Brookings

Editors: Susan Kellam and Melissa Skolfield Copyright ©2011 The 1775 Avenue, NW PRODUCTION COORDINATOR: Adrianna Pita Washington, DC 20036 Design and Print Production: TMG Telephone: 202.797.6000 Jeffrey Kibler, Adriana Guevara, Brenda Waugh Fax: 202.797.6004 www.brookings.edu Library of Congress Card Number: 84-641502 Contents 4 20 Economic Studies As America grapples with high Metropolitan Policy Mapping the next economy unemployment, sputtering growth, a federal budget deficit and a still- through trend analyses from the nation’s 100 largest U.S. metropolitan troubled housing market, Economic Studies scholars instilled sound areas, Metropolitan Policy experts have begun to put forth a strategy ideas into the national discourse. for long-term recovery that is driven by exports, powered by low carbon, fueled by innovation and rich with opportunity. 8 Global Economy and Development 24 Sustainable growth requires confronting challenges on many global Impact: From Urgent to Enduring fronts, from trade and financial regulation to persistent poverty and . International scholars in Global Economy and Challenges Brookings strives for impact in at least three Development worked with officials around the world to forge solutions ways: designing policy recommendations, shaping critical debates across geographic barriers. and setting the longer-term policy agenda. In this extraordinary year, the Institution’s scholars contributed significant accomplishments Brookings 12 in all three domains. Foreign Policy When historic events shake the world, as 26 they did this past year, Foreign Policy experts at Brookings can guide U.S. and foreign officials through the policy challenges by navigating Brookings Priorities Brookings finds effective the fast-moving panoramas in Cairo, Tokyo, Athens, Islamabad, solutions to policy problems by coordinating efforts around four Baghdad and other cities erupting in revolution or responding to crisis. priority areas in which the Institution has depth and breadth and that also correspond to the major issues our political leaders must address. Those include: growth through innovation, opportunity and well- 16 being, sound energy and climate policy and managing global change. Governance Studies With discord growing between Congress and the White House, Governance Studies scholars 28 urged practical reforms that could make sense to both parties and to both branches of government. Ideas on filibuster abuse, expediting Support for Brookings Brookings’s role as a the process of filling executive branch positions, instilling more truly global tank proved particularly timely as this year’s historic transparency into the redistricting process and many more ideas could moments called for experts interacting as the action unfolded. None bridge the government divide. of that could have happened without the generosity and foresight of its donors. 2 President’s Message 3 Chairman’s Message 34 Trustees 38 Financial Summary Brookings Press 40 Printing: Jarboe Printing Cover Photograph: Cameron Davidson 1 President’s Message

n the 96 years since Brookings was founded, rarely has change been as unpredictable, multifaceted, and consequential. Rarely have there been such acute and widespread doubts about the efficacy of democratic institutions. And never, in the Institution’s history, has Brookings had more capacity to play a leading role in meeting these challenges. National morale is in the doldrums. Partisanship and polarization are more Iextreme and toxic than at any time since the late 19th century. Public optimism and trust in government are at an all-time low. While our scholars deal with many issues, they are all, in diverse ways, addressing the question of how to make our political system more effective. They ask how to restore a sense of common national purpose across party lines and between the public and private sectors; how better to organize, protect and empower our citizenry—in short, how better to govern ourselves in an increasingly interdependent world that is suffering from a contagion of economic woes and political discontent. Our scholars’ ability to generate fresh, bold, pragmatic ideas flows naturally from the Institution’s evolution over the decades. For much of our history, Brookings has been the premier Washington think tank, though always with an eye on the larger world. Toward the end of the 20th century, we moved aggressively outside the Beltway. We formed networks with metropolitan areas that were emerging as the drivers of the U.S. economy. At the beginning of the 21st century, we went global. We brought international leaders onto our Board of Trustees and into the management of the Institution; established our International Advisory Council, now under the leadership of Antoine van Agtmael and Paul Desmarais; and expanded exchanges with universities, think tanks and NGOs on other continents. All this outreach—into the American heartland and across borders and oceans—enables us, as we like to say, to move from the local to the national to the global and back again. We can do that because of our distinctive advantage, which is the combined breadth and depth of our scholars’ knowledge and experience. In order to foster collaboration and coordination among scholars in different fields, we have identified four “All-Brookings” priorities: opportunity and well- being; growth through innovation; global change; and energy and climate change. Each of our scholars is working under one or more of these rubrics, and many are doing so together on an interdisciplinary basis. This past year, even while many of our scholars were circling the globe, our single biggest preoccupation has been the converging consequences of the weak American economy, the bitter polarization of American politics and the growing concern, at home and abroad, about the capacity of the to maintain its leadership in the world. In addressing these and other major problems of our time, my colleagues and our Trustees are determined that Brookings will be, as it has been in its long history, a trustworthy source of workable solutions. It is in that spirit that we will, in the years ahead, do our part to help end the jobs crisis; restore fiscal sanity to the nation’s accounts; build a consensus on the size, scope and mission of the federal government; define “smart growth” and how to achieve it; bolster the integrity of our electoral system; and adapt the conduct of foreign policy to the realities and opportunities of a changing world. Moreover, we will do our job not only in the substance of our work but in the way our scholars advocate for their analysis and their policy prescriptions. As we see it, setting—and meeting—the highest standard of nonpartisanship, independent thinking and civil public discourse is the overarching All-Brookings priority. , Brookings President 2 . Chairman’s Message

n times of stress and uncertainty, Brookings has had a proven ability to ask the right questions, come up with solid and useful answers, bring together the relevant policymakers and opinion leaders and have a posi- tive impact on the course of events. This past year was just such a time. European economies teetered on the brink; an earthquake, tsunami and nuclear crisis in Japan sent Ishock waves around the world; and the U.S. economy faltered in its effort to get back on a path of sustained growth. The need to generate fact-based research and inform the public about the issues and the stakes was more urgent than ever. So when U.S. Treasury Secretary had a message to deliver on our economic relations with China, he came to Brookings. House Budget Chairman Paul Ryan of Wisconsin came to our partisanship-free set- ting to outline the Republican plan for reducing deficits. And Secretary of State and Israeli Defense Minister Ehud Barak chose our Saban Forum to urge a new push for peace, knowing that leading thinkers in the region would hear them clearly. While dealing with perennial issues, our scholars have also been able to respond quickly and authoritatively to “black swan” events. While virtu- ally no one predicted the Arab awakening, it played to our expertise on the Middle East, both in Washington and at our Doha Center in Qatar, on what was one of the epic surprises of our time. Our scholars quickly established themselves as leading and trusted voices on the airwaves and online. Brookings scholars also helped policymakers and the public understand the dimensions of Europe’s debt crisis as it moved from Greece to Italy and Spain. The Africa Growth Initiative established partnerships with six Afri- can think tanks and explored the role of increased price volatility in Africa’s agriculture industry. Our Latin America Initiative explained the benefits of free trade agreements with Colombia and Panama. Meanwhile, scholars here have been advising the Secretary-General of the , the host governments of G-20 summits, the leadership of the World Bank and Inter- national Monetary Fund, and senior officials of the U.S. government and Congress. They have concentrated on ways to improve international coopera- tion in the face of global threats ranging from contagious financial instability to climate change, cyberaggression and nuclear proliferation. Given the nation’s and the world’s economic troubles, Brookings engaged a wide range of corporate, labor and civic leaders in the search for pragmatic solutions. Several Brookings Trustees helped to launch our effort on growth through innovation—especially Dominic Barton, Steve Denning, Ann Fudge (who, along with Senior Fellow Alice Rivlin, served on the National Com- mission on Fiscal Responsibility and Reform), Glenn Hutchins and Klaus

Photo by Paul Morigi Paul by Photo Kleinfeld. When corporate leaders—from Jeffrey Bewkes of Time Warner to Randall Stephenson of AT&T to Jorma Ollila of Shell—looked for a respected forum to discuss ideas for how to advance innovation, they did so at Brookings. Likewise, when Richard Trumka, the head of the AFL-CIO, wanted to lay out his view on job creation, he too came to our auditorium. As we approach our centenary in 2016, we will be guided by a deter- mination to live up to our legacy. To meet that goal, we must update and reinforce our ability to translate our motto—Quality, Independence, Impact—into research, analysis and policy proposals that will help leaders and citizens alike meet the challenges of humanity’s new century. With the John L. Thornton, Brookings Chairman indispensable support of our donors, we are confident we will succeed. 3 Economic Studies Contributing sage ideas to the national discourse

4 Photo by Paul Morigi Paul by Photo

Beyond the Affordable Care Act, Senior Fellow Mark McClellan, director of the Engelberg Center for Health Care Reform, and Former House Speaker address issues of quality and cost containment for the U.S. health care system. McClellan is the Leonard D. Schaeffer Chair in Health Policy Studies.

U.S. Senator Maria Cantwell of Washington talks about the bipartisan solutions to America’s energy challenges at a Hamilton Project event in Morse Paul by Photo May.

< Karen Dynan, vice president and co-director of Economic Studies, and Ted Gayer, Economic Studies co-director, a brief moment of levity while outlining the need for a new housing finance system at an Initiative on Business and Public Policy conference in February.

Photo by Paul Morse Paul by Photo 5 Economic Studies

enewing the U.S. advice. Senior Fellow Alice M. economy in the Rivlin joined Brookings experts aftermath of the on taxation, defense spending and Great Recession entitlements to provide pragmatic remained a chal- policy ideas. lenge as the nation Prospects of a jobless recovery Rcontinued to grapple with long- also rankled the nation this year. term unemployment, the unsus- Tracking America’s “job gap”—the tainable path of federal debt and number of jobs that the U.S. econ- entitlement spending and a still- omy needs to create to resume troubled housing market. Within pre-recession employment levels the Economic Studies program, while also absorbing the 125,000 scholars worked on comprehen- entrants into the labor force each sive policy analysis and recom- month—Senior Fellows Michael

mendations that were often Greenstone and Adam Looney, Morigi Paul by Photo quickly absorbed into the national director and policy director for the discussion. Hamilton Project, provided data- Francis S. Collins, director of the National Institutes of “Households and businesses rich snapshots of how segments Health, discusses the economic benefits of longer lives through remain reluctant to spend in the of the population fare in the job medical advancements at a Hamilton Project event on innovation. face of considerable uncertainty market. And Senior Fellow Gary about what the future holds for Burtless continued his monthly responses from, among others, unlikelihood of passing deficit them,” said Karen Dynan, vice real-time analyses of the govern- the Times’ Paul Krug- reduction plans that can tackle president and co-director of Eco- ment unemployment reports. man, who wrote, “Yippee … a all the entitlement programs, was nomic Studies. “To track this and Senior Fellow Martin Baily, great resource is now available.” awarded the National Tax Asso- other economic trends, we have director of the Initiative on Busi- Moving the health care reform ciation’s 2010 Daniel M. Holland an expert team in place that works ness and Public Policy, authored debate forward, Senior Fellow Medal for lifetime achievement. in tandem on the different issues, several reports on how to jump- Mark McClellan, the Leonard D. Policymakers and the press releasing reports, opinion pieces start small business and the Schaeffer Chair in Health Policy once again found a one-stop shop and congressional testimony that sector. Baily, also Studies, continued to examine at the Urban-Brookings Tax Policy reach people around the world the Bernard L. Schwartz Chair in how to slow health care spending Center, co-directed by Senior Fel- through various communication Economic Policy Development, while improving quality of care. low William G. Gale, the Arjay channels,” added Dynan, also the and Fellow Douglas Elliott con- Led by McClellan, the Engelberg and Frances Fearing Miller Chair Robert S. Kerr Senior Fellow. tinued to provide solid advice on Center for Health Care Reform in Federal Economic Policy. Gale “We have recruited outstand- financial regulatory reform. offered critical advice on how to also continued to shape fiscal pol- ing new scholars this year to com- In January, Senior Fellow improve patient care and lower icy debates, with his annual inde- plement the existing team,” said Donald Kohn, former Federal costs through health information pendent projections of the deficit Ted Gayer, co-director of the pro- Reserve Vice Chairman, testify- technology and better community widely cited, including by Chair- gram and the Joseph A. Pechman ing before the House Committee collaboration. woman of the Joint Economic Senior Fellow. Those include on Financial Services, called the Testifying before the House Committee Carolyn Maloney and Tracy Gordon, a new fellow with marked rise in the number of Energy and Commerce Commit- several mentions by New York expertise in state and local fiscal long-term unemployed Americans tee in May, McClellan discussed Times columnist David Leonhardt. issues, and Kavita Patel, a fel- “an immense human and eco- how the federal payments formu- Economic Studies remained low at the Engelberg Center for nomic waste.” Kohn urged Con- las have failed to address Medi- a major contributor to Brook- Health Care Reform who is also a gress to structure policies that care’s worsening fiscal outlook ings work on energy and climate practicing physician. rely much less on consumption and encouraged Congress to take change. The climate and energy As political parties battled over and residential housing construc- the opportunity to provide better team of Nonresident the best way to address the federal tion to support jobs and incomes support to physicians who lead in Senior Fellows Warwick McK- debt, the Budgeting for National and much more on investment improving care. ibbin and Pete Wilcoxen, with Priorities project—spearheaded by and net exports. Senior Fellow Henry Aaron, Fellow Adele Morris as policy Senior Fellow Isabel V. Sawhill, All 40 years of the Brookings who published three pieces this director, released a paper this the Cabot Family Chair—weighed Papers on Economic Activity went year in the New England Journal year comparing a carbon tax with into the debate with dispassion- electronic this year on the Brook- of Medicine and an opinion in the a system of tax credits for energy- ate, independent and focused ings website, eliciting positive New York Times on the political efficient investment. n 6 Office of Management and Budget Director defines the administration’s views on the short-and long- term fiscal choices the country faces. A lswang al p h R Photo by Paul Morse Paul by Photo Photo by by Photo

