QUALITY IMPACT AND INDEPENDENCE

ANNUAL REPORT THE 2005

1775 Massachusetts Avenue, NW Washington, DC 20036 www.brookings.edu BROOKINGSINSTITUTION 2005 ANNUAL REPORT CONTENTS 6 Economic 10 Studies Global Economy and Development 27 Katrina’s Lessons in Recovery

39 Brookings Institution Press

14 40 Governance Center for Executive Education Studies 2 About Brookings 4 Chairman’s Message 5 President’s Message 31 Brookings Council 18 36 Honor Roll of Contributors Foreign 42 Financial Summary Policy Studies 44 Trustees

24 Metropolitan Policy

Editor: Melissa Skolfield, Vice President for Communications Copyright ©2005 The Brookings Institution Writers: Katie Busch, Shawn Dhar, Anjetta McQueen, Ron Nessen 1775 Massachusetts Avenue, NW 28 Design and Print Production: The Magazine Group, Inc. Washington, DC 20036 Jeffrey Kibler, Virginia Reardon, Brenda Waugh Telephone: 202-797-6000 Support for Production Coordinator: Adrianna Pita Fax: 202-797-6004 Printing: Jarboe Printing www.brookings.edu Cover Photographs: (front cover) William Bradstreet/Folio, Inc., Library of Congress Card Number: 84-641502 Brookings (inside covers) Catherine Karnow/Folio, Inc. Broadcast reporters zoom in for a forum on a new compact for Iraq THE BROOKINGS INSTITUTION featuring U.S. Sen. Joseph Biden of Delaware.

he Brookings Institution is a pri- vate nonprofit organization devoted to independent research and innovative policy solutions. Celebrating its 90th anniversary in 2006, Brookings analyzes current and emerging issues and produces new ideas that matter—for the nation and the world. ■ For policymakers and the media, Brookings scholars provide the highest-quality research, policy recommendations, and analysis on the full range of public policy issues. ■ Research at the Brookings Institution is conducted to inform the public debate, not advance a political agenda. Our scholars are drawn from the United States and abroad—with experience in government and academia—and hold diverse points of view. ■ Brookings traces its beginnings to 1916, when a group of leading reform- ers founded the Institute for Government Research (IGR), the first private organi- zation devoted to analyzingT public policy issues at the national level. In 1922 and 1924, one of IGR’s backers, Robert Somers Brookings (1850–1932), established two sister organizations: the Institute of Economics and a graduate school bearing his name. In 1927, the three groups merged to form the Brookings Institution, honor- ing the businessman from St. Louis whose leadership shaped the earlier organizations. ■ Today,Brookings is financed largely by an endowment and through the support of philanthropic foundations, corporations, and private individuals. The Institution’s funds are devoted to carrying out its research and educational activities. Brookings also undertakes a small number of unclassified government contract studies, reserv- ing the right to publish its findings from them. ■ A Board of Trustees is responsible for the general supervision of Brookings, approval of its areas of investigation, and the safeguarding of the independence of its work.The Institution’s president is its chief executive officer, responsible for formulating and setting policies, recommending projects, approving publications, and selecting staff. ■ RALPH ALSWANG RALPH 2 CHAIRMAN’S MESSAGE PRESIDENT’S MESSAGE

his has been an especially busy and productive year at Brookings.As you will see in the pages that follow, he year after a Presidential election is always especially important.After a long and bruising campaign, can our scholars tackled some of the most important and daunting issues facing our nation: how to budget our the nation unite? And can political leaders get back to the task of governing at home and leading abroad? The resources to deal with the rising costs associated with homeland security and health care; how our cities and states world waits, with a mixture of hope and apprehension, for the answer. might govern themselves efficiently; and how to ensure the vitality of American democracy and restore civility to In 2005, party spokesmen, as usual, pledged to put the battle behind them. But the spirit of reconciliation and our public discourse and political debate—a part of our mission that will become all the more evident as the coun- common purpose evaporated quickly. On Capitol Hill, the wrangle over filibusters deteriorated to the point where try heads into the 2006 midterm elections and the 2008 presidential race. there was talk of “going nuclear.” In that combative atmosphere the Senate suddenly had to provide its advice and In our work on America’s role in the world, we have continued to produce important scholarship while also consent on nominations to fill two vacancies on the Supreme Court—the first time in eleven years that any seat Tbuilding new capacity. Thad opened up. In two areas of deep personal interest to me, it was an exciting year: during a visit to Washington in May, Then there was Katrina.While the hurricane devastated the Gulf Coast, the immediate aftermath generated a former South African president Nelson Mandela nationwide outburst of “blame-storming” over used Brookings as a platform for a major speech emergency preparedness, climate change, and, most urging more aid for Africa—and more wisdom on searingly, poverty and race. the part of African governments in the way they A full three years before the next presidential use that aid.And in September, we launched our election, the race was on. Several Democrats made China Initiative. their own ambitions clear, and a few Republicans I have a strong commitment to the study of appeared to be running not just for the presidency China—its past, its present, and, most of all, its but away from the current incumbent. future. From that perspective, I am concerned that All this posed a particular challenge for us at most Americans, including many thought-leaders, Brookings, given our commitment both to civil do not know very much about China or the political discourse, and to providing high-quality, unprecedented pace with which it is defining itself high-impact, independent research and recommen- as a formidable global force. dations. Rising to the occasion, our scholars collab- What is occurring and will occur in China is orated more than ever, both internally and with of enormous significance, and raises fundamental colleagues elsewhere on Think Tank Row. questions. How will it affect the lives of the Chi- Several new or enhanced programs focused on nese people? What changes will the Chinese gov- the home front.We stepped up our economic work ernment need to make? How will developments in through our Retirement Security Project.We China affect the rest of the world, and particularly entered the fray on the issue of judicial selection, the United States? What adjustments and accom- and began to examine the relationship between the modations will we need to make? courts and Congress.We launched a new Center on The scholars of the China Initiative at Brook- Children and Families.And through our Metropoli- CORMACK CORMACK AC AC ings, adopting an interdisciplinary approach involv- tan Policy program, we provided prompt, practical ing all the research programs, will examine these suggestions on rebuilding the Gulf Coast. FORREST M FORREST FORREST M FORREST questions, and many more, and will share their Meanwhile, our Governance Studies program John L. Thornton, Brookings chairman conclusions and recommendations with the policy- undertook a major new effort to identify the causes Strobe Talbott, Brookings president making community and the public, both in the United States and in China. Because the Initiative will be conduct- of—and come up with remedies for—the problem of excessive and corrosive partisanship. ing research and providing advice to policymakers in both countries, it intends to have functioning offices in both In the wider world, some familiar challenges grew in intensity. Most prominently, violent instability continued Washington and Beijing. to plague Iraq, and to undermine public support for a continued military presence.And the European malaise took The selection of Jeffrey Bader to be director of the China Initiative was a superb choice. During his 27 years in a turn for the worse with the French and Dutch repudiation of the E.U. constitution. the State Department, Jeffrey served in Beijing, Hong Kong, and Taiwan, so he has first-hand experience in that This heightened discord tended to drown out some positive developments.As an indication that diplomacy was vital region. He has been deputy assistant secretary of state for East Asian affairs and director of Asian affairs on the making a comeback, Secretary of State Condoleezza Rice made her first speech in Israel at a conference cospon- National Security Council.And he has served as Assistant United States Trade Representative, responsible for sored by our Saban Center for Middle East Policy. She used the occasion to signal her personal commitment to China,Taiwan, Hong Kong and Mongolia. helping our trustee, Jim Wolfensohn, with the economic reconstruction of Gaza. In the midst of his diplomatic Like our other research programs and policy centers, this new venture will generate research, analysis and policy exertions, Jim found time to add a whole new dimension to Brookings’s capacity to tackle the issue of global prescriptions in an independent, nonpartisan spirit, and in a form that is accessible and useful to the public and pol- poverty.We further extended our reach with the creation of the Global Economy and Development Center, and icymakers alike. I invite you to avail yourselves of our work. It’s in print, in the form of publications and books, and the inauguration of the China Initiative that John Thornton has made possible. on the Brookings website—www.brookings.edu.And you’ll be seeing and hearing plenty from our scholars on tel- In 2006, Brookings will celebrate its 90th anniversary.We plan to use the year to consolidate our strengths with evision, on the radio, and on the op-ed pages around the country and the world.You’ll find their ideas reflect a lot an eye to the future.We’re confident that in doing so, we will provide fresh evidence to our friends that their trust of careful, constructive thought. ■ and support are well placed. ■

4 5 Economic Studies

he numbers are staggering.The stakes are enormous.With an annual budget deficit of more than $300 billion, the United States is reducing federal spending on children’s health and education programs, straining to cover the retirement and medical needs of an aging population, and fighting the tide of rising government debt. Meeting these policy challenges and others head on, the Brookings Economic Studies program continued its leadership role in drawing public attention to the critical fiscal problems this nation faces. And because the next generation will bear the brunt of these policy decisions, it’s fitting that the Economic Studies program launched its new Center on Children and Families this year.The Center builds on the Institution’s landmark work on welfare reform, a nearly decade-long examination of Washington’s far-reaching redesign of federal aid pro- Tgrams to the poor. Brookings turned its research and outreach to focus on why many of the nation’s low-income families—though no longer on welfare rolls—remain far from the middle class. Isabel V.Sawhill, Brookings vice president and director of the Eco- nomic Studies program, launched the Center in September 2005 with co-director Ron Haskins, a Brookings senior fellow who helped write the 1996 welfare law and continued his policy work under President Bush. “Too many people are in low-wage jobs and their struggles con- tinue,” Sawhill said.“We intend to address what types of policies might improve their lives and their children’s futures.” The Center developed a post–welfare reform road map of other issues that affect poor and low-income working families and have become increasingly important—including early education, the Earned Income Tax Credit and other forms of income supplements, transporta- tion, asset accumulation, job advancement, and social mobility. The scholars promise to play an active role in studying ways to increase the proportion of children who grow up with parents who are married and reminding policymakers to consider children’s futures when making difficult fiscal choices on long-term budget deficits and the Isabel Sawhill, vice president and health care and retirement needs of the aging baby-boom generation. director of Economic Studies, greets “The government needs to uphold its side of that bargain, as well, journalists at the National Press Club for a seminar on covering the which is: If you work, you shouldn’t be poor,” said Sawhill.

federal budget deficit. ALSWANG RALPH The scholars’ work on children and families was significantly 7 ECONOMIC STUDIES Tracking the Export of U.S. Jobs

usan Collins had a platinum Brookings senior fellow Carol education: B.A. from Har- Graham, of the 2004 volume of the Svard, Ph.D. from the Massa- Brookings Trade Forum, Globaliza- chusetts Institute of Technology. tion, Poverty, and Inequality. In her areas of expertise— Collins’s work on Puerto Rico, a Senior Fellow Peter Orszag examine global economic issues changes should be made sooner intuitively believed to be true— discusses budget issues at focusing on China, India, Japan, rather than later to avoid jarring that middle- and lower-income international economics, develop- U.S. commonwealth, focuses on the joint Brookings-Heritage Russia, and Puerto Rico; political reductions in the level of current earners will put away funds for ment, trade, and balance of pay- the island’s economy—which grew federal fiscal seminar. obstacles to fiscal responsibility; benefits. Social Security cannot be retirement if it’s easy and if effec- ments issues—she’s had real-world rapidly in the 1950s, 1960s, and and the impact of federal eco- fixed with gimmicks.And national tive incentives are offered,” said experience. She was a senior staff into the 1970s. But in the mid- nomic policy on states and local savings must increase. senior fellow Orszag, director of economist with President Clinton’s 1970s that rapid expansion communities. Authors discussed their dis- the Retirement Security Project. Council of Economic Advisers. And stopped and Puerto Rico’s econ- But it was the U.S. budget agreements in the book and in a The Pew Charitable Trusts she’s been a scholar: teaching at omy has been sluggish ever since. deficit that framed almost every public forum announcing the increased its commitment to the Harvard and Georgetown Univer- Collins visited Puerto Rico sev- issue in 2005. In April, the Eco- book’s publication: whether build- Retirement Security Project by sity, and now as a senior fellow in eral times, attending a number of

nomic Studies program released its ing up a larger trust fund would providing more than $1 million Senior Fellow second book on the federal budget contribute to national saving and over two years. Susan Collins at deficit, Restoring Fiscal Sanity 2005: would reduce the overall budget In the field experiment, her Brookings office. Meeting the Long-Run Challenge. imbalance, and whether individual researchers examined the records This book—edited by Sawhill and accounts should replace part of of 15,000 St. Louis–area taxpayers senior fellow Alice Rivlin— Social Security. who volunteered for the project. focused on the tough choices that Striving to find policy solu- The study showed that IRA con- Americans will have to make in the tions and common-sense reforms tributions were four to eight times next several decades as the popula- to boost retirement security, higher when people were offered tion ages and medical costs sky- Brookings’s new Retirement matching rates of 20 percent to 50 rocket. Contributors included sen- Security Project delved into excit- percent for those contributions. ior fellows Henry Aaron, Bill Gale, ing new research that featured a Researchers offered important RALPH ALSWANG RALPH RALPH ALSWANG RALPH Ron Haskins, and Peter Orszag; randomized field experiment with revelations at a time when visiting fellow Jack Meyer; John tax giant H&R Block to examine $10,000 is the midpoint balance the Economic Studies program at conferences that brought together extended through a new partner- tank–sponsored conferences and agenda.The Center on Social and Shoven from Stanford University; whether, and at what level, match- of 401(k) and individual retire- Brookings. scholars and policymakers from ship with Princeton University. public meetings. Economic Dynamics (CSED) pio- and Rudolph G. Penner and C. ing funds will encourage moder- ment accounts combined for At Brookings she has focused Puerto Rico and the mainland. The Future of Children is a new The Budgeting for National neered new ways of studying Eugene Steuerle, senior fellows at ate- and low-income households boomers on the verge of retire- her considerable intellect, experi- “Why did growth fall apart jointly published journal promot- Priorities project, and extensive issues such as bioterrorism, pan- the Urban Institute.Authors sug- to contribute to their retirement ment, and demonstrated that ence, and academic abilities on there?” Collins said. “The mainland ing effective policies and programs research on the aging of the popu- demic flu, obesity, and smoking. gested specific steps to increase savings. lower-wage workers will tuck two areas: the offshoring of work experts know about the broad for children.The inaugural vol- lation and on Social Security, all And numerous Economic Studies government revenue and reduce “For the first time, we have their money into retirement pro- once done by U.S. workers to issues. The experts from Puerto ume, released in spring 2005, criti- played major roles in the fiscal scholars collaborated with their spending, especially on the three confirmed through a randomized grams given the right incentives lower-wage countries, and eco- Rico have an institutional perspec- cally summarized research on the debates dominating the domestic colleagues in other programs to big entitlement programs: Medic- field experiment what we had and assistance. ■ nomic and development issues in tive. They know about the history origin and status of racial and eth- aid, Medicare, and Social Security. Puerto Rico. and about the specifics.” nic gaps in student achievement, The project drew heavily on Collins was co-editor (with Lael The idea for the Puerto Rico raising questions on when differ- Bill Gale, senior fellow, confers with Steve Ellis, the data and analysis of the Alice Rivlin adds her voice to Brainard, vice president and direc- project at Brookings originated Vice President, Taxpayers for Common Sense, the federal fiscal seminar ences begin to emerge, what fac- on using the federal tax code to encourage Urban-Brookings Tax Policy Cen- debate. tor of the Global Economy and with a think tank on the island, tors contribute to their develop- responsible use of environmental resources. ter, which continued to be the Development Center at Brookings) called the Center for the New ment, and, most important, what most widely cited and influential of the 2005 volume of the Brook- Economy. Officials at the Center, can be done about them. source of data and research for the ings Trade Forum, Offshoring White- modeled somewhat after Brook- The journal and Center are current debates on extending the Collar Work—The Issues and the ings, approached the Economic among Economic Studies’ suc- recently enacted tax cuts; making Implications, to which 23 interna- Studies program, saying they were cesses in launching new projects, the tax system more fair, more tional experts contributed articles. looking for a “quantifiable attracting new scholars, and con- simple, and more efficient; and The publication presented approach” to the analysis of eco- tributing to the program’s growth. using the tax code to achieve vari- analysis covering the implications nomic problems and solutions for This year, Economic Studies ous economic and social objec- of offshoring for U.S. workers and Puerto Rico. Developing reliable scholars published 13 new books tives.The Tax Policy Center’s find- U.S. competitiveness, overseas call data and statistics was a key goal. with the Brookings Press.They ings were repeatedly cited in centers, India’s rise as a services Funding for the project came were cited in numerous stories in major newspapers and in numer- provider, and other topics. Many of entirely from sources in Puerto the news media, wrote opinion ous editorials nationwide. the contributors to the Collins- Rico. Collins said she hopes her articles, testified at formal congres- So what did authors with such Brainard volume presented their findings and recommendations will sional hearings, and made presen- a variety of disciplines and papers at a two-day conference at have “real-world relevance” which tations at a wide variety of aca- approaches agree on in terms of Brookings in May 2005. will help the island create a

