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QUALITY. INDEPENDENCE. IMPACT.
1775 Massachusetts Avenue, NW
Washington, DC 20036
Brookings
Annual Report 2008
www.brookings.edu
Opportunity 08
May 12, 2008—Washington, D.C.—Energy
Ideas for the Next President
> February 28,
Challenges for the Next President 2007—Opportunity 08:
Opportunity 08 hosts Sen. Lamar Alexander Independent Ideas for Our
for a discussion of energy issues facing the Next President Brookings
next president. partners with ABC News to
Courtesy of the University of Miami
launch Opportunity 08, a
December 5, 2007—Washington, D.C.—The project to help presidential
Youth Vote Opportunity 08 joins with candidates and the public
Harvard University’s Institute of Politics focus on critical issues
Ralph Alswang
to release findings of the Fall 2007 Youth facing the nation.
Survey on Politics and Public Service.
May 22, 2008—Cleveland—
April 7, 2008—Miami—The Future
>
November 16, 2007—Las Vegas—National Security at Home and Abroad The Reforming Health Care:
morning after the Democratic presidential candidates’ debate at the University of the Military With the field of
Improving Quality,
of Nevada, an Opportunity 08 forum features national foreign policy experts and presidential contenders narrowed to
Controlling Costs,
analysts. three, Opportunity 08 looks at the
Expanding Coverage
future of the U.S. military.
Brookings and the
October 17, 2007—Iowa City—Forum on Energy and National Security Cleveland Clinic host an
Opportunity 08 joins the University of Iowa for a forum featuring leading policy September 18, 2007—Washington,
Opportunity 08 forum on
experts on biofuels and energy policy, the environment, and national security. D.C.—Barack Obama The Tax Policy
reforming health care.
>
Center and Opportunity 08 host
Illinois Sen. Barack Obama for a
speech on the economy, opportunity,
and tax policy.
April 28, 2008—Washington,
D.C.—Transportation and the
Economy Opportunity 08 hosts
Linda Edge-Dunlap
Ralph Alswang
Transportation Secretary Mary
Peters for a discussion of America’s
transportation infrastructure.
>
June 7, 2007—Washington,
December 3, 2007—Washington, D.C.—Better Direction on Main Street Brookings January 11, 2008—South Carolina—
D.C.—The Future of
experts and a bipartisan panel of representatives from major campaigns discuss Competitiveness: From Charleston to
Political Communications—
and define the policy issues that cut the widest swath across the majority of China Just a week before the state’s
Connecting with Young
voters. Republican presidential primary,
Voters With the Internet
Brookings hosts an Opportunity 08
rapidly transforming the
September 26, 2007—Manchester, N.H.— > political communications
forum with national economic policy
The Budget Deficit and the Soaring Costs experts and leading political analysts.
landscape, Opportunity 08
of Health Care Opportunity 08 joins Saint experts address how to
Anselm College for an Opportunity 08 forum June 26, 2008—Washington, D.C.—
engage with younger voters
on key domestic issues facing presidential U.S. Foreign Policy and the 2008
in the upcoming election
candidates in the New Hampshire primary. Presidential Campaign Sen. Chuck
season.
Arthur Durity
Hagel discusses U.S. foreign policy in
the context of the 2008 presidential
campaign.
Contents
2008 Annual Report
6 10 14
Economic Global Economy Foreign
Studies and Development Policy
Governance Metropolitan Support for
Studies Policy Brookings
18 22 26
8 Health Care 3 Mission Statement
13 Competitiveness 4 Chairman’s Message
16 Energy Security 5 President’s Message
21 Education 30 International Advisory Council Printing: Jarboe Printing
Cover Photograph: Randy Santos
24 Migration 34 Trustees
32 Strategic Plan 35 Honor Roll of Contributors Copyright ©2008 The Brookings Institution
33 C
enter for Executive 1775 Massachusetts Avenue, NW
38 Financial Summary Washington, DC 20036
Education Telephone: 202.797.6000
Fax: 202.797.6004
www.brookings.edu
40 Brookings Institution Press Library of Congress Card Number: 84-641502
Barack Obama unveils his proposals for a more equitable tax system at an Opportunity 08-Tax Policy Center event in September 2007.
The Brookings Institution
M ission Statement
Brookings’s mission is to conduct
high-quality, independent
research and, based on that
research, to advance innovative,
practical recommendations to
advance three broad goals:
n trengthen American democracy.
S
n
Advance the economic and social
welfare, security, and opportunity
of all Americans.
n
Secure a more open, safe,
prosperous, and cooperative
international system.
Ralph Alswang
3
CHAIRMAN’S MESSAGE
I
’ve always believed that in times of general
adversity, strong institutions get stronger.
Now is such a time, and Brookings is such
an institution.
In the same way that Brookings schol-
ars helped America respond to the Great
Depression and helped the world recover
from World War II, we are working hard to
generate innovative and pragmatic ideas that set
the agenda, shape the debate, and design effec-
tive policy responses for today’s challenges.
We didn’t wait until what Strobe has called
“the black September of the era of globalization”
to focus on the burgeoning financial crisis. Back
in December 2007, Brookings helped to put the
looming recession at the center of the national
agenda, taking full account of its international
dimension. Trustee Larry Summers gave an
influential speech at Brookings calling for a
stimulus package made up of tax rebates for
working-class Americans. Senior Fellows Doug
Elmendorf, Jason Furman, Martin Baily, and
Alice Rivlin weighed in as well, offering advice
in a series of reports and appearances before
Congress.
Ralph Alswang
Working quickly to gather ideas and form
a consensus, Brookings convened a session
of leading economists to debate the plan and
explained clearly its benefits and costs. The
$150 billion stimulus package was passed by Congress in February—less than two months after it was proposed at Brookings.
While the legislation helped foster almost 3 percent annual growth in the second quarter, it was clear to our experts that deeper problems
lurked. Then—and now—experts across Brookings pooled their expertise to analyze the options facing the United States and the international
community, advising senior officials, congressional leaders, and President-elect Obama’s transition team on how to approach the problem from
both a short-term and long-term perspective.
