RAND Corporation: Annual Report 2007

R A N D C O R P O R A T I O N 

2007 ANNUAL REPORT

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C O N T E N T S 

Ahead of the Curve 

MESSAGE FROM THE CHAIRMAN AND THE PRESIDENT 

Outreach 

Staff 

Pardee RAND Graduate School 

Donors 

Advisory Boards 

Clients and Grantors 

Financial Report

What It Takes to Stay 

Ahead of the Curve 

MESSAGE FROM THE CHAIRMAN AND THE PRESIDENT 

To celebrate the 60th anniversary of the RAND 

Corporation, we train the spotlight on several ways in 

which RAND has worked to explore ideas and challenges 

that place us “ahead of the curve.” At the same time, we 

look ahead to how RAND will continue in that tradition. 

The world does not proceed directly from Point A to 

Point B to Point C—which makes research on social, 

national, or global progress more challenging and 

interesting for RAND. For us, staying ahead of the curve 

means deepening and broadening our knowledge of 

progressively more complex problems around the world 

so that we can help leaders of all kinds rise to their own 

unforeseen and shifting challenges. 

In the pages that follow, we highlight several of our 

research activities of 2007 and take a glimpse of RAND’s 

earlier work shaping the debate in these same fields. 

RAND is at the center of a proud analytical tradition 

of recommending policy options based on the most 

probable future conditions. Over the past year, we have 

begun using new tools to offer options even in the face 

of indeterminate future conditions. Although future 

conditions cannot be reliably identified or agreed upon, 

our recent work on issues of climate change and terrorism 

risk suggests we can build upon RAND’s more traditional 

methodologies to give policymakers options even in 

uncertain times. 

RAND researchers spent 2007 helping global health 

officials confront the threat of a human influenza 

pandemic in the Mekong Basin. Building upon work for 

local and state agencies within the United States, RAND 

researchers created exercises to stimulate cooperation 

among six nations in the Mekong region who together 

face a heightened risk of pandemic—an important step 

toward exposing and addressing the weaknesses of 

existing global surveillance and response systems. 

And in the United States—where we have created the 

most professional military services in the history of the 

world and RAND researchers have contributed expertise 

on manpower issues for decades—RAND’s latest work 

takes on whether and how we should be reorganizing 

those services for a world where instability anywhere has 

become a potential global security threat. 

As we reflect upon the latest in our 60 years as a 

nonprofit organization helping to improve policy and 

decisionmaking, we also rededicate ourselves to staying 

ahead of the curve. We intend to do that by sticking with 

what’s worked so well over the past six decades. Asking 

the important questions. Looking to data and evidence 

for answers. Rejecting partisan ideologies. Developing 

innovative methodologies and tools. Applying the lessons 

of the past. Strengthening our grasp of the present. And 

facing the new challenges of the future.

To do this, we rely upon the trust and support 

of those who value what RAND offers to 

policymakers and decisionmakers. We thank you 

for helping us stay “Ahead of the Curve.” 

Ann McLaughlin Korologos 

Chairman, RAND Board of Trustees 

James A. Thomson 

President and Chief Executive Officer

4 2 0 0 7 R A N D A N N U A L R E P O R T 

Focusing on Quality 

in Children’s Health Care 

In recent years, the policy debate over children’s health 

care has focused on expanding access to insurance coverage, 

either through government-sponsored programs or 

other mechanisms. After undertaking previous research 

that showed U.S. adults receive recommended medical 

care only about half of the time, a group of RAND Health 

researchers led by RAND Health Associate Director Elizabeth 

McGlynn set out to determine whether the quality of 

pediatric care in the United States was as good as it should 

be. No large-scale study evaluating the quality of medical 

services delivered to children had ever been conducted in 

the United States. 

AHEAD OF THE CURVE 

Defining Health Quality 

The RAND Health Insurance Experiment (HIE), 

conducted in the 1970s, remains the largest 

health policy study in U.S. history and the only 

experimental study of how various cost-sharing 

arrangements affected people’s use of health 

services, the quality of care they received, and 

their health status. More than any other study, 

the HIE shaped the evolution of health services 

research in the United States and influenced 

policies for health care financing. In conducting 

the HIE, RAND developed basic measures of 

health care quality that are used around the 

world to determine whether adequate medical 

care is actually being delivered. 

To address this information gap, RAND researchers 

collaborated with pediatricians from the Seattle 

Children’s Hospital Research Institute and researchers 

at the University of Washington School of Medicine to 

conduct a comprehensive examination of the quality of 

pediatric care, based on medical records of more than 

1,500 children randomly selected from 12 metropolitan 

areas. The results, released in 2007, shocked the medical 

community. Finding that U.S. children fare even worse 

than adults when it comes to getting quality care, the 

study revealed that, on average, children receive care 

consistent with recommended guidelines only 46 percent 

of the time. The study also found that quality varied 

widely according to type of care. Children received 68 

percent of recommended care for acute medical problems, 

but only 53 percent of recommended care for chronic 

medical conditions, and 41 percent of recommended 

preventive care. This means children are not receiving 

recommended preventive care and screening services, such 

as regular weight and measurement checks to ensure that 

they are growing properly and are not at risk for obesity; 

nor are they receiving standard care for prevalent, serious 

conditions, such as asthma and diarrhea. Moreover, most 

of the children studied had insurance—suggesting that the 

results may be even worse if data included the legions of 

uninsured and underinsured American children. 

