2016 Annual Report

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2016 ANNUAL REPORT

centenary

A CENTURY OF IMPROVING GOVERNANCE For 100 years, experts at Brookings have brought empirical research and fact-based analysis to the most important problems facing the nation and the world. Policymakers from across the ideological spectrum look to Brookings for creative solutions to governance challenges because they know they will find independent thinking grounded in data and attentive to the practical realities of today’s political environment. Brookings experts are committed to the highest standards of quality, independence, and impact, the mutually reinforcing values that have made Brookings a trusted resource since its founding.

1 CO-CHAIRS’ MESSAGE

s Brookings’s centenary year draws to a close, we are already implementing our strategic plan, which we call Brookings 2.0. The plan updates our mission of improving governance at all levels—local, national, Aregional, and global—and thereby, hopefully, bettering the lives of so many more citizens. Over the course of the last twelve months, we sought the guidance of a broad array of Brookings stakeholders. The result commits us to a range of institutional priorities: cultivating a culture of collaboration and interdisciplinary research; increasing the diversity and inclusiveness of our community of scholars and PHOTO: PAUL MORIGI other professionals; and utilizing new technology and the digital revolution to expand our reach to new audiences, constituencies, and partners. As you’ll see in the following pages, each goal is accompanied by a strategy for achieving it. The full plan is available publicly on our newly redesigned website, brookings.edu. Fulfilling these aspirations requires sustainable funding. There, too, Brookings has been fortunate in having a wide group of individuals recognize—and generously support—our mission. We formally launched the Second Century Campaign three years ago with the announcement of an ambitious goal of $600 million. Vice Chair of the Board Glenn Hutchins chaired the Campaign. Under his able leadership, we are proud that the Campaign surpassed this target in June. Thanks are also due to the hundreds of Brookings’s friends—including many of our current and former Trustees—whose generosity was striking and much appreciated. The happy result is that we are crossing the threshold of our centenary with real confidence we can ensure for a good many years the quality of our research, guarantee the independence of our scholars, and extend our impact. When Robert S. Brookings and his fellow founders created in 1916 the world’s first independent research organization devoted to fact-based research and problem- solving in the realm of public policy, they were looking to the future. So are we. As Brookings continues to adapt to new challenges and opportunities, we will continue to build on our legacy and to rely on your support as the Institution goes from strength to strength—and strives to achieve the goal of improved public policy-making and the result of better, enhanced human lives.

David Rubenstein John L. Thornton Co-Chair Co-Chair

2 PRESIDENT’S MESSAGE

ooking back from the vantage of our Institution’s hundredth birthday, we are reminded that, every year since its founding, our scholars have been clear-eyed about the overall state of the human endeavor, whether it augurs well or ill. Most years have been a mix of breakthroughs and setbacks, usually with more Lprogress than regression. But sometimes the bad news eclipses the good. In those circumstances, Brookings goes into high gear in its search for bold, pragmatic solutions to mega-problems. Our predecessors rose to that challenge during the Great Depression, two world wars, and a series of crises that took the world to the brink of thermonuclear Armageddon. Our centenary happens to fall in the midst of another time of troubles. In their multitude and magnitude, they are stress-testing the capacity of nations and the international community to govern themselves wisely and effectively. Dictatorship, predatory geopolitics, and blood-and-soil ideologies are on the rise. Terrorist massacres and humanitarian disasters have become staples of life on several continents. The cradle of civilization has seen the rebirth of barbarism. Meanwhile, democracy is underperforming in the eyes of many of its constitu- ents. Citizens in numerous countries have come to distrust established institutions, PHOTO: PAUL MORIGI fear the future, and follow demagogues—a phenomenon that has shaken the foundations of the European Union and made for a uniquely fraught presidential campaign in the United States. The current welter of difficulties and dangers is not as dire as the hot and cold wars that afflicted the world in the last century, but it has the potential to spin out of control unless it is understood, managed, and mitigated. As in the past, our scholars are dedicated to getting to the bottom of what has gone wrong, identifying and scaling up practices and policies that work, and coming up with new ideas to cope with change. Ideas, after all, are the software of civilization, governance, and problem-solving. All three are in need of updating and upgrading. Hence, our adoption of a strategic plan, called Brookings 2.0, to help restore the world to better working order.

Strobe Talbott President

3 4 CENTENARY fields. They shared a conviction finance, philanthropy, and other were prominent ineducation, law, Democrats, andindependents who group includedRepublicans, on greater resonance. This inspired to1916 found theInstitution takes S. Brookings—who came together in private citizens—including Robert in 2016, thevisionof theeighteen As Brookings marks its centenary BROOKINGS AT 100 Washington, DC founded in Research Government The Institute for 1916 process the federal budget executive power in 1921, whichexpands Accounting Act of the Budget and and passage of lead to thecrafting recommendations Research Government Institute for 1919

P H O T O : BR OO KIN ES GS HIV INSTITUTION ARC the Versailles Treaty World War Idebts mandated by and its allies’ ability to pay the landmark study of Germany The Institute publishes a 1923 A CENTURY OFIDEAS ANDIMPACT Institution (1923) to form theBrookings Economics andGovernment Brookings Graduate School of in 1922) andtheRobert S. Institute of Economics (founded Research merges withthe The Institute for Government 1927 Administration the Agricultural Adjustment two years later by astudy of a New Deal agency, followed National Recovery Administration, President Franklin Roosevelt’s Brookings economists evaluate 1935 from re-arming preventing Germany andJapan later, postwar demobilization and U.S. manpower requirements, and military mobilization, Germanand including wartime price controls, policies onavariety of issues, war effort by recommending Brookings experts the support Throughout World War II, 1939 would beareliable source of they created anInstitution that facing thecountry. To thatend approaches to thechallenges and adedication to pragmatic would take originalthinking Building thatbetter world that abetter world was possible. realized its potential andabelief that American democracy hadnot day Foreign Policy program a precursor to thepresent- Group isformed atBrookings, The International Studies 1946 known as theMarshall Plan the European Recovery Program, later a pivotal role inthedevelopment of Committee, Brookings experts play of the Senate Foreign Relations Vandenberg,Arthur chairman At therequest of Senator 1948 Commission known astheHoover the Government, also Executive Branch of Organization of the Commission on prepared for the on publicwelfare, a task force report forms thebasis of Brookings research 1949 increasingly rigidideologies and more important inrecent years, as partisanship have onlybecome mission. Independence andnon- Brookings does inpursuit of its remains central to everything years later, thissingularpurpose to publicpolicy. Onehundred but actionableimprovements constructive criticism,andbold objective, independent analysis,

productivity to improve government federal employee training provides across-the-board Training Act of 1958, which to passage of theFederal executives thatcontributes for senior government new program of education Brookings launches a 1957

who wins irrespective of administration, launch thenext to helpsmoothly Transitions Project the Presidential Brookings launches presidential election, Ahead of the 1960

P H O T O : B E T T M A N N / G ETT Y IMAGES political gridlock have come to outside influences. Indeed, the value foreign policy, metropolitan policy, dominate—or even define—official of Brookings research and analysis, and international development. Washington. and thus of the Institution as a Along the way, Brookings experts whole, is inextricably linked to this have made an indelible impact From its founding and continuing commitment to objectivity. on the policy landscape. Looking today, independence has always ahead to the next century and begun with Brookings scholars. As the Institution has grown over beyond, Brookings will continue They enjoy the academic freedom the last ten decades, it has tackled sharpening its focus, building its to pursue their research wherever it a widening set of policy challenges, capacities, broadening its reach, and may lead and their conclusions are from its original focus on governing deepening its commitment to quality, resolutely their own, insulated from institutions and economic issues to independence, and impact.

1971 2013 Brookings experts begin a new Brookings opens its third series of studies on the federal overseas office, in New budget and congressional Delhi, India spending choices, which eventually leads to the creation K of the Congressional Budget C O T IS Office (CBO). Brookings scholar / L W Alice Rivlin becomes the O H N founding director in 1975 A : D O 2001 OT PH 2016 Following the 9/11 terrorist attacks, Brookings experts testify before Congress and produce Brookings 1975 numerous proposals for homeland security and intelligence begins its Brookings releases operations, including “Protecting the American Homeland” second century recommendations and launches of the Middle East Brookings 2.0, its centennial Study Group, which A Brookings proposal helps forge bi-partisan support in strategic plan becomes President Congress to extend the benefits of the child tax credit in the Jimmy Carter’s plan Economic Growth and Tax Relief Reconciliation Act of 2001 to for settlement of the lower- and middle-income families Arab-Israeli conflict

1966 2006 President Lyndon B. Johnson addresses Brookings opens

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BROOKINGS 2.0: A PLAN FOR OUR SECOND CENTURY

rookings’s hundredth order and shaking the confidence implies a clear purpose and direc- anniversary is an occasion to of leaders and citizens alike, even tion. Over the past hundred years, Bcelebrate our past and reflect as millions have risen out of poverty through the work of its scholars, on its lessons for our future and and new technologies have elevated Brookings has done its part to chart what they mean for how we address living standards across the world. a course toward a world with more the challenges and opportunities opportunity, more justice, more

STRATEGIC PLAN PLAN STRATEGIC of our times. Our legacy is marked The human enterprise seems to open societies, more security, and by continuity in vision, values, and be at an inflection point, which more peace. goals. But our experience has taught means that Brookings is as well, not us that continuity is a virtue only if least because many of the world’s In that respect, continuity is not it is leavened with self-examination challenges fall within the ambit of just at the core of our legacy but a and innovation. Every institution our original and enduring mission: guiding principle for our future. So can always do what it does better— answering the question of how com- is change. To wit, we have already and often do it differently, especially munities can promote life, liberty, begun to redefine governance itself. if the environment in which it oper- and the pursuit of happiness among Throughout most of the twentieth ates is undergoing transformation. their inhabitants. century, Brookings concentrated on improving government, a crucial That is dramatically the case Improving Governance through but limited function that resides now. Over the past few years, our Independent Research with political authorities. In recent interconnected world has experi- Put simply, we are in the business of years, we have adopted the more enced a bumper crop of crises that improving governance. That word, capacious term, since governance are testing the stability of the world derived from the Latin “to steer,” encompasses the expanding and

6 PHOTO: SHARON FARMER SHARON PHOTO: ALSWANG RALPH PHOTO: interactive roles of public, private, At home and abroad, the global Still, government in its traditional and civic forces at all levels, from leadership that the United States definition will always be an indis- local to national to global. assumed when it entered World War pensable component of governance. I, a year after Brookings’s founding, Democracy requires lawmakers As Brookings embarks on its second is now widely questioned even as it who are chosen by elections that century, our task is to understand is sought and welcomed. A conta- are fair, efficient, and represen- the complexity of twenty-first-cen- gion of crises, conflicts, and perils tative. National security, rule of tury governance and develop ideas has swept the globe in the last half law, protection of property rights, that work to its betterment. Our decade, inhibiting if not negating control of the money supply, foreign centennial strategic plan identifies the widespread advances that began policy, intelligence, trade, and other ways to strengthen our ability to in the 1980s and continued into vital functions of statehood are accomplish that task. By imple- the first decade of this century. impossible without a competent menting the plan we will keep faith The advantage of globalization as a government. When it comes to with our predecessors, and ensure worldwide compact to make a virtue steering a nation, the chief executive Brookings’s relevance and impact in of interdependence is losing ground is as close as a democracy comes to the decades ahead. to the dangers of zero-sum interna- providing for a captain. tional competition. Challenge and Responsibility Americans, to their credit, have Our centenary comes several years The adversities and hazards we never been fully satisfied with their into a period when progress seems to face—regressive geopolitics in own government or the course they be giving way to regression. Almost all Russia and China, rising national- are on. Early in the last century, forms of governance are undergoing ism and a fragile European Union, their faith in an ideal, their impa- systemic stress and dissatisfaction ungoverned spaces in Africa, the tience with the status quo, and their among their citizens. That is true of Middle East, and South Asia, conviction that their government virtually all democracies, including terrorist violence all over the world, could do better animated the the most powerful one. climate change—are the result of Progressive Movement, which in human agency gone awry. Coping turn spawned our institution. The United States is suffering from with them simultaneously neces- polarization in the body politic and sitates restoring human agency to gridlock in its governing institutions. its most ambitious, effective, and Chronic disease is rising and life critical. For us at Brookings, that expectancy falling in some sections poses the ultimate test of our ability of the population. Cities and uni- to contribute to the improvement of versities are shaken by turbulence governance in its expansive sense, around issues of race. The American taking account of how governance brand is tarnished by disparities in has evolved to include manifold income and opportunity—a concern participants but has only begun to similar to the one that stirred the integrate them. reformist energies of our original

Trustees and scholars. MORIGI PAUL PHOTO:

7 STRATEGIC PLAN

NEW GOALS FOR A NEW CENTURY

As we confront the manifold challenges of this new century, we have resolved to change the way we do business, attempting to do everything better and some things quite differently. The necessary adaptations fall under five goals:

1. Tighten our focus on the complex of governance issues as an organizing theme of our priorities, activities, products, and partnerships and thereby seek to be a leader in addressing the primary challenges of our time.

