ANNUAL REPORT

1998

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MESSAGE FROM THE PRESIDENT 1

KEY FIGURES 3

INDUSTRY AND MEMBERS’ AFFAIRS 5

PARTNERSHIPS WITH THE WORLD ECONOMIC FORUM 6

KNOWLEDGE MANAGEMENT AT THE FORUM 7

THE ANNUAL MEETING IN DAVOS 8

MIDDLE EAST/NORTH AFRICA BUSINESS INITIATIVE 9

REGIONAL ACTIVITIES AND RELATED SERVICES 10

EAST ASIA ECONOMIC SUMMIT, SINGAPORE 11

INDIA ECONOMIC SUMMIT, NEW DELHI, INDIA 12

USA MEETING, WASHINGTON DC 13

CHINA BUSINESS SUMMIT, BEIJING AND SHANGHAI 14

MERCOSUR ECONOMIC SUMMITS 15

CENTRAL AND EASTERN EUROPEAN ECONOMIC SUMMIT 16

SOUTHERN AFRICA ECONOMIC SUMMIT 17

RUSSIA MEETING 18

GLOBAL LEADERS FOR TOMORROW PROGRAMME 19

INITIATIVES 20

FOUNDATION BOARD 22

EXECUTIVE BOARD AND COUNCIL 23

MEMBER COMPANIES 24

KNOWLEDGE PARTNERSAND INSTITUTIONAL PARTNERS 28 C

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Last year was another successful year for the WorldEconomic Forum. Nevertheless, it was also an appropriatetime to prepare for the new millennium. Thus, substantialresources and energies have been invested in the creationof the World Economic Forum for the 21st century. In closecooperation with many of our members, particularly with ourCouncil, and assisted by the advice of some of the leadingconsultancy companies, we have repositioned theFoundation to expand and increase the value propositionprovided to our members. We will, of course, continue tobuild on our past successes and ensure linkages and complementarities between our different activities and initiatives.

We have been guided by three principles:

1. Deeper engagement of our members and constituents

The Foundation is the creator and facilitator of theworld’s foremost community of political, business, intellectual and other leaders of global society. Our activities are member and constituent driven and will beincreasingly so in the future. We plan to deepen ourprocesses of engagement and leverage the new technological opportunities for community building andknowledge sharing. Some of our new efforts includeestablishing Regional Councils to provide us with insightsand guidance in our efforts to extend and deepen therole that the Forum has played in regional cooperationand development. We will also form special SteeringCommittees for each of our industry sectors to ensureeven more closeness to specific strategic challenges,which our members have to face in a globalizing economy.

2. Leading in the creation and application of interaction andknowledge tools based on state-of-the-art technologies

We have always been technological pioneers. In particular, our Annual Meetings in Davos have been thetest place for a number of new communications technologies. Now, we want to go a step further by creating a knowledge backbone in all the areas wherewe are active. As an example, we will introduce in eachof our industry sectors the tools and mechanisms that

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help to capture and share ideas regarding the key concerns of our members. This will be implemented inthose areas where collaborative efforts of the industryare necessary, for example in dealing with societalexpectations and challenges. We have tested the first ofthese tools and feel confident that the Foundation canbecome a major driving force and a pioneer in the creation of the ‘‘knowledge society’’.

3. Building a content and process orientation

The third principle in our refocused efforts is a logicalconsequence of the application of the first two principles: we will be much more content and process-oriented in our activities, moving away from an‘‘event approach’’. One of our new initiatives in thisrespect is the Centre for the Global Agenda (CGA)which will serve as a catalyst in defining, monitoring anddriving the global agenda. It will act as a hub ofnetworks and alliances on important global issues andwill play a key role in the world’s international system.

The Centre for the Global Agenda will be forward-looking and dynamic. It will be a global integrator ofpeople, ideas and knowledge relevant to defining andshaping the key issues on the global agenda. TheCentre will bring together business, political, intellectualand civic leaders in generating, advancing and sharingsolutions to key challenges that lie at the interface ofthe public and private sectors. It will build upon thestrengths of the World Economic Forum adding processand content components that reinforce the depth of allFoundation activities.

All of these efforts will build upon our core activities andenable us to further pursue our mission of being initiator,catalyst and facilitator of the foremost global community ofbusiness, political, intellectual and other leaders of society.

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KEY FIGURESin Swiss Francs

YEAR

Total income,out of which

members’ fees

Total expenditureincluding R&D

and investments

Surplus to be added to the

Foundation capital

Foundation capital

TOTAL STAFF

Full time

Part time

1996/97

42,074,397

16,047,893

41,432,138

642,259

5,293,847

59

21

1995/96

36,347,457

14,887,600

35,783,161

564,295

4,651,587

58

21

1994/95

32,681,090

13,537,250

32,293,679

387,411

4,087,291

56

11

1997/98

51,890,452

18,761,000

51,047,818

842,633

6,136,481

73

26

1998/99

51,306,002

20,915,531

50,380,441

925,560

7,062,041

68

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In its transfer to a knowledge and process oriented organization, in 1998 the Forum invested particularly in its humanresources, which was reflected in an increase of personnel costs of 10.90%.

As far as income is concerned, for political reasons the Middle East/North Africa Summit could not be organized in 1998and our income decreased from Sfr 51,890,452 to Sfr 51,306,002.

This accounting year has been marked by four majordevelopments with long-term implications for the future ofthe World Economic Forum, putting in place some keycomponents of the 21st century.

First, we have moved to our new headquarters overlookingLake Leman in Geneva. It has been more than just aphysical move; this has been a development of majorsignificance. It has given the Foundation a clearly identifiable‘‘physical’’ presence in its Swiss and Geneva home base thatit didn’t have until now – a major step as the Foundationapproaches the 30th anniversary of its creation. It also sendsa very powerful message on what the World EconomicForum strives to be – open and transparent, outward-looking, innovative and high-tech oriented. Above all, ournew premises will allow us to add the additional resourcesneeded to fulfil the development plans envisaged over thenext few years to make sure that the Forum will be able tocontinue to expand its services to its members andconstituents to increase its relevance and usefulness to beeven more in a position to fulfil its commitment to improvingthe state of the world.

The second development is the decision to create the Centrefor the Global Agenda, integrated into the World EconomicForum but with its specific structures and resources. TheCentre will be the key instrument in making the Forum moreprocess and substance oriented. It will be in charge ofdeveloping a number of projects and initiatives on issues ofpriority interest to Forum members and constituents,providing an inputting mechanism for all the Forum’sactivities. The Centre will function as a hub for global policynetworks. By providing a system of sustained contacts andinteractions with the top academic experts and the majorthink tanks in the world, it will ensure that the Forum alwaysremains on the top edge of the knowledge creation andintegration process, thus increasing the value and relevanceof its activities to its members and constituents.

A third development has been the major overhaul andexpansion of our whole IT infrastructure. This has createdthe much-needed in-house capability for a comprehensiveapproach to the management of our relationship with ourmembers, and will allow the Forum to be an even moremember-driven organization. We now have the technologicalcapabilities not only to create a knowledge backboneinternally but also to become easily accessible to ourmembers and constituents. Such a development is animportant element in the Forum’s strategic orientation toincreasingly become a knowledge and process-orientedorganization.

The fourth development is the internal reorganization thattook place last spring. The regroupment of activities aroundeight ‘‘clusters’’ has created a structure that will allow forgreater synergies inside the organization and contribute todeveloping stronger leadership capabilities. This newstructure will also help to create clearer and more promisingcareer patterns inside the Forum. It will help to attract andkeep the new talents and additional resources needed toimplement the Forum’s strategy to enter the 21st century as a knowledge based, input and process-orientedorganization, ever more capable of meeting the needs andexpectations of its members.

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SINDUSTRY AND MEMBERS’ AFFAIRS

One key aspect of this year’s activities has been theemphasis put on making the Forum an even more member-driven organization. Our strategy remains to limitFoundation membership to the world’s 1,000 foremost globalcorporations. Therefore we have continued our drive towardsimproving and upgrading the quality and composition of our membership in order to fully reflect the trends in the global economy from a sectoral as well as a geographicalpoint of view.

In order to strengthen the notion that members are part ofan exclusive community of key decision-makers, and toreinforce the relevance of the World Economic Forum as theforemost global partnership of business, political, intellectualand other leaders of society committed to improving thestate of the world, we have reinforced the implementation oftransparent membership criteria. We have also pursued ourpolicy of taking an even more selective approach withcompanies applying for membership. At the same time wehave continued to separate from some companies whichhave been part of our membership for ‘‘historical’’ reasonsbut which no longer fulfil the criteria.

