challenges, Brookings established Brookings Mountain West in part- nership with the University of Nevada, Las Vegas. The centerpiece of the partnership is a series of weeklong residencies that give Brookings scholars a presence on campus PHOTO: BROOKINGS INDIA BROOKINGS PHOTO: and in the Las Vegas community throughout the academic year. In addition, Brookings Executive Director of Brookings India Harsha experts based in Washington and Las Vegas contribute research on key regional issues, Singh, Distinguished Fellow Rakesh Mohan, former Indian Prime Minister Manmohan Singh, such as water and other natural resources, urban planning, and economic growth. Union Finance Minister Arun Jaitly, and Meru This year, Brookings experts delivering Brookings Mountain West Lectures at Gokhale of Penguin India (FROM LEFT) at the launch UNLV included Economic Studies Senior Fellow Richard Reeves speaking on his of Mohan’s book India Transformed: 25 Years of new book, Dream Horders; Foreign Policy Senior Fellow Vanda Felbab-Brown talking Economic Reforms about Mexico’s drug cartels; Governance Studies Fellow Molly Reynolds discussing Congressional budgeting; Metropolitan Policy Program Associate Fellow Devashree Saha examining emissions and economic growth; and Global Economy and Development Senior Fellow Jeffrey Gutman’s lectures on access in urban transportation.

28 Tarik Yousef, director of the Brookings Doha Center, moderates a Robert Lang, panel on prospects for stabilizing Mosul that included Ahab Bdaiwi, Executive Director Lecturer at Leiden University, and Brookings Doha Center Visiting of Brookings Fellows Beverley Milton-Edwards and Ranj Alaaldin (FROM LEFT) Mountain West, (RIGHT) introduces a Brookings Lecture at the PHOTO: UNLV PHOTO SERVICE PHOTO UNLV PHOTO: University of Nevada, Las Vegas PHOTO: BROOKINGS BROOKINGS PHOTO: DOHA CENTER

WASHINGTON UNIVERSITY IN ST. LOUIS BROOKINGS DOHA CENTER AND BROOKINGS The Brookings Doha Center is led by Senior Fellow Tarik Yousef Since 2008, Brookings has partnered with the Olin School of and its research agenda covers a wide range of regional political, Business at Washington University in St. Louis to deliver on Robert economic, and security issues. From on-the-ground interviews in S. Brookings’s original desire to “teach the art of handling problems Iraq to economic analysis of the Gulf crisis to fieldwork in Tunisia, rather than simply impart accumulated knowledge.” Staying true Morocco, Jordan, and Egypt, the Center has focused its research to that mission and marrying it to the urgent modern mandate and outreach activities on pressing policy issues in the Middle to improve governance, Brookings Executive Education provides East and North Africa. This year, the Center’s scholars produced best-in-class training to the federal workforce. reports on topics such as unemployment among Egypt’s youth, Beyond executive education, this year Brookings hosted women’s employment in the Arab world, entrepreneurship as a way WashU’s McDonnell Academy Scholars—a network of future to increase inclusive growth, transitional justice, and counterter- global leaders—during their Washington residency, and the rorism in the Sinai Peninsula, among others. McDonnell Academy will host the inaugural dialogue in the The Brookings Doha Center also maintains an active events Debating American Internationalism series. Additionally, Brookings schedule featuring discussions with leading regional experts and economists and social policy experts at the Brown School are study- its own scholars, as well as Washington-based Brookings experts. ing alienation among the underemployed in America’s heartland. Recent events included policy discussions on the conflict in Syria, Russia’s role in the region, India’s relationship with the Middle BROOKINGS-TSINGHUA CENTER East, the constitutional referendum in Turkey, President Trump’s first 100 days in office, and a panel of regional experts expounding Under the leadership of Senior Fellow Qi Ye, the Brookings- on the implications of the Gulf crisis. Tsinghua Center in Beijing produces high-impact policy research on critical economic and social issues in China’s development and U.S.-China relations. Through a comprehensive program BROOKINGS INDIA CENTER of research, publications, public events, and private roundtables Brookings India in New Delhi is led by Chairman Vikram Singh and seminars, the Center’s experts provide insights and policy Mehta and Executive Director Harsha Vardhana Singh. It serves as a recommendations that resonate with policymakers in Beijing, platform for cutting-edge, independent, policy-relevant research and Washington, and throughout East Asia. analysis on the opportunities and challenges facing India and the Over the last year, the Brookings-Tsinghua Center published world. Brookings India’s research agenda focuses on key economic, thoughtful analysis of topics including China’s role in curbing security, and social policy questions, as well as India’s relationship North Korea’s nuclear ambitions, energy management, promoting with the United States and its foreign policy more broadly. good governance, and Chinese investment in Latin America. The Recent work by Brookings India experts includes examina- Center also held a series of events that focused on critical issues tions of Trump-era India-U.S. relations, India’s efforts to advance such as China’s responses to the Paris climate agreement, Chinese its interests in East and Southeast Asia, energy and climate, contributions to global governance, the rise of the Renminbi, and voting systems, gender issues, trade, the financial sector, and Sino-U.S. relations under the Trump Administration. public health. Brookings India’s events calendar featured public and closed discussions of the power sector and renewable energy, multilateral trade diplomacy, counterterrorism in South Asia, tax policy, and the growing middle class.

29 INTERNATIONAL ADVISORY COUNCIL

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A COUNTRY AND A WORLD IN TRANSITION

Members of the International Advisory Council vote on options for responding to a theoretical Syrian chemical weapons strike in an interactive crisis simulation he International Advisory Council is an important part of the intellectual life of a National Security Council meeting TT of Brookings. Its 32 members hail from 24 countries across the world, bringing a critical international perspective to the issues and acting as global ambassadors for Brookings’s work. Now in its 12th year, the International Advisory Council convenes annually in Washington for briefings from senior policymakers and interactive discus- sions with experts from outside and inside Brookings on the most pressing economic and security topics facing decisionmakers in government and the private sector. The 2017 annual meeting of the International Advisory Council came as President Trump was transitioning to governance after his surprising victory in a divisive and volatile campaign. As the new administration began to implement the president’s priorities, members of the Council had the opportunity to probe how this unconventional president is managing the many and varied threats that face America and the world.

PHOTO: PAUL MORIGI PAUL PHOTO: Over the course of three days together, the International Advisory Council examined responses to ongoing international challenges—ISIS and the persistent civil war in Syria, North Korea’s nuclear threat, Russia’s geopolitical ambitions and meddling in democratic elections, China’s continuing rise, and the ongoing strains on European integration. They spent time on U.S. domestic issues, too, including Former U.S. President William J. Clinton shares memories of his prospects for tax reform, governmental ethics, media coverage of the White House, friendship with Strobe Talbott at a the U.S. economy, immigration, and criminal justice. Members of the Council also dinner honoring Talbott’s tenure as engaged in an interactive simulation of a National Security Council meeting to deter- Brookings President mine how to respond to a hypothetical Syrian chemical weapons attack. Looking ahead to the 2018 annual meeting, the International Advisory Council will once again engage with Brookings scholars, external experts, and leading policy- makers to exchange views on the biggest challenges facing the world order.

