Associates

The Milken Institute Associates is a network of top supporters from corporate, governmental, economic and philanthropic organizations. Members of the Milken Institute Associates are actively involved in our programs and receive special invitations to private events. They are provided access to the annual Global Conference, regional Summits in California, London, Asia, and MENA, and the Future of Health Summit. Most importantly, their support and generosity increase global prosperity. For information about joining the Associates click here

2007

29

June 2007

Associates Breakfast with John Bruton, Former Irish Prime Minister 

Santa Monica

Former Irish Prime Minister John Bruton, fresh off a visit with Gov. Arnold Schwarzenegger, said that too many Americans and Californians take Europe for granted, but shouldn't, since it remains one of our most important trading partners.

"We Europeans own a lot of you, and you own a lot of us," said Bruton, the European Union ambassador to the United States. "What's good for you is good for us, and what's bad for you is bad for us."

During a private visit to the Milken Institute, Bruton met with members of the Milken Institute Associates and representatives of several European consulates based in Los Angeles. The wide-ranging discussion touched on everything from trade and energy to Turkey and violence in the Middle East.

Bruton, who while prime minister from 1994 to 1997 was deeply involved in the Northern Irish Peace Process, said he wished the United States would use some of the lessons he learned while helping end Northern Ireland's sectarian violence on the current situation in the Middle East. One of those is the willingness to talk to the bad guys.

"If we had said, 'We won't talk to them until they recognize our right to exist,' we wouldn't have talked," and the 1998 Good Friday Agreement would never have been signed, Bruton said.

Other topics he touched on:

 

  • The two issues affecting Europe that concern him most are 1) a lack of its sources of energy, and 2) a declining birth rate.
  • He believes Turkey will eventually be accepted into the EU, but that it will take much more time than many believe.
  • The lack of functioning governments in Africa are the root of it problems.
  • European leaders need to do a better job at creating ways to make people feel more European. ("We need to create more of a sense of 'we' in Europe.")

Bruton's talk is one of a series of meetings with global and national leaders of distinction hosted at the Institute for its Associates.

Associates breakfasts with individuals of distinction are open to members of the Milken Institute Associates. To join, please contact Mindy Silverstein, director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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16

May 2007

Associates Breakfast with Alvin Toffler, Writer and Futurist

Santa Monica

Futurist Alvin Toffler has an analogy for what's happening in the world today. Call it the global highway.

Business, says the author of such best-selling books as Future Shock and Third Wave, is like a car traveling 100 mph down that highway. It's moving faster than anyone else. Behind it are other institutions, like the American family, which is traveling at around 60 mph — not quite keeping up with the fast pace of business, but still changing relatively quickly with the times.

Then there are unions, which are going about 30 mph, followed by government at about 25 mph. Bringing up the rear, he says, is America's K-12 education system, which in his analogy is traveling at about 10 mph — and getting further and further behind.

"How can you run a knowledge-based economy where business operates at 100 mph with an education system changing at 10 mph?" Toffler asked in a meeting with members of the Milken Institute Associates."We have to change the system, not just try and make this one work."

In Toffler's mind, bureaucracies are getting more and more out of synch with the rest of society — to the point where serious problems, like the government's response to Hurricane Katrina, will become more and more the norm.

Other comments:

 

  • In today's political debate, no one talks about the fact that we have changed to a knowledge-based economy.
  • We live in an era of extraordinary change, and there will be conflict.
  • With the rapid developments in technology, biotechnology and nanotechnology, we are headed for a gigantic battle 30 to 50 years from now over how you define a human being. This will create a moral struggle.

Associates breakfasts with individuals of distinction are open to members of the Milken Institute Associates. To join, please contact Mindy Silverstein, director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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10

April 2007

Associates Breakfast with Steven Chu, Nobel Laureate; Director of Lawrence Berkeley National Laboratory, University of California, Berkeley

Santa Monica

Steven Chu is one of the world's leading experts on climate change. And he doesn't mince his words.