The Industry Affairs cluster is first and foremost responsiblefor engaging Foundation members at the highest level in the activities of the Forum. The cluster represents the keyengine in ensuring that the Forum’s activities and servicesare responding to the present and, even more important,future needs and expectations of member companies. The idea is to enhance the Forum’s relevance and sustainability by strengthening a real sense of stewardshipand involvement among key members.

The Industry Affairs cluster is structured on an industry basis in order to enable the Forum to become a true ‘‘insider’’ on major issues of particular relevance and importance to the world’s most important and dynamic corporations. The cluster encompasses five teams:Communications, Services, Manufacturing, Mobility andConsumer Goods. Much effort has been directed to ensuringthat the cluster develops a knowledge base on all industry-relevant issues of strategic importance. The purposeis to guarantee relevant and useful content for the Governors Meetings and other industry related activities.

The Forum’s Governors Meetings continue to provide anincreasingly valuable mechanism, allowing top leaders fromdifferent sectors to meet informally among themselves toexamine and discuss strategic options to challenges andopportunities facing their sectors. At present, there are 14 Industry Governors Groups. At the Annual Meeting 2000we will introduce a new Governors Meeting in the ChemicalIndustry. In an effort to make these gatherings more processoriented, and to reinforce their long-term club character,several initiatives and gatherings focusing on issues ofparamount strategic importance to a given industry havebeen developed outside the yearly meetings in Davos.

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PARTNERSHIPS WITH THE WORLD ECONOMIC FORUM

Over the last year, the Forum has seen a substantialincrease in the interest of our members to join the circle ofpartner companies. While this positive responsedemonstrates our great success with the partnershipoffering, it has also caused us to reflect on our strategy.The Foundation’s independent and impartial nature as amembership organization is given highest priority whendetermining partnership objectives. One of the basicprinciples of the partnership opportunity is that the Forumshould be able to count on the partner company’sspecialized knowledge about a region or industry to bringadded value to our activities. Hence we established thescheme of ‘‘Knowledge Partnership,’’ which now providesthe framework for our relationship with a group of ourmembers. Over this last year, the Forum has streamlinedand simplified partnerships at our Regional Summits andthe Annual Meeting with the objective of providing a clearand transparent system to ensure fairness among allmembers and partners.

The advent of the Knowledge Partnership scheme hasallowed the Forum to embark with renowned businesses onnumerous research projects and initiatives in an effort tobring thought-provoking data and approaches to ourmembership on a variety of subjects. These subjectsinclude benchmarking of the truly global corporation, howstrategic leadership permeates an organization, corporateperformance, knowledge management or what is on themind of the CEO worldwide. Several important internalprojects (for example, the development of a knowledgedatabase and the creation of a new IT infrastructure) thatare shaping the abilities of the Forum to move into the nextcentury have been initiated with key Knowledge Partners.

Finally, the number of Institutional Partners, which supportseveral of the Forum’s activities annually, have doubledsince this time last year. Several of our InstitutionalPartners offer their infrastructure capabilities, which allowparticipants to enjoy top-quality services during ouractivities. We are pleased to recognize these companies for their ongoing support and to thank them for theirrespect of our mission of ‘‘improving the state of theworld’’.

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MKNOWLEDGE MANAGEMENT AT THE FORUM

As mentioned above, this year has been marked by a majoroverhaul of the World Economic Forum’s entire ITinfrastructure. This also allowed us to offer new services to Forum members and participants at the 1999 AnnualMeeting. On this occasion, we deployed important newtechnologies to help participants make better use of themany opportunities and services provided by the meeting.Each participant carried a computer with networkcapabilities – actually hidden in his or her badge. Thissignificantly increased the capabilities for identification ofparticipants and the level of security in the CongressCentre. The Kiosk, the interactive information andcommunication platform, allowed the participants to sendand receive e-mail, look up programme details and meetingvenues, create a personal agenda and search through theelectronic version of the participants booklet.

At the internal level, the core of our system, themembership database and back-office system, has beenredesigned and reinforced with the help of AndersenConsulting. We have now successfully implemented thesystem with the clear target of higher standards andimproved performance in managing the Forum’s relationshipwith its members and constituents, the servicing of ourmembers and our internal operations.

The key orientations of the newly formed KnowledgeManagement cluster are based on the professionalism ofthe IT environment and the related operations; the creationof the necessary IT infrastructure for knowledge sharingand integration within the Forum and with our members;and the development of our relations with our partners who help us to continually adjust and expand our ITinfrastructure. This strategy should allow the Forum tobenefit from the optimum internal infrastructure needed toprovide high-quality services to our members, allowing theForum to evolve into new directions like knowledge sharingand integration for our members. This will also ensure thatour needs for new and evolving IT technologies can befulfilled with the help and involvement of our partners.

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STHE ANNUAL MEETING IN DAVOS (28 JANUARY – 2 FEBRUARY 1999)Responsible Globality: Managing the Impact of Globalization

The sessions of the Annual Meeting focused around the

overall theme Responsible Globality: Managing the

Impact

of Globalization . Crucial discussions were held to look atwhere globalization is taking us and how we can make it amore responsible process. In the midst of the Asia crisis,after the financial collapse in Russia and the Brazilian crisis,as the world financial markets were still reeling from theLTCM shock, it was clear that globalization and free marketsleft to themselves do not always produce the desired or necessary results for society at large. There was wide agreement that although a free market system is the bestand most efficient, there are inequalities that government, innew partnerships with other sectors of society, need toaddress. Senior political leaders participating in the AnnualMeeting recognized the need for governments to evolve inorder to respond effectively to the challenges posed by globalization and the growing backlash of large segments ofthe world’s population.

Following the reaction to the IMF’s reform plans in Asia, the outcome of the 1999 Annual Meeting was to reinforcethe need for international organizations to adjust their modusoperandi and programmes to the new requirements createdby the global economic environment. In all discussions, from Amartya Sen, Nobel Economic Prizewinner, to Vice-President Al Gore, the need to address the concerns ofthe individual facing the daunting challenges of globalizationwas clear. From the business world, governments, academiaand the NGO community there was resounding momentumto create the necessary partnerships and new mechanismsto ensure that globalization has a human face.

If the discussions centred on the need for a responsibleglobality had wide-ranging impact in the media and amongeconomic and political decision-makers, the same can besaid of those related to the emergence of the e-economyand its implications for business strategies, economicprospects and the way our societies will operate in thefuture. Expanding on the trend of the last few years, theAnnual Meeting confirmed its major role as a provider of theframework and the platform for discussing and sharinginsights on the e-economy in reshaping the way corporationsand national economies will have to perform.

Bringing together the key players from all sectors of societyincluding government, business, academia and the media,the 1999 Annual Meeting confirmed its significant role andimpact in shaping the global agenda on key issues such asthe new world of e-commerce, the impact of the Internet,the role of the US and Russia, and the challenges of theeuro. In addition, the Meeting in Davos served to highlightkey debates that are emerging between different regions ofthe world about corporate governance, privacy, genetics anddiffering visions of capitalism.

The 1999 Annual Meeting also reinforced the GLT Wake UpEurope initiative, focusing on key reforms needed to ensureEuropean economic growth, and launched the GLT Transitionto Peace initiative involving South Africa, the Middle East,Northern Ireland, and Bosnia and Herzegovina.

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MIDDLE EAST/NORTH AFRICA BUSINESS INITIATIVE

In the absence of a full-fledged Middle East/North AfricaEconomic Summit, the Forum convened a special MiddleEast/North Africa Business Initiative in the context of the1999 Annual Meeting. The objectives of this gathering,which included 200 business leaders, were to highlight thebusiness potential of the MENA region to the internationalbusiness community; to examine the effects of globalizationon the region; to assist in making the region resistant tothe impact of global financial volatility; and to assess thecompetitive position of the MENA region in the world economy.

The MENA Business Initiative was host to a series of constructive discussions on the need to better integrate theregion’s economies into the mainstream of globalization.Throughout the two-day gathering, participants discussedhow the MENA economies could better withstand the compound pressures of the globalization process and lowcommodity prices. There was also much deliberation onhow political obstacles and the stalled Middle East peaceprocess continue to have negative effects on the region’sprospects.

The MENA Business Initiative responded to a real need forregional executives to stay in the forefront of the globaleconomy and to avoid a certain degree of economic andcommercial marginalization. The business-driven approachof the discussions allowed for a greater focus on practicaland concrete opportunities, on prospects for joint venturesand on possibilities for intra-regional trade.