RAND’s earlier study illustrating the poor state of adult care 

provided a wake-up call to improve health care quality for 

individuals over age 18. Study author McGlynn says this 

latest study is similarly refocusing attention on the quality 

of services delivered to children: “Up until now, most 

people in the medical community assumed that quality 

medical treatment was not a problem for children. Our 

study tells us that’s not true. We need to get health care 

right for children—and we need to do it now.” Poor quality 

care is also likely to impose even greater financial burden 

on an already overburdened system. Chronic conditions 

such as diabetes and hypertension are on the rise in children, 

in part due to an increase in obesity levels. Failure to 

effectively intervene in childhood results in poorer adult 

health and increased medical spending to address the wide- 

ranging health problems caused by unmanaged conditions. 

But why does such a gap exist between the care medical 

care professionals know is needed for children and that 

which is actually provided to young patients? Researchers 

posit that systemic barriers such as insurance compensation 

systems, which effectively limit the amount of time doctors 

spend with child patients, likely play a role, but more 

research is needed to clarify specific causes and craft effective 

solutions. In the meantime, study authors note that 

a critical first step to closing the quality gap is addressing 

the information gap. With the problem now illuminated, 

researchers recommend that next steps include a greater 

investment in health information technology systems, as 

well as increased attention to documenting and measuring 

quality of care for children.

2 0 0 7 R A N D A N N U A L R E P O R T 5

6 2 0 0 7 R A N D A N N U A L R E P O R T

2 0 0 7 R A N D A N N U A L R E P O R T 7 

A New Division of Labor for 

Meeting New Security Challenges 

For six decades, RAND has helped the Department of Defense 

(DoD) better understand and respond to a wide range 

of threats and adversaries. Since the commencement of 

Operation Iraqi Freedom in 2003, much RAND analysis has 

focused on helping DoD meet the current demands of war. 

Still another set of projects has drawn on RAND’s unique 

analytical strength in taking the long view and looks 

beyond Iraq to ensure that the United States is prepared 

to handle a range of additional, emerging security threats 

posed by terrorist groups, nuclear-armed adversaries, and 

enemy forces equipped to conduct sophisticated anti-access 

operations. 

In 2007, a team of RAND researchers led by Andrew R. 

Hoehn, a RAND vice president and director of RAND Project 

AIR FORCE, proposed that the divergent nature of new security 

challenges faced by the United States will require all 

four military services to rethink the way they are manned, 

equipped, and deployed. Hoehn, a former Deputy Assistant 

Secretary of Defense for Strategy who has participated in all 

major reviews of defense policy and strategy since the end 

of the Cold War, says, “Today’s global security landscape 

presents a new paradigm. U.S. forces are being called upon 

to perform new missions far outside their normal repertoire, 

from confronting terrorism spawned by radical Islam to the 

possibility of fighting new nuclear powers.” 

The RAND report contends that U.S. strategy for sizing 

military forces must (a) account for long-term, day-to-day 

demands of countering terrorism and insurgency and (b) 

preserve the ability to project sizeable military forces to 

more than one geographic region at a time. Both requirements 

are necessary to support long-term U.S. national security 

goals, but distinctly different patterns of cooperation 

among the military services must be developed. The report 

goes on to note that U.S. military forces will need to remain 

engaged in remote areas of the world, particularly along the 

periphery of Asia. “The era is gone when strategists could 

divide the planet into regions where the nation has important 

interests at stake . . . and where it does not,” the report 

notes. “In terms of classic geopolitics, Afghanistan and Sudan 

were beyond the strategic purview of the United States, 

yet they were the breeding grounds of al Qaeda.” 

The report recommends recasting U.S. defense strategy to 

bring America’s defense capabilities into better alignment 

with the nation’s broader goals. This includes significantly 

increasing the emphasis on helping to create or enhance 

stability in key areas abroad. To do this, DoD should 

consider focusing a much larger proportion of U.S. ground 

forces on direct and indirect stability operations and accept 

the risk of shifting some of the burden for deterring and 

defeating large-scale aggression to air and naval forces. 

This decision would permit the Army and Marine Corps, 

in conjunction with Special Operations Forces, to improve 


Military Manpower 

In the 1960s, RAND 

recommended that the U.S. Department of Defense end the 

draft and move to an all-volunteer force (AVF) in order to improve 

morale, retention, and fighting strength. The proposal was 

contentious and raised concerns about relying on volunteers to 

maintain a professional military at required quality levels. However, 

consistent with RAND’s initial analysis, the quality of the force has 

dramatically improved in the three decades since establishment of 

the AVF: IQ scores are higher, the percentage of new recruits with 

high school diplomas has increased, and there are more career 

personnel, bringing increased proficiency and professionalism to 

the force. Moreover, the AVF is more broadly representative of the 

American public, minimizing concerns of prior generations that 

conscription was implemented unfairly and the burden of military 

service fell disproportionately on underprivileged groups. 

their stability-operations capabilities by relieving them 

of the requirement to provide forces for more than one 

major “conventional” war. The Navy and Air Force would 

retain their primary focus on large-scale power-projection 

operations and would continue to provide essential 

enabling capabilities for direct and indirect stability 

operations. 

Finally, the report cautions that while striving to fix what 

is broken, DoD should be careful not to break what is fixed. 

Continued, selective investment in areas in which the 

United States currently excels will be needed alongside the 

new initiatives required to address the nation’s emerging 

security problems.


Smart Rebuilding for a New, 

Better Gulf Coast 

In the two years since Hurricane Katrina devastated the 

Gulf States region of the United States, recovery efforts 

have proceeded along multiple dimensions: restoring 

infrastructure, reviving economies, treating emotional 

trauma. The RAND Gulf States Policy Institute has been 

a valuable partner in the recovery process, conducting 

careful analyses of these issues and many others to 

provide regional decisionmakers with evidence-based 

strategies for rebuilding communities in ways that will 

satisfy current and future needs. 