2. Enhance our influence and relevance by engaging new audiences and building new PHOTO: PAUL MORIGI PAUL PHOTO: partnerships around the world. This means exploiting more vigorously the tools of the But a hundred years later, an alarm- The city in which we are headquar- digital age. It also means using new and more ing number of Americans are losing tered has, in recent years, become effective branding and messaging to clarify that faith, and their impatience is an object of ridicule, mistrust, and who we are, what we do, why it matters and infected with fear and anger. These fury on the part of many whose how citizens can be part of the solution to the emotions cloud judgment and stoke lives are, ultimately, governed from major problems of our time. incendiary politics, which breed it. Many more millions around the 3. Promote a culture of collaboration across the divisiveness and constituencies for world who still look to the United Institution, since the governance problems we imprudent if not disastrous policies. States as a model society and the deal with are interdisciplinary and multifaceted. The resulting environment makes source of international leadership reform all the harder at a time when are baffled by the acrimony and 4. Advance inclusion and diversity in all its aspects the United States needs it for its near-paralysis that seems to char- in our community as a whole and, in particular, in own sake and for the world’s. acterize the current workings of our our scholarly ranks and management. democratic institutions, notably 5. Reinforce efficiency and sustainability through These trends in the United States including our electoral system. disciplined decision-making on how to allocate are antithetical to what Brookings our resources, whom to hire and for how long, stands for: civil discourse, objectivity, In this respect, too, Brookings is well and whether to start up or sunset projects. fact-based research, and non- positioned to be part of the solution partisanship. That makes it all the to the world’s problems precisely more important that we set an because we know our hometown example in the way we conduct well. Since America’s problems our internal deliberations and the are troublesome for the world, and way we use our convening power to American leadership is essential to contribute to the elevation of the global problem-solving, our identity national debate. as a Washington-based think tank is an asset as we ply our trade globally Moreover, the Institution’s deep and via cyberspace, airwaves, satellites, broad substantive expertise positions and our overseas centers. our scholars to inject sound ideas into policy discourse, while providing trusted information to the public as an antidote to the distortions, invec- tive, and dogma that so often fill the air, especially in Washington, DC. PHOTO: FRED DEWS PHOTO:

8 STRATEGIC PLAN

Centennial Scholar THE CENTENNIAL for Global Urbanization SCHOLAR INITIATIVE Bruce Katz

he challenges facing the Bruce’s work is to inform and propel nation and the world are new patterns of urban growth, new Tundeniably complex; devel- forms of urban finance, and new oping practical policy solutions to norms of urban governance that are meet them requires a multifaceted concrete, imaginative, integrated and,

I G approach. Finding ways to encour- ultimately, transferable. In an effort to I R O M age scholars working in different both observe best practices in action L U A P : O disciplines or different programs and bring his thinking to ground, he T O to collaborate on the biggest issues has met with municipal and private PH is a central part of the Brookings sector leaders in a number of global 2.0 Strategic Plan. The Brookings cities, including Buenos Aires, Institution launched the Centennial London, Montreal, Paris, Stockholm, of the leadership team, along with Scholar Initiative with the intention and Santiago. This work is made Kemal Dervis¸, Vice President and of cultivating a new style of schol- possible through the generous support Director of the Global Economy arship at Brookings, fostering work of Brookings Trustee Steve Denning and Development program, of that is cross-program, inter-disci- and his wife Roberta. Brookings’s Project on 21st Century plinary, international, and intensely City Governance. This collaboration focused on impact. As part of the Initiative, Katz regularly aims to fuel and inform new forms collaborates with scholars at Brookings of urban governance that enable Bruce Katz, who founded and co-led and beyond. In particular, he leads cities to take on the super-sized the Metropolitan Policy Program at Brookings’s Anne T. and Robert M. economic, social, and environmental Brookings, was named the inaugural Bass Initiative on Innovation and challenges they now must face Brookings Centennial Scholar in Placemaking, which aims to catalyze alone, in the face of gridlocked January 2016. In this new role, he a new cross-disciplinary approach and ineffective governance at the will bring integrated problem-solving to city-building that integrates the national level. to the issues arising from global reinforcing benefits of vibrant public urbanization and the challenges of spaces, innovative urban economies, One example of these issues is the a city-driven century. The goal of and inclusive growth. He is also part European refugee crisis resulting from the Syrian civil war. While a number of national governments have agreed to accept refugees into their countries, much of the responsibility for accommodating and integrating them—through language training, job placement, housing, and education—has fallen to the cities where they settle. Bruce is working with Vice President Bruce Jones, Senior Fellows Bobby McKenzie and Constanze Stelzenmüller, and Associate Fellow Jessica Brandt in the Foreign Policy PHOTO: BRUCE KATZ BRUCE PHOTO: program to examine the current ref- Vice President and Director of Global Economy and Development Kemal Dervis¸ ugee situation from the perspective (LEFT) and Lyon Mayor Gerard Collomb (FAR RIGHT) look at a model of redevelopment of La Confluence, where the Rhone and the Saone Rivers meet, of municipal governance. during a Centennial Scholar Initiative visit to France

To learn more about Brookings 2.0, visit » brookings.edu/about-us 9 PHOTO: LENSCAP PHOTOGRAPHY / SHUTTERSTOCK.COM

USING ECONOMIC RESEARCH TO DRIVE PROSPERITY

he June 2016 Brexit vote that Reducing Poverty and The Working Group’s report, initiated the process of the Increasing Opportunity Opportunity, Responsibility, and TUK’s separation from the EU Despite some progress in reducing Security, lays out a comprehensive added a new layer of uncertainty the poverty rate over the past few agenda for strengthening families to an already challenging global decades, by most measures, poverty to prepare children for success, economy. As the U.S. and other rates have risen since the beginning improving the quantity and quality nations struggle with slow economic of the Great Recession. And income of work, and increasing the quality growth, the prospect of less inte- mobility within the U.S. remains of education, especially for poor ECONOMIC STUDIES ECONOMIC gration raises new concerns about low. To chart a path forward, children, to better prepare young what tools policymakers have at Brookings scholars teamed up people to assume the responsibil- their disposal to ignite more vigorous with counterparts at the American ities of adult life and parenthood growth. To improve understanding Enterprise Institute to form the and avail themselves of opportuni- of new developments, experts in AEI-Brookings Working Group on ties for self-advancement. the Economic Studies program Poverty and Opportunity to formu- conducted rigorous, independent late a set of policy prescriptions to research and formulated policy address three interconnected areas recommendations to respond to of life that have a profound effect on economic challenges. Americans’ ability to get ahead.

10 NEW RESOURCES FOR HEALTH POLICY INNOVATION

With health care spending in the U.S. reaching $3 trillion annually and powerful disruptions to the health care system underway, the need for careful analysis and thoughtful proposals for reform continues to grow. To help advance innovation in health policy, Brookings Trustee Leonard D. Schaeffer made a gift of $4 million to

I IG establish the Leonard D. Schaeffer Initiative R O Senior Fellow Alice Rivlin M L for Innovation in Health Policy as a partner- AU outlines proposals for containing : P TO HO ship between Brookings and the Leonard costs of chronic care P D. Schaeffer Center for Health Policy & Economics at the University of Southern California (USC), where he also serves as a Trustee. Under the leadership of Senior Fellow Paul Ginsberg, who is a professor at “As other Washington institutions grew more USC and director of the Center for Health ideologically entrenched, [Isabel Sawhill and Policy at Brookings, the Initiative will conduct research on pressing challenges like Ron Haskins] modeled a partnership that defied the future of Medicare as costs continue labels other than ‘indispensable.’” to rise, shaping the Affordable Care Act to improve outcomes, and maximizing the JASON DEPARLE, NEW YORK TIMES value of innovation in drugs and devices. PHOTO: PAUL MORIGI PAUL PHOTO:

Brookings Trustee Leonard Schaeffer at the launch of the Leonard D. Schaeffer Initiative for Innovation in Health Policy PHOTO: STEVEN E. PURCELL STEVEN PHOTO:

Distinguished Fellow in Residence Ben Bernanke (RIGHT) welcomes Yi Gang, Assistant Governor of the People’s Bank of China

11 BROOKINGS CLASSICS

The Brookings Institution Press has published thoughtful, important, and timely books since long before the internet enabled instant punditry and 140-character analysis. As Brookings celebrates its 100th anniversary in 2016, the Press has begun reissuing some of the most notable works from leading thinkers of the 20th century in a series of Brookings Classics, each with a new foreword by a contemporary expert. Among them are Systematic Thinking for Social Action by Senior Fellow Alice Rivlin and Equality and Efficiency: The Big Tradeoff by legendary Brookings PHOTO: NICK GERBER PHOTOGRAPHY PHOTO: economist Arthur Okun. This series Brookings Trustee Michael Tipsord (LEFT) with Vice President and introduces new readers to import- Director of Economic Studies Ted Gayer ant books and gives past readers the opportunity to revisit them.

EVIDENCE INFORMING POLICY

At the heart of Brookings’s approach to solving challenging policy problems is an unwavering commitment to evidence-based research. Amid the extreme partisanship of modern-day Washington, Brookings experts rely on empirical analysis to overcome the ideological spin that too often colors examination of the issues. In the fall of 2015, the Center on Children and Families launched Evidence Speaks, a weekly series of reports and notes by a standing panel of distinguished researchers who are committed to elevating the role of meth- odologically rigorous research in the formation of education and social policy. With the support of the Laura and John Arnold Foundation and USA Funds and edited by Senior Fellow Grover “Russ” Whitehurst, Evidence Speaks reports have examined topics such as school vouchers, preschool, soft skills, and college debt, among others. PHOTO: PAUL MORIGI PAUL PHOTO: In June 2016, House Speaker Paul Ryan (R-Wisconsin) appointed Senior Representative Tom Price (R-Georgia), Fellow Ron Haskins, co-director of the Center on Children and Families and the Chairman of the House Committee on Cabot Family Chair, as co-chairperson of the Evidence-Based Policymaking the Budget, discusses budget priorities, process, and fiscal challenges Commission. The Commission will study ways to use program data to better measure the effectiveness of federal tax and spending programs, including overcoming the challenges posed by the diffusion of data across many different federal agencies and Senator Ron Wyden (D-Oregon) the need to safeguard privacy. Haskins’s appoint- addresses the future of tax ment builds on work he did for his 2014 book Show policy in 2016 at an event that also featured Representative Me the Evidence, which examined the Obama Kevin Brady (R-Texas), Administration’s evidence-based initiatives. Chairman of the House Ways

and Means Committee I

U A P

12 : O T O H P ECONOMIC STUDIES

Examining Fiscal Policy in an New Editors for the Brookings from spending four years at a Election Year Papers on Economic Activity brick-and-mortar institution to a As the 2016 presidential campaign Brookings convened the 100th model more akin to hiring a general gathered steam, candidates in both biannual Brookings Papers on contractor, whereby a college would parties made claims about their Economic Activity conference in the develop a personalized package of plans for tax reform. The Tax Policy fall of 2015, with two new editors, courses and educational experiences Center (TPC), as it has done in every Northwestern’s Janice Eberly and for individual students. This system election year since its founding, Harvard’s James H. Stock, taking would take advantage of new tech- used its extensive modeling capa- over the flagship journal. The first nologies like massive open online bilities to estimate the fiscal effects volume under their leadership came courses (MOOCs) to lower costs of each candidate’s proposals. By out in spring 2016 and included and eliminate geographic barriers applying the same assumptions to papers looking at student loans, to college attendance. each plan, the Center was able to dynamic budget scoring, inflation present side-by-side comparisons targeting, and weather adjust- of the plans’ impact on tax revenue ments to economic data, as well PHOTO: PAUL MORIGI and distribution. TPC’s nonpartisan, as a symposium on the Greek debt rigorous research is a valuable crisis. The spring 2016 conference resource for anyone looking for an featured presentations on measuring independent source of information wealth and income at the top, on tax policy and for media covering productivity, inflation perceptions the campaigns. and expectations, income inequality, credit policy, and declining fluidity It can be difficult for even well-in- in the labor market. formed citizens to understand the kinds of tradeoffs involved when Innovative Ideas in Education attempting to address weak eco- Senior Fellow Stuart M. Butler nomic growth and social problems, joined Brookings in 2014 after while trying to close the country’s spending 35 years at the Heritage long-run debt burden. To help Foundation, where he was the educate the public, the Hutchins director of the Center for Policy Senior Fellow Donald Kohn (LEFT) and Adam McKay, director Center on Fiscal & Monetary Policy Innovation. Since joining Economic of The Big Short, at a screening of the film partnered with the Woodrow Wilson Studies, he has continued his focus (BELOW) Senior Fellow David Wessel, Director of the Hutchins Center to launch the Fiscal Ship, on poverty, the budget, health, and Center on Fiscal & Monetary Policy, launches the Fiscal Ship an interactive online game that lets entitlements. In addition, his work interactive video game players establish three overarching on education has gained significant priorities out of a possible ten—such attention, especially education’s role as cutting taxes, strengthening the in reducing poverty and increasing safety net, and fighting climate mobility and ways to make it more change—and then lets them choose affordable and accessible. In an from a menu of tax and spending influential op-ed in theLos Angeles options in pursuit of those goals. Times, he argued for a fundamental With each selection, the game rethinking of how higher education calculates the effect on the national is delivered. His proposal would debt, allowing players to see poten- transform the college experience tial paths to fiscal sustainability in real time. In the first three months after its launch, Fiscal Ship was played over 48,000 times, bringing the realities of federal budgeting to PHOTO: PAUL MORIGI a wide audience.

Explore beyond the highlights. » Visit brookings.edu/program/economic-studies and follow @ BrookingsEcon 13 PHOTO: HALIL FIDAN/ANADOLU/GETTY IMAGES

PROMOTING PEACE AND SECURITY IN TURBULENT TIMES

fter the end of the Cold program are conducting rigorous Michael O’Hanlon, Harold War, the world experienced research and analysis to articulate Trinkunas, Ted Piccone, Teresita and Amore than two decades and disseminate actionable policy Howard Schaffer, and Cheng Li—in of relative peace, prosperity, and solutions. the “Geopolitics in the 21st Century” stability. But in the last several series; and several policy paper series years, the international community Order from Chaos are in development, covering China FOREIGN POLICY POLICY FOREIGN has witnessed a return to great In 2016, the Foreign Policy program and East Asia, the Middle East, and power competition, with Russia’s launched a year-long initiative Europe/Russia. aggression in Ukraine and mounting examining the key issues facing the tensions between China and the United States and the international Addressing the Syrian Crisis United States in the South China community. The project will cul- The Syrian civil war is generating Sea. Rising violence in the Middle minate in February 2017 with a set one of the worst humanitarian crises East contributes to regional and of policy recommendations for the since the end of the Cold War. To even global instability. Europe, too, incoming U.S. Administration. The help increase understanding of faces multiple challenges, with Order from Chaos project seeks to this crisis, Brookings convened a terrorist attacks, large refugee flows, produce incisive analyses and action- high-level forum in June 2016 that and the British vote to separate able strategies to enable the United featured Senator John McCain from the European Union. To help States to shape, defend, and adapt (R-Arizona), David Miliband, make sense of these developments the liberal international order for the president of the International Rescue and devise possible paths forward, 21st century. Five books out of 14 Committee, and Brookings’s Leon experts in the Foreign Policy have already been published—by Weiseltier, along with more than 100

14 A DECADE OF FOCUSED WORK ON CHINA

In 2016, the John L. Thornton China Center celebrated ten years of high-impact research, analysis, dialogue, and publications that focus on China’s emergence and its implications for the United States, Asia, and the rest of the world. Led by Senior Fellow Cheng Li, the Thornton China Center’s scholars in Washington and at the Brookings-Tsinghua Center in Beijing examine a range of issues, including China’s economy and trade, its domestic challenges, energy policy, and foreign policy.

