2008 Annual Report Contents Ideas for the Next President 6 10 14 Economic Global Economy Foreign Studies and Development Policy

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Opportunity 08 Ideas for the Next President

May 12, 2008—Washington, D.C.—Energy > February 28, Challenges for the Next President 2007—Opportunity 08: Opportunity 08 hosts Sen. Lamar Alexander Independent Ideas for Our for a discussion of energy issues facing the Next President Brookings next president. partners with ABC News to launch Opportunity 08, a December 5, 2007—Washington, D.C.—The project to help presidential Youth Vote Opportunity 08 joins with candidates and the public U niv er sity of Mia m i Harvard University’s Institute of Politics focus on critical issues to release findings of the Fall 2007 Youth facing the nation. sy of sy th e A lswang Survey on Politics and Public Service. t e Ralph Ralph May 22, 2008—Cleveland— r Cou

April 7, 2008—Miami—The Future > November 16, 2007—Las Vegas—National Security at Home and Abroad The Reforming Health Care: of the Military With the field of morning after the Democratic presidential candidates’ debate at the University Improving Quality, presidential contenders narrowed to of Nevada, an Opportunity 08 forum features national foreign policy experts and Controlling Costs, three, Opportunity 08 looks at the analysts. Expanding Coverage future of the U.S. military. Brookings and the October 17, 2007—Iowa City—Forum on Energy and National Security Cleveland Clinic host an September 18, 2007—Washington, Opportunity 08 joins the University of Iowa for a forum featuring leading policy Opportunity 08 forum on

> D.C.—Barack Obama The Tax Policy experts on biofuels and energy policy, the environment, and national security. reforming health care. Center and Opportunity 08 host Illinois Sen. Barack Obama for a speech on the economy, opportunity, and tax policy.

April 28, 2008—Washington, D.C.—Transportation and the Economy Opportunity 08 hosts Transportation Secretary Mary - D unlap

lswang A lswang Peters for a discussion of America’s transportation infrastructure. Ralph Ralph inda Edg e L inda

June 7, 2007—Washington, > January 11, 2008—South Carolina— December 3, 2007—Washington, D.C.—Better Direction on Main Street Brookings D.C.—The Future of Competitiveness: From Charleston to experts and a bipartisan panel of representatives from major campaigns discuss Political Communications— China Just a week before the state’s and define the policy issues that cut the widest swath across the majority of Connecting with Young Republican presidential primary, voters. Voters With the Internet Brookings hosts an Opportunity 08 rapidly transforming the forum with national economic policy September 26, 2007—Manchester, N.H.— > political communications experts and leading political analysts. The Budget Deficit and the Soaring Costs landscape, Opportunity 08 of Health Care Opportunity 08 joins Saint experts address how to June 26, 2008—Washington, D.C.— Anselm College for an Opportunity 08 forum engage with younger voters U.S. Foreign Policy and the 2008 on key domestic issues facing presidential in the upcoming election Presidential Campaign Sen. Chuck candidates in the New Hampshire primary. season. Hagel discusses U.S. foreign policy in D u r ity the context of the 2008 presidential thu r

Ar campaign. Opportunity 08 2008 Annual Report Contents Ideas for the Next President 6 10 14 Economic Global Economy Foreign Studies and Development Policy

Governance Metropolitan Support for Studies Policy Brookings 18 22 26

8 Health Care 3 Mission Statement 13 Competitiveness 4 Chairman’s Message 16 Energy Security 5 President’s Message 21 Education 30 International Advisory Council Printing: Jarboe Printing Cover Photograph: Randy Santos 24 Migration 34 Trustees 32 Strategic Plan 35 Honor Roll of Contributors Copyright ©2008 The Brookings Institution 33 Center for Executive 1775 Massachusetts Avenue, NW 38 Financial Summary Washington, DC 20036 Education Telephone: 202.797.6000 Fax: 202.797.6004 www.brookings.edu 40 Brookings Institution Press Library of Congress Card Number: 84-641502 Barack Obama unveils his proposals for a more equitable tax system at an Opportunity 08-Tax Policy Center event in September 2007. The Brookings Institution

Mission Statement Brookings’s mission is to conduct high-quality, independent research and, based on that research, to advance innovative, practical recommendations to advance three broad goals:

n Strengthen American democracy.

n Advance the economic and social welfare, security, and opportunity of all Americans.

n Secure a more open, safe, prosperous, and cooperative international system. A lswang

Ralph Ralph 3 CHAIRMAN’S MESSAGE

’ve always believed that in times of general adversity, strong institutions get stronger. Now is such a time, and Brookings is such an institution. In the same way that Brookings scholars helped America respond to the Great Depression and helped the world recover from World War II, we are working hard to Igenerate innovative and pragmatic ideas that set the agenda, shape the debate, and design effective policy responses for today’s challenges. We didn’t wait until what Strobe has called “the black September of the era of globalization” to focus on the burgeoning financial crisis. Back in December 2007, Brookings helped to put the looming recession at the center of the national agenda, taking full account of its international dimension. Trustee Larry Summers gave an influential speech at Brookings calling for a stimulus package made up of tax rebates for working-class Americans. Senior Fellows Doug Elmendorf, Jason Furman, Martin Baily, and Alice Rivlin weighed in as well, offering advice in a series of reports and appearances before Congress. Working quickly to gather ideas and form A lswang a consensus, Brookings convened a session

Ralph Ralph of leading economists to debate the plan and explained clearly its benefits and costs. The $150 billion stimulus package was passed by Congress in February—less than two months after it was proposed at Brookings. While the legislation helped foster almost 3 percent annual growth in the second quarter, it was clear to our experts that deeper problems lurked. Then—and now—experts across Brookings pooled their expertise to analyze the options facing the United States and the international community, advising senior officials, congressional leaders, and President-elect Obama’s transition team on how to approach the problem from both a short-term and long-term perspective. At the same time, Brookings engaged in a high order of multitasking on the issues that came to dominate the 2008 presidential contest. On energy security, education, health care, migration, and competitiveness, we marshaled our breadth and depth to ask the big questions and to find the right answers. All of this illustrates the strides we’ve made in fulfilling the Brookings strategic plan that the Board of Trustees adopted in 2007. Helping the nation and the world meet the challenges of today and tomorrow requires managing ourselves in a way that is ambitious, disciplined, and forward-looking. Even in an uncertain economic environment, we have the combination of discipline, commitment, and momentum necessary to keep us on track. Which gets me back to where I started: Precisely because there are so many questions and uncertainties, what Brookings has to offer is more essential now than ever. And this Institution would not be able to perform that service without the participation and support of our friends and trustees. So thanks … and on to the new administration!

John L. Thornton, Brookings Chairman 4 PRESIDENT’S MESSAGE

very year finds its own way of giving Brookings an opportunity to translate its motto— quality, independence, and impact—into events, projects, and publications. The past year was in a class by itself, with a historic election, the Enation embroiled in two wars, the planet—as Barack Obama said in his first statement as President-elect—“in peril” because of climate change, and a global financial crisis that started on Wall Street. Our signature project this year was Oppor- tunity 08, which focused contenders and voters on the major issues that Obama has cited. Beyond the Beltway, we organized programs in Iowa and New Hampshire and held Board of Trustees meetings—timed to candidate debates during the primaries—in Las Vegas and Charleston. Trustees—notably Ken Duberstein, Tom Donilon, and Brian Green- spun—contributed their insights and leadership to Opportunity 08 forums. As backdrop to the political campaign, the economy rapidly cascaded from troubled waters to the global maelstrom of the fall. Our aul aul Mo r igi

Economic Studies experts contributed substan- P tially to the design of the February 2008 stimulus package and provided recommendations to the administration and Congress, with Global Economy and Development experts, as the housing and credit crises deepened. A well-timed new arrival to the Brookings leadership team is Darrell West, a highly regarded political scientist and policy center director from Brown University who now heads up Governance Studies. “GS,” as we call it, got another big boost as our trustee, Ezra K. Zilkha, endowed a chair that is now held by Senior Fellow William Galston. “Governance”—a word that has been key to the Brookings vocabulary from our founding 92 years ago—is increasingly taking on a global dimension. Addressing the challenge of how to manage this unruly but interdependent world of ours involves all five research programs. For example, Metropolitan Policy, Foreign Policy, and Governance Studies joined Economic Studies and Global Economy and Development in tack- ling the question of how to reform international institutions to prevent something like the Great Meltdown of 2008. For this reason—and many others—we’re grateful that our International Advisory Council, now in its third year, has become an integral part of the Brookings family along with our Board and our many other friends and supporters. As you will see, the pages that follow highlight much more than impressive accomplishments, large numbers, and new names. The annual report for 2008 documents a remarkable year, one in which the Institution lived up to its legacy and is poised to fulfill its potential in response to the challenges and opportunities ahead.

Strobe Talbott, Brookings President 5 William G. Gale (center), vice president and director of Economic Studies, speaks on Main Street issues at an Opportunity 08 event as Senior Fellow Ron Haskins (right) listens. Economic Studies

hen turmoil in the financial markets began to shake the U.S. economy in late 2007, the Economic Studies program responded quickly and with major impact. Collabora- tion across the program produced a rapid- fire series of events, papers, opinion pieces, meetings, and congressional testimony that helped shape a bipartisan stimulus package Win time for effective delivery of rebate checks in the spring. Program experts also studied the regulatory roots of the housing crisis to begin to advise policy-makers on the harder and longer-term challenge of how to stabilize the market and avoid future crises. Brookings economists advised both the administration and Con- gress as the economic crisis escalated in fall 2008, especially on issues of credit, liquidity, and the housing market. During this economically difficult year, Economic Studies experts also produced new analyses and policy proposals ranging from tax changes to health care reform.

Stimulating the Economy The U.S. economic slowdown spurred Brookings experts to respond with practical policy advice grounded in solid research throughout the tumultuous year. The Hamilton Project, the Urban-Brookings Tax Policy Center, and the Initiative on Business and Public Policy coordinated some of the best and most influential thinking on the early economic distress signs. In December 2007, toward the beginning of the crisis, Brookings hosted speeches by Brookings Trustee and former Treasury Secretary Lawrence H. Summers and Sen. Charles Schumer of New York on the looming slowdown and subprime mortgage problems. Summers’s call for a “timely, temporary and targeted” stimulus was echoed in the media and across Capitol Hill. In January, the Hamilton Project hosted a discussion featuring Senior Fellows Jason Furman; Douglas Elmendorf, the Edward M. Bernstein Scholar; and Alice Rivlin, who were joined by former Treasury Secretary Robert Rubin, Harvard economist Martin Feldstein, and Moody’s economist Mark Zandi. Elmendorf and Furman released a strategy paper, “If, When, How: A Primer on Fiscal Stimulus,” at the event, and it quickly became a principal reference in the flurry of decision maker and public interest that followed. On January 24, the same day that the agreement between the congressional leadership and the White House was announced, the Tax Policy Center released the first distributional and

Sharon Sharon Farmer revenue effects of the competing stimulus packages. 7 Rebecca Blank outlines her plan for helping mothers disconnected from welfare and the workforce.

Elmendorf, Summers, and Greg takes the reins and the 111th Mankiw, the former chairman of Congress takes shape.” the Council of Economic Advis- Among the existing lineup ers under President George W. of Economic Studies experts Bush. It featured an outstanding are some new faces: lineup of papers and participants, Baily rejoined Brookings as a including Federal Reserve Chair- senior fellow in the fall of 2007. man Ben Bernanke, who spoke at After his first stint at Brookings,

g wan dinner the first night. Baily served as the chairman of Als President Clinton’s Council of a lp h

R Building a Best-in-Class Team Economic Advisers. Baily directs “I took on the leadership of this Brookings’s new Initiative on As the financial crisis deep- Baily hosted a breakfast event program with the primary goal Business and Public Policy. ened, Elmendorf and Senior Fel- with the British Embassy featur- of attracting a new generation Rebecca M. Blank, a highly lows Martin Neil Baily and Rob- ing the British Chancellor of the of top-tier economists who are regarded expert on social policy, ert Litan examined sources of the Exchequer, the Right Honorable capable of doing the very best joined Economic Studies in 2008 mortgage and broader credit prob- Alistair Darling. His presenta- research and who have an impact as the Robert S. Kerr Senior Fel- lems and evaluated appropriate tion focused on the need for the in the policy arena,” said William low. Blank was previously dean policy responses. They released International Monetary Fund G. Gale, vice president and direc- of the Gerald R. Ford School of a comprehensive analysis of the to develop better international tor of Economic Studies and the Public Policy and co-director of credit crisis at a public forum “early-warning systems” for finan- Arjay and Frances Fearing Miller the National Poverty Center at in May that included opening cial market problems. Chair in Federal Economic Policy. the University of Michigan. remarks from FDIC Chairman The Brookings Papers on “The scholarship and influence Sheila Bair. Economic Activity were presented of the current team will prove Health Care Policy To address the global ramifica- at a conference in April 2008 particularly vital over the coming The Engelberg Center for Health tions of the U.S. housing crisis, under the new editorial team of months as a new administration Care Reform is making major

Mark B. McClellan, director of the Engelberg Center for Health Care Reform and the Brookings Experts on Health Care Leonard D. Schaeffer Chair. Fellow Mark McClellan, the former Studies contributed cation to help plan head of the Food and Drug Admin- important policy rec- emergency vaccine istration and the Centers for Medi- ommendations and distributions. care and Medicaid Services, as its tools. Noted health The Global founding director. care expert Henry Economy and Devel- The Engelberg Center hosted Aaron tackled health opment program several well-attended events this spending and Medi- is studying innova- c hae ff er

year featuring experts from the pol- care, notably in a new c S tions in global health Ja t hur Dur it y icy, academic, advocacy, and pro- book with Jeanne financing that will be

A r Trustee Leonard Schaeffer and his vider communities. Former House Lambrew, Reforming wife, Pamela. fundamental in the rookings experts have a Speaker Newt Gingrich joined Medicare: Options, near future to facili- long tradition as leaders Congressional Budget Office Direc- Tradeoffs, and tate improving health in developing new health tor Peter Orszag and other distin- Opportunities (Brook- outcomes in develop- Bpolicy, helping spur inno- guished congressional panelists in ings, 2008). The ing countries. Their vations in the delivery of global a briefing on long-term care reform Center on Social and research on HIV/

vaccines, and in helping address that focused on opportunities to Economic Dynamics any AIDS treatment and outbreaks of infectious diseases. improve quality and address long- garnered recognition malaria prevention Moving to make the topic a term fiscal challenges. Another for work in infec- highlight the impor- focus of interdisciplinary work, forum addressed the key challenges tious disease policy tance of practical, on ure p P ict Com