A number of proposals were raised during the MENABusiness Initiative, including:

The Creation of a set of benchmarking standards to link regional capital markets and coordination of financial institutions. In this respect the group pledged to finance a study on the liberalization of financial services in theregion.

A commitment and pledge from participants to create aMENA Business Council to allow the private sector to bringforth recommendations to governments on policies tocreate a user-friendly business environment; to examinescenarios for regional cooperation projects and intra-regional trade; to identify new commercial opportunities andto recommend structures and mechanisms to enhancebusiness networking and bridge-building between chiefexecutives and government representatives.

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REGIONAL ACTIVITIES AND RELATED SERVICES

In this era of time compression and ever-acceleratingchanges, our member companies are revising their corporate and development strategies on a regular basis.Our Regional Summits and Country Initiatives constitute anintegrated and consistent system of involvement in all thekey areas of economic activity of a specific region. The unique methodology and services available at eachWorld Economic Forum gathering allow members and constituents to:

share first-hand information and insights on the key trendsand developments affecting a region’s outlookbenefit from an exclusive and direct interface with politicalleaders of the regioninvestigate new business opportunities directly withbusiness leaders from the region, offering a privilegedframework for intensive business networking, forging newpartnerships and allianceshave an impact on key issues affecting the businessrelationship between the region and its key partners aroundthe worldparticipate actively in creating a more dynamic and investor-friendly environment.

The Regional Summits of the World Economic Forum arerecognized today as the most time efficient and productivetool for senior executives wishing to consolidate or expandtheir business horizons worldwide. In 1999 close to 7,000participants integrated our regional activities into their traveland business plans, thus proving the net worth we alwaysseek to deliver to the top echelons of international business.

New mechanisms are currently being developed to providethe Forum and its members with the opportunity offollowing up on specific issues and strengthening theimpact of our activities. For example, 14 BusinessInteraction Groups (BIGs) were held over the last 12 months. Each BIG aims to deepen the process ofmutual interaction of policy-makers of developing countriesand leading multinational businesses. Members of theWorld Economic Forum are invited to participate throughoutthe year in one or several BIGs within their field of interest.Discussions take place face to face with top politicalleaders of countries concerned during the Annual Meetingand are followed up at our relevant Regional Activities.

The Regional Activities are the Forum’s footprints aroundthe world and play a central role in creating more dynamicand investor-friendly environments. These activities alsoprovide a mechanism whereby our regional constituenciescan be engaged in our global community of decision-makers.

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EAST ASIA ECONOMIC SUMMIT, SINGAPORE (13 – 15 OCTOBER 1998)

The seventh East Asia Economic Summit took place in anatmosphere of soul-searching, as leaders from government,business and academia met to define Asia’s new route to come out of the crisis and ensure sustainable growthand global competitiveness. A unique sense of realism permeated the discussions, and resulted in a clear vision of the weaknesses that fed the crisis, the policy measuresthat were needed to correct these weaknesses and thefuture shape of the new economic and business landscape.As Philippine President Estrada noted during the Summit,‘‘The crisis is an opportunity to do more than repair work.’’

Despite the fact that the crisis had not yet bottomed out,the mood at the Summit was cautiously optimistic.Government and business leaders comprehensively outlinedtheir plans for restructuring and reported on the progressachieved to date. Business leaders unveiled responses tothe key challenges ahead for corporate renewal, with aclear recognition that the old ways of doing business in theregion were no longer applicable.

Participants took the opportunity of the Summit to air theirconcerns and make recommendations for solutions to theproblems facing the region. The ‘‘Action Plan for GlobalGrowth and Reform of the World Financial System’’, a blueprint drawn up by some participants for a coordinatedglobal response to the crisis, which included calls for actionfrom the US, Europe and Japan, had a significant impact in the international media and among policy-makers. It wasone manifestation of the extent of open and proactive dialogue that took place.

There can be no doubt that many of the thoughts andideas, as well as the opportunities, that surfaced at theEast Asia Economic Summit have contributed to therenewed phase of expansion in the region. By bringingtogether the key players in the Asian market, the Summitproved to be an excellent catalyst for action.

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INDIA ECONOMIC SUMMIT, NEW DELHI, INDIA (29 NOVEMBER – 1 DECEMBER 1998)

The India Economic Summit (held in partnership with theConfederation of Indian Industry) took place soon after the new government presented its economic and financial priorities and policies. Prime Minister Atal Bihari Vajpayee stressed that India’s economic agenda is now ‘‘depoliticized’’ in order to ensure that reforms are irreversible. He then presented his 12-point programme toenable India to ‘‘face the challenges of full liberalization and globalization’’.

In other major sessions, the Ministers of Finance, Industryand Power, the Vice-Chairman of the State PlanningCommission as well as many senior government officialspresented their priorities and action plans and had intensivedebates with the 500 Indian and international business participants taking part in the Summit. Other importantdimensions were sessions with four chief ministers frommajor Indian States and a special seminar on investmentopportunities in Sri Lanka.

To conclude the Summit, the four co-chairmen presented a list of recommendations to the Indian decision-makers,the strongest of which was ‘‘implement fast all the neweconomic policies and laws announced towards liberaliza-tion and opening up of the economy to allow domestic andforeign investment to grow and contribute to India’s prosperity’’.

Six months after the 1998 Summit, the government lost a vote of confidence. New elections have since takenplace. The India Economic Summit 1999 will offer us theoccasion to meet the new government.

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USA MEETING, WASHINGTON DC(14 – 15 APRIL 1999)

This year's USA Meeting offered over 200 senior businessleaders from some 27 countries a virtually unparalleled perspective of the United States economy and its role in

the world. The theme of the meeting, Operating in the

New Global Market Place , focused on the impact thatglobalization was having on the US economy, and how firms – both domestic and international – were adapting.

Four members of the Cabinet and a host of other seniorgovernment officials shared their insight with participants.While there was general satisfaction with the currentstrength of the US economy among members of theAdministration, they also stressed the need for otherregions of the world, in particular Europe and Japan, toproceed urgently with structural reforms of their economiesin order to stimulate demand worldwide.

During the 24-hour gathering, participants also discussed a number of management topics critical to maintain a competitive edge in today's unforgiving businessenvironment. These included a look at the future of industry consolidations, the prospect for various currency regimesand monetary policy in general, and the need to constantlypromote innovation in today's companies.

The meeting reflected much of the ambivalence felt bybusiness leaders in today's economy: an admiration for thesuccess of the US economy in the last decade, especiallythe conduct of the Federal Reserve, but also concern aboutsome of the financial instability that persists worldwide andthe fragility of the global economy.

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CHINA BUSINESS SUMMIT, BEIJING AND SHANGHAI(25 – 28 APRIL 1999)

The Forum’s nineteenth China Business Summit was organized in partnership with the State Economic and TradeCommission and China Enterprise Confederation. It tookplace in the context of general economic slowdown anddeepening deflationary pressures. The future of WTO negotiations and the growing discrepancies between theChinese leadership’s longer-term and short-term economicimperatives provided a backdrop for most of the discussions.

Several sessions were devoted to the renewed urgency toreflate the economy and reinvigorate domestic demand. A new fiscal boost, the viability of interest rate cuts and thepros and cons of potential exchange rate adjustments wereamong the hotly debated topics. Considerable attention wasalso paid to the current state of the key economic reforms:state enterprises, housing, insurance, the labour marketand the promotion of private business. Chinese businessparticipants engaged in networking with the members of the World Economic Forum, discussing a range of innovations and novel ideas in a series of sessions onbranding, R&D, e-commerce and corporate governance.

The second part of the Summit in Shanghai focused morespecifically on the development of the financial industry as the backbone of China’s modernizing economy. Thecomplementary needs to deepen fixed-income markets, further develop fund management industry and strengthenthe banking system’s intermediating role were stressed inan interactive exchange between decision-makers, expertsand foreign participants. The Summit was an excellentopportunity to meet the growing group of young, successfulMainland entrepreneurs whose ideas and achievements willundoubtedly mark the coming century.

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SMERCOSUR ECONOMIC SUMMITS, BUENOS AIRES,ARGENTINA (21 – 23 JULY 1998) AND SANTIAGO,CHILE (5 – 7 MAY 1999)

The fourth and fifth Mercosur Summits took place withinthe same fiscal year. They reflected the full commitment of heads of state from the Mercosur region and associatecountries to support the Forum’s initiative to promote the interface between senior executives from member companies and regional political and business leaders.

The Mercosur Summit – Davosito as it is known in LatinAmerica – has now truly established itself as the majoryearly event in the region.