PHOTO: XIAOJUN HOU XIAOJUN PHOTO: To mark this anniversary, the Thornton China China State Councilor Yang Jiechi (LEFT) and Co-Chair of the Brookings Board John Center established the Brookings China Thornton arrive at a gala dinner celebrating Brookings’s centenary and the 10th Council, a high-level group that lends its anniversaries of the John L. Thornton China Center and the Brookings-Tsinghua Center experience and perspective to support work on China and U.S.-China relations. The Council includes select leaders from the U.S. and policymakers, diplomats, activists, ISIS challenge, and providing China who help Brookings further expand its and scholars, including the Deputy concrete analysis and policy options independent policy research on a wide range Secretary of State for Management to the United States and key allies of contemporary policy issues impacting (who oversees refugee resettle- in the counter-ISIS coalition, as China and the United States. ments). The two-day conference well as to those looking to the focused on options for ending the eventual reconstruction of Syria Honorary Co-Chairs Syrian conflict, the role of front- and western Iraq. John L. Thornton, Co-Chair, Brookings line states like Jordan and Turkey Board of Trustees and European cities in coping An Experts’ Dialogue on Qiu Yong, President, Tsinghua University with refugees, and the current and Political Islam future strength of the international Five years ago, the Arab Spring Founding Members refugee regime. ushered in the first opportunities Michael Ahearn, Founder and Managing for Islamist movements to assume Partner, True North Venture Partners and TÜSI˙AD Senior Fellow Kemal political power. The divergent Chairman, First Solar Kiris¸ci, director of the Turkey experiences of Islamic parties in Anla Cheng, Senior Partner, Sino-Century Project, and Nonresident Senior Tunisia and Egypt, together with the China Private Equity Fellow Beth Ferris took a closer look rise of the Islamic State’s extrem- Feng Deng, Founding Managing Director, at the long-term economic, political, ist version of religious rule, have Northern Light Venture Capital and social implications of the crisis. James Ding, Managing Director, GSR Ventures Their book, The Consequences of Jon Huntsman, Chairman, Atlantic Council Chaos, the first of Brookings’s new Neil Shen, Founding Managing Partner, Marshall Paper Series, examines Sequoia Capital China the relationship between action to Michael Sweeney, President and CEO, resolve conflict and the limits of Steinway Musical Instruments, Inc. humanitarian responses to address Tang Xiaodan, Chairman and President, political crises, and outlines policies Silversun Group to help refugees become productive Jerry Yang, Partner, AME Cloud Ventures members of their new communities. Yang Yuanqing, Chairman & CEO, Lenovo Group Limited With Senior Fellow John Allen in Zhang Chi, Founder & Chairman, Sinom Group place as co-director of the Center for 21st Century Security and Founding Corporate Members Intelligence, Brookings scholars are DSM China examining the myriad dimensions Facebook of the Iraq and Syria crisis and the MORIGI PAUL PHOTO: President of Indonesia Joko Widodo speaks about his country’s place in a changing world 15

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Susana Malcorra, Chief of Staff to the UN Secretary-General, assesses threats to global cooperation

UNDERSTANDING THE RISE OF ISIS PHOTO: IRAQI MINISTRY OF DEFENSE MINISTRY IRAQI PHOTO: In less than two decades, the Islamic State Senior Fellow Kenneth Pollack (LEFT) meets with Iraqi Minister of Defense has gone from a small group loyal to al Khaled al-Obaidi in Baghdad Qaeda to one of the most vicious terrorist organizations in modern history. To help understand this transformation, Senior Fellow Will McCants drew on primary sources in Arabic, including both ancient religious texts and al Qaeda and Islamic State communications, to write The ISIS Apocalypse: The History, Strategy, and Doomsday Vision Vice President of the of the Islamic State (St. Martin’s Press, European Commission 2015). The book explores how ISIS leaders Kristalina Georgieva promoted a vision of a new caliphate to describes Europe’s attract an army of fighters to claim exten- evolving foreign policy sive territory and maintain a brutal hold PHOTO: STEVEN E. PURCELL over people in Syria and Iraq. In recognition of his contributions to the policy debate over how to respond to ISIS, POLITICO named him to the POLITICO50, its annual list of the top thinkers, doers, and visionaries (FROM LEFT) Prior to transforming American politics. his remarks, President of Honduras Juan Orlando Hernández confers with Executive Vice President Martin Indyk and Senior Fellow Harold Trinkunas, Director of the Latin America Initiative PHOTO: PAUL MORIGI

“As Brookings marks 100 years, it is appropriate to mention that this institution has always served as an independent and high-level forum for ideas, for

PHOTO: PAUL MORIGI PAUL PHOTO: thoughts, for scholarly discourse and a place for General John Allen (Ret.), co-director of the open and honest debate. The country and specifically Center for 21st Century Security and Intelligence, discusses Syria and the war on the Islamic State Congress are better for it.”

SENATOR JOHN MCCAIN (R-AZ) 16 “As Brookings marks 100years, itisappropriate to Congress are better for it.” open andhonest debate. The country andspecifically thoughts, for scholarly discourse andaplace for an independentandhigh-level forum for ideas, for mention thatthisinstitution hasalways served as SENATOR JOHNMCCAIN (R-AZ)

PHOTO: PAUL MORIGI over thepastyear:frictionswith experienced aprofoundsetofcrises project ofEuropeanunificationhave European nationsandthehistoric Alliances inEurope Understanding Shifting off arobustpublicdebate. with theirownperspectives,setting and activistswereinvitedtorespond across 12countries.Islamistleaders lution of mainstream Islamist groups who systematicallyassessedtheevo- a seriesofreportsbyrisingexperts Rethinking Political Islamproject, the IslamicWorld conceivedthe Project onU.S.Relationswith Hamid andWill McCantsofthe movements. SeniorFellows Shadi to understandandrespondthese new imperativesforpolicymakers on politicalIslamandgenerated challenged theconventionalwisdom Senior Fellow Beth Ferris discusses theU.S. response to theSyrian Refugee Crisis Middle East Policy, andVisiting Fellow Robert L.McKenzie listen asNonresident (FROM LEFT)Senior Fellow Daniel Byman, Research Director for theCenter for Foreign Policy Bruce Jones Vice President andDirector of to betterunderstandtheBrexit. helping thepublicandpolicymakers tary inU.S.andEuropeanmedia, has providedextensivecommen- on InternationalOrderandStrategy, director ofForeign Policy’s Project Opinion section.ThomasWright, Washington Post’s newGlobal as aregularcontributortothe role withintheEU,mostrecently and Germany’s growingleadership current challengesfacingEurope has writtenextensivelyaboutthe Fellow ConstanzeStelzenmüller U.K. vote.RobertBoschSenior of implicationsresultingfromthe initiative toassessthecomplexset and isleadingaBrookings-wide and debateonthesehistoricevents the Institution’s research,analysis, Senior Fellow FionaHill,hasled Europe, undertheleadershipof Center ontheUnitedStatesand attempt anditsaftermath.The leave theEU;andTurkish coup terrorist attacks;Britain’s voteto influx ofSyrianrefugees;multiple an emboldenedRussia;amassive » and follow @BrookingsFP Visit brookings.edu/program/foreign-policy Explore beyond thehighlights. PHOTO: STEVEN E. PURCELL FOREIGN POLICY Forum 2015 Chairman of Israel’s Yesh Atid Party, attheSaban for MiddleEast Policy (LEFT),andYair Lapid, Senior Fellow Tamara Wittes, Director of theCenter THE IRAN NUCLEARDEAL INFORMING THEDEBATE OVER Hillary Clinton andaBrookings Debate speech onIran by former Secretary of State on theIran deal, includingthefirst major convened publicevents andprivate forums the agreement. Inaddition,Foreign Policy particularly valuable to theirassessment of drawn praise from members of Congress as essay, "Debating theIran Nuclear Deal," has of theaisle. Einhorn's August 2015 digital for members of Congress onboth sides Department officials and numerous briefings consultations withWhite House andState challenges of ourtimethrough regular address oneof themost complex security Maloney, andKenneth Pollack helped like Senior Fellows Robert Einhorn,Suzanne ground amongU.S. policymakers, scholars tisan divideoffered little room for common the Iran nuclear agreement. Even asthepar in shapingthedebate andpolicies around Foreign Policy’s experts played apivotal role Riedel, andMaloney. Brookings's impact on with Senior Fellows Leon Wieseltier, Bruce featuring Senator JohnMcCain (R-Arizona) Iran andthebroader Middle East. numerous reports, andablogdedicated to research onIran, includingfive books, the Iran issue draws onadecade of in-depth

PHOTO: RALPH ALSWANG GLOBAL ECONOMY 18 AND DEVELOPMENT U BETTER POLICY FOR SUSTAINABLE GROWTH THROUGH A DECADE OFIMPROVING PROSPECTS experts areprovidinganalysis and Meetings, amongothers.Brookings and theWorld Bank/IMF Annual Board totheUNLeadersSummit G-20 andtheFinancialStability critical globaldebates—fromthe that areinstrumentalinadvancing with theinstitutionsandprocesses tenth year, theprogramisengaged interconnected world.Nowinits leave noonebehindintoday’s to helpdesignpoliciesthatwould tainable globalgrowthandworking strengthening thedriversofsus- their researchandengagementon Development programarefocusing in theGlobalEconomyand Director HomiKharas,experts M. BernsteinScholar, andDeputy Kemal Dervis¸, theEdward President andDirector nder theleadershipofVice Conference oftheParties (COP21) Agreement onclimateatthe Agenda 2030,andtheParis General Assembly Summiton (SDGs) attheUnitedNations Sustainable DevelopmentGoals opment, theadoptionof Agenda onfinancingfordevel- the AddisAbabaAction including major internationalagreements, The pastyearfeaturedaseriesof Development A New Agenda for Global and sustainability. education, newskills,inclusiveness, with aspecialfocusonproductivity, formation oftheworldeconomy, deal withthetechnologicaltrans- pathways outofpoverty, andhelp economic cooperation,improve recommendations tofosterglobal development outcomesinformed sustainable infrastructurefor good contributions ontheimportance of the secondSDG.Brookings’s resource allocationsforachieving used tomapneeds,policies,and showcased howevidencecouldbe team ledbyKharasandMcArthur Ending RuralHungerauthoredbya successful deliberations. A reporton considerations thatwentintothe and writingextensivelyaboutthe broader globaleconomicagenda, agendas, bridgingthelinksto the developmentandclimate tivity andcontinuitythroughout technical input,buildingconnec- processes, providinganalysisand were engagedineachofthese Homi Kharas,andJohnMcArthur Bhattacharya, scholars Amar ministerial meeting.Brookings PHOTO: SERGIO PEREZ/REUTERS

“Brookings has played a key role in the transformation of the aid discourse from a technical into a political exercise, with aid now seen as one of the most important tools in the foreign policy toolbox. We simply cannot do without Brookings’s SUSTAINING GLOBAL’S intellectual leadership.” WORK FOR A DECADE

ERIK SOLHEIM, EXECUTIVE DIRECTOR, UNITED NATIONS ENVIRONMENT PROGRAMME Global Economy and Development became Brookings’s fifth research program in 2006, growing out of a joint center of the Foreign Policy and Economic Studies programs. the discussions around multilateral Richard C. Blum and the William finance for climate investments at and Flora Hewlett Foundation made Paris, and were also for the first time founding commitments to help the subject of formal discussion launch the program and ensure that it had the resources to develop amongst central bank governors. a comprehensive agenda and set Senior Fellow and Director of the of activities to frame the debate on Africa Growth Initiative Amadou global development and advance Sy examined ways to address the practical policy proposals. Richard specific development challenges in Blum has continued to provide Africa through new and innovative generous support through the financing mechanisms, particularly annual Brookings Blum Roundtable domestic resource mobilization. on Global Poverty. The Hewlett Foundation, which is celebrating its Scaling Up Innovations own 50th anniversary this year, has in Education continued to be a generous sup- Under the leadership of Senior FARMER SHARON PHOTO: porter of Global (as well as other Fellow and Director Rebecca programs at Brookings), with grants Winthrop, the Center for Universal for crucial operating support and to Education is focused on making the Center for Universal Education. quality education available to Brookings is grateful for the vision children all over the world, especially shown by Richard Blum and the in developing countries. A key part of Hewlett Foundation in making their early investments in Global the Center’s research agenda involves Christine Lagarde, Managing Director of the identifying successful interventions International Monetary Fund, discusses the and their continued engagement that can be scaled up or adopted in post-2015 development agenda with Senior as the program has grown over other places. The report Millions Fellow Amar Bhattacharya the past decade. Learning: Scaling Up Quality Education in Developing Countries, authored by Winthrop and Fellow Jenny Perlman Robinson, explores the challenges education policymakers around the world face as they attempt to effectively scale up quality learning strategies. The publication outlines how scaling, which can be a trial and error effort, often occurs when new approaches and ideas are allowed to develop at the local level on the margins and then spread more broadly across the education system. A series of in-depth case studies accompanied the release of the report, which was launched at a PHOTO: STEVEN E. PURCELL STEVEN PHOTO: conference at Brookings. Senior Fellow Eswar Prasad, the New Century Chair in International Trade and Economics

19 Lessons from Latin America impact of a more difficult external for Africa: The Role of economic environment for many External Factors African economies, particularly in Nonresident Senior Fellow and terms of lower commodity prices, Director of the Brookings Global- China’s slowdown, and tighter CERES Economic and Social Policy financial conditions for emerging in Latin America Initiative (ESPLA) economies. Given the importance of Ernesto Talvi has long been taking external factors in explaining output the pulse of Latin America’s fluctuations in sub-Saharan Africa, economy through an innovative a key policy recommendation is macroeconomic model that factors that, to properly evaluate a coun- in the evolving global context. try’s fundamentals, policymakers Building on this work, Talvi part- should assess structural indica-

PHOTO: ALEX IRVIN PHOTO: nered with Amadou Sy, senior fellow tors related to fiscal and external Vice President and Director of Global Economy and Development and director of the Africa Growth sustainability. This research was Kemal Dervis¸ discusses the future of work in the developing Initiative (AGI), to apply this discussed at AGI’s inaugural Risks world at the 2016 Brookings Blum Roundtable on Global model to the sub-Saharan African Roundtable, which convened senior Poverty, along with Tara Nathan, Executive Vice President context. Their research finds that policymakers, private sector leaders, for Public-Private Partnerships at MasterCard, and Mike almost half of sub-Saharan Africa’s academics, and other stakeholders Kubzansky, Partner, Omidyar Network (FROM RIGHT). output fluctuations since 1998 on the margins of the spring IMF/ can be explained by a small set of World Bank meetings. external factors. The region’s current growth slowdown largely reflects the

REFLECTIONS ON PROGRESS

For over six years, Vice President and Director of Global Economy and Development Kemal Dervis¸ has been a regular columnist for Project Syndicate, which publishes analysis and commentary on a range of policy topics. His recent columns have explored issues like European prospects after Brexit, overcoming slower global growth, “helicopter money” fiscal policy, and a new way of introducing a carbon tax, among others. In September, most of his columns were collected and published in a single volume. Reflections on Progress: Essays on the Global Political Economy represents an easily digestible overview of how the most pressing issues in the global economy have evolved over recent years and offers practical policy prescriptions for confronting them, making it an important FARMER SHARON PHOTO: resource for policymakers, the media, and Finance Minister of South Africa Pravin Gordhan outlines strategies for an inclusive the public seeking to better understand economy in his country with Senior Fellow and Director of the Africa Growth economic challenges and opportunities. Initiative Amadou Sy (LEFT)

20 GLOBAL ECONOMY AND DEVELOPMENT PHOTO: ALEX IRVIN PHOTOGRAPHY ALEX IRVIN PHOTO:

Former Secretary of State Madeleine Albright at the 2016 Brookings Blum Roundtable on Global Poverty PHOTO: STEVEN E. PURCELL STEVEN PHOTO:

Nonresident Senior Fellow Ernesto Talvi, Director of the Brookings-CERES Economic and Social Policy in Latin America Initiative, introduces a panel on IMPROVING FINANCE FOR developing a new trade agenda for the Americas GLOBAL EDUCATION

The Center for Universal Education (CUE) has brought visibility to the areas of global, innovative, and domestic education financing through new research and engagement, which was featured at the Oslo Summit on Education for Development in the summer of 2015. Work by CUE Fellow Liesbet Steer directly informed the establishment of the International Commission on Financing Global Education Opportunity co-convened by Prime Minister of Norway Erna Solberg, President of Chile Michelle Bachelet, President of Indonesia Joko Widodo, President

PHOTO: COURTESY OF PRATHAM OPEN SCHOOL OF EDUCATION OPEN SCHOOL OF PRATHAM COURTESY PHOTO: of Malawi Peter Mutharika, and Senior Fellow Rebecca Winthrop, Director of the Center for Universal Education the Director-General of UNESCO (BACK ROW, CENTER), and Research Assistant Priya Shankar (FRONT ROW, Irina Bokova. Gordon Brown, UN CENTER) with students and faculty from the Pratham Open School of Education in Special Envoy for Global Education, India and colleagues from tGELF, an education foundation is serving as chair, and Steer now serves as Director of Research

for the effort. CUE also contrib-

P uted as a research partner to the

O Commission. The Commission's

A final report and recommendations

O were released during the UN General

G I

O Assembly meetings in fall 2016.