30 PHOTO: PAUL MORIGI PAUL PHOTO:

CIA Director (LEFT) discusses threats to U.S. security with Senior Fellow Bruce Riedel at the 2017 International Advisory Council meeting

INTERNATIONAL ADVISORY COUNCIL MEMBERS

Antoine W. van Agtmael J. Jon Imaz Javier Monzón Co-Chairman of the IAC CEO Spain Senior Adviser Repsol Garten Rothkopf Spain José Oliu Creus United States President

Nobuyori Kodaira Banc Sabadell MORIGI PAUL PHOTO: Paul Desmarais, Jr. Executive Vice President Spain Co-Chairman of the IAC Member of the Board of Directors Chairman and Co-CEO Toyota Motor Corporation Victor Pinchuk Power Corporation of Canada Japan Founder Canada EastOne Ltd. Frank Lowy Ukraine Mohammed Mahfoodh Alardhi Co-Founder Executive Chairman Westfield Group Patrick Pouyanné Investcorp International Inc. Australia Chairman and CEO Oman Total S.A. Stefano Lucchini France Rahul Bajaj Head of International & Co-Chair of the International Advisory Council Marian Puig Chairman Regulatory Affairs and Brookings Trustee Paul Desmarais Bajaj Auto Limited Intesa Sanpaolo EXEA India Italy Spain Hakeem Belo-Osagie Andrónico Luksic Itamar Rabinovich Chairman Vice Chairman President Etisalat Nigeria Banco de Chile Israel Institute Nigeria Chile Bronfman Distinguished Nonresident Senior Fellow George David Philip Mallinckrodt The Brookings Institution Chairman Group Head of Wealth Management Israel

Coca-Cola Hellenic Bottling Schroders PLC MORIGI PAUL PHOTO: Company United Kingdom Royal Dutch Shell Greece Netherlands Jorge Mandelbaum Sir Mick Davis Chairman of the Advisory Board SK holdings Co. Ltd. Founding Partner CIPPEC (Center for the South Korea X2 Resources Limited Implementation of Public Policy) Kihak Sung United Kingdom Argentina Chairman and CEO Haluk Dinçer Honorable John Manley, P.C. Youngone Corporation President, Retail and Insurance O.C. South Korea Sabancı Holding Chair, CIBC Marcus Wallenberg International Advisory Council member Turkey President and CEO Chairman Andrónico Luksic Business Council of Canada Skandinaviska Enskilda Pablo González Guajardo Canada Chief Executive Officer Banken AB Kimberly-Clark de México Shmuel Meitar Sweden Mexico Chairman and Founder Yuanqing Yang Aurec Capital Chairman and CEO Antti Herlin Israel Chairman of the Board Lenovo KONE Corporation Jaime J. Montealegre China Finland President Dieter Zetsche Sigma Management, S.A. Chairman Costa Rica Daimler Corporation Germany

31 SUPPORT FOR BROOKINGS

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NEW INVESTMENTS DRIVE INDEPENDENT RESEARCH

Executive Vice President Martin Indyk, Trustee Leonard Schaeffer, and President Strobe Talbott (FROM LEFT) he generosity of the many donors who support Brookings is indispensable to TT the high-quality, high-impact, independent research for which the Institution has been known for more than a century. These individuals, foundations, corpora- tions, and other organizations provide essential resources that make it possible for Brookings experts to pursue a wide-ranging program of in-depth analysis and policy recommendations to meet the most difficult challenges facing decisionmakers in Washington, across the nation, and around the world. Brookings is grateful to the people and institutions that share our commitment to improving governance through evidence-based, non-partisan policy research.

SECOND CENTURY CAMPAIGN SURPASSES GOAL Brookings launched the Second Century Campaign in 2009 to bring new resources that would strengthen the financial foundation of the Institution and ensure that our

PHOTO: PAUL MORIGI PAUL PHOTO: mission and values would endure. The Campaign’s goals were organized around the three core principles that guide everything Brookings scholars do: ensuring quality research, sustaining the independence of our work, and maximizing its impact. The Second Century Campaign was comprehensive, so it also included efforts to increase Trustee Abby Joseph Cohen, restricted project funding, as well as the critical unrestricted funds that underpin vice chair of the Nominations and our work. Governance Committee The Campaign’s financial goal was set at $600 million—the largest-ever cam- paign by a think tank. Under the leadership of Campaign Chair and Vice Chair of the Brookings Board Glenn Hutchins, Brookings raised more than $670 million over the course of the Campaign, surpassing the goal by a wide margin. Success is measured by more than just the total funds raised. The key metric is the new

32 PHOTO: PAUL MORIGI PAUL PHOTO:

Members of the Brookings Society with President Strobe Talbott (CENTER), and Co-Chairs of the Board David Rubenstein (LEFT) and John Thornton (RIGHT) at the 2017 Brookings Society Summit

endowed chairs, new fellowships, new centers and initiatives, and new tools for John Hazen White Global impact that these resources make possible. These enhanced capabilities contribute Manufacturing Initiative to a stronger Brookings that is better positioned to fulfill our mission. Manufacturing is a vital driver of innova- At the heart of Brookings’s commitment to high-quality independent research tion and economic development around are our dedicated scholars and the innovative thinking they bring to the most daunt- the world, comprising around 12 percent ing policy challenges. Ensuring that Brookings can attract and retain the best policy of U.S. Gross Domestic Product and even minds in a competitive field requires significant resources and so increasing the higher proportions in many other coun- number of endowed chairs and other durable scholar positions was a principal focus tries. But, new manufacturing approaches of the Campaign. As a result, Brookings established five new endowed chairs, four and robotics are significantly altering how dedicated to East Asia and one to tax policy. In addition, Brookings launched eight goods are produced and the sector faces new multiyear fellowship programs that bolster capacity across a range of disciplines, a number of challenges related to energy along with five program or center endowments that contribute funds to ensure sus- costs, regulation, standard-setting, and tainability in key areas. workforce development. In a fast-changing policy environment, being able to respond nimbly to breaking events with thoughtful analysis and practical recommendations is a core strength. In order to help understand these Strategic initiatives funds in the executive office and the research programs give challenges and develop practical Brookings the flexibility to provide immediate analysis when a sudden crisis arises policy recommendations to overcome that cannot wait for dedicated project funds to be raised. Likewise, these ver- them, Brookings Trustee John White satile funds enable Brookings to take advantage when unexpected opportunities established the John Hazen White Global Manufacturing Initiative with an for impact present themselves or new scholars become available for recruitment. endowment gift. The Initiative will expand These special funds also allow the programs to launch new research efforts that the work of the John Hazen White, Jr. can establish a track record of success to build upon. Policy Forum, which he established in 2012 Brookings places great emphasis on ensuring that the to create a platform for serious discussion research, analysis, and policy recommendations that our experts by policymakers, business leaders, and produce reach influential audiences in government, the media, other stakeholders of key issues in and the public. Technologies and platforms for sharing and manufacturing. The resources provided disseminating information have evolved tremendously over by this gift will make possible a broader the last several years, and an important component of the research program, collaborative work Campaign centered on adopting and expanding our use of with colleagues across Brookings, and an these new tools. Through a new podcast studio, a rede- enhanced outreach and dissemination signed website, an enhanced creative studio, and other strategy to bring sound policy investments, Brookings is committed to achieving ideas for strengthening maximum impact. manufacturing into the public debate. Trustee John Hazen White, Jr.

33 PHOTO: PAUL MORIGI PAUL PHOTO: Brookings Welcomes Eight New Trustees

Brookings elected eight new Trustees to the Board in 2017. They join a distinguished group of business, community, and academic leaders who help govern the affairs of the Institution. The Board, which meets Trustee Cheryl three times annually, directs the management of the Cohen Effron Institution, approves the fields of scholarly inves- MERIANS SARAH PHOTO: tigation, and safeguards the independence of the Institution’s work. Brookings warmly welcomes its newest members to the Board of Trustees. PHOTO: COURTESY OF CATHY MINEHAN OF CATHY COURTESY PHOTO: PHOTO: AARON CLAMAGE AARON PHOTO: ENGAGING THE PRIVATE SECTOR IN Jason Cummins Cathy Minehan BROOKINGS’S WORK Head of Economic Research Managing Director Brevan Howard Asset Arlington Advisory Partners The Brookings Council is the principal group of donors who contrib- Management ute unrestricted support to Brookings. The annual gifts of general operating funds from the engaged individuals and corporations who make up the Council play a vital role in Brookings’s success. The resources contributed by these donors sustain the infrastructure that makes the work of Brookings experts possible and enable the broad research agenda to address issues that are not yet in the headlines. Since its founding in 1983, the Council has been deeply engaged in Brookings’s work through an annual program of scholar PHOTO: COURTESY OF NEIL SHEN COURTESY PHOTO: PHOTO: T. ROWE PRICE STAFF ROWE T. PHOTO: events, briefings, and conference calls that provide deeper insight Brian Rogers Neil Shen into the work of Brookings experts and allow them to share their Chairman Founding Managing Partner T. Rowe Price Sequoia Capital China own perspectives on the most pressing issues of the day. Last year the Council calendar included more than 30 events in seven cities across the country that featured some of Brookings’s top schol- ars. Among the highlights were simultaneous viewings of the first presidential debate in New York and San Francisco that featured real-time analysis and discussion with Brookings experts, a discus- sion of social mobility with Senior Fellow and Co-Director of the Center on Children and Families Richard Reeves, a conversation with Senior Fellow Joshua Meltzer on the U.S. and international