Affordable Housing 

RAND’s Housing Assistance 

Supply Experiment, conducted in the early 1970s and one of the 

largest single social experiments ever undertaken, contributed 

to changes in the U.S. housing code that made cash subsidies 

available to low-income groups. It showed that cash housing 

allowances benefit the most needy families more and cost less 

than constructing housing projects. It also debunked concerns 

that cash allowances would inflate housing costs and showed 

instead that allowances improve housing quality for recipients 

while also putting pressure on the overall market to raise quality 

more generally. 

A central challenge at the core of broader recovery plans 

has been restoration of the region’s badly damaged housing 

stock. Businesses can return, and school and government 

institutions can reopen, but the impact will be 

minimal unless workers, customers, and students have a 

safe and affordable place to live. A 2007 report by Kevin 

McCarthy and Mark Hanson examined the status of 

residential rebuilding efforts in Mississippi’s three coastal 

counties of Hancock, Harrison, and Jackson. These 

areas were the hardest hit by Katrina, with 60 percent of 

residences damaged or destroyed. The report provides a 

comprehensive quantitative assessment of the extent and 

nature of the damage as well as the progress made toward 

recovery, and makes recommendations to refocus strategies 

on specific policy levers likely to have the broadest 

beneficial effects. 

“What we found,” notes McCarthy, “is that while a fair 

amount of residential rebuilding is occurring across the 

region, construction of affordable housing is seriously lagging.” 

The study contends that failure to replenish affordable 

housing has likely slowed the overall pace of regional 

economic recovery, as it makes it difficult to attract the 

construction laborers and other workers needed to make 

infrastructure improvements. While findings indicate that 

replacement of all housing types is expected to take at 

least three more years at a cost of more than $4 billion, the 

study notes the near-term imperative of implementing a 

balanced growth plan that provides housing for people at 

every income level. 

Access to financing appears to be the single biggest 

obstacle to the residential rebuilding effort. Despite the 

availability of numerous financial resources—including 

insurance proceeds, Mississippi Homeowner Assistance 

Grants, and government loans—gaps in financing remain. 

These gaps are experienced most prominently by landlords 

of multifamily rental properties as well as uninsured and 

underinsured households that suffered major damage. 

Filling these gaps, the study reveals, would do more to 

expedite recovery than any other policy action. 

The report has been well-received and is focusing needed 

attention on developing policies to ensure that housing is 

rebuilt both quickly and equitably. But the study’s authors 

also caution that additional steps are needed to mitigate 

against damage from future storms. “Rebuilding efforts 

following the damage caused by Hurricane Camille in 1969 

put speed over mitigation measures,” McCarthy notes. 

“The legacy of that decision can be seen in much of the 

widespread destruction wrought by Katrina.” Acknowledging 

that Hurricane Katrina is not the first hurricane to 

devastate the region, nor is it likely to be the last, the report 

recommends that reconstruction policies be balanced with 

stricter zoning regulations and other “smart growth” principles 

to protect against damage from future storms. Some 

progress has been made in this regard, and the study points 

to the Mississippi Homeowners Grant Program, which 

requires grant recipients to comply with new and stricter 

building codes, including elevation requirements, and 

the purchase of floodplain insurance. But such mitigation 

measures tend to increase the cost of rebuilding, which 

increases political pressure to dispense with such measures 

in favor of more rapid and inexpensive construction.




Confronting an Uncertain Future 

Tackling exceptionally complex problems requires new 

ways of thinking. Since the 1950s, RAND has led the way 

in developing many now-famous analytical methods such 

as dynamic programming, assumption-based planning, 

and multiple applications of game theory, now used by 

public and private decisionmakers worldwide. 

In 2007, RAND researchers used a new analytical method 

called robust decisionmaking (RDM) to help decisionmakers 

address a range of complex and uncertain issues, from 

climate change to terrorism, and craft current policies 

that are likely to hold up against a wide range of plausible 

futures. RDM works by using computer simulations to create 

thousands of possible future scenarios for a given issue, 

and then using search algorithms, interactive visualization, 

and statistical analyses to identify current policy options 

that will be the most “robust” in addressing a problem over 

the long term—that is, those options that achieve their 

objectives regardless of whether future conditions turn out 

as expected. 

For issues involving deep uncertainty, the approach 

represents a significant advance over traditional decision 

analytics typically relied on by policy analysts. Notes 

RAND researcher Rob Lempert, who has been involved in 

numerous applications of RDM in recent years, “Traditional 

decision analytics involve developing policy options based 

on the most probable future conditions. But when decisions 

involve deep uncertainty, the most likely future scenario 

can’t be reliably identified or agreed upon. In such cases, 

traditional approaches can cause decisionmakers to severely 

underestimate problems or face surprises down the road.” 

RDM, on the other hand, embraces uncertainty and allows 

policymakers to make better decisions by answering a 

fundamentally different question: “What actions today can 

best usher in desirable outcomes regardless of what future 

we face?” 

In 2007, RAND researchers used RDM to help water 

resource managers in Southern California tailor their 

long-range investment plans to better address the potential 

impacts of climate change. These decisionmakers have to 

confront the possibility that in coming decades Southern 

California may face more and more lengthy droughts. But 

even the best scientific projections about the impacts of 

climate change and the probability, length, and frequency 

of droughts contain many uncertainties. RAND’s application 

of RDM to demonstrate the impact of various management 

strategies taken today across large numbers of 

potential computer-generated future scenarios is helping 

these managers make better decisions to ensure a reliable 

and high-quality water supply for the future. 

RDM was also used to help federal lawmakers evaluate the 

implications of renewing and/or revising the Terrorism Risk 

Insurance Act (TRIA), the law passed after 9/11 to provide 

a temporary federal backstop for property and casualty 

claims resulting from the massive damages incurred in the 

attacks. The challenge Congress faced was how to effectively 

and fairly allocate financial risk for terrorist events 

which, by their nature, are fraught with deep uncertainties. 