Our Summits in Buenos Aires and Santiago took place inthe context of two very different momenta in SouthAmerica. In Buenos Aires, key discussion leaders as well asthe business community debated the consequences of theAsian crisis on the Mercosur economies and highlighted theimportance of promoting the region’s competitivenessthrough the improvement of physical infrastructure.

In Santiago, on the other hand, discussions focused on the lessons learned from the Brazilian crisis and its efficientmanagement to avoid new shocks. The issues of politicalstability in the region and the upcoming presidential elections in the Southern Cone were also on the agenda.

Issues such as the Free Trade Agreement of the Americasand the EU-Mercosur free trade negotiations were raised atboth Summits. The negotiation process for both initiativeshas advanced more slowly than expected, which is a sourceof frustration for leaders in the Mercosur region. However,the long-term strategy of cooperation with the two largestintegrated markets in the world is the best guarantee tosecure domestic and foreign investment as well as a steptowards stability.

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CENTRAL AND EASTERN EUROPEAN ECONOMIC SUMMIT, SALZBURG, AUSTRIA (30 JUNE – 2 JULY 1999)

The Central and Eastern European Economic Summit convened for the fourth time in Salzburg, Austria, from 30 June – 2 July 1999 in an atmosphere of hope and cautious optimism. Hope that the end of the Kosovo conflict would lead to committed action for reconciliationand reconstruction. Optimism because the crisis hadopened the possibility of a new beginning and a new focuson the integration of the region. Above all, it had pointed to the need to expand the scope of thinking about theshape of a larger Europe.

The meeting brought together over 800 business and political leaders, top experts and opinion-makers from themedia to discuss the burning issues on the region’s agenda. As in past years, President Thomas Klestil ofAustria extended his patronage to the Summit, which wasattended by most of the presidents and prime ministers ofthe region. The overriding importance of the war in Kosovoas a defining moment in post Cold War history cast a newlight on questions such as accession to the EuropeanUnion, investor confidence in the transition economies andsecurity challenges of the next decade. For the first time,issues relating to the whole of Europe, including theprospects of Western Europe’s economic growth rates werealso taken into account.

Russia’s place in Europe was prominently highlighted by thelargest ever high-level representation from that country tothe Summit. Then Prime Minister Sergei Stepashin came to deliver his first public speech in the West stressing hisnew reform programme for Russia and the key role of his country in Europe.

Very concrete business issues such as investment opportunities in new privatizations, the battle against corruption, the restructuring of the banking systems, theprospects for stock market recoveries, the development ofinformation technologies and the financing of futureinfrastructure projects remain the backbone of the delibera-tions and were extensively discussed during the sessions.They will be on the agenda again in 2000 when theSummit will reconvene in Salzburg. The Summit hasbecome the unique annual meeting place for the businessand governments of the region and beyond. It is now firmlyestablished as an indispensable part of the calendar year.

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SOUTHERN AFRICA ECONOMIC SUMMIT, DURBAN,SOUTH AFRICA (4 – 6 JULY 1999)

The ninth Summit was held under the theme Responsible

Leadership for Stability, Action and Growth . Amere three weeks after the elections in South Africa theentire South African Cabinet led by the new President,Thabo Mbeki, was introduced for the first time to our mem-bers and the international business community. Nigeria’s new Vice-President was our special guest along with 850 businessand political leaders from the region and abroad. Threebroad challenges were scrutinized and discussed with aview of finding solutions and actions to bring about a newdynamic to the business environment in Southern Africa:

The need for a comprehensive plan for regional integration.South African President Thabo Mbeki engaged his government to present a timetable and plan by June 2000.

The urgent need to increase capacities in all areas of eco-nomic and political activities with the necessary institutions.

Devising new and better communication strategies with the rest of the world, as it is clear that Africa does not yethold the place it should in the boardrooms of internationalcompanies.

The World Economic Forum has built the strongest andhighest level network of international and regional leaderscommitted to improving Southern Africa. This yearly gathering has achieved global recognition as the ‘‘must’’meeting for those wishing to play a role in this desirableobjective. The world simply cannot afford to ignore Africaand Africans cannot ignore the ever-accelerating pace ofchange required to achieve and maintain a competitiveenvironment. The Summit and the process that it createsallows all stakeholders in the region to explain their viewsand objectives, their concerns and constraints and, moreimportantly, to lock their brains together to seek solutionsthat end up in win-win situations. The Summit also allowsus to confront perceptions with realities and, in so doing, to create better understanding between those who are ultimately charged with the responsibility of bringingSouthern Africa forward.

The Southern Africa Economic Summit 2000 will onceagain take place in Durban (from 21-23 June) allowing usnot only to see how much progress will have been achievedin Southern Africa but also to investigate means andprocesses through which a real African Renaissance can be kick-started. In this respect, next year’s Summit will

also feature the launch of our Africa Competitiveness

Report 2000 .

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GRUSSIA MEETING, MOSCOW (4 – 5 DECEMBER 1998)

In keeping with the World Economic Forum’s consistentsupport of Russia’s integration into the global economy, the sixth Russia Meeting in Moscow was convened to givethe members of the World Economic Forum a first-handassessment of the critical economic and political crisis following the drastic currency devaluation and sudden debtmoratorium that had shaken the country since August1998. It was important for our member companies to be inRussia to understand how the achievements of reformcould have been undone so quickly, whether they could besalvaged and what useful action could be taken.

Russia’s most senior government, parliamentary and business leaders outlined the state of the economy, itsprospects for the near future and the outlook for a teetering banking system. As Russia headed into a year oflegislative and presidential elections, the various scenariosfor future political development were also considered. In hisopening statement, then Prime Minister Yevgeny Primakovdirectly addressed some of the key concerns of foreigninvestors including how the liquidity crisis would be tackled,what would be the fate of the banking system, what thefuture holds for Russia’s industrial structures and whetherthe upcoming election period would bring increasinginstability. Specific measures were pledged to resolve thesevere financial crisis and specifically to reduce the federalbudget deficit, to reform taxes, to facilitate foreigninvestment and to address the problem of capital flight.

Vladimir Ryzhkov, First Deputy Chairman of the State Duma,stressed the need for political reform. Grigory Yavlinsky,Head of the Yabloko Movement, pointed out that with allthe emphasis placed on economic change, the sociologicaland political development of Russia had been tragicallyignored. Political parties, civil institutions and important legislative measures had yet to be created.

In conclusion, the meeting’s one Russian and two non-Russian co-chairmen specified seven key priorities forimmediate action. Taking place at a low point in investorconfidence in Russia, the meeting provided a unique occasion for our members to re-establish relationships and to engage in a meaningful exchange with a broadspectrum of Russia’s business and political leadership.

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Major advances have been achieved in the Global Leadersfor Tomorrow (GLT) programme over the past year. TheGLT network, for which 100 individuals are recruited eachyear, represents the new generation of global decision-makers from business, politics, civil society, academia andthe media.

The GLTs have been systematically incorporated into all theWorld Economic Forum’s activities. During their meeting in Davos in February they decided to launch a number of initiatives and task forces on issues related to key challenges that they have identified as we enter the 21st century. This move was a continuation of a processlaunched with the ‘‘Wake Up Europe’’ initiative brought forward by a group of European GLTs to assess and definethe success factors for a prosperous and stable Europe,which has started a debate in Europe. The initiatives decided in Davos ranged from launching a project to establish criteria for measuring environmental performanceindicators to a ‘‘Business of Cooperation’’ initiative whichaddresses the role of business in fostering political stabilityand cooperation that in turn can benefit companies’ financial bottom line. As another example, the initiative on‘‘Technology to Alleviate Poverty’’ is identifying the roletechnology can take to help developing countries addresstheir problems. It was decided that these initiatives wouldbe reviewed during a GLT Summit in Paris (3-5 September1999).

The uniqueness of the GLT network will ensure that weaddress the key challenges in an integrated and interdisciplinary way, drawing on the diversity, creativity anddynamism of the GLT network. The GLT initiatives will beintegrated into our programmes, providing the Foundationand its members with an in-depth knowledge of some ofthe key issues our society is facing by discussing theseissues with the new generation of leaders, the GLTs.

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SINITIATIVESTransition to Peace

At the 1999 Annual Meeting in Davos, 60 young leadersfrom Bosnia and Herzegovina, the Middle East, NorthernIreland and South Africa – regions that have made politicalbreakthroughs in the transition to peace from conflict –gathered together under the framework of the Transition toPeace Initiative. Jointly launched by the World EconomicForum and the Peres Center for Peace, this initiativeprovides an important vehicle for generating greaterinterregional cooperation and exchange. It will also facilitateeconomic relations and political dialogue between theseregions and the international community.