Brookings established the Engel- and possible solutions regarding research, winning an st sustainable methods berg Center for Health Care Reform prescription drug safety. award for a modeling in combating these Char l e in 2007, with Brookings Senior Other research in Economic and simulation appli- Trustee Alfred Engelberg diseases. n 8 economic Studies

worked with New York City Mayor Michael Bloomberg and convened a group of top experts and city officials on poverty and how it is measured. The Retirement Security Project, led by William Gale, continued to develop and inform Britain’s Right Honorable common-sense reforms to Alistair Darling MP (left), improve the retirement income after delivering remarks on prospects of millions of Ameri- international coordination of financial events, walking with can workers. Elements of the Martin Baily (far right), British agenda were incorporated into Ambassador Sir Nigel Sheinwald g wan presidential campaign proposals and Congressional Budget Office Als Director Peter Orszag. and into bipartisan congressional a lp h

R legislation. strides thanks to the generos- consumer-directed health care. Tax and Fiscal Policy ity and vision of Trustees Alfred Joshua M. Epstein, direc- The Budgeting for National Pri- B. Engelberg and Leonard D. tor of the Center on Social and orities project led by Sawhill and Schaeffer. Under the direction of Economic Dynamics, was rec- Haskins flourished this year with former FDA Commissioner and ognized this year for his work on support and input from Trustees Medicare and Medicaid Admin- the Large-Scale Agent Model, Geoffrey T. Boisi and Leonard istrator Mark McClellan, who which is used for detailed track- Schaeffer and from Brook- holds the Leonard D. Schaeffer ing of epidemic dynamics and the ings Council members such as Director’s Chair in Health Policy, exploration of how public health Rob Marks and Ned Lamont. the center is working to promote policy interventions may slow the c e ll Through the Fiscal Wake-Up high-quality, innovative, and spread of contagious diseases and Tour, program experts have v en Pur t e affordable health care. chronic public health challenges. S engaged with audiences in more A public forum in June on The model won the 2008 Award Douglas W. Elmendorf (left) discusses the nation’s than 25 cities, reaching local infrastructure needs with Virginia Gov. Tim Kaine. prescription drug safety included for “Outstanding Achievement in elected officials and community an overview of current FDA regu- Modeling and Simulation” from leaders. Events in these cities lations and a review of technical, the National Training and Simu- to exceed their parents in income; have been covered by local radio, legal, and communications chal- lation Association. Epstein was black children in middle-class television, and newspapers. lenges that arise in this area. awarded a 2008 National Insti- homes do not. Both Rivlin and Sawhill Especially as baby boomers tutes of Health Director’s Pioneer Isaacs’s findings were included are featured on-camera in the start to retire, the Medicare pro- Award. in a new volume, “Getting Ahead feature-length documentary gram has come under scrutiny or Losing Ground: Economic I.O.U.S.A., which premiered at for its costs, coverage gaps, and From Mobility to Retirement Mobility in America.” Isabel V. the 2008 Sundance Film Festival bureaucratic rigidity. To help Brookings’s work on social policy Sawhill, senior fellow and the and opened at movie theaters guide the debate that will shape also had significant impact this Cabot Family Chair, wrote about nationwide in August. The movie much-needed reform, Senior year. The American dream is the tattered American dream and drives home the message that Fellow Henry J. Aaron, the not equally accessible for black Ron Haskins, senior fellow and America is facing a longer-term Bruce and Virginia MacLaury and white families, Fellow co-director with Sawhill of the financial problem. Chair, co-authored Reforming Julia B. Isaacs found in a study Center on Children and Fami- The Tax Policy Center, also Medicare: Options, Tradeoffs, and that received enormous media lies, released new information on co-directed by Gale, continued to Opportunities (Brookings, 2008). attention in November 2007. immigration and education. serve as a key source of informa- At an event in July, Aaron and Her intergenerational analysis Following publication of tion on tax policy, convening 11 co-author Jeanne M. Lambrew revealed a significant difference the next generation of anti- public policy symposia, offering were joined by advocates of the in the extent to which parents poverty policies in the Princeton- advice to Congress, and publish- three reform strategies outlined pass their economic advantages Brookings journal based on the ing more than 50 discussion in the book—strengthened social to their children. Children of The Future of Children sym- papers, policy briefs, and other insurance, premium choice, and middle-class white parents tend posium, Sawhill and Haskins commentaries. n 9 Global Economy and Development

s the world looks to China and other emerging powers to act as the engine for global recovery from a financial crisis that emanated from the United States and Europe, the established economic and financial order is being turned on its head. With America’s 44th president taking office at a moment of consequential global challenges that even the most powerful nations can- Anot resolve on their own, there is a clear need for leadership. But with U.S. financial turmoil reverberating against the backdrop of a profound global shift in economic power, America’s capacity and will to provide that leadership are less clear. It is across this complex horizon that Global Economy and Devel- opment, under the leadership of Lael Brainard, pursues innovative research and policy solutions to help both U.S. and global leaders adapt to the shifting landscape of an increasingly intertwined global economy. Restoring confidence in international capital markets and ensuring that the global economy’s benefits are broadly and widely shared will defy easy solutions, but are vital to the prosperity and stability of this new world. “In today’s environment, one of our core strengths at Global is having the combination of analytical insights and policy experience to turn headlines into actionable solutions to help navigate a new global economic order,” said Brainard, who directs Global and holds the Bernard L. Schwartz Chair in International Economics.

Strengthening America Economic Leadership for a Resilient Global Economy Against this new global economic backdrop and the political realities of a new U.S. presidential administration, restoring American economic leadership has become the most critical policy challenge. With the generous support of Bernard L. Schwartz, Brainard leads Brook- ings-wide research efforts on strengthening U.S. competitiveness. In testimony before Congress and in briefings to high-level policy-makers, Brainard emphasized the need to first start at home—strengthening the competitiveness of American workers in today’s super-charged global economy through new investments in infrastructure, green energy, education and training, and innovation, as well as creating a “new economy” safety net combining insurance with flexible training opportunities. New Senior Fellow Eswar Prasad (left) and Lael Finding solutions to the climate change crisis and weaning the Brainard, who directs the Global program and also holds the Bernard L. Schwartz Chair in A lswang world off a centuries-old dependence on carbon-based sources of International Economics, on a panel discussing a

energy will require a paradigm shift in how capital and technology Ralph blueprint for reforming India’s financial system. 10

global economy and development

Accommodating Rising Powers brought together academics and Brookings Global experts contin- policy-makers from Brazil and the ued to examine emerging econo- United States for a conference mies in detail this year and to to explore some of Brazil’s key provide insights and analysis into economic policy challenges and the countries and regions that are opportunities. revolutionizing the contours of The Wolfensohn Center the global economy, particularly for Development continued to as the financial crisis touches focus on the more than 100 mil- countries across the globe. lion young people between the

Mauricio Cárdenas, director of the Latin While China’s emergence ages of 15 and 29 in the Middle America Initiative (left), confers with Foreign as an economic powerhouse East—the largest proportion of Policy magazine’s Moises Naim during a has generated many benefits to youth in the region’s history— conversation on Colombia with President r me on Fa Alvaro Uribe. the world, it has also created and the opportunities that could

S ha r concerns among other major be leveraged by comprehensive countries when it comes to the and robust economic policies flow through the global economy. experts on multilateral institu- environment and climate change, to engage this youth bulge. Global Nonresident Senior Fel- tional governance led to a flurry currency issues, and trade. Senior Under the joint banner of the lows Warwick McKibbin and of media attention during the Fellow Wing Thye Woo, the New Wolfensohn Center for Develop- Peter Wilcoxen pioneered an past year, as global governance Century Chair in International ment and the Dubai School of innovative permit trading sys- structures—from the World Bank Trade and Economics, hosted the Government, with lead Fellows tem approach to climate change to the G8—came under review. inaugural China Update confer- Navtej Dhillon and Tarik Yousef, policy that was instrumental in Johannes Linn, executive direc- ence focusing on China’s integra- the Middle East Youth Initiative the Australian government’s deci- tor of the Wolfensohn Center for tion into the world economy with launched groundbreaking work sion to implement a far-reaching Development, and Colin Brad- David McCormick, undersecre- and promoted policy solutions cap-and-trade regime for carbon ford, nonresident senior fellow, tary of international affairs at the to engage youth in meaning- permits. Adele Morris, formerly continued their push for a more U.S. Department of Treasury. ful education and employment a senior economist with the Joint legitimate and effective G-20 The Indian economy has opportunities. Economic Committee, joined structure at heads of state level. fueled growth rates of more than Brookings to launch a new Cli- Domenico Lombardi, Ralph Bry- 8 percent in recent years, mak- Building a Road out of Poverty mate and Energy Economics ant, Leonardo Martinez-Diaz, and ing it one of the most successful In 2008, Global established the Initiative with McKibbin and Lex Rieffel contributed important emerging economies in the world. Africa Growth Initiative. With a Wilcoxen that will help inform analysis and recommendations In preparation for his first official grant of $5.8 million over three the coming congressional debate for reform of key multilateral eco- visit to India in October 2007, years by the Bill & Melinda over climate policy with rigorous nomic institutions. Global hosted U.S. Treasury Gates Foundation, the initiative economic modeling capabilities. The ongoing turmoil in the Secretary Henry Paulson for a will become the premier center In June, Global hosted more financial markets brought inter- private briefing on India. Barry in Washington for sustained than 70 stakeholders for a Climate national financial flows to the Bosworth, the Robert V. Roosa research on Africa’s economy. Change, Trade, and Competitive- forefront, with sovereign wealth Chair in International Econom- The research agenda will focus ness conference, led by Brainard. funds emerging out of the shad- ics, continued the tradition of on attaining sustainable economic The conference brought together ows as a potent new force within excellence with the India Policy development and eventual pros- leading experts to explore the ways global capital markets. Global Forum, convening the fourth con- perity in Africa in partnership in which climate change policies hosted a series of forums with ference in New Delhi, and issu- with institutions in the region. might interact with the trading key institutions to discuss the ing new research on such diverse Previous research by Dr. Ngozi system and how policy-makers issues related to transparency and economic issues as power reform, Okonjo-Iweala, a Global nonresi- might address the challenges. accountability of the funds as higher education, and the politi- dent senior fellow now manag- Meanwhile, Journalist-in- well as the promise and pitfalls of cal economy. ing director at the World Bank, Residence Paul Blustein offered involvement in financial rescues. Brazil’s economic future is helped inform the framework for sharp insights and analysis on the Global also welcomed a new again attracting avid interest from the new initiative. roller coaster efforts of the World senior fellow, Eswar Prasad, who investors, academics, and policy- The initiative expands on Trade Organization to conclude a brings deep expertise on financial makers. In April, Global Political Global’s work in the global devel- Doha Development Round. globalization in emerging econo- Economy Fellow Leonardo opment arena, which in the past Global’s deep bench of mies such as India and China. Martinez-Diaz and Brainard year included a number of high- 12 global economy and development

ing the previous year’s focus on shaping U.S. influence. While “Global Development 2.0”—the more than 40 years of foreign new era of global philanthropy. assistance have shown some suc- Held in Aspen, the roundtable cesses, U.S. programs remain featured pre-eminent leaders dispersed and incoherent. With including Nobel laureates Al that in mind, Brainard and Noam Former World Bank President and Brookings Trustee Gore and Dr. Steven Chu and Unger continued to lead Global’s James D. Wolfensohn (center) listens to global focused on the critical inter- U.S. foreign aid reform project.

perspectives on the U.S. financial crisis with Senior A lswang Fellows Johannes Linn (right) and Homi Kharas. twined crises of climate change With numerous appearances on

Ralph Ralph and global poverty. Capitol Hill, Brainard called for a The Global Health Initiative national strategy that elevates the level conferences and consulta- tility in aid flows as well as the issued a series of new research stature of development alongside tions. In the spring, Visiting Fel- emergence of a new set of donors papers on global health financ- defense and diplomacy. low William Easterly, a renowned ranging from China and Russia ing, while Cohen questioned the U.S. volunteers serving economist specializing in global to new private-sector actors. And conventional wisdom on malaria abroad represent another way development, and Jessica Cohen, Jacques van der Gaag and Sara prevention policies through inno- to help improve the lives of the development economics research Hommel expanded the work of vative randomized trials. She world’s poorest citizens. The fellow, hosted a conference at the Wolfensohn Center’s early also co-founded an NGO in East introduction of legislation by Brookings focused on what devel- childhood development project, Africa to evaluate cost-sharing Sens. Russ Feingold and Norm opment strategies have actually hosting a series of high-level policies versus distributing malar- Coleman inspired by Global’s worked. conferences. ial bed nets for free. Initiative on International Vol- The Wolfensohn Center In its fifth year, thanks to the The next U.S. administra- unteering and Service, led by for Development deepened its ongoing support of Trustee Rich- tion will have an opportunity Director David Caprara, was a research agenda on aid effective- ard C. Blum, the Brookings Blum to refashion the image America major step in building a national ness, led by Homi Kharas, who Roundtable on Global Poverty presents to the world, and for- consensus that volunteer service is putting the spotlight on the focused its agenda on climate eign assistance to poor countries is a key instrument of public challenges associated with vola- change and development, follow- remains a critical instrument in diplomacy. n

South Carolina Gov. Mark Sanford Brookings Experts on Competitiveness

ith emerging economies gram is undertaking a variety of opened the discussion on the con- and existing powers initiatives on strengthening U.S. straints in sufficient investment jostling for economic competitiveness. In testimony to of bridges, roads, airports, ports, Wdominance, America the Senate Finance Committee, and broadband systems—and raised must develop a sustained national Lael Brainard discussed America’s the question: Can we afford not to

agenda to remain vibrant. Brookings response to globalization through invest more? vid eo integrates the global debate with the lens of trade policies and rec- Focusing on broader economic what is occurring at home and in ommended changes in the Trade growth, The Hamilton Project U.S. competitiveness depends on the states and localities that drive Enforcement Act of 2007 to help tapped a wide range of experts to the success of its cities like Houston, our economy. This “all- America compete more generate innovative, cutting-edge, Charleston, Denver, and Philadelphia, Brookings” research on fairly in the growing and evidence-based policy ideas to say Bruce Katz and others from the competitiveness delves global marketplace. ensure that American workers and Metropolitan Policy Program. Having into such critical issues Brookings hosted firms remain competitive in the new launched a Blueprint for National as trade, worker adjust- the third Bernard L. global economy. In July 2008, for Prosperity this year, the program ment programs, educa- Schwartz Forum on instance, the project proposed a has outlined bold new federal tion policy, infrastruc- Competitiveness in national infrastructure strategy that policies in such areas of innovation, ture, and human capital fall 2007 to highlight calls for more efficient investments human capital, and transportation development. America’s failing infra- to expand access to the nation’s that draw on the economic potential The Global Economy structure. Former Iowa physical and telecommunications of our metropolitan areas to lever- and Development Pro- Bernard L. Schwartz Gov. Thomas Vilsack infrastructure. age national economic growth. n 13 Foreign Policy

he Foreign Policy program offered timely research, analysis, recommendations, and commentary on the world’s pressing international security challenges. In 2008, program experts significantly influenced both U.S. and international policies, not to mention the sub- stance of the U.S. presidential race. Brookings experts remained at the forefront of policy debates on Iraq and Afghanistan. Scholars balanced short-term realism Twith long-term aspirations on Arab-Israeli peace, averting Iran’s nuclear intentions, and the push for greater democracy within Arab nations. For- eign Policy’s experts helped make sense of the Russia-Georgia conflict, proposing measures to contain aggression and change the dynamic of confrontation between Russia and the international community. Directed by Vice President Carlos Pascual, Foreign Policy generated groundbreaking research and innovative policy approaches this year in four core areas: war, peace, and transition; relations with world powers; transnational challenges; and reforming U.S. and global institutions. Along with Senior Fellow Charles Ebinger, Pascual also helped develop a new Energy Security Initiative with ideas to stimulate efficiency, cut emissions, and strengthen American competitiveness (see Energy Security box, page 16). “Foreign Policy remained engaged with the changing pace of global challenges by offering research, analysis, and commentary on every major policy debate in an effort to guide the thinking of policy-makers and the U.S. presidential candidates,” said Pascual.