C O

U Senior Fellow Homi Kharas

H presenting the Ending Rural

D E Hunger report at the Food and

P E C I Agriculture Organization in Rome N E

Explore beyond the highlights. Visit brookings.edu/ » program/global-economy-and-development and follow @ BrookingsGlobal 21 PHOTO: BARBARA KALBFLEISCH / SHUTTERSTOCK.COM

THE CAUSES AND CONSEQUENCES OF A UNIQUE ELECTION YEAR

he 2016 presidential they are selected and their free- Kamarck focused on explaining how campaign will go down as dom to vote for the candidates of we nominate our presidential can- Tone of the most unusual their choice. Senior Fellow Elaine didates, several other Governance in American history. On the Kamarck, director of the Center Studies scholars turned their atten- Republican side, real estate devel- for Effective Public Management, tion to the history, demography, and oper and reality TV star Donald published a new edition of Primary ideology that seemed to be driving Trump bested a field of 16 rivals Politics: Everything You Need to voters in this election. to secure the nomination. For the Know about How America Nominates Democrats, former Secretary of Its Presidential Candidates to explain Fighting “Sextortion” State Hillary Clinton prevailed over how the presidential nominating In recent years, communities across

GOVERNANCE STUDIES STUDIES GOVERNANCE Vermont Senator Bernie Sanders system came into its current form. the country have experienced an after a protracted primary campaign As Super Tuesday loomed in early alarming increase in a new and that saw his insurgent candidacy 2016, Kamarck moderated a public troubling digital crime: “sextortion.” energize a large number of voters, event that previewed the nascent Sextortion occurs when offenders use especially young people. primary season and how it could personal information—often images impact the general election, political stolen from a computer or obtained As candidates in both parties scram- polarization, and governance. And by hacking into an unsuspecting bled to secure delegates (and on the throughout the primary season, she individual’s webcam—to force Democratic side, super delegates), emerged as one of the media’s go-to victims to produce additional sexually there was renewed interest in the sources of information and expertise explicit material. Victims, oftentimes sometimes-arcane rules about how on this complex process. While children, are deeply traumatized, of

22 PHOTO: SHARON FARMER SHARON PHOTO: PHOTO: PAUL MORIGI PAUL PHOTO:

Gerard Robinson of AEI (LEFT) and DeRay McKesson of Black Lives Matter examine Journalist Cokie Roberts (LEFT) and Senior Fellow the intersection of race and education in 2016 Emeritus Stephen Hess discuss American political dynasties

SUPPORT FOR RESEARCH ON DIGITAL FINANCIAL INCLUSION

New technologies hold tremendous promise for increasing access to financial services across a wide swath of underserved people in developing countries. Making that a reality requires a significant commitment from national governments and the private sector. With this in mind, the Center for Technology Innovation launched the Financial and Digital Inclusion Project (FDIP), which is co-led by Vice President and Director Darrell West and Nonresident Senior Fellow John Villasenor. Thanks to a generous three-year grant from the Bill &

PHOTO: PAUL MORIGI PAUL PHOTO: Melinda Gates Foundation, scholars undertook Senior Fellow Benjamin Wittes (LEFT) a large-scale study of 21 geographically and welcomes Associate Supreme economically diverse countries that had Court Justice Stephen Breyer to a recently made significant commitments conversation about his new book, The to financial inclusion. The 2015 FDIP Report Court and the World: American Law and Scorecard provided an empirical and the New Global Realities measurement of each country’s progress in 33 distinct areas. It was first in a series of publications intended to provide policymakers, the private sector, non- governmental organizations, and the general public with information that can help improve financial inclusion in these

G I R countries and around the world. O M

Fellow Molly E. Reynolds L U A P : shares her views on budget O T O H priorities and process P

23 course. But despite the serious legal Evidence suggests they have been and societal consequences of sextortion, successful. This groundbreaking this new sex crime of the digital research was featured by The New age is almost entirely unstudied. A York Times, The Atlantic, npr, and 2016 Brookings report, “Sextortion: ABC News, among many others. Cybersecurity, Teenagers, and Remote Within days of the report’s release, Sexual Assault,” represents the first Representative Katherine Clark effort to examine the issue in depth. of Massachusetts and Senator Barbara Boxer of California released Recognizing the need to bring this statements citing the research and issue to the attention of parents and calling for immediate action to lawmakers, Brookings researchers, combat crimes of sextortion. led by Senior Fellow Benjamin L L E C Wittes, conducted a comprehensive The Power of Explanatory R U P . E survey of public court records and Journalism N E V TE S examined the methods used by Explanatory journalism sits as a O: OT PH perpetrators and the prosecutorial counterweight to the breaking news, Vice President and Director of tools authorities have used to bring in-the-moment type of journalism Governance Studies Darrell West offenders to justice. By highlighting that offers readers speed over the scale and scope of the prob- nuance. Its newfound popularity lem, the authors hoped to raise and adoption across the industry awareness, spur a close look at the belies a long history and tradition of laws under which these cases are journalists offering deep, engaging, THE TRANSFORMATION prosecuted, and ultimately intro- detailed accounts of important OF CONSERVATISM IN duce federal legislation to combat issues and events. Brookings delivers THE UNITED STATES this evolving crime. ideas and recommendations to

Conservative politics has transformed dramatically over the last 50 years, as an increasingly radical movement supplanted a more moderate Republican Party. In Where the Right Went Wrong, Senior Fellow E.J. Dionne, Jr., who holds the W. Averell Harriman Chair, traces the history of this evolution from Barry Goldwater’s 1964 presidential campaign through the rise of the Tea Party and Donald Trump in the first part of the 21st century. His in-depth analysis illustrates E. PURCELL STEVEN PHOTO: how increasing calls for ideological Commissioner for Justice, Consumers, and Gender Equality for the European purity have made it more difficult Commission Veˇra Jourová (LEFT) talks about U.S.-EU data transfer with Cam Kerry, the Ann R. and Andrew H. Tisch Distinguished Visiting Fellow to attract voters to conservatism. Dionne concludes the book with a chapter that looks ahead to how a moderate Republican Party might be revived. PHOTO: STEVEN E. PURCELL STEVEN PHOTO:

Senior Fellow John Hudak (LEFT) and Representative Earl Blumenauer (D-Oregon) make the case for rescheduling marijuana at a Brookings Debate 24 GOVERNANCE STUDIES

IMPROVING CORPORATE GOVERNANCE

The rise of non-cash compensation for top executives and the growing clout of activist investors has led to an increased focus on quarterly profits and earnings over the kinds of investments that lead to long- term value and sustainable growth. Senior Fellows William Galston, the Ezra K. Zilkha Chair in Governance Studies, and Elaine Kamarck, founding director of the Center for Effective Public Management, pub- PHOTO: PAUL MORIGI PAUL PHOTO: lished “More Builders and Fewer Prime Minister of the Czech Republic Bohuslav Sobotka (LEFT) and Visiting Fellow Norman Eisen explore challenges to the future of the EU Traders,” an influential paper that argues that this trend is crowd- ing out investments in research and development and depress- readers using a similar format and Leonhardt, founding editor of the ing wages, and could harm the shares the common goal of commu- Upshot at The New York Times; economy’s long-term prospects. nicating ideas of great consequence Max Ehrenfreund, writer for The Galston and Kamarck propose a in a thoughtful manner. The Washington Post’s Wonkblog; Amber set of policy steps designed to rein benefits are far-reaching and play Phillips, political blogger for The Fix in share buy-backs and stock and a serious role in improving public at The Washington Post; and Ezra options awards as compensation, knowledge and contributing to a Klein, founder of Vox.com. Dionne, as well as changing corporate more informed populace. For that who brings the perspective of both reporting practices to focus more reason, Governance Studies turned a scholar and a journalist, intro- on the long term. Their paper its attention to understanding better duced the video series. A week-long reached important audiences, the functionality and the impact of series of blog posts accompanied and their recommendations were explanatory journalism. the videos, providing an additional echoed in the economic platform layer of analysis. Contributors to of Hillary Clinton’s presidential The explanatory journalism project, the series included The Washington campaign. which debuted in February 2016, Post’s Terri Rupar, among others. aligns with the program’s ongoing work examining the intersection of media and democracy. Taking a cue from the research subject, scholars presented their analysis “It is my great honor to speak on the premises of such in a unique, multimedia fashion. a prestigious organization as the Brookings Institution, Senior Fellows John Hudak, Tom Mann, and E.J. Dionne, Jr. con- and I would like to sincerely congratulate you on your tributed to the effort, the core of anniversary and wish you another 100 years under the which was a series of on-camera interviews with leading practitioners famous slogan of quality, independence, and impact.” of explanatory journalism: David BOHUSLAV SOBOTKA, PRIME MINISTER OF THE CZECH REPUBLIC

Explore beyond the highlights. » Visit brookings.edu/program/governance-studies and follow @ BrookingsGov 25 26 METROPOLITAN POLICY PROGRAM N leaders in more than a dozen states, leaders inmorethanadozenstates, 30 U.S.citiesandmetropolitan areas, cross-sector leadersinmorethan Policy, theMetro Programworkswith Chair inUrbanandMetropolitan the Adeline M.and Alfred I.Johnson Vice PresidentandDirector Amy Liu, Brookings. Undertheleadershipof support fromtheMetroProgramat ways withdata,analysis,andhands-on solving problemsintransformative already buildingrelationshipsand opportunity. Citiesandmetrosare ing stagnantgrowthandunequal partners intheurgenttaskofaddress- works for all.Cities are crucial,proven build anadvancedeconomythat help citiesandmetropolitanregions delivers researchandsolutionsthat THAT WORK FOR ALL BUILDING VIBRANT CITIES Program (Metro Program) Program (MetroProgram) Brookings MetropolitanPolicy ow inits20thyear, the

how the 100 largest metropolitan how the100largestmetropolitan empirical foundationforevaluating the Associate RichardShearerdeveloped Alan BerubeandSeniorResearch the MetropolitanPolicy Program Fellow andDeputyDirectorof forward. To meetthisneed,Senior of theirdevelopmenteffortsgoing currently standandthetrajectory data tounderstandbothwherethey achieve economicsuccessneedsolid Metropolitan leadersseekingto through Data Advancing Economic Success for allitscitizens. and ensureamoreprosperousfuture address society’s greatestchallenges and ideasintotangibleactionsthat audiences totranslateevidence and keynationalinternational to provide an Metro Monitortoprovidean

metropolitan leaders valuable tools metropolitan leadersvaluable tools Taken together, thesedata give to theUnitedStatesasawhole. graphs showinghoweachcompares and ten-yearperiods,withindexed different metroareasoverone-,five-, graphics thatenablecomparisonsof Metro Monitorprovidesinteractive In additiontoawrittenreport,the nation’s largestmetropolitanareas. metro area’s performanceamongthe overall scorethatisusedtorankthe a setofindicatorstodevelopan categories, theMetroMonitoruses and inclusion.Within eachofthese development: growth,prosperity, areas thatarecriticaltoeconomic The ties tolearnfromsuccessfulcities. faring andwherethereareopportuni- economies intheUnitedStatesare measures three Metro Monitormeasuresthree PHOTO: CHRISTIAN MUELLER/SHUTTERSTOCK.COM INVESTING IN HELPING THE URBAN UNEMPLOYED

Despite ongoing recovery from the Great Recession and the return to pre-financial crisis levels of unemployment, many cities and metropolitan areas continue to struggle with joblessness. Within dis- tressed communities, many people face particular barriers to employment, such as disability, low levels of education, English proficiency, childcare PHOTO: PAUL MORIGI PAUL PHOTO: responsibilities, and limited work history. Helping Vice President and Director of the Metropolitan Policy Program Amy Liu leads a conversation on competitiveness and inclusion in cities with the Honorable Salomon these “hard to hire” individuals enter the workforce Chertorivski, Secretary of Economic Development for the Federal District of Mexico will require a combined effort by the public and private sectors and support organizations that can stimulate demand for labor and equip them with the “The enduring value of the [Global Cities Initiative] work skills they need to succeed.