RALPH ALSWANG RALPH ■ demic, industry, and think ALSWANG RALPH restoring fiscal sanity? Policy Collins also was co-editor, with dynamic growth economy. 8 9 Global Economy and Development Effects of Global Poverty enior Fellow Susan their territory from preda- Rice’s current research tion,” Rice said, which can Senior Fellow Susan Rice questions former National Security Sat Brookings focuses become manifest in the form Advisor Brent Scowcroft at a he newly estab- on one of the most daunting of a jihadist terrorist pres- Brookings presentation on high- lished Global challenges facing Planet ence, criminal and drug net- level threats. Economy and Earth—poverty and its global works, infectious disease, Development impact. and environmental degrada- Center will stimu- With the issue attracting tion. She has written several late research and the interest of celebrities articles on this vital subject, Tdialogue to provide fresh solutions and activists alike, for a rare and at the end of her long- to the forces of globalization and moment, global poverty term research plans to com- the challenges of global poverty. reduction is near the top of plete a book elaborating her As globalization generates new the international agenda. findings and conclusions. risks and opportunities,“our goal “Today, addressing poverty Rice is a Senior Fellow in is to take the policy debate in is hip,” Rice said. “But it’s Foreign Policy Studies, and new directions by providing fresh also smart policy.” is also affiliated with the ideas on America’s ability to com- For example, Rice argues newly established Global pete in the global economy, the that poverty has far-reach- Economy and Development road out of poverty, and the rise ing national security implica- Center. In the Clinton Admin- of new economic powers,” said tions for the United States istration, she served as Lael Brainard, who became which “can come back to Assistant Secretary of State Brookings vice president and haunt us.” Her work aims to for African Affairs, and at Center director in 2005. elucidate the indirect but the National Security Coun- Because the forces of global- significant linkages between cil as Special Assistant to ization reach across disciplinary poverty, weak state capacity the President, Senior Direc- boundaries, Global Economy and security. By fueling civil tor for African Affairs and draws on the contributions of conflict and undermining Director for International scholars from different disciplines, countries’ ability to control Organizations and Peace- including international and com- their borders and resources— keeping. parative economics, political sci- as well as to provide for the She also writes and ence, development, and law.The essential needs of their citi- speaks frequently on a wide

new Center is an “incubator for zens—poverty helps render range of U.S. foreign policy ALSWANG RALPH ideas that matter.”These powerful many states vulnerable to a issues, including terrorism, produced a widely-circu- 2000 to 2004. By Rice’s cal- emergency food aid—rather ideas and insights benefit from range of transnational secu- non-proliferation, post-con- lated, detailed budget analy- culation, aid to Africa than in assistance for sus- extensive interaction with the key rity threats. flict reconstruction, UN sis in which she challenged increased by 56 percent in tainable development of the

stakeholders such as political lead- BAYER DANIEL Poverty erodes the affairs and democracy the assertion that American real dollars, a significant sort Africa needs to achieve ers and policymakers, academic Lael Brainard, vice president and director of the Global Economy and Development Center (center), participates in an Aspen capacity of weak states to promotion. assistance to sub-Sahara increase. “While laudable, lasting poverty reduction,” conference with Smita Singh, of the Hewlett Foundation (left), and Mary Robinson, former president of Ireland and founder ■ experts, and representatives from of the Ethical Globalization Initiative. “protect their citizens and In summer 2005, Rice Africa had tripled from the increase was mostly in she said. the private sector and non-gov- ernment organizations through conferences, roundtables, work- ference and edited volume, Off- provides nuanced insights into reemployment at lower pay.Their shops, writings, website resources, shoring White-Collar Work—The how offshoring redistributes dif- estimated cost of roughly $25 per Schwartz Chair in International South Africa) continues to trans- recent book, The Siberian Curse: and Far Eastern territories, and media outreach. Issues and the Implications, delved ferent parts of the value chain worker per year is a small price to Economics (see Schwartz article, form the international landscape, How Communist Planners Left Rus- including critical challenges of into questions about how this between high- and low-wage help displaced American workers page 35).The chair will tackle Global Economy is building its sia Out in the Cold, written with demographics, migration, and for- America’s Place in the latest wave of offshoring com- economies. get back to work more quickly, some of the big global competi- capacity to understand the eco- Brookings colleague Fiona Hill, eign and domestic investment in Global Economy pares with earlier episodes of In a policy brief,“Insuring seek opportunities in new sectors, tion challenges facing America, nomic challenges faced by these has attracted the attention of the the region. Brookings has helped to inject manufacturing offshoring in America’s Workers in a New Era and gain valuable on-the-job including how to address trade, nations and their impact on other highest policymaking circles in Global Economy was analysis and data into the some- terms of economic theory and its of Offshoring,” Brainard, senior training. technology, intellectual property nations and the international Russia for its innovative approach delighted to welcome new senior times heated debate on services impact on U.S. labor markets. fellow Robert Litan, and senior Brookings’s work on compet- rights, and a changing relation- system. to analyzing the costs of spatial fellow Erik Berglof, an expert on offshoring. Economic Studies They also considered India’s side research analyst Nicholas Warren itiveness was immeasurably ship between developed and Continuing his work on the misallocation of people and eco- transition economies and corpo- senior fellow Susan Collins and of the story, assessing the place of argued that the new wave of off- enhanced through the generosity developing countries. Russian economy, senior fellow nomic activity.A Russian-lan- rate governance. His distinguished Brainard devoted the 2005 services in its overall poverty and shoring and accelerated techno- of Bernard L. Schwartz, chairman Clifford Gaddy helped shape guage edition of the book that experience in helping to nurture Brookings Trade Forum to an in- development strategy.A series of logical change warrants a new of the board and chief executive Rising Economic Powers thinking both inside and outside will be appearing in early 2006 independent economics research depth examination of the multi- industry case studies sheds light insurance program to ensure officer of Loral Space & Com- As the rise of economic powers Russia on that country’s long- promises to launch a nationwide think tanks in Russia and other ple dimensions of offshoring (see on what industry characteristics against wage loss for permanently munications, with the establish- such as the so-called BRICS term development and its role in debate on the future of Russia’s transition economies is now Collins profile, page 9).The con- make offshoring more likely and displaced workers who secure ment of the new Bernard L. (Brazil, Russia, India, China, and the world economy. His most vast and resource-rich Siberian being applied to the much larger 10 11 GLOBAL ECONOMY AND DEVELOPMENT “No One Has More Moral Authority”

rom the moment nearly 30 years for leading codes of the onetime Euro- selves are able to “curb friendships.” Nelson Mandela the fight against apartheid pean colonial powers, Man- abuses of power,” Mandela The occasion for Fstepped from his car in South Africa. There was dela remained seated when declared, Africa will not Mandela’s rare trip to challenge of building the Global Okonjo Iweala, minister of ingly fragmented and chaotic. in the Brookings Institu- no need for Thornton to he spoke, in deference to have the peace and stability America, and his speech at Institute.The Institute, a research finance for Nigeria, and a rising The proliferation of federal agen- tion’s driveway on Massa- recall that Mandela and his his age and infirmities. required to end poverty and Brookings, was the launch- partnership among new economic star in the global arena. cies engaged in foreign aid has chusetts Avenue, spectators followers eventually won He said he brought find its rightful place in a ing of the Nelson Mandela think tanks throughout the rising Senior fellow Carol Graham created serious disconnects and applauded, jostled for posi- that fight, or that Mandela “good news” from Africa— globalizing world. Legacy Trust, which will economies that include Russia, brought fresh insights to the debate inefficiencies in the use of this tion to see him, reached out became the first democrati- the commitment to human Mandela was pleased raise money for use in China, India, and Brazil, is under- on globalization, poverty, and important tool of U.S. foreign to touch him. cally elected president of rights is broader and that President Bush has South Africa to help chil- taking new collaborative research inequality, by drawing on the eco- policy. In a bipartisan collabora- Many famous people South Africa, or that Man- deeper there than ever made a commitment to a dren, encourage peace and projects on cross-cutting issues. nomics of happiness. Graham and tion with the Center for Strate- have spoken from the dela won the Nobel Peace before, and a democratic new and more perform- reconciliation, provide assis- Brookings scholars Colin research fellow Andrew Felton gic and International Studies, podium in the Falk Audito- Prize for his efforts. consensus is taking hold ance-based approach to tance for health and educa- Bradford and Johannes Linn are completed a major research project Global Economy has convened a rium at Brookings—foreign Thornton did not have to across the continent. foreign assistance for tion projects, and train leading a multi-year project on the welfare effects of inequality wide-ranging group of thought- heads of state, cabinet sec- give the details of Mandela’s He called for a new Africa called the Millennium future leaders. examining the implications of in Latin America.They found that leaders in foreign aid, from gov- retaries, presidential candi- life. Everyone already knew. recognition of mutual obli- Challenge Account. He also When Mandela finished the rise of new economic pow- the excessive levels of inequality in ernment officials, to operatives in dates, authors, scholars. But And so Thornton intro- gations and responsibilities praised Bush’s promises of speaking, he hobbled down ers for the system of global gov- that region have significant nega- the field, to NGO workers, to none has produced such an duced him by saying very by Western nations and increased help in prevent- from the stage and made ernance.Their policy brief, tive effects on the welfare of the help bring coherence to foreign outpouring of emotion from simply, “I give you the inspi- African nations through ing and treating HIV/AIDS his way slowly back to his “Global Economic Governance poor in the region and positive aid.This group will issue a report the audience as Nelson ration of Mr. Mandela… substantially greater eco- and in educating African car, accompanied all the at a Crossroads: Replacing the ones for the rich. In contrast to the edited by Brainard in early Mandela did when he There’s no person on earth nomic assistance from the children. way by applause and

G-7 with the G-20,” laid out a BAYER DANIEL United States, where inequality spring,“Security by Other appeared here in May. who has the moral author- United States and other But Mandela did not shy shouts of praise and road map for expanding the Ali Mufuruki, of Infotech Investment remains a sign of mobility and Means: Foreign Assistance in the There were tears in the ity, who can speak with developed countries, and away from criticizing Bush encouragement. Group in Tanzania, addresses the eyes of some of those specta- greater passion, and be adherence by African lead- for the war in Iraq. And more tears and exclusive club of the G-7/8 Brookings Blum Roundtable in Aspen. opportunity for most people, in National Interest,” laying out a with leadership more representa- Latin America it is a sign of per- unified strategy and recommen- tors. Some brought their chil- more compelling.” ers to “internationally “Such disagreements accolades from his many tive of today’s global leadership. profile on foreign investments, sistent disadvantages for the poor dations across the whole range dren to see Mandela. They Dressed in a colorful accepted standards of are not uncommon among admirers. Those who heard Since its publication, they have and the social and market value and advantages for the rich. of foreign aid programs— knew they were in the pres- African shirt called a transparency, accountability, friends,” Mandela said. “In him speak at Brookings that held a series of high-level meet- derived from private-sector Global Economy also wel- humanitarian, strategic, military, ence of a truly great man. “Madiba” as a gentle rebuff and good governance.” fact, they are a mark of May morning will never for- ings to promote this proposal. In investments, all in an effort to comed the newly established economic, and post-crisis Frail now at age 87, his of the more formal dress Until Africans them- strong, candid, and honest get his visit. ■ September 2004, Bradford and galvanize the private sector by Wolfensohn Initiative on Effective reconstruction. close-cropped hair nearly all Linn co-hosted more than 30 highlighting the power of market Development, which will focus its A related policy brief,“Moving gray, Mandela had to lean participants from universities, forces to achieve social and eco- research and activities on identify- Toward Smarter Aid,” acknowl- on an assistant’s arm as he think tanks, and international nomic progress in the world’s ing, replicating, and scaling up edged that the Millennium Chal- made his way slowly organizations to advance think- poorest nations. effective approaches to develop- lenge Corporation got off to a through the crowded corri- ing on the G-20, including Global Economy welcomed ment.The initiative is currently in slow start, falling short of its goal dors and onto the stage in Canadian Prime Minister Paul distinguished fellow David its first phase of development, to award $5 billion a year to low- the Falk Auditorium. The Martin, a key champion of the DeFerranti, former vice president under the leadership of newly income countries which demon- audience rose and clapped G-20 approach. for Latin America of the World appointed Executive Director strate just government, investment long and loud when he first Bank, who will lead a major Linn. in people, and promotion of eco- appeared in the doorway. The Road Out of Poverty project to respond to the grow- Senior fellow and Harvard nomic freedom. However, the pol- Immediately, Mandela In a year filled with heightened ing need for innovative mecha- scholar Michael Kremer under- icy brief authors, visiting fellow demonstrated his wry sense interest in fighting global nisms to fund private enterprise, took a project aimed at providing Lex Rieffel and James W.Fox, for- of humor. poverty—from the celebrity- infrastructure, and social invest- reliable evidence concerning the merly chief economist for Latin As a pack of photogra- studded ONE Campaign to ments in the poorest countries. relative effectiveness of investments America at USAID, wrote that the phers crowded around him, United Nations stock-taking on Coinciding with the semiannual in water quality, reliable supplies of idea of Millennium Challenge the world-famous father of the Millennium Development meetings of the World Bank and sufficient water, hygiene educa- grants is still valid, and urged South African independence Goals—the second annual the International Monetary tion, and basic sanitation in devel- patience, flexibility, and more joked, “It’s the first time for Brookings Blum Roundtable in Fund, the Brookings Institution, oping countries.This work will enthusiastic support from Con- me to be photographed.” Aspen, Colo., tackled the subject in partnership with the develop- help policymakers to prioritize gress in order to make the pro- The audience laughed. “I’m from a fresh perspective.The ment banks of France, Japan, and investments aimed at meeting the gram successful. not used to it,” he jested roundtable convened preeminent Germany, held a briefing which United Nations Millennium These are just some of the with a twinkle in his eye. leaders from diverse sectors to examined the potential for inno- Development Goals. practical ideas being advanced by Brookings Board Chair- explore the role of arguably the vative financial mechanisms to Finally, while the amount of the scholars of the Global Econ- man John L. Thornton most powerful component in help close the gap between lofty foreign assistance has increased in omy and Development Center in introduced Mandela. There global poverty relief: the private international goals and the reality recent years, the way it is organ- its high-visibility efforts to address was no need for him to Brookings Chairman John Thornton sector. Participants discussed of tight aid budgets, which fea- ized and delivered by the U.S. the challenges of globalization and mention that Mandela had greets Nelson Mandela as he arrives ■ to speak on America’s aid to Africa. entrepreneurship, the risk/return tured the Honorable Ngozi government has become increas- global poverty. been confined to prison for ALSWANG RALPH 12 Governance Studies

he past year has been marked by intense partisanship over foreign policy, Supreme Court nominations, the budget and other substantive national issues. So it could not have been more timely for the Brookings Governance Studies program—which has always examined the means and mechanisms by which democracies around the globe govern themselves—to plan a comprehensive analytic study of the political polarization of America. After all, as Brookings President Strobe Talbott explained, clarifying the problem of polarized politics and its possible solutions is a fitting project for the Institution. “We try to accomplish that goal both in what we do and how we do it,” he said.“Our thinking about political polarization guides our research about critical public policy choices and our efforts to ensure Tthat our brand of scholarship maintains the highest standards both of substance and of civility of discourse.” Under the guidance of Brookings Vice President Pietro Nivola, the approach to the question is comprehensive—with scholars examining every major institution of the U.S. political process—the electoral sys- tem, the media, the role of religion, the courts, the Congress, and the executive branch.The project will divide the subject of political polar- ization into what Nivola calls the five “Cs”: Characteristics, Causes, and Chronology (historical context), as well as Consequences and possible Correctives.The endeavor will also be bi-coastal—involving a partner- ship with scholars at Stanford University’s Hoover Institution. Three prominent guest scholars will contribute to the project from the perspective of the “fourth estate”—Jonathan Rauch of the National Journal, winner of the 2005 National Magazine Award; New Republic Editor Peter Beinart, who is writing a book on the liberal tradition in U.S. foreign policy; and Gregg Easterbrook of the New Republic. In a related effort, Brookings visiting fellow Michael McDonald of George Mason University, in partnership with John Samples at the Cato Institute, will examine the competitiveness of U.S. elections, and explore the polarizing effect of congressional redistricting.The endeavor is a natu- ral sequel to McDonald’s and Brookings senior fellow Thomas E. Mann’s work over the years exploring the flaws in congressional redistricting. Pietro Nivola, vice president and director of Governance Studies, William A. Galston, a prominent political theorist who accepted a listens to panelists at a judicial

senior fellow appointment for 2006 in Governance Studies, will work ALSWANG RALPH issues forum. 14 GOVERNANCE STUDIES Fixing Our Polarized Politics

n the last 40 years, politi- the faith community, the courts, cal polarization has and Congress. Iincreased dramatically. In Through a series of public the 2004 presidential election forums, research papers, and process of selecting and confirm- Campaign finance reform cycle, the nation’s eyes were other scholarship, Galston will ing nominees for the federal remained on the Governance Senior Fellow E.J. Dionne Jr. and journalist opened anew to a divided spearhead several other high- Gwen Ifill review the results of a poll on college bench. Her analysis has proven Studies radar as scholarship con- students and civic engagement. political playing field. How did profile projects that look at particularly timely as the Senate tinued to monitor the impact of we get here? What implica- the core questions of Ameri- remains embroiled in a showdown the McCain-Feingold law, and its tions will this have on future can public philosophy. Among over advice and consent rules— interpretation by the courts. The political issues? And will we these are how to ensure another stark manifestation of the New Campaign Finance Source- be able to fix the mess that is partisan rift in American politics. book—edited by Mann, along polarization? Thanks to the Knight Founda- with nonresident senior fellows William A. Galston, former tion, senior fellow Thomas E. Anthony Corrado and Trevor Clinton White House official Mann and Norm Ornstein of the Potter, and University of Virginia and Saul Stern Professor at American Enterprise Institute will School of Law professor Daniel R. the School of Public Policy at team up once again to monitor Ortiz—offers an updated overview the University of Maryland, the implementation of the Help of this controversial subject.The will join the Governance Stud- America Vote Act and amend- viability of campaign finance reg- ies program as senior fellow in ments being considered by Con- ulation over the long haul 2006. Author of six books and gress.This project will fill a critical “depends on whether a party or nearly one hundred articles niche in the extensive array of presidential candidate seizes the on questions of political and organizations and individuals opportunity to elevate political moral philosophy, American working to improve election reform as a campaign and govern- politics, and public policy, administration and ensure that the ing issue,” Mann told the Christian Galston is tasked with explor-