Should the disadvantaged be spared from the budget axe? Senior Fellow Isabel Sawhill convened experts to answer that question in December 2010, shortly after recommendations were released from the President’s National Commission on Fiscal Responsibility and Reform. They include Douglas Holtz-Eakin (center), president of the American Action Forum, and Dean Baker, co-director of the Center for Economic and Policy Research.

Alice Rivlin joins other Brookings Senior Fellows—Ron Haskins (far left), William Gale, and William Galston—for a Board of Trustees presentation. In a year when the rising national debt sparked more rancor than ideas for solvency, the experts offered well-

received and sage advice. Morigi Paul by Photo 7 Global Economy and Expanding Development to forge international solutions

8 wang A l s al p h R Photo by by Photo

The Prime Minister of the Republic of Trinidad and Tobago, Kamla Persad-Bissessar (center, back row) gathers with Brookings President Strobe Talbott (center, back row), Beatrice W. Welters, U.S. ambassador to Trinidad and Tobago (second from the left, back row), Mauricio Cárdenas (far right, back row) and others after a Latin America Initiative event.

Escalating conflict in Ivory Coast forced hundreds of thousands to flee their homes. With the eyes of the world on struggles in North Africa, Sudan and Japan, Brookings Distinguished Visiting Fellow Ezra Suruma shifts discussion to the political and humanitarian crisis in Ivory Coast.

< Discussing a path to global recovery, Vice President and Director of the Global Economy and Development program Kemal Dervis¸ moderates as U.S. Treasury Secretary Timothy Geithner declares that it will take economic growth to Photo by Paul Morigi Paul by Photo produce a sustainable recovery. m Sa Kittner by Photo 9 Global Economy and Development

tructural shifts in brings together contributions the world economy from thought leaders in G-20 require strong ideas on countries. a range of critical pol- The events of the Arab spring icy challenges—from were a reminder that improving trade and financial the global economy and develop- Sregulation to poverty alleviation ment outcomes demands overall and climate protection. Global social and political progress. The Economy and Development schol- program’s previous research on ars helped policymakers and other the Middle East youth bulge in thought leaders to better under- Generation in Waiting (Brookings stand these issues, and to identify Institution Press, 2009) received new approaches to sustainable even greater media attention and growth and development. policy focus during the events

“The range of challenges that unfolded in Arab nations. Morigi Paul by Photo in the global economy today is Senior Fellow Eswar Prasad— extraordinary,” said Kemal Dervis¸ , a leading expert on emerging mar- Recently returned from Pakistan, Sir Michael Barber, co-chair vice president and director of kets and the New Century Chair of the Pakistan Education Task Force, offers his assessment of the program. “By working with in International Trade and Eco- the progress of education reform there. Senior Fellow Rebecca officials from around the world, nomics—continued tracking the Winthrop, director of the Center for Universal Education, including G-20 countries and recovery efforts in G-20 countries moderates. throughout the African continent and rising global public debt and Latin America, the program through two interactive ventures has expanded its international with the Financial Times. 2010) and Catalyzing Develop- among others, and built on its reach,” added Dervis¸ , also the Expanding the program’s work ment: A New Vision for Aid research with its African think Edward M. Bernstein Scholar. on international trade policy, Fel- (Brookings Institution Press, tank partners. Dervis¸ led the program’s low Joshua Meltzer joined Brook- 2011)—and also launched the The Latin America Initiative efforts this year to assess the ings to concentrate on the inter- Quality of Official Development launched the bi-annual Brookings global economic recovery and section between climate change Assistance jointly with the Center Latin America Economic Perspec- structural changes in the world and international trade, as well for Global Development. Fel- tives report to offer analyses of economy. He participated as as U.S. trade with key economies lows Noam Unger and Laurence Latin America’s recovery from a lead speaker in a high-level such as China, Latin America Chandy delved into U.S. foreign the global economic crisis. In conference hosted by the Inter- and South Korea. assistance priorities and global May, the initiative held the Latin national Monetary Fund (IMF) Meanwhile, millions still poverty trends. Senior Fellow American Leaders Forum, a pri- and the International Labour struggle to access basic needs. Daniel Kaufmann published the vate conversation with Secretary Organization in Oslo on the chal- The Development Assistance and annual update to the Worldwide of State Hillary Clinton and oth- lenges of growth, employment Governance Initiative scholars Governance Indicators. ers at the U.S. State Department and social cohesion. Together worked to influence how aid and Led by Senior Fellow and that brought together the former with Senior Fellow Domenico development policies are used Director Rebecca Winthrop, the presidents of Brazil, Mexico, Lombardi and Masahiro Kawai to tackle global poverty. At the Center for Universal Education Peru, El Salvador, Colombia and of the Asian Development Bank eighth annual Brookings Blum worked to advance equitable Panama. Institute, Dervis¸ published Asia Roundtable in Aspen, 50 thought learning and quality education One of the most worrisome and Policymaking for the Global leaders came together to discuss opportunities in developing constraints on growth in devel- Economy (Brookings Institution a new role for global develop- countries. The center released oping countries is changing Press, 2011). ment cooperation—one that a flagship report that called for climates. Prior to the United Informing the G-20’s role in employs inclusive and innovative a renewal of global cooperation Nations climate change meet- macroeconomic policy coordina- approaches for tackling contem- on education in low-income ings in Cancún, Senior Fellow tion is an area of continued focus porary development problems. countries. Katherine Sierra and Nonresident for the program. Global schol- Senior Fellow and Deputy The Africa Growth Initiative, Fellow Nathan Hultman offered ars released reports in advance Director Homi Kharas published led by Senior Fellow and Direc- expert opinion and research on of the Seoul summit, and also two books—Delivering Aid Dif- tor Mwangi Kimenyi, recruited financing for climate change launched a new effort entitled ferently: Lessons from the Field additional scholars from Cam- adaptation and mitigation and the Think Tank 20 (TT20), which (Brookings Institution Press, eroon, Kenya and South Africa, green technologies. n 10 I rvin A lex Photo by by Photo

USAID Administrator Rajiv Shah speaks on aid effectiveness at the Brookings Blum Roundtable in Aspen as Senior Fellow and Deputy Director Homi Kharas listens.

Laura Chinchilla, president of the Republic of Costa Rica, credits her country’s economic transformation and Mor s e Paul by Photo diversification with warding off the worst effects of the economic crisis.

The new “multipolar” world was the theme of a Brookings event in October 2010, as participants discussed the need for more coordinated economic policies. Nobel laureate suggests that forming an economic council to supersede the G-20 might be the way to move beyond a world economic structure that

Photo by Paul Morigi Paul by Photo gives special interests the advantage. 11 Foreign Policy Navigating in a turbulent world

12 Navigating in a

turbulent world < At the eighth annual U.S. Islamic World Forum, U.S. Secretary of State Hillary Clinton talks about the new generation of young people rejecting false narratives. “Despite the best efforts of the censors, they are connecting to the wider world in ways that their parents and grandparents could never imagine,” she says. A project of the Saban Center for Middle East Policy, the forum convened for the first time in Washington, D.C. at a critical moment in Middle

s VanderSchan Mallory Sgt. by Photo Eastern political history. < Senior Fellow Michael O’Hanlon arrives Photo by Paul Morse at Command Operating Post Payne in Afghanistan in May. He joins U.S. Marine Corps Commandant General James F. Amos.

< Former European Union High Representative for Common Foreign and Security Policy Javier Solana embraces Martin Indyk, vice president and director of the Foreign Policy program, after offering his perspectives on security, stability and democracy in a changing world at the seventh annual Sakıp Sabancı Lecture. Solana is a distinguished senior fellow in the Foreign Policy Photo by Paul Mor s e Paul by Photo Photo by Paul Morigi Paul by Photo program at Brookings. 13 Foreign Policy

istoric events moud Gibril Elwarfally, who has shook the world since gained recognition as the this year, from prime minister of liberated Libya. the Arab awak- Other path-breaking events this ening to devas- year included the second annual tating seismic conference with U.S. Central Hactivity in Japan and the lethal Command, bringing together raid on Osama bin Laden’s com- 150 experts to consider Iran pound in Pakistan. Further com- and its role in the Gulf region. plicated by ongoing wars in , At the seventh annual Saban Afghanistan and Libya, as well Forum in December, Secretary of as the rise of economic powers State Hillary Clinton and Israeli in Asia and Latin America, this Defense Minister Ehud Barak fast-changing panorama required jointly urged a push for peace