PHOTO: ROLAND LANE ROLAND PHOTO: PULLEN ROSS OF NICOLE COURTESY PHOTO: trade, and an analysis of U.S. foreign policy in the Middle East with Aditya Mittal Nicole Pullen Ross Senior Fellow Tamara Cofman Wittes. Group CFO and CEO Managing Director ArcelorMittal Europe Goldman, Sachs & Co. PHOTO: DIANA BARBATTI PHOTO: PHOTO: COURTESY OF KRISHEN SUD COURTESY PHOTO: PHOTO: COURTESY OF ERCUMENT TOKAT OF ERCUMENT COURTESY PHOTO: Krishen Sud Ercument Tokat Founder Partner Members of the Brookings Council watch the first presidential debate Sivik Global Healthcare, Inc. Centerview Partners in San Francisco ahead of a discussion with Economic Studies Fellow Aaron Klein and Governance Studies Senior Fellow Thomas Mann

34 • • • • • • • • • • important of part theintellectual life of theInstitution. in September 2017 andthey have already become an The first class of Fellows begantheir tenure atBrookings domestically andinternationally. ence ontheissues and problems thatconfront society, to complex issues, andapassion for makingareal differ sive thinking,anopenness to multi-disciplinary approaches pool for theirexceptional capacity for critical andexpan Fellows are selected from ahighlycompetitive applicant to foster collaboration across theInstitution. Rubenstein Brookings’s five research programs andwillbeencouraged Rubenstein Fellows willbeappointed to oneormore of of theirscholarship. other means designed to maximize thereach andimpact disseminated usingadvanced communications tools and to policy smart recommendations. Their work willbe Century through in-depth research andanalysis leading new ideas to the key governance challenges of the21st for two-year terms. The Rubenstein Fellows willbring early- andmid-career experts from theU.S. andabroad fellowship program thatwould enableBrookings to recruit David Rubenstein madeapivotal giftto establish anew ranks. To helpachieve thisgoal, Co-Chair of theBoard is to rejuvenate anddiversify theInstitution’s scholar One of thecore goals of theBrookings 2.0 strategic plan Attract New Talent David M.Rubenstein Fellowships PHOTO: RALPH ALSWANG Landry Signé,Global Economy andDevelopment Jenny Schuetz, Metropolitan Policy Program Alina Polyakova, Foreign Policy Andre M.Perry, Metropolitan Policy Program Makada Henry-Nickie, Governance Studies Ryan Hass, Foreign Policy Marcus Casey, Economic Studies Dany Bahar, Global Economy andDevelopment Scott R. Anderson, Governance Studies Randall Akee, Economic Studies

David Rubenstein the Board Co-Chair of

-

-

PHOTO: PAUL MORIGI PHOTO: PAUL MORIGI PHOTO: PAUL MORIGI Adem Bunkedekko Brookings Society Co-Chair Katherine Harrisandmember Trustee Victor Hymes (RIGHT) (LEFT) andSenator JohnMcCain (R-AZ) Suzanne Nora Johnson Vice Chairof theBoard

35 SUPPORT FOR BROOKINGS PHOTO: PAUL MORIGI PHOTO: PAUL MORIGI PHOTO: PAUL MORIGI 36 Brian Greenspun Trustees Kenneth Jacobs, Ben Jacobs, and International Advisory Council Trustee Antoine van Agtmael, co-chair of the (RIGHT)

Trustee AnnFudge

PHOTO: PAUL MORIGI He cultivated anatmosphere of academic freedom thatencouraged scholars Throughout histenure, Strobe fostered scholarship of thehighest quality. more than$670 millioninnew resources to Brookings. Hutchins, Strobe oversaw acomprehensive fundraising effort thatbrought the Institution. Working closely withSecond Century Campaign ChairGlenn continents andhasestablished aprominent place intheintellectual life of Advisory Council, whichhasgrown to 32 members from 24 countries onsix Delhi. Healso ledthecreation of theInternational launched overseas centers inDoha,Beijing, andNew Program andGlobal Economy andDevelopment—and two fullresearch programs—the Metropolitan Policy Strobe joinedBrookings in2002, Brookings added pendent research onpublicpolicy issues. Since to meet thegrowing demandfor rigorous, inde at thehelm,Brookings expanded tremendously of theInstitution after 15years. Duringhistime Talbott would step down inOctober aspresident In January2017, Brookings announced thatStrobe President of Brookings after 15Years Strobe Talbott Steps Down as College, andtheNationalWar College. master’s degrees from Georgetown University, theDefense Intelligence graduated with military honors from theU.S. Naval Academy andholds ple command andstaff positions intheMarineCorps andJoint Force. Allen the Brookings family. issues inglobal governance. Inthatcapacity, hewillremain avital of part Strobe isjoiningtheForeign Policy program, where hewillfocus oncritical Although heisstepping down from thepresidency of theInstitution, analysis andpractical policy recommendations. reach key policymakers, influential media,andthepublicatlarge withsmart munication technologies andplatforms thatenabledBrookings scholars to audiences thatsee it. For thisreason, hespearheaded theuse of new com impact, recognizing thatBrookings scholarship isonlyasvaluable asthe tive publicpolicy could helpaddress them.Heremained keenly focused on to thinkinnovatively aboutthechallenges facing society andhow effec Brookings Institution president of the John R. Allen,incoming

His nearly 38-year military career includedmulti the secretary of defense onMiddleEast Security. counter ISILand,priorto that, assenior advisor to presidential envoy to theglobal coalition to Policy program. Hemost recently served asspecial Allen was adistinguished fellow intheForeign the eighth leader inBrookings’s 101-year history, Forces inAfghanistan. Priorto hisappointment as Security Assistance Force andUnited States former commander of NATO’s International retired U.S. MarineCorps four-star general and Strobe willbesucceeded by JohnR. Allen,a - the Institution his 15years of leading at a dinner in honor of Strobe Talbott speaks Brookings President - - -

PHOTO: PAUL MORIGI PHOTO: PAUL MORIGI PHOTO: PAUL MORIGI report on its first 100 days from Hudak andfrom Hudak Fellow days on its first report Molly Reynolds. 100 election received the they and aprogress for after Society the Trump Administration Senior Fellow and John HudakPublic previewed the Kamarck Management Elaine Stelzenmüller. SeniorConstanze Fellow ofCenter the Director and for Effective Bosch Robert Senior Fellow with alliance transatlantic of the on future and the Senior Fellow on her work Graham her Carol and new book, on of pressing a range topics. year’s included calendar conversations This with scholars for Brookings discussions year in-depth the throughout ence with calls greatly.leadership, benefit which all from with theInstitution’sand Trustees for networking opportunities significant provides and Board Brookings of the held meeting is conjunctionSummit spring in the with The America. Latin and economies emerging Asia and in Russia Europe, and China, on Middle East, groups the breakout working Vanessa regional and Williamson, Policy,Monetary Fellow Studies Governance adiscussion of with politics society and developed game Ship video Fiscal by the Hutchinsusing the Center on and Fiscal 2017The included Summit interactivefederalof simulation the budgeting an process chapters, centerpiece the Summit. Society Society’sof event the annual the is calendar involved Institution’s the in members With four 80 work. principal in more than interest public their in professionals get mid-career policy and and them to nurture Like the Brookings Council, the Society gathers in person on and in confer gathers Society Council, the Brookings the Like founded was 2012 Society in for Brookings early- The to create opportunities Happiness for All?, for Happiness -

and Bea Welters the Development Committee, Trustees Collins, Art chairof Tracy Wolstencroft John Thornton andTrustee Co-Chair of theBoard Trustee ArneSorenson (RIGHT) Chair of theSecond Century Vice Chairof theBoard and Campaign GlennHutchins

