ANNUAL REPORT 2011 LISBON 2012 004. Contents 007 Board of Trustees Ib. Overseas of the Calouste Gulbenkian Foundation 199 International Department Internal Audit Committee 209 Delegation in France President’s Introduction 009 215 Armenian Communities Department 227 United Kingdom Branch I. Activities Report 245 The Gulbenkian Development 021 Office of the President Aid Programme Ia. Portugal Ic. Transverse Programmes and New Interventions Charity 260 Gulbenkian Environment Programme 037 Health and Human 270 New Interventions Development Department 045 Gulbenkian Human Id. Support Departments Development Programme 283 Central Services Department Art 287 Budget, Planning and Control Department 063 The Calouste Gulbenkian Museum 081 Music Department 293 Communication Department 097 José de Azeredo Perdigão Modern Art Centre • cam II. Economic 117 Gulbenkian Performing Arts and Financial Situation Programme Financial Statements 299 Economic and Financial Situation Education 310 Financial Statements 123 Education and Scholarships Department 364 Auditors’ Reports 147 Art Library 159 Gulbenkian Portuguese Language Programme III. Internal Audit Committee 167 Gulbenkian Next Future 370 Report Programme 372 Opinion 171 Gulbenkian Education for Culture Programme – Descobrir 373 Heads of Department and Gulbenkian Programmes Science 375 Useful Information 177 Science Department 187 Gulbenkian Institute of Science 192 Gulbenkian Advanced Medical Training Programme 004.005 Annual Report 2011 Board of Trustees Emílio Rui Vilar * Mikhael Essayan President Honorary President Artur Santos Silva ** President Diogo de Lucena Isabel Maria de Almeida Mota Eduardo Marçal Grilo Eduardo Lourenço de Faria André Gonçalves Pereira Teresa Pinto Basto Gouveia Martin Essayan Rui Esgaio Secretary to the Board of Trustees * Left office on 2 May 2012 ** Took office on 3 May 2012 Internal Audit Committee Maria Eugénia Melo de Almeida Pires* Director-General for the Budget Maria Manuela dos Santos Proença** Director-General for the Budget José Nuno Rangel Cid Proença Director-General for Social Security Manuel Jacinto Nunes Member nominated by the Lisbon Science Academy António Valdemar (José Stone de Medeiros Tavares) Member nominated by the National Fine Arts Academy Manuel Maçaroco Candeias Member nominated by the Bank of Portugal to represent the banks and banking houses * Left office on 31 December 2011 ** Took office on 1 January 2012 006.007 Annual Report 2011 Introduction I. This is the last Annual Report of the Calouste Gulbenkian Foundation for which I shall be responsible as president. I have always considered a respect for the principles of transparency and the rendering of accounts to be the cornerstone of our foundational edifice, and it is this that leads me today to write a brief overview of the sixteen years during which I have had the privilege of working at the Calouste Gulbenkian Foundation. I spent my first six years here as a director – initially being responsible for the financial area (investments, accounts, and budget, planning and control), after which I was handed responsibility for Oil and Gas, Central Services, Science, Fine Arts, the Museum, the Art Library, the Gulbenkian Institute of Science, Acarte and the Modern Art Centre – and then the next ten years as president of the Board of Trustees, maintaining responsibility for the financial area and the Museum, together with the Communication and International Departments, the Delegation in France, the Gulbenkian programmes of Creation and Artistic Creativity (2003-2008), State of the World (2005-2006), Distance and Proximity (2007-2008), Environment (2008-2011), Next Future (2009-2011) and Education for Culture – Descobrir (2008-2010). I was a director of Partex Oil and Gas (Holdings) from the moment of its creation in 1998, and company chairman from 2002 onwards. I also had the honour of coordinating the working party that planned, prepared and organised the commemorations of the Foundation’s 50th anniversary, which we proudly celebrated in 2006. I should like to identify four distinct periods during these sixteen years: The first period, in the last few years of the previous century, was a period of growth and euphoria, at a time of positive inertia generated by the end of the Soviet bloc, the installation of the new “pax americana”, the almost unanimous support for the first Gulf War and the belief in the consolidation of democracy, in the political order, and, given the potentialities of market forces, in the economic order. The second period began with the crisis of the turn of the millennium, with the bursting of the “bubble” of the information and communication technologies industry (2000-2002) and the dramatic outbreak of religious fanaticism on 11 September 2001. After this came two regional wars (Afghanistan and Iraq) – both poorly justified in terms of international law and ill prepared – which divided Europe and highlighted the