the navigational skills of Foreign despite the setbacks. In April, the Mor s e Paul by Photo Policy’s experts at Brookings to eighth annual U.S. Islamic World guide U.S. and foreign officials Forum convened for the first As the campaign to oust Qaddafi continued in May, the through the policy challenges. time in Washington, D.C., with Saban Center for Middle East Policy hosted a discussion with “The shifting global dynamics speakers that included Sens. John Mahmoud Gibril Elwarfally, then the interim prime minister of the have put us in the middle of chal- Kerry of Massachusetts and John Transitional National Council of the Libyan Republic. lenging policy debates in Washing- McCain of Arizona, Secretary ton and in other world capitals,” Clinton, Foreign Minister Nasser earthquake and tsunami in Japan, tions Director Alexander Dynkin said Martin Indyk, vice president Judeh of Jordan and Egyptian the Brookings- School of to further arms reductions talks. and director of Foreign Policy. revolutionaries. Economics Project on Internal Pifer also oversaw work at Brook- “Our 35 scholars excelled this Pressing national security Displacement, under the stew- ings on the ratification of the New year at anticipating and analyzing and political crises spread. The ardship of Senior Fellow and START treaty. the longer-term global trends and Center on the United States and Co-Director Elizabeth Ferris, With its 21st Century challenges.” Europe (CUSE), led by Senior produced several reports on gaps Defense Initiative, Foreign With Arab countries roiling Fellow Fiona Hill, was a leading in humanitarian responses to the Policy delved into the new field in 2011, the Saban Center for voice on the internal political disaster. of cybersecurity, especially its Middle East Policy, led by Senior challenges facing the eurozone’s Jonathan Pollack, one of impact on modern conflict as well Fellow Kenneth Pollack, put the economic crisis. CUSE also the leading analysts of Chinese as on the U.S.-China relation- dramatic uprisings into perspec- served as a valuable resource defense and security issues, ship. Nonresident Fellow Noah tive, and in so doing, helped to policymakers on issues on joined Kenneth Lieberthal’s team Shachtman, national security edi- shape policymakers’ responses Europe’s periphery. Hill briefed at the John L. Thornton China tor of Wired magazine, contrib- to those events. Senior Fellows Vice President Joseph Biden Center. Pollack chronicled the uted his expertise to the project. Daniel Byman, Bruce Riedel and on Russian domestic politics in political-military evolution of the Under the leadership of Suzanne Maloney and Fellow advance of his March visit to Korean peninsula since 1945, Senior Fellow Bruce Jones, the Stephen Grand found themselves Russia. Turkey Project Director with a focus on North Korea’s Managing Global Order project in considerable demand for brief- Ömer Tas¸pınar, a nonresident pursuit of nuclear technology in a continued to examine transna- ings at the White House and in senior fellow, briefed Secretary of new book, No Exit: North Korea, tional threats. Jones authored key government agencies. The State Clinton on Turkish political Nuclear Weapons and Interna- “Largest Minority Shareholder in dramatic events put the Brookings developments. tional Security. Global Order LLC: The Chang- Doha Center on the map. Fellows The accident at Japan’s Fuku- Nuclear arms security ing Balance of Influence and Salman Shaikh, Ibrahim Sharqieh shima Daiichi Nuclear Power remained a priority this year. Led U.S. Strategy,” released as part of and Shadi Hamid became authori- Plant reverberated worldwide by Senior Fellow Steven Pifer, the a new partnership with Foreign tative voices from the region. and threatened to dampen resur- Arms Control Initiative hosted dis- Policy magazine. Foreign Policy continued its gent interest in nuclear power. cussions with Brookings President Senior Fellow Ted Piccone long tradition of hosting world Policy debates that followed often Strobe Talbott, former Secretary published a major study of the leaders and prominent officials included the voice of Senior Fel- of State , U.N. human rights system timed for major addresses at Brookings, low Charles Ebinger, director of former Russian Foreign Minister to coincide with the intensive including appearances by King the Energy Security Initiative. Igor Ivanov and Institute of World U.N. and congressional debates Abdullah of Jordan and Mah- Also in the aftermath of the Economy and International Rela- on the system’s effectiveness. n 14 Meet the Press at Brookings in November focused on the changes ahead in Washington, as NBC’s David Gregory (center) moderates the first in a series of monthly panel discussions. Indyk spoke about the Middle East peace process and Saban Center Senior Fellow Suzanne Maloney talked about Iran. Later sessions analyzed the death of Osama bin Laden, the conflict in Afghanistan and cutting the defense

Photo by Paul Morigi Paul by Photo budget.

Following the NATO summit in November 2010, Senior Fellow Fiona Hill, director of the Center on the United States and Europe, introduces Ivo Daalder, the U.S. Ambassador to NATO, for an assessment of the meeting’s outcomes. Daalder was previously a Brookings Senior Fellow. Photo by Paul Morigi Paul by Photo

Zheng Bijian, chairman of the China Institute for Innovation and Development Strategy, speaks at the second annual U.S.-China Strategic Forum on Clean Energy Cooperation in January, coinciding with the state visit of Chinese President Hu Jintao. Brookings Chairman John L. Thornton (center) and then-U.S. Ambassador to China Jon Huntsman Jr. also addressed the forum. wang A l s al p h R Photo by by Photo 15 Governance Studies Urging reforms that make sense to both parties

16 p oulos Pano tavros S Photo by by Photo

New Jersey Governor Chris Christie addresses questions on education reform and teacher seniority at a Brookings event in . Senior Fellow Grover J. “Russ” Whitehurst (far left) offers his assessment of school districts grappling to improve student performance.

At the A. Alfred Taubman Forum on Improving Government Performance, Shelly H. Metzenbaum, an associate director at the White House Office of Management and Budget, details the government process.

< Jeff Bewkes, chairman and CEO of Time Warner, discusses new business models on the horizon for broadband a m Kittner and video with Darrell West, S vice president and director of Photo by by Photo Photo by Paul Morse Paul by Photo Governance Studies. 17 Governance Studies

ith new Senior Fellow Sarah Binder leader- wrote extensively this year on ship how to curtail use of the fili- in the buster, a practice that allows a House of minority of the Senate to block Represen- action on legislation and nomina- tativesW geared up early in 2011 tions. In a letter to members of to dismantle the achievements of the Senate, she argued that there the prior Congress, Governance is no empirical basis for believ- Studies scholars urged practical ing that the filibuster was part of reforms with no ideological col- the original design of the Senate, oration. From curtailing filibuster which was meant to be more of a abuse to expediting the process deliberative body. of filling executive branch posi- Focusing on the electoral sys-

tions, many of the team’s recom- tem, the amount of capital spent Morigi Paul by Photo mendations resonated strongly by Republicans and Democrats with both parties. to get re-elected received care- U.S. Supreme Court Justice Stephen G. Breyer discusses his “We are pleased to be making ful scrutiny from Senior Fellow new book, Making Our Democracy Work: A Judge’s View (Knopf, headway in the Senate, which is Thomas Mann, the W. Averell 2010), with Senior Fellow Benjamin Wittes. considering our input on the pres- Harriman Chair in American idential appointments process, Governance, who joined in on among other ideas,” said Darrell filing an amicus brief in support information, virtual education tion policy is a tangle of obfusca- West, vice president and director of the Arizona public financing and social networking. The cen- tion rather than a serious set of of Governance Studies. “This was law in the Supreme Court case ter expanded its scholar roster moral and legal decisions. a year to ramp up the essential McComish v. Bennett. with new Fellow Allan Friedman, Wittes also joined with Non- task of governance, as important Redistricting authorities began an expert in cybersecurity from resident Senior Fellow Robert M. decisions must be made on redis- redrawing their states’ legisla- Harvard­ University. Chesney and Legal Fellow Larson­ tricting, education and ways to tive district lines this year—a Senior Fellow Grover J. “Russ” Reynolds in May on a report implement new technology.” once-in-a-decade process. Mann, Whitehurst, director of the Brown that described how the Supreme As the new Congress con- with Nonresident Senior Fel- Center on Education Policy, had Court, in deciding that the vened, nearly 20 percent of key lows Michael McDonald and described education reform as a federal courts have jurisdiction executive branch positions were Micah Altman, unveiled new foundation of American recov- over habeas corpus cases from unfilled and some of President open source mapping software at ery and renewal. Whitehurst, Guantánamo, gave only the barest Obama’s early picks had already a Governance Studies event in who also holds the Herman and sketch of what such proceedings resigned. Senior Fellows William January, demonstrating how users George R. Brown Chair in Educa- should look like, leaving a raft of A. Galston and E.J. Dionne Jr. could create and submit their tion Studies, individually briefed questions open for the district argued that, to streamline the own plans to redistricting authori- senior political leadership in the and appellate court judges. Wittes president’s appointments process, ties. Such alternative public maps Office of Management and Bud- and Chesney also began work on the Senate would have to change can offer viable input to the for- get and the Council of Economic a new collaboration with Harvard some of its practices. Meeting mal redistricting process. Advisers on teacher quality. Law School on law and security. with senior staff in a Senate Broader governance chal- The killing of Osama bin Earlier this year, when working group on the confirma- lenges also required pragmatic Laden spurred both parties to grumbling over Supreme Court tions process, Galston, the Ezra recommendations on technol- again debate the extent to which Justices Anthony Scalia and K. Zilkha Chair in Governance ogy that could appeal across the enhanced interrogation tactics ­Clarence Thomas sitting on cases Studies, and Dionne suggested a political spectrum. The Center led to critical intelligence. Senior involving conservative groups to reduction of positions requiring for Technology Innovation has Fellow Benjamin Wittes launched which they both have ties led to Senate confirmation, a tiered worked to fill that space. Since its the “lawfare blog” focusing on calls for an ethics code for the system of background checks successful launch in June 2010, the hard national security choices high court, Visiting Fellow Russell and a single vetting form for the center has hosted 21 events in the war on terror. His book R. Wheeler wrote a paper on how all committees. Many of their and authored six papers, examin- Detention and Denial: The Case Congress should avoid cures that reforms were adopted, a key ing issues ranging from the legal for Candor after Guantánamo might be worse than the disease. achievement in a largely grid- and constitutional aspects of (Brookings Institution Press, What the court needs, Wheeler locked legislative body. technology to its use with health 2010) illustrated how U.S. deten- argued, is more transparency. n 18 Senior Fellow Sarah Binder moderates a panel on reforming institutions at the A. Alfred Taubman Forum. A lswang al p h a m Kittner S R Photo by by Photo Photo by by Photo

New York Times columnist David Brooks (right) talks with Senior Fellow E.J. Dionne Jr. about the cognitive revolution of the last 30 years that he has written about in The Social Animal: A Story of Love, Character and Achievement (Random House, 2011). Photo by Paul Morigi Paul by Photo

In an era of partisan polarization, former U.S. Secretary of Agriculture and member of Congress (right) explores what can be done to prevent a government shutdown or delay in increasing the debt ceiling with Senior Fellow Thomas Mann. 19 Metropolitan Policy Mapping the next economy

20 Photo by Sharon Farmer by Photo

How transit systems link workers to jobs in Metropolitan America is debated by practitioners during a panel with Senior Fellow Alan Berube. The other experts include Ponsella Hardaway, executive director of Metropolitan Organizing Strategy Enabling Strength (far right), Keith Parker, chief executive officer of VIA Transit Systems (far left), and Matthew R. Mahood, president and CEO of the Sacramento Metro Chamber of Commerce.

Senior Fellow Amy Liu, Metropolitan Policy’s co- director, participates in a Brookings Board of Trustees meeting with Board Chairman John L. Thornton.

< Bruce Katz, vice president and founding director of Metropolitan Policy, moderates a dialogue on federal responses to high gas prices and commuting with U.S. Transportation Secretary

Ray LaHood (center) and M origi U.S. Housing and Urban Development Secretary Shaun

Photo by Sharon Farmer by Photo Donovan (right). Paul by Photo 21 Metropolitan Policy

ational recovery the program’s policy director, from the Great described the clusters in a report Recession can co-authored with Katz, such - be gauged on graphic networks foster innovation the dashboards and strengthen entrepreneurship of the 100 larg- by boosting new enterprise forma- Nest U.S. metropolitan areas, tion, with a positive influence on which reveal where the recovery regional economic performance. is happening and where it is not. Shortly after President Obama In tracking those regions across announced his support for a a number of critical metrics, $50 billion plan for “Renewing

experts at the Metropolitan Policy and Expanding America’s Roads, M origi Program have begun to map a Railways and Runways,” the strategy for long-term recovery program’s Metropolitan Infra-