At the same time, Brookings engaged in a high order of multitasking on the issues that came to dominate the 2008 presidential contest. On
energy security, education, health care, migration, and competitiveness, we marshaled our breadth and depth to ask the big questions and to find
the right answers.
All of this illustrates the strides we’ve made in fulfilling the Brookings strategic plan that the Board of Trustees adopted in 2007. Helping
the nation and the world meet the challenges of today and tomorrow requires managing ourselves in a way that is ambitious, disciplined, and
forward-looking. Even in an uncertain economic environment, we have the combination of discipline, commitment, and momentum necessary to
keep us on track.
Which gets me back to where I started: Precisely because there are so many questions and uncertainties, what Brookings has to offer is more
essential now than ever. And this Institution would not be able to perform that service without the participation and support of our friends and
trustees. So thanks … and on to the new administration!
John L. Thornton, Brookings Chairman
4
P R E S I D E NT ’ S M E S S A G E
E
very year finds its own way of
giving Brookings an opportu-
nity to translate its motto—
quality, independence, and
impact—into events, projects,
and publications. The past
year was in a class by itself,
with a historic election, the
nation embroiled in two wars, the planet—as
Barack Obama said in his first statement as
President-elect—“in peril” because of climate
change, and a global financial crisis that started
on Wall Street.
Our signature project this year was Oppor-
tunity 08, which focused contenders and
voters on the major issues that Obama has
cited. Beyond the Beltway, we organized pro-
grams in Iowa and New Hampshire and held
Board of Trustees meetings—timed to can-
didate debates during the primaries—in Las
Vegas and Charleston. Trustees—notably Ken
Duberstein, Tom Donilon, and Brian Green-
spun—contributed their insights and leader-
ship to Opportunity 08 forums.
As backdrop to the political campaign,
the economy rapidly cascaded from troubled
Paul Morigi
waters to the global maelstrom of the fall. Our
Economic Studies experts contributed substan-
tially to the design of the February 2008 stimu-
lus package and provided recommendations to the administration and Congress, with Global Economy and Development experts, as the housing
and credit crises deepened.
A well-timed new arrival to the Brookings leadership team is Darrell West, a highly regarded political scientist and policy center director from
Brown University who now heads up Governance Studies. “GS,” as we call it, got another big boost as our trustee, Ezra K. Zilkha, endowed a
chair that is now held by Senior Fellow William Galston.
“Governance”—a word that has been key to the Brookings vocabulary from our founding 92 years ago—is increasingly taking on a global
dimension. Addressing the challenge of how to manage this unruly but interdependent world of ours involves all five research programs. For
example, Metropolitan Policy, Foreign Policy, and Governance Studies joined Economic Studies and Global Economy and Development in tack-
ling the question of how to reform international institutions to prevent something like the Great Meltdown of 2008.
For this reason—and many others—we’re grateful that our International Advisory Council, now in its third year, has become an integral part
of the Brookings family along with our Board and our many other friends and supporters.
As you will see, the pages that follow highlight much more than impressive accomplishments, large numbers, and new names. The annual
report for 2008 documents a remarkable year, one in which the Institution lived up to its legacy and is poised to fulfill its potential in response
to the challenges and opportunities ahead.
Strobe Talbott, Brookings President
5
William G. Gale (center), vice president and director of Economic Studies, speaks on Main Street issues at an Opportunity 08 event as Senior Fellow Ron Haskins (right) listens.
Economic
Studies
W
hen turmoil in the financial markets began
to shake the U.S. economy in late 2007,
the Economic Studies program responded
quickly and with major impact. Collabora-
tion across the program produced a rapid-
fire series of events, papers, opinion pieces,
meetings, and congressional testimony that
helped shape a bipartisan stimulus package
in time for effective delivery of rebate checks in the spring. Program
experts also studied the regulatory roots of the housing crisis to begin
to advise policy-makers on the harder and longer-term challenge of
how to stabilize the market and avoid future crises.
Brookings economists advised both the administration and Con-
gress as the economic crisis escalated in fall 2008, especially on issues
of credit, liquidity, and the housing market. During this economically
difficult year, Economic Studies experts also produced new analyses
and policy proposals ranging from tax changes to health care reform.
Stimulating the Economy
The U.S. economic slowdown spurred Brookings experts to respond
with practical policy advice grounded in solid research throughout
the tumultuous year. The Hamilton Project, the Urban-Brookings Tax
Policy Center, and the Initiative on Business and Public Policy coor-
dinated some of the best and most influential thinking on the early
economic distress signs.
In December 2007, toward the beginning of the crisis, Brookings
hosted speeches by Brookings Trustee and former Treasury Secretary
Lawrence H. Summers and Sen. Charles Schumer of New York on
the looming slowdown and subprime mortgage problems. Summers’s
call for a “timely, temporary and targeted” stimulus was echoed in the
media and across Capitol Hill.
In January, the Hamilton Project hosted a discussion featuring Senior
Fellows Jason Furman; Douglas Elmendorf, the Edward M. Bernstein
Scholar; and Alice Rivlin, who were joined by former Treasury Secretary
Robert Rubin, Harvard economist Martin Feldstein, and Moody’s econo-
mist Mark Zandi. Elmendorf and Furman released a strategy paper, “If,
When, How: A Primer on Fiscal Stimulus,” at the event, and it quickly
became a principal reference in the flurry of decision maker and public
interest that followed. On January 24, the same day that the agree-
Sharon Farmer
ment between the congressional leadership and the White House was
announced, the Tax Policy Center released the first distributional and
revenue effects of the competing stimulus packages.
7
Rebecca Blank outlines her
plan for helping mothers
disconnected from welfare
and the workforce.