Due to changes in climate, which scientists now believe is almost certainly caused by humans, we face significant dangers from a warming planet, including:

 

  • Increased damage from storms, floods and wildfires
  • Property losses and population displacement from rises in sea levels
  • Changes in the productivity of farms, forests and fisheries
  • Increased species extinction
  • Spread of diseases
  • Water shortages

Fortunately, said Chu, winner of the Nobel Prize in physics and director of Lawrence Berkeley National Laboratory in Berkeley, many smart people are working on the problem — and there are many potential solutions.

The fight, he said, should focus on two areas:

1) Maximizing energy efficiency and minimizing energy use; and
2) Developing new sources of clean energy

As for the first, regulation can plan an important role, helping spur industry innovation, he said. A good example is the average American refrigerator, which in the mid-1970s measured 18 cubic feet, cost $1,270 and used 1,800 kilowatt hours per year. Today, more than two decades after California and the federal government imposed energy efficiency standards, the average refrigerator is bigger at 22 cubic feet, cheaper at less than $500 and more energy efficient, using less than 600 kWh per year.

On the alternative energy side, scientists and others are working on a number of promising technologies that could make solar, wind, biofuels and other sources cheaper and more efficient. He showed Associates some of the work going on in these areas, including the use of grasses and cellulose as future source of energy.

Associates breakfasts with individuals of distinction are open to members of the Milken Institute Associates. To join, please contact Mindy Silverstein, director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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08

March 2007

Associates Breakfast with Thomas Donohue, Head of the U.S. Chamber of Commerce

Santa Monica

As head of the U.S. Chamber of Commerce, Tom Donohue has a lot on his mind these days: immigration reform, health care coverage, taxes and many other issues that impact American businesses.

But what these issues have in common, he said, is the need for the U.S. to remain competitive with the rest of the world, which is rapidly catching up to American finance, technology and other areas of previous dominance.

"What does it take to keep us competitive?" he asked during a meeting with members of the Milken Institute Associates."It's human capital. It's energy. It's capital markets. It's infrastructure. If we can do something about all of these things, we can say we've done something useful."

Donohue outlined some of the issues in which the chamber is heavily involved, including:

 

  • Immigration
  • Education
  • Capital markets
  • Energy and global warming
  • Infrastructure
  • Trade
  • Health care

The chamber has issued several detailed studies proposing solutions on many of these issues, he said.

For example, he said we need to apply the efficiencies of technology, which have made America's financial markets the strongest in the world, to the growing health-care sector to keep it competitive and reduce costs.

With capital markets, the chamber is urging the federal government to reform and modernize its markets regulations to ensure that the U.S. maintains its global competitive advantage.

Associates breakfasts with individuals of distinction are open to members of the Milken Institute Associates. To join, please contact Mindy Silverstein, director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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02

February 2007

Associates Breakfast with Gary Becker, Nobel Laureate; Professor of Economics and Sociology, University of Chicago

Santa Monica

The benefits of higher education have never been greater around the world, said Nobel laureate Gary Becker, thanks to three major developments in the past 25 years:

 

  • Technology
  • The growth of capital
  • Globalization

Each of these areas has played a part in dramatically increasing the "rate of return of education," as he put it in his address to members of the Milken Institute Associates. This growing gap in pay between those who receive a higher education and those who don't can be seen in developed and developing countries alike.

In China and India, for example, education has helped lift millions of people out of poverty as they now compete for decent-wage jobs with workers from around the world.

"There is a good reason why China is investing so much in education," Becker said.

This development has led to two opposing trends, he added. First, the level of inequality around the world has declined, thanks mainly to China and India's growing economies. At the same time, inequality within individual countries has increased, with the educated raising their standards of living while many uneducated and unskilled workers remain in poverty.