that is driven by exports, powered structure Initiative, led by Senior Paul by Photo by low carbon, fueled by innova- Fellow Robert Puentes, became tion and rich with opportunity. the go-to resource for reporters, Former Governor of Colorado Bill Ritter Jr. (left) offers the “Metro areas are the incu- metropolitan planning organiza- closing remarks at a forum to size up the clean economy and to bators for the next round of tions, advocates and policymak- assess the growth of national and regional jobs in green industries. domestic policy innovation,” said ers. As gas prices rose, Puentes Brookings Managing Director opened the event. Bruce Katz, vice president and and his team reviewed over 300 co-director of the Metro program transit systems in the nation’s 100 and the Adeline M. and Alfred largest metropolitan areas, reveal- I. Johnson Chair in Urban and ing the “missed opportunity” of ber that drew more than 600 of immigrants as being poorly Metropolitan Policy. “We used the transit systems that failed to con- people to Chicago. The summit educated, Senior Fellow Audrey past year to cement an affirmative nect workers to jobs. teamed the best practices in Singer detailed in a report released narrative for the next economy Metro, as it has for nearly 15 America with transformative les- in June that the high-skilled U.S. through regional economic and years, delved into regional trends. sons from overseas. In partner- immigrant population today out- demographic trend analyses.” A report on the budget deficits in ship with the London School of numbers the low-skilled popula- In July 2010, in response and the Intermountain Economics Cities Programme, tion. Also pulling from the 2010 to President Obama’s goal of West states released in January TIME magazine, the Alfred Census, Senior Fellow William doubling national exports over described serious cyclical budget ­Herrhausen Society and a com- Frey wrote a series of reports this the next five years, the program shortfalls and critical longer-term mittee of Chicago-based hosts, year on how the first decade of released a first-of-its-kind “Export budget imbalances. In the Great the summit featured the globe’s the 21st century represents a clear Nation” report that documented Lakes region, subsequent to a top business, philanthropic, aca- break from the 20th. Their find- the key role that metropolitan Metro summit on auto commu- demic and civic leaders. ings were featured in front-page exports can play to meet this goal. nities, the federal government Prior to the summit, the stories in . The findings have been cited in introduced an $800 million clean- Global MetroMonitor presented Looking ahead, the new speeches by Export-Import Bank up effort of 90 former General a first-ever look at the recent eco- Brookings-Rockefeller Project on President Fred Hochberg as well Motors sites. Spearheaded by nomic performance of 150 leading State and Metropolitan Innova- as by many regional business and Senior Fellow Amy Liu, the pro- global metropolitan areas, find- tion, which was funded by one civic leaders. gram’s co-director, work in the ing that the Great Recession has of the largest philanthropic gifts Committed to smart federal- Gulf Coast continued with the accelerated a in economic in Brookings’s history, has started ist policies, especially those that August 2010 release of the New growth toward emerging-market combing through fiscally respon- could be embraced by leaders Orleans Index five years after metro economies in Asia and sible state policies and practi- in both parties, Metro advanced Hurricane Katrina. Latin America, creating changes cal metropolitan-led solutions. proposals for regional innova- But more than just exploring and opportunities for metros in These will be used as examples to tion clusters at a major event those trends, Metro made major the United States and Europe. catapult leaders toward the next in September 2010 that were strides in building a network of The report and its lead author, economy. Working with California quickly embraced by the Obama leaders from across the coun- Senior Fellow Alan Berube, the Lieutenant Governor Gavin New- administration and Congress for try—and around the world—to program’s research director, gener- som, for instance, Metro is devel- their economy-boosting potential. advance those ideas. Metro held ated over 120 news stories. oping a new statewide economic As Senior Fellow Mark Muro, a major jobs summit in Decem- Despite public perception vision and strategy. n 22 M or IGI Photo by Paul Paul by Photo

Former Governor Edward Rendell, now a distinguished public fellow at Brookings, exchanges experiences with Michigan State University President Lou Anna K. Simon at a forum on state strategies that can help close budget deficits while also growing state economies and creating much-needed jobs.

Congresswoman Rosa DeLauro of Connecticut talks with Senior Fellow Robert Puentes about federal efforts to establish a National Infrastructure Development Bank, modeled after the European Investment Bank, which would leverage private-

sector dollars to invest M or s e in transportation, environmental, energy and telecommunications Photo by Paul Paul by Photo infrastructure projects.

M origi U.S. Department of Agriculture Secretary explains how rural communities will see more growth if they band together in

Photo by Paul Paul by Photo regional clusters. 23 Impact From Urgent to Enduring Challenges

arely have so many again ranked Brookings as the cited Brookings in several places 100 largest metropolitan areas in national and global No. 1 think tank in the world. and a Journal opinion the groundbreaking “State of Met- trends reverberated Fellows from the Brookings piece by three members of the ropolitan America.” The program’s at once across the Doha Center in Qatar, which commission referenced the specif- demographers continued to track United States and undertakes research on the socio- ics on how “Brookings Institution those trends this year, dispelling the world as they economic and geopolitical issues Martin Baily and antiquated notions by showing Rdid in 2011. The Middle East was facing the Muslim world, became Douglas Elliott describe the three how America’s immigrant popula- in upheaval, toppling dictatorships leading voices giving concrete, common narratives about the tion has grown more skilled, how and drawing the United States practical and urgent advice to financial crisis.” Baily and Elliott the post-war suburbs now largely into its third live military conflict. policymakers in the United States had argued in their narrative of the house aging baby boomers and A new Republican House of Rep- and in the region, as Arab nations financial crisis that everyone was where the black population has resentatives dramatically reshaped rebelled this spring in the name of at fault: Wall Street, the govern- migrated. Each finding elicited American politics. And an earth- democracy. Doha Center Director ment and our wider society. significant media attention— quake in Japan prompted a deadly Salman Shaikh, and his director Centers for Medicare and including front-page billing in The tsunami and triggered a nuclear of research Shadi Hamid, were a Medicaid Services Administrator Washington Post—and changed accident that shook faith in that steady and constant resource. Donald Berwick, concerned that the policy discussion. form of power, and crippled the The lack of opportunity that implementing health care reform Getting Brookings’s work into world’s third-largest economy. prompted the Middle East upris- was becoming too politicized, the hands of policymakers, the That set of challenges demon- ings remained a priority for other cited Mark McClellan, direc- press and the public is no small strates the importance of public Brookings scholars. Through their tor of the Engelberg Center for task. Each research program has policy research to bring critical work, longer-term investments in Health Care Reform, as the model invested considerably in outreach insights as well as to make rec- education remained on policymak- of pragmatism in discussions of and communications staffing. ommendations that materially ers’ agendas. Since the lack of accountable care organizations. And the central Communications shape how policymakers and other crucial education skills is a major A bipartisan group of senators office launched a new mobile thought leaders address these impediment to real progress, looked to Brookings for concrete website in July and followed up challenges. Brookings strives for Brookings’s Center for Universal recommendations on how to with iPhone, BlackBerry and impact in at least three ways: Education, led by Senior Fellow break institutional gridlock when it Android applications to make designing policy recommenda- Rebecca Winthrop, has identified came to staffing the government. Brookings research more accessi- tions, shaping critical debates key policy goals—including giv- When one-quarter of key policy- ble to reporters, policymakers and and setting the longer-term policy ing more girls an opportunity to making positions in government other thought leaders on the go. agenda. In this extraordinary year, learn—and is working with U.S. remained vacant 18 months into Brookings became the first think the Institution’s scholars contrib- Secretary of State Hillary Clinton, the Obama administration, Senior tank to launch across all three uted significant accomplishments other global leaders and partners Fellows E.J. Dionne Jr. and William platforms. That all contributed to in all three domains. worldwide through the new Global Galston from Governance Studies Brookings moving up to No. 1 in “The challenge for Brook- Compact on Learning drafted at detailed practical reforms to speed the rankings for best use of the ings always is how to impact Brookings. Senior Fellow Jacques nominations and confirmations and Internet and best use of the media fast-breaking events, while still van der Gaag, with Justin van explored new opportunities to break to communicate programs. investing in research that sets Fleet, have reached influential through the resistance that had With the global thrust of this the policy agenda in line with policymakers in the United States, greeted such proposals in the past. year’s major developments, Brook- longer-term forces,” said Brookings Pakistan and other international Bipartisan legislation, which passed ings has expanded its multilin- President Strobe Talbott. “What governments with a paper that the Senate in June, proposed several gual offerings on the website by was so rewarding about the last assessed the links between educa- reforms the Brookings scholars had producing expert bios and event year is that we weighed in on criti- tion and militancy in Pakistan. highlighted as necessary. pages in Spanish, Chinese and cal, urgent decision-making and How to achieve fiscal solvency Brookings research also sets Arabic. This new content triggered debates that policymakers wrestle after the Great Recession contin- the agenda for “new realities.” big spikes in page views. The com- with today, while also setting the ues to perplex U.S. policymakers. Last year, ahead of the 2010 munications team also created a agenda for the future.” When the Financial Crisis Inquiry Census, the Metropolitan Policy newsletter for the Doha Center in Perhaps for that reason, the Commission released its final Program documented the chang- both Arabic and English to better University of Pennsylvania’s Think report in January on the causes of ing of American society showcase Brookings’s work to a Tanks and Civil Societies Program the financial crisis, their findings through the lens of the nation’s Middle Eastern . n 24 “A week after President Obama took the oath of office, Alice Rivlin, budget chief to President , testified before a Congress that was about to consider sweeping stimulus legislation. In her remarks, Rivlin voiced her support for a swift and substantial federal intervention to prop up the sagging economy. But she offered lawmakers three warnings as well. … With these three warnings, Rivlin anticipated everything that the Obama White House and the Democratic Congress would do wrong over the next two years ... Now, nearly three years after Rivlin’s warnings went unheeded, President Obama has groped his way to an agenda that looks more like what she originally recom- mended. His speech to Congress last week suggested that he intends to campaign for re-election on what should have been the blueprint for his first four years in office: a short-term stimulus highlighted by a payroll tax cut, a medium-term push to overhaul the tax code and a plan for long-term entitlement reform.” —From the Ross Douthat column, “The President’s Do-Over,”

Photo by Paul Morigi Paul by Photo September 12, 2011

White House Senior Advisor walks with Brookings President Strobe Talbott (far right) and Brookings Chairman John L. Thornton in January, before giving a talk on how creating jobs is central to the administration’s goals and supporting exports is one way to achieve that goal. Photo by Paul Morigi Paul by Photo

Photo by Paul Morigi Paul by Photo Senator of Massachusetts, chairman of the Senate Foreign Relations Committee, previews a number of themes that House Budget Committee Chairman Paul Ryan of Wisconsin his party will use to try to regain the offensive in the months presents the Republican plans for tackling the budget deficit and ahead at a Brookings Board of Trustees dinner in May at the the growing national debt. Canadian Embassy. 25 Brookings Priorities From local to national to global

inding effective solu- speakers was , chair- tions to our complex man of the board and CEO of problems requires , who served research that cuts as a discussant on the topic of across traditional green energy and technology. approaches and inte- The January forum contrib- Fgrates local, national and global uted in a significant way to the concerns. Brookings does this by national discourse. Just weeks coordinating efforts around four later, Immelt was appointed to priority areas in which the Insti- head the President’s Council tution has depth and breadth on Jobs and Competitiveness. and that also correspond to the Key themes on exports and a major issues our political leaders more efficient government dis- must address. cussed at the forum also made “All-Brookings’’ priorities— their way into the 2011 State growth through innovation, of the Union address delivered opportunity and well-being, the next month as well as into energy and climate and global U.S. Representative Paul Ryan’s change—are driven by teams of Republican response. interdisciplinary experts. “Brookings is uniquely capable “One of the most exciting of creating a forum … where things at Brookings during the partisan political differences and