Elmendorf, Summers, and Greg takes the reins and the 111th
Mankiw, the former chairman of Congress takes shape.”
the Council of Economic Advis- Among the existing lineup
ers under President George W. of Economic Studies experts
Bush. It featured an outstanding are some new faces:
lineup of papers and participants, Baily rejoined Brookings as a
including Federal Reserve Chair- senior fellow in the fall of 2007.
man Ben Bernanke, who spoke at After his first stint at Brookings,
Ralph Alswang
dinner the first night. Baily served as the chairman of
President Clinton’s Council of
Building a Best-in-Class Team Economic Advisers. Baily directs
“I took on the leadership of this Brookings’s new Initiative on
As the financial crisis deep- Baily hosted a breakfast event program with the primary goal Business and Public Policy.
ened, Elmendorf and Senior Fel- with the British Embassy featur- of attracting a new generation Rebecca M. Blank, a highly
lows Martin Neil Baily and Rob- ing the British Chancellor of the of top-tier economists who are regarded expert on social policy,
ert Litan examined sources of the Exchequer, the Right Honorable capable of doing the very best joined Economic Studies in 2008
mortgage and broader credit prob- Alistair Darling. His presenta- research and who have an impact as the Robert S. Kerr Senior Fel-
lems and evaluated appropriate tion focused on the need for the in the policy arena,” said William low. Blank was previously dean
policy responses. They released International Monetary Fund G. Gale, vice president and direc- of the Gerald R. Ford School of
a comprehensive analysis of the to develop better international tor of Economic Studies and the Public Policy and co-director of
credit crisis at a public forum “early-warning systems” for finan- Arjay and Frances Fearing Miller the National Poverty Center at
in May that included opening cial market problems. Chair in Federal Economic Policy. the University of Michigan.
remarks from FDIC Chairman The Brookings Papers on “The scholarship and influence
Sheila Bair. Economic Activity were presented of the current team will prove Health Care Policy
To address the global ramifica- at a conference in April 2008 particularly vital over the coming The Engelberg Center for Health
tions of the U.S. housing crisis, under the new editorial team of months as a new administration Care Reform is making major
Mark B. McClellan, director
of the Engelberg Center for
Health Care Reform and the Brookings Experts on Health Care
Leonard D. Schaeffer Chair.
Fellow Mark McClellan, the former Studies contributed cation to help plan
head of the Food and Drug Admin- important policy rec- emergency vaccine
istration and the Centers for Medi- ommendations and distributions.
care and Medicaid Services, as its tools. Noted health The Global
founding director. care expert Henry Economy and Devel-
The Engelberg Center hosted Aaron tackled health opment program
Jac Schaeffer
Arthur Durity
several well-attended events this spending and Medi- is studying innova-
year featuring experts from the pol- care, notably in a new tions in global health
icy, academic, advocacy, and pro- book with Jeanne Trustee Leonard Schaeffer and his financing that will be
vider communities. Former House Lambrew, Reforming fundamental in the
B
wife, Pamela.
rookings experts have a Speaker Newt Gingrich joined Medicare: Options, near future to facili-
long tradition as leaders Congressional Budget Office Direc- Tradeoffs, and tate improving health
in developing new health tor Peter Orszag and other distin- Opportunities (Brook- outcomes in develop-
policy, helping spur inno- guished congressional panelists in ings, 2008). The ing countries. Their
vations in the delivery of global a briefing on long-term care reform Center on Social and research on HIV/
Charleston Picture Company
vaccines, and in helping address that focused on opportunities to Economic Dynamics AIDS treatment and
outbreaks of infectious diseases. improve quality and address long- garnered recognition malaria prevention
Moving to make the topic a term fiscal challenges. Another for work in infec- highlight the impor-
focus of interdisciplinary work, forum addressed the key challenges tious disease policy tance of practical,
Brookings established the Engel- and possible solutions regarding research, winning an sustainable methods
berg Center for Health Care Reform prescription drug safety. award for a modeling in combating these
in 2007, with Brookings Senior Other research in Economic and simulation appli- Trustee Alfred Engelberg diseases. n
8ec o n o m i c S t u d i es
worked with New York City
Mayor Michael Bloomberg and
convened a group of top experts
and city officials on poverty and
how it is measured.
The Retirement Security
Project, led by William Gale,
continued to develop and inform
Britain’s Right Honorable common-sense reforms to
Alistair Darling MP (left), improve the retirement income
after delivering remarks on
international coordination of
prospects of millions of Ameri-
financial events, walking with can workers. Elements of the
Martin Baily (far right), British agenda were incorporated into
Ralph Alswang
Ambassador Sir Nigel Sheinwald
and Congressional Budget Office
presidential campaign proposals
Director Peter Orszag. and into bipartisan congressional
legislation.
strides thanks to the generos- consumer-directed health care. Tax and Fiscal Policy
ity and vision of Trustees Alfred Joshua M. Epstein, direc- The Budgeting for National Pri-
B. Engelberg and Leonard D. tor of the Center on Social and orities project led by Sawhill and
Schaeffer. Under the direction of Economic Dynamics, was rec- Haskins flourished this year with
former FDA Commissioner and ognized this year for his work on support and input from Trustees
Medicare and Medicaid Admin- the Large-Scale Agent Model, Geoffrey T. Boisi and Leonard
istrator Mark McClellan, who which is used for detailed track- Schaeffer and from Brook-
holds the Leonard D. Schaeffer ing of epidemic dynamics and the ings Council members such as
Director’s Chair in Health Policy, exploration of how public health Rob Marks and Ned Lamont.
Steven Purcell
the center is working to promote policy interventions may slow the Through the Fiscal Wake-Up
high-quality, innovative, and spread of contagious diseases and Tour, program experts have
affordable health care. chronic public health challenges. engaged with audiences in more
A public forum in June on The model won the 2008 Award Douglas W. Elmendorf (left) discusses the nation’s than 25 cities, reaching local
infrastructure needs with Virginia Gov. Tim Kaine.
prescription drug safety included for “Outstanding Achievement in elected officials and community
an overview of current FDA regu- Modeling and Simulation” from leaders. Events in these cities
lations and a review of technical, the National Training and Simu- to exceed their parents in income; have been covered by local radio,
legal, and communications chal- lation Association. Epstein was black children in middle-class television, and newspapers.
lenges that arise in this area. awarded a 2008 National Insti- homes do not. Both Rivlin and Sawhill
Especially as baby boomers tutes of Health Director’s Pioneer Isaacs’s findings were included are featured on-camera in the
start to retire, the Medicare pro- Award. in a new volume, “Getting Ahead feature-length documentary
gram has come under scrutiny or Losing Ground: Economic I.O.U.S.A., which premiered at
for its costs, coverage gaps, and From Mobility to Retirement Mobility in America.” Isabel V. the 2008 Sundance Film Festival
bureaucratic rigidity. To help Brookings’s work on social policy Sawhill, senior fellow and the and opened at movie theaters
guide the debate that will shape also had significant impact this Cabot Family Chair, wrote about nationwide in August. The movie
much-needed reform, Senior year. The American dream is the tattered American dream and drives home the message that
Fellow Henry J. Aaron, the not equally accessible for black Ron Haskins, senior fellow and America is facing a longer-term
Bruce and Virginia MacLaury and white families, Fellow co-director with Sawhill of the financial problem.