War, Peace, and Transition The Saban Center for Middle East Policy, directed by Martin Indyk, continued to promote a better understanding of the choices facing policy-makers in the United States, the Middle East, and in the Muslim world. Just weeks before the U.S.-sponsored Middle East conference in Annapolis in November 2007, the Saban Center held its fourth annual Saban Forum in Jerusalem. The Forum featured U.S. Secretary of State Condoleezza Rice, Israeli Prime Minister Ehud Olmert, King Abdullah of Jordan, former British Prime Minister Tony Blair, and Palestinian Authority Prime Minister Salam Fayyad. Opening its doors in February, the Brookings Doha Center under- took research on the socio-economic and geopolitical issues facing Muslim-majority states and communities, encouraging increased dialogue between policy-makers from the United States and the Muslim world. Timed with the U.S. presidential election, Brookings and the Coun- cil on Foreign Relations joined forces for the first time to develop a new

approach to Middle East policy. Spearheaded by the Saban Center, the Williams Tom 14 Carlos Pascual, vice president and director of Foreign Policy, testifies before a House Armed Services panel. (Random House, 2008). the next president. The Center discussion in February with for- Both Pollack and Senior Fel- on the United States and Europe mer Pakistan Army Chief of Staff low Michael O’Hanlon, the Syd- (CUSE), headed by Senior Fel- Gen. Jehangir Karamat, former ney Stein Jr. Chair in International low Daniel Benjamin, convened a Chief of U.S. Central Command Security, traveled to Iraq in June series of discussions on the U.S. Gen. Anthony Zinni, former U.S. 2008, publishing a fresh assess- and NATO missions in Afghani- Deputy Secretary of State Rich- ment of the challenges to stability stan. CUSE hosted NATO ard Armitage, and others. in magazine. Spear- Secretary General Jaap de Hoop Under the direction of Senior u l mo r i g Foreign Affairs a p Thérèse Delpech, director for Strategic Studies at headed by O’ Hanlon, the Iraq Scheffer to assess the effective- Fellow Peter W. Singer, the 21st the French Atomic Energy Commission, delivers the Index remains the most in-depth, ness of the International Security Century Defense Initiative con- Fifth Annual Raymond Aron Lecture. nonpartisan assessment of stabi- Assistance Force in Afghanistan. tinued to address critical issues lization efforts in Iraq. Its find- Pakistan also continued as a facing U.S. military commands in initiative, “Toward a New U.S.- ings appear regularly in the op-ed major policy challenge. Through this decade and beyond. Singer’s Middle East Strategy,” will serve pages of The New York Times. congressional testimony, publica- work has helped bring to light the as a nonpartisan blueprint for the Writing for Brookings’s Opportu- tions, and events, Senior Fellows role of private contractors in both incoming president and his team nity 08, Pascual outlined a strategy Stephen Cohen and Bruce Riedel the Abu Ghraib prison abuse scan- of foreign policy advisers. To put for political stabilization in Iraq. brought their considerable exper- dal and the Blackwater contro- policy guidance in a long-term This opinion was widely cited dur- tise to bear on managing political versy in Iraq, prompting Congress, strategic context, Senior Fellow ing the presidential campaign. transition and threat of terrorism. with Singer’s advice, to create the Ken Pollack authored an authori- More than six years after a Exploring the tribal tensions and country’s first-ever legislation on tative new book, A Path Out of U.S.-led invasion toppled the extremist influences in Pakistan’s oversight of private contractors. the Desert: A Grand Strategy for Taliban, Afghanistan remains a western region, Senior Fellow Brookings Senior Fellow America in the Middle East major foreign policy challenge for Philip Gordon hosted a policy Elizabeth Ferris continued her

Charles K. Ebinger, director of the Brookings Brookings Experts on Energy Security Energy Security Initiative. other stakeholders in much-needed From an economic perspec- Oil (McGraw Hill, 2007), which dialogue on a range of critical energy tive, experts in Global Economy explores the next administration’s issues. Briefings and public events and Development focus on supply options for breaking U.S. depen- included such high-level speakers disruptions and price spikes and dence on foreign sources of oil. In as James Connaughton, chairman, their effects on the U.S. and the June, an overflow crowd attended a ng

w White House Council on Environ- world energy markets. In June, the a conference hosted by Brookings A ls mental Quality; Yvo de Boer, execu- program held a con- and Google.org

ph Ral tive secretary of the United Nations ference that explored to assess electric Framework Convention on Climate ways in which climate vehicle technol- nergy security is one of Change; Mutsuyoshi Nishimura, spe- change policies might ogy, its potential the most important stra- cial adviser to the Japanese Cabinet interact with the to reduce U.S. oil tegic challenges facing on Climate Change, and Sen. Richard trading system. With dependence, and o gh Ethe United States and the Lugar of Indiana. experts that included kr the role of federal world. With its Energy Security Ini- To offer constructive input for William J. Antholis, policy in promot- peter tiative and other activities, Brook- the G8 Hokkaido Summit, as well Warwick McKibbin, Brookings Trustee Daniel Yergin ing this technol- ings is well positioned to tackle as future international climate and Peter Wilcoxen, ogy. Sandalow was energy in a comprehensive and negotiation processes, the new prospects were dis- joined by O’Hanlon integrated manner, guiding effec- initiative hosted a workshop on cli- cussed for heading and Antholis for tive, pragmatic policies to address mate change in Tokyo this year that off conflict between an Opportunity 08 U.S. and global energy security brought together approximately 30 carbon policies and forum on energy issues over the next decade. of the top climate and energy policy- trade rules. and national secu-

The Brookings Energy Security makers, analysts, and business lead- Senior Fellow a ng rity in Iowa City w

Initiative brings together a team of ers for a briefing and discussion on David Sandalow A ls in the countdown respected experts with policy-mak- the latest climate change research released a new book months to the Iowa ph Ral ers, industry leaders, journalists, and efforts undertaken at Brookings. titled Freedom from Sen. Richard Lugar of Indiana caucus. n 16 Secretary-General of the United Nations Ban foreign policy Ki-moon addresses foreign policy leaders in Berlin at a meeting convened by Brookings’s Managing Global Insecurity project. Chair in Foreign Policy, began (MGI) project conducted a series pathbreaking work on labor mar- of international consultations in kets, unemployment, and inequal- an effort to reform multilateral ity in Russia and Latin America. institutions and address 21st- century global challenges. An Transnational Challenges MGI gathering in Berlin this The United States and its allies summer featured Nobel Peace face a multitude of challenges Prize laureate Rajendra Pachauri, that cut across national borders, German Foreign Minister Frank- including energy security, global Walter Steinmeier, and U.N. warming, nuclear proliferation, Secretary-General Ban Ki-moon. and violent extremism. Brookings These respected international

i nger rch M a rc Da experts addressed these chal- figures endorsed MGI’s identi- lenges through in-depth research fication of “responsible sover- leadership as co-director of the The Center for Northeast and international dialogues, shap- eignty” as a key precept for a new Brookings-Bern Project on Inter- Asian Policy Studies (CNAPS), ing policy approaches within the international order, leading to a nal Displacement. With more than under the direction of Senior Fel- United States and beyond. Senior new “Plan for Action” released in 2 million Iraqis displaced by the low Richard Bush, the Michael Fellow Bruce Riedel completed fall 2008 and a major new book, ongoing conflict in their country, H. Armacost Chair, conducted a new book, The Search for Al Power and Responsibility, that Ferris developed recommenda- research and analysis to enhance Qaeda: Its Leadership, Ideology, can underpin the revitalization of tions to address the growing secu- policy development and under- and Future (Brookings, 2008), U.S. leadership on global security rity and humanitarian crisis within standing on the pressing political, which explores the world’s most and prosperity. Iraq and surrounding nations. Her economic, and security issues dangerous transnational terrorist recommendations served as the facing the Northeast Asia region. network and offers solid recom- basis for the Recovery and Stabil- CNAPS visiting fellows—this year mendations for confronting this ity of Iraq Act of 2008. from China, Hong Kong, Japan, global challenge. Korea, Russia, and Taiwan—con- In February 2008, Brookings Relations with World Powers ducted in-depth research on such launched the “Index of State With the success of the 2008 Bei- topics as the change of political Weakness in the Developing jing Olympics, China continued leadership in Taiwan, the six-party World.” The Index ranks 141 its emergence as an economic and negotiations on North Korea’s developing nations according to political force. Directed by Senior nuclear weapons program, and the their relative performance in four a ng Fellow Jeffrey Bader, the John L. emergence of new political leader- critical areas: economic, political, w U.S. Defense Secretary Robert Gates (left) and Thornton China Center continued ship in Japan. security, and social welfare. A ls Brookings President Strobe Talbott at a Board dinner at the Newseum. to address both the internal and CUSE oversaw a broad Addressing the links between ph Ral international challenges associated agenda focusing on relations energy security and climate with China’s stunning growth. between the United States and change, Senior Fellow David Senior Fellow Ivo Daalder Senior Fellows Cheng Li, Wing its European allies. CUSE’s Fron- Sandalow released a new book, completed a major study on Thye Woo, and Geng Xiao and tiers of Europe project explored Freedom from Oil (McGraw Hill, U.S. national security advisers China Energy Fellow Erica Downs the impacts of possible European 2007), which explores the next and their role in shaping U.S. authored a number of important expansion to include Turkey, administration’s options for break- foreign policy. Based on hun- policy analyses that focused on Ukraine, and the countries of ing U.S. dependence on foreign dreds of primary interviews, the China’s future as a world power the Caucasus and West Balkans. sources of oil. In June, an over- study (co-authored with I.M. and on the country’s changing Cuba faced major political tran- flow crowd attended a conference Destler) examined the evolution political and economic landscape. sition in the past year as long-time hosted by Brookings and Google. of the role of national security In its first full year of opera- leader Fidel Castro ceded authority org to assess electric vehicle adviser—from McGeorge Bundy tion, the Brookings-Tsinghua to his brother Raul. Pascual and technology. Keynote speakers to Stephen Hadley. The study Center brought together experts Visiting Fellow Vicki Huddleston included Sen. Lamar Alexander concludes that the national secu- from the United States and continued a two-year project to and Rep. John Dingell. rity adviser is more important and China in collaborative work to improve U.S. policy to support the powerful than ever and suggests increase the understanding of aspirations of Cubans seeking a Reforming Institutions ways in which the next adviser China’s growing influence on the representative democracy. Carol Under the leadership of Pascual, can enhance prospects for U.S. world stage. Graham, the Charles W. Robinson the Managing Global Insecurity foreign policy success. n 17 Darrell West (center), vice president and director of Governance Studies, with Pietro S. Nivola (right) and William Galston (left), who became the first Brookings expert to hold the Ezra K. Zilkha Chair in Governance Studies. Zilkha is pictured on the far left and Trustee Victoria P. Sant is at far right. Governance Studies

rom John McCain’s stunning comeback in the Repub- lican field to Barack Obama’s surprising triumph over Hillary Clinton, the independent voices of Governance Studies experts rung out repeatedly during one of the longest and most extraordinary presidential campaigns in recent memory. The program hit its stride during the general election as McCain faced off against Obama in a historic campaign. Overall, our experts contributed Fabout 70 commentaries, 350 media appearances, and a best-selling book to commemorate a major transition in Washington. Change was also the mantra inside the program as Governance Studies built stronger capacity in research and advocacy, endowed a scholar chair, and recruited a new director. After more than four years of stewardship, Pietro S. Nivola stepped down as vice president and director of Governance Studies to resume full time his role as the Douglas Dillon Chair in Governmental Studies. His successor is Darrell West, who left Brown University following 26 years of teaching and research to help Governance Studies develop an ambitious, competitive agenda to address gridlock in American government. “Governance Studies lured me with first-rate scholars committed to improving American democracy and our political system,” West said. “Without well-functioning government and legal institutions, this country will lose its respected position among other nations which have long emulated our constitution and the findings of our courts. The work at Brookings is heard among the people who can make a difference.” In West, Brookings found a top-tier academic with a real sense of how politics works. At Brown, West served as the director of the Taub- man Center for Public Policy and as a professor of public policy and political science. He received high marks from an impressive range of politicians, academics, journalists, and funders. A major highlight of the year occurred in June when William Galston became the first Brookings expert to hold the Ezra K. Zilkha Chair in Governance Studies. The Zilkha Chair will tackle some of the hardest questions in the area of political and institutional reform. To mark the occasion, Brookings hosted a speech by U.S. Supreme Court Justice Stephen Breyer on international governance and American law.