(RIGHT)

PHOTO: PAUL MORIGI PHOTO: PAUL MORIGI

37 SUPPORT FOR BROOKINGS IN MEMORIAM

William T. Coleman, Jr. Lois Rice

William Coleman served on the Lois Rice came to Brookings in Brookings Board for 42 years, 1991 as the Miriam Carliner Guest including 20 years as a member of Scholar in Economic Studies, where the Executive Committee. Coleman she focused on issues in education was an attorney who contributed to policy. She played a critical role in three major civil rights cases before developing and implementing the PHOTO: AARON CLAMAGE AARON PHOTO: PHOTO: RALPH ALSWANG RALPH PHOTO: the Supreme Court, including the Pell Grant program. She served on landmark Brown vs. Board of Education. He also served as the Carnegie Council on Higher Education and chaired the Secretary of Transportation during the Ford Administration. Visiting Committee to the African American Studies program His memoir, Counsel for the Situation: Shaping the Law to at Harvard. She was instrumental in creating and leading the Realize America's Promise, was published by the Brookings Think Tank Diversity Consortium, which works to increase Institution Press in 2010. minority hiring in the field of public policy research.

Robert Lindsay Ralph Saul

Robert Lindsay joined Brookings as a Ralph Saul served on the Brookings security guard in 2002 after serving Board of Trustees from 1982 through 24 years as a special police officer 2009 and was vice chair from 1985 in the Washington area. In 2007, he through 1991. He was a member became a member of the Brookings of the Development Committee, facilities team, where he worked chairing it from 1987 through 1992, PHOTO: BROOKINGS INSTITUTION ARCHIVES INSTITUTION BROOKINGS PHOTO: PHOTO: RALPH ALSWANG RALPH PHOTO: through the spring of 2016. He was as well as the Investment, Audit, and widely known and admired by all who came into contact with Nominating Committees during his tenure on the Board. He him and he embodied Brookings’s dedication to civil dis- was chairman of the CIGNA Corporation. He began his career course, mutual respect, and professionalism. as a foreign service officer in Prague and later was assistant counsel to the governor of New York. Saul also served on the Securities and Exchange Commission and was later presi- Pietro Nivola dent of the American Stock Exchange.

Pietro Nivola was a senior fellow in Governance Studies from 1993 Charles Schultze until 2013, including serving as Vice President from 2004 through 2008. Charles Schultze was a Senior Fellow He held the Douglas Dillon Chair for in Economic Studies for over 45 many years. He published numerous years, including serving as director PHOTO: RALPH ALSWANG RALPH PHOTO: books and articles on subjects rang- of the program from 1987 through ing from energy regulation and environmental protection to 1990. He published dozens of articles trade and industrial policy, urban problems, federalism, and and books, including Memos to the PHOTO: BROOKINGS INSTITUTION ARCHIVES INSTITUTION BROOKINGS PHOTO: American national politics. In his memory, Brookings estab- President and was co-editor of the lished the Pietro S. Nivola Internship in Governance Studies. Setting National Priorities series. Prior to Brookings, he was assistant director of the Bureau of the Budget in the Kennedy Administration and director under the Johnson Administration. Under President Carter, he was Chairman of the Council of Economic Advisors.

38 PHOTO: JORGE RIVERA GARCÍA PHOTO: JORGE RIVERA GARCÍA PHOTO: PAUL MORIGI PHOTO: SARAH MERIANS Trustees Robert Abernethy andHeleneGayle Trustee James Johnson

PHOTO: PAUL MORIGI Pete Higgins Trustees David Weinberg and (RIGHT) (RIGHT) co-chair of the Desmarais, Jr., Trustee Paul (LEFT) John Thornton the Board Co-Chair of Council Advisory International and

Ezra K.ZilkhaChair Fellow William Galston, the Governance Studies, andSenior Policy, Fellow MollyReynolds of Michael O’Hanlonof Foreign that featured Senior Fellow the first presidential debate a panel discussion following Trustee AlanBatkin introduces

PHOTO: PAUL MORIGI PHOTO: PAUL MORIGI PHOTO: SARAH MERIANS Trustee PhilipKnight Brookings Council memberGordon Pattee Learn more aboutgetting involved withBrookings. (FROM LEFT)

Visit brookings.edu/development Committee and Finance the Budget Chair of Ben Jacobs, Trustee

39 SUPPORT FOR BROOKINGS BROOKINGS INSTITUTION EXECUTIVE LEADERSHIP

Strobe Talbott President

Martin Indyk Executive Vice President

Irena Barisic Vice President, Chief Financial Officer, PHOTO: PAUL MORIGI PAUL PHOTO: Strobe Talbott and Treasurer

Steven Bennett Vice President and Chief Operating Officer

Kim Churches Managing Director

K e m a l D e r v i s¸ Vice President and Director, Global Economy

PHOTO: DAY WALTERS DAY PHOTO: ZUSMAN MOSHE PHOTO: MORIGI PAUL PHOTO: and Development Martin Indyk Irena Barisic Steven Bennett The Edward M. Bernstein Scholar

Ona Alston Dosunmu Vice President and General Counsel

Ted Gayer Vice President and Director, Economic Studies Joseph A. Pechman Senior Fellow

Bruce Jones PHOTO: PAUL MORIGI PAUL PHOTO: PHOTO: PAUL MORIGI PAUL PHOTO: PHOTO: BROOKINGS INSTITUTION BROOKINGS PHOTO: Vice President and Director, Foreign Policy Kim Churches Kemal Dervis¸ Ona Dosunmu Amy Liu Vice President and Director, Metropolitan Policy Program The Adeline M. and Alfred I. Johnson Chair in Urban and Metropolitan Policy

David Nassar Vice President for Communications PHOTO: PAUL MORIGI PAUL PHOTO: MORIGI PAUL PHOTO: PHOTO: PAUL MORIGI PAUL PHOTO: Darrell West Ted Gayer Bruce Jones Amy Liu Vice President and Director, Governance Studies The Douglas Dillon Chair PHOTO: PAUL MORIGI PAUL PHOTO: PHOTO: PAUL MORIGI PAUL PHOTO: David Nassar Darrell West