Since gathering in Davos, Transition to Peace participantshave continued to meet within each region. The WorldEconomic Forum integrated one such meeting into the1999 Southern Africa Economic Summit held in Durban,South Africa. Young South African business, civil societyand political leaders met for a day and a half prior to theSummit to examine strategies for social and economicdevelopment in their country. Leaders from the otherTransition to Peace regions joined the South Africans inorder to share the knowledge gained at the meeting withcolleagues in their home countries.

Transition to Peace participants are currently developing aconceptual framework for peacebuilding that integrates thecommon lessons each region has learned from their peace-making efforts. A newly launched website will make thisinformation freely available to individuals and organizationsfrom areas experiencing similar transitions in addition toeveryone in the four participating regions. With this initiative the World Economic Forum strengthens the global community by assisting the political and economic stabilization of post-conflict regions.

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Business Community Responds To KosovoRefugee Crisis

As the severity of the Kosovo crisis increased at the end ofMay 1999, the World Economic Forum initiated a uniqueeffort to assist the United Nations High Commissioner forRefugees (UNHCR) in its work to coordinate the relief effort.In a letter to members, Professor Klaus Schwab articulatedhis personal concern for the crisis and offered to facilitate the donations of the global business community into thelarge-scale integrated humanitarian action.

The Forum’s membership responded quickly with personaland corporate contributions of approximately US$ 1 million toa special fund set up for the UNHCR. In addition, membercompanies directly donated at least US$ 10 million in cashand in kind to their respective in-country aid agencies workingin the Balkans. These donations showed that not only is thecivic responsibility of business alive and well, but also thevalue of strategic partnerships between the private sector andhumanitarian organizations.

UN High Commissioner Mrs Sadako Ogata, who participatedin the 1999 Annual Meeting in Davos and presented thelonger-term challenges to incorporating refugee issues intothe global business agenda, commended the businesscommunity’s response to the Forum’s initiative. Mrs Ogatacommented, ‘‘I hope this endeavour from the world's businessleaders serves as an example for mobilizing private efforts on behalf of refugees and displaced people not only fromKosovo, but throughout the world. I have often noted that the response to humanitarian problems as we move towardsglobalization requires global solidarity. Thank you forstrengthening this solidarity with your actions today.’’

The World Economic Forum highlighted the plight of refugeesand the Kosovo conflict in its June 1999 Central and EasternEuropean Economic Summit in Salzburg, Austria. The Forumwill continue to address the Balkan situation and similar issuesin its forthcoming Summits in recognition of the positive rolethat business plays on the international political stage.

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MEMBERS OF THE FOUNDATION BOARD

KURT ALIG, Chartered Accountant, Arcadia Treuhand, Switzerland; Secretary of the Foundation Board

PERCY BARNEVIK, Chairman of the Board, ABB Asea Brown Boveri, Switzerland; Chairman, Investor AB,

Sweden; Vice-President of the Foundation Board

RAYMOND BARRE, Former Prime Minister of France; Mayor of Lyon

RONNIE C. CHAN, Chairman, Hang Lung Development Company Ltd, Hong Kong SAR

GUY FONTANET, Lawyer; Former President of the State Council of Geneva; Legal Adviser of the

Foundation Board

NOBUYUKI IDEI, President and Representative Director, Sony Corporation, Japan

M. DOUGLAS IVESTER, Chairman and Chief Executive Officer, The Coca Cola Company, USA

HELMUT O. MAUCHER, Chairman of the Board, Nestlé SA, Switzerland; Vice-President of the

Foundation Board

JEAN-MARIE MESSIER, Chairman and Chief Executive Officer, Vivendi, France

FERDINAND PIECH, Chairman of the Board of Management, Volkswagen AG, Germany

HEINRICH VON PIERER, President and Chief Executive Officer, Siemens AG, Germany

KLAUS SCHWAB, President of the Foundation Board

MAURICE F. STRONG, Chairman, Earth Council, Canada; Former UN Undersecretary General

PETER SUTHERLAND, Chairman, Goldman Sachs International, United Kingdom; Co-Chairman, BP Amoco

PLC, United Kingdom

WILLIAM I. M. TURNER, Chairman and Chief Executive Officer, Exsultate Inc., Canada; Vice-President of

the Foundation Board

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EXECUTIVE BOARD OF THE WORLD ECONOMIC FORUM

Klaus Schwab, President and Founder

Claude Smadja, Managing Director

Gregory Blatt, Director

Barbara Erskine, Director

Frédéric Sicre, Director

COUNCIL OF THE WORLD ECONOMIC FORUM

JOSEF ACKERMANN, Member, Managing Board, Deutsche Bank AG, Germany

KHALID A. ALIREZA, Executive Director, Xenel Industries Ltd, Saudi Arabia

ABIDIN AZIZAN, Chairman, Petronas, Malaysia

RAHUL BAJAJ, Chairman and Managing Director, Bajaj Auto Limited, India

FRANCO BERNABE, Member of the Board, Fiat, Italy

SIR JOHN BOND, Group Chairman, HSBC Holdings Plc, United Kingdom

SIR JOHN BROWNE, Group Chief Executive, BP Amoco Plc, United Kingdom

JOHN H. BRYAN, Chairman and Chief Executive Officer, Sara Lee Corporation, USA

HUBERT BURDA, Publisher and Chief Executive Officer, Burda Media, Germany

VICTOR L.L. CHU, Chairman, First Eastern Investment Group, Hong Kong SAR

BERTRAND COLLOMB, Chairman and Chief Executive Officer, Lafarge, France

M. SHAFIK GABR, Chairman and Managing Director, Artoc Group for Investment and Development, Egypt

JOSEPH T. GORMAN, Chairman and Chief Executive Officer, TRW Inc., USA

JAAKKO IHAMUOTILA, Executive Director, Fortum Corporation, Finland

E. NEVILLE ISDELL, Chairman and Chief Executive Officer, Coca-Cola Beverages Plc, UK

DONALD R. KEOUGH, Chairman, Allen & Co., USA

NEMIR A. KIRDAR, President and Chief Executive Officer, Investcorp, Bahrain

YOH KUROSAWA, Chairman of the Board, Industrial Bank of Japan Ltd, Japan

SIR MARTIN LAING, Chairman, John Laing Plc, United Kingdom

G. LANGES-SWAROVSKI, Chairman, Daniel Swarovski Corporation, Austria

KENNETH L. LAY, Chairman and Chief Executive Officer, Enron Corporation, USA

CHRIS F. LIEBENBERG, Chairman, Nedcor Limited, South Africa

GEORGE W. MALLINCKRODT, President, Schroders Plc, United Kingdom

ARNE MARTENSSON, President and Group Chief Executive, Svenska Handelsbanken, Sweden

YUZABURO MOGI, President and Chief Executive Officer, Kikkoman Corporation, Japan

MARK MOODY-STUART, Chairman, Royal Dutch/Shell Group of Companies, United Kingdom

HUGH M. MORGAN, Managing Director, WMC Limited, Australia

MINORU MUROFUSHI, Chairman, Itochu Corporation, Japan

HASSO PLATTNER, Co-Chairman and Chief Executive Officer, SAP AG, Germany

DAVID DE PURY, Chairman of the Board, De Pury Pictet Turrettini & Co., Switzerland