past year was this cross-program commercial self-interest can both Morse Paul by Photo collaboration and its impact,” said be set aside in the pursuit of the Brookings Managing Director common good. This combination Trustee Ann Fudge greets General Electric Chairman and CEO William Antholis. of research, private dialogue, pub- Jeff Immelt at a forum on growth through innovation at Brookings With the U.S. economy still lic discussion and erudite publi- in January. Fudge, as a member of the President’s Commission reeling from a deep recession, cations is our hallmark,” Trustee on Fiscal Responsibility and Reform, and Immelt, tapped to head Brookings took major strides Glenn Hutchins wrote in the the President’s Council on Jobs and Competitiveness, are both toward building a long-term preface of the culminating growth taking the pulse of the nation’s recovery. Senior Fellow Michael strategy for sustainable economic through innovation strategy paper Greenstone (far right), director of the Hamilton Project, prepares growth. As the new Congress released in May. to speak on the future of green energy. began its work in January, Brook- The productive collaboration ings hosted a major growth of Brookings scholars represent- through innovation conference ing three different research pro- ies—forged the strategies defined change. Nowhere was that more on issues facing the economy, grams—Senior Fellow Martin in the May paper. evident than during the Arab how innovative businesses Neil Baily, director of the Initia- Just as the aftershocks of the awakening in the Middle East and can contribute to economic tive on Business and Public Policy Great Recession are reshaping North Africa. Foreign Policy and growth and job creation. The in Economic Studies; Bruce Katz, economic policy, reverberation Global Economy and Development forum brought together CEOs vice president and co-director of is felt in foreign policy. Setting scholars provided the leading edge of leading U.S. business with the Metropolitan Policy Program; that as another priority, Brookings on this response—especially Brook- key administration officials and and Darrell West, vice president experts have collectively rallied to ings’s team from the Saban Center Brookings experts. Among the and director of Governance Stud- more effectively manage global and its outpost in Doha, Qatar. 26 Executive Brookings Education n its second year, Brookings Executive Education combined Brookings’s policy and research expertise with the business acu- men of Washington University in Priorities St. Louis to develop the Master Iof Science in Leadership program. This degree is one of only a few of its kind offered in the United States. Jackson A. Nickerson, director of Photo by Paul Morigi Paul by Photo Brookings Executive Education and a Brookings this year focused low Katherine Sierra and Nonresi- professor of organization and strategy Senator much attention on emerging pow- dent Fellow Nathan Hultman in at the Olin Business School, noted that of (right) ers such as China and India and the Global program each offered the MSL degree is designed to develop discusses how to bring the significance of their increasing policy solutions to move the stalled government leaders based on the Exec- our debt and deficits global influence on the United international climate negotiation utive Core Qualifications. “The new under control while States. Kenneth Lieberthal, direc- process forward. Senior Fellow degree is accredited and is reflective of investing in the recovery, tor of the John L. Thornton China Mark Muro in Metropolitan Policy Robert S. Brookings’s goal to assist in restoring America’s Center, explored U.S.-China argued for a renewed commitment the development of government lead- economic health and clean energy cooperation. Stephen to research and development in ers,” he said. strengthening the nation’s Cohen, a senior fellow in Foreign clean energy technologies. Ted Brookings Executive Education has global competitiveness. Policy, focused on the impor- Gayer, co-director ­of Economic expanded its curriculum to 39 courses, Trustee Glenn tance of India in regional politics. Studies, explored the challenge with a broader global reach through a Hutchins moderates Their work was complemented and the promise of a carbon tax series of videoconferences featuring the conversation at a by the Institution’s broad range of and Adele Morris, also of Eco- Brookings scholars. The new “Criti- Brookings lunch in May. regional centers and initiatives. nomic Studies, examined the con- cal Issues” series includes an Inside At the heart of so many sequences of various climate policy the Middle East course that allows domestic and international crises options to the U.S. economy. participants to hear directly from poli- is the struggle for opportunity In May, the Hamilton Proj- From the local to the cymakers, Middle East ambassadors and well-being. As with growth ect’s Michael Greenstone and national to the global, and Brookings experts on various topics, through innovation, a major pub- Adam Looney, both senior fellows, , including the Arab awakening and the lic event served as the impetus launched research that argued for the president of the Israel-Palestine conflict. for scholars from three different a level playing field for all energy Bill and Melinda Gates A new course on politics and policy- programs—Alan Berube, senior sources, with prices reflecting Foundation’s Global making is designed to give government fellow and research director of not just the cost of production, Development program, executives and managers an in-depth the Metropolitan Policy Program; but also the social costs, such speaks as the budget knowledge of high-level decision- Ron Haskins, senior fellow in Eco- as adverse health impacts and season gets under way in making. Global Leadership was added nomic Studies; and Homi Kharas, climate change. In Governance February about creating to the curriculum to contextualize senior fellow and deputy director Studies, William Antholis contin- opportunity and upward necessary leadership skills for the 21st of Global Economy and Develop- ued to write on the domestic poli- mobility in the United century. This two-day program provides ment—to frame this Brookings tics of energy. n States and abroad. diverse perspectives on being responsive priority area with their overview to new dynamics. of a 21st century agenda for cre- The Legis Congressional Fellow-

ating opportunity and upward A lswang ships remain a core component of the

mobility. The paper was released al p h program, putting government managers at a February event that featured R and senior executives into the offices of Sylvia Mathews Burwell, president members of Congress. Inside Congress of the Bill and Melinda Gates by Photo and Inside Washington also remain Foundation’s Global Development educational cornerstones. Understand- program. ing congressional operations and federal Energy and climate change decision-making reflect the expertise is another major cross-program that Brookings has traditionally con- strength at Brookings. Senior Fel- veyed to future leaders. n 27 Support for Brookings Generosity and foresight underscore world-class role

28 < Trustee Benjamin R. Jacobs, founder and managing partner of the JBG Companies, participates this year at the Metropolitan Policy Program forum on transit and jobs, heralding the release of the program’s first-of-its-kind report that showed how transit systems can connect workers to jobs and where there are missed

Photo by Paul Morigi Paul by Photo opportunities. < Trustees Alfred Engelberg (left) and Leonard Schaeffer share a moment to reflect on the achievements of the Engelberg Center for Health Care Reform founded nearly five years ago with the appointment of Mark McClellan as the center’s director and the Leonard D. Schaeffer Chair in Health Policy Studies.

< The Brookings Doha Center in Qatar was a vibrant activity center through the Arab awakening this year. The center’s policy discussion A lswang rookings B rookings Doha Center community includes Qatar- al p h

based business leaders, R diplomats, religious leaders, Photo by the by Photo academics and the media. by Photo 29 Support for Brookings

n early focus on ing talk on what to expect in the America’s mid- wake of the midterm elections. term elections in By March, attention had turned November 2010 to the political and economic con- quickly broadened sequences of the Arab awakening. with the global Senators John McCain of Arizona Aturmoil that awoke the Middle and Joseph Lieberman of Connect- East and North Africa to new icut, recently back from the Middle governance, reframed the terror- East, discussed with the Board ism debate and further unsettled of Trustees what they referred to economies from the United States as the “crimes against humanity to Greece, Italy and Japan. Brook- occurring in Libya.” ings supporters directly engaged In May 2010, the Gulf of with scholars and their ongoing Mexico oil spill had dominated

research in real time. Within the conversation at the joint meet- Morigi Paul by Photo Brookings community, ideas are ing of the International Advi- shared to enrich the research. sory Council and the Board of At the sixth annual meeting of the Brookings International Brookings’s role as a truly Trustees. This year, it was the Advisory Council, Co-Chairs Antoine van Agtmael (right) global think tank proved particu- Fukushima nuclear plant disaster, and Paul Desmarais urge the group to help Brookings experts larly timely as this year’s historic which highlighted concerns about understand how America’s troubled economy looks from the moments called for on-the-spot future energy sources. Brook- standpoint of other nations. analyses from New York, Beijing, ings Managing Director William Doha, Athens, Tokyo and more. Antholis moderated a conversation offered his thoughts on the insta- Beijing or New Delhi and their With experts interacting as the featuring members of the Inter- bility of the global markets to dynamic economies will play out action unfolded, Brookings under- national Advisory Council—each a New York audience and Vice in the decades ahead. scored its world-class role. None a world-class leader in a different President of Global Economy and of that could have happened with- energy sector. Development Kemal Dervis¸ gave Foundation Support out the generosity and foresight of The security challenges in the an overview of structural changes Private foundations made key its donors. Middle East, exacerbated by the to the global economy that helped investments in Brookings’s work in After the election ushered in killing of Osama bin Laden, were Brookings Council members antic- 2011, with more than $37 million a new era of divided government, particularly vexing as the seismic ipate shifting marketplace realities. in new commitments across the the Board of Trustees meeting stun of the Great Recession con- Senior Fellow Isabel Sawhill spoke Institution for research, conven- offered insights on its impact on tinued to sting. The U.S. budget at a New York Council breakfast ing and outreach. These critical such administration priorities as deficit and growing national debt about governance in a time of fis- resources enabled Brookings education and the federal budget. were ticking time bombs during cal crisis, foreshadowing the sum- experts to pursue a wide range of ­, a member of the the May meetings. Office of Man- mer’s legislative stalemate over the intensive study on the difficult White House Council of Eco- agement and Budget Director Jack debt limit. challenges facing the world. nomic Advisers, joined Senior Fel- Lew and House Budget Chairman With global matters frequently The Rockefeller Founda- low Grover J. “Russ” Whitehurst,­ Paul Ryan of Wisconsin, two key coming up during the May discus- tion, one of Brookings’s most director of Brookings’s Brown negotiators in the U.S. fiscal bat- sions, Brookings President Strobe longstanding and generous Center on Education Policy, to tles, spoke to participants in back- Talbott and Martin Indyk, vice donors, jointly announced with assess the progress of President to-back meetings. Rep. Ryan con- president and director of Foreign the Metro program in December Obama’s goals for states to encour- tended that his Republican budget Policy, offered updates on Brook- 2010 the launch of the Brookings- age students to “race to the top.” plan had been distorted, particu- ings’s plans for enhanced work Rockefeller Project on State and ,­ former chairman larly on the reform of Medicare. in China and India. The John L. Metropolitan Innovation, sup- of the Federal Reserve through Lew expressed doubt over any Thornton China Center is pre- ported by a $10 million grant both Republican and Democratic decisions on Medicare before paring for its second five years from Rockefeller. As a major new administrations, was part of eco- resolving the debt-limit deadline, of operation in Washington and Brookings policy research and nomic conversations. At lunch, so suggested that the focus should on the campus of Tsinghua Uni- outreach effort, the grant enables two former White House chiefs be on areas where Democrats and versity in Beijing. Establishing a top scholars in the field to develop of staff—Kenneth Duberstein (for Republicans agree. similar capacity on India is being and catalyze innovative state and ) and At other events that spring, considered. More than a third of metropolitan reform in support (for Bill Clinton)—led a conclud- Senior Fellow Eswar Prasad humanity is already governed from of a productive, sustainable and 30 Trustee David Rubenstein (right), founder of the Carlyle Group, goes over the agenda for a Brookings forum on the Arab awakening with moderator David Gregory (left), anchor of NBC’s “Meet the Press,” and Martin Indyk, vice president and director of Foreign Policy at Brookings. Rubenstein offered the welcoming remarks at the event in New York City.

of security challenges facing the nation and the world. This chal- lenge is particularly acute because of pressing financial issues at home and reduced U.S. influ- p hers c hler Photogra

H e ence abroad. The work includes designing a new architecture for

Photo by by Photo global governance, managing state- based challenges to the emerging on income distri- makers experts and NGO lead- global order and examining new bution, and sup- ers annually in Aspen, Colorado, areas of competition and friction. ported the Africa to discuss innovative ideas and Additional support from the Carn- Growth Initiative advance groundbreaking initiatives egie Corporation enables Foreign in the Global to alleviate global poverty. Sylvia Policy to re-establish its post-doc- Economy and Mathews Burwell, president of the toral fellowship program to help Development pro- foundation’s Global Development develop the next generation of gram, providing a program, spoke at a Brookings scholars in these critical areas. major grant for the opportunity and well-being event first annual Africa in February on innovations for Corporate Support Growth Forum. delivering aid more efficiently. The Microsoft Corporation The Africa The Gates Foundation sup- continued its major support for Growth Initiative ported the Social Genome Project Brookings in 2011 with a generous also received major in Economic Studies with a $1 contribution that included finan- funding from the million grant in 2011. By develop- cial resources and an in-kind gift Bill and Melinda ing a new microsimulation model of software, providing experts with Gates Founda- of social mobility, scholars will important tools to conduct their tion, which has create a powerful tool for under- research. As the Institution has committed $12 standing how interventions at vari- grown in size and scope, opening million to support ous stages of life can contribute to international offices in China and Brookings’s work the goal of more people achieving Doha, the demand for a robust on Africa’s develop- “middle class by middle age.” The technological infrastructure to