The challenge in the United States, he said, is how can we increase the number of young people going to college? He suggested establishing policies that would support these proven methods:

  • Better student loan programs
  • Head Start
  • School vouchers
  • More stable families

Becker is the University Professor of Economics and Sociology at the University of Chicago. He was awarded the Nobel Prize in Economic Sciences in 1992 for extending the domain of microeconomic analysis to a wide range of human behaviors and interactions, including non-market behavior. His current research focuses on habits and addictions, the formation of preferences, human capital and population growth.

To join the Milken Institute Associates, please contact Mindy Silverstein at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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2006

24

October 2006

Associates Breakfast with Dennis Kneale, Managing Editor, Forbes

Santa Monica

Four years ago, Forbes managing editor Dennis Kneale told his friends that video, not audio, was the wave of the future when it came to broadband, the Internet and entertainment.

"I kept preaching, 'Wait for video,'" he recalls saying. "Now, the possibilities are being seen."

Kneale said he knew his view had paid off when he learned that YouTube.com, the online video-sharing web site begun only 18 months ago by two young tech entrepreneurs, sold to Google for $1.65 billion.

He said we are headed into an era where you'll be able to get whatever information or entertainment you want where and when you want it — something he called "anywhere, anytime, anything."

When questioned whether this new video era is just another technology bubble that will eventually burst, Kneale said he doesn't think so based on the fact that sites like YouTube.com and MySpace.com draw millions of viewers a day — real people for potential advertisers to reach.

This revolution is real," he said. "This value is real. You have to harness this wave."

"He added that when it comes to video, it looks like the movie industry has learned the lessons from the music industry, which failed in its fight against online downloading. Hollywood will partner with technology and media firms to make this new wave of entertainment delivery successful, he said.

Kneale, one of the country's leading technology journalists, joined Forbes in late 1998 to expand its coverage of technology, media and health after a 16-year career at The Wall Street Journal. Since then he has overseen some of the most dramatic business stories of the new decade: the Internet boom, bust and rebuild; corporate scandals and investor fallout; the backlash against the drug industry amid drug recalls and soaring costs; the rise of Google and the capitalist revolution that is igniting China's economy — and the travails of Martha Stewart.

Associates breakfasts with individuals of distinction are open to members of the Milken Institute Associates. To join, please contact Mindy Silverstein, director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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12

October 2006

Associates Breakfast with Donald Marron, Acting Director of the Congressional Budget Office (COB)

Santa Monica

Donald Marron, Acting Director of the Congressional Budget Office (COB), had some good news for members of the Milken Institute Associates: The federal deficit in 2006 dropped to its lowest level in three years - $248 billion. He said this is mainly due to higher tax revenues than anticipated.

But, as he told members of the Milken Institute Associates, there are some serious challenges ahead, such as aging baby boomers and the growing costs of Social Security and Medicare. If something isn't done to change the dynamics of those programs, these mandatory-spending programs will take up a larger and larger share of the federal budget, he said.

And if health-care costs continue to rise faster than the overall economy as predicted, Social Security will be the "easy one" compared to Medicare, he added.

Overall, federal budget spending is falling back into line with historic averages, Marron said. This year's deficit, for example, is about 1.9 percent of GDP, which he described as "neither large nor small" by historic standards.

Marron became CBO's deputy director in October 2005 and began serving as acting director as of December 30. In this role, he manages CBO and regularly consults with the budget committees to ensure that the agency's work and capacities meet and keep pace with Congressional demands.

Previously, Marron served as chief economist for the President's Council of Economic Advisers. In that capacity, he analyzed a broad range of fiscal, regulatory and macroeconomic policies and directed a team that monitored the state of the economy and developed economic forecasts.

Associates breakfasts with individuals of distinction are open to members of the Milken Institute Associates. To join, please contact Mindy Silverstein, director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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19

June 2006

Mexico's Arrested Development

Santa Monica

Solving the issue of illegal immigration will take more than fences and green cards on the American side. It will take drastic reform of Mexico's economy and social structures to enable both Mexican entrepreneurs and U.S. investors to build companies and create jobs south of the border.