A Political System Challenged The program’s signature project this year was Red and Blue Nation—a A lswang project that involved nearly every Governance Studies expert in the

Ralph Ralph exploration of the causes and consequences of partisan polarization. 19 governance studies

Conducted in collaboration which politically diverse views How exactly does one go with the Hoover Institution at were aired on topics ranging about being the president of Stanford, the three-year study from the rise of the conservative the United States? Senior Fel- gained a wide audience. Nivola legal movement and religion and low Emeritus Stephen Hess, a teamed with David W. Brady, the swing voter to prosecutorial y schwab renowned presidential scholar,

deputy director and senior fellow misconduct and abuse and terror- H illa r wrote a workbook to guide the at Hoover to edit Red and Blue ists and detainees. Governance Benjamin Wittes, research director in Public Law. president-elect through the early Nation? Volume II, which built Studies experts also participated thicket of decisions. What Do on the first volume (Brookings, in major cross-Brookings collab- media, including a June 4 piece We Do Now? (Brookings, 2008) 2006), and was released at the orative activities, including eight that explained how Obama had became widely cited in the days height of the presidential primary Governance Studies experts who run the first true campaign of leading up to the election. and caucus season. contributed to Brookings’s Oppor- the 21st century. In addition to “Are we at the dawn, as it’s tunity 08 project. regular election updates and cita- Congress: The Broken Branch? being said, of a post-partisan age? This proved a record year tions in the U.S. media, Senior Narrow majorities in both cham- Trust me, we’re not,” Nivola told for analyses and commentary on Fellow Thomas Mann, W. Averell bers of the 110th Congress participants at a Brookings event general politics. Visiting Fellow Harriman Chair in American meant filibusters in the Senate, on Feb. 15 to release the book. Michael McDonald set a pattern Governance, conducted speak- tangling over recess appoint- “The partisan divide is deep. It for Web editorials on Jan. 9 with ing tours in Australia, Russia, ments, and considerable frustra- will become keener as the general “Collapsible Candidates from China, Singapore, Japan, and tion over what did not happen: election progresses. The chasm Iowa to New Hampshire,” a piece Italy. Throughout the primary immigration reform, a disengage- between the party philosophies of that explained the swiftly chang- and caucus season, Senior Fellow ment from Iraq, and a permanent the two—of the Democrats and ing dynamic of the presidential E.J. Dionne continued to appear fix for the Alternative Minimum Republicans—is especially deep election. Galston followed with regularly on national television Tax (AMT) for starters. Offering in the area of foreign policy.” several other thought-provoking and radio programs “This Week,” previews and assessments, Senior Governance Studies held commentaries for the Internet “Meet the Press,” and “All Things Fellows Mann and Sarah Binder more than 30 events this year, at that were often cited in the Considered.” joined with American Enterprise Institute resident scholar Nor- man Ornstein twice to put this Congress, and its record, in perspective. According to the indicators charted by Mann and Binder in January, this Congress aimed lower and achieved more of its explicit legislative objectives than did the 1995 Republican Congress. Mann and Binder’s indicators, published on the opinion page of The New York Times, showed that the new Congress in 2007 was more productive in terms of the number and nature of serious pieces of legislation signed into law.

Justice and Law Governance Studies broadened its field into constitutional law Thomas Mann moderates a panel with Senior and executive powers in the Fellow Alice Rivlin on the financial bailout administration of counterterror- package after the House of Representatives first ism efforts. The commentary of voted to reject it, sending shockwaves through the markets. Fellow and Research Director aul aul Mo r igi

P in Public Law Benjamin Wittes 20 governance studies

recent years reveals deep fissures in the political system that hin- der the ability to make long-term policy decisions in the public interest. America’s electoral and governing institutions are not performing at a level commen- surate with the challenges of our time. Issues from health care, trade, and climate change to immigration, education, and the Barack Obama talks with Senior Fellow E.J. Dionne deficit require urgent action. As after an Opportunity 08-Tax Policy Center event. A lswang a result, the program has begun

Ralph Ralph a new initiative led by Darrell West to improve our political published in The New Republic In mid-June, the program and American law at an event to system. and The Washington Post provided capped its Judicial Issues Forum inaugurate the new Zilkha chair; Three themes guide this proj- new insights on Congress’s Guan- series with a briefing on U.S. Wittes also released his new ect: the need for better coopera- tanamo dilemma and on the reau- Supreme Court rulings during book, Law and the Long War: The tion between branches and across thorization of the Foreign Intel- its 2007–2008 term. Moderated Future of Justice in the Age of Ter- parties, the necessity of decisive ligence Surveillance Act (FISA). by Wittes, the panel included ror (Penguin Press, 2008), at a leadership and coalition-building, After the Supreme Court issued Nonresident Senior Fellow Stuart Brookings panel discussion. and efforts at improved civic and its Guantanamo opinion in June, Taylor Jr. among other experts. media discourse. The project Wittes urged Congress and the Earlier that week, U.S. Supreme Looking Forward: aims to propose concrete actions executive branch to enact a com- Court Justice Stephen Breyer The Democracy Project to better the functioning of Amer- prehensive legislative solution. spoke on international governance Governance Studies’s work in ican democracy. n

Joseph R. Biden Jr. speaks at an Opportunity 08 Brookings Experts on Education event in Reno on education.

ith the American edu- procedures, and achievement gaps Brown Chair in Educational Studies, cation system lagging among racial and ethnic groups, will remain as a senior fellow focus- behind other advanced among others. The seventh edi- ing on education. Windustrial nations, tion of the Brown Center Report Extending beyond the K–12 book- interdisciplinary research drawn on American Education, released in ends, experts at the Center on Chil- A lswang from across Brookings is critical to December 2007, noted the connec- dren and Families study the role of finding long-term solutions. And the tion between national math scores education in economic opportunity Ralph stakes couldn’t be higher: Experts and the amount of time students and mobility and ways to mobilize And globally, the Wolfensohn Center have long recognized that the politi- spend learning mathematics in dif- the community to help students for Development has a burgeoning cal and economic well- ferent countries. Grover achieve. Rebecca Blank, who joined research agenda on early childhood being of any democracy J. “Russ” Whitehurst, the Economic Studies Program this development in poor countries. requires a well-educated currently director of year as the Robert S. Kerr senior One area where experts already citizenry. the Institute of Educa- fellow, is examining how the exter- have gained traction is with invest- The Brown Center tion Sciences in the U.S. nal environment around schools ments in early education. Isabel on Education Policy Department of Educa- affects the outcome of its students. Sawhill and Nonresident Senior examines the prob- t ion tion, will succeed Tom At home, the Metropolitan Fellow Jens Ludwig have proposed lems of the American Loveless as director of Policy Program’s Blueprint for “Success by Ten”—a program education system: the the Brown Center on American Prosperity Initiative is designed to help every child achieve impact of curriculums, Education in January examining the pressing need to bet- success in school by age 10—which academic standards and 2009. Loveless, the ter prepare many young adults in has been included in several lists of

Russ Whitehurst n t rtme o f . E d uca D e pa . S

accountability, testing U Herman and George R. urban centers for higher learning. congressional policy priorities. n 21 Metropolitan Policy

hrough its innovative Blueprint for American Pros- perity initiative, the Metropolitan Policy Program this year put forth ideas that resonated in the 2008 election debate and—more importantly—developed proposals for the federal decision making that now lies ahead. Both Sens. John McCain and Barack Obama embraced some of Metro’s recommendations in key regions. A new administration and a Tnew Congress in 2009 give the program a wonderful opportunity to “bubble up” the kinds of state, metropolitan, and local innovations that Metropolitan Policy Program experts have been advancing for the past decade. “Our work on the American economy shows that the top 100 metropolitan areas, home to two-thirds of our population, concentrate and focus the economic power of the nation,” said Bruce Katz, vice president and founding director of the Metro program and the Adeline M. and Alfred I. Johnson Chair in Urban and Metropolitan Policy. “Metro areas generate three-quarters of our GDP and garner the lion’s share of such assets as innovation, human capital, infrastructure, and quality places. They should be central to federal policy.” The Minneapolis bridge collapse in August 2007 tragically under- scored the perilous state of the nation’s physical infrastructure. The Metro program is informing next-generation thinking on federal transportation reform by highlighting effective efforts in the states and metropolitan areas. Likewise, the program’s work on integrating housing, transportation, land use, and energy policies under a holistic framework is influencing the climate change debate, as 43 percent of greenhouse gas emissions emanate from the built environment.

Blueprint for American Prosperity One year out from the 2008 elections, hundreds of people came to Brookings for the launch of the Blueprint for American Prosperity and many more watched the presentations on a live Web cast. The Blueprint offered a powerful and compelling argument at an important point in history: The ability of the United States to compete globally and to meet the great economic, environmental, and social challenges of the 21st century rests largely on the health, vitality, and prosperity of the nation’s major cities and metropolitan areas. To achieve those goals, the Blueprint argues that wholesale federal o o itan reform is necessary—breaking down the walls between anachronis- tic programs so that the national government is pulling in the same

direction as the metropolitan regions that house the vast majority of Stephen O. B 22 Bruce Katz, vice president and director of the Metropolitan Policy Program, illuminates the 100 top metropolitan areas as the economic engines of the nation at the launch of the new Brookings Blueprint for American Prosperity. 23 metropolitan policy

American residents and provide arguing for, among other things, the nation’s jobs, innovations, and a National Innovation Founda- up at the Washington Hilton for ideas. tion, shrinking America’s carbon the largest Brookings event ever. As summarized by Seattle footprint, and new directions Unusual too was that most of the Mayor Greg Nickels in an op-ed, on transportation policy. The speakers were not Washington the Blueprint is “about making series also contained reports on experts. The many faces at the deliberate, conscious choices the demographic and political podium included governors, may- a t r

to chart our future. We want dynamics under way in 10 “bat- s ors, county executives, and other a genuine partnership and the tleground” states, starting with representatives of what Bruce

flexibility to make the right deci- Pennsylvania, that were crucial in Dyk Lynn Katz called the “Metro Nation.” sions, a partnership that allows deciding the 2008 election. Co- Deputy Director Amy Liu Economist Michael Porter us to make headway on our authored by Senior Fellow Wil- told the large gathering that “as challenges.” liam Frey and Visiting Fellow Ruy of the fastest population growth we look at the U.S. economy, The first Blueprint publica- Teixeira, the series represented a and economic and demographic what we have come to under- tion unveiled at the launch and timely collaboration between the transition anywhere in the stand is there is no U.S. economy. authored by Fellow Alan Berube, Metropolitan Policy Program and country. Instead there are hundreds of the Metro Program’s research Governance Studies. A network of nearly 100 part- metropolitan economies. Each of director, demonstrated how the Generating substantial media ners from 30 metropolitan areas, them is different. Each of them top 100 metropolitan areas drive coverage, specific policy papers including local elected officials, has different clusters … which and dominate the American delved into regional challenges university leaders, and metro- have allowed for high productiv- economy. The report received in the Great Lakes and the inter- politan business alliances have ity. In fact, if you think about it, substantial media coverage and mountain west. Papers illustrated hosted dozens of presentations of almost everything that matters for stimulated local editorials on the the economic benefits of integrat- the Blueprint in areas as diverse competitiveness is not federal— need to incorporate metro con- ing the Canadian and American as Chicago, Dallas, Harrisburg, it’s local.” cerns during the 2008 presiden- economies in the Great Lakes and Seattle. Along those very lines, a tial election. region and explored how Arizona, In June 2008, at the two-day major policy-framing paper, A Blueprint Policy Series, Colorado, Nevada, New Mexico, Summit for American Prosperity, authored by the program’s policy initiated in April, released papers and Utah are experiencing some over a thousand people showed director, Mark Muro, presented

Brookings Experts on Migration

borders raises new policy issues in research on Darfur, Colombia, the Brookings budget analysts are con- both wealthy countries and in the Democratic Republic of the Congo, ducting landmark research on the developing world. and other displacement situations cost-benefit analysis of immigrant Research at Brookings includes provides a unique humanitarian and families in the communities and Audrey Singer takes audience questions on why the presidential candidates were not work in the Metropolitan Policy Pro- human rights perspective on crises states. talking about immigration. gram on the demographic, social, that are too often seen only in stra- Other projects at Brookings rm e r n Sha ro Fa and economic trends affecting U.S. tegic or national policy engage in research cities and metropolitan areas. Senior dimensions. Other on trade and global rookings’s work on migra- Fellows Audrey Singer and William experts in Foreign Pol- labor markets and tion, one of the most Frey have become leading experts icy are examining the European integration. salient issues both in on the new “gateway” cities and implications of Muslims’ Governance Studies Bglobal and American how race and immigration shape the increasing presence in experts are increas- politics, bridges the Institution’s modern-day electorate. Their work Europe. ingly examining the expertise in domestic and foreign is widely read and cited by Republi- Cutting-edge com- political ramifications policy across political and economic can and Democratic leaders. puter modeling in Eco- of a changing America, issues. Immigration became a cen- In Foreign Policy, the Brookings- nomic Studies exam- including foreshadow-

tral topic for both parties during the Bern Project on Internal Displace- ines migration trends rm e r n Sha ro Fa ing key trends in the Elizabeth Ferris, co-director of 110th Congress. Globally, the unprec- ment operates under the auspices and the ramifications the Brookings-Bern Project on 2008 election and edented movement of people across of the United Nations. Their of natural disasters. Internal Displacement. beyond. n 24 metropolitan policy

a 21st-century vision of federal- ism that identified domestic policy areas where the federal government should take charge on global economic and environmental challenges. The paper also outlined where the next administration needs to empower metropolitan areas to drive sustainable growth and sustained prosperity. Blueprint recommendations gained bipartisan support prior a t r to the election. Sens. Barack s Bruce Katz addresses more than 1,000 people at Obama and John McCain joined the Summit for American Prosperity.