Photo by Paul Morigi Paul by Photo ment opportunities foundation also made a grant to support increased scholar activity and challenges. the Brown Center on Education has increased greatly, making the Pamela Passman, corporate vice president The initiative fos- Policy in Governance Studies for gift extremely timely. and deputy general counsel for Microsoft’s ters high-quality crucial work on teacher evalua- Microsoft’s leadership is also Global Corporate Affairs function, at a research with think tions that can better identify high- engaged with the Metropolitan December event. tank partners in performing teachers. Policy, Governance Studies and Africa and seeks The Carnegie Corporation Foreign Policy programs. Company inclusive economy. Rockefeller to increase the voice of the Afri- of New York continues to be a leaders are contributing substan- also supported the program’s ongo- can policy researchers in national major funder of Foreign Policy, tive technology sector information ing work on infrastructure and and international policy debates. with a grant toward the program’s to these research programs and walkable urban places. The Gates Foundation also made work on developing new U.S. pol- engaging with leading experts on Rockefeller provided critical a $1 million grant in support icy for the emerging global order. a range of policy issues. In-depth resources for the Economic Stud- of the annual Brookings Blum This work comprises a series of interaction with the corporate ies program’s work on the effects Roundtable on Global Poverty, projects designed to help policy­ community provides an important of health care reform legislation which convenes leading policy- makers manage the complex set perspective to the Institution’s 31 Charles Sirois, chairman Cheryl Cohen Effron Heads and CEO of Telesystem Ltd. (right), a Canadian Development Committee company and a member of the International Advisory Council, discusses the ramifications of the global economy on business as Trustee Phil Knight, co-founder and Chairman of Nike, Inc., listens. Photo by Paul Morigi Paul by Photo endeavors and helps ground Brookings experts’ research in the practical issues facing the private sector. AT&T’s engagement with Brookings continues to grow, with generous financial support and substantive involvement. Jim Cicconi, AT&T’s senior execu- tive vice president for external Photo by Paul Morigi Paul by Photo and legislative affairs, has been a Cheryl Cohen Effron takes the helm as chair of the Board of Trustees’ Development Committee. Trustee of Brookings since 2000. Brookings was pleased to wel- come AT&T Chairman and CEO heryl Cohen Effron succeeded Beatrice Welters­ dedicated herself to pro bono work and urban issues Randall Stephenson­ as a panelist as chair of the Development Committee of and she serves on a number of non-profit boards. at the January 2011 forum on Cthe Board of Trustees in 2010, when Welters At Brookings, Effron has brought her experience growth through innovation. He was confirmed as U.S. Ambassador to Trinidad and and acumen to the Metropolitan Leadership Council, joined other communications and Tobago. As chair of this committee, she works to the national network of philanthropies, corporations technology executives to discuss support Brookings’s fundraising efforts with strategic and individuals that serves as the “go-to” advisory government policies that would oversight and counsel. Effron and her husband, Blair, group for Metropolitan Policy Program Vice President facilitate economic growth in are long-standing supporters of Brookings’s work, with Bruce Katz. their industries. interests that span the Institution’s agenda. The Effrons are also supporters of the Hamilton A longtime New York City real estate developer, Project at Brookings, which seeks to advance Amer- Program Leadership Committees Effron specialized in revitalizing warehouses into multi- ica’s promise of opportunity, prosperity and growth Brookings established program tenant, industry-clustered manufacturing centers that through a strategy that fosters economic growth leadership committees to cre- resulted in the creation of thousands of jobs. These and broad participation in that growth, enhances ate opportunities for high-level redevelopment efforts included creating public-private individual economic security and embraces a role engagement between philan- partnerships in workforce training, childcare and art for effective government in making needed public thropic, business and commu- to enhance the quality of life in the city. She has since investments. nity leaders and the research 32 programs. The committees meet periodically throughout the year Welcoming for a program of scholar presenta- tions and interactive discussions Board of on pressing policy topics. Mem- bers share strategic advice on new Trustees areas of research and leverage their networks to increase the vis- Vice Chairs ibility and impact of Brookings’s A lswang and New work. By providing critical finan- al p h cial support to the programs, they R Trustees help enable scholars to respond quickly to breaking events with- by Photo his year Brookings elected out waiting for other outside Trustees Glenn Hutchins, resources. In 2011, leadership Trustee Haim Saban and Vice President Martin Indyk, TSuzanne Nora Johnson and committee members made nearly founding director of the Saban Center at Brookings, confer during David M. Rubenstein to serve as $17 million in new funding com- day two of the seventh annual Saban Forum. Vice Chairs of the Board of Trust- mitments across the Institution. ees. In this capacity, they will use Recent meetings provided take advantage of opportunities Director’s Fund in Foreign Policy, their knowledge and involvement members with the opportunity to without waiting for additional and Cheryl Cohen Effron, James in a broad range of Brookings be briefed by high-level admin- outside funding. At a time when Johnson and Kenneth Jacobs research activities to offer valu- istration representatives and the pace of events seems to be contributed toward the Executive able insight on the direction of the Brookings scholars on events in accelerating along with the scope Office Fund. Institution, help engage audiences the Middle East, U.S.-China rela- of the challenges, the director’s unfamiliar with Brookings’s mis- tions and the policy implications funds ensure that Brookings can Kimberly Churches Named Vice sion and provide leadership of the of the mid-term elections and continue to provide timely analy- President for Development Board. economic recession. sis and recommendations to poli- Kimberly Churches was named Brookings has elected six new cymakers and the media. this summer to replace Betsy Trustees to the Board. They join a Directors’ Funds Steve Denning and Kenneth Biern as Brookings’s vice presi- distinguished group of the coun- Several Brookings Trustees have Jacobs established the Global dent for development. Brookings try’s foremost business executives, established director’s funds in Economy and Development President Strobe Talbott called academics, community leaders, and the research programs and the Director’s Fund; Paul Desmarais this new addition to the executive former government officials. The Executive Office. These flex- (who also co-chairs the Brookings team “a terrific hire at a crucial Board, which meets three times ible resources are available for International Advisory Council) time in Brookings’s march toward a year, helps govern the business President Strobe Talbott and established the Metropolitan its centenary in 2016.” affairs of the Institution, approves the program vice presidents to Policy Program Director’s Fund; Churches had joined the Uni- the fields of scholarly investigation respond to breaking events and Benjamin Jacobs established the versity of Denver as senior direc- and safeguards the independence tor of development in 2008; was of the Institution’s work. Brookings Trustee Suzanne Nora Johnson engages in conversation at the promoted to assistant vice chan- welcomes its newest members to joint IAC and Trustees meeting in May, joined by IAC member cellor, and became the associate the Board of Trustees: Andrónico Luksic, vice-chairman of the Banco de Chile and co- vice chancellor in February 2011. chair of the on Latin America. In her role at the University of • Robert M. Bass Denver, she directed and man- President, Keystone, Inc. aged the centralized major gifts • Howard Cox teams and the donor relations/ Advisory Partner, Greylock stewardship team. Along with the Partners Vice Chancellor, Churches led • Ellen Futter the Ascend comprehensive cam- President, American Museum paign for the University, working of Natural History closely with the board of trustees • Rajan Mittal and senior leadership at the Uni- Vice Chairman and Managing versity. Churches successfully Director, Bharti Enterprises completed the $15 million School • Nigel Morris of Art and Art History compre- Managing Partner, QED hensive campaign in 18 months, Investors and then led the Performing Arts • James Murren Campaign and efforts to support Chairman and Chief Executive the Holocaust Awareness Social Officer, MGM Resorts

Photo by Paul Morigi Paul by Photo Action Site and programs. n International 33 BOARD OF TRUSTEES

John L. Thornton Ann M. Fudge David F. Swensen Kenneth W. Dam Donald F. McHenry Chair of the Board Former Chairman and CEO Chief Investment Officer Max Pam Professor of Distinguished Professor in the The Brookings Institution Young & Rubicam Brands American & Foreign Law Practice of Diplomacy and University of Chicago Law School International Affairs Glenn Hutchins Ellen Futter Lynn Thoman School of Foreign Service Vice Chair of the Board President Co-President Vishakha N. Desai Ph.D. Georgetown University The Brookings Institution American Museum of Natural History Leon Lowenstein Foundation President and CEO Co-Founder and Co-CEO The Asia Society Arjay Miller Silver Lake Jeffrey W. Greenberg Larry D. Thompson Dean Emeritus Chairman and CEO John A. Sibley Professor in Mario Draghi Stanford Graduate School of Business Suzanne Nora Johnson Aquiline Holdings LLC Corporate and Business Law Governor Vice Chair of the Board University of Georgia Law School Bank of Italy Mario M. Morino The Brookings Institution Brian L. Greenspun Co-Founder and Chairman Former Vice Chairman Chairman and CEO Michael L. Tipsord Kenneth M. Duberstein Venture Philanthropy Partners The Group, Inc. The Greenspun Corporation Vice Chairman and Chief Operating Chairman and CEO Officer The Duberstein Group, Inc. Maconda Brown O’Connor Ph.D. David M. Rubenstein Shirley Ann Jackson Ph.D. Insurance Companies Trustee Vice Chair of the Board President Charles W. Duncan Jr. The Brown Foundation, Inc. The Brookings Institution Rensselaer Polytechnic Institute Andrew H. Tisch Chairman Co-Chairman of the Board Duncan Interests William A. Owens Co-Founder and Managing Director Benjamin R. Jacobs The Carlyle Group Loews Corporation Chairman Senior Advisor and Founder Lawrence K. Fish AEA Investors Asia Strobe Talbott The JBG Companies Antoine W. van Agtmael Former Chairman Chairman and co-CIO RBS America & Frank H. Pearl President Kenneth M. Jacobs The Brookings Institution Ashmore EMM, LLC Citizens Financial Group, Inc. Chairman and CEO Chairman and CEO Perseus, LLC Robert J. Abernethy Lazard Frères & Co. LLC John W. Wilhelm Cyrus F. Freidheim Jr. President Former President and CEO Samuel Pisar Ph.D. President Richard A. Kimball Jr. American Standard Development UNITE HERE Sun-Times Media Group, Inc. International Lawyer Managing Director and Co-Head of New York and Paris Co., Inc. Global Healthcare Investment Tracy R. Wolstencroft David Friend Liaquat Ahamed Banking and Capital Markets Advisory Director President and CEO Charles W. Robinson Former Chief Executive Officer Goldman, Sachs & Co. Chairman, Clean Technology and Carbonite, Inc. President Fischer Francis Trees and Watts, Inc. Renewables Robinson & Associates, Inc., Nemir Kirdar Goldman Sachs Robert D. Haas CBTF Co., and M Ship Co. Dominic Barton Founder, Executive Chairman Chairman of the Board Global Managing Director and CEO Daniel Yergin Levi Strauss & Co. James D. Robinson III McKinsey & Company, Inc. Investcorp Chairman General Partner and Co-Founder Cambridge Energy Research Associates Lee H. Hamilton RRE Ventures Robert M. Bass Klaus Kleinfeld Director President Chairman and Chief Executive Officer Daniel B. Zwirn The Center on Congress Warren B. Rudman Keystone Group, L.P. , Inc. Managing Partner Indiana University Co-Chair Zwirn Family Interests, LLC Albright Stonebridge Group Richard C. Blum Philip H. Knight William A. Haseltine Ph.D. Chairman and President Chairman President B. Francis Saul II Blum Capital Partners, LP Nike, Inc. HONORARY TRUSTEES The Haseltine Foundation President and Chairman Chairman B.F. Saul Company Crandall Bowles Rajan Mittal Elizabeth E. Bailey Haseltine Global Health, LLC Chairman Vice Chairman and Managing Director Professor Emerita, John C. Hower Ralph S. Saul Springs Industries, Inc. Bharti Enterprises Professor of Business and Teresa Heinz Former Chairman Public Policy Chairman CIGNA Corporation Paul L. Cejas Nigel Morris Heinz Family Philanthropies Managing Partner The Wharton School Michael P. Schulhof Chairman University of Pennsylvania PLC Investment, Inc. QED Investors F. Warren Hellman Chairman and CEO Chairman Global Technology Investments James Murren Zoë Baird Budinger Abby Joseph Cohen President Hellman and Friedman President, Global Markets Institute Chairman and CEO John C. Whitehead, chair emeritus MGM Resorts International The Markle Foundation Joel Z. Hyatt and Senior Investment Strategist Stephen M. Wolf Goldman, Sachs & Co. Rex J. Bates Vice Chairman Thomas C. Ramey Current Media, LLC Chairman Howard E. Cox Former Chairman Alan R. Batkin RR Donnelly and Sons Company Liberty International, Liberty Mutual James A. Johnson, chair emeritus Advisory Partner Vice Chairman Ezra K. Zilkha Greylock Partners Group Eton Park Capital Management Vice Chairman Perseus, LLC President Alan M. Dachs Edgar Rios Geoffrey T. Boisi Zilkha & Sons, Inc. President and CEO Co-Founder and Managing Director Chairman and CEO Ann Dibble Jordan Wenzi Capital Partners Fremont Group Roundtable Investment Partners LLC Vernon E. Jordan Jr. Steven A. Denning James S. Rubin Louis W. Cabot, chair emeritus Senior Managing Director Chairman Partner Chairman Lazard Frères & Co. LLC General Atlantic LLC BC Partners Cabot-Wellington LLC Of Counsel Akin Gump Strauss Hauer & Feld, Paul Desmarais Jr. Haim Saban James W. Cicconi LLP Chairman and Co-CEO Chairman and CEO Senior Executive Vice President– Power Corporation of Canada Saban Capital Group, Inc. External and Legislative Affairs Herbert M. Kaplan AT&T Chairman and CEO Cheryl Cohen Effron Victoria P. Sant Warren Equities President William T. Coleman Jr. Alfred B. Engelberg The Summit Foundation Senior Partner and The Senior Breene M. Kerr Trustee Counselor President The Engelberg Foundation Leonard D. Schaeffer Brookside Company Chairman O’Melveny & Myers LLP Bart Friedman Surgical Care Affiliates Arthur B. Culvahouse Jr. Senior Partner Chair Cahill Gordon & Reindel O’Melveny & Myers LLP 34 Honor Roll of C ontributors (July 1, 2010–June 30, 2011)