weaknesses of the great power (USA), while also opening up new battlefronts and areas of conflict. The third period, from 2003 to 2007, coincided with the recovery of economic growth, although this was overly based on the transfer of savings from the emerging economies to the USA and Europe. The fourth and final period was marked by the new financial crisis in the summer of 2007, with the fuse being lit by the subprime mortgage crisis in the USA, which later spread to the financial world 008.009 Annual Report 2011 and the economies of the developed world: a situation that we are still experiencing without any clear and effective theoretical framework, and in which the Keynes/Schumpeter doctrinal conflict is clearly out of phase with this new reality. In Europe, the launch of the euro, with the political-financial “edifice” still unfinished, was to reveal enormous weaknesses during this period, leading to an excessive indebtedness of states, companies and households. The lack of strong political leadership, the failure of the European Commission to take a proactive role, and the new “figure” of the president of the European Council, all tended to reinforce the intergovernmental component of the Lisbon Treaty. And so we now have a European Union that is more concerned with the interests of the member states than with the rights and aspirations of its citizens. This crisis also helped to create (or at least was said to be the reason for) the delay in adopting the environmental measures at the world level that had long been considered necessary, particularly in relation to the question of climate change. This was further exacerbated by the flagrant failure of the Copenhagen Conference. At the same time, part of the progress made in achieving the Millennium Development Goals (MDGS) adopted by the United Nations has proved to be profoundly asymmetrical and today receives much less support through the aid provided by the so-called donor countries. It was therefore a time when the world underwent profound changes and when the political, economic and social paradigms of the late 20th century seemed to be called into question. At the beginning of this decade and a half, it was the price of oil that was the first to fall: 10 USD in 1998. Later, it was share and security prices on the stock exchange that were to fall, in 2000-2002, 2007-2009, and again in 2011. However, overall, the Foundation’s assets and capital fund grew in both nominal and real terms, although they reached their highest level in real terms at the end of 1999, despite the fact that, in 2001, the assets in the oil and gas industry were revalued for the first time (table 1). Table 1 Net worth Millions of euros Total Assets Total Assests Capital Fund Capital Fund (nominal) (n.1995) (nominal) (n. 1995) 31.12.1995 1634 1634 1445 1445 31.12.1999 2781 2507 2538 2288 31.12.2001 2749 2307 2496 2095 31.12.2011 3019 2003 2646 1755 Source: Accounts Department and Budget, Planning and Control Department. The fact that, for the last three years, we spent no more than 3.5 per cent each year of the Foundation’s average net worth was a defensive and anti-cyclical strategy that allowed us to achieve a relative stability in budgetary terms, thus avoiding any great oscillation in our activity. The quantitative expression of the Foundation’s activity – subsidies, grants and direct activities – and their respective cost is most impressive. Tables 2 and 3 show the aggregate indicators for the last ten years. Calouste Gulbenkian Foundation Introduction 010. Table 2 Calouste Gulbenkian Foundation – Grant recipients and events 2002-2011 Total Annual Average Number of people Recipients of subsidies 15 796 1 580 Scholarship holders 57 225 5 723 Visitors to museums 2 475 859 247 586 Visitors to temporary exhibitions 3 046 790 304 679 Attendance at concerts, films and other performances 1 407 823 140 782 Users of educational activities 381 759 54 537 Library users (Art Library and Delegation in France) 55 170 5 517 Number of events Temporary exhibitions 300 30 Concerts, films and other performances 2 491 249 Publications › Editions 1 265 127 › Copies 2 235 081 223 508 Conferences, lectures and seminars 2 365 237 Prizes 58 6 Educational activities 20 022 2 860 Source: Budget, Planning and Control Department. Table 3 Cost of the Foundation’s activities* 2002-2011 Euros Total costs Annual Average Distributive activities Subsidies 148 102 966 14 810 297 Scholarships 75 523 602 7 552 360 Prizes 3 206 888 320 689 Initiatives Exhibitions 25 675 042 2 567 504 Concerts, films and other performances 123 019 550 12 301 955 Publications 26 906 857 2 690 686 Conferences and lectures 10 070 768 1 007 077 Educational activities 7 879 780 1 125 683 Permanent activities Museums 46 946 206 4 694 621 Libraries 25 137 536 2 513 754 *Does not include personnel costs and general operating costs. Source: Budget, Planning and Control Department. 010.011 Annual Report 2011 II.