has been not just to convene some of these top 100 To facilitate those efforts, Brookings launched metropolitan areas, but to deputize us—to imbue us with an 18-month pilot project made possible by the generosity of Brookings Trustee Pete Higgins, a sense of the critical role of these cities in the future founder of Second Avenue Partners in Seattle, and of countries vying to be counted among the leaders and his wife Leslie. This unique project aims to help innovators of the 21st century.” local leaders understand how best to connect the unemployed to work, first by defining who those JEANINE DUNCLIFFE, DIRECTOR OF INTERNATIONAL ECONOMIC DEVELOPMENT, LOUISVILLE FORWARD individuals are and what characteristics they share. Using nationally available data, Brookings is creating localized profiles of out-of-work populations to assess their areas’ progress toward exports and attracting investment, for the U.S.’s 100 largest cities and counties that shaping an advanced economy that and forge international city-to-city will put the challenge of each city’s unemployment works for all. connections that can undergird in the context of the wider local labor market. strong trade relationships. The project is also assembling an inventory of Enabling Growth by Connecting proven and promising programs that are helping to connect different segments of the out-of-work Global Cities This year, the Global Cities Initiative population to labor market opportunity. In addi- The Global Cities Initiative: A expanded on its previous research tion to producing a report and interactive data Joint Project of Brookings and on U.S. cities to develop a series visualization on the Brookings website, the Metro JPMorgan Chase is a five-year of profiles on the global economic Program will convene roundtables where the proj- effort designed to help metropolitan competitiveness of international ect’s findings will be shared and tested against the leaders grow their regional econo- metropolitan economies. Starting real-world experiences of practitioners in the field. mies by strengthening international with a report on Stockholm, Sweden, Brookings is grateful to Pete and Leslie Higgins for connections and competitiveness. and followed by reports on South their generous investment in this important work. With the vast majority of global Africa’s Gauteng City Region, economic growth continuing to take which includes Johannesburg, place outside the United States, and Santiago, Chile, the Initiative global trade has taken on increased benchmarked each metropolitan importance for metropolitan leaders. area’s key global assets and identified To help cities understand how best areas for public- and private-sector to tap into these new opportunities, focus. In the Stockholm Region, the the Global Cities Initiative, under report’s recommendations, along the leadership of Vice President and with a roundtable with leaders from Fellow Joseph Director Amy Liu, works to provide Chicago, London, Minneapolis, Parilla presents clear information about metro areas’ Philadelphia, and San Diego involved the findings of the P H competitive assets and advantages, in the Global Cities Initiative, O Global Santiago T O : support strategies for increasing informed the design of a new export A report in Chile A W A R M P HO TO 27 RESHAPING ECONOMIC DEVELOPMENT STRATEGIES

In any economy, top-line economic growth does not necessarily mean bottom-line prosperity, nor does it guarantee that the benefits of growth will be shared broadly. Local leaders seeking to build an advanced economy that works for all need an improved understanding of the purpose of economic development, and how to align markets and FARMER SHARON PHOTO: civics to deliver continuous growth and pros- Ana Galeas (RIGHT) shares her experience as a participant in Washington, DC’s Mayor Marion S. Barry Summer Youth Employment Program during a panel perity. “Remaking Economic Development,” discussion on improving youth summer jobs programs that also included former a report by Vice President and Director Mayor of Philadelphia Michael Nutter Amy Liu, offers a compelling new vision for local and regional economic development. Liu identifies five action principles that can strategy led by the Stockholm To explore these new initiatives and help regions realize this vision: set the right Chamber of Commerce. In the their relevance to regional efforts, goals, grow from within, boost trade, invest Gauteng City Region, the report pro- the Metro Program convened a in people and skills, and connect place. vided evidence and direction for the February 2016 dialogue between The Metro Program complemented the province’s new economic develop- U.S. Department of Housing and report with a series of blog posts by experts ment framework. These profiles are Urban Development Secretary and practitioners around the country who offering regional leaders around the Julián Castro and U.S. Department shared their own experiences with put- globe with innovative roadmaps to of Transportation Secretary Anthony ting these principles into practice. Many of strengthen their global connections Foxx. Following their conversation, these experiences took shape under the and competitiveness. a response panel of experts from Brookings-Rockefeller Project on State Baltimore, Chicago, and Kansas and Metropolitan Innovation, which culmi- Promoting Pathways City discussed how these federal nated in 2015. Generously supported by the to Opportunity initiatives come to ground in their Rockefeller Foundation, that five-year effort Two important factors connecting metropolitan areas. These efforts enabled the Metro Program to help regions communities to employment, educa- form the backdrop for multiple around the country move toward more sus- tion, and vital services are affordable research projects in the Metro tainable economic growth strategies. housing and transportation. By using Program, including the Moving to these tools to improve access to jobs, Access initiative led by Fellow Adie regions can ameliorate problems like Tomer and Global Economy and segregation, concentrated poverty, Development Senior Fellow Jeffrey and low-density sprawl that pose Gutman, and Fellow Elizabeth real barriers to economic progress Kneebone’s research on concen- for low-income families and people trated poverty and strategies for of color. To further such efforts, improving affordable housing supply the Obama administration recently in high-opportunity communities. launched new initiatives in fair housing and transportation access to help tackle local barriers to opportunity.

PHOTO: PAUL MORIGI PAUL PHOTO: Washington, DC Mayor Muriel Senator Cory Booker (D-New Jersey) (RIGHT) Bowser talks about her city’s discusses the role of broadband access in maximizing place in the global economy at the opportunity with Senior Fellow Rob Puentes, Director launch of a new report on Greater

I G of the Metropolitan Infrastructure Initiative Washington’s economic assets I R O M L U A P : O T O 28 PH METROPOLITAN POLICY PROGRAM

RHODE ISLAND INNOVATES: A COMPETITIVE STRATEGY FOR THE OCEAN STATE

Over the last two decades, Rhode Island lost jobs in high-technology advanced industries faster than any other state, leaving public and private sector leaders looking for new ideas to accelerate growth. State leaders called on Metro Program Senior Fellow and Policy Director Mark Muro and Brookings Centennial Scholar Bruce Katz

PHOTO: PAUL MORIGI PAUL PHOTO: to help them assess Rhode Island’s eco- Secretary of Housing and Urban Development Julián Castro (LEFT) and nomic health and develop a new approach to Secretary of Transportation Anthony Foxx share their views on how housing and achieve higher-quality economic growth. The transportation connect communities to employment, education, and vital services resulting report, “Rhode Island Innovates: A Competitive Strategy for the Ocean State,” identifies five growing advanced industry competitive advantages—biomedical innovation, cyber and data analytics, maritime technology and manufacturing, advanced business services, and design and custom manufacturing. These are complemented by the state’s excellent universities and research facilities, which produce both skilled workers and new innovations.

To take advantage of these strengths, Muro and Katz recommend that Rhode Island invests in bringing more applied

PHOTO: COURTESY OF THE CITY FREMONT COURTESY PHOTO: research and commercial-oriented fac-

Members of the Brookings Metro Program touring the Tesla factory ulty to its anchor institutions and more in Fremont, California workers with STEAM (science, technology, engineering, arts, and mathematics) skills into its workforce. They further argue that the state should develop innovation dis- tricts that concentrate assets needed for Metro Monitor map renewed prosperity and take advantage of illustrating how the U.S.’s Rhode Island’s quality of place. In addition, 100 largest metropolitan to increase competitiveness, the state areas rank in five-year should streamline its tax code, reform its economic growth. Metro regulatory environment, and invest in infra- Monitor’s interactive structure that supports growth. These and data visualization tools other policy recommendations were pre- on the Brookings website allow users to compare sented and discussed at events held in the performance in growth, state, including some attended by Governor prosperity, and inclusion Gina Raimondo. The Governor has since included some of the recommendations GROWTH IN THE 100 LARGEST METRO AREAS, 2009 TO 2014 from the report in the state budget and has Rank among the 100 largest metro areas (1 indicates the strongest performace) developed partnerships with corporations 1-20 21-40 41-60 61-80 81-100 to bolster STEM output from K-12 schools.

CHART BY ALEC FRIEDHOFF

Explore beyond the highlights. Visit brookings.edu/ » program/metropolitan-policy-program and follow @ BrookingsMetro 29 PHOTO: PAUL MORIGI Members of the International Advisory Council participate in a panel discussion on achieving broadly shared growth at the 2016 annual meeting

A GLOBAL INFLECTION POINT

rookings established the throughout the year in Washington As they do at each annual meeting, International Advisory Council, and in their home countries around members of the International Advisory Ba group of distinguished the world. Council offered their views on the international business and commu- issues in the headlines today, as well as nity leaders, to extend its outreach At the 2016 annual meeting, the those over the horizon that the world and relevance to other countries group discussed the governance, should be paying attention to now. and increase its ability to inform the finance, and inclusion issues facing American public and policymakers cities around the world and how about global developments. they are forging a global network to grow economically and share solu- Members—who represent 23 tions to common problems. They countries on six continents—pro- also examined the fight against ISIS vide invaluable insights and diverse and other international challenges, perspectives on issues in their own from Brexit to a rising China to regions, along with candid insights Europe’s refugee crisis to the future into how America and its policies of the liberal international order.

I G are perceived abroad. Rising populism and prospects for I R O M L the 2016 U.S. presidential election U A P : O T Members of the Council convene led to lively discussions, as did the O H for an annual meeting each spring outlook for the global economy and P and engage with Brookings experts broadly shared growth. Trustees and Co-Chairs of the International

INTERNATIONAL ADVISORY COUNCIL ADVISORY INTERNATIONAL Advisory Council Antoine van Agtmael (LEFT) and Paul Desmarais, Jr.

30 International Advisory Council Members

Antoine W. van Agtmael Jorge Mandelbaum BROOKINGS OVERSEAS CENTERS Co-Chairman of the IAC Chairman of the Advisory Board Senior Adviser CIPPEC (Center for the Brookings’s centers in Beijing, Delhi, and Doha provide the ability Garten Rothkopf Implementation of Public Policy) Argentina to engage in the policy debate in key world capitals, expanding its Paul Desmarais, Jr. Co-Chairman of the IAC Honorable John Manley, P.C. O.C. global reach and informing its research on a range of issues. Chairman and Co-CEO Chair, CIBC Power Corporation of Canada President and CEO Business Council of Canada Mohammed Mahfoodh Alardhi Canada Executive Chairman Investcorp International Inc. Shmuel Meitar Oman Chairman and Founder Aurec Capital Rahul Bajaj H.E. Abdullah Hamad Israel Chairman Al Attiyah addresses a Bajaj Auto Limited Jaime J. Montealegre PHOTO: BROOKINGS DOHA CENTER BROOKINGS PHOTO: BDC energy forum India President Sigma Management, S.A. Hakeem Belo-Osagie Brookings Doha Center (BDC) Costa Rica Chairman BDC Director Tariq Yousef is expanding the Center’s research Etisalat Nigeria Javier Monzón Nigeria Spain agenda to economic development issues in the Arab world. BDC experts convened a Syria Track II Dialogue whose participants later Nicolas Berggruen José Oliu Creus Chairman President served as official delegates to the Geneva process on ending the Berggruen Holdings Banc Sabadell conflict. Director of Research Sultan Barakat’s critical review of the United States Spain Gaza reconstruction process helped the UN re-evaluate its role. George David Juan Pardinas Chairman Director General Coca-Cola Hellenic Bottling IMCO Company Mexico Piyush Goyal, Minister of Greece Patrick Pouyanné State with Independent Sir Mick Davis Chairman and CEO Charge for Power, Coal, New Founding Partner Total S.A. and Renewable Energy and X2 Resources Limited France U.K. Mines (RIGHT), and BIC Marian Puig

PHOTO: BROOKINGS INDIA BROOKINGS PHOTO: Chairman Vikram Mehta Haluk Dinçer EXEA President, Retail and Insurance Spain Sabancı Holding Brookings India Center (BIC) Itamar Rabinovich Turkey Chaired by Vikram Mehta, BIC contributes to positive changes in an President Pablo González Guajardo Israel Institute array of government policies. Shamika Ravi’s and Rahul Ahluwalia’s Chief Executive Officer Bronfman Distinguished analysis of India’s health policy brought government attention to Kimberly-Clark de México Nonresident Senior Fellow Mexico The Brookings Institution quality control issues. Rahul Tongia contributed to India’s National Adrian Gore Israel Energy Plan and its preparations for COP21 in Paris. Former National Founder and CEO Royal Dutch Shell Security Adviser Shivshankar Menon joined BIC as a Distinguished Discovery Group Netherlands Republic of South Africa Fellow and Dhruva Jaishankar as a foreign policy fellow, adding Tokyo Sexwale important new capacity on foreign policy and defense issues. J. Jon Imaz Sexwale Family Foundation CEO Republic of South Africa Repsol Spain SK holdings Co. Ltd. South Korea Nobuyori Kodaira Executive Vice President Kihak Sung Member of the Board of Directors Chairman and CEO The Brookings China Toyota Motor Corporation Youngone Corporation Council and Brookings Japan South Korea scholars meet at Tsinghua

Frank Lowy Marcus Wallenberg MCELVEEN RYAN PHOTO: PHOTO: University in Beijing Co-Founder Chairman Westfield Group Skandinaviska Enskilda Banken AB Brookings-Tsinghua Center (BTC) Australia Sweden BTC scholars’ research on low-carbon development in China con- Andrónico Luksic Yuanqing Yang tributed a key component of the China Advisory Council on Energy’s Vice Chairman Chairman and CEO Banco de Chile Lenovo plan. Led by Director Qi Ye, the BTC was ranked among China’s top Chile China 10 think tanks and, with President Xi Jinping declaring think tanks Philip Mallinckrodt Dieter Zetsche a national strategic priority, BTC is adding new Chinese scholars to Group Head of Wealth Management Chairman build on this opportunity. Schroders PLC Daimler Corporation U.K. Germany

31 Trustee Art Collins, Chair of the Development Committee

PHOTO: PAUL MORIGI

PHILANTHROPIC INVESTMENTS IN IMPROVING GOVERNANCE

ince its founding in 1916, Brookings’s work has been Sdriven by the generous support of donors who share its commitment to high-quality, independent research and impact on policymaking. Resources from individuals, foundations, corporations, and others who contribute to Brookings enable its experts to pursue in-depth research on the most pressing issues facing decisionmakers and to anticipate SUPPORT FOR BROOKINGS BROOKINGS FOR SUPPORT the complex challenges that will be in the headlines in the future. Through all of their work, Brookings scholars focus on developing practical recommendations that go beyond addressing the symptoms of problems to getting at their

root causes. Brookings is grateful MORIGI PAUL PHOTO: Trustee Bob Bass (LEFT) and Chairman of the Council of Economic Advisers Jason Furman

32 PHOTO: PAUL MORIGI PAUL PHOTO:

Trustee Philip Knight (LEFT) and President Strobe Talbott PHOTO: PAUL MORIGI PAUL PHOTO: PHOTO: PAUL MORIGI PAUL PHOTO:

Co-Chair of the Board John Thornton and Trustees Trustee Hazade Dog˘an Boyner (LEFT) and Vice Chair of the Vernon Jordan and James D. Robinson (FROM LEFT) Board Suzanne Nora Johnson

for the philanthropic investments academic disciplines, give the Fiscal & Monetary Policy, bringing that make these contributions to president and research program vice important capacity to improve the problem-solving possible. presidents the flexibility to respond quality and efficiency of fiscal and to sudden developments and launch monetary policy and increase public Second Century Campaign: new research efforts, and develop understanding of them. Under the Building the Foundation for new impact tools and strategies that leadership of Director David Wessel Future Impact broaden audiences. The Second and Policy Director Louise Sheiner, Brookings launched its historic Century Campaign is a compre- the Center’s research and analysis Second Century Campaign in hensive campaign, so the total are making major contributions to 2013 to bolster the Institution’s also includes the many generous the public economic debate, and the capacity to meet the greatest public contributions to the annual fund, launch in 2016 of the Fiscal Ship policy challenges of our time. The which provides critical unrestricted game has brought these issues to Campaign’s key priorities are rooted support for Brookings’s operations, a wider audience in an interactive, in the Institution’s core values of as well as restricted support for spe- accessible way. quality, independence, and impact cific projects within the programs. and, together, contribute to the long- Four new chairs in the Center for term financial health of Brookings The Campaign has already had a East Asia Policy Studies endowed and its ability to achieve real impact tangible impact on Brookings and during the course of the Campaign on public policy. The Campaign its work. For example, Trustee and are enabling Brookings to play a lead- seeks to enable Brookings to recruit Campaign Chair Glenn Hutchins ing role in helping policymakers and and retain the best scholars across established the Hutchins Center on the public understand the dynamics