$1,000,000 and Above Blair W. Effron and Cheryl Cohen Paul Desmarais, Jr. Thomas C. Ramey and Perrin Ireland Anonymous Effron Hanzade Do˘gan Boyner, Do˘gan Reliance Industries Limited Alfred and Gail Engelberg Health Care Conference Group of Companies Rio Tinto Ford Foundation Administrators, LLC John Elkann Charles W. Robinson Bill & Melinda Gates Foundation International Fund for Agricultural FirstFocus Jacob Rothschild and the Saffery Glenn H. Hutchins Development David and Marianna Fisher Champness Trust Corporation The Lincy Foundation Kenneth M. Jacobs Embassy of France as Trustee of the Arrow The John D. & Catherine T. The Joyce Foundation General Electric Company Charitable Trust MacArthur Foundation Joung-Hoon Lee, Samchang Georgetown University Robert E. Rubin Microsoft Corporation Enterprise GlaxoSmithKline Sabanci University Government of the State of Qatar The Markle Foundation Goldman Sachs Victoria and Roger Sant The Rockefeller Foundation Office of Development Effectiveness Google Inc. Schlosstein-Hartley Family Haim and Cheryl Saban of the Australian Agency for Pablo González Foundation John L. Thornton International Development The George Gund Foundation Eric S. Schwartz David M. Rubenstein Hanwha Group Shell Oil Company $500,000–$999,999 Eric E. Schmidt The F.B. Heron Foundation Charles Sirois Anonymous State Farm Mutual Automobile Hewlett- Company Clarice Smith Richard C. Blum and the Honorable Insurance Company Hitachi, Ltd. The Summit Foundation Dianne Feinstein Taipei Economic and Cultural HSBC Swedish Ministry for Foreign Affairs Annie E. Casey Foundation Representative Office Hudson Institute Government of Switzerland Steve and Roberta Denning U.S. Agency for International The IBM International Foundation Target Exxon Mobil Corporation Development Japan International Cooperation Lynn B. Thoman Roger Hertog U.S. Department of Energy Agency The Andrew H. and Ann R. Tisch The William and Flora Hewlett U.S. Department of Health and Johns Hopkins University Foundation Foundation Human Services Richard L. Kauffman Gail and Benjamin Jacobs Wellpoint Foundation Samer Khoury Turkish Industry and Business The Robert Wood Johnson Ezra K. Zilkha Richard A. Kimball, Jr. Association TUSIAD Foundation Nemir Kirdar Unbound Philanthropy The Kresge Foundation $100,000–$249,999 The Korea International Cooperation University of Liberty Mutual Group Anonymous (3) Agency Antoine van Agtmael Royal Ministry of Robert John Abernethy Lazard Frères & Co. LLC Marcus Wallenberg, Skandinaviska Foreign Affairs, Norway Paul Achleitner The Foundation Enskilda Banken Silatech Aetna Inc. Andrónico Luksic The Walton Family Foundation, Inc. Alfred P. Sloan Foundation Mohammed Mahfoodh Al Ardhi Lumina Foundation for Education John Hazen White, Jr. Surdna Foundation, Inc. Alcoa Foundation Mars, Incorporated Tracy R. Wolstencroft UnitedHealth Group, Inc. Amgen, Inc. The MasterCard Foundation The World Bank The Urban Institute AREVA Mindich Family Foundation U.S. Food and Drug Administration Delphine Arnault The MITRE Corporation $50,000–$99,999 James D. Wolfensohn AT&T Services, Inc. Charles Stewart Mott Foundation Anonymous (2) Dominic Barton The NASDAQ OMX Group, Inc. ACE Charitable Foundation Roger Agnelli $250,000–$499,999 Daniel Berger National Science Foundation All Nippon Airways Anonymous (2) Howard P. Berkowitz The New York Community Trust- Allen & Company LLC Anonymous Donor at the Schwab BP Gallogly Strickler Family Fund Charitable Fund Paul L. Cejas News Corporation Altman/Kazickas Foundation Bank of America Cheniere Energy, Inc. Nomura Foundation The American Board of Medical Boston College Chevron Novartis Corporation U.S.A. Specialties The Brown Foundation, Inc. of Tae-won Chey Open Society Foundations Association for Corporate Growth AW Investor Houston Chicago Community Trust Sheldon Pang Rahul Bajaj Richard Perry Carnegie Corporation of New York Timothy C. Collins Banco Davivienda The Nathan Cummings Foundation Comcast Corporation Victor Pinchuk Foundation Alan R. and Jane Batkin Alan and Lauren Dachs Howard E. Cox Ploughshares Fund Battelle Department for International Daimler PricewaterhouseCoopers LLP Geoffrey T. Boisi and the Boisi Development, United Kingdom Dartmouth Institute Pritzker Traubert Family Foundation Family Foundation George A. David Prospect Foundation Heinrich Böll Foundation 35 Honor Roll of C ontributors

Bruhn-Morris Family Foundation The Honorable Kenneth W. Dam and Verbundnetz Gas AG Crandall C. Bowles National Bureau of Economic Marcia W. Dam Visa Inc. The Andrea and Charles Bronfman Research, Inc. Enzo Viscusi, EniSpA Fund at Brandeis University National Institutes of Health EDF Inc. Mallory Walker William D. Budinger, The Rodel Embassy of the Netherlands European Commission Seymour and Kate Weingarten Foundations The Olayan Group European Council on Foreign Westinghouse Electric Corporation CAF Frank H. Pearl Relations Daniel H. Yergin and Angela Stent The Morris and Gwendolyn Cafritz PepsiCo, Inc. R. S. Evans Adam and Ariel Zurofsky Foundation John G. Popp Edith B. Everett Canadian Department of Foreign Joseph L. Rice III Finmeccanica SpA $10,000–$24,999 Affairs and International Trade Edgar and Lillian Rios First Solar Anonymous (3) China-United States Exchange James D. Robinson III Lawrence K. Fish Administrative Conference of the Foundation Wilbur Ross The Lee and Juliet Folger Fund United States James Rubin Mitzi and Cyrus F. Freidheim Jr. Meena and Liaquat Ahamed City of London Corporation Rutgers, The State University of General Atlantic Service Company, American Association for Cancer The Civic Council of Greater Kansas New Jersey LLC Research City Russell Sage Foundation General Dynamics American Society of Clinical The Coca-Cola Company SAP America, Inc. Miles Gilburne and Nina Zolt Oncology Abby Joseph Cohen Jonathan Schaffzin Jeffrey W. Greenberg Amsterdam International Institute for Ronald Cohen The Schroder Foundation Development The Council for the United States Beatrice Snyder Foundation Hudson Clean Energy Partners, L.P. The Loreen Arbus Foundation and Italy Specialized Association Services Frank F. Islam Elizabeth E. Bailey The Crown Family Standard Chartered Bank Henry M. Jackson Foundation Liza Bailey StatoilHydro Japan Bank for International The Bank of Tokyo-Mitsubishi UFJ Dow Corning Kihak Sung, Youngone Corporation Cooperation Joanne Barker Duke Energy Corporation The Switch SuperNAPs Johnson & Johnson Anders Brag Deborah L. Duncan T-Mobile USA Betsy Karel Bristol-Myers Squibb Foundation Jay Farrar Tata Sons Ltd. Howard and Kate Kilguss Roberto Buaron Fidelity Investments A. Alfred Taubman Peter and Elbrun Kimmelman Carter Cafritz Julie Finley Time Warner Robert E. Marks Canada Pension Plan Investment Bart Friedman UNICEF McKinsey & Company, Inc. Board The Victor and William Fung U.S. Department of Transportation Medco Health Solutions, Inc. Cargill Foundation Wal-Mart Stores, Inc. Mitsubishi Heavy Industries America, Caterpillar The George Washington University Washington University in St. Louis Inc. Center for American Progress Greater New Orleans Nonprofit Casey Wasserman National Association of Broadcasters Center for Economic and Policy Knowledge Works Beatrice W. and Anthony Welters Northrop Corporation Research William A. Haseltine, Ph.D. Poju Zabludowicz Norwegian Refugee Council The Centre for International Heidrick & Struggles Ziff Brothers Investments Partnership for a New American Governance Innovation The Heinz Endowments Mortimer Zuckerman Economy Judith and Stewart Colton Intel Corporation Daniel B. Zwirn Robert Peck The Corning Incorporated The Japan Foundation Center for George L. Perry Foundation Global Partnership $25,000–$49,999 Personalized Medicine Coalition Alexi Coscoros The Jenesis Group Anonymous (3) Pfizer Inc. Council on Foreign Relations James A. Johnson and Maxine Isaacs The AES Corporation Samuel Pisar Curtis Family Foundation, Inc. Alan K. Jones American Electric Power D. Ronald Daniel and Lise C. Scott Herbert M. Kaplan American Express Company Qualcomm Judy and Kim Davis Tom Kaplan Aramco Services Company R.R. Donnelley & Sons Company Deere & Company The Korea Foundation Asian Development Bank Institute sanofi-aventis US Anthony and Darian Downs Edward M. Lamont The Babcock & Wilcox Company Leonard D. Schaeffer The Eisner Foundation Lennar Urban Rex J. Bates William A. Shutzer Emerson Electric Co. Luso-American Foundation The Company Corporation Roger C. Faxon Luxembourg Ministry of Foreign Brodsky Family Foundation Samuel M. and Helene K. Soref French Ministry of Foreign Affairs Affairs Ralph C. Bryant Foundation Ann M. Fudge Marsh & McLennan Companies, Cerner Corporation Taconic Capital Advisors LP John L. Furth Inc. Automotive TerraPower Georgians for Passenger Rail McGill University The Commonwealth Fund Larry D. Thompson Brian L. and Myra S. Greenspun and The Leo Model Foundation Connect US Fund of Tides UNITE HERE the Greenspun Family Foundation The Ambrose Monell Foundation Foundation United States Institute of Peace Agnes Gund Jaime J. Montealegre ConocoPhillips United States Small Business The Marc Haas Foundation Mario M. Morino Administration (SBA) The Harris Family Foundation 36 Honor Roll of C ontributors