40 BOARD OF TRUSTEES

John L. Thornton Jason Cummins Brian Rogers HONORARY TRUSTEES Chair of the Board Head of Economic Research Chairman Brookings Brevan Howard Asset T. Rowe Price Chairman Management Liaquat Ahamed James A. Johnson, chair James Rogers Barrick Gold Corporation Former Chief Executive emeritus Alan M. Dachs Retired Chairman and CEO Officer Chairman Glenn Hutchins President and CEO Duke Energy Fischer Francis Trees and Johnson Capital Partners Vice Chair of the Board Fremont Group Nicole Pullen Ross Watts, Inc. Brookings Ann Dibble Jordan Feng Deng Managing Director Chairman Zoë Baird Vernon E. Jordan Jr. Founder Goldman, Sachs & Co. President North Island Northern Light Of Counsel David M. Rubenstein The Markle Foundation Suzanne Nora Johnson Akin Gump Strauss Hauer & Paul Desmarais, Jr. Co-Founder and Co-CEO Vice Chair of the Board Richard C. Blum Feld, LLP Chairman and Co-CEO Brookings Chairman and President Power Corporation of Canada Richard A. Kimball Jr. Former Vice Chairman Victoria P. Sant Blum Capital Partners, LP Founder and CEO Goldman, Sachs & Co. Kenneth M. Duberstein President Louis W. Cabot, chair HEXL Chairman and CEO The Summit Foundation emeritus Strobe Talbott The Duberstein Group, Inc. Nemir Kirdar President Leonard D. Schaeffer Chairman Chairman Brookings Cheryl Cohen Effron Founding Chairman and CEO Cabot-Wellington LLC Investcorp Founder WellPoint Robert J. Abernethy Kenneth W. Dam Conjunction Fund Klaus Kleinfeld President Peter Scher Max Pam Professor of Donald F. McHenry American Standard Alfonso Fanjul Chairman of the Washington American & Foreign Law Distinguished Professor in the Development Co., Inc. Chairman and CEO D.C. Region & Head of Fanjul Corp. and Law School Practice of Diplomacy and Paul M. Achleitner Corporate Responsibility Crystals Corporation International Affairs Non-Executive Chairman JPMorgan Chase & Co. Steven A. Denning School of Foreign Service Deutsche Bank AG Bart Friedman Neil Shen Chairman Georgetown University Senior Partner General Atlantic Dominic Barton Founding Managing Partner Cahill Gordon & Reindel Rajan Bharti Mittal Global Managing Director Sequoia Capital China Vishakha N. Desai Ph.D. Vice Chairman Special Advisor for Global McKinsey & Company, Inc. Ellen V. Futter Arne M. Sorenson Bharti Enterprises Limited President Affairs Robert M. Bass President and CEO American Museum of Natural Columbia University Mario M. Morino President Marriott International, Inc. Co-Founder and Chairman History Thomas E. Donilon Keystone Group, L.P. Krishen Sud Venture Philanthropy Partners Helene D. Gayle Former U.S. National Security Alan R. Batkin Founder Thomas C. Ramey CEO Advisor Chairman Sivik Global Healthcare, Inc. Former Chairman McKinsey Social Initiative Senior Partner Converse Associates, Inc. Michael L. Tipsord O’Melveny and Myers Liberty International, Liberty Brian L. Greenspun Crandall Bowles President & CEO Mutual Group Chairman and CEO Lawrence K. Fish Chairman State Farm Insurance Companies Steven Rattner Greenspun Media Group Former Chairman and CEO The Springs Company Andrew H. Tisch Citizens Financial Group, Inc. Chairman Pete Higgins Hanzade Dog˘an Boyner Co-Chairman of the Board Willett Advisors LLC Founding Partner Cyrus F. Freidheim, Jr. Vice Chairwoman and Chairman of the Edgar Rios Second Avenue Partners Chairman Dog˘an Holding S¸irketler Executive Committee Old Harbour Partners, LLC Co-Founder and Managing Grubu A.S¸. Victor L. Hymes Loews Corporation Director Chief Executive Officer and David Friend Paul L. Cejas Ercument Tokat Wenzi Capital Partners Chief Investment Officer CEO Chairman Partner James D. Robinson III Legato Capital Management LLC BlueArchive, Inc. PLC Investments, Inc. Centerview Partners General Partner and Benjamin R. Jacobs Ann M. Fudge Co-Founder W. Edmund Clark Antoine W. van Agtmael Senior Advisor/Founder Former Chairman and CEO Retired Executive Senior Adviser RRE Ventures The JBG Companies Young & Rubicam Brands TD Bank Group Garten Rothkopf Haim Saban Kenneth M. Jacobs Former Chairman Henry Louis Gates, Jr. Chairman and CEO Abby Joseph Cohen Chairman and CEO Ashmore EMM, LLC Director, Hutchins Center for Advisory Director; and Senior Saban Capital Group, Inc. Lazard African & African American Investment Strategist David B. Weinberg Research Michael P. Schulhof Goldman, Sachs & Co. Philip H. Knight Chairman & CEO Chairman and CEO Founder Judd Enterprises Global Technology Betsy Z. Cohen Nike, Inc. William A. Haseltine Ph.D. Investments Founder & Strategic Advisor Beatrice W. Welters President The Bancorp Sara Grootwassink Lewis Founder and Co-Chairperson The Haseltine Foundation Lynn Thoman CEO AnBryce Foundation Co-Chair Arthur R. Collins Chairman Lewis Corporate Advisors, LLC Leon Lowenstein Foundation Managing Partner John H. White, Jr. Haseltine Global Health, LLC theGROUP Cathy Minehan President and CEO Teresa Heinz Larry D. Thompson Managing Director Taco, Inc. Lawyer Howard Cox Chairman Special Limited Partner Arlington Advisory Partners Tracy R. Wolstencroft Heinz Family Foundation Stephen M. Wolf Greylock Aditya Mittal President & CEO Joel Z. Hyatt Managing Partner Group CFO and CEO Heidrick and Struggles Alpilles, Inc. Susan Crown Chairman, CEO and Chairman and Founder ArcelorMittal Europe Daniel Yergin Co-Founder Ezra K. Zilkha The Susan Crown Exchange James Murren Vice-Chairman Globality, Inc. President Chairman and CEO Chairman and CEO IHS, Inc. Shirley Ann Jackson Ph.D. Zilkha & Sons, Inc. Owl Creek Partners MGM Resorts International Daniel B. Zwirn President Arthur B. Culvahouse, Jr. Laxman Narasimhan CEO and Chief Investment Rensselaer Polytechnic Chairman Emeritus CEO Officer Institute O’Melveny & Myers LLP PepsiCo Latin America Arena Investors LP

41 PROGRAM LEADERSHIP COUNCILS

ach of Brookings’s five research programs has established a Program Leadership Council to provide business, community, and phil- EE anthropic leaders opportunities to engage in substantive conversations on policy issues and help maximize the impact of Brookings’s independent research. The Councils convene throughout the year for briefings from senior policymakers and Brookings experts, conference calls, and other activities focused on policy.

Economic Studies Council Foreign Policy Leadership John L. Thornton Metropolitan Council Council Antoine van Agtmael Jason Cummins, Chair Sharon Alpert Sadek Wahba H. Rodgin Cohen, Vice Chair Jonathan E. Colby, Co-Chair Rebecca Arbogast David B. Weinberg Sandeep Arora Benjamin R. Jacobs, Co-Chair Alexis Bataillon Nick Welch Greg Baer Dominic Barton Robert Bauer Poju Zabludowicz Ken Bentsen Alan R. Batkin Xavier de Souza Briggs Arshad Zakaria Fritz Bittenbender Wael Bayazid Mark Cafferty Seamus Brown Matthias Berninger Valerie Chang Global Leadership Council Jason Cole Jeffrey Boyd Don Chen Julia Coronado Charles Bronfman Suzanne Nora Johnson, Chair Arthur R. Collins Scott Evans Paul L. Cejas Yavuz Ahiska David Egner Jason Gold Ronald Cohen Yonca Brunini Travers Garvin Lorenzo Giorgianni Howard Cox Lou Anne King Jensen Bob Giloth Jameel A. Johnson Jason Cummins Tawfic Khoury Joanne Harrell Ann Kappler Alan M. Dachs Jonathan Schaffzin Phillip Henderson George Kellner Mick Davis Ercument Tokat Pete Higgins David Lichtenstein Feng Deng Don Howard Dean Maki Hugo Doyle Governance Studies Victor Hymes Matt Miller Ronald I. Dozoretz Council Robert Jaquay Hidemoto Mizuhara Alfonso Fanjul David Johnson Cory Alexander Barbara Novick Theresa M. Fariello James A. Johnson Rebecca Arbogast Roberto Perli Robert Fee Tom Kaplan Daniel (Dan) Berger Christopher Pernie Rajiv K. Fernando Monica Keany William (Bill) D. Budinger Andrew Plepler Lawrence K. Fish Richard Kimball Daniel Cruise Nancy Prior David I. Fisher Darcie Kiper Jay W. Eisenhofer Chris Rokos Lee Folger Alicia Kitsuse Gary L. Ginsberg Wilbur Ross Bart Friedman Jamie Merisotis Fred Humphries Mark Spindel Susie and Michael Gelman Josh Moskowitz Bill Kamela Paul Schott Stevens Vartan Gregorian Henrik Nolmark Carol Melton Carl Tannebaum Andrew Gundlach Esra Ozer Heath Morrison Michael Tipsord Roger Hertog Andrew Plepler R. Hewitt Pate Vivek Tulpule Suzanne Nora Johnson Rip Rapson John Piescik David Zervos Samer Khoury Christine Richards Sage Rhodes Michael Klein Kimberly Roberson Edgar Rios Robert A. Kotick Mary Skelton Roberts Peter Scher Edward M. Lamont Louis Salkind Kenny D. Thompson, Jr. Jeffrey D. Lapin Peter Scher Stephanie Valencia Daniel Lubetzky Jewel Scott Claude Wasserstein Daniel Lufkin Lee Sheehy Seymour and Kate Weingarten John G. Macfarlane Thomas A. Stewart John White, Jr. Sharon Nazarian Deidre Swesnik Ezra Zilkha Richard B. Nye Nicole Tremblett Ozan M. Ozkural Antoine van Agtmael John G. Popp Jeffrey Walker Joseph L. Rice Orson Watson Stephen Robert John O. Wynne David M. Rubenstein Haim Saban Rangu Salgame Joseph N. Sanberg William A. Shutzer Ramez Sousou David S. Steiner Krishen Sud