This examination of Mexico's economy and needed reforms was presented by Milken Institute Senior Fellow Joel Kurtzman and Glenn Yago, Director of Capital Studies, at a special briefing for members of the Milken Institute Associates.

According to both researchers, Mexico has tremendous economic potential that it's not reaching because of a lack of transparency in its markets, corruption and security issues that not only keep out vital foreign investment, but also make it difficult for Mexican entrepreneurs to get the capital they need to build a business and create jobs.

"The Mexican economy is operating at half capacity," said Kurtzman.

Because of this, Mexico forgoes an estimated 2.6 percent of GDP each year due to the poor way in which its institutions function and another 2 percent due to things like corruption, Kurtzman and Yago said. If Mexico reformed its institutions and cleaned up corruption, it could grow at Chinese rates, they added.

Nearby Mexico is losing out to faraway China. Mexico's share of U.S. imports is declining compared to China. As late as 2001, Mexico's share of U.S. imports was close to 12 percent, while China's was only about 8 percent. In 2005, while Mexico's share dropped to under 11 percent, China's had climbed to nearly 16 percent.

By reforming its economy — including its vital energy industry — Mexico can begin to improve its investment climate, thus producing more jobs that will keep its citizens at home. Failure to do anything will cause Mexico's economy to stagnate, sending yet more immigrants north, Kurtzman and Yago said.

For further reading, see "Their People, Our Money," an op-ed by Kurtzman and Yago that appeared in The Wall Street Journal.

This discussion was one of a series of private meetings open to members of the Associates. To join, please contact Mindy Silverstein, director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein@milkeninstitute.org.

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10

May 2006

Off the Record with Dore Gold, Ambassador, Jerusalem Center for Public Affairs

Santa Monica

Ambassador Dore Gold of the Jerusalem Center for Public Affairs led a discussion on the current prospects for Israel's security in the wake of recent Palestinian and Israeli elections and the ongoing developments in Iraq, Iran and the Middle East.

Gold addressed three key issues most affecting Israel's security: the rise of Hamas in Palestinian elections, al-Qaeda's increasing ability to strike Israel and the escalating situation in Iran. He outlined steps Israel should take to secure and protect itself, including topics covered in his most recent work, "Defensible Borders for a Lasting Peace," which engages military, legal and diplomatic perspectives on long-range strategic planning for Israel's security.

Guests posed questions on Israel's borders, plans for combating al-Qaeda and methods to publicize concerns to the Israeli public and the Middle East region. The discussion concluded with brief comments regarding the economic impact of terrorism, with Glenn Yago, director of Capital Studies at the Milken Institute, stressing the importance of a strong Israeli economy to combat security threats.

The "Off the Record with ..." series of private meetings with individuals of distinction is open to members of the Milken Institute Associates. To join, please contact Mindy Silverstein, director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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30

January 2006

Off the Record with Bradley Belt,  Executive Director, Pension Benefit Guaranty Corporation

Santa Monica

America's growing public and private pension obligations have major implications for capital markets, corporate governance, industrial policy and federal insurance policies, and the sooner we tackle the issue the better, said Bradley Belt.

"This is a serious problem that we need to address, and the longer it takes, the worse it will get," he said in a meeting with Milken Institute Associates.

At issue is the ability of these funds to pay the promised benefits to their retirees — a gap that is growing as people live longer. How corporations will pay for these benefits — and what happens if they can't — is a vital question for both the companies and government.

As we've seen with corporate giants in the automobile, airline and manufacturing industries, pension liabilities have become a major issue for companies as they struggle to deal with these legacy costs while trying to compete in today's global marketplace.

"As a nation and as individuals, we are not setting aside enough resources for retirement," Belt said.

As executive director of the Pension Benefit Guaranty Corporation, Mr. Belt is responsible for its operations, including administration of two insurance programs covering more than 30,000 defined benefit plans sponsored by private-sector employers, providing annual benefit payments of almost $4 billion and management of assets totaling nearly $58 billion.