Chair, co-authored Reforming Julia B. Isaacs found in a study Center on Children and Fami- The Tax Policy Center, also
Medicare: Options, Tradeoffs, and that received enormous media lies, released new information on co-directed by Gale, continued to
Opportunities (Brookings, 2008). attention in November 2007. immigration and education. serve as a key source of informa-
At an event in July, Aaron and Her intergenerational analysis Following publication of tion on tax policy, convening 11
co-author Jeanne M. Lambrew revealed a significant difference the next generation of anti- public policy symposia, offering
were joined by advocates of the in the extent to which parents poverty policies in the Princeton- advice to Congress, and publish-
three reform strategies outlined pass their economic advantages Brookings journal based on the ing more than 50 discussion
in the book—strengthened social to their children. Children of The Future of Children sym- papers, policy briefs, and other
insurance, premium choice, and middle-class white parents tend posium, Sawhill and Haskins commentaries. n
9Global Economy
and
Development
A
s the world looks to China and other emerging
powers to act as the engine for global recovery
from a financial crisis that emanated from the
United States and Europe, the established eco-
nomic and financial order is being turned on
its head. With America’s 44th president taking
office at a moment of consequential global chal-
lenges that even the most powerful nations can-
not resolve on their own, there is a clear need for leadership. But with
U.S. financial turmoil reverberating against the backdrop of a profound
global shift in economic power, America’s capacity and will to provide
that leadership are less clear.
It is across this complex horizon that Global Economy and Devel-
opment, under the leadership of Lael Brainard, pursues innovative
research and policy solutions to help both U.S. and global leaders
adapt to the shifting landscape of an increasingly intertwined global
economy. Restoring confidence in international capital markets and
ensuring that the global economy’s benefits are broadly and widely
shared will defy easy solutions, but are vital to the prosperity and sta-
bility of this new world.
“In today’s environment, one of our core strengths at Global is hav-
ing the combination of analytical insights and policy experience to turn
headlines into actionable solutions to help navigate a new global eco-
nomic order,” said Brainard, who directs Global and holds the Bernard
L. Schwartz Chair in International Economics.
Strengthening America Economic Leadership
for a Resilient Global Economy
Against this new global economic backdrop and the political realities
of a new U.S. presidential administration, restoring American eco-
nomic leadership has become the most critical policy challenge. With
the generous support of Bernard L. Schwartz, Brainard leads Brook-
ings-wide research efforts on strengthening U.S. competitiveness. In
testimony before Congress and in briefings to high-level policy-makers,
Brainard emphasized the need to first start at home—strengthening
the competitiveness of American workers in today’s super-charged
global economy through new investments in infrastructure, green
energy, education and training, and innovation, as well as creating a
“new economy” safety net combining insurance with flexible training
opportunities. New Senior Fellow Eswar Prasad (left) and Lael
Ralph Alswang
Brainard, who directs the Global program and
Finding solutions to the climate change crisis and weaning the
also holds the Bernard L. Schwartz Chair in
world off a centuries-old dependence on carbon-based sources of International Economics, on a panel discussing a
energy will require a paradigm shift in how capital and technology blueprint for reforming India’s financial system.
10global econ o m y a nd d ev elo p m e n t
Accommodating Rising Powers brought together academics and
Brookings Global experts contin- policy-makers from Brazil and the
ued to examine emerging econo- United States for a conference
mies in detail this year and to to explore some of Brazil’s key
provide insights and analysis into economic policy challenges and
the countries and regions that are opportunities.
revolutionizing the contours of The Wolfensohn Center
the global economy, particularly for Development continued to
as the financial crisis touches focus on the more than 100 mil-
countries across the globe. lion young people between the
Mauricio Cárdenas, director of the Latin
While China’s emergence ages of 15 and 29 in the Middle
America Initiative (left), confers with Foreign as an economic powerhouse East—the largest proportion of
Sharon Farmer
Policy magazine’s Moises Naim during a has generated many benefits to youth in the region’s history—
conversation on Colombia with President
Alvaro Uribe.
the world, it has also created and the opportunities that could
concerns among other major be leveraged by comprehensive
countries when it comes to the and robust economic policies
flow through the global economy. experts on multilateral institu- environment and climate change, to engage this youth bulge.
Global Nonresident Senior Fel- tional governance led to a flurry currency issues, and trade. Senior Under the joint banner of the
lows Warwick McKibbin and of media attention during the Fellow Wing Thye Woo, the New Wolfensohn Center for Develop-
Peter Wilcoxen pioneered an past year, as global governance Century Chair in International ment and the Dubai School of
innovative permit trading sys- structures—from the World Bank Trade and Economics, hosted the Government, with lead Fellows
tem approach to climate change to the G8—came under review. inaugural China Update confer- Navtej Dhillon and Tarik Yousef,
policy that was instrumental in Johannes Linn, executive direc- ence focusing on China’s integra- the Middle East Youth Initiative
the Australian government’s deci- tor of the Wolfensohn Center for tion into the world economy with launched groundbreaking work
sion to implement a far-reaching Development, and Colin Brad- David McCormick, undersecre- and promoted policy solutions
cap-and-trade regime for carbon ford, nonresident senior fellow, tary of international affairs at the to engage youth in meaning-
permits. Adele Morris, formerly continued their push for a more U.S. Department of Treasury. ful education and employment
a senior economist with the Joint legitimate and effective G-20 The Indian economy has opportunities.