RALPH ALSWANG RALPH diverse projects and activities in Science Monitor. ing the wide-ranging causes, Senior Fellow Sarah A. Binder, flanked by visiting fellow Stuart Taylor (right) and this policy arena are leveraged on In the Religion in Public Life consequences, and possible Elliot Mincberg of People for the American Way, considers the balance of behalf of needed improvements in project, senior fellow E.J. Dionne, correction of polarized politics independence and accountability in the judicial system at a Judicial Issues RALPH ALSWANG RALPH Forum. the voting law’s implementation. Jr., in collaboration with the Pew in a new program initiative: ALSWANG RALPH “Red and Blue Nation? Senior Fellow William A. Galston to study red and blue nation. on several high-profile projects Supreme Court, the forums gave Forum on Religion and Public Life, the National Working Commission Causes, Consequences, and pertaining to core questions of the public a spirited but civil U.S. Supreme Court Justice Stephen published four volumes in the Pew on Choice in K–12 Education, Get- Corrections of America’s Breyer speaks at Brookings about Polarized Politics.” equity between generations in American public philosophy (see debate. Former Deputy U.S. the court’s interpretation of the Forum Dialogues Series.The next ting Choice Right: Ensuring Equity and Galston profile, page 17). Attorney General Larry Thomp- Constitution, and the court’s installment, Is There a Culture War? A Efficiency in Education Policy. The increasing microscope an aging society, and how to Governance Studies also son, former U.S. Solicitor General relationship with Congress and Dialogue on Values and American Polit- Another widely received Brown of the media and the rise of advance policies that are in the executive branch. launched an initiative on Judicial, Theodore Olson and the Honor- ical Life, due out in 2006, brings Center report on math testing new mediums of communica- the nation’s long-term interest Constitutional, and Legal Issues able Pierre-Richard Prosper, the together the voices of scholars and raised some tough questions of its tion, such as “blogs,” or web in a political environment recognizing the need for a better administration’s ambassador-at- journalists engaged in the religious own. Loveless reviewed math items logs, have permanently biased toward short-term public understanding of jurispru- large for war crimes issues, helped and policy realms to explore their on the National Assessment of Edu- changed the way people gains—an issue Galston feels dence and the relationship provide a rich and balanced pic- issues in depth. cational Progress (NAEP), often understand the news and strongly about. between the courts and Congress. ture of the state and direction of The health of a vibrant democ- called “the nation’s report card” form their opinions of party “Politics is slow work,” he A series of seminars have addressed the American judicial system.The racy rests in no small part on the because it seeks to measure student politics. said. “It is the antithesis of core constitutional questions such year culminated with the appear- education of its citizens.Thus, the performance among the states.The Galston believes that the instant gratification.” as the tension between civil liber- ance of Associate Justice Stephen work of Tom Loveless, senior fellow research showed that the test is 24-hour, seven-day-a-week In a public forum on politi- ties and security, the composition Breyer, an articulate voice on the and director of the Brown Center insufficiently challenging when it news cycle has changed the cal polarization, Galston of the high court, theories of sov- Supreme Court since 1994, who on Education Policy, continues to comes to arithmetic.The findings way people form their political quoted German sociologist ereignty, and the independence and spoke in Falk on the Court’s make a valuable contribution to the cast a disturbing light on recent convictions, giving way to an Max Weber, who called politics accountability of the judiciary.The interpretation of the Constitution, Governance Studies program’s highly publicized math gains as approach to political party “the strong and slow boring of public dialogues—moderated by the Court’s place in relation to agenda.The 2005 volume of the measured by the NAEP assessment, affiliation that creates a hos- hard boards.” nonresident senior fellow Stuart Congress and the executive Brookings Papers on Education Policy and have implications for the “No tile and polarized political “He’s right,” Galston said. Taylor, Jr., of the National Journal— branch, and recent decisions on examined two decades of major Child Left Behind” law.That sweep- environment here in Washing- “I think we need a more presented high-caliber panelists religion, free speech, affirmative reforms that hold promise for the ing education reform initiative will ton, and across the nation. patient, farsighted culture with diverse views. action, and privacy. future of K–12 education in the be up for renewal by the next presi- The new project on partisan than we have, and everything Whether held before a packed Building on this important dis- United States.After several years of dential election and has joined the polarization will cover every in American culture today house in the Brookings Falk course, Brookings senior fellow assessing charter schools and the many unsettled issues that hang in major institution involved in the tends toward impatience and Auditorium, broadcast live on Sarah A. Binder continued her concept of school choice, the Center the balance of today’s charged polit- U.S. political process, including shortsightedness. That is a

C-SPAN, or hosted at the study of the increasingly strained QUALLS ANDY also advanced the final volume of ical environment. ■ the electoral system, the media, deep problem for politics.” ■ 16 17 Foreign Policy Studies

aunting policy challenges require complex analysis and solu- tions. Brookings Foreign Policy scholars, with their firsthand knowledge of policymaking and their expertise on a myriad of regions and issues, were at the forefront of analysis of major foreign policy challenges this past year.They grappled with a multitude of global topics that made headlines, including U.S. goals and strategy in Iraq, continued threats posed by al Qaeda, the specter of a nuclear armed North Korea and Iran, the mending of strained transatlantic relations, the rapid rise of China as a global superpower, and many others. “We are in one of the most dynamic periods of foreign policy, in which the very questions concerning what the role of the United States in the world is, and what our objectives and strategy should be, are up for grabs and on the front page of the newspapers every day,” said James DB. Steinberg, vice president and director of the Foreign Policy Studies program for the past four years. Foreign Policy scholars analyzed events across the globe and provided policymakers, the public, and the media with timely, informed, and inde- pendent analysis and recommendations.They shared their expertise in congressional testimony, press briefings, panel discussions, countless media interviews, online dialogues, op-eds, books, papers, and reports. Carlos Pascual, former U.S. ambassador to Ukraine and director of the State Department Office of Reconstruction and Stabilization, was appointed to succeed Steinberg in early 2006. Steinberg will become dean of the Lyndon Baines Johnson School of Public Affairs at the Uni- versity of Texas. Post-war Iraq continued to dominate the headlines at home and abroad, as that country held its first free election in 52 years, celebrated the first anniversary of the transfer of sovereignty to the Iraqi people, and struggled to achieve a political arrangement for its future government against the backdrop of ongoing conflict. Foreign Policy Studies, on the cutting edge of the policy debate, drew on the expertise of its Saban Cen- ter for Middle East Policy, directed by Martin Indyk, former U.S. ambas- sador to Israel and former assistant secretary of state for Near East affairs. The Center boasts top analysts Flynt Leverett, Kenneth Pollack, Peter James Steinberg, outgoing vice Singer, and Tamara Wittes, who joined Steinberg and senior fellows Ivo president and director of Foreign Policy Studies, moderates a panel Daalder, Michael O’Hanlon, and Phil Gordon in providing analysis and pol-

previewing the July G-8 meetings. ALSWANG RALPH icy recommendations on the situation in Iraq and the broader Middle East. 19 FOREIGN POLICY STUDIES FOREIGN POLICY STUDIES

The Saban policy experts in Europe, China, One of the greatest foreign is a professor of global leadership Center organized Russia, South Asia, and Mexico. policy challenges today and in the at Tsinghua University in Beijing. numerous ground- Concerns about homeland future is China, a country whose “With the launch of the China breaking panel security are at the top of the economic, military, and political Initiative, Brookings is now poised discussions and agenda for decision-makers at sev- power is growing at an unprece- to establish itself as a key destina- conferences and eral levels of government in the dented rate.This year Brookings tion for both Chinese and Ameri- hosted many of United States. Steinberg and officially launched the China Ini- can policymakers seeking to the world’s lead- O’Hanlon, along with senior fel- tiative, headed by senior fellow understand China’s critically Sen. Joseph ers, including Jalal Biden of low Richard Falkenrath, a former Jeffrey Bader, a former senior offi- important role in today’s world.” Talabani, the new Delaware speaks deputy homeland security advisor cial in the U.S. government (see Northeast Asia remains a president of Iraq. with reporters and deputy assistant to President Bader profile, page 23). region of particular importance after delivering Talabani’s speech his address on a Bush, research fellow Jeremy The initiative, established for the United States, with its at a Brookings New Compact Shapiro, and d’Arcy, developed through the generosity of Brook- vibrant economic activity and two event, held a week for Iraq. strategies for cooperation among ings Chairman John L.Thornton, complex security challenges: before his first local, state, and federal govern- explores the dynamics of China’s North Korea’s nuclear program official meeting ments and the private sector to transformation and emergence as a and the China-Taiwan dispute. with President improve homeland security. political and economic giant, and The Foreign Policy Studies pro- Carlos Pascual STATE DEPARTMENT STATE Bush in Washing- Transnational threats to U.S. the implications for the United gram continued its commitment

ton, was his first national security also remain a ALSWANG RALPH States, China, its neighbors, and the to analyzing critical issues in that Pascual Joins on U.S. soil.The high priority for policymakers. Richard Bush, senior fellow and world. Senior fellow Jing Huang, region through the Center for director of Center for Northeast Asian Brookings newly elected Senior fellow Susan Rice contin- Policy Studies, speaks at the launch an expert on U.S.-China crisis Northeast Asian Policy Studies leader provided ued her multiyear research project of the Brookings China Initiative. management, civil-military rela- (CNAPS). mbassador Carlos enormous insight that explores the possible links tions, and China’s security policy- Under the leadership of

Pascual, currently direc- into the compli- ALSWANG RALPH between poverty in developing officials to engage regularly in off- making, joined a team of Brook- Richard Bush, who holds the Ator of the State Depart- cated reconstruc- countries and threats to U.S. the-record discussions. ings analysts that will expand as the Michael H. Armacost Chair, ment Office of Reconstruction tion process and the need for con- This year’s fellow, Michael B. O’Hanlon, who holds the Syd- national security, including the In February 2005, on the eve challenge of China grows. CNAPS welcomed five new visit- and Stabilization, will join the tinued U.S. military assistance in d’Arcy, a physicist, co-wrote a ney Stein Jr. Chair, continued to spread of infectious diseases, envi- of President Bush’s trip to Europe, “The rise of China and its ing fellows from China, Hong Brookings Institution as vice Iraq. study,“Untapped Potential: U.S. spearhead the “Iraq Index” project ronmental degradation and global 60 prominent foreign policy and impact on the world is the most Kong, Japan, South Korea, and president and director of Foreign A flagship event for Foreign Science and Technology Coopera- at Brookings. Launched in 2003 jihadi terrorism (see Rice profile, national security leaders from both important geopolitical event of the Taiwan. Fellows participated in Policy Studies February 1, 2006. Policy Studies and for the Saban tion with the Islamic World,” and updated biweekly with data page 11). sides of the Atlantic, coordinated 21st century,” said Thornton, who the Center’s 10-month research “The world is at a critical Center this year was the U.S.- which led to a policymaker con- from the U.S. government and In the aftermath of the U.S. by CUSE scholars, signed a juncture in the conduct of inter- Islamic World Forum, which held ference in Washington and subse- other sources, the Index is an in- military intervention in Iraq, the “Compact Between the United national security policies,” Pas- its second annual conference in quent discussions in Doha. depth, nonpartisan, comprehensive United States and Europe contin- States and Europe.”The Compact cual noted. “The nature of power Doha, Qatar, and is a major com- The Saban Center also hosted assessment of rebuilding efforts in ued to struggle to mend fences went beyond the customary calls states and the challenges they ponent of Brookings’s Project on its sixth Daniel Abraham Israeli- Iraq. It tracks progress using sev- and improve transatlantic relations. for transatlantic cooperation and present have changed com- U.S. Policy Towards the Islamic Palestinian Workshop in February eral indicators, including statistics The Center on the United States spelled out concrete, specific pol- pletely from the Cold War era.” World.The forum is the premier 2005 at Brookings. Israelis, Pales- on security, democracy-building, and Europe (CUSE), founded in icy measures for dealing with Iraq, He was U.S. ambassador to convening body for American and tinians, and Americans engaged in and economic transformation.The 2004 and directed by senior fellow Iran, peace prospects, and democ- Ukraine from 2000 to 2003, Muslim world leaders in the fields strategic discussions on elections, Index, published on the Brookings Gordon, provided top-notch analy- racy in the Middle East, China, where he helped the government of politics, business, media, acade- Gaza disengagement, and negotia- website, is consulted widely by sis of the transatlantic relationship the International Criminal Court, strengthen grassroots demo- mia, science, arts, and civil society. tions for peace in the Middle East. journalists, experts, and many oth- and organized high-level dialogue and climate change. cratic initiatives, fight terrorism, The Doha conference also Senior fellows Pollack and ers, and appears regularly on the and public debate. Shapiro is direc- “The split that had emerged and build a strong private sector. included a groundbreaking dia- Leverett, both former officials in op-ed page of The New York Times. tor of research, and Omer Taspinar between the two sides of the From 1995 to 2000, Pascual logue on U.S.-Islamic cooperation the Bush administration, published The war in Iraq has raised crit- directs the program on Turkey. Atlantic in recent years was deeply was on the White House National in science and technology.The books on U.S.-Middle East Policy. ical questions about U.S. policy CUSE also boasts programs on damaging to the interests of both Security Council, ultimately as John D. and Catherine T. Pollack’s The Persian Puzzle: Con- priorities and strategies to deal France, Italy, and Eurasia in addi- the U.S. and Europe,” said CUSE senior director for Russian, MacArthur Foundation and flict Between Iran and America looks with terrorism at home and tion to its broader analysis of global director Gordon.“The Compact is Ukrainian, and Eurasian Affairs, Lawrence Livermore National at the history of the countries’ abroad.The Brookings Project issues important to Europe and a demonstration that agreements where he helped guide U.S. pol- Laboratory supported a science relationship and at the future of on Force and Legitimacy in an U.S.-Europe relations.The Daimler- on common policy challenges are icy during the most important and technology fellowship at U.S. policy toward Iran. Leverett’s Evolving International System, led Chrysler U.S. European Forum both necessary and possible, and political transformation at the Brookings, designed to help bridge Inheriting Syria: Bashar’s Trial By by Steinberg and Daalder, con- on Global Issues, organized by that a comprehensive strategy can RALPH ALSWANG RALPH end of the 20th century. the gap between the natural sci- Fire examines Syria’s new political vened senior-level, bilateral meet- Daalder, provided a valuable venue be forged to deal with the full Former National Security Advisor Brent Scowcroft at a Brookings presentation on ences and the policy community. role in the Middle East. ings with government officials and for senior American and European range of key challenges we face.” high-level threats. 20 21 FOREIGN POLICY STUDIES Following China’s Transformation