The "Off the Record with …" series of private meetings with individuals of distinction is open to members of the Milken Institute Associates. To join, please contact Mindy Silverstein, Director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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19

January 2006

Off the Record with Sandra Lee, Permanent Secretary for Economic Development of the Government of Hong Kong

Santa Monica

With the increasingly intense nature of global markets and trade, Hong Kong is one of the most globally oriented business and economic centers in the world.

And Sandra Lee, Permanent Secretary for Economic Development of the Government of Hong Kong, is at the center of this dynamic, with responsibilities that include logistics, aviation, ports, energy, postal services, meteorological services, competition policy, consumer protection and tourism.

In a breakfast meeting with members of the Milken Institute Associates and invited guests, Lee painted a positive picture of Hong Kong's future. After suffering through the financial crises of the late 1990s, the SARS scare and other blows to the economy, the city has recovered nicely, she said.

"Last year was very good for Hong Kong," she said, pointing out that Hong Kong's GDP was up 7 percent in 2005.

Lee and others in her delegation, including Alan Lee, Chairman of Hong Kong Container Terminal Operators Association, and Willy Lin, Chairman of Hong Kong Shippers' Council, described the growing competition in China, but they said they are working well with mainland China's leaders.

She discussed the Hong Kong government's policies on economic and trade development, the impact that proposed new shipyards in Shanghai will have on their competitive relationship with the mainland and environmental pollution.

Ms. Lee was appointed to the Administrative Service of the Hong Kong Government in 1979. Over the years, she has worked in a number of policy and resource bureaus at the Government Secretariat and overseas offices in Washington, D.C. and London. More recently Ms. Lee served as Director-General of the Hong Kong Economic and Trade Office in London and Secretary for Economic Services. She has been in her present post as Permanent Secretary for Economic Development since July 2002.

The "Off the Record With..." series of private meetings with individuals of distinction is open to members of the Milken Institute Associates. To join, please contact Mindy Silverstein, Director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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2005

08

December 2005

Off the Record with Gerard Caprio, Director for Policy in the World Bank’s Financial Sector Vice Presidency

Santa Monica


Gerard Caprio talks about changes at the World Bank during an address to Milken Institute Associates.

 

Soon, Gerard Caprio, Jr. will be back in academia, leaving behind 17 years fighting global poverty as a director at the World Bank.

But before he goes, he had a few thoughts for Milken Institute Associates who gathered for an "Off the Record With Gerard Caprio" breakfast meeting.

Among some of his points:

 

  • Many governments around the world are more interested in economic growth than poverty — mostly the so-called "middle-income" nations.
  • How well countries allocate their people's savings has a major impact on economic development.
  • Banks in general are safer today, but their lending is down.

Caprio, an expert on international banking systems and regulation, said the keys to economic growth in developing countries remain improving their financial, information and legal systems.

He also talked about the World Bank's direction under new president Paul Wolfowitz, and what changes can be expected in the future; the anti-globalization movement; and different approaches to lending around the world.

Gerard Caprio, Jr. is director for policy in the Financial Sector Vice Presidency at the World Bank. Starting in January 2006, he joins Williams College as a Professor of Economics. Previously he was manager, Financial Sector Research, in the World Bank's Development Research Group. He is the World Bank's senior spokesperson on financial markets and financial sector regulation, development and reform. Before joining the bank in 1988, Caprio was vice president and head of global economics at JPMorgan, and previously held economist positions at the Federal Reserve Board and the IMF, and taught at George Washington University.

The "Off the Record with ..." series of private meetings with individuals of distinction is open to members of the Milken Institute Associates. To join, please contact Mindy Silverstein, Director of Milken Institute Associates, at (310) 570-4634, or by e-mail at msilverstein @milkeninstitute.org.

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15

September 2005

The Economic Impact of Hurricane Katrina

Santa Monica

View Slide Presentation
The devastation left by Hurricane Katrina could cost the U.S. economy an initial loss of 400,000 jobs in September and reduce monthly average job creation by 30,000 jobs for the rest of 2005. It could also increase oil by $10 a barrel and lead to a nearly 1 percent decline in GDP growth in the fourth quarter of this year.