the program’s call for support Dyk Lynn of Great Lakes restoration as a critical step in strengthening the with a network of political, envi- Singer have become two of the this year on several critical Midwest’s economy. Sens. Susan ronmental, and business leaders at nation’s most-noted experts on areas, including the need for Collins and Hillary Clinton intro- the federal and metropolitan lev- dynamic demographic changes. strengthened community college duced a bill that encompasses els. One initiative goal is to adapt Singer co-authored an impor- programs in the District and a the Blueprint’s recommenda- for U.S. policy consideration the tant book on the shifting pat- review of socio-demographic and tions on cluster-led economic innovative transportation policies terns of immigrant settlement, economic changes among the development and the creation of and infrastructure investments Twenty-First-Century Gateways: District’s population since 2000. a National Innovation Founda- found around the globe. Immigrant Incorporation in Sub- State and regional efforts tion. In June, Obama spoke at In a well-cited report released urban America (Brookings, 2008), across the country produced sev- the nonpartisan U.S. Conference at the Blueprint summit in June, which revealed how the current eral standouts. In Pennsylvania, of Mayors meeting in Miami and Puentes wrote that physical influx of immigrants is chang- the program is now in its fifth mentioned Brookings by name, neglect, congestion, and environ- ing the U.S. landscape. She also year of working with such part- stressing the enhanced role that mental degradation now seriously worked with scholars throughout ners as the Campaign to Renew metropolitan areas need to play in compromise the efficiency of a the Institution to design a new Pennsylvania to advance state the national economy. network crucial to the national “all-Brookings” migration initiative efforts to address government On the state level, the Metro interest, with a price tag esti- (see box, page 24). fragmentation and to ensure program continues to promote mated in the hundreds of bil- Visiting Fellow Christopher B. the fiscal sustainability of local strategic thinking by governors lions. It presented a new vision Leinberger’s review of real estate municipalities. Policy recom- and legislatures in adapting for national transportation policy development trends shed light on mendations in the 2006 report to 21st-century realities. For that focuses on strategic infra- the presence of walkable urban on charting Maine’s future have instance, the program convened structure investment, metropoli- neighborhoods in U.S. cities and been advanced through a series nearly 1,000 people in Columbus, tan area empowerment, and state suburbs that encourage more foot of bond referenda and legislative Ohio this year to develop a state reforms. traffic and fewer cars. His field and administrative actions. agenda for restoring prosperity to survey of 30 metropolitan areas, In summer 2008, the Metro the Buckeye State. Framing a Metropolitan America accompanied by his new book, program launched a TransAtlantic The Metro program provides The Option of Urbanism: Invest- Policy Series to identify policy Metropolitan Infrastructure important context and framework ing in an American Dream (Island innovations at the European Initiative Launched for decision making. The pro- Press, 2007), colorfully illustrated Union, nation-state, and local lev- In fall 2007, Fellow Robert gram’s Census-based analysis of the rise of walkable urban neigh- els in Europe that could be use- Puentes headed a new infrastruc- U.S. demographic trends remains borhoods, especially around rail ful to U.S. policy-makers. New ture initiative to address the press- the only effort of its kind, provid- transit lines. TransAtlantic Fellow Julie Wag- ing transportation and infrastruc- ing up-to-date perspectives on ner, based in Milan, conducted a ture challenges facing U.S. cities the demographic, economic, and At Home and Abroad “scan” of European examples of and suburbs. This work, supported cultural forces remaking neigh- Brookings Greater Washington reforms and initiatives that might by the Rockefeller and Surdna borhoods, cities, and metropolitan Research, led by Senior Fellow offer guideposts for the Blueprint foundations, is closely coordinated areas. William Frey and Audrey Alice Rivlin, conducted research initiative. n 25 Linda Steckley, vice president of development, and Trustee Michael L. Tipsord converse with Trustee Lawrence Summers and William Gale, vice president and director of Economic Studies, at a Brookings Board meeting. Support for Brookings Donors Invest in Quality Research

urvey after survey has ranked Brookings first for providing research of the highest quality, independence, and impact. This year more than 200 Brook- ings fellows on domestic and global matters generated landmark achievements in public policy. The generous support of corporate, foundation, and individual donors enabled Brookings to meet the financial needs of an increasingly expansive Sand ambitious research agenda. Operating expenses have increased over the past few years. So, too, have the support and engagement of donors. With many opportunities for scholar dialogue—at events throughout the country and at public and private events at Brookings headquarters in Washington—Brookings’s benefactors can discuss and analyze the pressing issues of the day with the nation’s leading policy experts. These constructive exchanges between experts and philanthropists strengthen Brookings’s work by grounding it in real-world experience and give its donors seasoned insights into global dilemmas and the policy prescriptions to deal with them. Thanks to the generosity of numerous individuals, corporations, and foundations, Brookings continues to be the nation’s leading think tank.

Council Members Get First Look at Research The business and community leaders who comprise the Brookings Council had many opportunities this year to engage with some of the best public policy minds in the world today, as well as with each other. The rigorous, nonpartisan research that Brookings experts present at Council events is especially important in an age when partisan politics dominate. The 2008 Brookings Council’s New York forum, for instance, met on the theme of “Beyond the Election: Challenges for a New Presi- dent.” Coming on the heels of Super Tuesday, E.J. Dionne Jr., a senior fellow and a syndicated columnist, gave an overview of the presidential campaign and moderated a panel of Brookings experts on issues at the forefront of the 2008 election: the Middle East, energy and the environment, and health policy. Council members actively participated in the forum, challenging experts and offering their own informed responses. The Brookings Council event calendar for 2007–2008 offered more than a dozen opportunities for interaction with experts. In October A lswang 2007 alone, breakfasts in Washington, D.C., Boston, and New York

Ralph Ralph offered insights on the dynamics of change among China, Japan, and 27 Support for Brookings

Welcoming New Trustees the United States; the jihad- ist threat; and global poverty. A uring the 2007–2008 year, spring breakfast in New York with Dthe Brookings Board of Trust- Senior Fellow Tom Mann gave ees elected 11 new members to members an insider’s view of the its ranks. The Board is composed election campaign. of the nation’s foremost business Brookings Council members executives, academics, commu- are essential partners in the nity leaders, and former govern- advancement of independent pub- ment officials, as well as leaders lic policy research. The Brookings in international business. The endowment generates approxi- Board, which meets three times mately 15 percent of Brookings’s a year, helps govern the busi- operating budget, with the remain- ness affairs of the Institution, ing 85 percent coming from the A lswang

approves the fields of scholarly generous support of donors. As Ralph investigation, and safeguards the Brookings’s leading benefactors, Trustee Shirley Ann Jackson at the May Board meeting. independence of the Institution’s the Council provides the resources work. Brookings is proud to wel- that enable the Institution to fulfill come its newest members to the its critical mission of independent Board of Trustees: research and innovative policy Abby Joseph Cohen solutions. President, Global Markets Institute and Senior Investment Strategist Goldman, Sachs & Co. Companies Join Corporate Council Paul Desmarais, Jr. Chairman and CEO More than 75 companies joined Power Corporation of Canada the Brookings Corporate Council Herbert M. Kaplan last year, giving them a robust Chairman and CEO schedule of events, scholar dis- Warren Equities cussions, and publications on a Richard Kauffman wide range of pressing domestic A lswang Chief Executive Officer Good Energies and international topics. Mem- Ralph bership provides corporations the Trustee Glenn Hutchins and International Advisory Council Member Kazuo Furukawa confer at an IAC meeting. Nemir A. Kirdar Founder, Executive Chairman and knowledge they need to do busi- structive engagement with its CEO ness in a rapidly changing world neighbor to the south and stron- Investcorp and to anticipate the policies that ger hemispheric relations. With Philip H. Knight shape company strategies. additional support from other Chairman Nike, Inc. The financial support that leading companies, individual these companies gave to Brook- donors, and philanthropic foun- Charles O. Prince Retired Chairman and CEO ings provided indispensable dations, the Initiative is poised Citigroup, Inc. resources to carry out research al to have a strong impact on the Sheryl K. Sandberg and formulate policy ideas. next administration’s approach to Chief Operating Officer Among the many companies that hemispheric relations. Facebook

supported Brookings in 2008, y Libert M utu Hitachi, Ltd.’s major support Michael L. Tipsord several stand out for the generos- of for Brookings’s work on energy Vice Chairman, Chief Financial sy Officer and Treasurer ity and foresight of their gifts. and climate change included a ourte State Farm Insurance Companies Liberty Mutual Group C substantive collaboration in the made a substantial multiyear Thomas C. Ramey, executive vice president area of projected technologi- John W. Wilhelm of Liberty Mutual. President, Hospitality Industry gift to Brookings, which helped cal developments with Hitachi’s UNITE HERE establish the new Latin Amer- research branch, the Hitachi Daniel B. Zwirn ica Initiative and its flagship analyzing current political, eco- Research Institute. Leading up Managing Partner DB Zwirn & Co., LLC endeavor, the Partnership for the nomic, and social trends between to the G8 Summit in July 2008, Americas Commission—a group the United States and Latin Brookings and the research insti- of acknowledged experts that is America to encourage more con- tute used a large-scale computer 28 Key decision makers including government, policy, and corporate leaders from the United States, Japan, and other G8 nations participated. Citigroup’s major support helped Brookings pursue independent research on key regions throughout the world and on a variety of domestic and international economic issues. As a leading global company, Citigroup A lswang is interested in a wide range of u l M ori g i a Ralph Ralph issues, from financial markets P Trustee Ann M. Fudge to the rise of China to emerging Betsy Biern, associate vice president for development, converses with Senior Fellow Daniel Benjamin prior to an event on the future of the European Union. economies worldwide. By supporting the Institution as a whole, model of the global economy to Citigroup helps make sure that erous support of the private foun- The Robert Wood Johnson evaluate the economic impacts of Brookings experts can tackle a dations that sustain the Institu- Foundation made an $8.7 mil- a range of proposals to deal with broad research agenda focused on tion’s research agenda. With more lion grant to support the work of climate change. The project cul- the most pressing issues facing than $24.5 million in new grants the Engelberg Center for Health minated in a high-level workshop corporate decision makers across in 2008, private foundations Care Reform. Under the leader- in Tokyo that provided a forum the world. provided critical resources for ship of Mark McClellan, this for discussion on the key find- projects across all of Brookings’s grant funds development of a ings of the research and major Foundations Help Sustain programs. Several major founda- strategy for the Quality Alliance challenges for reaching an inter- Quality Research tions made particularly notewor- Steering Committee, which seeks national agreement on climate. Brookings is grateful for the gen- thy contributions last year. ways to achieve high-value health

Board Meets in Nevada, South Carolina

ust as the United States guests had an opportunity to attend was entering intensive a live viewing of the Democratic phases of one of the most presidential debate at the University Jexciting and consequential of Nevada, Las Vegas. The morning presidential races ever, Brook- after the debate, Brookings helped ings held “outside the Beltway” host an Opportunity 08 forum Board meetings in Las Vegas, Nev. featuring national foreign policy (November 2007), and Charleston, experts and political analysts. Brookings’s Opportunity 08 forum in Las Vegas with S.C. (January 2008). Trustees also had foreign policy experts.

Both cities provided an opportunity to view VI deo venues for the Brook- the Metropolitan Policy ings Board of Trustees Program’s impact on economy, inhabitants, and politics “Competitiveness: From Charleston to view politics in how cities and regions more and more central to the nation. to China.” South Carolina Gov. Mark action at a crucial time are governed. Most of The Charleston meeting focused Sanford opened the forum. Trustees in our nation’s history— the Las Vegas meeting on migration as well as competitive- also gathered for a private recep- and to see the role that focused on the Metro ness and trade, issues vital to South tion at the home of John and Mar- Brookings is playing in program’s Intermoun- Carolina. The morning after the garet Thornton, and had dinner in shaping the nation’s tain West project and its South Carolina GOP debate, and a Charleston’s Old Exchange building, future. increasing importance week before the state’s Republican one of the most historically signifi- During the Las A lswang as more people move presidential primary, Brookings held cant Colonial buildings in the United Trustee Brian L. Greenspun

Vegas Board meeting, Ralph to the area, making its an Opportunity 08 forum titled States. n 29

International Advisory Council

U.S. Treasury Secretary Henry Paulson discusses the financial situation at an IAC meeting. care through better information and quality improvement. The John D. and Catherine T. MacArthur Foundation has long been one of Brookings’s most important and generous donors. In addition to a $500,000 grant to the Managing Global Insecurity project that Brookings is running jointly with New York Univer- sity and Stanford University, the MacArthur Foundation pledged $7 million to support the Met- ropolitan Policy Program. This generous award includes $2 mil- A lswang lion in operating support as well

Ralph Ralph as a $5 million institutional grant that creates an endowment for he International Advisory Council (IAC) was established to help Brookings create a meaningful dialogue the program and helps leverage with international business leaders, extend its outreach and relevance to other countries, and increase additional funds. This grant dem- its ability to inform the American public and policy-makers about perceptions in other parts of the onstrates not only our shared com- Tworld. mitment to improving the nation’s Representing 21 countries on six continents, IAC members provide invaluable advice and support for Brook- metropolitan areas, but also the ings as it becomes an increasingly global think tank. They offer their diverse perspectives on developments in Foundation’s leadership in the their regions along with candid insights into how America and its policies are received. philanthropic community. The IAC held its annual meeting from May 4–6 in Washington, with a focus on the upcoming presidential The Bill & Melinda Gates election and the economy—and its implications for national policy, international security, development, and the Foundation also made a chal- environment. Members engaged in a focused set of conversations with Brookings experts, senior staff, and trust- lenge grant last year supporting a ees. Speakers included Treasury Secretary Henry M. Paulson Jr., Secretary of Defense Robert M. Gates, former joint venture between Brookings Treasury Secretary and Brookings Trustee Lawrence H. Summers, and the chief Washington correspondent for and The Urban Institute. The ABC News, George Stephanopoulos. “Opportunity Fund,” established by the Tax Policy Center, will International Advisory Council Members Anne Lauvergeon, CEO, AREVA Group, France receive one dollar for every three Antoine van Agtmael, Chairman & CIO, Emerging Frank Lowy, Chairman, Westfield Holdings, Australia dollars contributed to the Fund, Markets Management, LLC and Chairman of Philip Mallinckrodt, Global Head of Corporate up to $2.5 million, which will the IAC Development, Schroders, PLC, U.K. enable the Center to conduct Roger Agnelli, CEO, Vale, Brazil Jaime Javier Montealegre, President, Sigma research on tax issues looming for Mukesh Ambani, Chairman, Reliance Industries, India Management SA, Costa Rica American policy-makers, citizens, Rahul Bajaj, Chairman, Bajaj Auto Limited, India Katsuhiro Nakagawa, Vice Chairman, Toyota Motor and businesses. James Balsillie, Co-CEO, Research in Motion, Canada Corporation, Japan The Gates Foundation also Antony Burgmans, BurGo B.V., Former Chairman, Hutham S. Olayan, President & CEO, Olayan America made nearly $2 million in grants Unilever, The Netherlands Corporation, Saudi Arabia to the Metropolitan Policy Pro- Gustavo A. Cisneros, Chairman & CEO, Cisneros Group Victor Pinchuk, Founder, Interpipe Group, Ukraine gram for work on New Orleans of Companies, Venezuela Marco Tronchetti Provera, Chairman, Pirelli S.p.A., Italy and the Gulf Coast in the after- Ricardo Claro, Chairman, Compañía Sud Americana de Itamar Rabinovich, Israel math of Hurricane Katrina, and to Vapores, Chile Wanda Rapaczynski, Former Chairman & President, advance the Blueprint for Ameri- Hanzade Do˘gan, Vice President of Strategic Planning, Agora, Poland can Prosperity, as members of the Do˘gan Yayın Holdings, Turkey Nathaniel Rothschild, Co-Chairman, Atticus Capital, Metropolitan Leadership Council. Victor Fung, Chairman, Li & Fung Limited, Hong Kong U.K. Kazuo Furukawa, President & CEO, Hitachi, Ltd., Japan Tokyo Sexwale, Chairperson, Mvelaphanda Holdings & Brookings Experts Lead Sheikh Hamad Bin Jassim Bin Jabr Al-Thani, Prime Mvelaphanda Resources, South Africa Study Tour to India Minister & Minister of Foreign Affairs, Qatar Marcus Wallenberg, Chairman, Skandinaviska Enskilda For two weeks—from Feb. 15 to Nemir Kirdar, President & CEO, Investcorp, U.K. Banken AB, Sweden March 1, 2008—a delegation of 30 During a reception for the Brookings group, Prime Minister Support for Brookings Manmohan Singh greets Strobe Talbott, Liaquat Ahamed, and Steven A. Denning at his residence in Delhi. of In di a

n me t Gover En route, the group held agency that is hard at work on t h e

of panel discussions on various an unmanned moon mission. aspects of Indian life, from the The Brookings delega-

divi s io n Indian economy to the role of tion enjoyed a wide-ranging India’s lively, opinionated, often conversation with the current rambunctious, and constantly prime minister, Dr. Manmohan t h e ph oto

of proliferating media. For sight- Singh, at his sprawling official sy sy seeing, the travelers rode in col- residence in central New Delhi. ourte