effrey Bader remem- remembers the more seri- headed by a bers his first assign- ous moments in dealing Chinese scholar Jment in Beijing as a with China during his 27- to interact with political officer at the U.S. year diplomatic career. Chinese aca- sectarian violence, and several won the prestigious 2005 Univer- Embassy. He was acting director demics, nuclear crises with its much larger sity of Louisville Grawemeyer It was 1981, in the days of the State Department’s researchers, and neighbor, India. Award for Ideas Improving World of tight, stifling Commu- China desk when Chinese government Cohen coordinated a number Order. She shares this award with nist rule, long before the officials violently sup- officials. of Brookings-wide initiatives on Francis Deng, former special repre- rapid economic develop- pressed protest demonstra- What does India and South Asia, including sentative of the United Nations ment, the skyscrapers, the tions in Tiananmen Square this old China collaborations with think tanks in secretary-general on internally dis- shiny automobiles, the in 1989, and he wrote the hand see when India to produce joint books and placed persons and former co- trappings of modern life. memo recommending he looks ahead? conferences. He also organized a director of the project. Deng was “My first memory of sanctions against the Bei- “By the mid-

series of off-the-record senior- succeeded in 2004 by Walter Kälin, China was the monochro- jing government. dle of the 21st ALSWANG RALPH level dialogues designed to help of Switzerland, the newly matic dullness of Beijing,” He was director of the century, China Jeffrey Bader, senior fellow and the United States and its allies appointed representative of the sec- Bader said, “the empty China desk at the time of will be the sec- director of the China initiative, speaks at the initiative’s launch last fall. cooperate to reduce the threat of retary-general. In awarding this stares, the colorless saber-rattling tensions ond most impor- nuclear conflict in South Asia, prize to Roberta Cohen and clothes, the blank faces of between Mainland China tant nation on earth,” after petitors,” not enemies. and he began a new project on Deng, the judges cited the impact the people.” They were and Taiwan. the United States, Bader He said that China is India as a strategic partner of the of their ideas in helping to shape stiff, stilted, afraid, he said. He called the Ameri- said. “Think of China as a not acting like an impe- United States. more effective international poli- By the time he can Embassy in Beijing on continent, not merely a rial power with expan- Foreign Policy scholars exam- cies on emergencies such as the returned in 1987, Beijing June 6, 1989, and nation.” sionist ambitions. Rather, ined a range of 21st-century chal- Darfur crisis in Western Sudan. was “a city transformed,” instructed officials there Along the coast, he he says, China is largely lenges that transcend traditional Roberta Cohen was also Bader said. The endless to grant political asylum said, China will have the self-absorbed with its boundaries and institutional bestowed the 2005 Social Sciences flow of jingling bicycles to astrophysicist and dis- largest middle class in the own economic growth structures, requiring creative, new Award by the Washington Academy along the boulevards sident leader Fang Lizhi, world. But inland, the and internal problems. solutions. of Sciences “in recognition of her was being replaced by one of the leaders of the “massive weight” of hun- Still, Bader warns, China

URI IRAM Senior fellow Roberta Cohen, activity as an observer and analyst cars. The women wore Tiananmen protests. dreds of millions of peas- and the United States Martin S. Indyk, Senior Fellow and director of the Saban Center, Secretary of State Condoleezza Rice, and Haim Saban, co-director of the Brookings-Bern of conflicts, her defense of human lipstick and eye makeup Bader was the princi- ants could hold back could stumble into con- founder of the Saban Center, attend the Saban Center’s second annual U.S.-Israel dialogue held in Jerusalem. Project on Internal Displacement, rights, and her advisory role to and attractive hairstyles. pal planner for the historic China’s growth and pros- flict if there is a “miscal- national and international institu- The people felt comfort- trip to the United States of perity. The social and eco- culation,” most likely program, conducted individual North Korea, was a key source of foreign policy toward neighboring tions for policymaking.” able conversing with a Chinese leader Jiang nomic inequities could over Taiwan. and collaborative research, inter- information and insight into the states in Eurasia. In the wake of the The rapid rise of China and Westerner. Zemin. And he was the lead to unrest, he said. But, for now, Bader acted with the U.S. policymaking complex challenge of North Beslan terrorist attack in September India as economic powerhouses “There finally were principal planner for Presi- And what about said, “It is in the best community, and participated in a Korea. Pritchard spoke on this 2004, Hill, who was in Russia for a competing with the rest of the good restaurants where I dent Clinton’s trip to China. China’s relations with the interest of both coun- rich array of policy seminars, issue at more than 40 public events conference, was privy to a sponta- world for limited energy resources could enjoy lunch and din- And now he’s planning United States? tries to engage in a rela- roundtables, and discussions. and gave 260 media interviews. neous private briefing with Presi- has pushed energy security to the ner,” Bader said. to open a Brookings China He envisions the two tionship of economic and CNAPS Director Bush offered Russia continues to play a dent Vladimir Putin at his official forefront of global concerns.The Of course, Bader also Initiative office in Beijing, nations as “friendly com- political cooperation.” ■ his insight into the complex paramount role in world affairs. residence outside Moscow. Hill and program launched a major study to nature of cross-strait relations Global efforts to combat terror- Gaddy both took part in a follow- examine energy security strategies between China and Taiwan in his ism, secure weapons of mass up meeting in September 2005 in in three major consumer countries and other leading public policy Force on Transparency. Easterbrook of Economic Studies newest book, Untying the Knot: destruction, resolve many regional the Kremlin. in greater Asia—China, India, and organizations to recommend Brookings Environment Scholar also conducted important research Making Peace in the Taiwan Strait. conflicts, and stabilize critical South Asia is characterized Japan—as well as energy policy- reforms that would strengthen the David Sandalow convened a number on climate change. The book outlines historical and energy resources all require coop- both by a daunting set of security making in the major producing UN on a number of fronts, includ- of bipartisan meetings to help Peter Singer, Brookings National political issues that combine to eration from Russia and support challenges and a number of new countries of Saudi Arabia, Iran, ing its ability to respond to policymakers shape innovative solu- Security fellow, published the widely make the Taiwan Strait issue so from its leaders. strategic and economic opportu- Iraq, Qatar, and Russia.The project humanitarian crises and to control tions to pressing environmental acclaimed Children at War, a book complicated; it also recommends Senior fellows Fiona Hill and nities. Brookings published The aims to analyze the implications of the spread of weapons of mass issues, including climate change, that examines the growing and steps to resolve these issues. Clifford Gaddy focused throughout Idea of Pakistan, a book by senior these nations’ policies for the destruction. oceans governance and agricultural global use of children as soldiers.An In September 2005, when the year on the dynamics of Rus- fellow Stephen Cohen, which was United States and for the global Florini also continued her work subsidies. In February, as the earlier book by Singer, Corporate North Korea committed to giving sia’s economic and political devel- named outstanding academic title energy security environment. with the World Economic Forum Kyoto Protocol entered into force Warriors:The Rise of the Privatized up its nuclear weapons in opment, especially the enormous by Choice magazine.The book In other arenas, senior fellows on the Global Governance Report, without the United States, Brook- Military Industry, won the American exchange for energy aid and secu- impact that Russia’s energy sector presents a panoramic portrait of Ann Florini, O’Hanlon, and an annual assessment of how well ings hosted Senators Chuck Hagel Political Science Association’s 2004

rity assurances, the international has on its foreign and domestic pol- this complex country—from its ALSWANG RALPH Daalder were part of a bipartisan, the world is progressing toward (R-NE) and John Kerry (D-MA), Gladys M. Kammerer Award for best community remained cautiously icymaking. Hill and Gaddy are origins as a homeland for Indian Phil Gordon, senior fellow and congressionally mandated U.S.Task meeting the Millennium Develop- who offered recommendations to political science publication. CNN optimistic.Visiting fellow Charles examining Russia’s dependence on Muslims to a military-dominated director of Center on the United Force on the United Nations. ment Goals agreed upon at the improve climate change policy and included Singer in their “2005 New States and Europe, speaks at a “Jack” Pritchard, former U.S. spe- oil revenue, its energy relations with state that has experienced uneven Brookings panel discussion Brookings collaborated with the UN in 2000. In addition, Florini diplomacy. Senior Fellow Warwick Guard,” an annual list of the “next cial envoy for negotiations with key states like China, and Russia’s economic growth, political chaos, previewing the annual G-8 summit. United States Institute for Peace co-chaired an international Task McKibbin and Visiting Fellow Gregg generation of newsmakers.” ■ 22 23 Metropolitan Policy

he Metropolitan Policy program experienced an exceptional year as it continued to influence officials and opinion lead- ers across the country.The program had a tremendous impact on pol- icy—not just in Washington, but in state capitals, city halls, suburban centers, and the seats of regional governments. Metro scholars gave nearly 200 briefings to state and local officials, as their work directly affected legislation in places ranging from Harrisburg, Pennsylvania, to San Francisco, California. “The real action is happening in state capitals and city halls,” said Brookings vice president and Metropolitan Policy director Bruce Katz. Metro is constantly sought after by policymakers, citizens, and the media for its analysis of the trends shaping America, as well as its inter- pretation of how those trends are best addressed with fact-based policy Tprescriptions. Metro pursues a deliberately integrated agenda, knitting together dis- parate but mutually reinforcing areas of policy into a coherent frame- work. “We cannot overestimate the role states play in areas such as metro- politan growth and development,” said Katz.“States decide government jurisdictions, and the authority of those jurisdictions, for everything from growth planning to schools. “And the tax, spending, and regulatory actions of the states—on everything from transportation to housing to economic development— dramatically shape the economic and physical landscape of cities and metropolitan areas,” he said.“Much of the need is at the state and local level, and many of the best ideas and most relevant innovation is coming from cities and states.” Taking action requires a clear interpretation of the country’s contin- uous population and economic shifts. Metro has quickly become the go-to center for this kind of data and analysis.Visiting fellow William Frey, Metro’s top demographer, showed that the “great migration” north by African-Americans had reversed and many black residents are now returning south.And, writing for Metro, university professor David Fasenfest led a report on how the shifting movement of immigrants and Bruce Katz, vice president and people of color made mixed-race neighborhoods the norm in the director of Metropolitan Policy, briefs members of the U.S. Senate Banking United States. Fasenfest is associate professor of urban and labor studies Committee on the impact of Hurricane

at Wayne State University in Detroit. ALSWANG RALPH Katrina on key urban policy areas. 24 METROPOLITAN POLICY Katrina’s Lessons in Recovery ast year, just as Asia Brookings put together conversation should focus security capability as well as the relationship between the was beginning to an interdisciplinary panel special attention on alleviat- its ability to use the armed unusually severe hurricanes Lrecover from a dev- discussion to assess the fed- ing concentrated urban forces for coping with natu- and global warming. Ron astating tsunami, Hurricanes eral, state, and local poverty and creating ral disasters on the home Haskins looked at the legacy Fellow Alan Berube’s report Katrina and Rita struck response—and identify next healthy, mixed-income front. for children in those hard-hit “The Shape of the Curve” found America’s Gulf Coast with steps that might speed the neighborhoods. Amy Liu The event was well- areas. that the number of central cities deadly force, leaving thou- recovery of the region and focused on local recovery attended and well-covered. It Looking forward, Brook- with a strong middle class has sands homeless, temporarily its people. Pietro Nivola and and reconstruction, and was also webcast so that ings will continue to put an doubled to 29 in the last 20 crippling the U.S. refining Tom Mann from Governance Katz, Liu, Mark Muro, and reporters around the coun- emphasis on action as well years—refuting conventional wis- industry, and devastating Studies surveyed the bat- Berube issued an important try, including those deployed as analysis. Katz continued dom that cities are populated the historic city of New tered political landscape and report on the history of geo- to the Gulf Coast, might use to share our expertise on solely by the poor. In 58 of the Orleans. assessed the implication for graphically concentrated it for their own coverage. It the proper federal response 100 largest cities, there is still a Within days, the Brook- America’s ongoing experi- poverty in New Orleans. was also picked up widely by to the long-term recovery of struggle to grow or attract middle- ings community responded ment in federalism. Jim Steinberg, Michael the international media—in the Gulf Coast. class households. Berube’s report, professionally and person- Metropolitan Policy O’Hanlon, and Richard fact, Brookings president Finally, members of the which showed how to take on ally, donating time and focused on Katrina’s assault Falkenrath from Foreign Strobe Talbott tuned into Brookings community that challenge, was reported in money; weighing in with on New Orleans’ most vul- Policy Studies—a team that the broadcast in a hotel responded in the way so major regional media, and became analysis and recommenda- nerable residents and neigh- could draw on a combination room in Helsinki, where he many Americans did—with required reading for students of tions on the immediate cri- borhoods, which reinvigo- of scholarship and govern- and scholar Ann Florini were personal contributions of urban policy. sis; and examining the rated a dialogue on race and ment service in Republican participating in a conference money and time. As we go Meanwhile, in some metro deeper and more long-term class in America. Bruce Katz, and Democratic administra- on her specialty, global to press, Brookings has con- areas, residential and commercial deficiencies in national infra- vice president and director tions—analyzed the hurri- governance. tributed more than $18,000 growth is expected to continue at a structure and governance of Metropolitan Policy, and cane as a test of the United David Sandalow later by donating cash and rapid pace.Accordingly, guest that Katrina exposed. Alan Berube argued that the States’ post-9/11 homeland testified before Congress on accrued annual leave. ■ scholar Arthur Nelson produced a

report that reframed planning to ALSWANG RALPH focus not on typical urban hand- Amy Liu, deputy director of Metropolitan Policy, (left) and Myra Dandridge, staff member of the U.S. Congressional Black Caucus, prepare for a Capitol Hill briefing. wringing but on preparing for into the middle class. Flawed mar- bring back important lessons and task force is due to deliver its final Living Cities, UMI’s work will growth. Nelson is a professor and ket knowledge by business, and to share the successes and failures report and recommendations early drive both public and private director of urban affairs and plan- solidated and published in book Strategies,” Heywood Sanders cess and investor appeal. His report, poor consumer information are at of the American experience this year, focusing on how the city investment in America’s cities by ning with the Metropolitan Insti- form this year. found that the convention market- “Turning Around Downtown: the heart of the problem—and abroad. Metro’s collaboration with can preserve and increase its afford- building the infrastructure for tute at Virginia Tech. Metro’s work was often tailored place is declining and not the silver Twelve Steps to Revitalization,” open the door to predators.The the London School of Economics able housing stock.The task force is data-driven decisions. In the run-up to the 2004 pres- to local needs.Throughout the bullet many localities think it is. yielded requests for on-the-ground report sparked a Philadelphia City (LSE) has generated substantial also devising policies for achieving UMI collaborated with a com- idential election, Frey examined the country, jurisdictions struggled Sanders—professor of urban studies assistance in many communities. Council hearing, where Katz testi- attention from U.K. policymakers, a Rivlin recommendation that the munity of experts from govern- political scene and landscape. His with the question of how to in the political science department Metro frequently was called fied. Pennsylvania began working including adoption of planning city grow by 100,000 through ment and public-sector organiza- analysis showed that the electoral finance mass transit. Fellow Rob at Trinity University in Texas— upon to conduct comprehensive on regulations to curb financial principles outlined by Metro pro- retention, growth, and new resi- tions to develop the National map will shift dramatically by Puentes examined the Washington, showed that most convention and analysis and recommendations—in abuses, and the governor gram head Katz.Two papers pro- dents—a goal that was adopted by Infrastructure for Community Sta- 2030, with major pickups of elec- D.C., area’s mass-transit funding tradeshow business is ailing, raising many cases, formulating a full-policy appointed a special liaison to the duced by Brookings for the U.K. Washington, D.C.’s mayor. tistics, an Internet-based market- tors in Sunbelt states and possible needs, and his analysis and recom- questions about state and local framework. In Pennsylvania, a wide- insurance department to discover audience on the importance of BGW,with several partners, is place to share thousands of data major losses in older states such as mendations led to Capitol Hill tes- investments in convention venues. ranging report covered key factors means of reducing the inflated healthy, mixed-income neighbor- in the third year of an initiative to sources.And the UMI held an Pennsylvania and New York. Frey, timony, new federal legislation, and These venues are not generating that must be aligned for healthy price people in those neighbor- hoods resulted in a new pilot pro- improve primary-healthcare qual- “Industry Roundtable” on retail who also provided a clear view of a plan to develop a dedicated rev- the kind of local revenues or hotel growth.That report continued to hoods pay for auto insurance. gram to create mixed-income ity and access for low-income and commercial development that the rise of the Latino voter, was a enue source as recommended.The occupancies they claim. Many inform policies and political dis- The issues and recommenda- communities in nine cities. Katz residents.The solution pivots on brought together business leaders key source for media, academics, transportation series also included cities with convention center proj- course. Similar work began in sev- tions contained in the report apply also joined a two-year effort led by increasing the capacity of com- from across the country to identify and decision-makers in the past an examination of mass-transit ects on the drawing board re- eral other states, including Maine, to most U.S. cities. In San Fran- LSE to assess the future of global munity health centers and increas- information gaps in urban areas. year. security. Puentes was a key source examined their assumptions and Massachusetts, and New Jersey. cisco, Mayor Gavin Newsom cities.The LSE most recently vis- ing the degree to which residents The group funded a series of Metro also was at the forefront for media trying to understand plans in the wake of the report. In “The Price Is Wrong: announced a new zoning ordi- ited Shanghai in July. visit primary-care providers rather pilot projects across the country to of sorting out the issues that deter- implications of the London subway Another Metro report had Getting the Market Right for nance to ban new fringe lenders than emergency rooms or going develop new tools to find and use mine the growth and health of bombings last summer. examined another popular silver Working Families in Philadelphia,” from locating in the city, and cited Brookings Greater Washington without. information, including an effort to communities and regions: trans- Metro developed analysis and bullet—biotech—and found that it Matthew Fellowes, a senior Brookings data to make his case. The Brookings Greater Washington incorporate new sources of data portation, land use and planning, recommendations that guide eco- is not a good option for most research associate, and Katz Another Metro report showed Research Program (BGW) Urban Markets Initiative into credit scores to demonstrate economic development, and more. nomic development strategies— localities. showed that lower-income families that the low-income housing tax remained active on issues important The Urban Markets Initiative the creditworthiness of low- Federal transportation policy is with both broadly applicable There are better answers, and pay more than others for essentials credit may be artificially exacerbat- to the Institution’s hometown. (UMI) continued to define the income consumers.The new tools both costly and behind the times.A advice and region-specific assis- Metro identified some of them. such as mortgages, insurance, food, ing the concentrations of poverty Senior fellow Alice Rivlin, in her field of urban information by dis- were designed to be replicated or year-long series of studies on what tance. In the report “Space Avail- Visiting fellow Chris Leinberger transportation, and financial serv- in the United States. role as director of BGW,co-chaired covering new sources of data and scaled to a community’s size so it will take to meet the modern- able:The Realities of Convention outlined how integrated downtown ices—a burden that presents a Metro also worked selectively the District’s Comprehensive developing the tools to share and that they can become part of the day needs of metro areas was con- Centers as Economic Development revitalization has more market suc- major obstacle to their movement outside the United States—both to Housing Strategy Task Force.The analyze it.Thanks to funding from nation’s information arsenal. ■ 26 27 Support for Brookings