But next year, when the reconstruction efforts get into full swing, the recovery will turn things around — adding those 30,000 jobs back per month, easing the price of oil and increasing the GDP by more than a percentage point during the second and third quarters.

These are the preliminary findings of two of the Milken Institute's regional economists who've studied the potential impact of Katrina on the U.S. and Gulf economies.

Ross DeVol, Director of Regional Economics, and Perry Wong, Senior Research Economist, told members of the Milken Institute Associates that based on what has happened after previous natural disasters, the short-term job losses will be made up by increases in such areas as construction once rebuilding is fully under way.

And given the perception by many in the public that the federal government did not respond fast enough to the Katrina disaster, DeVol expects a massive outlay of federal dollars in the rebuilding effort.

"There will be no expense spared," DeVol said.

Insurance payouts for Katrina are expected to be the most for any hurricane cleanup in U.S. history — anywhere from $20 billion to $45 billion. The federal government could end up spending as much as $150 billion.

One of the key questions is how to rebuild New Orleans, which is dependent on tourism and lacks the knowledge-based workforce that is crucial for economic growth.

"It's not just the rebuilding that's important, but what kind of rebuilding we do," said Wong. "The danger is if we try to put it back just as it was."

Update: After Hurricane Rita hit the Gulf Coast in September, DeVol and Wong updated their findings about the impact of the two hurricanes on the local and national economies. Their findings can be found in the slides (above), but here is a summary:

Delayed economic activity caused by the massive evacuations in the Houston region, combined with the economic dislocations in the affected area, will reduce real GDP growth by an additional 0.2 percentage point in the third and fourth quarters of 2005 beyond the 0.5 and 1.0 percent reductions already anticipated due to Hurricane Katrina. Reported job growth will be reduced by an additional 5,000 per month, on top of the 30,000 attributable to Katrina, for the remainder of 2005. The price of natural gas should increase by nearly $1 per million British thermal unit from what would have been expected before Rita hit.

Rita may also delay the reconstruction efforts in New Orleans somewhat because of renewed flooding, but rebuilding will still turn things around in 2006 — adding back 30,000 jobs per month from Katrina, plus another 4,000 per month in southeast Texas and southwest Louisiana. The easing of oil and refined-petroleum-products prices, along with reconstruction, will increase GDP growth by more than a percentage point during the second and third quarters of 2006.

Learn more about the Milken Institute Associates.

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24

February 2005

Off the Record with Michael Speier, Managing Editor, Variety

Santa Monica

Michael Speier, Managing Editor of Variety, addressed members of the Milken Institute Associates on the impact of movies in Los Angeles, the U.S. and around the world. Coming just days before the Academy Awards, his talk focused on the importance of the Oscars — and the considerable economic and professional cachet that comes from winning.

Speier has spent the past seven years as managing editor of Special Reports, editor of the Gotham edition of Variety and co-TV critic. Speier, who joined Variety in 1997, is a 1991 graduate of Syracuse University and has a master's degree from the University of North Texas.

The "Off the Record With ..." series of private meetings with individuals of distinction is open to members of the Milken Institute Associates. To join, please contact Jared Carney, Director of Marketing and Project Development, at (310) 570-4676, or by e-mail at jcarney@milkeninstitute.org.

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26

January 2005

Off the Record with Thomas J. Wilson, President, Allstate Corporation

Santa Monica

Thomas J. Wilson, president of The Allstate Corporation's home and auto businesses, addressed members of the Milken Institute Associates on January 26. He talked about covering risk, especially the so-called mega-risks like terrorism and hurricanes.

Wilson is president of Allstate Protection, the $23-billion property and casualty unit of The Allstate Corporation. He also served as the president of Allstate Financial, the company's financial services unit, and as chief financial officer. During his tenure as CFO, he received the Alexander Hamilton Award from CFO Magazine for strength in financial management. Wilson's career has included tenure at Sears, Roebuck & Co., Dean Witter and Amoco.