C orfully festooned rickshaws and The prime minister said his horse-drawn carriages, and— country was conducting “the 49 Brookings Trustees, Council to keep a venerable tradition world’s greatest experiment in members, friends, scholars, and alive—on elephants. democracy, since never before staff traveled more than 3,000 Every city showcased India’s have 1 billion people chosen to miles around India. The Study booming economy. In Mumbai govern themselves.” For that to Tour was led by President Strobe and Bangalore, the Study Tour succeed, he added, India must Talbott, Senior Fellows Bruce Rie- got a close look at several Indian improve the lives of its poor. del and Stephen Cohen, and Vice companies that represent dif- As for U.S.-India ties, the President Carlos Pascual. After ferent aspects of the country’s Brookings group heard an spending several days in Mumbai astonishing economic progress, enthusiastic confirmation of A lswang (often called “Maximum City”), including the Tata Group, Bajaj the generally positive assess-

Ralph Ralph the Brookings travelers moved Auto, and Reliance Industries ment they had gotten from Nick Trustees Suzanne Nora Johnson and Alan R. Batkin on to Bangalore, Delhi, Udaipur, Limited. In Bangalore, travelers Burns, former U.S. undersec- mingle at a reception at the home of John and Margaret Thornton at the winter Board meeting in and then back to Delhi for official saw the India Space Research retary of state, before departing Charleston, S.C. meetings during the last week. Organization, a governmental on the trip. n

Trustee Ezra Zilkha and U.S. Supreme Court Ezra Zilkha Endows New Chair Justice Stephen Breyer exchange greetings.

zra Zilkha has been a Fellow William Galston will be com- founded by his father, leader of our Board of mitted, as are Zilkha and Brookings Khedouri Aboudi Zilkha, Trustees for more than 25 institutionally, to the nonpartisan- in Baghdad in 1899. Eyears and a guiding force in ship and civility of public discourse. Building on that legacy, Brookings’s growth as it approaches This Chair will serve to strengthen Zilkha’s own career its second century. “We are all American democracy by examining spanned stints in Egypt, grateful, privileged, and honored and evaluating its political institu- Japan, Europe, and the that Ezra has chosen to invest in tions and, when appropriate, making United States. It high- the Institution’s future through the recommendations for reform. lights his perspective as A lswang

endowment of a chair,” said Strobe The Chair was announced at a a citizen of the world. Ralph Talbott in announcing the Ezra K. Brookings event on June 24 that Zilkha feels that we Zilkha Chair in Governance Studies featured a keynote address from have “never had a more uncertain And at times like these Brookings in June. “As the inaugural holder U.S. Supreme Court Justice Stephen time than the present.” In discuss- has an ever-more important role to of the Zilkha Chair,” added Talbott, Breyer, who spoke on the challenges ing his motivation in establishing play because it can be at the fore- “Bill Galston represents the high and opportunities that international the Chair, he commented: “Above front of change.” standards, intellectual distinction, governance poses for American all we lack leadership in the world, Creating the Chair was Ezra and personal integrity worthy of the public law. The public event was and I wonder if new and vigorous Zilkha’s way of thanking Brookings donor.” followed by a private luncheon that leadership would help us now. The for the quarter century of his “sat- The Ezra K. Zilkha Chair in Gov- honored both Zilkha and Galston. problems are enormously varied isfactions” with the Institution and, ernance Studies will tackle some of Ezra Zilkha is the president of and very much interconnected. more importantly, will enable Zilkha, the hardest questions in the area Zilkha & Sons Inc., a private invest- The world is a much more compli- through Brookings, to have a con- of political and institutional reform. ment company in New York that cated place, but complications can structive impact on making Ameri- As the holder of the Chair, Senior succeeded the original banking firm develop opportunities for change. can democracy work better. n 31

Complex Challenges Shape Strategic Plan

t the beginning Beyond those five “All-Brookings range of policy options, including of what would be Priorities,” the strategic plan estab- issue-focused town-hall meetings in called “the Ameri- lished a flexible internal manage- the early battleground states of Iowa, can Century,” in the ment system that allowed us to New Hampshire, South Carolina, midst of a world at work across research programs and and Nevada, and general election war and in economic disciplines on topical crises. From battleground states such as Ohio and Aturmoil, Robert Brookings concluded responding to the growing mortgage Florida. Led by a bipartisan advisory that rigorous thinking and inde- and credit crisis that threatens the council headed by co-chairs Ken Du- pendent, disciplined research were entire economy, to launching a new berstein and Tom Donilon, the effort essential to governing a modern, Latin America Initiative, to envision- reached out to candidates and policy industrial democracy. The Institution ing integrated and multi-dimensional advisers from both political parties. he helped create aimed at educat- work on the nation’s infrastructure That effort will transition this year ing U.S. policy-makers and informed challenges, Brookings experts cre- into a unified effort to provide our citizens in how to address complex ated research products where the best thinking to the president-elect. challenges. With the dawn of the 21st whole was greater than the sum of Increasing our impact also means century, Brookings’s mission is more the parts. reaching out more proactively, both important than ever—both in the The strategic planning process ambitious effort in this regard was nationally and globally. Brookings was United States and around the globe. also forged a consensus among our Opportunity 08—an All-Brookings the most widely quoted think tank in scholars, our staff, and outreach project that actually began the United States again this year, and our trustees that main- in 2007. The 2008 elections offered created new partnerships with ABC taining the Institution’s an exciting opportunity to shape News, Politico, and Caijing magazine. core virtues—quality, inde- the debate around key policy is- Our increasing global reach was seen pendence, and impact— sues, particularly since this election in the early results of our redesigned requires disciplined man- featured a historic anomaly: Neither Web site (brookings.edu), which has agement and leadership. party’s primary featured an incum- increased page views to 1 million With that in mind, 2008 bent president or vice president, per month. Subscriptions to our 24 was a year of reflecting on something that had not happened e-newsletters jumped 85 percent Alice Rivlin, Brookings past success and plotting in 80 years. Opportunity 08 aimed over the past year, and approximately On market crisis the course ahead. to help presidential candidates and 25 percent of Web site visitors come To maintain our qual- the public focus on critical issues from outside of the United States, As Brookings approaches its cen- ity, we intend to remain focused on facing the nation, providing ideas, from countries as diverse as India, tenary, we are committed to ensuring retaining and recruiting the very best policy forums, and information on a China, and Germany. that America’s most experienced, experts. Best-in-class recruits such as broad range of domestic and foreign Maintaining independence is most trusted, and most influential Vice President Darrell West and Se- policy questions. For over 20 months, also critical to our mission. Accord- think tank rises to the economic and nior Fellows Rebecca Blank, Mauricio scholars from across Brookings ing to an annual poll by Harris Inter- national security crises of our own Cárdenas, and Eswar Prasad all bring worked together to develop posi- active, Brookings is the most trusted time. Drawing on input from Brook- extraordinary expertise to Brook- tion papers and candidate indices think tank in America, winning ings’s leadership, staff, trustees, and ings at a time of great change in the on more than three dozen topics. extremely high marks from both Re- friends of the Institution, the Brook- makeup of American political and Brookings hosted forums on the full publicans and Democrats. Fostering ings Board approved a strategic economic institutions. For instance, and maintaining that plan in 2007 for what the Institution Mauricio Cárdenas will direct the new independence requires should do—and be—by our 100th Latin America Initiative, managed financial support from birthday in 2016. jointly by the Global Economy and donors who understand The agenda for our tenth decade Development and Foreign Policy what’s at stake, both is built on the foundation of our programs. Already it’s a hub of high for Brookings and the research programs, each of which quality, interdisciplinary research, world. With annual stands at the top of its field. The with an extraordinary commission to giving on the rise and strategic plan also identified five advise on fresh recommendations on an engaged Board of particularly pressing challenges fac- how the next president can engage Trustees, we are poised ing the nation and world that cannot Latin America. to offer a new genera-

be addressed by any one research To increase our impact, we are y K nudson tion of policy-makers

program alone: competitiveness, seeking to inform policy-makers P egg the trusted facts and education, energy security, health more directly—and in a way that Dominic Barton (left), chairman of the Asia region for McKinsey & fresh ideas that Robert Company, confers with Foreign Policy Vice President and Director care, and migration (see stories demonstrates the depth and breadth Carlos Pascual (right) and Trustee Richard Kauffman during a Foreign Brookings recognized pages 8, 13, 16, 21, 24). of the Institution. Perhaps our most Policy Program Leadership Committee meeting. as critical in 1916. n 32 Center for Executive Education

primary mis- agers from the government and sion of Brook- private industry to spend up to ings is to impact one year working in congressional policy-makers offices to develop relationships and thought lead- and knowledge that will endure ers. One way this throughout their careers. mission is being carried out is “The Legis program experience throughA the Brookings Center for has allowed me to work directly Executive Education (BCEE), on U.S. trade policy issues— which presents the research and my own area of expertise—and recommendations of Brookings also branch out into issues like experts directly to a diverse audi- defense and foreign policy,” said ence of public- and private-sector Miguel Hernandez, Department executives. of Commerce, who spent his “Our programs give our schol- fellowship in the office of Sen. ars an opportunity to share their Barbara Boxer of California. “I work with new audiences,” said worked with people I typically Terry Goodwin, senior director never encountered at Commerce of BCEE. “We have provided and came away from this experi- hundreds of briefings to inform ence understanding my own field the front-line executives who so much better,” he said. run America’s industries and Federal managers who sign up government agencies and play for BCEE programs are awarded an increasingly important global a Certificate in Public Leader- role.” ship after completing a total of 20 This year alone, Brookings course days at Brookings. More experts from all five research pro- than 200 government executives grams spoke at BCEE courses— aspiring to join the ranks of the a total of 73 times. When the Senior Executive Service are cur- Department of Defense’s Joint rently pursuing this credential Warfare Analysis Center asked from Brookings. BCEE to craft a custom course New executive education on strategic thinking for its com- offerings this year include one- manders and division heads, day workshops on Creative Lead- Senior Fellow Peter Singer was ership and Women’s Leadership. tapped to co-direct the program Within the BCEE curricu- with the BCEE staff. Singer, who lum, there are many innovative is director of the 21st Century opportunities for participants Defense Initiative at Brookings, to question ideas and absorb gained an opportunity to put his new information. At “Food For cutting-edge research in front Thought” dinners, attendees dine A Brookings group enjoys a private tour of the U.S. Capitol with former Rep. Jim Moody of of his target audience: the com- in small groups at tables hosted Wisconsin.

manders and division heads who by Brookings experts, allowing P eter K rogh shape defense policy. them to spend a couple of hours Executives from more than discussing policy ideas in detail. sessions create better executives? completed her Certificate in 175 companies and federal gov- Guests can discuss the econom- There is clear evidence that it Public Leadership this year. She ernment agencies—from Boeing ics of marriage with Senior Fellow does. In February 2008, 20 per- said, “Brookings satisfied my and Caterpillar to the National Isabel V. Sawhill, a co-director cent of the 333 Presidential Rank need for intellectual engagement Institutes of Health and the of the Center on Children and Awards given by President George and learning from others. They Social Security Administration— Families, or quiz Tamara Cofman W. Bush for exceptional govern- really push you to think in ways participate in BCEE courses each Wittes, senior fellow in Foreign ment service went to alumni of that you wouldn’t normally. I was year. And the Legis Congressional Policy studies, on Hezbollah. BCEE programs. stunned by the caliber of people Fellowship program allows man- So, does attendance at BCEE Barbara Kakiris from NASA who lead the programs.” n 33 TRUSTEES