ast year was a banner year for Brookings, with a number of high-impact activities leading the Institution’s research agenda for 2005. Our scholars work on topics with both relevance and immediacy— current issues as well as forward-looking concerns. For this reason, Brookings experienced a record level of interest and financial support. Some of the highest-impact projects undertaken in the past year would not have been possible without investments from individuals, corpora- tions, and foundations with a shared commitment to the research agen- das of Brookings scholars. With early support from trustees Frank Pearl and William A. Hasel- tine, as well as Brookings Council member Herb Kaplan through the Warren Alpert Foundation, Brookings convened several “brainstorming sessions” to lay the groundwork for establishing a health policy initiative. LParticipants included nationally recognized leaders in health policy, including government officials, physicians, health policy analysts, business executives, and foundation officers, who together explored how Brook- ings could best contribute to the health policy debate. The health policy initiative’s research agenda will focus on an evalua- tion of policy measures designed to reduce the rapid growth in health care costs while encouraging the continued development of life-saving technologies and the appropriate use of prevention and behavioral change as a way to maintain a healthy population. Building on the ear- lier brainstorming sessions, the Economic Studies program initiated a series of Health Policy Forums with distinguished scholars and industry experts to begin exploring these issues in greater depth. In September 2005, Brookings launched its new Center on Chil- dren and Families to conduct research and outreach that will improve understanding of the reasons for poverty, especially among working families, as well as the potential of various policies to improve the life chances of poor children. Directed by Isabel V.Sawhill, Brookings vice president and director of the Economic Studies program, and senior fellow Ron Haskins, the Center includes a partnership with Princeton University and joint publication of the journal The Future of Children.

The Center’s ambitious research agenda would not be possible without Linda Steckley, vice president for generous private support, and funding has already been received from Development (center) greets Board the Annie E. Casey Foundation, the Doris Duke Charitable Founda- of Trustees member Bea Welters and Tony Welters at a dinner held tion, the Ford Foundation, Foundation for Child Development, and in the Reagan Building and

the Joyce Foundation, among others. MARSHALL COHEN International Trade Center. 28 SUPPORT FOR BROOKINGS SUPPORT FOR BROOKINGS

port increased 25 percent, from $28 million to $35 million, between 2004 and 2005. Existing programs at Brook- ings—such as the Saban Center for Middle East Policy, led by Martin Indyk—have already demonstrated the value of involv- ing trustees as well as scholars and friends from outside the Institu- tion in advancing our scholars’ work. Our Center on the United States and Europe, under the leadership of senior fellow Phil Gordon, also benefits from an advisory group and from private support.The Center on the United States and Europe launched the Sakip Sabanci Inter- national Research Award in part- nership with Istanbul’s Sabanci Attending a board dinner at the University, one of Turkey’s Smithsonian Museum of American History are trustees Bart Friedman strongest academic institutions. (left) and Brian Greenspun, with Named in honor of the late Sakip Myra Greenspun. (Marshall Cohen).

Sabanci, a prominent Turkish MARSHALL COHEN Brookings Council

ctive participa- Brookings President Strobe critical mission. Member- Individuals and corpora- Council members, which tion in the Brook- Talbott. “The intellectual ship in the Brookings Coun- tions who contribute included invitations to a full ings Council leads and financial contributions cil presents excellent amounts ranging from calendar of Brookings Coun- to insight, inspira- and the interactive partici- opportunities for frank dis- cil events throughout the Ation, and intellectual stimu- pation of Council members cussions with some of the year at our Washington Brookings Board Chairman John L. “You are Thornton and board member Daniel lation. The Council brings with Brookings scholars are best public policy minds in headquarters and in other Yergin chat at board function. together a select group of vital to the formulation and the world today. making a cities. Members of the Coun-

MARSHALL COHEN thoughtful business and dissemination of Brook- In 2005, 91 new individu- difference cil attended events in key community leaders who are ings’s ideas and publica- als joined the Council—a 100 every day on cities from coast to coast, Budgeting for National Prior- ing a 10-member committee of bers of the advisory committees the key to success is providing actively engaged in the life tions. It is indeed a two-way percent increase in the including New York, Boston, ities is another project with sig- corporate advisors that will speak at Brookings contribute to their opportunities for donors to be of the Brookings Institution, relationship.” number of Council mem- many of the Chicago, San Francisco, Los nificant impact, as Brookings out on these critical fiscal issues selected program both intellectu- engaged in a meaningful way with and who get a first look at Council members are bers. Nearly a third made important Angeles, Cleveland and scholars continued to define the to mobilize support in the private ally and financially, and their sup- the work of the Institution.Advi- Brookings research on a more than just donors; contributions exceeding Rochester. national debate on federal fiscal sector for a more fiscally respon- port plays an important role in sory committees have been a wide range of contemporary they are investors with a $50,000. issues of our Council members also policy.With the publication of sible budget policy. advancing our scholars’ research major source of new commitments issues. shared interest in and com- “As more and more indi- times.” received copies of Brook- Restoring Fiscal Sanity 2005: Meet- The committee established to agendas.Advisory committee and can be credited with many of “Brookings Council mitment to the advance- viduals and corporate repre- ings publications, including ing the Long-Run Challenge, support the Budgeting for members also enjoy the privileges our donor increases in fiscal year members play a crucial role ment of independent public sentatives experience the —John Humphrey, a policy briefs and ground- Sawhill and senior fellow Alice National Priorities project is but offered to the Brookings Council, 2005.”Another key reason for this in upholding the Institu- policy research. As Brook- richness of Council member- Brookings Council breaking new books, editori- Rivlin, along with several col- one of several advisory groups providing them a broader view of sharp increase in restricted giving tion’s ability to conduct ings’s leading benefactors, ship, we expect continued member since 1991. als and other publications leagues, have framed the discus- created to serve other program the Institution. has been an increase in the num- independent, nonpartisan Council members played growth in the years ahead,” by Brookings scholars, such sion in nonpartisan terms.To but- areas and create stimulating new According to Cyrus Freidheim, ber of personal meetings with staff research concerning a key role last year in said Linda G. Steckley, $10,000 to $100,000 or as Talbott’s periodic Presi- tress this effort, new Brookings pathways for leadership involve- chair of the Trustee Development and scholars for projects and pro- today’s most challenging strengthening the Institu- Brookings vice president for more enjoyed a range of dent’s Letters on topics of trustee Geoffrey T. Boisi is chair- ment with the Institution. Mem- Committee,“We have learned that grams. In fact, programmatic sup- public policy issues,” said tion’s ability to fulfill its development. privileges available only to current interest. ■ 30 31 SUPPORT FOR BROOKINGS Investing in Research commitment to Brookings enables senior fellow Thomas CORPORATE GIVING broad spectrum of domestic and Brookings’s experts on interna- Corporate donors also participated Mann to collaborate with Norman rookings is grateful for the foreign policy challenges facing the tional trade gave our corporate in a series of dialogues about the Ornstein at the American Enter- financial and intellectual administration. donors valuable insights into global most important health-care issues prise Institute to interject the support that our corporate With China’s rise broadly affect- developments in 2005. Lael facing policymakers and business best scholarly research in the pol- philanthropist, the award and ident and chief investment officer donors provide, and for ing the global economy, the Brook- Brainard, the New Century Chair in leaders grappling with skyrocketing icy debate in Washington. accompanying lecture are of Emerging Markets Manage- Welcoming Btheir invaluable real-world perspec- ings China Initiative is helping busi- International Trade and Economics, costs and increasing demand. At a time when political polar- designed to promote new ideas ment, LLC, the IAC consists of a tives on a wide range of important ness leaders understand its led a robust discussion of trade In all of these areas, Brookings ization dominates the nation’s and original research relevant to select group of distinguished inter- New Leaders issues. implications. In July, Brookings issues with Corporate Council mem- scholars are conducting rigorous capital, Brookings and AEI are Turkish studies. According to national figures, primarily from Several companies made espe- introduced the initiative’s new bers in April. Brainard was recently analysis and developing practical pol- partnering to ground the debate Gordon,“This research prize will the private sector. Members will cially generous gifts of more than director, former ambassador Jeffrey appointed vice president and direc- icy solutions. The meetings, roundta- over election reform in rigorous, encourage more serious thinking help develop Brookings’s interna- he Brookings Board of $100,000 in 2005, and we would like Bader, at an informal roundtable tor of the new Global Economy and bles, briefings, and panels that they analytical scholarship and about Turkey, which is hugely tional activities and foreign part- Trustees is composed of to recognize their extraordinary discussion of trade, security, and Development Center at Brookings. held in 2005 brought these recom- broadly based consultation and important not only for Turkey nerships by providing financial Tdistinguished business commitment to the Brookings mis- the trilateral relationship among At the annual Brookings Trade mendations to a corporate audience deliberation. The critical support but for Europe, the United States, support, advice, and networking executives, academics, former sion. Benefactors included The Fan- China, Japan, and the United Forum last year, Brainard and senior in settings that encouraged frank of foundations such as Knight and the rest of the world.” contacts. Members will also help government officials, and commu- nie Mae Foundation, DaimlerChrysler, States. In September 2005, the ini- fellow Susan Collins focused on discussion of the issues. makes this kind of nonpartisan In recognition of Brookings’s establish constituencies for Brook- nity leaders. Trustees provide Exsa, ExxonMobil, Pfizer, Reliance tiative was formally launched with a issues arising from the offshoring effort possible. increasing global reach and ings work in their home countries governance of the Institution, Industries, State Farm, and the U.S. full day of panel discussions with of white-collar jobs to developing FOUNDATION GIVING The William and Flora Hewlett impact, we have established an and regions. In the IAC’s forma- approve the fields of scholarly Chamber of Commerce. The business leaders and experts on countries, including a special ses- Private foundations made major Foundation gave Brookings the International Advisory Council tive period, a number of Brook- investigation, and safeguard the resources they provided helped our trade and international relations. sion on India that was of particular investments in Brookings in 2005, largest single foundation award (IAC).The IAC provides guidance ings scholars, friends, and trustees independence of the Institution’s scholars conduct analysis of pressing The initiative’s founder, Brook- interest to corporate leaders. providing crucial support for research we received last year. This two- as Brookings works to strengthen have been instrumental in opening work. We are pleased to welcome policy issues that resulted in timely ings Board Chairman John L. Barry Bosworth, another senior projects across all of our programs. year grant is supporting major our international programs and doors for Brookings around the seven new trustees to the leader- recommendations for policymakers. Thornton, hosted a lunch for leading fellow, led a partnership with an We are grateful to each of our foun- multidisciplinary projects in the increase our ability to inform the world.The IAC will convene in ship of the Institution. Throughout 2005, corporate corporate donors in March. Thorn- Indian economic research organiza- dation donors for the resources they Foreign Policy Studies program American public and Washington May 2006 for an inaugural two- donors enjoyed frequent opportuni- ton shared his experiences dealing tion to produce the India Policy provided to the Institution. Four foun- and the Global Economy and policymakers about developments day meeting in Washington. ties to interact with Brookings with Chinese leaders and discussed Forum, a conference in New Delhi dations that committed major fund- Development Center. and perceptions in key parts of the Also on the international front, GEOFFREY T. BOISI scholars and leading policymakers some of the key questions arising examining India’s economic and ing for Brookings research in 2005 With Hewlett’s support, our world. Led by new Brookings the China Initiative was estab- Chairman and Senior Partner on the major issues facing corpo- from China’s emergence. political reforms. In February, are highlighted here. scholars are assessing the effec- trustee Antoine van Agtmael, pres- lished in 2004-05 thanks to a Roundtable Investment rate leaders. Just after President Throughout the year, Corporate Bosworth held a briefing for Brook- The Charles Stewart Mott tiveness of current systems and Partners LLC Bush’s inaugural, members of the Council members took advantage of ings Council members and the Foundation made important contri- structures that affect global wel- Brookings Council attended a forum a rich calendar of other events fea- media to launch the publication of butions to the Economic Studies fare—particularly those that VISHAKHA N. DESAI, PH.D. in New York to exchange ideas with turing Brookings’s leading experts the papers and share some conclu- program. The Mott Foundation shape international aid, econom- President and CEO leading Brookings scholars on the on economics and foreign policy. sions from the conference. renewed its support for the Center ics, and security programs and The Asia Society Competition for energy on Children and Families, which cooperation—and recommending resources is one key issue arising grew out of the Brookings Welfare improvements for the future. The GLENN HUTCHINS from explosive growth in China and Reform and Beyond Initiative. Institution is grateful for this Founder and Managing Partner India, and our corporate donors Grants to the Center enabled Brook- important, forward-looking Silver Lake Partners had opportunities to talk with ings to expand its efforts to investi- investment in our work. Brookings scholars about their gate and analyze new policy options The Brookings Metropolitan KENNETH JACOBS research in progress. Senior fellow to improve the lives of low-income Policy program received signifi- Deputy Chairman Fiona Hill spoke in December on families and their children. cant support from the George Lazard LLC oil, China, and Russia’s revival— The foundation was also a major Gund Foundation in 2005, which which she also covered in pub- supporter of the Budgeting for provided multiyear funding. The SUZANNE NORA JOHNSON lished works during the year, build- National Priorities project, which is Gund Foundation has been a true Vice Chairman ing on her path-breaking book, devising a range of policy alterna- partner for the Metro program The Goldman Sachs Group, Inc. The Siberian Curse. tives to tackle the federal budget over many years, helping Pro- Brookings’s corporate donors deficit. Mott has also made substan- gram Director Bruce Katz shape LARRY D. THOMPSON had access to our scholars’ work on tial contributions to advance Brook- a metropolitan research and pol- Senior Vice President of domestic issues as well. Economists ings’s work on metropolitan growth icy agenda that integrates every- Governmental Affairs and Alice Rivlin, senior fellow, and Isabel trends. thing from smart growth, the General Counsel V. Sawhill, vice president and direc- The John S. and James L. Knight environment, and working fami- PepsiCo, Inc. tor of the Economic Studies pro- Foundation has generously funded a lies to regional economic devel- gram, led a panel discussion in April project that will examine and moni- opment and the challenges fac- ANTOINE W. VAN AGTMAEL Trustees Larry Thompson and about alternatives for balancing the tor the implementation of the Help ing older suburbs. Brookings President and CIO Cyrus Freidheim attend dinner at the Reagan Building and federal budget, and scholar Robert America Vote Act (HAVA) and sug- looks forward to continued col- U.S. Sen. Chuck Hagel of Nebraska Emerging Markets Management, International Trade Center. Litan led a conversation on the gest proposals for improving the laboration with the Gund Founda- addresses the Board of Trustees. LLC ■ STEPHEN BOITANO STEPHEN MARSHALL COHEN challenges facing the U.S. economy. administration of elections. Knight’s tion in years to come. 32 33 Investing in the Future Investment in Ideas SCHWARTZ CHAIR ested in results, chose to PLANNED GIVING 40 years, as trustee generations. By making tage point for recogniz- ernard L. invest in Brookings he Brookings from 1962 to 1993— his own long-term chari- ing the importance of Schwartz, chair- because of the Institution’s Institution including six years as table plans for Brookings the Institution’s long- man of the convening power and its traces its chairman, from 1986 to with a generous bequest range fiscal stability. major gift from Brookings Board ing on the opportunities pre- board and chief consistent track record as roots to 1916, 1992—and as an hon- intention, Cabot is also Brookings recognizes Chairman John L.Thornton.The sented by globalization in the Bexecutive officer of Loral the most widely cited Twhen a group of business orary trustee since 1993. following his family tradi- those forward-thinking initiative welcomed its first direc- areas of international trade and Space & Communications, Washington think tank. leaders and academics “I’ve put a tremen- tion of generosity. individuals who take the tor, Jeffrey Bader, a former ambas- finance, economic development, is an optimist. Although Brookings’s independent launched the Institute for dous amount of time His parents, Thomas long view that Brook- sador and senior official at the key emerging markets, and com- Schwartz is concerned and nonpartisan research Government Research as and energy into its wel- D. and Virginia W. Cabot, ings’s excellence must be State Department, National Secu- parative economics. that even policymakers also appealed to Schwartz. the first private organiza- fare, and I’m proud of established the Cabot guaranteed well into the rity Council, and the Office of The Global Economy and have fallen prey to the “I used to invest in tion devoted to analyzing the result,” Cabot said. Family Chair at Brook- future. Brookings contin- the U.S.Trade Representative, in Development Center will also notion that the United political parties,” Schwartz public policy issues at the “Brookings is now able ings in 1991, during their ues to rely on the gen- April 2005.To publicly mark its provide an institutional home States is better off said. “Now, I’m investing in national level. Forty-two to go down through the son’s tenure as board erosity of friends such as establishment, the China Initiative for an initiative on global preparing to be overtaken ideas.” Brookings is well- donors joined founder ages, like a great univer- chairman. The Cabot Louis Cabot and others hosted a conference on China’s or surpassed by China positioned to advance Robert S. Brookings to sity, as the legacy cre- Family Chair is held by a who are dedicated to the emergence and its impact on both and other emerging those ideas and quickly pledge their financial ated by the Brookings senior fellow in a core long-term health of inde- the United States and the Asia- economies, he has also make a positive contribu- assistance, establishing family for all mankind. I research area at the dis- pendent, nonpartisan Pacific Region on September 20. sought opportunities to tion to policy discussions from the outset a tradi- am not exaggerating. cretion of the Institu- public policy research. Brookings also announced the demystify the issues— about U.S. competitiveness tion of individual philan- That’s what Brookings tion’s president. The As we approach the creation of a new Global Econ- and define America’s in the global marketplace. thropic support for inde- now is, and the name chair is currently held by Institution’s 90th anniver- omy and Development Center. strengths instead of its “I’m very pleased to pendent, nonpartisan ‘Brookings’ will always Isabel V. Sawhill, Brook- sary in 2006, we look for- This new center is led by Vice weaknesses. support the Brookings research. convey that meaning, all ings vice president and ward to celebrating Robert President and Director Lael Schwartz’s belief in Institution as it broadens A key volunteer over the world.” director of the Economic Brookings’s legacy of sup- Brainard, who holds the New U.S. competitiveness and its focus on the global leader for nearly half of Louis Cabot has Studies program. port, and thought-provok- Century Chair in International his commitment to pro- economy,” said Schwartz, the Institution’s 90-year extended the Brookings Louis Cabot’s four ing and informative public Trade and Economics, which was moting effective channels adding that globalization life span has been Louis leadership tradition of decades of involvement policy research on emerg- endowed by Toyota in 1996.The for guiding globalization has raised new issues for W. Cabot. He served service and philanthropy with Brookings have ing challenges leading to center will serve as an incubator policy led him to establish the United States, organi-