Economic Committee, joined structure at heads of state level. fueled growth rates of more than
Brookings to launch a new Cli- Domenico Lombardi, Ralph Bry- 8 percent in recent years, mak- Building a Road out of Poverty
mate and Energy Economics ant, Leonardo Martinez-Diaz, and ing it one of the most successful In 2008, Global established the
Initiative with McKibbin and Lex Rieffel contributed important emerging economies in the world. Africa Growth Initiative. With a
Wilcoxen that will help inform analysis and recommendations In preparation for his first official grant of $5.8 million over three
the coming congressional debate for reform of key multilateral eco- visit to India in October 2007, years by the Bill & Melinda
over climate policy with rigorous nomic institutions. Global hosted U.S. Treasury Gates Foundation, the initiative
economic modeling capabilities. The ongoing turmoil in the Secretary Henry Paulson for a will become the premier center
In June, Global hosted more financial markets brought inter- private briefing on India. Barry in Washington for sustained
than 70 stakeholders for a Climate national financial flows to the Bosworth, the Robert V. Roosa research on Africa’s economy.
Change, Trade, and Competitive- forefront, with sovereign wealth Chair in International Econom- The research agenda will focus
ness conference, led by Brainard. funds emerging out of the shad- ics, continued the tradition of on attaining sustainable economic
The conference brought together ows as a potent new force within excellence with the India Policy development and eventual pros-
leading experts to explore the ways global capital markets. Global Forum, convening the fourth con- perity in Africa in partnership
in which climate change policies hosted a series of forums with ference in New Delhi, and issu- with institutions in the region.
might interact with the trading key institutions to discuss the ing new research on such diverse Previous research by Dr. Ngozi
system and how policy-makers issues related to transparency and economic issues as power reform, Okonjo-Iweala, a Global nonresi-
might address the challenges. accountability of the funds as higher education, and the politi- dent senior fellow now manag-
Meanwhile, Journalist-in- well as the promise and pitfalls of cal economy. ing director at the World Bank,
Residence Paul Blustein offered involvement in financial rescues. Brazil’s economic future is helped inform the framework for
sharp insights and analysis on the Global also welcomed a new again attracting avid interest from the new initiative.
roller coaster efforts of the World senior fellow, Eswar Prasad, who investors, academics, and policy- The initiative expands on
Trade Organization to conclude a brings deep expertise on financial makers. In April, Global Political Global’s work in the global devel-
Doha Development Round. globalization in emerging econo- Economy Fellow Leonardo opment arena, which in the past
Global’s deep bench of mies such as India and China. Martinez-Diaz and Brainard year included a number of high-
12global econ omy an d d evelopmen t
ing the previous year’s focus on shaping U.S. influence. While
“Global Development 2.0”—the more than 40 years of foreign
new era of global philanthropy. assistance have shown some suc-
Held in Aspen, the roundtable cesses, U.S. programs remain
featured pre-eminent leaders dispersed and incoherent. With
including Nobel laureates Al that in mind, Brainard and Noam
Former World Bank President and Brookings Trustee Gore and Dr. Steven Chu and Unger continued to lead Global’s
Ralph Alswang
James D. Wolfensohn (center) listens to global
perspectives on the U.S. financial crisis with Senior
focused on the critical inter- U.S. foreign aid reform project.
Fellows Johannes Linn (right) and Homi Kharas. twined crises of climate change With numerous appearances on
and global poverty. Capitol Hill, Brainard called for a
The Global Health Initiative national strategy that elevates the
level conferences and consulta- tility in aid flows as well as the issued a series of new research stature of development alongside
tions. In the spring, Visiting Fel- emergence of a new set of donors papers on global health financ- defense and diplomacy.
low William Easterly, a renowned ranging from China and Russia ing, while Cohen questioned the U.S. volunteers serving
economist specializing in global to new private-sector actors. And conventional wisdom on malaria abroad represent another way
development, and Jessica Cohen, Jacques van der Gaag and Sara prevention policies through inno- to help improve the lives of the
development economics research Hommel expanded the work of vative randomized trials. She world’s poorest citizens. The
fellow, hosted a conference at the Wolfensohn Center’s early also co-founded an NGO in East introduction of legislation by
Brookings focused on what devel- childhood development project, Africa to evaluate cost-sharing Sens. Russ Feingold and Norm
opment strategies have actually hosting a series of high-level policies versus distributing malar- Coleman inspired by Global’s
worked. conferences. ial bed nets for free. Initiative on International Vol-
The Wolfensohn Center In its fifth year, thanks to the The next U.S. administra- unteering and Service, led by
for Development deepened its ongoing support of Trustee Rich- tion will have an opportunity Director David Caprara, was a
research agenda on aid effective- ard C. Blum, the Brookings Blum to refashion the image America major step in building a national
ness, led by Homi Kharas, who Roundtable on Global Poverty presents to the world, and for- consensus that volunteer service
is putting the spotlight on the focused its agenda on climate eign assistance to poor countries is a key instrument of public
challenges associated with vola- change and development, follow- remains a critical instrument in diplomacy. n
South Carolina Gov. Mark Sanford
Brookings Experts on Competitiveness
W
ith emerging economies gram is undertaking a variety of opened the discussion on the con-
and existing powers initiatives on strengthening U.S. straints in sufficient investment
jostling for economic competitiveness. In testimony to of bridges, roads, airports, ports,
dominance, America the Senate Finance Committee, and broadband systems—and raised
must develop a sustained national Lael Brainard discussed America’s the question: Can we afford not to
video
agenda to remain vibrant. Brookings response to globalization through invest more?