42 HONOR ROLL

Cash, Contracts, and In-Kind Contributions July 1, 2016 – June 30, 2017

$2,000,000 and Above Japan International Cooperation Agency Drexel University SK holdings Charles Koch Foundation Cheryl Cohen Effron and Arne and Ruth Sorenson Steve and Roberta Denning National Science Foundation Blair W. Effron Tom Steyer and Kat Taylor Bill & Melinda Gates Foundation Northrup Grumman Corporation Krishen Sud The Hutchins Family Foundation Pivotal Ventures Alfonso Fanjul Toyota JPMorgan Chase & Co. Schlosstein-Hartley Family David and Marianna Fisher UN University World Institute for Embassy of the State of Qatar Foundation Mark T. Gallogly and Development Economics Research Eric E. Schmidt Elizabeth B. Strickler U.S. Central Command $1,000,000–$1,999,999 Eric S. Schwartz Genentech – A Member of U.S. Department of the Navy Robert Bosch Stiftung Searle Freedom Trust The Roche Group David B. and Lynne Weinberg Carnegie Corporation of New York Skoll Global Threats Fund Pablo R. González Jiyi Weng The William and Flora Hewlett Alfred P. Sloan Foundation Google Inc. The World Bank Group Foundation Taipei Economic and Cultural The George Gund Foundation Xcoal Energy & Resources LEGO Foundation Representative Office in the Andrew Gundlach, Anna-Maria and Jerry Yang The John D. & Catherine T. United States Stephen Kellen Foundation Chi Zhang MacArthur Foundation The Urban Institute Heising-Simons Foundation Ezra K. Zilkha Government of Norway U.S. Department of the Treasury Antti Herlin, KONE Corporation David M. Rubenstein The Walton Family Foundation Pete Higgins $50,000–$99,999 Cheryl and Haim Saban Wellspring Philanthropic Fund Intel Corporation Anonymous (4) Leonard D. Schaeffer Tracy R. Wolstencroft Intesa Sanpaolo Accton Technology Corporation John L. Thornton Gail and Benjamin Jacobs All Nippon Airways Co., Ltd. $100,000–$249,999 Kenneth M. Jacobs Allen & Company LLC $500,000–$999,999 Embassy of Japan Anonymous (4) Asia Cloud Computing Association The Jenesis Group Anonymous Robert John Abernethy (ACCA) James A. Johnson Australian Government, Department Paul Achleitner and Deutsche Bank AT&T Philip Knight of Foreign Affairs & Trade AG Rahul Bajaj Kohlberg Kravis Roberts & Co. Daniel Berger Ahearn Family Foundation Banco de Sabadell S.A. Lenovo Group Limited Brevan Howard Mohammed Mahfoodh Alardhi Barr Foundation Frank P. Lowy Annie E. Casey Foundation Altman/Kazickas Foundation The Bates Family Foundation The Foundation Echidna Giving American Institutes for Research Lili Lynton Ford Foundation Australian Government, Department BP plc Robert Wood Johnson Foundation of Industry, Innovation & Science Howard Marks Bristol-Myers Squibb Foundation The Kresge Foundation Baidu Inc. Mars, Incorporated The Andrea and Charles Bronfman Liberty Mutual Group Barrick Gold Corporation The McKnight Foundation Robert C. Pozen and the Ashurst Anne T. and Robert M. Bass Microsoft Corporation California HealthCare Foundation Foundation Jane and Alan Batkin The MITRE Corporation Center for American Progress Christopher Rokos BlackRock Financial Management, Aditya Mittal The Civic Council of Greater State Farm Mutual Automobile Inc. Jaime J. Montealegre Kansas City Insurance Company The Brown Foundation, Inc. of Charles Stewart Mott Foundation The Clearing House Association A. Alfred Taubman* Houston Nan Ya Plastics Corporation, America Abby Joseph Cohen The Andrew H. and Ann R. Tisch Ambassador Paul L. Cejas Office of Director of National Cornerstone Macro Foundation Central Indiana Corporate Intelligence The Crown Family Turkish Industry and Business Partnership/BioCrossroads Open Society Foundations Alan and Lauren Dachs ˙ Association (TÜSIAD) Anla Cheng Pearson plc Deloitte LLP United Arab Emirates Cheniere Energy, Inc. PepsiCo Government of Denmark UnitedHealth Group, Inc. Chevron Richard Perry Deutsche Gesellschaft für University of Nevada, Las Vegas Sheldon M. Chumir Foundation for Victor Pinchuk Foundation Internationale Zusammenarbeit Antoine van Agtmael, Sunrise Ethics in Leadership Ploughshares Fund (GIZ) GmbH/Emerging Market Sustainability Dialogues (EMSD) Foundation Citi John G. Popp Programme/Economic Policy Forum W. Edmund Clark Pritzker Traubert Family Foundation (EPF) $250,000–$499,999 Betsy Z. Cohen Thomas C. Ramey and Perrin Ireland Discovery Capital Management Jonathan E. Colby Anonymous (3) Repsol Foundation Eberstadt Kuffner Fund Art Collins Alcoa Foundation Rio Tinto European Recovery Program (ERP), Laura and John Arnold Foundation The Council for the United States Charles W. Robinson* German Federal Ministry of Bank of America and Italy The Rockefeller Foundation Economic Affairs and Energy Richard C. Blum and the Honorable Howard Cox Christopher Rokos (BMWi) Dianne Feinstein The Nathan Cummings Foundation Robert E. Rubin European Union Paul Desmarais, Jr. Daimler Victoria and Roger Sant FedEx Corporation Exxon Mobil Corporation George A. David Peter L. Scher Fidelity Investments Deng Feng The Davis Foundation Gerald Schwartz and Heather Reisman Government of Finland FutureWei Technologies, Inc. Haluk Dinçer Securities Industry and Financial Bart Friedman and Wendy A. Stein The James Irvine Foundation Jian Ding Markets Association Garfield Foundation The Japan Foundation Center for Hanzade Dog˘an Boyner, Dog˘an Group Sequoia Capital China Advisors GE Foundation Global Partnership Ronald I. Dozoretz, M.D. Limited H&R Block