The "Off the Record With ..." series of private meetings with individuals of distinction is open to members of the Milken Institute Associates. To join, please contact Jared Carney, Director of Marketing and Project Development, at (310) 570-4676, or by e-mail at jcarney@milkeninstitute.org.

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2004

07

December 2004

Off the Record with Tomas Philipson, Professor, Irving B. Harris Graduate School of Public Policy Studies, University of Chicago

Santa Monica

America's pharmaceutical industry has become one of the most profitable and important in the world thanks to the tremendous advances that have been made in medicine in recent years and an aging population. But it has also become a lightning rod for some of the most contentious public policy issues of our time — from the re-importation of drugs from Canada to the drug approval process.

Finding common ground on these issues is important to not only patients, but the drug companies themselves, whose ability to develop news drugs depends on their ability to get a return on their research and development dollars, said Senior Fellow Tomas Philipson, a professor in the Irving B. Harris Graduate School of Public Policy Studies at the University of Chicago.

Philipson, an expert on the economics of health care, discussed the many forces that are affecting these returns, including the recently approved Medicare Modernization Act. The drug benefit plan portion of this legislation, which becomes effective on Jan. 1, 2006, is government's effort to address the increasing demand from our growing elderly population and is evidence of a general downward pressure on drug prices, he said.

Also threatening the return on the industry's R&D investment is the increase in the popularity of cheaper generic drugs.

"Half the prescriptions written today are generic, up from 18 percent in 1984," said Philipson.

Although R&D spending has increased, the number of new pharmaceutical products introduced to the market has actually decreased, he said. The challenge is finding the appropriate balance or "trade-off between speed-to-market and drug safety issues."

In addition to the School of Public Policy Studies, Philipson is a faculty member of the University of Chicago Department of Economics and law school. Philipson recently served as Senior Economic Advisor to the commissioner of the Food and Drug Administration and the administrator of The Centers for Medicare and Medicaid Services.

The "Off the Record With ..." series of private meetings with individuals of distinction is open to members of the Milken Institute Associates. To join, please contact Jared Carney, Director of Marketing, at (310) 570-4676, or by e-mail at jcarney@milkeninstitute.org.

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22

September 2004

Off the Record with Donald Tang, Vice Chairman, Bear, Stearns & Co.

Santa Monica

China's new leaders face tremendous challenges as they try to find the right balance between economic growth, job creation and building a modern economy for a population of 1.2 billion people.

But everyone has a stake is seeing them succeed, said Donald Tang, vice chairman of Bear, Stearns & Co. and a leading expert on China. If they fail, it will have serious repercussions on the global economy.

"If China prospers, it will benefit all of us," said Tang, who was this season's first guest in the Milken Institute Associates' series of private meetings with individuals of distinction.

Fortunately, Tang said, China's new leadership is extremely smart and they understand the issues. He believes they will make the right decisions on the economy.

Tang offered his views on a variety of topics, ranging from the growth of China's middle class and its current construction boom to rising oil prices and the growing tension between China and Taiwan — an issue that he said must be managed very carefully by all sides, the U.S. included, to prevent a serious confrontation.

To join the Associates, please contact Jared Carney, Director of Marketing, at (310) 570-4676.

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16

July 2004

Off the Record with Mark Rosenthal, Chairman, Sports Industry Group

Santa Monica

Mark Rosenthal, a prominent sports lawyer who won the Eric Gagne arbitration case for the Dodgers earlier this year, said the key to winning was comparing the relief pitcher to others with his years of experience and not trying to denigrate Gagne's outstanding achievements.

"I wasn't going to argue that Eric Gange didn't have a great season," Rosenthal said. "That was going nowhere."

Instead, he said, he compared his salary demands to other pitchers with his same three years of experience, like Mariano Rivera of the Yankees, who was awarded $4.25 million in 1999.