integrates the global debate with the lens of trade policies and rec- Focusing on broader economic
what is occurring at home and in ommended changes in the Trade growth, The Hamilton Project U.S. competitiveness depends on
the states and localities that drive Enforcement Act of 2007 to help tapped a wide range of experts to the success of its cities like Houston,
our economy. This “all- America compete more generate innovative, cutting-edge, Charleston, Denver, and Philadelphia,
Brookings” research on fairly in the growing and evidence-based policy ideas to say Bruce Katz and others from the
competitiveness delves global marketplace. ensure that American workers and Metropolitan Policy Program. Having
into such critical issues Brookings hosted firms remain competitive in the new launched a Blueprint for National
as trade, worker adjust- the third Bernard L. global economy. In July 2008, for Prosperity this year, the program
ment programs, educa- Schwartz Forum on instance, the project proposed a has outlined bold new federal
tion policy, infrastruc- Competitiveness in national infrastructure strategy that policies in such areas of innovation,
ture, and human capital fall 2007 to highlight calls for more efficient investments human capital, and transportation
development. America’s failing infra- to expand access to the nation’s that draw on the economic potential
The Global Economy structure. Former Iowa physical and telecommunications of our metropolitan areas to lever-
and Development Pro- Bernard L. Schwartz Gov. Thomas Vilsack infrastructure. age national economic growth. n
13Foreign
Policy
T
he Foreign Policy program offered timely research,
analysis, recommendations, and commentary on the
world’s pressing international security challenges. In
2008, program experts significantly influenced both
U.S. and international policies, not to mention the sub-
stance of the U.S. presidential race. Brookings experts
remained at the forefront of policy debates on Iraq
and Afghanistan. Scholars balanced short-term realism
with long-term aspirations on Arab-Israeli peace, averting Iran’s nuclear
intentions, and the push for greater democracy within Arab nations. For-
eign Policy’s experts helped make sense of the Russia-Georgia conflict,
proposing measures to contain aggression and change the dynamic of
confrontation between Russia and the international community.
Directed by Vice President Carlos Pascual, Foreign Policy gener-
ated groundbreaking research and innovative policy approaches this
year in four core areas: war, peace, and transition; relations with world
powers; transnational challenges; and reforming U.S. and global insti-
tutions. Along with Senior Fellow Charles Ebinger, Pascual also helped
develop a new Energy Security Initiative with ideas to stimulate effi-
ciency, cut emissions, and strengthen American competitiveness (see
Energy Security box, page 16).
“Foreign Policy remained engaged with the changing pace of global
challenges by offering research, analysis, and commentary on every
major policy debate in an effort to guide the thinking of policy-makers
and the U.S. presidential candidates,” said Pascual.
War, Peace, and Transition
The Saban Center for Middle East Policy, directed by Martin Indyk,
continued to promote a better understanding of the choices facing
policy-makers in the United States, the Middle East, and in the
Muslim world. Just weeks before the U.S.-sponsored Middle East
conference in Annapolis in November 2007, the Saban Center held
its fourth annual Saban Forum in Jerusalem. The Forum featured U.S.
Secretary of State Condoleezza Rice, Israeli Prime Minister Ehud
Olmert, King Abdullah of Jordan, former British Prime Minister Tony
Blair, and Palestinian Authority Prime Minister Salam Fayyad.
Opening its doors in February, the Brookings Doha Center under-
took research on the socio-economic and geopolitical issues facing
Muslim-majority states and communities, encouraging increased dialogue
between policy-makers from the United States and the Muslim world.
Tom Williams
Timed with the U.S. presidential election, Brookings and the Coun-
cil on Foreign Relations joined forces for the first time to develop a new
approach to Middle East policy. Spearheaded by the Saban Center, the
14Carlos Pascual, vice president and director of Foreign Policy, testifies before a House Armed Services panel.
(Random House, 2008). the next president. The Center discussion in February with for-
Both Pollack and Senior Fel- on the United States and Europe mer Pakistan Army Chief of Staff
low Michael O’Hanlon, the Syd- (CUSE), headed by Senior Fel- Gen. Jehangir Karamat, former
ney Stein Jr. Chair in International low Daniel Benjamin, convened a Chief of U.S. Central Command
Security, traveled to Iraq in June series of discussions on the U.S. Gen. Anthony Zinni, former U.S.
2008, publishing a fresh assess- and NATO missions in Afghani- Deputy Secretary of State Rich-
paul morigi
ment of the challenges to stability stan. CUSE hosted NATO ard Armitage, and others.
in Foreign Affairs magazine. Spear- Secretary General Jaap de Hoop Under the direction of Senior
Thérèse Delpech, director for Strategic Studies at
headed by O’ Hanlon, the Iraq Scheffer to assess the effective- Fellow Peter W. Singer, the 21st
the French Atomic Energy Commission, delivers the Index remains the most in-depth, ness of the International Security Century Defense Initiative con-
Fifth Annual Raymond Aron Lecture. nonpartisan assessment of stabi- Assistance Force in Afghanistan. tinued to address critical issues
lization efforts in Iraq. Its find- Pakistan also continued as a facing U.S. military commands in
initiative, “Toward a New U.S.- ings appear regularly in the op-ed major policy challenge. Through this decade and beyond. Singer’s
Middle East Strategy,” will serve pages of The New York Times. congressional testimony, publica- work has helped bring to light the
as a nonpartisan blueprint for the Writing for Brookings’s Opportu- tions, and events, Senior Fellows role of private contractors in both
incoming president and his team nity 08, Pascual outlined a strategy Stephen Cohen and Bruce Riedel the Abu Ghraib prison abuse scan-
of foreign policy advisers. To put for political stabilization in Iraq. brought their considerable exper- dal and the Blackwater contro-
policy guidance in a long-term This opinion was widely cited dur- tise to bear on managing political versy in Iraq, prompting Congress,
strategic context, Senior Fellow ing the presidential campaign. transition and threat of terrorism. with Singer’s advice, to create the
Ken Pollack authored an authori- More than six years after a Exploring the tribal tensions and country’s first-ever legislation on
tative new book, A Path Out of U.S.-led invasion toppled the extremist influences in Pakistan’s oversight of private contractors.
the Desert: A Grand Strategy for Taliban, Afghanistan remains a western region, Senior Fellow Brookings Senior Fellow
America in the Middle East major foreign policy challenge for Philip Gordon hosted a policy Elizabeth Ferris continued her
Charles K.