June R. Hechinger Steven J. Simmons Embassy of Japan Martin Indyk Teresa Heinz Kerry The Simons Foundation J.M. Kaplan Fund Ann and Vernon E. Jordan Jr. F. Warren Hellman Randy Slifka Keck Foundation Van Jordan Fiona Hill Emily and Robert E. Smith The Learning Fund Catherine Kelleher Franklin W. Hobbs Software and Information Industry Bruce and Virginia MacLaury Thomas L. Kempner International Committee of the Red Association Maricopa Association of Douglas Kiessling Cross Sojitz Foundation Governments Kristin Knaus International Growth Centre Andrew P. and Patricia Steffan Peter and Sarah O’Hagan Donald F. McHenry ITOCHU International Inc. Leila and Mickey Straus George F. Ohrstrom Stephen C. Morris ITT Corporation Michael Sternberg Frederic A. and Susan Rubinstein David Mundel Martin D. Jacobson Sumitomo Corporation of America William Salomon Rochelle Novins Douglas M. Kaden Sumitomo Mitsui Banking Ralph S. Saul Robert C. Nurick Kansai Electric Power Company, Inc. Corporation Henry B. Schacht William A. Owens Joel and Ricki Kanter Paul and Chandler Tagliabue Paul and Deane Shatz Jason Palmer James C. Kautz Nelson Talbott Kenneth Siegel Bruce Parrott David Woods Kemper Memorial Strobe Talbott Frederick Stavis Peter G. Peterson Foundation Foundation Michael L. Tipsord SunTrust Foundation Samuel Plimpton and Wendy Brenda R. Kiessling Margaret L. Tomlinson The University of British Columbia Shattuck Marie L. Knowles Toshiba America, Inc. University of Pennsylvania Amy and John Porter Robert and Arlene Kogod Trehan Foundation Josh S. Weston Helen Raffel Korea Development Institute Tudor Investment Corporation Howard Wial Peter B. Reddaway Korea International Trade Association University of Wisconsin-Madison Stanley and Louise Resor (KITA) Paul Verbinnen and Cecilia Greene Up to $4,999 Blair Ruble KPMG LLP VOX Global Anonymous Warren B. Rudman Toby Devan Lewis John C. Whitehead Henry Aaron B. Francis Saul II Gordon Litwin and Anne Luzzatto Judy and Fred Wilpon Family Fred Altman Sodexo, Inc. Corporation Foundation, Inc. Anders Aslund Edwin Soforenko Foundation Daniel S. Loeb Stephen M. Wolf Harley D. Balzer Alexander Sokolowski Malcolm and Celia Lovell Xerox Corporation Richard Barnes Helmut Sonnenfeldt Bertil P. Lundqvist William Horton Beebe-Center Diana Davis Spencer Marathon Oil Corporation $5,000–$9,999 Steven J. Bennett Jeffrey W. Smith Marubeni America Corporation American Society of the French Paul S. Berger S. Frederick Starr David O. Maxwell Legion of Honor Cabell and Shirley Brand Charitable Third Way Eugene and Agnes E. Meyer Argonne National Laboratory Lead Trust Laura D’Andrea Tyson Foundation Zoë Baird Budinger Louis W. Cabot U.S.-Russia Business Council The McGraw-Hill Companies, Inc. Steffi and Robert Berne Avis B. Calleo Robert M. Weekley Arjay and Frances Miller Bertelsmann Stiftung Samuel G. Charap Mark S. Wrighton Mitsubishi International Corporation Conrad Cafritz Morton and Shirley Cohen Mitsui & Co. (U.S.A.), Inc. William M. Cameron Roberta Cohen Brookings strives to be complete and Stavros Niarchos Foundation Ellen Chesler and Matthew J. The Concord Coalition accurate in recognizing the generous Northern Trust Corporation Mallow Vishakha N. Desai support of our donors. We regret any Norwegian Peacebuilding Centre Arthur B. Culvahouse Michael Dolan omissions or errors. NTT Corp. Bruce B. Dayton Jill Dougherty Richard B. Nye and Francesca Kenneth M. Duberstein Courtney Dunakin Stanfill-Nye Charles W. Duncan Jr. Environmental Defense Eiji Ono Kay Enokido and Thomas C. Crouse Nick Farmer Organization of American States Elinor Farquhar Barry Friedberg Panasonic Corporation Nancy M. Folger Ellen Futter Steven Pifer David Friend Stephen D. Greenberg Robert C. Pozen Leslie I. Gold Vartan Gregorian Marie Ridder Patrick Gross Marion Guggenheim Marshall Rose John H. and Susan K. Gutfreund Jack Guthman Robert L. Rosen Hagedorn Foundation King W. Harris Laura G. Ross The John A. Hartford Foundation Nancy and John Harris Lewis Sachs Robert A. Helman Hope M. Harrison Joseph Sassoon Cynthia Helms Daniel Herz-Roiphe Isabel V. Sawhill Harold Hestnes Nancy M. Hewett The SCAN Foundation Shirley Ann Jackson Hickrill Foundation Michael P. and Paola Schulhof John R. Jakobson Arnold L. Horelick Elinor A. Seevak Nicholas Jakobson Christopher W. Ince 37 STATEMENT OF ACTIVITIES Years Ended June 30, 2011 and 2010 (in thousands) Preliminary and Unaudited*

TEMPORARILY PERMANENTLY FY 2011 FY 2010 UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL

OPERATING ACTIVITIES Revenue and Support Investment return designated for operations $ 9,717 $ 2,702 $ 12,419 $ 12,265 Grants, contracts, and contributions 19,112 67,595 86,707 52,185 Brookings Press 2,226 2,226 2,328 Facility and other revenue 694 694 2,520 Net assets released from restrictions— Satisfaction of program restrictions 55,334 (55,334) Total Operating Revenue 87,083 14,963 102,046 69,298

Operating Expenses Program Services Economic Studies 15,884 15,884 14,549 Foreign Policy 17,354 17,354 15,668 Global Economy and Development 8,913 8,913 8,445 Governance Studies 4,291 4,291 3,603 Metropolitan Policy Program 9,404 9,404 7,907 Other Research 2,195 2,195 352 Executive Education 1,501 1,501 1,309 Brookings Press 2,681 2,681 2,708 Communications 2,208 2,208 2,257 Total Program Services 64,431 64,431 56,798 Supporting Services Management and General 19,611 19,611 28,904 Fundraising 3,171 3,171 2,743 Total Operating Expenses 87,213 87,213 88,445 Net Operating Activity (130) 14,963 14,833 (19,147) Change in net assets before non-operating activities (130) 14,963 14,833 (19,147)

NON-OPERATING ACTIVITIES Investment return in excess of amounts designated for operations Realized gain (loss) on sale of investments 5,921 1,461 7,382 7,045 Unrealized gain (loss) from investments 34,010 8,360 42,370 27,016 Interest and dividends, net 601 369 970 (70) Investment return designated for operations (9,717) (2,702) (12,419) (12,265) Total investment return (loss) in excess of amounts ­designated for operations 30,815 7,488 - 38,303 21,726 Loss on uncollectible contribution - - - - (852) Contributions for endowment - 229 229 2,081 Total Non-Operating Activities 30,815 7,488 229 38,532 22,955 Change in net assets before post-retirement related changes other than net periodic post-retirement benefit cost 30,685 22,451 229 53,365 3,808 Post-retirement related changes other than net periodic post-retirement pension cost 1,748 1,748 (504) CHANGE IN NET ASSETS 32,433 22,451 229 55,113 3,304 Net assets, Beginning of year 152,011 87,379 59,940 299,330 296,026 Net assets, End of year $184,444 $109,830 $60,169 $354,443 $299,330

38 STATEMENT OF FINANCIAL POSITION As of June 30, 2011 and 2010 (in thousands) Preliminary and Unaudited*

2011 TOTAL 2010 TOTAL

ASSETS Cash and cash equivalents $ 17,555 $ 11,258 Grants, Contributions and accounts receivable, net 69,470 57,719 Inventory 451 450 Investments 275,062 244,303 Property and equipment, net 45,862 44,675 Other assets 1,639 1,657 TOTAL ASSETS 410,039 360,062

Liabilities and Net A ssets Liabilities Accounts payable and accrued expenses (6,963) (7,681) Bonds payable and lines of credit (44,377) (46,868) Accrued compensated leave (1,386) (1,747) Accrued post-retirement benefit obligation (2,593) (4,087) Deferred revenue (277) (349) TOTAL LIABILITIES (55,596) (60,732)

Net Assets Unrestricted (184,444) (152,010) Temporarily restricted (109,830) (87,629) Permanently restricted (60,169) (59,691) TOTAL NET ASSETS (354,443) (299,330) TOTAL LIABILITIES AND NET ASSETS $(410,039) $(360,062)

Operating RevenuesProgram Services Expenses

27% Foreign Policy

3% Other Research 85% Gifts and Grants 2% Executive Education

3% 25% Publications Economic Studies 15% 11% Metropolitan Policy Program Endowment 4% Publications 1% Miscellaneous 7% Governance Studies

14% Global Economy

3% Communications Notes: As a nonprofit and scientific organization, Brookings­ is exempt from federal income taxes under section 501(c)(3) of the Internal Revenue Code. The Institution also qualifies as a publicly supported organization under section 170(b)(1)(A)(vi) of the code. The Brookings policy is to make an annual investment spending allocation for the support of operations. This amount is calculated based on 70% of the prior year’s spending adjusted for inflation and 30% of 5% of the market value of the investments as of December 31 of the prior fiscal year. Certain reclassifications of prior year balances have been made to conform to the current year presentation.­ *A copy of the Institution’s audited financial statements is available by request. 39 Brookings Press he whole world is focuses on the sociopolitical Carol Graham, the Charles W. stan, America, and the Future of watching China’s ramifications of the birth and Robinson chair in Foreign Policy, the Global Jihad. remarkable eco- growth of China’s middle class offers a definition of well-being In Last Exit: Privatization and nomic growth. over the past two decades. Hu that is broader than income Deregulation of the U.S. Trans- The Brookings Angang, director of the Center measurement and could lead to portation System, Senior Fellow Institution Press for China Studies at Tshingua an improved understanding of Clifford Winston takes a view Treleased several books this year University in Beijing, offers a poverty and development in The largely at odds with the cur- exploring various aspects of this Chinese perspective on the chal- Pursuit of Happiness: An Econ- rent administration, reminding sea change, including how to lenges and opportunities that his omy of Well-Being. And Darrell us that transportation services do business in China, Beijing’s nation will face as its global foot- West is the author of The Next and infrastructure in the United evolving relationship with its print expands in China in 2020: Wave: Using Digital Technology States were originally introduced regional neighbors and whether A New Type of Superpower. to Further Social and Political by private firms rather than the the nation is truly on track to China and other emerging Innovation, in which he examines government. He proposes timely become the next superpower. market economies—including new technologies and considers experiments to test and demon- Multinational corporations Brazil, Russia and India—now how they can further U.S. social strate the benefits of privatiza- are now looking toward China constitute a dominant presence and political innovation. West tion as the nation explores ways with a mixture of trepi- to relieve its budgetary dation and anticipation. crisis. Senior Fellow Kenneth William T. Coleman Lieberthal, director Jr., an honorary member Brookings of Brookings’s John L. of the Brookings Board of Thornton China Center, Trustees, chronicles his explains China’s priorities own story in Counsel for and how its political and the Situation: Shaping the economic systems actu- Law to Realize America’s ally work—and how to Promise. operate within those sys- The first two Brook- tems—in Managing the ings FOCUS series China Challenge: How to books received recog- Achieve Corporate Success in the in today’s global economy. Senior is vice president of Governance nition this year. Brain Gain: People’s Republic. In The Perils of Fellow Eswar S. Prasad and his Studies and founding director of Rethinking U.S. Immigration Proximity: China-Japan Security coauthor M. Ayhan Kose draw on the Center for Technology Inno- Policy by Darrell West, won the Relations, Senior Fellow Richard extensive research to assess the vation at Brookings. Gold Award in Political Science Bush, who directs the Center for resilience of these markets in the Decades before Osama bin from ForeWord Reviews’s Book of Northeast Asian Policy Studies at face of the global financial crisis. Laden was killed by U.S. forces the Year Awards. Brookings Man- Brookings, evaluates the chances Emerging Markets: Resilience in Pakistan, the two countries aging Director William Antholis of armed conflict between China and Growth amid Global Turmoil entered into a complicated rela- and President Strobe Talbott’s and Japan. shows how these markets weath- tionship that continues to con- Fast Forward: Ethics and Politics Two new volumes this year ered the crisis much better than fuse and confound. Senior Fellow in the Age of Global Warming from the Thornton Center Chi- did the advanced countries. Bruce Riedel, having chaired an was a finalist in the Environment nese Thinkers Series also delved This year the Brookings Press interagency review of Afghani- category. The Before Colum- into the Middle Kingdom’s rapid published two new titles in its stan and Pakistan policy for the bus Foundation named Journey transformation. Senior Fel- FOCUS series, which features Obama administration, interprets into America: The Challenge of low Cheng Li edited China’s concise and accessible analysis of the tortuous history and uncer- Islam by Akbar Ahmed winner Emerging Middle Class: Beyond current policy issues written for tain future of U.S.-Pakistan ­rela- of an American Book Award for Economic Transformation, which a broad audience. Senior Fellow tions in Deadly Embrace: Paki- 2011. n 40 Brookings