Brookings for more than as a role model for future given him a unique van- constructive solutions. ■ for ideas that matter, focusing on MARSHALL COHEN the Bernard L. Schwartz zations such as the Inter- both the opportunities and the Board of Trustees member Kenneth Chair in International national Monetary Fund Jacobs attends a board dinner held at risks associated with the global the State Department. Economics at the Brook- and World Bank, corpora- economy. ings Institution in 2005. tions, non-governmental Bernard Schwartz The Global Economy and poverty sponsored by former This gift allowed organizations, as well as & COMMUNICATIONS SPACE OF LORAL COURTESY PHOTO Development Center integrates a World Bank President James D. Brookings to begin recruit- every citizen of the planet. variety of existing and new Wolfensohn, a Brookings trustee, ing a senior scholar who “The time is now to for our continued growth Over the years, research projects under its who will be basing his develop- will conduct policy reach a deeper level of in this discipline,” she said. Schwartz has been rec- umbrella, and is an excellent ment-related philanthropic work research on globalization understanding about the Brookings President ognized for his views example of how private contribu- at the Institution.The Wolfen- and international eco- changing nature of the Strobe Talbott said the and counsel on matters tions can facilitate Brookings’s sohn Initiative, created with an nomic issues and provide challenges we face,” he support from Schwartz ranging from economic research agenda. Our work on the initial contribution in 2005, is in guidance to policymakers said. will allow Brookings to be growth and industrial global economy and development the first phase of development on these issues. Brookings Vice Presi- in the forefront of efforts policy to technology and has already received generous sup- and will support effective solu- The Schwartz Chair dent Lael Brainard—who to study and improve national security, which port from Richard C. Blum, tions to the challenges of global will tackle some of the leads work in this area as standards of living, com- he has provided through chairman of Blum Capital Part- development. hardest questions in the director of the Global petitiveness, and global speeches, white papers, ners, LP; Bernard Schwartz, chair- With so many Council mem- international economics, Economy and Develop- governance, in a cross- and testimony to private man of the board and CEO of bers and trustees engaged with including how to address ment Center—said the disciplinary approach to research institutions, Loral Space & Communications, Brookings via advisory commit- trade, technology, intel- new chair will help research and policy educational groups, and Ltd.; the William and Flora tees and substantive programmatic lectual property rights, broaden our ongoing development. congressional commit- Hewlett Foundation; the Alfred P. involvement, 2006 promises to be and a changing relation- work in this arena and “Bernard Schwartz has tees. The Bernard L. Sloan Foundation; the Ewing another important year for the ship between developed further address the policy devoted his life to invest- Schwartz Chair in Inter- Marion Kauffman Foundation; Institution.As we combine and developing coun- dilemmas of an increas- ing in ideas that matter,” national Economics at and the GE Foundation.These Brookings’s intellectual resources tries. The scholar ingly integrated and polit- Talbott said. “We’re Brookings is an exten- contributions provided the with the sophisticated thinking appointed to this presti- ically complicated global delighted to have his trust sion of Schwartz’s role Trustee Louis W. Cabot and U.S. Sen. Bill Frist of Tennessee listen resources the Center needs to and investment capacity of our gious chair will address economy. and counsel as we unravel as a leader in driving to board presentation. develop practical ideas for under- generous benefactors, Brookings the multifaceted dimen- “Mr. Schwartz’s gen- the consequences of glob- public discourse on criti- standing U.S. competitiveness in will continue to thrive as Amer- sions of globalization. erosity provides the means alization for our nation cal issues facing U.S. ■ ■ STEPHEN BOITANO STEPHEN the global economy and capitaliz- ica’s premier think tank. Schwartz, most inter- and perfect complement and the world.” policymakers. 34 35 HONOR ROLL OF CONTRIBUTORS HONOR ROLL OF CONTRIBUTORS