The Dodgers offered Gagne $5 million, while the pitcher asked for $8 million. Agreeing to Gagne's demand would result in a record salary for a pitcher with only three years' experience, Rosenthal said.

"Our case was not so much about Eric Gagne as it was about baseball's salary system," said Rosenthal in a breakfast meeting with members of the Milken Institute Associates.

To the surprise of much of the baseball world, the arbitrators selected the Dodgers' $5 million offer.

Rosenthal chairs the Sports Industry Group at Jeffer, Mangels, Butler & Marmaro. His practice emphasizes sports law, entertainment litigation and intellectual property litigation. He has represented professional sports teams for 15 years and currently represents more baseball teams in salary arbitrations than any other attorney in the country.

To join the Associates, please contact Jared Carney, Director of Marketing, at (310) 570-4676, or by e-mail at jcarney@milkeninstitute.org.

 

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16

March 2004

Off the Record with Pat Cox, President, European Parliament

Santa Monica

In a wide-ranging discussion of issues from trade to terrorism, Pat Cox, President of the European Parliament, offered a positive assessment of the future of the European Union during a private meeting with members of the Milken Institute Council.

He said the addition of 10 new member countries in May will strengthen the EU because they will bring new voices, new ideas and strong ideals to the organization.

"They aren't going to be shoved around by anybody," Cox said. "Europe will be richer with them."

With his visit coming just days after voters ousted Spanish Prime Minister Jose Maria Aznar's Popular Party from power on the heels of terrorist bombings in Madrid, Cox focused many of his comments on that issue.

He reassured his audience that the change in Spain's government will not cause a shift in the global effort to fight terrorism.

"I don't believe any Spanish administration is going to go soft on terrorism," he said. "I expect them to have a very, very strong anti-terrorism policy."

During his talk and a question-and-answer session that followed, Cox touched on a host of issues facing Europe, including its relations with the U.S., intellectual property concerns, the Microsoft anti-trust dispute, trade, job creation and immigration.

A member of the European Parliament since 1989, Cox represents the constituency of Munster in the Republic of Ireland. Before entering politics, he worked both as an economics lecturer and as a journalist and television presenter on Irish television. Having been elected to the European Parliament as a Progressive Democrat MEP in 1989, he was successfully re-elected, this time as an Independent Member, in 1994. He was elected president of the European Parliament in 2002.

The meeting is one of a series that allows members of the Milken Institute Council - part of the Milken Institute Associates program - to meet privately with local, national and international leaders.

Learn more about the Milken Institute Associates.

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10

February 2004

Off the Record with Andras Simonyi, the Hungarian ambassador to the United States

Santa Monica

Andras Simonyi, the Hungarian ambassador to the United States, reiterated his country's support for America in its war against Iraq, saying it is important to stand behind its ally.

"The relationship between the United States and Hungary has never been closer, never been better," said the ambassador during a private meeting with members of the Milken Institute Associates.

The ambassador added, however, that he is sorry to see the rift between the U.S. and its longtime allies France and Germany over the war, since it's important that the Trans-Atlantic relationship remain strong.

While Hungary has supported the U.S. decision on Iraq, it has also worked hard to maintain its good relationship with Germany, its key partner in Europe.

The ambassador also talked about Hungary's joining the European Union later this year. He said his country will be a vocal and active member of the EU.

"We'll be there to help and make a difference," he said.

Ambassador Simonyi touched on a variety of other issues, including immigration, demographics, investments in Hungary and the economy.

He joined the Foreign Ministry in 1989. Prior to becoming ambassador, he headed the NATO Liaison Office in Brussels. He was a key player in preparing Hungary for accession to NATO and in 1999, he became the first Hungarian permanent representative on the NATO Council. He is vice president of the Hungarian Atlantic Council, co-founder of the Center for Euro-Atlantic Integration and Democracy, and was Hungary's representative to the Western European Union Council for five years.

The meeting was one of a series that allows members of the Associates to meet privately with local, national and international leaders.

Learn more about the Milken Institute Associates.

Read More