John L. Thornton Brian L. Greenspun Laura D’Andrea Tyson Cyrus F. Freidheim Jr. Robert S. McNamara Chair of the Board Chairman and CEO Professor President and CEO Former President The Brookings Institution The Greenspun Corporation Haas School of Business Sun-Times Media Group, Inc. The World Bank University of California, Berkeley Strobe Talbott Glenn Hutchins Henry Louis Gates Jr., Ph.D. Arjay Miller President Founder and Managing Partner Antoine W. van Agtmael Director Dean Emeritus The Brookings Institution Silver Lake Partners Chairman and CIO W.E.B. Du Bois Institute Stanford Graduate School of Business Emerging Markets Management, LLC Harvard University Robert J. Abernethy Joel Z. Hyatt Mario M. Morino President CEO Beatrice W. Welters Robert D. Haas Chairman American Standard Development Current Media, LLC Founder Chairman of the Board Venture Philanthropy Partners Co., Inc. The An-Bryce Foundation Levi Strauss & Co. Shirley Ann Jackson Ph.D. Maconda Brown O’Connor Ph.D. Liaquat Ahamed President John W. Wilhelm Lee H. Hamilton Trustee Former Chief Executive Officer Rensselaer Polytechnic Institute President, Hospitality Industry President and Director The Brown Foundation, Inc. Fischer Francis Trees and Watts, Inc. UNITE HERE The Woodrow Wilson Kenneth M. Jacobs International Center for Scholars Frank H. Pearl Alan R. Batkin Deputy Chairman Daniel Yergin Chairman and CEO Vice Chairman Lazard Frères & Co. LLC Chairman William A. Haseltine Ph.D. Perseus, LLC Eton Park Capital Management Cambridge Energy Research Associates President Suzanne Nora Johnson The Haseltine Foundation Samuel Pisar Ph.D. Richard C. Blum Senior Director, Retired Vice Chairman Daniel B. Zwirn Chairman International Lawyer Chairman and President The Goldman Sachs Group, Inc. Managing Partner Haseltine Global Health, LLC New York and Paris Blum Capital Partners, LP DB Zwirn & Co., LLC Richard Kauffman Teresa Heinz John Edward Porter Geoffrey T. Boisi Chief Executive Officer Chairman Partner Chairman and Senior Partner Good Energies HONORARY TRUSTEES Heinz Family Philanthropies Hogan & Hartson Roundtable Investment Partners LLC Nemir Kirdar Leonard Abramson F. Warren Hellman Steven Rattner Abby Joseph Cohen Founder, Executive Chairman and Consultant and Member of the Chairman Managing Principal President, Global Markets Institute CEO Boards of Directors of Hellman and Friedman LLC Quadrangle Group LLC and Senior Investment Strategist Investcorp Children’s Hospital of Philadelphia J. Woodward Redmond Goldman, Sachs & Co. and Johns Hopkins University Samuel Hellman M.D. Philip H. Knight A.N. Pritzker Distinguished President Arthur B. Culvahouse Jr. Chairman Elizabeth E. Bailey Service Professor J.W. Redmond & Company Chair Nike, Inc. Chair and John C. Hower Professor of The University of Chicago Charles W. Robinson O’Melveny & Myers LLP Business and Public Policy Harold Hongju Koh Robert A. Helman President Alan M. Dachs Dean of Yale Law School The Wharton School Robinson & Associates, Inc., University of Pennsylvania Partner President and CEO Yale University Mayer, Brown, Rowe & Maw CBTF Co., and M Ship Co. Fremont Group Zoë Baird William A. Owens James A. Johnson James D. Robinson III Kenneth W. Dam Chairman and CEO President General Partner and Co-Founder The Markle Foundation Vice Chairman Max Pam Professor AEA Investors LLC Perseus, LLC RRE Ventures of American & Foreign Law Rex J. Bates University of Chicago Law School Charles O. Prince Ann Dibble Jordan Warren B. Rudman Retired Chairman and CEO Louis W. Cabot Of Counsel Steven A. Denning Citigroup, Inc. Chairman Michael H. Jordan Paul, Weiss, Rifkind, Chairman Cabot-Wellington LLC Chairman Wharton & Garrison General Atlantic LLC Edgar Rios EDS Corporation Co-Founder and Managing Director James W. Cicconi B. Francis Saul II Vishakha N. Desai Ph.D. Wenzi Capital Partners Senior Executive Vice President– Vernon E. Jordan Jr. President and Chairman President and CEO Senior Managing Director B.F. Saul Company Haim Saban External and Legislative Affairs The Asia Society AT&T Lazard Frères & Co. LLC Chairman and CEO Of Counsel Ralph S. Saul Paul Desmarais Jr. Saban Capital Group, Inc. A. W. Clausen Akin Gump Strauss Hauer & Feld, Former Chairman Chairman and CEO Retired Chairman and CEO LLP CIGNA Corporation Power Corporation of Canada Sheryl K. Sandberg Chief Operating Officer Bank of America Corporation Henry B. Schacht Former President Breene M. Kerr Thomas E. Donilon Facebook President Managing Director and Senior Advisor Partner The World Bank Warburg Pincus LLC Victoria P. Sant Brookside Company O’Melveny & Myers LLP William T. Coleman Jr. President Herbert M. Kaplan Michael P. Schulhof Mario Draghi The Summit Foundation Senior Partner and The Senior Chairman and CEO Counselor Chairman and CEO Governor Warren Equities Global Technology Investments Bank of Italy Leonard D. Schaeffer O’Melveny & Myers LLP Chairman Marie L. Knowles Joan E. Spero Kenneth M. Duberstein Surgical Care Affiliates D. Ronald Daniel President Director Retired Executive Vice President and Chairman and CEO CFO Doris Duke Charitable Foundation The Duberstein Group, Inc. Lawrence H. Summers McKinsey & Company, Inc. Charles W. Eliot University Professor Atlantic Richfield Company (ARCO) John C. Whitehead Alfred B. Engelberg Harvard University Robert A. Day Chairman James T. Lynn Stephen M. Wolf Trustee Retired CEO The Engelberg Foundation David F. Swensen Trust Company of the West Chairman Chief Investment Officer Aetna Life & Casualty Company Lehman Brothers Private Equity Bruce B. Dayton Bart Friedman Yale University Jessica Tuchman Mathews Advisory Board Chairman Senior Partner R.R. Donnelly & Sons Company Larry D. Thompson Charles W. Duncan Jr. President Cahill Gordon & Reindel Chairman Carnegie Endowment for Managing Partner Senior VP of Governmental Affairs, Alpilles, LLC David Friend General Counsel and Secretary Duncan Interests International Peace President and CEO PepsiCo, Inc. Walter Y. Elisha David O. Maxwell James D. Wolfensohn Carbonite, Inc. Chairman Michael L. Tipsord Retired Chairman and CEO Retired Chairman and CEO Springs Industries, Inc. Fannie Mae Wolfensohn & Company, LLC Ann M. Fudge Vice Chairman, Chief Financial Former President Former Chairman and CEO Officer and Treasurer Robert F. Erburu Donald F. McHenry The World Bank Young & Rubicam Brands State Farm Insurance Companies Chairman of the Board (Retired) Distinguished Professor in the Practice Ezra K. Zilkha Jeffrey W. Greenberg Andrew H. Tisch The Times Mirror Company of Diplomacy and International Affairs President Chairman and CEO Co-Chairman of the Board Lawrence K. Fish Zilkha & Sons, Inc. Aquiline Holdings LLC Loews Corporation School of Foreign Service Chairman and CEO Georgetown University Citizens Financial Group, Inc. 34 Honor Roll of Contributors

Cash Received John S. and James L. Knight David and Marianna Fisher The Andrew H. & Ann R. Tisch July 1, 2007–June 30, 2008 Foundation The Freeman Foundation Foundation Claude R. Lambe Charitable Mark T. Gallogly Tokyo Club Foundation for Global Foundation Google.org Studies Living Cities, Inc. Michael D. Granoff Tokyo Sexwale $1,000,000 and Above National Association of Home Maurice R. Greenberg and Toyota Anonymous Builders The Starr Foundation C.H. Tung and China-United States Annie E. Casey Foundation National Intelligence Council The George Gund Foundation Exchange Foundation Alfred and Gail Engelberg State Farm Mutual Automobile The Heinz Endowments University of Pittsburgh The Ford Foundation Insurance Company Glenn H. Hutchins University of Toronto Bill & Melinda Gates Foundation Surdna Foundation, Inc. Benjamin R. Jacobs Antoine W. van Agtmael The Robert Wood Johnson Taipei Economic and Cultural Kenneth M. Jacobs Vanderbilt University Foundation Representative Office The Suzanne Nora Johnson & Bernard van Leer Foundation The John D. & Catherine T. U.S. Chamber of Commerce David G. Johnson Foundation William A. von Mueffling MacArthur Foundation WellPoint, Inc. The Joyce Foundation Stephen M. Wolf Embassy of Qatar Richard Kauffman Ezra K. Zilkha Haim and Cheryl Saban $100,000 – $249,999 Richard A. Kimball Daniel B. Zwirn Leonard D. Schaeffer Anonymous (2) Nemir Kirdar John L. Thornton S. Daniel Abraham KnowledgeWorks Foundation $50,000 – $99,999 James D. Wolfensohn Alcoa The Kresge Foundation Anonymous (3) Allstate Frank P. Lowy Robert John Abernethy $500,000 – $999,999 Roger Altman Luso-American Foundation Roger Agnelli and Vale Anonymous American Express Company Microsoft Corporation The Paul G. Allen Family Foundation Vahid Alaghband James Balsillie and The Centre Mindich Family Foundation The Arca Foundation Department for International for International Governance Novartis Corporation U.S.A. Asian Development Bank Development, United Kingdom Innovation Open Society Institute AT&T Services Inc. The William and Flora Hewlett Dominic Barton Richard Perry Rahul Bajaj Foundation Howard P. Berkowitz Pfizer Inc Banco Itau Holding Financeira S.A. Hitachi, Ltd. Geoffrey T. Boisi and The Boisi Charles Prince Alan R. and Jane Batkin Liberty Mutual Group Family Foundation Marco Tronchetti Provera, Pirelli & Daniel Berger Charles Stewart Mott Foundation Canadian Department of Foreign C. S.p.A. The Andrea and Charles Bronfman Royal Ministry of Foreign Affairs, Affairs and International Trade Steven Rattner and Maureen White Fund at Brandeis University Norway Chevron Reliance Industries Limited The Morris and Gwendolyn Cafritz The Pew Charitable Trusts Citigroup, Inc. Charles W. Robinson Foundation The Victor Pinchuk Foundation Timothy C. Collins and The Rockefeller Brothers Fund Cherokee The Rockefeller Foundation Ripplewood Foundation Nathaniel Rothschild Abby Joseph Cohen UnitedHealth Group, Inc. The Council for the United States Jacob Rothschild and the Saffery Council of Great Lakes Industries and Italy Champness Trust Corporation Robert A. Day $250,000 – $499,999 Countrywide Financial as Trustee of the Arrow District of Columbia Primary Care Anonymous Daimler Charitable Trust Association Richard C. Blum Government of Denmark Jamie and Gretchen Rubin DST Systems, Inc. and Senator Dianne Feinstein Steve and Roberta Denning Robert E. Rubin Doris Duke Charitable Foundation Boston College Paul Desmarais Jr. Roger W. and Victoria P. Sant and Eksio˘gullari Group Carnegie Corporation of New York John Doerr The Summit Fund of Washington James Elrod Alan M. Dachs Hanzade Do˘gan, Do˘gan Group of Schlosstein-Hartley Family Lawrence K. Fish Government of the District of Companies Foundation Embassy of France Columbia Blair W. Effron The Schroder Foundation Bart Friedman Dubai School of Government and Cheryl Cohen Effron The Spencer Foundation The Victor and William Fung Exxon Mobil Corporation European Union, Delegation Stanford University Foundation Brian L. and Myra S. Greenspun of the European Commission Stuart Family Foundation GE Foundation and The Greenspun Family Fannie Mae Swedish Ministry for Foreign Affairs Georgetown University Foundation Fannie Mae Foundation Government of Switzerland The German Marshall Fund of the Johns Hopkins University Government of Finland The Tata Group United States 35 Honor Roll of Contributors

Fred Gluck John C. Whitehead Frank F. Islam BASF Corporation Richard and Rhoda Goldman Fund J. McDonald Williams and Embassy of Japan Robert Berne Jeffrey W. Greenberg The Dallas Foundation Japan Bank for International John P. Birkelund Harrah’s Foundation Roy J. Zuckerberg Family Foundation Cooperation The Boston Consulting Group, Inc. William A. Haseltine, Ph.D. Mortimer B. Zuckerman Joel and Ricki Kanter The Bradley Charitable Fund of The F.B. Heron Foundation Edward M. Lamont The Community Foundation for Loren W. Hershey, Esq. $25,000 – $49,999 Daniel H. and Sunita Leeds the National Capital Region Joel Z. Hyatt Abt Associates Inc. Lockheed Martin Corporation Anders Brag Johnson & Johnson Meena and Liaquat Ahamed Lumina Foundation for Education Bristol-Myers Squibb Foundation James A. Johnson and Maxine Isaacs All Nippon Airways Mannheim LLC Brodsky Family Foundation Herbert M. Kaplan Allen & Company LLC MCH, Inc. Daniel Brodsky Ewing Marion Kauffman Foundation The American Enterprise Institute Eugene and Agnes E. Meyer Carter Cafritz The Elbrun and Peter Kimmelman American Express Foundation Foundation Conrad Cafritz Family Foundation America’s Promise Michigan State University Cargill The Korea Foundation API The Ambrose Monell Foundation Caterpillar Inc. Lawrence Livermore National Aramco Services Company National City A.W. Clausen Laboratory AT&T Services Inc. Nurol Holding, Inc. Judith and Stewart Colton Luxembourg Ministry of Sandy and Stewart Bainum Jr. John R. Oishei Foundation ConocoPhillips Foreign Affairs Bank of America Frank H. Pearl Karen and Everett R. Cook Robert E. Marks Rex J. Bates Charles and Danica Perez Corning Incorporated Foundation The Leo Model Foundation, Inc. The Boeing Company Raytheon Co. The Curtis Family Foundation Jaime J. Montealegre BP America, Inc. Marshall Rose The Honorable Kenneth W. Dam Mario M. Morino Louis W. Cabot RTI International and Marcia W. Dam National Science Foundation Calthorpe Associates sanofi-aventis U.S. Inc. David E. R. Dangoor Next Street Financial Embassy of Canada Elinor A. Seevak D. Ronald Daniel and Lise C. Scott Northwestern University Chenega Advanced Solutions & Shell Oil Company Marti Dinerstein The Olayan Group Engineering LLC Standard Chartered Bank Adam J. Dooley The David and Lucile Packard Citizens Financial Group, Inc. David S. Steiner and Sylvia Steiner The Dow Chemical Company Foundation Civil Justice Reform Group Charitable Trust Anthony Downs William Penn Foundation Cleveland Clinic Taconic Foundation, Inc. Richard J. Dumler PepsiCo, Inc. The Cleveland Foundation The Tinker Foundation, Inc. William C. Eacho, III The Philadelphia Foundation The Coca-Cola Company Ranvir K. Trehan Embraer Aircraft Holding, Inc. Phoenix Satellite Television The Commonwealth Fund Tudor Investment Corporation Roger C. Faxon Holdings, Ltd. CSC University of Pennsylvania FirstFocus Samuel Pisar District of Columbia State The Urban Institute Ford Motor Company John G. Popp Education Office U.S. Department of Agriculture Ann M. Fudge Wanda Rapaczynski Dr. Ronald and Beth Dozoretz Visa Inc. John L. Furth Joseph L. Rice, III William A. Dunn Enzo Viscusi The Gallup Organization Edgar and Lillian Rios and Eli Lilly and Company The World Bank GlaxoSmithKline The R&R Foundation The Betsy and Jesse Fink Foundation Daniel H. Yergin and Angela Stent Goldman, Sachs & Co. James D. Robinson, III Todd Fisher George D. Gould Jay Snyder and Beatrice Snyder The Lee and Juliet Folger Fund $10,000 – $24,999 Roddy and April Gow Foundation Mitzi and Cyrus F. Freidheim Jr. Anonymous (2) Greater New Orleans Nonprofit Strobe Talbott and Brooke Shearer French Ministry of Foreign Affairs Leonard Abramson Knowledge Works J. Ronald Terwilliger General Dynamics Corporation Donald C. Alexander Patrick W. and Sheila Proby Gross Turkish Industrialists’ and General Motors Foundation American Bar Association-Section Marion Guggenheim Businessmen’s Association The George Washington University of Business Law Agnes Gund United Nations Embassy of the Federal Republic of Loreen Arbus, Goldenson-Arbus Robert D. Haas U.S. Agency for International Germany Foundation James T. Hackett, Anadarko Development Vincent G. Graham The Armstrong Foundation Petroleum Corporation Mallory Walker and William Walker HBO Liza Bailey The Harris Family Foundation Marcus Wallenberg Patrick J. Healy Joanne Barker Thomas J. Healey Beatrice W. and Anthony Welters Teresa Heinz Richard Bartlett June R. Hechinger 36 Honor Roll of Contributors

