2008 REPORT ON ACTIVITIES THE JOHN D. AND CATHERINE T. MACARTHUR FOUNDATION WWW.MACFOUND.ORG Contents -------------------------------------------------------------------- 1 President’s Essay -------------------------------------------------------------------- 13 2008 in Review -------------------------------------------------------------------- 21 Grantmaking Activities 23 Program on Global Security and Sustainability 24 Program Overview 25 Grants Authorized 2008 43 Program on Human and Community Development 44 Program Overview 45 Grants Authorized 2008 59 General Program 60 Program Overview 61 Grants Authorized 2008 73 MacArthur Fellows Program 74 Program Overview 75 Grants Authorized 2008 -------------------------------------------------------------------- 80 Financial Information 84 Board of Directors 86 Foundation Staff 89 Applying for Grants 89 Our Commitment to Fairness and Courtesy 90 Index 96 In Memoriam INSIDE BacK coVER Contact Us The MacArthur Foundation supports creative people and effective institutions committed to building a more just, verdant, and peaceful world. In addition to selecting the MacArthur Fellows, the Foundation works to defend human rights, advance global conservation and security, make cities better places, and understand how technology is affecting children and society. President’s Essay America in Transition It was a year of hope and worry. A new President was elected, promising “change we can believe in.” MacArthur launched several new initiatives in the United States and around the world. And the global economic crisis eroded the value of our endowment while it increased the needs of people and organizations we serve. As we set the course for the period ahead, all three of these developments come into play. essay continues on next page 2008 Report on Activities: America in Transition 1 Let me begin with the positive. 2008 was an extraordinary year for MacArthur as a record number of initiatives came to fruition. MacArthur also deepened its work in longstanding domestic programs like housing and juvenile justice. Outside the United States, 2008 saw a rebalancing of our geographic priorities with more attention to Asia and Africa. Here are some examples: MacArthur launched a $68 million Asia Security Initiative. It will support a network of 27 policy research institutions from across the Asia-Pacific, including Peking University and Seoul’s East Asia Institute, and nurture a new generation of scholars and practitioners through the Asia Security Emerging Leaders Program. The Initiative will support research on ways to resolve regional tensions — including urgent challenges over North Korea, Taiwan, and Sino-Japanese relations — and work toward a new framework for security in the Asia region. We developed a $50 million commitment to help reduce maternal mortality, the fifth of the United Nations’ Millennium Development Goals. Working with Pathfinder International and others, our focus is on treating eclampsia and postpartum hemorrhage (the most common causes of death for mothers in childbirth) in Nigeria and India. These countries, together, account for one-third of maternal deaths worldwide. We announced a worldwide competition to select 12 universities as pioneers in a new master’s degree to train professionals in development. The new degree will emphasize science, engineering, management, and health and will include a deep clinical experience in the developing world. The curriculum was developed by a MacArthur-supported International Commission on Education for Sustainable Development Practice, chaired by Professor Jeffrey Sachs of Columbia University. We created a climate change adaptation initiative within our Conservation and Sustainable Development program. A $50 million commitment will support scientific assessments of the threat climate change poses to eight biodiversity hotspots where MacArthur is working, from the Andes to Africa’s Albertine Rift, from the eastern Himalayas to Melanesia. Adaptation plans will be crafted that, for example, create corridors from existing protected areas to new ones at higher elevations or with access to water. And best practices will be shared around the world through a new Ecosystems and Livelihoods Adaptation Network being developed by the International Union for Conservation of Nature and World Wildlife Fund (WWF) with MacArthur support. Our domestic program also had a robust year. We expanded our $150 million Window of Opportunity initiative to preserve affordable rental housing, adding a $32 million competition to encourage policy changes at the state and local level. It drew 80 applications from 40 states; we made 12 awards to local government and their partners for plans that will help military families in Maryland, seniors in rural Iowa and Vermont, low-wage workers in Florida and Oregon, people who have been homeless in Los Angeles, and more. 2 The John D. and Catherine T. MacArthur Foundation MacArthur believes that stable, affordable housing is a critical path for family stability and healthy communities. For several decades, federal housing policy was centered predominantly on homeownership, but MacArthur has taken the view that this policy overlooks the importance of rental housing. Through its Window of Opportunity initiative, MacArthur is investing $150 million to demonstrate that preserving and improving affordable rental housing2008 is R aeport smart on andActivities: cost-effective America instrategy. Transition 3 The challenge ahead is to nourish these new initiatives and maintain momentum in a time of declining resources. With a $68 million commitment of grants and program-related investments, we took on the foreclosure crisis that threatens newly revitalized Chicago neighborhoods. Through a program of vigorous outreach and counseling, better loan products, and legal assistance, we aim to advise at least 6,000 families and avert up to 2,700 foreclosures. Another element of the initiative will put vacant, foreclosed homes back into productive use through sale, rental, or lease-to-own. Organizations critical to this effort include Neighborhood Housing Services of Chicago, for its national best practices work in counseling, as well as ShoreBank and Self-Help Ventures for innovative, affordable new loan products. Our Juvenile Justice program, which emphasizes the developmental differences between youth and adults and the need for effective rehabilitation of young offenders, created three action networks. The networks deal with mental health, indigent defense, and reducing racial and ethnic disparities in the juvenile justice system. Sixteen states are now involved in our $130 million Models for Change initiative, with large-scale programs in Illinois, Louisiana, Pennsylvania, and Washington. In 2006, MacArthur helped launched a new field we call digital media and learning. Grantees such as Mizuko Ito at the University of California, Irvine; Henry Jenkins at the Massachusetts Institute of Technology; and Howard Gardner at Harvard University are studying how technology affects the ways young people think, learn, socialize, make ethical judgments, and engage in civic life. The initiative is also exploring how institutions — schools, libraries, and museums — will have to adapt. Games, mobile media, and social networking tools have implications for learning. To discover — even inspire — new applications, MacArthur made the first awards in an annual $2 million competition in 2008. From a thousand entries, an expert panel selected 17 projects. Winners included Hypercities, a web-based learning platform that links places with the stories of people who live there (or did in the past), and Fractor: Act on Facts, which matches news stories with opportunities for social activism and community service. These initiatives deepen longstanding MacArthur work in security, reproductive health, conservation, housing, juvenile justice, and education. They reflect strong partnerships with organizations we support and talented young staff who keep MacArthur in a continual process of renewal. New ideas and applications are the lifeblood of philanthropy. The challenge ahead is to nourish these new initiatives and maintain momentum in a time of declining resources. MacArthur has a history of being a steady funder during recessions. We did not reduce our grantmaking in the 2000–2001 technology downturn. We are holding steady in 2009 and will make only modest adjustments in 2010. We hope this course contributes to a reduction in the widespread anxiety among our grantees and gives them time to adapt to a new reality. 4 The John D. and Catherine T. MacArthur Foundation But as the economy stabilizes and begins to recover, MacArthur will have to reduce its grantmaking to reflect its diminished endowment. Our endowment performed exceptionally well during the recent boom period, growing from $3.8 billion in 2002 to $7 billion at the start of 2008. In common with other foundations, we lost as the markets tumbled — about 27 percent in 2008. A smaller endowment will not sustain our current level of giving. We will embark upon a gradual glide path to a lower grant budget over several years while maintaining our commitments to our core fields and the grantees central to them. Even though our resources are more limited, MacArthur is poised to help the renewal of our country. I am an historian by training, so it is natural for me to ask, “Where are we in the arc of history?” It feels to me like the United States is ready to embark on an era of reform spearheaded by a new