For example, there are uncertainties about the frequency 

and types of terrorist attack—conventional, nuclear, biological, 

chemical, or radiological—and there are uncertainties 

about the rate at which businesses would “take up” 

insurance coverage for policy losses under different government 

interventions in the terrorism market. There is also 

uncertainty about whether and how much the government 

will compensate businesses without insurance after any 

terrorist attack. Using an RDM approach, RAND researchers 

were able to show how different legislative strategies would 

perform under thousands of possible futures. The results 

showed benefits to leaving TRIA intact, but suggested additional 

consideration be given to planning for unconventional 

terrorist attacks. 


Better Decisionmaking 

In the 1950s 

and ’60s, RAND developed the Delphi method, a systematic 

interactive method for eliciting the intuitive judgments of 

experts and for building a group consensus. The technique has 

proven useful in extrapolating informed opinion in the absence 

of exact knowledge. Its aim initially was to assess the direction 

of long-range trends, with special emphasis on science 

and technology, and their probable effects 

on society. 

“RDM can help prevent policymakers from preparing 

for a ‘best guess’ scenario that ends up being a bad 

guess,” concludes Lempert. “When the future is most 

ill-defined and unpredictable, an RDM approach 

can help policymakers take actions today that can 

positively shape our long-term future.”


Strengthening Surveillance 

and Response 

The threat of a human influenza pandemic is a top concern 

for global health officials. During the last five years, more 

than 300 human cases of an avian flu virus known as H5N1 

have been confirmed in 14 countries. Should the virus mutate 

to permit easy human-to-human transmission, the implications 

would be grave: In the United States alone, it is esti- 

mated that as much as 30 percent of the population could become 

infected, at a cost between $71 billion and $167 billion. 


Public Health Preparedness 

For more than 

a decade, RAND has provided technical assistance to the U.S. 

Department of Health and Human Services to improve the readiness 

of local and state health departments to respond to public health 

emergencies, developing proficiency benchmarks, performance 

measurement tools, and preparedness exercises that have helped 

shape Centers for Disease Control and Prevention guidance for 

enhancing state preparedness plans. In July 2005, RAND conducted 

a series of public health exercises for the state of Georgia to 

help officials from a range of agencies refine and strengthen 

collaborative processes for responding to a public health 

emergency. Weeks later, Hurricanes Katrina and Rita hit the Gulf 

States region of the United States, causing thousands of fleeing 

victims to seek safety within Georgia’s borders. Georgia 

health officials cited the RAND-led exercises as a significant 

contributor to successful management and care of 70,000 

evacuees who fled to Georgia for safety. 

In response to this threat, a substantial body of RAND 

research has focused on strategies for strengthening public 

health response systems both at home and abroad to prepare 

for a possible human influenza pandemic. In 2007, RAND 

researchers published a practical framework for improving the 

United States’ global influenza surveillance system, a key first 

line of defense against a pandemic, and conducted simulation 

exercises for a consortium of six Asian nations uniquely 

vulnerable to an outbreak and another consortium of three 

Middle Eastern countries (Israel, Jordan, and Palestine) to test 

the effectiveness of their existing detection, monitoring, and 

containment plans. 

Effective pandemic preparedness requires a comprehensive 

and reliable early detection system. The U.S. Department 

of Health and Human Services (HHS) plays an important 

role in human influenza surveillance both domestically and 

worldwide. To strengthen HHS surveillance policy and better 

manage resource allocation, a multidisciplinary RAND 

team conducted a yearlong investigation into best methods 

for detecting early cases of influenza illness that have the 

propensity to become pandemic. The study examined disease 

surveillance in a much broader and more systematic way than 

has been done before, with particular emphasis on identifying 

new strategies for surveillance that are unconstrained by 

traditional public health approaches. The findings set forth 16 

specific strategies for improving surveillance that range from 

using new sources of disease information (e.g., the community, 

the electronic media, and nongovernmental organizations) 

to seeking new surveillance signals (e.g., disease events 

among persons who do not or cannot seek clinical services). 

The study also recommends the formation of strategic partnerships—with 

other U.S. government agencies, international 

organizations, foreign laboratory networks, foreign development 

agencies, and a range of nongovernmental organizations—as 

a key approach to improving global surveillance. 

Through strategic partnerships, HHS can extend its reach, 

potentially at little or no additional cost, and thus optimally 

direct its own resources while leveraging partners to help produce 

even greater improvements in surveillance globally. The 

RAND team combined these findings into a unique interactive 

tool to be used by surveillance agencies in evaluating which 

combination of strategies will help to improve the chances 

that a case of disease is accurately detected and confirmed by 

a reference laboratory, and to reduce the time it takes to do so. 

Benefits of the interactive tool include more effective policymaking 

and also more efficient resource allocation. 

In 2007, RAND researchers also contributed to non-U.S. pandemic 

preparedness efforts by conducting a series of simulation 

exercises for members of the Mekong Basin Disease Surveillance 

Network (MBDS)—the Kingdom of Cambodia, the 

People’s Republic of China, Lao People’s Democratic Republic, 

the Union of Myanmar, the Socialist Republic of Vietnam, 

and the Kingdom of Thailand. With large numbers of people 

and animals crossing shared borders each day, these countries 

face heightened risks of an outbreak. The RAND-developed 

tabletop exercise, the first of its kind, tested MBDS systems 

for responding to a plausible pandemic threat. The exercise 

helped to expose gaps and weaknesses in existing surveillance 

and response systems and helped foster collaboration among 

health officials in each nation.



The Impact and Promise of 

No Child Left Behind 

Under the No Child Left Behind Act of 2001 (NCLB), 

schools are held accountable for ensuring that all students 

reach proficiency on state assessments by 2013–14. In 

2007, RAND released a series of studies evaluating various 

aspects of NCLB including implementation of its many 

requirements, effects on student achievement and teacher 

quality, and the impact of options afforded parents of 

children attending low-performing schools. The results 

give NCLB mixed reviews and are helping educators and 

federal policymakers better understand NCLB’s impact and 

limitations and chart a course for revision and improvement 

of the law. 