33 I IG R O M L U A : P O OT PH

Trustee Abby Joseph Cohen PHOTO: PAUL MORIGI PAUL PHOTO:

Co-Chair of the Board John Thornton with Trustees James Johnson and Ed Clark (FROM LEFT)

of the region, U.S. relations with the a gift from Trustee Leonard countries there, and how devel- Schaeffer enabled the launch of a opments in East Asia affect global joint effort between the University security and the economy. Trustee of Southern California’s Leonard Philip Knight created the Philip H. D. Schaeffer Center for Health Knight Chair in Japan Studies, held Policy & Economics and Brookings’s by Senior Fellow Mireya Solís; the Center for Health Policy. Under Koo family of Taiwan established the leadership of Senior Fellow the Chen-Fu and Cecilia Yen Koo Paul Ginsberg, the new Leonard D. Chair in Taiwan Studies, held by Schaeffer Initiative for Innovation in PHOTO: NICK GERBER PHOTOGRAPHY PHOTO: Center Director Richard Bush; Health Policy will tackle some of the Trustee Bea Welters SK Corporation and the Korea nation’s most pressing health care Foundation joined forces to create problems including the future of the SK-Korea Foundation Chair in Medicare as costs continue to rise, Korea Studies, first held by Katharine shaping the Affordable Care Act to H.S. Moon; and a consortium of improve outcomes, and maximizing funders came together to establish the value of innovation in drugs and the Lee Kuan Yew Chair, which devices. This contribution follows a rotates among experts on different previous investment from the Irene Southeast Asian nations. By estab- Diamond Fund, which gave a major lishing these endowed chairs, these gift for research on innovations that generous donors have strengthened can help reduce growth in medical Brookings’s capacity and contributed spending. Thanks to these and other to the sustainability of its work on a gifts, Brookings is recognized as a critical part of the world. leader in the field of health care.

New resources contributed during In the final months of the Campaign,

PHOTO: PAUL MORIGI PAUL PHOTO: the Campaign provide important Brookings remains focused on con- Trustee Victor Hymes support to Brookings’s efforts in tinuing to strengthen the Institution health policy as well. Most recently, and build new and greater capacity

34 SUPPORT FOR BROOKINGS

BROOKINGS WELCOMES SIX NEW TRUSTEES

Brookings elected six new Trustees to the Board in 2016, joining a distinguished group of business, community, and academic leaders who help govern the affairs of the Institution. The Board, which meets three times annually, reviews Brookings's administration and finances, and safeguards the independence of the Institution’s work. Brookings warmly welcomes its newest members to the Board

P H O of Trustees. T O : PA Co-Chair of the Board U L M OR David Rubenstein IGI

to engage with stakeholders, framing Institution over the long term. the public debate over policy issues, Carnegie also made a new invest- and developing pragmatic, effective ment in the Foreign Policy program, solutions. The many donors who renewing support for work across PHOTO: J. KATARZYNA WORONOWICZ KATARZYNA J. PHOTO: PHOTO: COURTESY OF SUSAN CROWN OF SUSAN COURTESY PHOTO: have contributed to the Campaign the full range of international chal- Susan Crown Sara Grootwassink Lewis are vital parts of the Brookings lenges facing policymakers, along Chairman and Founder Chief Executive Officer family and the Institution is grateful with a grant to the Governance The Susan Crown Exchange Lewis Corporate Advisors, LLC Chairman and CEO for their engagement and support. Studies program in support of Owl Creek Partners research and analysis to support Major Support for Brookings an efficient and effective transition 2.0 and Foreign Policy at the Department of Homeland The Carnegie Corporation of New Security ahead of the 2017 presi- York was one of Brookings’s first dential inauguration. donors, pledging $1.65 million over 10 years in 1922 to establish Responding to the Challenges the Institute of Economics, which and Promise of Global eventually merged with the Institute Urbanization for Government Research and Trustee Steve Denning and his wife OF FENG DENG COURTESY PHOTO: DING CHUAN PHOTO: the Robert S. Brookings Graduate Roberta made a gift to Brookings Feng Deng Laxman Narasimhan Founder Chief Executive Officer School to become today’s Brookings through the Sage Foundation to Northern Light Venture Capital PepsiCo Latin America Institution. Over the following support the work of Bruce Katz as decades, the Carnegie Corporation the inaugural Centennial Scholar at has generously supported work Brookings. In this capacity, Katz is across the Institution, with a working across programs and with particular interest in work on foreign counterparts outside of Brookings to policy, democracy, elections and bring a breadth of skills and expertise government, and the economy. to the many issues that face leaders In 2016, Carnegie made a major at all levels of government. As they investment toward the goals of the grapple with global trends that Brookings 2.0 strategic plan with reflect increasing numbers of people PHOTO: PATRICK GIPSON PATRICK PHOTO: a gift to the President’s Special living in cities and the devolution JOE/CARE CAROLINE PHOTO:

Initiatives Fund. These flexible of responsibility from national Helene D. Gayle David B. Weinberg resources will enable Brookings to governments, local policymakers are Chief Executive Officer Chairman & CEO implement Brookings 2.0, making looking for new models of finance McKinsey Social Initiative Judd Enterprises for a stronger, more sustainable and sources of economic growth.

35 PHOTO: PAUL MORIGI PAUL PHOTO:

International Advisory Council members Andrónico Luksic and Marian Puig with Vice Chair of the Board Glenn Hutchins (FROM LEFT) PHOTO: PAUL MORIGI PAUL PHOTO: PHOTO: PAUL MORIGI PAUL PHOTO:

Co-Director of the Center for 21st Century Security and Trustees Antoine van Agtmael (LEFT) and Betsy Cohen Intelligence John Allen (LEFT) and Trustee Pete Higgins

To help these places thrive and Support for the Premier audiences. In 2016, State Farm compete in the global economy, the Economic Journal Mutual Automobile Insurance Centennial Scholar team is applying The Brookings Papers on Economic Company made a new commitment rigorous research grounded in data Activity (BPEA) provides timely to Economic Studies that includes and experience to identify successful research on current economic issues major support over three years for practices that can be replicated and to academic and business econ- BPEA, helping sustain this important innovative ideas that can be tested omists, government officials, and resource. The company’s generous and scaled up. With the resources members of the financial and busi- commitment also includes support provided by the Sage Foundation, ness communities. Established in for a broad range of work being the Centennial Scholar Initiative is 1970, the biannual publication was conducted in Economic Studies. fostering collaboration with leading the first conference series and jour- experts in Brookings’s Foreign Policy, nal to focus on cutting-edge research Brookings is grateful for the gener- Global Economy and Development, about real world policy issues. Under ous support of all the donors who and Metropolitan Policy Programs to new editors Janice Eberly and James make its experts’ work possible. devise smart and effective strategies Stock, BPEA continues to attract to solve critical challenges and take world-renowned economists as advantage of new opportunities to contributors and respondents and build on cities’ strengths. draw wide attention from influential

36 SUPPORT FOR BROOKINGS

ROBERT S. BROOKINGS SOCIETY CONTINUES GROWTH

The Robert S. Brookings Society offers emerging business and community leaders unique opportunities to participate in in-depth policy discussions with Brookings experts and their peers. With 60 members in six chapters across the country, the Society is enjoying robust growth and developing into a national network of thoughtful, engaged people who share Brookings’s commitment to quality research and analysis of the most pressing issues facing decisionmakers.

This year, the Society calendar included a conversation on foreign policy and urbanization with Brookings President Strobe Talbott, Director of the John L. Thornton China Center Cheng Li, and Centennial Scholar Bruce Katz in the Hamptons; a discussion on nuclear weapons and national PHOTO: PAUL MORIGI PAUL PHOTO: security with Senior Fellow Dan Byman, research director Trustees Cheryl Cohen Effron and Antoine van Agtmael of the Center for Middle East Policy; an examination of next (FROM LEFT) listen as Jonathan Robins makes a point steps coming out of the Paris climate conference with Senior during the Brookings Society Summit in March 2016 Fellow Amar Bhattacharya; and a briefing on ISIS from Senior Fellow Will McCants, director of the U.S. Relations with the Islamic World project.

The centerpiece of the Society’s activities was the Robert S. Brookings Society Summit, which brought members together in Washington in March 2016 for a focused day of discussions with Brookings experts, Trustees, and leadership. The wide-ranging agenda included briefings on the presidential election from Elaine Kamarck, director of the Center for Effective Public Management, and on the U.S. economy, climate, and energy from David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy, and Adele Morris, policy director of the Climate and Energy Economics Project. These were followed by breakout discussions with two of PHOTO: PAUL MORIGI PAUL PHOTO: Brookings’s rising star scholars, Martha Ross and Joseph Parilla of the Metropolitan Policy Program, and a conversa- Andrew Klaber (LEFT) and Jackie Carter explore the Brookings website tion with Tamara Wittes, director of the Center for Middle East Policy.

Looking ahead, Brookings will continue growing the Society as a resource for up-and-coming leaders who represent the future of the public and private sector. To help guide this growth, the Society is developing a regional leadership structure that will include chairs of each of the four primary chapters. The chairs will continue building the Society by recruiting new members, identifying ideas for programming, and fostering other productive communications and connections with the Institution. Brookings is grateful to the Society for its thoughtful engagement and contributions to the policy

debate at Brookings. MORIGI PAUL PHOTO: Brookings Society member Kate Harris

Learn more about getting involved with Brookings. » Visit brookings.edu/development 37 BROOKINGS INSTITUTION EXECUTIVE LEADERSHIP

Strobe Talbott President

Martin Indyk Executive Vice President

Steven Bennett Vice President and Chief Operating Officer PHOTO: PAUL MORIGI PAUL PHOTO:

Strobe Talbott Kimberly Churches Managing Director

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

Ona Alston Dosunmu

PHOTO: DAY WALTERS DAY PHOTO: MORIGI PAUL PHOTO: MORIGI PAUL PHOTO: Vice President and General Counsel Martin Indyk Steven Bennett Kimberly Churches Ted Gayer Vice President and Director, Economic Studies Joseph A. Pechman Senior Fellow

Bruce Jones Vice President and Director, Foreign Policy

Amy Liu Vice President and Director, Metropolitan

PHOTO: RALPH ALSWANG RALPH PHOTO: MORIGI PAUL PHOTO: MORIGI PAUL PHOTO: Policy Program Kemal Dervis¸ Ona Dosunmu Ted Gayer The Adeline M. and Alfred I. Johnson Chair in Urban and Metropolitan Policy

David Nassar Vice President for Communications

Stewart Uretsky Vice President, Chief Financial Officer, and Treasurer

PHOTO: PAUL MORIGI PAUL PHOTO: MORIGI PAUL PHOTO: MORIGI PAUL PHOTO: Darrell West Bruce Jones Amy Liu David Nassar Vice President and Director, Governance Studies The Douglas Dillon Chair PHOTO: PAUL MORIGI PAUL PHOTO: WALTERS DAY PHOTO:

Stewart Uretsky Darrell West

38 BOARD OF TRUSTEES

David M. Rubenstein Susan Crown Victoria P. Sant HONORARY TRUSTEES Co-Chair of the Board Chairman and Founder President Brookings The Susan Crown Exchange The Summit Foundation Co-Founder and Co-CEO Chairman and CEO Liaquat Ahamed Ann Dibble Jordan Leonard D. Schaeffer Former Chief Executive Officer The Carlyle Group Owl Creek Partners Vernon E. Jordan, Jr. Founding Chairman and CEO Fischer Francis Trees and Watts, Inc. John L. Thornton Arthur B. Culvahouse, Jr. WellPoint Of Counsel Co-Chair of the Board Chairman Emeritus Zoë Baird Akin Gump Strauss Hauer & Peter Scher Brookings O’Melveny & Myers LLP President Feld, LLP Chairman of the Washington D.C. Chairman The Markle Foundation Alan M. Dachs Region & Head of Corporate Richard A. Kimball, Jr. Barrick Gold Corporation President and CEO Responsibility Richard C. Blum Founder and CEO Glenn Hutchins Fremont Group JPMorgan Chase & Co. Chairman and President HEXL Vice Chair of the Board Blum Capital Partners, LP Feng Deng Arne M. Sorenson Nemir Kirdar Brookings Founder President and CEO Louis W. Cabot, chair emeritus Chairman Co-Founder Northern Light Venture Capital Marriott International, Inc. Chairman Investcorp Silver Lake Cabot-Wellington LLC Kenneth M. Duberstein Michael L. Tipsord Klaus Kleinfeld Suzanne Nora Johnson Chairman and CEO President & CEO Kenneth W. Dam Chairman and CEO Vice Chair of the Board The Duberstein Group, Inc. State Farm Insurance Companies Max Pam Professor of Alcoa, Inc. Brookings American & Foreign Law Philip H. Knight Former Vice Chairman Cheryl Cohen Effron Andrew H. Tisch University of Chicago Law School Goldman, Sachs & Co. Founder Co-Chairman of the Board and Nike, Inc. Conjunction Fund Chairman of the Executive Steven A. Denning Strobe Talbott Donald F. McHenry Committee Chairman President Alfonso Fanjul Distinguished Professor in the Loews Corporation General Atlantic Brookings Chairman and CEO Practice of Diplomacy and Fanjul Corp. and Florida Crystals Antoine W. van Agtmael Vishakha N. Desai Ph.D. International Affairs Robert J. Abernethy Corporation Senior Adviser Special Advisor for Global Affairs School of Foreign Service President Garten Rothkopf Columbia University Georgetown University American Standard Bart Friedman Former Chairman Development Co., Inc. Senior Partner Paul Desmarais, Jr. Rajan Bharti Mittal Ashmore EMM, LLC Cahill Gordon & Reindel Chairman and Co-CEO Vice Chairman Paul M. Achleitner David B. Weinberg Power Corporation of Canada Bharti Enterprises Limited Non-Executive Chairman Ellen V. Futter Chairman & CEO Deutsche Bank AG President Thomas E. Donilon Mario M. Morino Judd Enterprises American Museum of Natural Former U.S. National Security Co-Founder and Chairman Dominic Barton History Beatrice W. Welters Advisor Venture Philanthropy Partners Global Managing Director Founder and Co-Chairperson Senior Partner McKinsey & Company, Inc. Helene D. Gayle Thomas C. Ramey AnBryce Foundation O’Melveny and Myers Chief Executive Officer Former Chairman Robert M. Bass McKinsey Social Initiative John H. White, Jr. Lawrence K. Fish Liberty International, Liberty President President and CEO Former Chairman and CEO Mutual Group Keystone Group, L.P. Brian L. Greenspun Taco, Inc. Citizens Financial Group, Inc. Chairman and CEO Steven Rattner Alan R. Batkin Greenspun Media Group Tracy R. Wolstencroft Cyrus F. Freidheim, Jr. Chairman Chairman President & CEO Chairman Willett Advisors LLC Converse Associates, Inc. Pete Higgins Heidrick and Struggles Old Harbour Partners, LLC Founding Partner Edgar Rios Crandall Bowles Second Avenue Partners Daniel Yergin David Friend Co-Founder and Managing Chairman Vice-Chairman Executive Chairman Director The Springs Company Victor L. Hymes IHS, Inc. Carbonite, Inc. Wenzi Capital Partners Chief Executive Officer and Chief Hanzade Dog˘an Boyner Investment Officer Daniel B. Zwirn Ann M. Fudge James D. Robinson III Vice Chairwoman Legato Capital Management LLC Chief Executive Officer and Former Chairman and CEO General Partner and Co-Founder Dog˘an Holding S¸irketler Chief Investment Officer Young & Rubicam Brands RRE Ventures Grubu A.S¸. Benjamin R. Jacobs Arena Investors LP Senior Advisor /Founder Henry Louis Gates, Jr. Haim Saban Paul L. Cejas The JBG Companies Director, Hutchins Center for Chairman and CEO Chairman African & African American Saban Capital Group, Inc. PLC Investments, Inc. Kenneth M. Jacobs Research Chairman and CEO Ralph S. Saul W. Edmund Clark Harvard University Lazard Former Chairman Retired Executive William A. Haseltine Ph.D. CIGNA Corporation TD Bank Group Sara Grootwassink Lewis President Michael P. Schulhof Chief Executive Officer The Haseltine Foundation Abby Joseph Cohen Chairman and CEO Lewis Corporate Advisors, LLC Chairman President, Global Markets Global Technology Investments Haseltine Global Health, LLC Institute; and Senior James Murren Lynn Thoman Investment Strategist Chairman and CEO Teresa Heinz Co-Chair Goldman, Sachs & Co. MGM Resorts International Chairman Leon Lowenstein Foundation Heinz Family Foundation Betsy Z. Cohen Laxman Narasimhan Larry D. Thompson Founder & Strategic Advisor Chief Executive Officer Joel Z. Hyatt Lawyer The Bancorp PepsiCo Latin America Chairman, CEO and Co-Founder Globality, Inc. Arthur R. Collins James Rogers Stephen M. Wolf Managing Partner Managing Partner Retired Chairman and CEO Shirley Ann Jackson Ph.D. Alpilles, Inc. theGROUP Duke Energy President Rensselaer Polytechnic Institute Howard Cox Wilbur Ross Ezra K. Zilkha President Special Limited Partner Chairman and Chief Strategy James A. Johnson, chair emeritus Zilkha & Sons, Inc. Greylock Officer Chairman WL Ross & Co. LLC Johnson Capital Partners