CASH GIFTS RECEIVED Coalition for Litigation Justice The Centre for International Rex J. Bates Wendy and Barry Meyer Canadian International Development Michael H. Jordan Leonard D. Schaeffer July 1, 2004–June 30, 2005 The Council for the United States Governance Alan R. and Jane Batkin Microsoft Corporation Agency The Kansai Electric Power Michael P.Schulhof and Italy Raymond Chambers The Boeing Company The Leo Model Foundation, Inc. Cargill, Incorporated Company, Inc. The Paul C. Schurgot Foundation, DaimlerChrysler Corporation Colgate University John E. Carbaugh, Esq. The Ambrose Monell Foundation Center for Global Development James C. Kautz Inc. $500,000 and Above District of Columbia Primary Care Timothy C. Collins Caterpillar Foundation Mario M. Morino Center for Marketing Effectiveness, David Woods Kemper Memorial Stanley S. Shuman Dawn and Roland Arnall Association The Community Foundation for the Center for the New Economy Nuclear Threat Initiative Inc. Foundation Robert and Emily Smith Richard C. Blum and Senator Dianne Doris Duke Charitable Foundation National Capital Region Center for Strategic & International Stephen G. Pagliuca CIGNA Foundation Ron Kenan Sonoran Institute Feinstein Blair W.Effron Alan M. Dachs Studies Charles Perez Civil Justice Reform Group Brenda R. Kiessling Andrew P.and Patricia Steffan Carnegie Corporation of New York Exsa Americas Inc. Government of Denmark Chevron Corporation Prince Charitable Trusts A.W.Clausen The John S. & James L. Knight David S. Steiner and Sylvia Steiner Annie E. Casey Foundation ExxonMobil Corporation Government of the District of Citizens Bank Foundation Quadrangle Group LLC James K. Clifton Foundation Donor-Advised Fund Charitable Trust Department for International The Freeman Foundation Columbia Barbara Davis Qualcomm Incorporated Roberta Cohen at Dade Community Foundation Sumitomo Corporation of America Development, United Kingdom The German Marshall Fund of the Fremont Investors, Inc. Robert A. Day Raytheon Geoffrey J. Colvin Marie L. Knowles David F.Swensen Fannie Mae Foundation United States Bart Friedman William A. Dunn Joseph L. Rice, III Gordon and Dona Crawford Peter B. Kovler Nelson Talbott The William and Flora Hewlett William A. Haseltine, Ph.D. GE Foundation Dunn’s Foundation for the Charles W.Robinson Cummins, Inc. Henry R. Kravis Linda Thompson and David Foster Foundation The Heinz Endowments Fred Gluck Advancement of Right Thinking Charles Ryan Alan Curtis Lauer Philanthropic Foundation Toshiba America, Inc. John S. and James L. Knight Glenn H. Hutchins Goldman, Sachs & Co. EADS North America Roger W.and Victoria P.Sant D. Ronald Daniel and Lise C. Scott Liverpool John Moores University Toyota Foundation Johns Hopkins University Thomas J. Healey Alfred and Gail Engelberg Ralph S. Saul Daniels Fund Lockheed Martin Corporation Ellie Trowbridge Living Cities, Inc. Ewing Marion Kauffman Foundation Kenneth Jacobs Lawrence K. Fish Alan D. Schwartz Timothy D. Dattels Marathon Oil Company Tudor Investment Corporation The John D. and Catherine T. Estate of Henrietta Lockwood The Robert Wood Johnson David and Marianna Fisher Sheldon and Elinor A. Seevak The Dow Chemical Company Marubeni America Corporation United Nations Foundation MacArthur Foundation Frank P.Lowy Foundation The Lee and Juliet Folger Fund Strobe Talbott and Brooke Shearer Anthony Downs Matsushita Electric Industrial University of North Carolina at The Pew Charitable Trusts The Markle Foundation Herbert M. Kaplan Ford Motor Company Fund Garrett Thornburg, Jr. Mario Draghi McKinsey & Company, Inc. Chapel Hill Embassy of Qatar The McKnight Foundation Robert S. Kaplan Embassy of France Trellis Fund Richard J. Dumler Robert S. McNamara University of Pennsylvania Cheryl and Haim Saban Mindich Family Foundation The Korea Foundation Mitzi and Cyrus F.Freidheim, Jr. Vincent J. and Pat Trosino Eastman Kodak Company Philip Merrill University of Wisconsin-Madison John L.Thornton Charles Stewart Mott Foundation Ynon Kreiz General Dynamics U.S.Agency for International James Elrod Merrill Lynch & Co., Inc. The USAA Foundation,A Charitable U.S. Chamber of Commerce The Philip D. Murphy Edward M. Lamont General Motors Corporation Development Robert F.Erburu Arjay and Frances Miller Trust James D.Wolfensohn and Tammy S. Murphy Foundation Anne Lauvergeon Rollin M. Gerstacker Foundation U.S. Department of Transportation First Pacific Advisors, Inc. Mitsubishi International Corporation Vanderbilt University Government of Norway Robert E. Marks Gold Family Foundation U.S. Institute of Peace Alan Fleishmann and Dafna Tapiero Mitsui & Co. (U.S.A.), Inc. James M. and Mary Anne E.Walsh $250,000 to $499,999 Richard Perry David Matalon The Philip L. Graham Fund University of Southern California Fleischmann James Mossman The Washington Post Company Anonymous Pfizer Inc. The MCJ Foundation Estate of Andrew Heiskell The Urban Institute David Friend National Association of Software and Ann and Mel Woods Boston College Steven Rattner and Maureen White Observer Research Foundation Loren W.Hershey, Esq. Visa U.S.A. Inc. Frederick P.Furth Service Companies The Xerox Foundation Ford Foundation Reliance Industries Limited Maconda B. O’Connor, Ph.D. Honda North America, Inc. Enzo Viscusi Fredric and Anne Garonzik Foundation National Commission on Energy Daniel H.Yergin and Angela Stent Brian L. and Myra S. Greenspun and Nathaniel Rothschild Open Society Institute Joel Z. Hyatt Wal-Mart Stores, Inc. GlaxoSmithKline Policy the Greenspun Family Foundation Alfred P.Sloan Foundation Frank H. Pearl The IAC Foundation, Inc. The Wasserman Foundation Pierre F.and Enid Goodrich National Council of Applied $5,000 to $9,999 The George Gund Foundation Eric Smidt Phoenix Satellite Television Holdings Impaq International, LLC John C.Whitehead Foundation Economic Research 3M The Joyce Foundation State Farm Mutual Automobile Limited Investment Company Institute Wyeth Lincoln Gordon NEC Corporation Leonard Abramson Claude R. Lambe Foundation Insurance Company Samuel Pisar, Ph.D. The Itasca Project at the St. Paul Ezra K. Zilkha George D. Gould Donald E. and Susan Newhouse American Petroleum Institute National Association of Home Surdna Foundation, Inc. Ripplewood Foundation, Inc. Foundation Jeffrey W.Greenberg New School University American Society of the French Builders Government of Sweden Rutgers,The State University ITOCHU International Inc. $10,000 to $24,999 Jerome H. Grossman, M.D. Nissho Iwai Foundation Legion of Honor The David and Lucile Packard World Economic Forum of New Jersey The Japan Foundation Center for Oded Aboodi Marion Guggenheim NTT USA, Inc. Automatic Data Processing, Inc. Foundation The Jane and Terry Semel Charitable Global Partnership Abt Associates Agnes Gund NYK Line (North America) Inc. The Bank of Tokyo-Mitsubishi, Ltd. The Rockefeller Foundation $50,000 to $99,999 Foundation Johnson & Johnson Family of Meena and Liaquat Ahamed The Marc Haas Foundation O’Melveny & Myers LLP Ernest A. Bates, M.D. Taipei Economic and Cultural Anonymous (2) Shell Oil Company Companies The American Enterprise Institute Robert H. Haines Eiji Ono Robert Berne Representative Office Alcoa Foundation Union of Chambers of Mel Karmazin Foundation, Inc. Joel and Nancy Andryc The Harris Family Foundation John E. Osborn Anders Brag Tokyo Club Foundation The Warren Alpert Foundation Commerce of Turkey W.K.Kellogg Foundation Aramco Services Company F.Warren Hellman PACCAR Foundation Rhoda W.Brownstein for Global Studies American Express Foundation University of California, Berkeley Peter and Elbrun Kimmelman The Armstrong Foundation Cynthia Helms PAETEC Communications, Inc. Conrad Cafritz United Nations AREVA Antoine W.van Agtmael Law & Economics Consulting Group, Liza Bailey Andy and Evelyn Heyward Norman Pattiz William M. Cameron AT&T Foundation Verizon Communications Inc. Baron & Budd, P.C. Roy M. Huffington Pepco Holdings, Inc. Ellen Chesler and Matthew J. Mallow $100,000 to $249,999 Geoffrey T. Boisi WellPoint, Inc. Daniel H. and Sunita Leeds Richard Bartlett John and Pamela Humphrey John G. Popp Corning Incorporated Foundation Anonymous (4) BP America Inc. Beatrice W.and Anthony Welters Richard Li BASF International Monetary Fund Stewart Resnick and the Resnick Jay and Patrisha Davis Coupe S. Daniel Abraham Andrea and Charles Bronfman Stephen M.Wolf George S. Loening BellSouth Corporation Irell and Manella LLP Family Foundation Arthur B. Culvahouse, Jr. Beny Alagem The Brown Foundation, Inc., of Roy Zuckerberg Government of Luxembourg John P.Birkelund Shirley Ann Jackson, Ph.D. Stanley and Louise Resor The Honorable Kenneth W.Dam Roger Altman Houston Paul and Maurice Marciano and the The Boston Consulting Group Japan Bank for International Marie Ridder Marcia W.Dam American Legacy Foundation Louis W.Cabot $25,000 to $49,999 Guess? Foundation Bristol-Myers Squibb Cooperation James D. Robinson III Judy T. Davis Ronald W.Burkle The Cabot Family Charitable Trust Anonymous MassMutual Financial Group Foundation, Inc. James A. Johnson Felix Rohatyn Bruce B. Dayton Canadian Department of Foreign The Morris and Gwendolyn Cafritz Robert John Abernethy Eugene and Agnes E. Meyer Christopher H. Browne The Suzanne Nora Johnson & B. Francis Saul, II Ze’ev Drori Affairs and International Trade Foundation Bank of America Foundation Foundation The Business Council David G. Johnson Foundation SBC Communications Inc. Kenneth M. and Jackie F.Duberstein 36 37 HONOR ROLL OF CONTRIBUTORS Brookings Institution Press Charles W.Duncan, Jr. Andrew H.Tisch Peter Flynn Henry Oechler, Jr. Kay Enokido and Thomas C. Crouse United Nations Development Clifford L. Freeman John F.Olson ne of the most authoritative.” Engaging India was books was recognized by a num- devoted to improving public policy Nancy M. Folger Programme Ezra Friedlander George Pagano important and named a 2005 Kiriyama Prize ber of prestigious awards: for America’s children. Ann M. Fudge Paul Verbinnen FutureWorks, LLC Paul L. Peck, Jr. successful titles Notable Book.The Kiriyama I Roberta Cohen and Francis The Press worked with the Jeffrey C. Gore E. Denis Walsh Toby Gati Steven I. Platt from the Brook- Prizes recognize outstanding Deng—authors of Masses in Brookings Metropolitan Policy Morton E. Goulder Hermine Warren John M. Gaylord Samuel Plimpton and Wendy Shattuck ings Institution books about the Pacific Rim and Flight and The Forsaken People— program to produce a number of Vartan Gregorian Robert M.Weekley Lynn Gerald, Jr. John Edward Porter Press during the South Asia that encourage mutual received the prestigious Grawe- important new books, several of Patrick W.and Sheila Proby Gross Eric Weinmann Gerson Lehrman Group William R. Price past year was Flynt Leverett’s understanding of the people and meyer Award for Ideas Improv- which are in the James A. Johnson John H. Gutfreund Malcolm H.Wiener John Glaess Peter B. Reddaway OInheriting Syria: Bashar’s Trial by nations of the vast and culturally ing World Order, for their Metro Series. For example, Metro- Miriam and Peter Haas Fund Don M.Wilson, III Barbara Pugliese Gorman Edward Reibman Fire. Leverett’s analysis of Syria diverse region. development of guidelines on a politan Policy scholars Bruce Katz Edmund A. and Barbara Hajim World Health Organization Bruce Greenwald Judith Rodin, Ph.D. under the leadership of Bashar al- Led by Vice President and protection and aid system for and Rob Puentes edited Taking the Henry and Nancy Hamlin Annie M. Gutierrez James J. Rowe Assad (who succeeded his father, Director Robert Faherty, the internally displaced people. High Road:A Metropolitan Agenda Up to $4,999 June R. Hechinger Robert D. Haas Maureen Durkin Roy the long-time ruler, Hafiz al- Brookings Institution Press pub- I Economic Studies scholars Jack for Transportation Reform, examining Samuel Hellman, M.D. John Adams Lee H. Hamilton Blair Ruble Assad), and of Syria’s complex lishes about fifty new books a Triplett and Barry Bosworth the most pressing transportation Robert A. Helman Agir Limited HarperCollins Publishers Paul L. Rudman relationship with the United year, covering a wide range of won the Harry Freeman Award challenges facing American cities, Harold Hestnes A.J. Dwoskin and Associates, Inc. Harvard University Warren B. Rudman States, was widely issues.Their audience for their book Pro- suburbs, and metro- Roy M. Huffington Scott Anders Robert M. Heller John Ruffin, Jr. lauded.The Washington includes policymakers, ductivity in the U.S. politan areas. On the Francis O. Hunnewell Margaret Anderson Nancy M. Hewett, Ph.D. RW Ventures, LLC Post Book World called journalists and analysts, Services Sector. The same topic, the Press Institute of Peace and Conflict Studies Robert E.Asher Ross Hicks Sandia National Laboratories Martin Jacobson Austin Community Foundation The Hillman Company Henry B. Schacht the book “essential for scholars and their stu- Freeman Award published Still Stuck in John R. Jakobson Axel Springer Frank Hoch Barry Schneider understanding a com- dents, and a well- honors exceptional Traffic by senior fellow Janet M. Johnson Elizabeth E. Bailey E. Michael Hoff Francis H. Schott plicated country and informed general contributions to Anthony Downs, a The Fletcher Jones Foundation Zoë Baird Marshall M. and Doris B. Holleb Stephen A. Schwarzman the politics of the readership. knowledge of the timely follow-up to Thomas L. Kempner Harley D. Balzer Holtzbrinck Publishers, LLC Brent Scowcroft entire Middle East.” The Brookings U.S. service his landmark 1992 The F.M.Kirby Foundation, Inc. Michele D. Bertrand David P.Hunt Thomas Sherak Leverett was inter- Institution Press pub- economy. book Stuck in Traffic: Robert P.Kogod John Bessey Hyundai Motor Company Jonathan E. Silbert viewed about the lished a number of vol- I Barry Rabe’s State- Coping with Peak-Hour Harold H. Koh John W.Booth The JBG Companies Tennant M.Smallwood book on media outlets umes by outside house and Greenhouse: Congestion. Marc E. Leland Cabell and Shirley Brand Clayton Johnson Sojourners as diverse as National Public experts. One of the most popular The Emerging Politics of American Policymakers and scholars Toby Devan Lewis The Brodsky Family Foundation Ann and Vernon E. Jordan, Jr. Myron Sponder Radio and “The Daily Show with was Democracy at Risk: How Political Climate Change Policy was investigating America’s expanding James T. Lynn Edward Browning Bertha D. Josephson Linda G. Steckley and Peter Weitzel Jon Stewart.” Now a senior fellow Choices Undermine Citizen Participa- awarded the Lynton Keith Cald- nonprofit sector have found the Bruce K. and Virginia N. MacLaury Bert A. Bunyan Norman Joslin Joshua L. Steiner in the Saban Center for Middle tion, and What We Can Do About It. well Prize as the best book on Brookings Institution Press to be Michael Maharam Forrest W.Burt Kaiser Permanente Dennis M. Sweeney East Policy, Leverett was senior Princeton University’s Steven environmental politics and pol- an essential resource. One reason is Stephen Maharam Richard C. Bush Joan Kato Lydia Calvert Taylor director for the Middle East Initia- Macedo led a roster of political sci- icy published over a three-year the work of Paul Light, a nonresi- Edward J. and Dale Mathias Daniel J. Callahan, III Douglas Kiessling Lynn O’Malley Taylor tive at the National Security entists enlisted by the American span. dent senior fellow in Governance Herbert P.McLaughlin Elizabeth Canter J. Ernest Kinard, Jr. Thomas Tuggle Council, so he has an insider’s Political Science Association to I Michael Barzelay and Colin Studies. Light has produced much Augustus K. Oliver Cartagena, Inc. Lawrence R. Kirkwood Laura D’Andrea Tyson understanding of the topic. investigate the state of civic engage- Campbell won the Louis of the recent landmark research on Owens-Illinois, Inc. William B. Chandler William P.Levens Brian R.Van Camp More than 5,000 copies of ment in America and to offer rec- Brownlow Book Award, the top nonprofits, most recently with Sus- The Ralph M. Parsons Foundation William Christopherson Lockhern Associates, Inc. Ted E.Wedemeyer, Jr. Inheriting Syria were sold, a large ommendations for improving it. literary prize in public adminis- taining Nonprofit Performance:The Alan and Susan Patricof John D. Conley Ed Lombard Frank Weil number for a volume from an aca- Macedo’s co-authors included: tration, from the National Acad- Case for Capacity Building and the William F.Pounds Council on Foreign Relations Frank E. Loy Harry Weintrob demic press. It is an outstanding Harvard’s Robert Putnam, who emy of Public Administration Evidence to Support It. Principal Financial Group Foundation, Richard A. Dailey James Murray Lynn Eugene White example of Brookings books— helped pave the way for such for their Brookings book Prepar- The Press plays a key role in Inc. Alexandra DiPentima Macy’s East, Inc. Frank V.Williams authoritative, ahead of the curve, analysis with his book Bowling ing for the Future: Strategic Plan- achieving the Brookings Institu- Procter and Gamble Company The Doctors Company Thomas Matey James Wolf J.Woodward Redmond Daniel F.Donahue William P.McCooe Mendelle Woodley critically acclaimed, and accessible Alone; former American Political ning in the U.S.Air Force. tion’s goal of producing and dis- I Toni Rembe Thomas E. Donilon Donald F.McHenry James T.Worthen beyond the Beltway. Science Association President Choice magazine named Agenda seminating important research and Rockefeller Brothers Fund David R. Donnersberger James F.McHugh YMCA of Metropolitan Washington Another such book was Engag- Margaret Levi; longtime Brookings for the Nation an Outstanding analysis that meets exacting stan- William D. Rollnick Draper and Kramer Foundation Thomas L. McNaugher ing India by Brookings President author Jeffrey Berry, who wrote A Academic Title. dards of review, informs public Rebecca Rothstein Walter Y.Elisha Mary Patterson McPherson Strobe Talbott, in which the for- Voice for Nonprofits; and William The Brookings Institution Press debate, and encourages innovative Frederic A. and Susan Rubinstein Crockett Farnell Manuel Menendez mer Deputy Secretary of State Galston, a new Brookings senior also continues to publish several thinking about public policy. Stanley M. Rumbough, Jr. Federal Home Loan Bank of William J. Menfredi recounts his personal role in pre- fellow in Governance Studies. scholarly journals.A recent addition Even the most insightful and Alan B. Slifka Pittsburgh Carmen D. Minora venting a nuclear standoff between Democracy at Risk was intro- to the list is The Future of Children, original research will not make a Robert Solomon Donald M. Fendlason Douglas B. Morton India and Pakistan in 1998 from duced at the annual APSA conven- jointly produced by the Brookings mark if nobody knows about it. Helmut Sonnenfeldt Kenneth L. Fields John Nagy escalating into a war in South Asia. tion, selling in large numbers, and Center on Children and Families The Brookings Institution Press Joan E. Spero Thomas G. Fisher Leslie Nichols Richard Haass, President of the attracting nearly 300 attendees to a and Princeton University’s ensures that in-depth, reliable, and Fred Stavis Steven M. Fleece Robert C. Nurick Council on Foreign Relations, panel discussion of the volume. Woodrow Wilson School of Public nonpartisan research reaches the Larry D.Thompson Joseph Flynn Philip A. Odeen called the book “candid, fair, and The high quality of Brookings Affairs.The biannual publication is people who need it. I 38 39 Blogging at Brookings his was not your MSM—would soon be made puter screens, five times But if anybody with So it went for nearly Center for Executive Education grandfather’s obsolete by the rise of the more than crowded into the access to the Internet is two hours—wild, whimsical, T Brookings forum. bloggers. Brookings auditorium. considered a journalist, not full of insights, fun, seri- Exploring the role of So, naturally, Brookings And one of the panelists requiring credentials or a ous, unstructured, interac- ith large-scale gain the competencies of execu- Human Services, and the Defense Former legis Fellow William “blogs” in the 2004 presi- decided to explore this phe- was a blogger nicknamed press pass, Ellen Ratner of tive, participatory…and retirements of tive leadership, public policy Leadership and Management Pro- Harris embodies the typical Legis dential election, the Brook- nomenon at a forum called “Wonkette,” who described the Talk Radio News Service not able to reach any real the oldest baby development and implementation, gram (DLAMP) of the Depart- experience, calling his fellowship ings Institution took a unique “The Impact of the New herself as “a proud parasite, wondered, “Who do you conclusions. In other boomers threat- and governmental operations. ment of Defense, as well as for in the office of Rep. David Price and timely approach to Media: A Live, Inter@ctive a media vampire.” allow access to the White words, the forum on blogs ening a signifi- The past year’s guest roster such organizations as the Ameri- “marvelously beneficial” as it gave addressing the fact that this Discussion and Webcast.” The forum was just min- House…to ask questions? was very much like blogs Wcant brain drain from the ranks of included Reps. Henry Waxman, can Council of Engineering him valuable insight into how election once and for all But the minute you walked utes old when an e-mail Where do you begin to draw themselves. senior private- and public-sector John Conyers, David Price, Ellen Companies, the Credit Union Congress works to bring back to made it obvious that blogs into the Falk auditorium arrived on moderator the line?” Perhaps the closest executives, the Brookings Center Tauscher, Jeff Flake, and Mark Executive Society, and State Farm his regular job with the Marine have become a major factor that morning in March, you Dionne’s laptop from a uni- Jack Shafer of the on- thing to a conclusive for Executive Education (BCEE) Souder, of the United States Insurance Company. Corps system command. in politics—and in virtually knew you were attending a versity student watching line publication Slate said appraisal of the blogosphere dedicated its resources to the criti- House of Representatives; Dr. BCEE’s Legis and Congres- Peter Schoettle, BCEE’s direc- every other area of our lives. forum like none other ever the webcast in Wales. the widespread blog phe- came from Sullivan. cal task of training the next gener- James Battey, chair of the National sional Fellows program is designed tor of policy programs, provides an Blogs—web-based logs, staged at Brookings. “Do you believe that the nomenon “allows hundreds “It’s an amazing educa- ation of leaders. Institutes of Health Stem Cell Task to provide executives with a first- extensive orientation program, for those of you accus- The moderator—newspa- Internet and new communi- and thousands of people to tional tool,” he said. “And Headed by Senior Director Force; astronomer Adam Riess; hand perspective on the processes including sessions on the legisla- tomed to traditional media— per columnist, TV commen- cations systems helped or analyze data, to double- the reason it’s educational William “Terry” Goodwin, BCEE actor/activist Richard Dreyfuss; and politics of Congress, develop- tive process and attributes of an are Internet sites for the tator, and Brookings senior hindered the support of the check it, to find weaknesses for most people is that… delivered high-quality educational Alma Powell; German Ambassador ing leaders who acquire an in- effective congressional staffer; assis- exchange of freewheeling fellow E.J. Dionne—had a American people for the in arguments, and then the human mind works seminars to more than 2,000 par- Wolfgang Ischinger; General depth knowledge of the legislative tance in locating an assignment on comments and responses. laptop computer in front of war in Iraq?” the e-mailer communicate in real time.” better when it’s listening ticipants this past year in support Anthony Zinni;Vice Admiral Thad Capitol Hill; and ongoing guid- Blogs gave the anti–John him to receive e-mails from asked. And the panel was Jodie Allen, a former to a conversation than of Brookings’s mission to improve Allen; Zbigniew Brzezinski; and ance throughout the fellowship. Kerry Swift-boat crews a around the country during launched into a lively and journalist, now with the Pew when it’s sitting down the performance and the quality top executives from Nextel, The Legis Fellows also have access national audience. Blogs the forum. informative discussion of Research Center for People being lectured to. And of U.S. public policies and interna- United Health Care, Sodexho to Brookings’s unique resources, gave the pro–John Kerry A giant video screen the impact of bloggers and and the Press, forecast that reading a blog and going tional relations. Members of Con- USA,AES Corp, Coventry Health including scholars, seminars, brief- Swift-boat crews a national covered one wall, displaying the Internet on politics and the distinctions between to information when you’re gress, ambassadors, astronomers, Care, and Gannett Broadcasting; as ings, and publications. audience. Blogs enabled comments from five desig- public policy. new Internet journalists and actively seeking it out, you scientists, and, of course, top exec- well as John Castellani, president BCEE’s International Visiting Howard Dean, a little-known nated bloggers, liberal and Andrew Sullivan, both a old-fashioned print and learn better.” utives addressed BCEE seminars of the Business Roundtable. Fellows program enables mid- to Vermont governor, to raise conservative, who were fol- columnist for old-fashioned broadcast journalists are Not the last word on on a wide range of topics. BCEE’s flagship five-day open senior-level managers from com- tens of millions of dollars lowing the live webcast of magazines and an Internet disappearing. blogs, for sure. But, for BCEE programs explore sub- enrollment program, Executive panies headquartered around the for a presidential campaign. the event on their comput- blogger, proclaimed that the Oh, about the Wonkette. Brookings, the forum was a ject areas such as public leadership; Leadership in a Changing Envi- globe to conduct in-depth Blogs contributed to the ers and sending their often- next generation of journal- She is Ana Marie Cox, a first effort to examine and science and technology policy; ronment, developed and facilitated research in Washington on a broad downfall of CBS News icon tart critiques in real time. ists “are people who are popular blogger, who told understand a phenomenon national security policy; transat- by Mary Ellen Joyce, BCEE’s array of topics, including interna- Dan Rather. At least 800 people writing their own blogs, the conference, “Blogging is that has changed virtually lantic relations; innovative business director of leadership programs, is tional technology transfer, broad- And there was serious across the United States 21-year-olds who will be becoming a traditional every aspect of our lives. practices; legislative policy devel- specialized for government band policy, regulatory policy, ter- speculation that traditional and around the world noticed by future editors or media…more and more like No doubt, we will re- opment; various tort reform issues, employees at the GS-15 and rorism insurance, trade, and U.S. journalists—the so-called watched the live webcast of major magazines as having the mainstream media in examine it again and again such as punitive damages, con- Senior Executive Service (SES) economic policy. Fellows stay for mainstream media, or the forum on their com- distinctive voices.” that it’s also pack-oriented.” in the future. ■ struction defects litigation, and levels. In a retreat atmosphere, par- one to two years, networking, toxic torts; and strategic visioning ticipants explore their personal attending seminars, using Brook- and planning. BCEE activities fall leadership values and reconnect to ings’s research facilities, and sharp- into five basic categories: the foundations of public service. ening their skills in English.