In one study, researchers looked at schools’ progress in 

implementing NCLB’s accountability provisions. They 

found that most states, districts, and schools had met accountability 

requirements and 75 percent of schools were 

making adequate yearly progress toward proficiency in 

math and reading. However, because NCLB allows states 

to define “proficiency” differently, a student deemed to be 

proficient in one state might be considered not proficient 

in another. The same is true for schools and districts. 

Without national proficiency standards, children in states 

that have lower standards are at risk of being left behind, 

even as NCLB’s provisions are being implemented and adhered 

to. Moreover, many schools report needing greater 

assistance in fulfilling NCLB’s requirements when it comes 

to serving students with special needs, such as those with 

disabilities and limited English proficiency. 

Researchers also aimed to identify factors that enhance 

the implementation of its standards-based accountability 

systems, encourage positive changes in teaching practices, 

and improve student achievement. Researchers learned 

that educators found implementation of the law difficult: 

Superintendents cited inadequate funding; principals 

cited insufficient staff time to meet administrative 

responsibilities; teachers reported insufficient time 

for instruction and planning. And large majorities of 

teachers reported being hindered by the wide range of 

student abilities in their classes, students’ lack of basic 

skills, inadequate parental support, and absenteeism and 

tardiness. NCLB implicitly challenges teachers to promote 

high achievement despite these conditions, but most 

teachers considered the expectation unrealistic. Teachers 

also cite as unfair the fact that “adequate yearly progress” 

in test scores is defined in terms of grade-level proficiency 

rates rather than individual-level progress over time, 

thus failing to give credit for learning gains promoted 


by teachers at all points along the scoring spectrum. To 

address such concerns, researchers recommend improving 

alignment among standards, tests, and curriculum; 

providing educators with professional development 

assistance; and exploring more accurate ways to measure 

performance. They also recommend the federal government 

explore different types of metrics that take improvement 

into account across the distribution of achievement. 


Gauging Educational Reform 

RAND Education 

innovated the practice of rigorous, independent evaluations 

of school reform programs. In one early study in the 1970s, 

RAND examined nearly 300 reform efforts in 18 states and 

found that most reform programs had no lasting effect. Lasting 

change depended not so much on a program’s content but on its 

implementation, particularly on the active commitment of district 

leaders, including the superintendent and school principals. 

The Change Agent study, as it came to be called, is credited 

with introducing the “implementation perspective” into the 

public policy debate on education. 

RAND also evaluated whether NCLB’s two options for 

parents whose children attend schools making inadequate 

progress work to improve achievement. Option 1 is the 

opportunity to transfer a child to a higher-performing 

school. Option 2 is the opportunity for low-income 

parents to enroll the child in supplemental educational 

services, such as tutoring, remediation, or other academic 

instruction. Researchers found that Option 2 did have a 

significant positive effect on reading and math achievement 

scores in the district studied, and they recommend 

ways to support this option and make it more available to 

students. They did not find an achievement effect associated 

with Option 1, but the number of participants 

in most districts was quite small, making it difficult to 

conclusively assess its effects.


Counterinsurgency for a New Era 

For five decades, RAND analysts have studied insurgencies 

and counterinsurgency (COIN) operations to create 

a detailed body of expert knowledge on the patterns 

and techniques of counterinsurgency, the effective 

organizational and operational approaches for successful 

campaigns, and the unique political and psychological 

tactics involved in COIN operations. As insurgent threats 

evolve and assume new forms, the United States must 

also evolve in its ability to counter potentially prolonged 

threats in several parts of the world. New RAND analyses 

on COIN published in 2007 are helping policymakers at 

the highest level of government better understand and 

craft responses to the insurgencies currently faced by the 

United States in Iraq and Afghanistan, as well as those it 

is likely to face in the future. 


Countering Insurgencies 

In 1962, RAND 

convened the Symposium on Counterinsurgency in Washington, D.C., 

to bring together those with firsthand experience of guerrilla and 

counterguerrilla warfare to build a comprehensive body of expert 

knowledge. The subjects discussed included patterns and techniques 

of counterinsurgency, effective organizational and operational 

approaches, political action, psychological warfare, intelligence and 

counterintelligence, and requirements for victory. One year later, 

RAND consultant David Galula published his groundbreaking treatise, 

Pacification in Algeria, which reconstructs the French response to 

Algeria’s nationalist uprising. Galula’s theories on counterinsurgency 

and pacification, and his observations on the political, psychological, 

and military aspects of the Algerian war, challenged conventional 

COIN theories of the day and present approaches for predicting, 

managing, and resolving insurgent conflict that bear especial 

relevance for present-day COIN operations. 

In one report, researchers examine six historical COIN 

campaigns from the 19th and 20th centuries and draw 

lessons learned to help current and future leaders avoid 

repeating prior mistakes and to build a foundation 

for developing contemporary COIN strategy. The 

historical operations studied were selected for their 

varied characteristics relating to geography, historical 

era, outcome, type of insurgency, and the level of U.S. 

or foreign involvement, and include the Philippines 

(1899–1902), Algeria (1954–1962), Vietnam (1959–1972), 

El Salvador (1980–1992), Jammu and Kashmir (1947– 

present), and Colombia (1963–present). Within each case 

study, researchers focused on specific issues such as the 

counterinsurgents’ ability to innovate and adapt, the 

need to develop an approach for recognizing threats, and 

the tactics employed for confronting the insurgencies. 

From this, they identify which tactics, techniques, and 

procedures led to success and which to failure. 