JAMES J. SCHIRO, Chief Executive Officer, PricewaterhouseCoopers LLP, USA

PAULO D. VILLARES, Chairman of the Board, Industrias Villares SA, Brazil

LORENZO H. ZAMBRANO, Chairman and Chief Executive Officer, Cemex, Mexico

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3m CompanyA.T. Kearney Inc.ABB LtdABN Amro Bank NVABSA Group LimitedAccel PartnersAchmea GroupAcindar SAAckermans & Van HarenAcnielsen CorporationAdecco GroupAdiraAdolf Würth GmbH & Co. KGAegon NVAerospatiale MatraAga ABAgra Inc.Agrolimen SAAicher GroupAkebono Brake Industry Co. LtdAl Mulla Group of CompaniesAl-Ahli Commercial BankAlcan Aluminium LimitedAlcatelAlfaAlinco CorporationAlliance Capital ManagementInternationalAllied Bank of Pakistan LimitedAllied Irish Banks Plc (AIB)Allstate CorporationAlma Media CorporationAlmazy Rossii-Sakha Company LtdALSO Holding AGAlusuisse Lonza Group AGAmcor LimitedAmerica Online Inc.American Express Bank, LtdAmerican Fiber ManufacturersAssociationAmerican General CorporationAmerican Management Systems Inc.American Water WorksCompany Inc.Ameritech InternationalAmrad Corporation LtdAndersen ConsultingAndré & Cie SAAnglo American Corporation of South Africa LtdAnglogold LtdAnglovaal Mining LimitedAon CorporationApasco SA de CVApax Partners & Co. AGArabian Light Metals KSCAracruz Celulose SAArcor Saic ArgeArrow Electronics Inc.Arthur AndersenArthur D. Little Inc.Artoc Group for Investment and DevelopmentASB GreenworldAscom Management AGAshanti Goldfields Company LtdAsian Paints (India) LimitedAT&T CompanyAtlantic Richfield Company (ARCO)AtosAttias Holding SAAtwood Richards Inc.Audi AGAustralia and New Zealand Banking Group Limited (ANZ)Australia PostAutonomous Government of CataloniaAutosur SAAVL List GnbHAxaAxa UAPAxel Johnson ABAyala CorporationAyala Land Inc.Azizler Holding ASBAA PlcBabcock Borsig AGBacardi LimitedBahrain Petroleum Company BSC

Bain & Company Inc.Bajaj Auto LimitedBajaj Electricals LimitedBaker & McKenzieBallarpur Industries LtdBalli Group PlcBaloise-HoldingBanco Bilbao Vizcaya SA (BBV)Banco del DesarrolloBanco MercantilBanco Santa Cruz SABanco Santander Central HispanoBanco Union SABank Austria AGBank Handlowy W Warszawie SABank J. Vontobel & Co. AGBank of AmericaBank of Bermuda LimitedBank of Jerusalem LtdBank of MontrealBank Saint Petersburg PlcBanque Cantonale de GeneveBanque de Luxembourg SABanque et Caisse d'Epargnede l'EtatBanque Générale du Luxembourg SABanque Internationale à Luxembourg SABanque OBC Odier Bungener Courvoisier Banque Pasche SABanque Privée Edmond de Rothschild SABarclays Bank PlcBarco NVBarrick Gold CorporationBass PlcAl Basti & Muktha LtdBata Schuh AGBaxter International Inc.Baybg Bayerische Beteiligungsges.MbhBechtel Group Inc.NV Bekaert SABell Atlantic CorporationBermuda GovernmentBertelsmann AGBestfoodsBG Bank A/SBG PlcBharat Forge LimitedBIG Bank Gdanski SABIG Flower Holdings Inc.Billiton PlcBinder-Optik AktiengesellschaftBiopharm/SAEGBirkart GlobisticsBiwater PlcThe Blackstone GroupBloomberg LPBMC Software Inc.The Boeing CompanyBolsa Mexicana de Valores SA de CVBombardier Inc.Bonlac Foods LimitedBoots Company PlcBooz, Allen & Hamilton Inc.Bordier et CieBossard Holding AGThe Boston Consulting Group Inc.Bouygues SABovis Construction GroupBP Amoco PlcBRE Bank SABridas CorporationThe Bristol CompanyBritish Aerospace PlcBritish American Tobacco PlcBritish Columbia Hydro and Power AuthorityBritish Steel PlcBroadviewBroken Hill Proprietary Co. LtdBrown Brothers Harriman and Co.BrunswickBSI-Banca della Svizzera ItalianaBT PlcBTG PlcBudimex SA

Bufete Industrial SABuhrmann NVBunge InternationalBurda MediaBureau Veritas GroupBurger Soehne AG BurgBusiness Council on National IssuesCaisse des Dépôts et ConsignationsCaisse Nationale de Crédit Agricole(CNCA)Caixa d’Estalvis de CatalunyaCaixabankCaixa-Geral de Depositos GroupCaltex CorporationCanadian National Railway CompanyCanadian Pacific LimitedCanal PlusCantor Fitzgerald LPCapital Group Companies Inc.Cargill Inc.Carl ZeissCarlo Gavazzi Holding AGCarlsmith Ball S.C.Carlson Companies Inc.Caterpillar Inc.Cedel InternationalCelanese Canada Inc.Celsa GroupCelsius CorporationCemexCentral Bank of the Republic of TurkeyCentral Bank of VenezuelaCentrica PlcCentunionCeres Hellenic Shipping Enterprises LtdChargeursThe Charles Schwab CorporationChase Manhattan CorporationChevron CorporationChicago Mercantile Exchange (CME)China Everbright Holdings Company LtdChina International Trust and Investment Corporation (CITIC)China State Construction Engineering CorporationChiyoda CorporationCiech SACigna CorporationCiments FrançaisCimpor - Cimentos de Portugal SGPS SACisneros Group of CompaniesCitibank NACLT-UFA (RTL)The Coca-Cola CompanyCoca-Cola Enterprises Inc.Coflexip Stena OffshoreCoinvertir - Corporacion Invertir enColombiaCold Metal Products CompanyColonial LimitedComalco Aluminium LimitedCommonwealth Bank of AustraliaCommunications Capital GroupCompagnie des SignauxCompagnie Financière Edmond de Rothschild BanqueCompaq Computer CorporationCompass Group PlcComputer Associates International Inc.Conseil Alain Aboudaram SAConsolidated Contractors Company (CCC)Consoltex Group Inc.Consultores Asset ManagementContinental AGCookson Group PlcCorel CorporationCoril Holdings LtdCorning IncorporatedCorporacion Andina de Fomento (CAF)Corporación Nacional del Cobre de Chile (Codelco Chile)Corporación Zapata Cardenas SA de CVCosco (Hong Kong) Group Limited

MEMBER COMPANIES

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Council for Scientific and Industrial Research (CSIR)Coutts Bank (Switzerland) LtdCox Oil Inc.CPR GroupCrédit Agricole IndosuezCrédit Suisse GroupCrosby Holdings LimitedCrossairCultor CorporationCumberland Associates LLCGrupo Cydsa SA de CVDabbagh Group Holding Co. LtdDaewoo Corporation (Corporate)Dah Sing Financial Holdings LtdDaily Mail & General Trust PlcDaimlerchrysler AGDamen ShipyardsDana CorporationDanfoss A/SDankner GroupGroupe DanoneDanzas Holding LtdDar Al-Maal Al-Islami (DMI) SADarier Hentsch et CieDashwood GroupDassault AviationData General CorporationThe De Beers Group of CompaniesDe Brauw Linklaters & AllianceDe La Rue PlcDe Pury Pictet Turrettini & Co. LtdDEG - German Investment and Development CompanyDelco Remy International Inc.Délégation aux Investissements Internationaux FranceDell Computer CorporationDeloitte Touche TohmatsuDeme GroupDen Danske Bank A/SDenel (Pty) LtdDERA - Defence Evaluation and Research AgencyDeutsche Bank AGDeutsche Börse AGDeutsche Post AGDeutsche Telekom AGDeutscher Investment-TrustDevelopment Bank of SingaporeDevelopment Bank of Southern AfricaDexiaDHL Worldwide Network NV/SADiethelm & Co. LtdDimension Data HoldingsDisco Ahold International Holdings NVDogan Group of CompaniesDonaldson, Lufkin and JenretteR.R. Donnelley & Sons CompanyDoughty Hanson & Co.Dow Corning CorporationDow Jones and Company Inc.Dresdner Bank AGDresdner Kleinwort BensonDTZ ZadelhoffDuchossois Industries Inc.The Dun and Bradstreet CorporationDuPontDuratex SAE*Trade Group Inc.E.A. Juffali and BrothersEastman Chemical CompanyEastman Kodak Company Eaton CorporationEdelman PR WorldwideEDS (Electronic Data Systems) Corp.EFE Handels GmbH & Co. KGEgmont GroupEgon Zehnder InternationalEicher Goodearth LimitedEIH LimitedElectricité de FranceElektra SA de CVElf AquitaineEli Lilly and CompanyElron Electronic Industries LtdEmirates Bank International PJSCEmirates GroupEmirates Holdings