39 PROGRAM LEADERSHIP COUNCILS

rogram Leadership Councils in each of Brookings’s five research programs offer business, community, and philanthropic leaders opportunities to engage in substantive discussions on pressing issues and contribute Pto strategies for maximizing the impact of the Institution’s independent research. The Councils convene throughout the year for briefings from senior policymakers and Brookings experts, workshops, and other activities that deepen their understanding of policy.

Economic Studies Foreign Policy Global Leadership Metropolitan Council Leadership Council Council Council Wilbur Ross, Chair Benjamin R. Jacobs, Chair Suzanne Nora Johnson, Chair Antoine van Agtmael H. Rodgin Cohen, Dominic Barton Yonca Brunini Sharon Alpert Vice Chair Alan Batkin Deborah Duncan Rebecca Arbogast Sandeep Arora Wael Bayazid L. Enrique Garcia Alexis Bataillon Ken Bentsen Jeffrey Boyd Lou Anne King Jensen Robert Bauer Seamus Brown Charles Bronfman Tawfic Khoury Xavier de Souza Briggs Julia Coronado Paul L. Cejas Jonathan Schaffzin Mark Cafferty Jason Cummins Ronald Cohen Ercument Tokat Valerie Chang Stephanie Dyson Jonathan E. Colby Don Chen Scott Evans Howard E. Cox Governance Studies Arthur R. Collins Lorenzo Giorgianni Jason Cummins Council Paul Desmarais, Jr. Derek Kaufman Alan M. Dachs Deborah DiCroce Rebecca Arbogast George Kellner Mick Davis Cheryl Cohen Effron Daniel (Dan) Berger Matt Miller Feng Deng Travers Garvin William (Bill) D. Budinger Hidemoto Mizuhara Joshua Donfeld Bob Giloth Louis W. Cabot Barbara Novick Ronald I. Dozoretz Joanne Harrell Daniel Cruise Roberto Perli Alfonso Fanjul Ben Hecht Jay W. Eisenhofer Andrew Plepler Theresa M. Fariello Neal Hegarty Gary L. Ginsberg Nancy D. Prior Rajiv K. Fernando Phillip Henderson Robert (Rob) D. Jensen Chris Rokos Lawrence K. Fish Steve Heyman William (Bill) Kamela Paul Schott Stevens David I. Fisher Pete Higgins Carol Melton Carl Tannebaum Lee Folger Robert Jaquay R. Hewitt Pate Michael Tipsord Bart Friedman David Johnson Sage Rhodes Debra Valentine Susie and Michael Gelman James A. Johnson Edgar Rios Heather Wingate Vartan Gregorian Tom Kaplan David Zervos A. Alfred (Al) Taubman* and Andrew Gundlach Judy Taubman Monica Keany Roger Hertog Kenny D. Thompson, Jr. Richard Kimball Suzanne Nora Johnson Stephanie Valencia Jamie Merisotis David A. Kamenetzky Claude Wasserstein Josh Moskowitz Samer Khoury Seymour and Kate Weingarten Esra Ozer Robert A. Kotick John Hazen White, Jr. Andrew Plepler Edward M. Lamont Ezra K. Zilkha Rip Rapson Daniel Lubetzky Rob Roy Daniel Lufkin * Deceased Louis Salkind John G. Macfarlane Peter Scher Sharon Nazarian Jewel Scott Richard B. Nye Lee Sheehy John G. Popp Matthew Simoncini Joseph L. Rice Nicole Tremblett Stephen Robert Jeffrey Walker David Rogers John O. Wynne David M. Rubenstein Haim Saban William A. Shutzer Ramez Sousou David S. Steiner Krishen Sud John Thorton Antoine W. van Agtmael David Weinberg Nick Welch Poju Zabludowicz Arshad Zakaria 40 HONOR ROLL

Cash, Contracts, and In-Kind Contributions Received July 1, 2015 – June 30, 2016

$2,000,000 and Above Google Inc. Anla Cheng Robert C. Pozen and the Ashurst Greater Oklahoma City Chamber Cheniere Energy, Inc. Foundation The William and Flora Hewlett Marian Puig Foundation The Heinz Endowments Chevron Rhode Island Foundation The Hutchins Family Foundation The Leona M. and Harry B. Sheldon M. Chumir Foundation for Helmsley Charitable Trust Ethics in Leadership Rob Roy, Switch JPMorgan Chase & Co. Pete Higgins Citi Robert E. Rubin David M. Rubenstein Henry L. Hillman Foundation W. Edmund Clark Schlosstein-Hartley Family Foundation United Arab Emirates The Israel Institute Betsy Z. Cohen Eric S. Schwartz $1,000,000–$1,999,999 The Japan Foundation Center for Jonathan E. Colby Gerald Schwartz and Heather Reisman Global Partnership Art Collins Sequoia Capital China Advisors Carnegie Corporation of New York Japan International Cooperation Jonathan Coslet Limited Steve and Roberta Denning Agency Howard Cox Shell Food and Drug Administration Robert Wood Johnson Foundation The Crown Family Social Security Administration Bill & Melinda Gates Foundation Samer Khoury The Nathan Cummings Foundation Arne and Ruth Sorenson Cecilia Yen Koo and the Koo Family Charles Koch Foundation Alan and Lauren Dachs Statoil The John D. & Catherine T. The Charles Stewart Mott Foundation Daimler Steinway Musical Instruments, Inc. MacArthur Foundation The Peter G. Peterson Foundation George A. David Robert Stewart Microsoft Corporation Popplestone Foundation The Davis Foundation Tom Steyer and Kat Taylor Government of Norway Charles W. Robinson* Deloitte LLP Kihak Sung The Rockefeller Foundation Wilbur and Hilary Ross Paul Desmarais, Jr. Lynn Thoman and the Leon Leonard D. Schaeffer Searle Freedom Trust Digital Trust Foundation Lowenstein Foundation John L. Thornton Alfred P. Sloan Foundation Haluk Dinçer Toyota John C. Whitehead* State Farm Mutual Automobile Jian Ding Turkish Industry and Business Insurance Company Association (TÜSI˙AD) Jay W. Eisenhofer Family Foundation $500,000–$999,999 Surdna Foundation U.S. Agency for International European Union Swedish Ministry for Foreign Affairs Development Anonymous (2) Facebook Taipei Economic and Cultural U.S. Department of Health & Laura and John Arnold Foundation Alfonso Fanjul Representative Office in the Human Services Brevan Howard United States Raj Fernando U.S. Department of the Navy Annie E. Casey Foundation University of Nevada, Las Vegas GE Foundation USA Funds Echidna Giving The Urban Institute Pablo R. González van Beuren Charitable Foundation Ford Foundation Antoine van Agtmael, Sunrise The George Gund Foundation Washington University in St. Louis The Kresge Foundation Foundation Roger Hertog David B. and Lynne Weinberg Liberty Mutual Group The Walton Family Foundation Investment Company Institute Wexford Science & Technology National Institutes of Health Tracy R. Wolstencroft The James Irvine Foundation John Hazen White, Jr. Omidyar Network U.S. Central Command Gail and Benjamin Jacobs Jerry Yang Embassy of the State of Qatar U.S. Department of the Treasury Kenneth M. Jacobs Chi Zhang Cheryl and Haim Saban Embassy of Japan Ezra K. Zilkha The Andrew H. and Ann R. Tisch $100,000–$249,999 James A. Johnson Foundation Ewing Marion Kauffman Foundation $50,000–$99,999 Anonymous (6) UnitedHealth Group, Inc. Philip Knight Robert John Abernethy Anonymous (5) Volvo Research and Educational Kohlberg Kravis Roberts & Co. Foundations S. Daniel Abraham AARP The Korea Foundation Paul Achleitner and Deutsche Bank AG AIG Ned Lamont $250,000–$499,999 Ahearn Family Foundation All Nippon Airways Co., Ltd. Lear Corporation AIG Allen & Company LLC Anonymous Lenovo Group Limited Mohammed Mahfoodh Alardhi Australian Government, Department Alcoa Foundation Living Cities, Inc. AT&T of Industry, Innovation & Science Australian Government, Department Frank P. Lowy Barrick Gold Corporation Rahul Bajaj of Foreign Affairs and Trade The Henry Luce Foundation Anne T. and Robert M. Bass Wael O. Bayazid Bank of America Andrónico Luksic Alan and Jane Batkin Bloomberg Philanthropies Richard C. Blum and the Honorable Lumina Foundation Daniel Berger BP plc Dianne Feinstein Lili Lynton Nicolas Berggruen China-United States Exchange The Brown Foundation, Inc. of Mars, Incorporated Houston BlackRock Financial Management, Inc. Foundation Mayberg Family Foundation Deng Feng CAF-Development Bank of The Civic Council of Greater Kansas MetLife, Inc. Department for International Latin America City Eric M. Mindich Development, United Kingdom California HealthCare Foundation Abby Joseph Cohen The MITRE Corporation Hanzade Dog˘an Boyner, Dog˘an Group Canadian Department of Foreign H. Rodgin Cohen Drexel University Affairs and International Trade Kristen and Stephen Mugford Comcast NBCUniversal DSM (China) Limited The Capital Group Companies Northrup Grumman Corporation The Commonwealth Fund Cheryl Cohen Effron and Charitable Foundation PepsiCo Cornerstone Macro Blair W. Effron Ambassador Paul L. Cejas Richard Perry The Council for the United States Mark T. Gallogly and Centers for Medicare & Medicaid Ploughshares Fund and Italy Elizabeth B. Strickler Services Porticus Discovery Capital Management