In another comparative analysis, RAND takes a closer 

look at the recently successful stability operations led 

by Australia in the Solomon Islands. When crime, 

corruption, and escalating militia violence in the small 

island nation threatened to topple government control, 

Australia organized the Regional Assistance Mission 

to Solomon Islands (RAMSI) to provide support in 

reestablishing order and to help rebuild the violencetorn 

civil society. With only several weeks to prepare, 

RAMSI personnel arrived to the Solomon Islands armed 

for conflict but equally ready to restore peace without 

using force. The RAND study reviews the successes, 

and the shortcomings, of RAMSI operations through 

the lens of broader application to current and future 

counterinsurgency efforts. It highlights as the primary 

hallmarks of RAMSI’s success the effective orchestrating 

of intragency capabilities, the ability to capitalize on 

multinational resources, and gaining the moral and 

operational high ground in the conflict. 

A third study looks at current U.S. COIN strategy, 

which relies heavily on the employment of American 

military force to deal with radical Islamic insurgents, 

and recommends an alternative approach that places 

cognitive abilities and indigenous capabilities at the 

center of U.S. efforts. The author argues that traditional 

COIN tactics used by the United States and its allies 

today are, and will continue to be, ineffective against 

modern insurgencies that are increasingly decentralized, 

geographically dispersed, and located within an urban 

landscape that includes innocent civilians as well as 

militants. Gaining the upper hand against globalized 

insurgencies calls for greater investment in brain power, 

decisionmaking, and better utilization of the tools of the 

information age. With a two-part plan that focuses on 

developing institutional conditions conducive to smarter 

COIN and implementing measures designed to develop 

key cognitive abilities in soldiers, police, diplomats, 

aid providers, and others engaged in COIN, the author 

proposes a future where COIN and stability operations 

succeed with brains, not just brawn.



OUTREACH 

Improving the Quality of the Policy Debate 

RAND’s commitment to making a difference means that the scholarly objectives of expanding 

knowledge, illuminating issues, and developing new ideas are important means rather than ends. 

Communicating our research findings to decisionmakers who can use them is an essential part 

of RAND’s mission. In 2007, our dissemination activities were impressively broad, yet effectively 

targeted to influential decisionmakers capable of using our findings to inform their decisions 

and influence positive change. 

Advising Senior Executive Branch Officials. RAND 

researchers conducted numerous briefings for top military 

and civilian leadership on issues of geopolitics and global 

security; intelligence policy; military force structure; 

logistics and infrastructure; personnel, training, and 

health; and acquisitions and technology. In addition, 

RAND researchers 

• briefed White House leadership on findings from a study 

on counterinsurgency efforts in Afghanistan; 

• helped senior staff from the State Department, the Joint 

Chiefs of Staff, and other offices and agencies assess the 

strategic and operational challenges posed by Iran and 

evaluate options for meeting those challenges; 

• briefed senior officials in the Department of Homeland 

Security on issues including passenger rail security; 

• briefed Department of Veterans Affairs officials on issues 

related to post-traumatic stress disorder; 

• made presentations to the Secretary of Education, other 

U.S. Department of Education officials, and numerous state 

education officials on the impacts of No Child Left Behind. 

1946 

The First Satellite Design > More than 

11 years before Sputnik, RAND released its 

first report while still at Douglas Aircraft, 

Preliminary Design of an Experimental World- 

Circling Spaceship. At the time, it was the most 

comprehensive engineering study of the nutsand-bolts 

realities of a satellite spacecraft. 

Informing Congress. RAND delivers research findings 

and lends analytical expertise to Congress to help 

legislators make better-informed decisions about the 

nation’s many challenges. 

• RAND researchers testified before Congress on 

28 occasions, contributing objective analysis 

to debates on issues such as the federal role 

in supporting alternative energy investment, 

renewal of the Terrorism Risk Insurance Act, 

and understanding terrorist ideology. 

• RAND convened dozens of bipartisan briefings to 

discuss findings on issues at the top of the legislative 

agenda, including challenges facing the global 

supply chain, the impact of the State Children’s 

Health Insurance Program on children’s quality 

of life, and challenges for U.S.–China relations. 

• Electronic newsletters customized for a congressional 

audience are delivered monthly to present 

research findings relevant to timely policy 

debates on Capitol Hill.

Supporting State and Local Decisionmaking. RAND 

research was also presented to a significant number of 

senior officials at state and local levels. 

• Research from the RAND Gulf States Policy 

Institute on Hurricane Katrina’s impact on school 

attendance and test scores was briefed to Louisiana 

state officials, as were findings from a separate 

analysis of Louisiana’s hurricane protection and 

coastal restoration planning. Findings that exposed 

the lagging pace at which affordable housing 

is being rebuilt in the most damaged coastal 

counties in Mississippi were also briefed widely 

among regional public and private stakeholders in 

Mississippi. 

• In California, researchers briefed lawmakers and 

other senior state officials on a range of top issues, 

including improving the seismic safety of hospitals 

and the adequacy and efficiency of preschool 

education. 

• In Pennsylvania, researchers provided senior state 

and county officials with the first data available 

about the fiscal impact and cost savings of an 

innovative mental health courts program. Findings 

about the impact on academic performance of afterschool 

tutoring programs in Pittsburgh’s public 

school system reached the district superintendent, 

local foundations, and supplemental services 

providers. 

• Findings from several 2007 RAND Health studies 

were requested by a number of state legislatures 

and state and local public health agencies to help 

inform policy debate about enhancing vaccination 

coverage among adults and promoting evidencebased 

falls prevention strategies. 

Briefing International Decisionmakers. In addition 

to the outreach conducted by RAND Europe and the 

RAND-Qatar Policy Institute to brief their respective 

policy communities on issues of regional importance, 

RAND staff regularly engage with senior policymakers 

outside the United States to lend insights on matters 

of international interest. 