Empire Company LimitedEmpresas Petroleo IpirangaENEL SpAEngen LtdENI SpAEnka Holding Investment Co.EnronEntertainment Media Ventures Inc.Entreprise Rhône-Alpes InternationalTelefonaktiebolaget LM EricssonErnst & Young LLPEskomEspirito Santo Financial Group SAEssar GroupEuropean Finance Associates LtdEurope-Argentina ClubEutelsatExecutive Jet Inc. / NetjetsExel LtdExport Development CorporationThe Export-Import Bank of JapanExsultate Inc.Exxon Company InternationalEZZ IndustriesFabrimetalFalck GroupFederation of Korean Industries (FKI)Fedsure Holdings LtdFelix Schoeller Holding GmbH & Co. KGFerrero SpAFerrier Lullin et Cie SAFerrostaal AGGrupo Ferrovial SAFesto AGFiat SpAFIEL - Latin American Economic Research FoundationFima/ VG - Distribuição deProdutos Alimentares LDAFintraco Insaat Ve Ticaret ASFirst Eastern Investment GroupFirst HealthFirstrand LtdFlandersFletcher Challenge LimitedFLS Industries A/SFluor CorporationFomento Económico Mexicano SA de CV (FEMSA)Forbes Inc.Ford Motor CompanyFortisFortum CorporationFoundation Calouste GulbenkianFrance TelecomFrank Russell CompanyFreshfieldsFundación Invertir ArgentinaFuture Pipe Industries B.V.Gafisa Participações SAGaumontGaz de FranceGefinor GroupGembel European Sales NVGenbel Securities Ltd (Gensec)General Electric Company Plc (GEC)General Mills Inc.General Motors CorporationGenerali (Switzerland) HoldingGeodisGeorg Fischer AGGeorgsmarienhütte Holding GmbHGerling GroupGibson, Dunn & CrutcherGKN PlcGlencore International AGGlobal Telesystems Group Inc.Global Texas Investments LtdGodrej & Boyce Mfg Co. LtdGodrej Soaps LimitedGoldman Sachs & Co.Göteborgs PostenGovernment of ManitobaGovernment of OntarioGranaria Holdings BVGrant Thornton LLPGreaves Limited

Groupe GTMGroupe Office Cherifien des PhosphatesGrupo Embotelladoras Unidas SA de CVGrupo ICA SA de CVGrupo Industrial Bimbo SA de CVGuardsmark Inc.Gulf Investment CorporationGulfstream Aerospace CorporationPT Gunung Sewu KencanaH.Y. Louie Co. LimitedHaarmann, Hemmelrath & PartnerHalifax PlcHamza Alkholi GroupHang Lung Development Company LimitedHarsco CorporationHCL Corporation LtdHead Tyrolia MaresHeidrick & Struggles International Inc.Heijmans NVHeineken NVHellman Worldwide Logistics GmbH & Co. KGHenkel KGAAHeracles General Cement Co. SAHero GroupHeung Kong Group LtdHewlett-Packard CompanyHilti CorporationHinduja Group of CompaniesHindustan Construction Co. LtdHochtief AGHolderbank CementHoneywell Inc.Hughes Space & Telecommunications International Inc.Hungarian Development Bank LtdHyatt CorporationHydro-QuebecHymmen GroupIberdrolaIBM CorporationIBM Japan LtdICEP - Investments, Trade and Tourism of PortugalICM Australia Pty LtdIHC Caland NVIhlas Holding SACorporación ImpsaIMS - HealthINA Wälzlager Schaeffler oHGInchcape PlcIndian Oil Corporation LtdIndian Petrochemicals Corporation LtdIndrecoIndustri Kapital LtdIndustrial Bank of Japan LtdIndustrial Development Corporation of South Africa Ltd (IDC)Industrias Villares SAInformation Security ForumING GroupIngosstrakh Insurance Company LtdIntel CorporationIntelsatInterbrew NVInter-Europa Bank RTInterface Inc.International Chamber of CommerceInternational Finance Corporation (IFC)Interturbine Group of CompaniesIntuit Inc.InvestcorpInvestec Bank LtdInvesticní a Postovní Banka AS (IPB)Investor ABInvicta SpAIPSCO Inc.Ispat Industries LimitedISS-International Service System A/SItalcementi SpAITC LimitedItochu CorporationITT Industries Inc.

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J.B. Were & SonJ.K. Industries LimitedJ.P. Morgan & Co. Inc.Jagatjit Industries LimitedJamyco Holding Luxembourg SAJapan National Oil CorporationJcdecaux InternationalJerónimo Martins SGPS SAJoannou & Paraskevaides (Overseas) LtdJohannesburg Stock ExchangeJohn Laing PlcJohnson Matthey PlcJones, Day, Reavis & PogueGrupo Kahan AutomotrizKansai Electric Power Company Inc.Karl Steiner Holding AGKeizai DoyukaiKeramik Holding AG LaufenKesko CorporationKhemka UK LimitedKhimji Ramdas GroupKikkoman CorporationKimball International Inc.Kirloskar Electric Company LimitedKirloskar Oil Engines LimitedKlinge Stiftung und Co. Holding KGKoninklijke Hoogovens NVKonoike Construction Co. LtdKorn/Ferry InternationalKotak Mahindra Finance LtdKoyo Seiko Co. LtdKPMGKraft Foods InternationalKudelski SAKumpulan Guthrie BerhadKuoni Travel Holding LtdKuwait Industries Co. HoldingKuwait International Investment Co.Kuwait Investment AuthorityKuwaiti Danish Dairy Company WLLKuwaiti Interests for Financial Investments KSCKWV (Pty) LtdLafargeLahoud Engineering Co. LtdLandesbank Rheinland-PfalzLarsen & Toubro LimitedLazard Creditcapital LtdLear CorporationLegler Holding SpALehman Brothers Inc.Lend Lease Corporation LtdLeo A. DalyLeonia PlcLFA Förderbank BayernLGT Bank in Liechtenstein AGThe LNM GroupLoeff Claeys VerbekeLoews CorporationLohr SALombard, Odier et CieLondon Stock ExchangeLyonnaise de BanqueMagna International Inc.Manpower Inc.MantracManufacturers’ Association of IsraelGrupo MarhnosMarinopoulos BrothersMarks & Spencer PlcMarquard & Bahls AGMarsh Supermarkets Inc.Marubeni CorporationMarval, O’Farrell & MairalMary Kay Holding CorporationMastercard International IncorporatedMatav RTMavesa SAMayne Nickless LimitedMaytag CorporationMcCarthy TetraultMcDonald’s CorporationMCI Worldcom Inc.McKinsey & Company Inc.Media MostMedtronic Inc.Memorial Sloan-Kettering Cancer Center

Merck & Co. Inc.Meritanordbanken PlcMerloni Elettrodomestici SpAMerrill Lynch & Co. Inc.Metsa-Serla CorporationMexican Investment BoardGrupo Mexicano de Desarrollo SAMG Kailis GroupMicrosoft CorporationMillennium Chemicals Inc.Milliken & CompanyMinistry of Finance and National Economy of Saudi ArabiaMinistry of Industry, Commerce, Science and Technology of QuebecMitsubishi Electric CorporationMitsubishi Materials CorporationMobil CorporationGrupo Modelo SA de CVModi EnterprisesMoet HennessyMolex IncorporatedMondial InternationalMonitor GroupMonsanto CompanyMonteiro Aranha SAMoore Corporation LimitedMoquet Borde & AssociesMorgan Stanley Dean Witter & Co.Motorola Inc.MRH Mineraloel-Rohstoff-Handel GnbHMSX InternationalMue-Li AGMukand LimitedMurray & Roberts Holdings LtdMutual of AmericaNabisco Group Holdings Corp.Nahas Enterprises GroupNanyang Commercial Bank Ltd SARNasdaq Stock Market Inc.National Australia Bank LtdNational Bank for Foreign Economic Activity of the Republic of UzbekistanNational Bank of EgyptNational Council of Youth and FutureNational Power PlcNational Reserve BankNational Swedish Pension FundNational Westminster Bank PlcNationwide Insurance EnterpriseNCC ABNedcor LimitedNeftekhimprom Financial Industrial GroupNestlé SANew Corange LtdNew York Stock Exchange Inc.Newmont Mining CorporationNGK Insulators LtdNicco Corporation LtdNihon Keizai Shimbun Inc. (Nikkei)Niki SA MarinopoulosNKT Holding A/SNomura Securities Co. LtdNortel NetworksNova Chemicals CorporationNovartis AGNovell Inc.Novo Nordisk ASNTT CorporationObo Bettermann GmbH & Co.Oce NVOerlikon-Bührle GroupThe Olayan GroupOld MutualOlivetti SpAOman National Investment Corporation Holding (Saog)Omega SAOmron CorporationOracle CorporationOrbitex Investments LimitedOrganización Ardila LulleOrganización RamírezOrmat Industries LtdOsaka Gas Co. LtdOscar de la Renta LtdOtava Publishing Company