Brookings Experts on Energy Security
Ebinger, director
of the Brookings
Energy Security
Initiative.
other stakeholders in much-needed From an economic perspec- Oil (McGraw Hill, 2007), which
dialogue on a range of critical energy tive, experts in Global Economy explores the next administration’s
issues. Briefings and public events and Development focus on supply options for breaking U.S. depen-
included such high-level speakers disruptions and price spikes and dence on foreign sources of oil. In
as James Connaughton, chairman, their effects on the U.S. and the June, an overflow crowd attended
Ralph Alswang
White House Council on Environ- world energy markets. In June, the a conference hosted by Brookings
mental Quality; Yvo de Boer, execu- program held a con- and Google.org
tive secretary of the United Nations ference that explored to assess electric
Framework Convention on Climate ways in which climate vehicle technol-
E
nergy security is one of Change; Mutsuyoshi Nishimura, spe- change policies might ogy, its potential
the most important stra- cial adviser to the Japanese Cabinet interact with the to reduce U.S. oil
tegic challenges facing on Climate Change, and Sen. Richard trading system. With dependence, and
peter krogh
the United States and the Lugar of Indiana. experts that included the role of federal
world. With its Energy Security Ini- To offer constructive input for William J. Antholis, policy in promot-
tiative and other activities, Brook- the G8 Hokkaido Summit, as well Warwick McKibbin, Brookings Trustee Daniel Yergin ing this technol-
ings is well positioned to tackle as future international climate and Peter Wilcoxen, ogy. Sandalow was
energy in a comprehensive and negotiation processes, the new prospects were dis- joined by O’Hanlon
integrated manner, guiding effec- initiative hosted a workshop on cli- cussed for heading and Antholis for
tive, pragmatic policies to address mate change in Tokyo this year that off conflict between an Opportunity 08
U.S. and global energy security brought together approximately 30 carbon policies and forum on energy
issues over the next decade. of the top climate and energy policy- trade rules. and national secu-
Ralph Alswang
The Brookings Energy Security makers, analysts, and business lead- Senior Fellow rity in Iowa City
Initiative brings together a team of ers for a briefing and discussion on David Sandalow in the countdown
respected experts with policy-mak- the latest climate change research released a new book months to the Iowa
ers, industry leaders, journalists, and efforts undertaken at Brookings. titled Freedom from Sen. Richard Lugar of Indiana caucus. n
16Secretary-General of
the United Nations Ban forei gn poli cy
Ki-moon addresses
foreign policy leaders
in Berlin at a meeting
convened by Brookings’s
Managing Global
Insecurity project.
Chair in Foreign Policy, began (MGI) project conducted a series
pathbreaking work on labor mar- of international consultations in
kets, unemployment, and inequal- an effort to reform multilateral
ity in Russia and Latin America. institutions and address 21st-
century global challenges. An
Transnational Challenges MGI gathering in Berlin this
The United States and its allies summer featured Nobel Peace
face a multitude of challenges Prize laureate Rajendra Pachauri,
that cut across national borders, German Foreign Minister Frank-
Marc Darchinger
including energy security, global Walter Steinmeier, and U.N.
warming, nuclear proliferation, Secretary-General Ban Ki-moon.
and violent extremism. Brookings These respected international
experts addressed these chal- figures endorsed MGI’s identi-
lenges through in-depth research fication of “responsible sover-
leadership as co-director of the The Center for Northeast and international dialogues, shap- eignty” as a key precept for a new
Brookings-Bern Project on Inter- Asian Policy Studies (CNAPS), ing policy approaches within the international order, leading to a
nal Displacement. With more than under the direction of Senior Fel- United States and beyond. Senior new “Plan for Action” released in
2 million Iraqis displaced by the low Richard Bush, the Michael Fellow Bruce Riedel completed fall 2008 and a major new book,
ongoing conflict in their country, H. Armacost Chair, conducted a new book, The Search for Al Power and Responsibility, that
Ferris developed recommenda- research and analysis to enhance Qaeda: Its Leadership, Ideology, can underpin the revitalization of
tions to address the growing secu- policy development and under- and Future (Brookings, 2008), U.S. leadership on global security
rity and humanitarian crisis within standing on the pressing political, which explores the world’s most and prosperity.
Iraq and surrounding nations. Her economic, and security issues dangerous transnational terrorist
recommendations served as the facing the Northeast Asia region. network and offers solid recom-
basis for the Recovery and Stabil- CNAPS visiting fellows—this year mendations for confronting this
ity of Iraq Act of 2008. from China, Hong Kong, Japan, global challenge.
Korea, Russia, and Taiwan—con- In February 2008, Brookings
Relations with World Powers ducted in-depth research on such launched the “Index of State
With the success of the 2008 Bei- topics as the change of political Weakness in the Developing
jing Olympics, China continued leadership in Taiwan, the six-party World.” The Index ranks 141
its emergence as an economic and negotiations on North Korea’s developing nations according to
political force. Directed by Senior nuclear weapons program, and the their relative performance in four
Ralph Alswang
Fellow Jeffrey Bader, the John L. emergence of new political leader- critical areas: economic, political, U.S. Defense Secretary Robert Gates (left) and
Thornton China Center continued ship in Japan. security, and social welfare. Brookings President Strobe Talbott at a Board
dinner at the Newseum.
to address both the internal and CUSE oversaw a broad Addressing the links between
international challenges associated agenda focusing on relations energy security and climate
with China’s stunning growth. between the United States and change, Senior Fellow David Senior Fellow Ivo Daalder
Senior Fellows Cheng Li, Wing its European allies. CUSE’s Fron- Sandalow released a new book, completed a major study on
Thye Woo, and Geng Xiao and tiers of Europe project explored Freedom from Oil (McGraw Hill, U.S. national security advisers
China Energy Fellow Erica Downs the impacts of possible European 2007), which explores the next and their role in shaping U.S.
authored a number of important expansion to include Turkey, administration’s options for break- foreign policy. Based on hun-
policy analyses that focused on Ukraine, and the countries of ing U.S. dependence on foreign dreds of primary interviews, the
China’s future as a world power the Caucasus and West Balkans. sources of oil. In June, an over- study (co-authored with I.M.
and on the country’s changing Cuba faced major political tran- flow crowd attended a conference Destler) examined the evolution
political and economic landscape. sition in the past year as long-time hosted by Brookings and Google. of the role of national security
In its first full year of opera- leader Fidel Castro ceded authority org to assess electric vehicle adviser—from McGeorge Bundy
tion, the Brookings-Tsinghua to his brother Raul. Pascual and technology. Keynote speakers to Stephen Hadley. The study
Center brought together experts Visiting Fellow Vicki Huddleston included Sen. Lamar Alexander concludes that the national secu-
from the United States and continued a two-year project to and Rep. John Dingell. rity adviser is more important and
China in collaborative work to improve U.S. policy to support the powerful than ever and suggests
increase the understanding of aspirations of Cubans seeking a Reforming Institutions ways in which the next adviser
China’s growing influence on the representative democracy. Carol Under the leadership of Pascual, can enhance prospects for U.S.
world stage. Graham, the Charles W. Robinson the Managing Global Insecurity foreign policy success. n
17Darrell West (center), vice president and director of Governance Studies, with Pietro S. Nivola (right) and William Galston (left), who became the first Brookings expert to hold the Ezra K. Zilkha Chair in Governance Studies. Zilkha is pictured on the far left and Trustee Victoria P. Sant is at far right.