1948 

The JOHNNIAC > When the need for 

solutions to complex analytic studies 

outstripped the computing power of 

the time, RAND decided to build its own 

computer. Named after mathematician 

John von Neumann, the JOHNNIAC was 

one of the first mainframe computers with 

stored memory. 


• RAND’s acclaimed research on strategies to help 

a Palestinian state succeed once a final status 

accord is reached was briefed to former U.K. 

Prime Minister Tony Blair, now Special Envoy for 

the Quartet on the Middle East. 

• Findings from The Beginner’s Guide to Nation- 

Building were briefed to the World Bank and the 

entire staff of the United Nations’ Department of 

Peacekeeping Operations, and NATO distributed 

copies of the report to 50 top staff members on 

the ground in Afghanistan. 

• RAND Europe’s research on detecting fraud and 

error in the U.K. social security system formed 

the basis of a World Bank distance-learning 

module that is being used to train Bank clients 

and staff worldwide on social security fraud 

issues. 

Reaching Private-Sector Decisionmakers. Increasingly, 

RAND findings are being discussed with senior 

executives in the corporate world. Notable examples in 

2007 include 

• numerous briefings by researchers to senior 

insurance industry leaders on matters related to 

public–private risk allocation for catastrophes; 

• presentations to major shopping mall owners 

on strategies for safeguarding their properties 

against terrorism; 

• a conference for commercial logistics 

professionals to discuss issues confronting the 

global supply chain; 

• a meeting among Silicon Valley information 

technology executives to explore the impact of 

cyber crime on U.S. businesses; 

• recent work by the RAND Gulf States Policy 

Institute on economic revitalization and 

organizing public–private partnerships, which 

was briefed extensively to business interests in 

New Orleans. 

1950 

Seminal Study of the Soviet Union > 

RAND pioneered the field of Soviet studies, 

beginning in 1950 with The Operational 

Code of the Politburo by Nathan Leites, 

which probed the political strategy of 

Bolshevism and aided the United Nations’ 

armistice-negotiating team in Korea.


OUTREACH 

Enriching the Public Debate 

An important part of RAND’s public service mission is to enrich the quality of public debate on top policy 

issues. We strive to disseminate the findings from our objective, high-quality analyses to as broad an 

audience as possible through coverage by news outlets around the world; through commentary by RAND 

researchers; and via our Web site, which provides a portal for exploring RAND’s library of knowledge. 

A Public Resource 

In 2007, findings from RAND research were made 

publicly available in more than 1,000 published reports 

and documents. The majority of these materials, along 

with over 10,000 other RAND documents published 

since 1946, are available on RAND’s Web site for free 

download. Altogether, more than four million copies of 

RAND publications were downloaded from www.rand. 

org in 2007. RAND also introduced 67 RSS feeds to deliver 

RAND content from across five categories—featured 

research, featured projects, news and events, hot topics, 

and bookstore releases—to policy observers desiring the 

latest updates on RAND findings. This expands RAND’s 

current offerings of subscription services, which include 

the RAND News Bulletin, a monthly electronic newsletter of 

broad public interest that delivers news of the latest RAND 

findings and analyses, and the quarterly RAND Review, 

RAND’s flagship periodical, which covers big policy issues 

with an eye for the important details. 

1952 

Cost Analysis and Logistics > 

RAND produced the first 

program-based budget for the 

Air Force and developed the 

basic concepts of total force 

cost analysis. 

Sharing Findings Through Media 

In 2007, more than 2,700 individual media reports 

featuring RAND research or researchers were published 

or broadcast by newspapers, magazines, news services, 

and television and radio networks around the world. 

Studies published in 2007 that received the heaviest 

news coverage included analyses of (1) the poor quality 

of pediatric health care; (2) the safety risks posed by 

senior drivers; (3) racial patterns among pedestrian 

stops made by New York City police officers; (4) the 

academic achievement of students enrolled in privately 

run public schools in Philadelphia; and (5) the ability 

of California hospitals to meet deadlines for new 

seismic safety standards. 

RAND researchers also inform public debate via 

published op-ed commentaries. In 2007, more than 

70 op-eds were published in influential media outlets 

including the New York Times, Washington Post, Wall 

Street Journal, Los Angeles Times, Financial Times, The 

Guardian, and the International Herald Tribune.

These commentaries provided timely, reasoned 

assessments of issues ranging from mounting ethnic 

tensions in Turkey’s and Afghanistan’s increasing civil 

strife to strategies for easing urban traffic congestion and 

planning for the consequences of our aging population. 

Providing a Forum for Public Engagement 

RAND hosted a variety of events in 2007 to inform 

the public debate on a broad spectrum of top policy 

problems. Policy Forums in Los Angeles, Washington, 

D.C., and Pittsburgh brought together RAND experts 

with prominent local policymakers and preeminent 

thinkers to discuss and debate nation-building in Iraq 

and beyond; the impact and promise of the No Child 

Left Behind Act; strategies for helping youth exposed to 

violence; America’s obesity epidemic; efforts to sustain 

the nonprofit arts sector in U.S. urban centers; new 

responses to homelessness; challenges in funding public 

transportation; and more. RAND also hosted lectures by 

visiting dignitaries including Admiral Thad W. Allen, 

Commandant of the U.S. Coast Guard, who addressed 

concerns regarding port security and how the service is 

preparing to deliver effective emergency response in the 

wake of natural disasters like Hurricane Katrina. 

1954 

Selection and Use of Strategic Air Bases > The 

report by a team led by Albert Wohlstetter shook the 

foundation of nuclear deterrence policy by shifting 

the United States from a first-strike to a secondstrike 

posture. It suggested placing air bases closer 

to the United States and relying on long-range 

bombers and aerial refueling aircraft, eventually 

saving the Air Force billions of dollars. 