Otis Elevator CompanyOTP National Savings and Commercial Bank LtdOutokumpu OyjPaccar Inc.Pacific Century GroupPalliser Furniture LtdPanamerican Beverages Inc.ParibasParisbourse SBF SAPartek CorporationPathfinder GroupPaul, Weiss, Rifkind, Wharton and GarrisonPearson PlcPenske CorporationPepsico Inc.Peremba Group of CompaniesPerot Systems CorporationPetroleo Brasileiro SA PetrobrasPetroleos de Venezuela SAPetronas (Petroliam Nasional Berhad)Pfizer Inc.PharosPhilip Morris Companies Inc.Philipp Holzmann AGPhillips Petroleum CompanyPhoenix Overseas LimitedPictet & Cie Private BankersPilkington PlcPirelli SpAPlacer Dome Inc.Plate Glass & Shatterprufe Industries LimitedEmpresas Polar (Food Division)Port Authority AntwerpPortucel Industrial SAPosten ABPratt IndustriesPremier Automobiles LimitedPremier Inc.PricewaterhouseCoopersPrincipality of MonacoProcter & Gamble Co.Profabril Consulplano Group (PCG)Prosieben Media AGProudfoot Consulting PlcPublicis GroupPulsar Internacional SA de CVQatar National Bank SaqR. Bourgeois SARaiffeisen Zentralbank Oesterreich AG (RZB)Rajshree Group of CompaniesRao Ees RossiiRefco Group LtdReliance Industries LimitedRemy CointreauRenaultRenault V.I.Repsol - YPF, SARépublique et Canton de GenèveReuters Group PlcRheinmetall AGCompagnie Financière Richemont AGRingier AGRio Algom LimitedRio Tinto PlcRiverside Manufacturing CompanyRobeco GroupRobert Bosch GmbHRoche Holding LtdRoemmers S.A.I.C.F.Roland Berger & Partners International Management Consultants GmbHRoscontractRosewood CorporationRossiyskiy Kredit BankRothschild & Cie BanqueRoy M. Huffington Inc.Royal AholdRoyal Boskalis Westminster NVRoyal Dutch/Shell Group of CompaniesRoyal IBCRoyal Numico NVRoyal Packaging Industries Van Leer NVRPG Enterprises LtdRuhrgas AG

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Rustenberg Wine EstateS.W.I.F.T.Sabic - Saudi Basic Industries Corp.Sadia GroupSairgroupSalam Holdings Co. WLLSame Deutz-Fahr SpASamsung CorporationSamuel Group of CompaniesSan Miguel CorporationSandoz Family FoundationSanlamThe Sanmar GroupSanoma-Wsoy OyjSantasalo-Jot CorporationSantos LtdSap AGSappi LimitedSara Lee CorporationSasol LimitedSaudi American Bank (Samba)The Savola CompanySCAC Fundações e Estruturas LtdaScania ABScarbroughsSchindler Holding LtdSchlée Group ASJ. Henry Schroder & Co. LimitedSchroder VenturesScorSeiko Instruments Inc.Seiko Seiki Co. LtdSema Group PlcService Corporation InternationalSG Holding AGSGS Société Générale deSurveillance Holding SASicpa Holding SASidmar NVSiemens AGSigdo Koppers SASilicon Graphics Inc. (SGI)Sino GroupSixt AGSK CorporationSkadden, Arps, Slate, Meagher andFlom LLPSkandinaviska Enskilda BankenSkanska ABSKB Banka DDSmith & Nephew PlcSmithkline Beecham PlcSNC-Lavalin Group Inc.Société Belge des Bétons SASociété de la Bourse de LuxembourgSociété GénéraleSociété Générale de Financement du QuébecSociété Ivoirienne de RaffinageSodexho AllianceGroupe SofresaSoftbank CorporationSOK CorporationSolvay SASonae Investimentos SGPS SASony CorporationSoros Fund ManagementSouth African Breweries PlcSouth African Reserve BankSouthcorp LtdSouza Cruz SAStandard Bank Investment Corporation (Stanbic) LtdStandard Chartered BankStandard Life Assurance CompanyState Bank of Mauritius LimitedState Farm Insurance GroupState Power Corporation of ChinaStatoil Group

Steigenberger Hotels AGStena ABSterling SoftwareSto AGStock Exchange Executive Council (SEEC)Stora Enso OyjStork NVStrategic Investment ManagementSuez Lyonnaise des EauxSulzer LimitedSun Microsystems Inc.Svedala Industri ABSvenska HandelsbankenSwarovski GruppeForeningssparbanken AB (Swedbank)Swiss Exchange (SWX)Swiss Life Insurance and Pension Co.Swiss PostSwiss ReSwisscom AGTad Fin SpATaib Bank ECTallard BVTa-Media AGTata Iron and Steel Co. LtdTechnipTechnobankTelecom ArgentinaTelecom EireannTelecom ItaliaTelefonica de ArgentinaTelefónica SATeleglobe Inc.Telegraph Group PlcTelekurs Holding AGGrupo Televisa SATelkom SA LimitedTengelmann GruppeTetra Laval GroupTetra Pak International SATexaco Inc.TexmacoTextron Inc.The Mcgraw-Hill CompaniesThe Tribune CompanyThominvest OyThomson Multi MediaTiedemanns GroupTiger Management LlcTil LimitedTilleke & Gibbins RopTime Warner Inc.Tirtamas GroupTitan Cement Company SAThe Titan Industrial CorporationTNT Post Group (TPG)Tokai Asia LtdTolaram GroupThe Tongaat-Hulett Group LtdToshiba CorporationTotalToyota Motor CorporationTrader.ComTransneftTransnet LtdTrans-World Group PlcThe Travel CorporationTreviraGrupo Tribasa SA de CVTriveni Engineering & Industries LtdTRW Inc.Tunisian Travel ServiceTurk Dis Ticaret Bankasi AS (Disbank)Turner Steiner International LLCTV AztecaTyumen Oil CompanyUB GroupUBS AG

UHC / Bon AppetitUnited Export-Import Bank (Unexim Bank)Unibanco Holdings SAUnibank ASUnicco Service CompanyUnigestion HoldingUnilever NVUnion Bancaire PrivéeUnion Européenne de CICUnion MinièreUnipart Group of CompaniesUnisys CorporationUnited Group ConsultantsUnited Pan-European Communications NV (UPC)United Parcel Service of AmericaUnited Technologies CorporationUniversity of British ColumbiaUnocal CorporationUpm - Kymmene CorporationUralmash ZavodyUS West Inc.USHA (India) LtdVA Technologie AGValmet Automotive Inc.Valora Holding AGF. Van Lanschot Bankiers NVThe Vancouver Board of TradeVelox GroupVereins- und Westbank AGVienna Airport PlcVimpex Handelsgesellschaft MbhVisa InternationalVisteon Automotive SystemsVitro Sociedad AnónimaVivendiVLSI Technology Inc.Vnesheconombank Bank for Foreign Economic AffairsVolkswagen AGAB VolvoVon Roll Holding LtdVTG Vereinigte Tanklager und Transportmittel GmbHWalchandnagar Industries LtdWarburg Dillon ReadWarner-Lambert CompanyWarsaw Stock ExchangeWatson Wyatt & CompanyWavinWeirton Steel CorporationWeitnauer Holding LtdWesfarmers LimitedWest Merchant Bank LimitedWestdeutsche Landesbank Girozentrale (WestLB)Westfield Holdings LtdWhite & Case LLPWilhelm E.H. BiesterfeldWillett International LtdWillis Corroon Group LimitedWimm-Bill-DannWMC LimitedWPP Group PlcWünsche AGWürttembergische Hypothekenbank AGXenel / Saudi Cable CompanyXenel / Saudi Services and Operation Co.XL Capital LtdYoshinoya D&C Co. LtdYoung and Rubicam Inc.YPF SAYusuf Bin Ahmed KanooZF Friedrichshafen AGZiff-Davis Inc.Zuellig GroupZumtobel AGZürcher KantonalbankZurich Financial Services Group

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KNOWLEDGE PARTNERS

Andersen Consulting

A.T. Kearney

Booz, Allen & Hamilton

Deloitte Touche Tohmatsu

Ernst & Young

Korn/Ferry International

PricewaterhouseCoopers

INSTITUTIONAL PARTNERS

ABB Asea Brown Boveri

Ascom

Audi

Barco

BP Amoco

The Coca-Cola Company

Compaq Computer Corporation

DHL Worldwide Express

DuPont

Intelegis/Kudelski Group

Media Most

Nortel Networks

Novell

Suez Lyonnaise des Eaux

Sun Microsystems

USWeb/CKS

Volkswagen

as of 25 October 1999

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