Governance
Studies
F
rom John McCain’s stunning comeback in the Repub-
lican field to Barack Obama’s surprising triumph over
Hillary Clinton, the independent voices of Governance
Studies experts rung out repeatedly during one of the
longest and most extraordinary presidential campaigns
in recent memory. The program hit its stride during the
general election as McCain faced off against Obama in
a historic campaign. Overall, our experts contributed
about 70 commentaries, 350 media appearances, and a best-selling
book to commemorate a major transition in Washington.
Change was also the mantra inside the program as Governance
Studies built stronger capacity in research and advocacy, endowed
a scholar chair, and recruited a new director. After more than four
years of stewardship, Pietro S. Nivola stepped down as vice president
and director of Governance Studies to resume full time his role as
the Douglas Dillon Chair in Governmental Studies. His successor is
Darrell West, who left Brown University following 26 years of teaching
and research to help Governance Studies develop an ambitious, com-
petitive agenda to address gridlock in American government.
“Governance Studies lured me with first-rate scholars committed
to improving American democracy and our political system,” West
said. “Without well-functioning government and legal institutions,
this country will lose its respected position among other nations which
have long emulated our constitution and the findings of our courts.
The work at Brookings is heard among the people who can make a
difference.”
In West, Brookings found a top-tier academic with a real sense of
how politics works. At Brown, West served as the director of the Taub-
man Center for Public Policy and as a professor of public policy and
political science. He received high marks from an impressive range of
politicians, academics, journalists, and funders.
A major highlight of the year occurred in June when William
Galston became the first Brookings expert to hold the Ezra K. Zilkha
Chair in Governance Studies. The Zilkha Chair will tackle some of the
hardest questions in the area of political and institutional reform. To
mark the occasion, Brookings hosted a speech by U.S. Supreme Court
Justice Stephen Breyer on international governance and American law.
A Political System Challenged
Ralph Alswang
The program’s signature project this year was Red and Blue Nation—a
project that involved nearly every Governance Studies expert in the
exploration of the causes and consequences of partisan polarization.
19g ov e r n a n c e st u d i e s
Conducted in collaboration which politically diverse views How exactly does one go
with the Hoover Institution at were aired on topics ranging about being the president of
Stanford, the three-year study from the rise of the conservative the United States? Senior Fel-
Hillary schwab
gained a wide audience. Nivola legal movement and religion and low Emeritus Stephen Hess, a
teamed with David W. Brady, the swing voter to prosecutorial renowned presidential scholar,
deputy director and senior fellow misconduct and abuse and terror- wrote a workbook to guide the
at Hoover to edit Red and Blue ists and detainees. Governance Benjamin Wittes, research director in Public Law. president-elect through the early
Nation? Volume II, which built Studies experts also participated thicket of decisions. What Do
on the first volume (Brookings, in major cross-Brookings collab- media, including a June 4 piece We Do Now? (Brookings, 2008)
2006), and was released at the orative activities, including eight that explained how Obama had became widely cited in the days
height of the presidential primary Governance Studies experts who run the first true campaign of leading up to the election.
and caucus season. contributed to Brookings’s Oppor- the 21st century. In addition to
“Are we at the dawn, as it’s tunity 08 project. regular election updates and cita- Congress: The Broken Branch?
being said, of a post-partisan age? This proved a record year tions in the U.S. media, Senior Narrow majorities in both cham-
Trust me, we’re not,” Nivola told for analyses and commentary on Fellow Thomas Mann, W. Averell bers of the 110th Congress
participants at a Brookings event general politics. Visiting Fellow Harriman Chair in American meant filibusters in the Senate,
on Feb. 15 to release the book. Michael McDonald set a pattern Governance, conducted speak- tangling over recess appoint-
“The partisan divide is deep. It for Web editorials on Jan. 9 with ing tours in Australia, Russia, ments, and considerable frustra-
will become keener as the general “Collapsible Candidates from China, Singapore, Japan, and tion over what did not happen:
election progresses. The chasm Iowa to New Hampshire,” a piece Italy. Throughout the primary immigration reform, a disengage-
between the party philosophies of that explained the swiftly chang- and caucus season, Senior Fellow ment from Iraq, and a permanent
the two—of the Democrats and ing dynamic of the presidential E.J. Dionne continued to appear fix for the Alternative Minimum
Republicans—is especially deep election. Galston followed with regularly on national television Tax (AMT) for starters. Offering
in the area of foreign policy.” several other thought-provoking and radio programs “This Week,” previews and assessments, Senior
Governance Studies held commentaries for the Internet “Meet the Press,” and “All Things Fellows Mann and Sarah Binder
more than 30 events this year, at that were often cited in the Considered.” joined with American Enterprise
Institute resident scholar Nor-
man Ornstein twice to put this
Congress, and its record, in
perspective.
According to the indicators
charted by Mann and Binder
in January, this Congress aimed
lower and achieved more of its
explicit legislative objectives
than did the 1995 Republican
Congress. Mann and Binder’s
indicators, published on the opin-
ion page of The New York Times,
showed that the new Congress
in 2007 was more productive in
terms of the number and nature
of serious pieces of legislation
signed into law.
Justice and Law
Governance Studies broadened
its field into constitutional law
Thomas Mann moderates a panel with Senior and executive powers in the
Fellow Alice Rivlin on the financial bailout administration of counterterror-
package after the House of Representatives first ism efforts. The commentary of
Paul Morigi
voted to reject it, sending shockwaves through
the markets. Fellow and Research Director
in Public Law Benjamin Wittes
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