■ Open enrollment programs. The Office of Personnel Manage- PHOTOS WORLD YORK/AP/WIDE MATT BCEE scholars also work sary for successful collaboration, and accountability of this system offer these “outside-the-box” edu- timely legal matters and public pol- ■ Custom programs sponsored by ment has recognized this program U.S. Rep. Jeff Flake of Arizona. directly with government agencies while linking these results to by providing essential training for cational programs at minimal icy issues. For example, more than and designed for agencies, asso- as a means to fulfill half of the to provide innovative, strategic budget realities.The final product state judges through the Judicial financial cost to the judges. 150 judges attended a symposium ciations, and private companies. interagency educational require- process. Each fellow works a full- assessments of problem areas in was endorsed by the National Education Program (JEP), pro- JEP’s flagship course—Eco- on “Critical Issues in Toxic Torts” at ■ Fellowship programs that involve ments for the SES candidate time assignment (for seven or 12 government. Association of State Foresters as duced in partnership with the nomics Institute for Judges—is Georgetown University Law Cen- long-term, in-depth study of an development program. months) on the staff of a member BCEE Senior Advisor Al Hyde well as all the participating AEI-Brookings Joint Center for a two-week residential program ter in April 2005.Almost 600 agency, institution, or issue. Some organizations find open of Congress or a congressional recently developed the first-ever agencies. Regulatory Studies. held at the Brookings Institution. judges have participated in at least ■ Grant-sponsored programs for enrollment programs to be too committee in Washington. During integrated mission strategy for the JEP seminars offer insights into Robert E. Litan, senior fellow in one JEP event since its inception at targeted audiences. general to serve the unique, indus- the past year, BCEE Legis Fellows “wildland” fire community, which Judicial Education Program important concepts in the business Economic Studies, teaches approx- Brookings in October 2003. ■ Strategic assessment for select try-specific needs of their execu- were placed in the offices of 12 standardized the emergency U.S. business leaders have been world—economics, finance, and imately 20 percent of the Eco- Henry N. Butler, director of government agencies. tives. In response to this concern, U.S. senators—including Hillary response capabilities of the five frustrated by the widening dis- accounting—which allow judges nomics Institute. Other Brookings JEP,is a lawyer and economist BCEE also recruits scholars BCEE has developed custom pro- Clinton, Barack Obama, Joseph federal agencies responsible for fire connect between the nation’s civil to better understand the nature of scholars—Robert W.Crandall, who brings 16 years of experience and practitioners from Brookings, grams for government agencies Lieberman, Harry Reid,Ted management.This effort produced justice system and the people it the disputes that come before Kenneth M. Pollack, Bill Gale, directing similar programs at other Washington institutions, and such as the Internal Revenue Ser- Kennedy, and Barbara Boxer—as a common vision and a long-term serves.The Brookings Institution them.The seminars are supported Clifford Winston, and Susan George Mason University, the many universities to help corpo- vice, Centers for Disease Control, well as in the offices of many House strategic plan for agencies that had continues to play an important by grants and donations to the Collins—are regular contributors. University of Kansas, and Chap- rate and government executives the Department of Health and members and on committee staffs. previously lacked the tools neces- role in improving the efficiency Joint Center, which enables JEP to JEP also offers symposia on man University. ■ 40 41 STATEMENTS OF ACTIVITIES STATEMENTS OF FINANCIAL POSITION Years Ended June 30, 2005 and 2004 (in thousands) As of June 30, 2005 and 2004 (in thousands)

2005 2004 TEMPORARILY PERMANENTLY 2005 2004 UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL ASSETS OPERATING REVENUES Cash and cash equivalents $7,689 $1,787 Investment return designated for operations $10,653 $10,653 $10,503 Accounts receivable 2,520 1,416 Grants and contracts 1,259 $27,445 28,704 26,787 Grants and contracts receivable 23,368 20,758 Contributions 3,194 113 3,307 3,651 Pledges receivable 1,320 1,610 Conferences 4,015 4,015 3,132 Accrued interest and dividends 477 103 Brookings Press 2,502 2,502 2,765 Inventory 634 817 Information Technology Services 38 38 55 Investments, at fair value 231,927 219,286 Interest and dividends 46 46 7 Land, buildings and equipment-net 11,968 11,999 Rental income, net 148 148 61 Other assets 305 337 Visiting scholars 329 329 375 TOTAL ASSETS 280,208 258,113 Other income 42 42 358 Net assets released from restrictions- LIABILITIES Grants and contracts 19,661 (19,661) 0 0 Accounts payable and accrued expenses 3,088 2,312 Total Operating Revenue 41,887 7,897 49,784 47,694 Accrued compensated leave 1,614 1,478 Accrued post-retirement benefits 4,543 4,374 OPERATING EXPENSES Note payable 650 1,050 Operating programs Deferred revenue 574 695 Economic Studies 6,949 6,949 5,994 TOTAL LIABILITIES 10,469 9,909 Foreign Policy Studies 8,802 8,802 7,157 Governance Studies 1,810 1,810 4,283 NET ASSETS Metropolitan Policy Program 4,312 4,312 4,434 Unrestricted 186,944 175,094 Other research 1,368 1,368 771 Temporarily restricted 34,543 26,646 Center for Executive Education 4,682 4,682 4,010 Permanently restricted 48,252 46,464 Brookings Press 3,088 3,088 3,337 TOTAL NET ASSETS 269,739 248,204 Communications 891 891 989 Total Operating Programs 31,902 31,902 30,975 TOTAL LIABILITIES AND NET ASSETS $280,208 $258,113 Supporting services: Management and General Information Technology Services 2,614 2,614 2,156 Administration 4,283 4,283 3,761 Interest expense 58 58 111 Notes: Post-retirement benefits 172 172 746 As a nonprofit and scientific organization, Total management and general 7,127 7,127 6,774 Brookings is exempt from federal income taxes Development 2,191 2,191 1,927 under section 501(c)(3) of the Internal Revenue Total Operating Expenses 41,220 41,220 39,676 Code.The Institution also qualifies as a publicly Operating revenues over operating expenses 667 7,897 8,564 8,018 supported organization under section Operating Revenues Program Expenses 20% 170(b)(1)(A)(vi) of the code. Economic Studies NON-OPERATING ACTIVITIES 56% The Brookings policy is to make an annual Gifts and Grants 4% Investment return in excess of amounts investment spending allocation for the support of Other Research designated for operations 2% 3% operations.This amount is calculated based on Government Communications Realized gain (loss) on sale of investments 7,135 7,135 9,100 70% of the prior year’s spending adjusted for infla- Unrealized gain (loss) from investments 11,598 11,598 21,203 6% tion and 30% of 5% of the market value of the 1% Development Interest and dividends, net 3,103 3,103 1,855 Miscellaneous investments as of December 31 of the prior fiscal 9% Investment income allocation (10,653) (10,653) (10,503) Publications year. Certain reclassifications of prior year balances 6% Publications Contributions-Permanent Endowment $1,788 1,788 1,669 have been made to conform to the current year 13% Change in net assets from non-operating Metropolitan Policy Program presentation. 10% activities 11,183 1,788 12,971 23,324 BCEE 14% A copy of the Institution’s audited financial BCEE INCREASE (DECREASE) IN NET ASSETS 11,850 7,897 1,788 21,535 31,342 5% statements is available by request. 25% Governance Studies Net assets at the Beginning of the Year 175,094 26,646 46,464 248,204 216,862 Endowment Net assets at the End of the Year $186,944 $34,543 $48,252 $269,739 $248,204 26% Foreign Policy Studies 42 43 TRUSTEES

John L. Thornton Brian L. Greenspun Antoine W. van Agtmael Lee H. Hamilton J. Woodward Redmond Chair of the Board President and Editor President and CIO President and Director President The Brookings Institution Las Vegas Sun Emerging Markets Management, The Woodrow Wilson J.W.Redmond & Company LLC International Center for Scholars Strobe Talbott William A. Haseltine Ph.D. Charles W. Robinson President President Beatrice W.Welters F.Warren Hellman President The Brookings Institution The Haseltine Foundation Founder Chairman Robinson & Associates, Inc., The An-Bryce Foundation Hellman and Friedman LLC CBTF Co., and M Ship Co. Zoë Baird Teresa Heinz President Chairman Daniel Yergin Robert A. Helman James D. Robinson III The Markle Foundation Heinz Family Philanthropies Chairman Partner General Partner Cambridge Energy Research Mayer, Brown, Rowe & Maw RRE Ventures Alan R. Batkin Samuel Hellman M.D. Associates Non-Executive Chairman Vice Chairman A.N. Pritzker Distinguished Roy M. Huffington Bristol-Myers Squibb Company Kissinger Associates, Inc. Service Professor HONORARY TRUSTEES Chairman and CEO The University of Chicago Leonard Abramson Roy M. Huffington, Inc. Judith Rodin Ph.D. Richard C. Blum Consultant and Member of the President Chairman and President Glenn Hutchins Boards of Directors of James A. Johnson The Rockefeller Foundation Blum Capital Partners, LP Founder and Managing Partner Children’s Hospital of Philadelphia Vice Chairman Silver Lake Partners and Johns Hopkins University Perseus, LLC Warren B. Rudman Geoffrey T. Boisi Of Counsel Chairman and Senior Partner Joel Z. Hyatt Elizabeth E. Bailey Ann Dibble Jordan Paul,Weiss, Rifkind, Roundtable Investment Partners CEO Chair and John C. Hower Professor Washington, DC Wharton & Garrison LLC Current Media, LLC of Business and Public Policy The Wharton School Vernon E. Jordan Jr. B. Francis Saul II James W. Cicconi Shirley Ann Jackson Ph.D. University of Pennsylvania Senior Managing Director President and Chairman General Counsel and President Lazard Frères & Co. LLC B.F.Saul Company Executive Vice President Rensselaer Polytechnic Institute Rex J. Bates Of Counsel AT&T Sequim,WA Akin Gump Strauss Hauer & Feld, Ralph S. Saul Kenneth Jacobs LLP Former Chairman Arthur B. Culvahouse Jr. Deputy Chairman Louis W. Cabot CIGNA Corporation Chair Lazard LLC Chairman Breene M. Kerr O’Melveny & Myers LLP Cabot-Wellington LLC President Henry B. Schacht Suzanne Nora Johnson Brookside Company Managing Director and Senior Kenneth W. Dam Vice Chairman A. W. Clausen Advisor Max Pam Professor The Goldman Sachs Group, Inc. Retired Chairman and CEO Marie L. Knowles Warburg Pincus LLC of American & Foreign Law Bank of America Corporation Retired Executive Vice President University of Chicago Law School Michael H. Jordan Former President and CFO Michael P. Schulhof Chairman and CEO The World Bank Atlantic Richfield Company Chairman and CEO Vishakha N. Desai Ph.D. EDS Corporation (ARCO) Global Technology Investments President and CEO William T. Coleman Jr. The Asia Society Harold Hongju Koh Senior Partner and the Senior James T. Lynn Joan E. Spero Dean of Yale Law School Counselor Retired CEO President Thomas E. Donilon Yale University O’Melveny & Myers LLP Aetna Life & Casualty Company Doris Duke Charitable Foundation Partner O’Melveny & Myers LLP William A. Owens Alan M. Dachs Jessica Tuchman Mathews Vincent J. Trosino Vice Chairman and CEO President and CEO President President, COO and Vice Chairman Mario Draghi Nortel Networks Fremont Group Carnegie Endowment for of the Board Vice Chairman and Managing International Peace State Farm Mutual Automobile Director Frank H. Pearl D. Ronald Daniel Insurance Company Goldman Sachs International Chairman and CEO Director David O. Maxwell Perseus, LLC McKinsey & Company, Inc. Retired Chairman and CEO John C. Whitehead Kenneth M. Duberstein Fannie Mae New York,NY Chairman and CEO John Edward Porter Robert A. Day The Duberstein Group, Inc. Partner Chairman Donald F. McHenry Stephen M. Wolf Hogan & Hartson Trust Company of the West Distinguished Professor in the Chairman Lawrence K. Fish Practice of Diplomacy and Lehman Brothers Private Equity Chairman, President and CEO Steven Rattner Bruce B. Dayton International Affairs Advisory Board Citizens Financial Group, Inc. Managing Principal Wayzata, MN School of Foreign Service Chairman Quadrangle Group LLC Georgetown University R.R. Donnelly & Sons Company Cyrus F. Freidheim Jr. Charles W. Duncan Jr. Managing Partner Retired Chairman of the Haim Saban Chairman Robert S. McNamara Alpilles, LLC Board & CEO Chairman and CEO Duncan Interests Former President Chiquita Brands International, Inc. Saban Capital Group, Inc. The World Bank James D.Wolfensohn Walter Y. Elisha Special Envoy for the Gaza Bart Friedman Leonard D. Schaeffer Retired Chairman and CEO Mary Patterson McPherson Disengagement Senior Partner Founding Chairman and CEO Springs Industries, Inc. Vice President Former President Cahill Gordon & Reindel WellPoint The Andrew W.Mellon Foundation The World Bank Robert F. Erburu David Friend Lawrence H. Summers Non-Executive Chairman Arjay Miller Ezra K. Zilkha President and CEO President Marsh & McLennan Companies, Dean Emeritus President Carbonite, Inc. Harvard University Inc. Stanford Graduate School of Zilkha & Sons, Inc. Chairman of the Board (Retired) Business Ann M. Fudge David F. Swensen The Times Mirror Company Chairman and CEO Chief Investment Officer Mario M. Morino Young & Rubicam Brands Yale University Henry Louis Gates Jr., Ph.D. Chairman Chairman Venture Philanthropy Partners Jeffrey W. Greenberg Larry D.Thompson Department of African and African Private Investor Senior VP of Governmental Affairs American Studies Maconda Brown O’Connor and General Counsel Harvard University Ph.D. PepsiCo, Inc. Trustee Robert D. Haas The Brown Foundation, Inc. Laura D’Andrea Tyson Chairman of the Board Dean Levi Strauss & Co. Samuel Pisar Ph.D. London Business School International Lawyer New York and Paris 44