Cynthia Helms Panasonic Corporation of Charles W. Duncan Jr. Hermine Warren E. David Hetz North America Kay Enokido and Thomas C. Crouse Robert M. Weekley Francis O. Hunnewell Gordon B. Pattee Elinor Farquhar Mary Weinmann Richard M. and Priscilla Hunt The Pennsylvania State University Julie Finley Mary and Jeff Zients Investcorp International Inc. Petrobras America Inc. Nancy M. Folger ITOCHU International Inc. J. Woodward Redmond David Friend Up to $4,999 Shirley Ann Jackson, Ph.D. Stanley and Louise Resor Dr. Leslie I. Gold and John P. Spain Richard Barnes Martin D. Jacobson Marie Ridder Lincoln Gordon Cabell and Shirley Brand Michael H. Jordan Daniel and Joanna Rose Jeffrey C. Gore Morton and Shirley Cohen Douglas M. Kaden B. Francis Saul, II Vartan Gregorian Roberta Cohen Kansai Electric Power Company, Inc. Ralph S. Saul John Gutfreund Vishakha N. Desai Betsy and Frank Karel Henry B. Schacht Miriam and Peter Haas Fund The Doctors Company James C. Kautz Michael P. and Paola Schulhof Edmund A. and Barbara Hajim Thomas E. Donilon W.K. Kellogg Foundation The Paul D. Schurgot Foundation, Henry and Nancy Hamlin Draper and Kramer, Incorporated David Woods Kemper Memorial Inc. F. Warren Hellman Walter Y. Elisha Foundation Paul and Deane Shatz Samuel Hellman, M.D. Nancy M. Hewett, Ph.D. Ken and Martha Kessler Stanley S. Shuman and The Marc Robert A. Helman Raymond Howard James V. Kimsey Haas Foundation Harold Hestnes Ann and Vernon E. Jordan Jr. Marie L. Knowles Stephanie and Fred Shuman Andy Heyward Thomas L. Kempner Korea International Trade Association Kenneth Siegel Roy M. Huffington* Douglas Kiessling Hahn Kook Center Steven J. Simmons International Development Research Harold H. Koh KPMG LLC Samuel M. and Helene K. Soref Centre Lawrence Frank and Company, Inc. City of Lancaster Foundation John R. Jakobson Donald F. McHenry Patrick J. Landers Andrew P. and Patricia Steffan Nicholas Jakobson Robert S. McNamara Martin F. Lewis Sumitomo Corporation of America The Japan Foundation Center for Mary Patterson McPherson Toby Devan Lewis Nelson Talbott Global Partnership Rochelle Novins Lawrence H. Linden Lynn B. Thoman Vinod Khosla Philip Pillsbury Gordon Litwin and Anne Luzzatto Larry D. Thompson Robert P. and Arlene R. Kogod Samuel Plimpton James T. and Joan M. Lynn Michael L. Tipsrord Bruce K. and Virginia N. MacLaury John Edward Porter Bertil P. Lundqvist Toshiba America, Inc. The Mobility Agenda Warren B. Rudman Frederic V. Malek Andrew K. Tsai Stephen C. Morris Francis H. Schott Marathon Oil Corporation United States Army War College National Institutes of Health Frederic Shore Marubeni America Corporation Paul A. Verbinnen Nevada Title Company Evan Shulman Edward J. and Dale Mathias Seymour and Kathleen Weingarten New York University Karl M. Sooder Arjay and Frances Miller Fred Wilpon Peter and Sarah O’Hagan Linda G. Steckley and Peter Weitzel Mitsubishi International Corporation Wyeth William A. Owens Laura D’Andrea Tyson Mitsui & Co. (U.S.A.), Inc. Xerox Corporation Alan and Susan Patricof U.S. Institute of Peace James Mossman Principal Financial Group Frank Weil National Association of Software and $5,000 – $9,999 Foundation, Inc. Service Companies (NASSCOM) American Society of the French Research Foundation – The City NEC Corporation Legion of Honor University of New York *deceased John P. Nelson Elizabeth E. Bailey Frederic A. and Susan Rubinstein Donald E. and Susan Newhouse Ernest A. Bates, M.D. Stanley M. Rumbough Jr. Nissho Iwai Foundation Rhoda W. Brownstein SAS Institute Richard B. Nye William M. Cameron Alan B. Slifka and Francesca Stanfill Nye The Capital Group Charitable Robert Solomon Eric Oddleifson Foundation Helmut Sonnenfeldt George F. Ohrstrom Ellen Chesler Joan E. Spero Augustus K. Oliver and Matthew J. Mallow Frederick Stavis Eiji Ono Arthur B. Culvahouse Lawrence H. Summers John E. Osborn Leo A. Daly Paul and Chandler Tagliabue PACCAR Inc. Bruce B. Dayton Vincent J. and Pat Trosino Kenneth M. and Jackie F. Duberstein University of Wisconsin Green Bay 37 STATEMENT OF ACTIVITIES Years Ended June 30, 2008 and 2007 (in thousands)

temporarily permanently 2008 2007 unrestricted restricted restricted total total

OPERATING REVENUES Investment return designated for operations $ 10,171 $ 2,260 $ 12,431 $ 11,496 Grants and contracts 1,713 48,374 50,087 64,164 Contributions 5,141 5,922 11,063 8,779 Conferences 5,283 5,283 3,956 Brookings Press 2,654 2,654 2,482 Interest and dividends 114 123 237 268 Rental income, net (92) (92) 59 Facility revenue 914 914 978 Other income 182 182 161 Net assets released from restrictions— satisfaction of program restrictions 51,923 (51,923) Total Operating Revenue and Support 78,003 4,756 82,759 92,343

OPERATING Expenses Program services: Economic Studies 11,924 11,924 9,786 Foreign Policy 17,112 17,112 12,850 Global Economy and Development 6,914 6,914 5,336 Governance Studies 2,409 2,409 2,297 metropolitan Policy Program 9,551 9,551 7,006 other research 2,094 2,094 935 center for Executive Education 5,316 5,316 5,528 Brookings Press 3,141 3,141 2,835 communications 3,582 3,582 2,243 Total Program Services 62,043 62,043 48,816 Supporting services: Management and General 15,341 15,341 10,406 Fundraising 2,640 2,640 2,412 total Operating Expenses 80,024 80,024 61,634 Change in net assets before non-operating activities (2,021) 4,756 2,735 30,709

NON-OPERATING ACTIVITIES Investment return in excess of amounts designated for operations realized gain on sale of investments 12,162 12,162 20,203 unrealized gain (loss) from investments (24,676) (24,676) 28,207 interest and dividends, net 1,094 1,094 1,424 investment income allocation (12,431) (12,431) (11,496) total investment return (loss) in excess of amounts designated for operations (23,851) (23,851) 38,338 contributions for endowment — 5,366 5,366 7,538 total Non-Operating Activities (23,851) 5,366 (18,485) 45,876 Change in net assets before the effect of adoption of SFAS No. 158 and post-retirement related changes other than net periodic post-retirement benefit cost (25,872) 4,756 5,366 (15,750) 76,585 Effect of adoption provisions of SFAS No. 158 — — — — 1,610 Post-retirement related changes other than net periodic post-retirement benefit cost (119) (119) CHANGE IN NET ASSETS (25,991) 4,756 5,366 (15,869) 78,195 Net assets at the Beginning of the Year 243,472 74,235 52,920 370,627 292,432 Net assets at the End of the Year $217,481 $78,991 $58,286 $354,758 $370,627

38 STATEMENT OF FINANCIAL POSITION As of June 30, 2008 and 2007 (in thousands)

2008 2007

Assets Cash and cash equivalents $ 5,604 $ 8,294 Accounts receivable, net 1,594 2,461 Grants and contributions receivable, net 68,762 63,713 Accrued investment income 330 321 Inventory Operating481 Revenues 538 Investments, at fair value 277,455 291,704 Property and equipment, net 43,122 13,828 75% Other assets 649 Gifts and Grants750 TOTAL ASSETS $397,997 $381,609 1% Liabilities Miscellaneous Accounts payable and accrued expenses $ 8,846 $ 5,386 Accrued compensated leave 2,409 3% 1,884 Lines of credit and note payable 28,031 Publications 28 Accrued post-retirement benefit obligation 3,340 3,071 Deferred revenue 613 7% 613 BCEE TOTAL LIABILITIES 43,239 10,982 13% Net Assets Endowment Unrestricted 217,481 243,472 Temporarily restricted 78,991 74,235 Permanently restricted 58,286 52,920 Total Net Assets 354,758 370,627 TOTAL LIABILITIES AND NET ASSETS $397,997 $381,609 Other Research Operating Revenues Program Services Expenses 18% Communications Economic Studies 75% Gifts and Grants 3% Development Other Research

1% 6% Global Economy Miscellaneous Communications

4% Publications 3% Development Publications BCEE 11% Global Economy 7% Governance Studies BCEE 5% Publications Foreign Policy Studies 13% 8% Endowment BCEE Metropolitan Policy 4% Program Governance Studies Economic Studies 15% Metropolitan Policy Program 26% Fo reign Policy Other Research Notes: Program Services Expenses As a nonprofit and scientific organization,18 Brookings% is exempt from federal income taxes under section 501(c)(3) of the Internal Revenue Communications Code. The Institution also qualifies as a publiclyEconomic supported Studies organization under section 170(b)(1)(A)(vi) of the code. The Brookings policy is to make an annual3% investment spending allocation for the support of operations. This amount is calculated based Development on 70% of the prior year’s spending adjustedOther for inflation Research and 30% of 5% of the market value of the investments as of December 31 of the prior fiscal year. Certain reclassifications of prior 6%year balances have been made to conform to the current year presentation. Global Economy A copy of the Institution’s audited financialCommunic statementsations is available by request. 4% 39Publications Development BCEE 11% Global Economy Governance Studies 5% Publications Foreign Policy Studies 8% BCEE Metropolitan Policy 4% Program Governance Studies Economic Studies 15% Metropolitan Policy Program 26% Fo reign Policy Brookings Institution Press

hat Do We Do will also need to pursue a new Senior Fellow Clifford Winston editor of Twenty-First-Century Now? That’s strategic framework for advancing and Gines de Rus, a professor Gateways: Immigrant Incorpora- the question American interests in the Middle of applied economics in Spain, tion in Suburban America with Barack Obama East. Martin S. Indyk, the direc- edited Aviation Infrastructure Per- Susan W. Hardwick of the Uni- and his transi- tor of the Saban Center for formance: A Study in Comparative versity of Oregon and Caroline B. tion staff are Middle East Policy at Brookings, Political Economy, a study that Brettell of Southern Methodist Wasking. And that’s the title of a and Richard N. Haass, president assesses congestion at airports University. timely Brookings Institution Press of the Council on Foreign Rela- and airline travel delays. It con- The fight against global pov- book written by Stephen Hess, tions, have authored Restoring the cludes that the United States erty has quickly become one of designed to provide the answers. Balance: A Middle East Strategy has much to learn from other the hottest tickets on the global Hess is a senior fellow emeritus in for the Next President. In this vol- countries. agenda, with rock stars, world Governance Studies. leaders, and multibillionaires Early blunders can carry calling attention to the plight serious consequences well of the poor at international into a president’s term. confabs such as the World Eco- Drawing on his long per- nomic Forum and the Clinton sonal experience as a White Global Initiative. Edited by Lael House staff member and Brainard, vice president and presidential adviser, Hess has director, Global Economy and written a practical workbook Development, and Derek Chol- to help the new president let, a nonresident fellow in the make crucial decisions dur- program, Global Development ing the transition period. The 2.0 celebrates this transformative instructions offered here— trend within international aid and including which presidential offers lessons to ensure that this portraits to hang in the Oval wave of generosity yields lasting Office—are also a delightful and widespread improvements read for anyone interested in to the lives and prospects of the exactly how one goes about world’s poorest. being the president of the Many recent books were United States. cited for distinctions this year: In the months leading up Journey Into Islam: The Crisis of to the election, more than 20 Globalization by Akbar Ahmed Brookings experts analyzed won two prestigious awards. It the problems confronting was chosen “Book of the Week” America and offered innova- by The Guardian newspaper tive policy solutions to the in late June, and was named incoming administration. “Book of the Year” by the Glo- With Senior Fellow Michael balist on-line magazine. Choice O’Hanlon as editor, the magazine cited four Brookings Brookings Press presented books as “Outstanding Academic the ideas in a volume titled Titles”—Finance for Development: Opportunity 08: Independent Latin America in Comparative Ideas for America’s Next President. ume, experts suggest new strate- Another new book focused Perspective, by Barbara Stallings; Reflecting an impressive breadth gic and tactical proposals to help on the fastest-growing immigrant Integrating Islam: Political and of expertise, opinions, and the White House deal with Iran, populations in metropolitan Religious Challenges in Con- political beliefs, the book outlines Iraq, Israel, Palestine, Lebanon, areas with previously low levels temporary France, by Jonathan challenges including how to deal Syria, and other challenges in the of immigration—places such as Laurence and Justin Vaisse; The with Iran and Iraq, the rise of Middle East. Atlanta, Charlotte, Minneapolis- Law-Growth Nexus: The Rule of China, climate change, poverty One major domestic problem St. Paul, Portland, Sacramento, Law and Economic Development, and inequality, and retirement the new president will need to and Washington, D.C. Metro- by Kenneth W. Dam; and Build- security. resolve is the nation’s flagging politan Policy Program Senior ing a New Afghanistan, edited by The incoming chief executive infrastructure. Economic Studies Fellow Audrey Singer was an Robert I. Rotberg. n 40 Opportunity 08

Editors: Melissa Skolfield and Susan Kellam Writers: Juliet Bui, Shawn Dhar, Carol Anthony, Ron Nessen

PRODUCTION COORDINATOR: Adrianna Pita Design and Print Production: The Magazine Group, Inc. Jeffrey Kibler, Adriana Guevara, Brenda Waugh