43 HONOR ROLL

William A. Haseltine $25,000–$49,999 Sharon S. Nazarian, Ph.D. Hitachi, Ltd. Henry L. Hillman Foundation Lisa O’Kelly ITOCHU International Inc. Anonymous (3) I Squared Capital The David and Lucile Packard Douglas M. Kaden AARP Jefferies, LLC Foundation Harold Kalishman Actagon AB Lou Anne King Jensen Point72 Asset Management Kanter Family Foundation ACTwireless Samer Khoury Raytheon Company Cassandra Kelly Yavuz Ahiska Michael Klein San Diego Regional Economic Shiv Khemka AIG Korea International Trade Association Development Corporation Lee Klingenstein Eileen A. Aptman (KITA) Sanofi US Robert and Arlene Kogod Aramco Services Company David Lichtenstein Sumitomo Mitsui Banking The Korea Foundation Arnhold Foundation Lockheed Martin Corporation Corporation Korea Institute for Defense Analyses Alexander R.M. Boyle and Elizabeth Dan W. Lufkin, Peter Jay Sharp Tata Group of Companies B. Roberts Jayne Koskinas Ted Giovanis Foundation Temasek Holdings Foundation for Health and Policy Martin Neil Baily Philip Mallinckrodt, The Schroder University of Chicago Samantha Lasry-Fleisher The Bank of Tokyo-Mitsubishi UFJ, Ltd. Foundation University of Toronto Toby Devan Lewis Crandall C. Bowles John Manley U.S. Department of the Air Force Linklaters LLP, on behalf of the McGraw-Hill Education Louis W. Cabot U.S. Department of the Army Advancing Good Governance in Medtronic, Inc. CAF-Development Bank of Visa Inc. International Development Seminar Latin America MetLife, Inc. Washington University in St. Louis LMI Government Consulting Cámara Colombiana de Informática y Mitsubishi Corporation (Americas) John Hazen White, Jr. Bertil P. Lundqvist Telecomunicaciones The Leo Model Foundation Michael L. Martell, Morrison Cohen LLP Central Intelligence Agency Ambrose Monell Foundation $10,000–$24,999 Edward and Dale Mathias H. Rodgin Cohen Moore Capital Management John P. McCormick Cummins Inc. Anonymous (2) Morgan Stanley Arjay Miller Department for International Aetna, Inc. The Morningstar Foundation Mary Miller Development, United Kingdom The Loreen Arbus Foundation Nihon Keizai Shimbun-sya (NIKKEI) Mitsui & Co. (U.S.A.), Inc. State of Delaware Astra Capital Management Noble Energy James J. Murren DLI North America, Inc. Ballmer Group Nomura Foundation NCTA - The Internet and Television Edith B. Everett Linda and Jim Beers Northern Trust Association Raj Fernando Franklin M. Berger Richard B. Nye Embassy of the Kingdom of the Embassy of France David K. Berler Ozan M. Ozkural Netherlands Mitzi and Cyrus Freidheim The Boeing Company Palantir Technologies NTT Corp. Funders’ Network for Smart Growth Anders Brag Gordon and Dailey Pattee Permanent Secretariat of the and Livable Communities, Inc. The Brodsky Family Foundation William Penn Foundation Community of Democracies GEICO Carter Cafritz Dina and George Perry The Peter G. Peterson Foundation Global Challenges Foundation Harvey Cherner Purdue Pharma L.P. Prudential Financial Inc. The William T. Grant Foundation Corning Incorporated Foundation Charles Rossotti Marian Puig The Hamzavi Foundation Susan Crown and William C. Kunkler III Frederic A. and Susan Rubinstein Steven Rattner and Maureen White Heinrich-Böll-Stiftung Arthur B. Culvahouse, Jr. Jonathan Schaffzin Joseph L. Rice III The Heinz Endowments The Curtis Family Foundation Michael L. Schler Stephen Robert Honda North America, Inc. Davis Polk & Wardwell, LLP Shimizu Corporation S&P Global Inc. Indra Porter Dawson John Shubin Rangu Salgame The International Fund for Laura A. DeFelice Stanley S. Shuman Dr. Fay L. Shutzer and William A. Agricultural Development (IFAD) Digital Trust Foundation Steven J. Simmons Shutzer Frank F. Islam Mr. and Mrs. Richard Elden Skoll Centre for Global Spencer Foundation Japan Bank for International Entrepreneurship Strobe Talbott Cooperation R.S. Evans Foundation Emily and Robert E. Smith Lynn Thoman and the Leon Ewing Marion Kauffman Foundation Drs. Riadh and Manal Fakhoury Sojitz Corporation of America Lowenstein Foundation Kaye Family Foundation Roger C. Faxon Karim A. Souaid Tides Center George Kellner Lawrence K. Fish Andrew P. Steffan Time Warner, Inc. Ned Lamont Victoria Foley Jeffrey and Susan Stern Ercument Tokat Jeffrey D. Lapin The Lee and Juliet Folger Fund Sumitomo Corporation of Americas Tudor Investment Corporation Sara Grootwassink Lewis David Friend Larry D. Thompson United Technologies Corporation Linden Trust for Conservation John L. Furth Toshiba America, Inc. USA Funds Amy Liu Gardner Grout Foundation Transurban Verizon Communications Marine Corps University General Motors Foundation Ranvir Trehan Wal-Mart Stores, Inc. Marubeni America Corporation Marilyn and Michael Glosserman Turner Foundation Jeffrey C. Walker Mitsubishi Heavy Industries Jeff Gore Marcus Wallenberg, Foundation Asset America, Inc. Brian L. and Myra S. Greenspun and UBATEC Management (FAM) Mario M. Morino the Greenspun Family Foundation John Usdan Claude Wasserstein Hashem Mubarak Patrick W. and Sheila Proby Gross Paul Verbinnen and Cecilia Greene Beatrice W. and Anthony Welters National Counterterrorism Center Agnes Gund Vitol Foundation The Ralph C. Wilson, Jr. Foundation National Institute for Health Care Teresa Heinz Kerry VOX Global Daniel H. Yergin and Angela Stent Management Research and Hellman Foundation Seymour and Kathleen Weingarten D.B. Zwirn Foundation Educational Foundation Loren W. Hershey Stephen M. Wolf

44 HONOR ROLL

Xerox Corporation Steven Bennett and Erin Loubier R. Kent Insley Nicholas Rugoff Rachel Zhang Steffi and Robert Berne John Jackson Mark E. Saadine Sarah Binder Robert K. Jackson Charles Savage $5,000–$9,999 Erik Blumenkranz Rahul Jaswa Henry Schacht Brockton B. Bosson Andrew Johnman Anya Schmemann and Eric Lohr Anonymous (3) Lisa Bradburn Adam Justin Stacy Schroeder Baker Donelson Evan Brewer Marvin Kalb Robert Schulz Alan Berube Michael Schwartz Bipartisan Policy Center Valerie T. Broadie Elaine Kamarck Search for Common Ground William M. Cameron Christian Prescott Buckson Mark N. Katz Naveen R. Shahani Sean Campbell Adem Bunkeddeko Hans Keithley Daniel Shefter Jacqueline Carter Theodore Bunzel Thomas L. Kempner Alvin Sherman Morris Clarke Richard C. Bush Douglas Kiessling Aaron Shutzer Everett R. Cook Paul Cadario Peter S. Kim Amanda Silver The Honorable Kenneth M. Duberstein Campbell Family Foundation Aaron Kinnari Nick Simmons Charles W. Duncan, Jr. Pam Chan Jennifer Klein Zachary Singer Brenda Earl Samuel Charap Morris M. Klein Colm Singleton Elinor K. Farquhar William B. Chism Bobby Koduvalil T. Otey Smith Frank and Kathy Finelli Kimberly Churches Emi Kolawole Marjorie H. Sonnenfeldt Florida International University Greg Clark Christopher S. Koza Benjamin Squires Nancy Folger Morton and Shirley Cohen Steve Lake Constanze Stelzenmüller Forum for the Future of Higher The Costa Family Trust Dan Henry Lee III Education Hanna Dameron Wayne P. Limberg Christopher Stover Ellen V. Futter Khurram Dara Michael Ling Helen Tigani Susan Gutfreund Cathy & Phil Davis Johannes Linn Greg Trotter Katherine Clark Harris Milo Dee Kin-ming Liu United Nations Industrial Cynthia R. Helms Nadia M. Diuk London School of Economics Development Organization Igluu LLC Miles Dickson Benjamin Luxenberg United Nations University Andrew Klaber Nick & Lynn Dragisic Aidan Madigan-Curtis U.S.-Russia Business Council Scott & Chelsea Kohler Courtney Dunakin Nicolas A. Martell Danielle Vetter Rebecca Liao Conor P. Durkin Daniel Martinez Economic Development Malcolm R. and Celia Lovell Emal Dusst Eduardo Martinez Partnership Bruce and Virginia MacLaury Spencer & Dulci Edge Camilla McFarland Paula Warrick The Markle Foundation Christine Edmonston Donald F. McHenry Darrell M. West Jeffrey Marlough Jessica Elledge Hugh Membrino Nicholas Whalen Allison Nathan Elliott Company of Indianapolis, Inc. MercyCorps Carol Wise National Rural Electric Cooperative Jared Elosta Cesare Merlini John Zacharias Association Anthony Elson Michel Mitri Jeffrey K. Zuttah Patricia Fabrikant Frederick Mulhauser Marie Ridder Richard Fawal Sakura Namioka Mustafa Shafi Riffat Allen Friedman Ann Beldecos Natale Cordel Robbin-Coker A. Lee Fritschler Omar Nazzal Jonathan M. Robins FSD Africa Neighborworks America Robert J.T. Rosenfeld Ann M. Fudge Robert C. Nurick Drew Ruben Toby and Charles Gati Kyle O’Hehir Sidney Stern Memorial Trust Helene Gayle Wayras Olivier Frederick Stavis Robert Gelfand Robert Orttung Paul and Chandler Tagliabue Elisa B. Glazer Ibrahim Onur Oz Margaret L. Tomlinson Global Development Network Bruce Parrott Josh S. Weston David B. Golder Richa Pathak Malcolm H. Wiener Joshua K. Goldman Jane G. Pepper Jeremy W. Goldstein Marc Peters Up to $4,999 Joshua Goldstein Steven Pifer Anonymous (16) Don and Ann Grundy PinnacleCare Elmore Alexander Marion Guggenheim Philip A. Piro III Abdulaziz Alnuaimi Julia S. Gurganus Samuel Plimpton Simone Aloisio Joseph H. Guttentag William Eric Pomeranz The AmazonSmile Foundation Sherif Hamid Elizabeth Pond *deceased Rian Amiton William A Hamler III Random House India Private Anders Aslund Michael Hansen Pavan Rangachar Brookings strives to be complete and Harley D. Balzer Stephen Hess Jason Richey accurate in recognizing the generous Melissa Bass Nancy Maisto Hewett Brian J. Rose support of our donors. We regret any omissions or errors. Scott Baxter Ellen Higgins Amy Rosenberg William Horton Beebe-Center Ray Hollmann Jon Rotenstreich