41 HONOR ROLL

Gary Ellis Stephen Robert Municipality of The Hague Conrad Cafritz European Recovery Program (ERP), Rockefeller Brothers Fund Teresa Heinz Kerry Caterpillar Inc. German Federal Ministry of Chris Rokos Honda North America, Inc. Cerner Corporation Economic Affairs and Energy San Diego Regional Economic The Hotchkiss School Corning Incorporated Foundation (BMWi) Development Corporation Gisèle Huff Arthur B. Culvahouse, Jr. Exxon Mobil Corporation Victoria and Roger Sant Indra The Curtis Family Foundation FedEx Corporation Haroon Sheikh Frank F. Islam Davis Polk & Wardwell, LLP Fidelity Investments Dr. Fay L. Shutzer and Japan Air Self Defense Force Porter Dawson Government of Finland William A. Shutzer Japan Bank for International Laura A. DeFelice Mimi Frankel, Frankel Family Government of Switzerland Cooperation Anthony and Darian Downs Foundation Taiwan Semiconductor Education Japan Economic Foundation R.S. Evans Foundation Mitzi and Cyrus Freidheim and Culture Foundation Peter A. Joseph Nick Farmer Bart Friedman and Wendy A. Stein A. Alfred Taubman* Douglas M. Kaden Roger C. Faxon Susie and Michael Gelman Tides Center Derek Kaufman Frank and Kathy Finelli Goldman Sachs Ercument Tokat Marine Corps University Lawrence K. Fish Good Ventures Tudor Investment Corporation Marubeni America Corporation Victoria Foley Graham Capital Management United Technologies Corporation Mitsubishi Heavy Industries The Lee and Juliet Folger Fund Andrew Gundlach, Anna-Maria and Bernard van Leer Foundation America, Inc. Stephen Kellen Foundation John L. Furth Alex C. Walker Foundation H&R Block Mario M. Morino General Motors Foundation Marcus Wallenberg, Wallenberg William A. Haseltine Hashem Mubarak Fred T. Goldberg Foundations AB James J. Murren Patrick W. and Sheila Proby Gross Hewlett-Packard Claude Wasserstein Hitachi Foundation Mylan, Inc. Agnes Gund Beatrice W. and Anthony Welters National Counterterrorism Center The Harris Family Foundation Intel Corporation Daniel H. Yergin and Angela Stent International Organization for Steven Rattner and Maureen White Phil Harvey Poju Zabludowicz, Tamares Real Raytheon Company Hellman Foundation Migration Estate Holdings James D. Robinson III Mary B. Hevener Issue One D.B. Zwirn Foundation Lou Anne King Jensen David Rogers Hitachi, Ltd. Sanofi US ITOCHU International Inc. Tom Kaplan, Wolfgang Puck Fine $25,000–$49,999 Dining Group Peter L. Scher Jayne Koskinas Ted Giovanis Betsy Karel Anonymous Wang Shi Foundation for Health and Policy George A. Kellner Eileen A. Aptman Steven J. Simmons Joel and Ricki Kanter Tawfic Khoury Martin Neil Baily Sojitz Corporation of America Brenda R. Kiessling Korea Institute for Defense Analyses The Bank of Tokyo-Mitsubishi Sumitomo Mitsui Banking Corporation Richard A. Kimball, Jr. Korea International Trade UFJ, Ltd. Sylvester Broome Empowerment Lee Klingenstein Association (KITA) BHP Billiton Village Robert and Arlene Kogod Lennar Corporation Heinrich Böll Foundation Strobe Talbott Samantha Lasry-Fleisher Linden Trust for Conservation Crandall C. Bowles Tata Group of companies Sara Grootwassink Lewis Lockheed Martin Corporation Alexander Boyle UN University World Institute for Toby Devan Lewis Dan W. Lufkin, Peter Jay Sharp Bristol-Myers Squibb Foundation Development Economics Research Linklaters LLP, on behalf of the Foundation The Andrea and Charles Bronfman U.S. Coast Guard Advancing Good Governance in International Development John G. Macfarlane III Philanthropies U.S. Department of the Air Force Seminar Philip Mallinckrodt, The Schroder Cámara Colombiana de Informática U.S. Department of the Army Gordon Litwin and Anne Luzzatto Foundation y Telecomunicaciones Visa Inc. Amy Liu John Manley Frank Carlucci The Western Union Company LMI Government Consulting Mitsubishi Corporation (Americas) CASEnergy Coalition Western Union Foundation The Leo Model Foundation Central Intelligence Agency Bertil P. Lundqvist Ambrose Monell Foundation Central Piedmont Community Michael L. Martell, Morrison $10,000–$24,999 Cohen LLP Moore Capital Management College Foundation John P. McCormick Morgan Stanley The Coca-Cola Company Anonymous Donna Marie Melby National Science Foundation ConocoPhillips Liaquat and Meena Ahamed Arjay Miller Nihon Keizai Shimbun-sya (NIKKEI) The Cummins Foundation The Loreen Arbus Foundation Mary Miller Noble Energy Kenneth W. Dam Arnhold Foundation Mitsui & Co. (U.S.A.), Inc. Nomura Foundation DLI North America, Inc. Astra Capital Management Allison Nathan Richard Nye Joshua Donfeld Rex J. Bates* National Institute for Health Care DRS Technologies, Inc. Franklin M. Berger Open Society Foundations Management Research and David K. Berler Palantir Technologies EDF Inc. Educational Foundation The Boeing Company William Penn Foundation Drs. Riadh and Manal Fakhoury Embassy of the Kingdom of the Pharmaceutical Care Management French Ministry of Foreign Affairs Robert Bosch Stiftung Netherlands Association Fuyao Glass Industry Group Co., Ltd. Anders Brag New York City Department of Thomas C. Ramey and Perrin Ireland GEICO The Brodsky Family Foundation Health and Mental Hygiene Joseph L. Rice III Brian L. and Myra S. Greenspun and Building Bridges Coalition NHK Rio Tinto the Greenspun Family Foundation Carter Cafritz Northern Trust

42 HONOR ROLL

NTT Corp. Katherine Clark Harris Courtney Dunakin Robert Orttung Dina and George Perry Cynthia R. Helms Conor Durkin Obafolajimi (Oba) Otudeko Pioneer Natural Resources Alfred I. Johnson Emal Dusst Ibrahim Onur Oz The Honorable Edward A. and Richard and Barbara Kaufmann Spencer Edge Jason Palmer Diane L. Powell James M. Kemper Mark and Janet Edwards Steven Pearson Chris Rivers Donald A. King, Jr. Thomas Elliott Marc Peters Alice M. Rivlin Rebecca Liao Elliott Company of Indianapolis, Inc. Eric Pickering Charles Rossotti Malcolm R. and Celia Lovell Toby and Charles Gati Steven Pifer Frederic A. and Susan Rubinstein Bruce and Virginia MacLaury Helene Gayle Philip A. Piro Ricardo and Leslie Salmon Jeffrey Marlough Glautz Family Foundation Samuel Plimpton Jonathan Schaffzin Christopher Reynolds Foundation Elisa B. Glazer Jonathan Fantini Porter Michael L. Schler Marie Ridder David B. Golder Andrew Rasmussen Shimizu Corporation Cordel Robbin-Coker Joshua Goldman Jason Richey Stanley S. Shuman Robert J.T. Rosenfeld Nalaka Gooneratne Mustafa Riffat Skoll Centre for Global Leonard L. Silverstein Frances Grossman Jonathan M. Robins Entrepreneurship Frederick Stavis Don and Ann Grundy Terrance Rogers Emily and Robert E. Smith Sidney Stern Memorial Trust Marion Guggenheim Brian Rose Andrew and Patricia Steffan Paul and Chandler Tagliabue Perry Ha Vince Rothenberg Sumitomo Corporation of America U.S. Department of Labor Sherif Hamid Drew Ruben Larry D. Thompson Seymour and Kathleen Weingarten James Hawn Blair Ruble Michael L. Tipsord Josh S. Weston Matt Hellauer Kathy Ruffing Margaret L. Tomlinson Malcolm H. Wiener Nancy Maisto Hewett Alex Rugoff Toshiba America, Inc. Fiona Hill Nicholas Rugoff John Usdan Up to $4,999 Ray Hollmann Aaron Satz Paul Verbinnen and Cecilia Greene Buzz Sawyer Anonymous (13) Donald Jensen VOX Global Stacy Schroeder Anas Aljumaily Andrew Johnman Washington University in St. Louis Michael Schwartz Zoë Baird Budinger and Just Slice LLC Stephen M. Wolf William Budinger Marvin Kalb Jennifer Scully Lerner Xerox Corporation Alvin Sherman Harley D. Balzer Frank and Carol Keeney Rachel Zhang Elizabeth J. Shutkin Scott Baxter Hans Keithley Aaron Shutzer William Horton Beebe-Center Catherine Kelleher $5,000–$9,999 Nick Simmons Steven Bennett and Erin Loubier Thomas L. Kempner Or Skolnik Anonymous Steffi and Robert Berne Douglas Kiessling T. Otey Smith Australian Civil-Military Centre – Robert L. Berner IV Paul J. Kim Marjorie H. Sonnenfeldt Department of Defence Erik Blumenkranz Chris Kiple Benjamin Squires Sylvia Blake Tim Boersma Andrew Klaber Cary Stathopoulos Richard C. Bush Brockton B. Bosson Emi Kolawole Christopher Stover William M. Cameron Lisa and David Boyle Christopher S. Koza The Tobin Project Kimberly Churches Michel and Josyann Brogard David Krueger Laura D’Andrea Tyson Columbia University Erin E. Bullinger Walter Kubon Brian Vaillancourt Everett R. Cook Adem Bunkeddeko Herbert Laub Kenneth Vittor and Judith Aisen The Honorable Kenneth M. Theodore Bunzel Joel Leavitt Charitable Fund Duberstein Thomas Carroll Cheng Li Landon Webber Charles W. Duncan, Jr. Jacqueline Carter John Lim Frank A. Weil Karen Dynan and Doug Elmendorf Casey Family Programs Eric Lohr Robert Weinberger Elinor K. Farquhar Michael Love Samuel G. Charap Elaine Weller Florida International University Benjamin B. Ludlow William B. Chism Jimm White Nancy M. Folger Benjamin Luxenberg Morris Clarke John Winn Forum for the Future of Higher Ryan Mahoney Morton and Shirley Cohen The World Bank Group Education Stephen Marcus Convergence Center for Policy George Yin Embassy of France Resolution Daniel Martinez John Zacharias Margaret and Jonathan Frist, The Stephen Cordani Eduardo Martinez Margaret and Jonathan M. Frist Jeffrey Zuttah The Costa Family Trust Ryan McElveen Fund of The Community Council of Korean Americans Donald F. McHenry Foundation of Middle Tennessee *deceased Ellen V. Futter Paul N. Courant Warren Metzger Ted and Rachel Gayer Timothy Cronin III T. James Min German Development Institute/ Hannah Dameron Milton Mitchell Eric Dawson Michael Mitri Deutsches Institut für Brookings strives to be complete and Entwicklungspolitik (DIE) Billy Deitch Sakura Namioka accurate in recognizing the generous Global Development Network Miles Dickson Omar Nazzal support of our donors. We regret any Susan Gutfreund Nadia M. Diuk Robert C. Nurick omissions or errors.

43 STATEMENT OF ACTIVITIES

Years Ended June 30, 2016 and 2015 (in thousands) Preliminary and Unaudited*

TEMPORARILY PERMANENTLY FY 2016 FY 2015 UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL

OPERATING ACTIVITIES Revenue and Support Investment return designated for operations $ 10,755 $ 4,343 — $ 15,098 $ 14,416 Grants, contracts, and contributions 9,109 79,197 $ 533 88,839 76,742 Brookings Press 1,715 — — 1,715 1,710 Facility and other revenue 3,081 (236) — 2,845 2,482 Net assts released from restrictions — Satisfaction of program restrictions 76,728 (76,728) — — — Total Operating Revenue 101,388 6,576 533 108,497 95,350

OPERATING EXPENSES Program Services Economic Studies 15,683 — — 15,683 18,045 Foreign Policy 17,683 — — 17,683 18,379 Global Economy and Development 12,028 — — 12,028 10,321 Governance Studies 7,006 — — 7,006 7,337 Metropolitan Policy Program 10,056 — — 10,056 11,628 Institutional Initiatives 8,296 — — 8,296 6,032 Brookings Press 2,455 — — 2,455 2,566 Communications 2,622 — — 2,622 2,444 Total Program Services 75,829 — — 75,829 76,752 Supporting Services Management and General 21,486 — — 21,486 24,429 Fundraising 3,395 — — 3,395 3,152 Total Operating Expenses 100,710 — — 100,710 104,333 Net Operating Activity 678 6,576 533 7,787 (8,983) Change in net assets before non-operating activities 678 6,576 533 7,787 (8,983)

NON-OPERATING ACTIVITIES Investment return in excess of amounts designated for operations Realized gain (loss) on sale of investments 7,925 3,809 — 11,734 11,822 Unrealized gain (loss) from investments (9,063) (3,819) — (12,882) (11,483) Interest and dividends, net 981 534 — 1,515 9,504 Investment return designated for operations (10,755) (4,343) — (15,098) (14,416) Total investment return (loss) in excess of amounts designated for operations (10,912) (3,819) — (14,731) (4,573) Other Non-Operating Activities Loss on Bond Debt Refinancing — — — — (8,748) Total Non-Operating Activities (10,912) (3,819) — (14,731) (13,321) Change in net assets before post-retirement related changes other than net periodic post-retirement benefit cost (10,234) 2,757 533 (6,944) (22,304) Post-retirement related changes other than net periodic post-retirement pension cost 319 — — 319 (23) CHANGE IN NET ASSETS (9,915) 2,757 533 (6,625) (22,327) Net assets, Beginning of year 202,145 135,008 83,737 420,890 443,217 Net assets, End of year $ 192,230 $ 137,765 $ 84,270 $414,265 $420,890

44 STATEMENT OF FINANCIAL POSITION

As of June 30, 2016 and 2015 (in thousands) Preliminary and Unaudited*

2016 TOTAL 2015 TOTAL

ASSETS Cash and cash equivalents $ 21,176 $ 21,132 Grants, contributions and accounts receivable, net 81,927 74,144 Investments — Endowment 311,060 320,925 Investments — Other 18,655 21,387 Property and equipment, net 37,315 39,455 Other assets 3,674 5,020 TOTAL ASSETS 473,807 482,063

LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued expenses 6,539 6,954 Notes payable and lines of credit 47,620 48,339 Accrued compensated leave 2,043 2,083 Accrued post-retirement benefit obligation 1,788 2,107 Deferred revenue 1,552 1,690 TOTAL LIABILITIES 59,542 61,173

NET ASSETS Unrestricted 192,230 202,145 Temporarily restricted 137,765 135,008 Permanently restricted 84,270 83,737 TOTAL NET ASSETS 414,265 420,890 TOTAL LIABILITIES AND NET ASSETS $473,807 $482,063

Operating Revenues Program Services Expenses

23% Foreign Policy 21% Economic Studies 84% Gifts and Grants 16% Global Economy and Development 11% 13% Endowment Metropolitan Policy Program 11% 2% Institutional Initiatives Publications 9% 3% Governance Studies Miscellaneous 4% Communications 3% Publications Notes: As a nonprofit and scientific organization, Brookings is exempt from federal income taxes under section 501(c)(3) of the Internal Revenue Code. The Institution also qualifies as a publicly supported organization under section 170(b)(1)(A)(vi) of the code. Brookings's policy is to make an annual investment spending allocation for the support of operations. This amount is calculated based on 70% of the prior year’s spending adjusted for inflation and 30% of 5% of the market value of the investments as of December 31 of the prior fiscal year. Certain reclassifications of prior year balances have been made to conform to the current year presentation.

*A copy of the Institution’s audited financial statements is available by request.

45 HHHH rating on Charity Navigator including

100% for 34% one year increase Accountability and in followers of Transparency 64% @BrookingsInst one year increase on Twitter in YouTube subscribers 244 public events attended by 23,000 people;

30% 84 were webcast one year increase in website traffic for with 76,707 brookings.edu viewers BY THE NUMBERS JULY 1, 2015 – 33 times JUNE 30, 2016 Brookings scholars 71% testified before one year increase Congressional in Facebook committees followers

# 171,078 1 page views for the Rank in the Arabic version of University of Pennsylvania’s 37 The Believer, a Brookings books published by the “2015 Global Go To Think Tank Essay by Senior Fellow Brookings Press, Index” including Best Managed, Will McCants including Best Quality Assurance and 4 Brookings Integrity Policies and Procedures, Classics and Most Significant Impact on Public Policy

46 MANAGING DIRECTOR: Kimberly Churches Copyright © 2016 The Brookings Institution EDITOR: Robert Moore 1775 Massachusetts Avenue NW DESIGN AND PRINT PRODUCTION: MillerCox Design Washington, DC 20036 PRINTING: Schmitz Press Telephone: 202.797.6000 COVER PHOTOGRAPHY: Stephen Coburn/Shutterstock Fax: 202.797.6004 INSIDE COVER PHOTOGRAPHY: Brookings Institution Archives www.brookings.edu and Paul Morigi @BrookingsInst

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