45 STATEMENT OF ACTIVITIES

Years Ended June 30, 2017 and 2016 (in thousands) Preliminary and Unaudited*

TEMPORARILY PERMANENTLY FY 2017 FY 2016 UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL

OPERATING ACTIVITIES Revenue and Support Investment return designated for operations $ 10,804 $ 4,538 — $ 15,342 $ 15,098 Grants, contracts, and contributions 8,244 84,178 4,422 96,844 90,539 Program services 420 — — 420 — Brookings Press 1,725 — — 1,725 1,715 Facility and other revenue, net 2,833 172 — 3,005 2,845 Net assts released from restrictions - Satisfaction of program restrictions 75,138 (75,138) — — — Total Operating Revenue 99,164 13,749 4,422 117,336 110,197

OPERATING EXPENSES Program Services Economic Studies 15,943 — — 15,943 15,683 Foreign Policy 15,335 — — 15,335 17,683 Global Economy and Development 12,105 — — 12,105 12,028 Governance Studies 7,327 — — 7,327 7,006 Metropolitan Policy Program 8,170 — — 8,170 10,056 Institutional Initiatives 9,560 — — 9,560 8,296 Brookings Press 2,545 — — 2,545 2,455 Communications 2,157 — — 2,157 2,622 Total Program Services 73,142 — 73,142 75,829 Supporting Services Management and General 21,254 — — 21,254 23,186 Fundraising 3,590 — — 3,590 3,395 Total Operating Expenses 97,986 — — 97,986 102,410 Net Operating Activity 1,178 13,749 4,422 19,350 7,787 Change in net assets before non-operating activities 1,178 13,749 4,422 19,350 7,787

NON-OPERATING ACTIVITIES Investment return in excess of amounts designated for operations Realized gain (loss) on sale of investments 4,763 3,536 — 8,299 11,734 Unrealized gain (loss) from investments 30,494 8,341 — 38,835 (12,882) Interest and dividends, net (331) 1,002 — 671 1,515 Investment return designated for operations (10,804) (4,538) — (15,342) (15,098) Total investment return (loss) in excess of amounts designated for operations 24,122 8,341 — 32,463 (14,731) Other Non-Operating Activities Loss on Bond Debt Refinancing — — — — — Total Non-Operating Activities 24,122 8,341 — 32,463 (14,731) Change in net assets before post-retirement related changes other than net periodic post-retirement benefit cost 25,300 22,090 4,422 51,813 (6,944) Post-retirement related changes other than net periodic post-retirement pension cost 367 — — 367 319 CHANGE IN NET ASSETS 25,667 22,090 4,422 52,180 (6,625) Net assets, Beginning of year 192,230 137,765 84,270 414,265 420,890 Net assets, End of year $ 217,897 $ 159,855 $ 88,692 $ 466,445 $ 414,265

46 STATEMENT OF FINANCIAL POSITION

Years Ended June 30, 2017 and 2016 (in thousands) Preliminary and Unaudited*

2017 TOTAL 2016 TOTAL

ASSETS Cash and cash equivalents $ 25,067 $ 21,176 Grants, contributions and accounts receivable, net 96,920 81,927 Investments — Endowment 346,419 311,060 Investments — Other 18,649 18,655 Property and equipment, net 34,924 37,315 Other assets 2,224 3,397 TOTAL ASSETS 524,203 473,530

LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued expenses 5,945 6,653 Notes payable, net 46,525 47,234 Accrued compensated leave 1,919 2,043 Accrued post-retirement benefit obligation 1,421 1,788 Deferred revenue 1,949 1,547

TOTAL LIABILITIES 57,759 59,265

NET ASSETS Unrestricted 217,897 192,230 Temporarily restricted 159,855 137,765 Permanently restricted 88,692 84,270 TOTAL NET ASSETS 466,444 414,265 TOTAL LIABILITIES AND NET ASSETS $ 524,203 $ 473,530

Operating Revenues Program Services Expenses

22% Economic Studies 13% Institutional Initiatives

84% 3% Gifts and Grants Communications 17% 3% Global Economy and Development Miscellaneous 3% 2% Publications Publications 10% 11% Governance Studies Endowment 21% Foreign Policy 11% Metropolitan Policy Program

Notes: As a nonprofit and scientific organization, Brookings is exempt from federal income taxes under section 501(c)(3) of the Internal Revenue Code. The Institution also qualifies as a publicly supported organization under section 170(b)(1)(A)(vi) of the code. Brookings's policy is to make an annual investment spending allocation for the support of operations. This amount is calculated 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 presentation.

*A copy of the Institution’s audited financial statements is available by visiting brookings.edu. 47 BY THE NUMBERS JULY 1, 2016—JUNE 30,2017

635,696 files downloaded from content on Brookings.edu % 49 one year increase in million Instagram followers 55 email newsletters delivered, driving 3.2 million sessions % to the website 41 books 30 one year published by the increase in LinkedIn Brookings Press followers

% 37 one year events increase in Facebook % attended followers 27 211 one year increase by 24,164 people; in Twitter followers 80 were webcast with 33,900 viewers

% Over 156 increase in average time on 75,000 page for visitors to new subscribers Brookings.edu 564,856 to Brookings unique page views newsletters for “The $110 billion arms deal to Saudi Arabia is ,” a blog post by Bruce Riedel

48 INTERIM VICE PRESIDENT FOR INSTITUTIONAL ADVANCEMENT: Valerie T. Broadie EDITOR: Robert Moore DESIGN AND PRINT PRODUCTION: MillerCox Design PRINTING: Schmitz Press COVER PHOTOGRAPHY: Holbox/Shutterstock

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