73735 737 73735 35 45963 459 45963 63 78134 781 78134 34 

63873 638 63873 73 

02965 58303 90708 20025 

98859 23851 27965 62394 

33666 62570 64775 78428 

81666 26440 20422 05720 

15838 47174 76866 14330 

89793 34378 08730 56522 

78155 22466 81978 57323 

16381 66207 11698 99314 

75002 80827 53867 37797 

99982 27601 62686 44711 

84543 87442 50033 14021 

77757 54043 46176 42391 

80871 32792 87989 72248 

30500 28220 12444 71840 

1955 

A Million Random Digits with 

100,000 Normal Deviates > 

The book is still the largest 

source of random digits and 

normal deviates used by 

statisticians, physicists, poll 

takers, lottery administrators, 

and quality control engineers.


No degree 

1% 

RAND Staff 

Approximately 1,600 people from more than 45 countries 

work at RAND, representing diversity in work experience; 

political and ideological outlook; race, gender, and 

ethnicity; and academic training. This diversity reinforces 

RAND’s core values of quality and objectivity by promoting 

creativity, deepening understanding of the practical 

effects of policy, and ensuring multiple viewpoints and 

perspectives. 

Most staff work at RAND’s three principal U.S. locations: 

Santa Monica, California; Arlington, Virginia; and 

Pittsburgh, Pennsylvania. Others operate from the RAND 

Gulf States Policy Institute located in Jackson, Mississippi 

and New Orleans, Louisiana; RAND Europe in Cambridge, 

UK; and the RAND-Qatar Policy Institute in Doha, Qatar. 

To provide the comprehensive expertise needed to fully 

address public policy issues, RAND hires staff from a 

variety of disciplines. Our researchers represent nearly 

every academic field and profession, from engineering and 

behavioral science to medicine and economics. 

Policy analysis 

7% 

Physical sciences 

4% 

Math operations 

research, 

and statistics 

9% 

Life sciences 

7% 

Political science and 

international relations 

13% 

Engineering 

10% 

Social sciences 

7% 

Economics 

12% 

Arts and letters 

5% 

Computer 

sciences 

3% 

Behavioral 

sciences 

11% 

Law and 

business 

11% 

Management March 2008 


President and Chief Executive Officer 

Michael D. Rich 

Executive Vice President 

Vivian J. Arterbery 

Corporate Secretary 

Barry Balmat 

Director, Pittsburgh Office 

Susan Bodilly 

Director, RAND Education 

Robert H. Brook 

Vice President and Director, RAND Health 

Lynn Davis 

Director, Washington Office 

Richard Fallon 

Vice President and Chief Financial Officer 

Jonathan Grant 

President, RAND Europe 

Eugene C. Gritton 

Vice President, RAND National Security Research Division 

Director, RAND National Defense Research Institute 

Andrew Hoehn 

Vice President and Director, RAND Project AIR FORCE 

Patrick Horrigan 

Vice President and Director, Office of Services 

Jeff Isaacson 

Vice President, Army Research Division 

Director, RAND Arroyo Center 

Arie Kapteyn 

Director, RAND Labor and Population 

Fred Kipperman 

Acting Director, RAND Institute for Civil Justice 

Debra Knopman 

Vice President and Director, RAND Infrastructure, Safety, 

and Environment 

Lindsey C. Kozberg 

Vice President for External Affairs 

Adele R. Palmer 

Vice President, Staff Development and Management Office 

Chair, Research Staff Management Department 

Karen Treverton 

Special Assistant to the President 

1957 

Artificial Intelligence > The first 

successful Artificial Intelligence program 

that used Information Processing 

Languages (IPLs) was developed in 

RAND’s Systems Research Laboratory. 

IPLs were the precursors of popular 

contemporary languages such as LISP.

President’s Awards 


President’s Awards recognize individuals whose work exemplifies RAND’s two core values of quality and objectivity and 

who have also recently made exemplary contributions to the RAND community, through new business development 

or fund-raising initiatives, outstanding outreach and dissemination efforts, or effective participation in internal 

activities aimed at improving the efficiency of our research environment. Made possible by the generosity of donors to 

the RAND Policy Circle, the awards provide staff with research time and support to pursue activities related to career 

development or exploratory research. 

ALLISON ELDER, director of Human Resources, 

for her excellent general leadership of the Human 

Resources department, which has facilitated 

the growth and diversification of RAND, and in 

particular her contributions to the design and 

execution of the yearlong review of RAND’s 

benefits program. 

SUSAN GATES, senior economist, quality assurance 

coordinator for the RAND Institute for Civil Justice, 

and Pardee RAND Graduate School Professor 

of Economics, for her creative leadership of the 

Kauffman-RAND Institute for Entrepreneurship Public 

Policy, her numerous contributions to the Pardee 

RAND Graduate School, and her notable efforts to 

strengthen quality assurance at RAND. 

JENNIFER GOULD, director of Outreach, for 

designing and implementing strategies to increase 

RAND’s visibility as a nonprofit organization, 

and expanding the reach of RAND’s research and 

expertise to philanthropic and other important 

audiences by reconceiving and making substantial 

strategic improvements to the RAND Policy Forum 

and Distinguished Speaker event series. 

STIJN HOORENS, senior analyst, for his serial 

entrepreneurship in attracting new clients to 

RAND; for his wide-ranging and insightful 

research, notably on the effect of low fertility 

rates and population aging in Europe; and for 

stimulating collaborations between RAND Europe 

and other parts of RAND. 

SETH JONES, political scientist, for his 

internationally recognized research on 

counterinsurgency operations, especially in 

Afghanistan; his commitment to extensive 

fieldwork; and his effectiveness in conveying 

the findings and recommendations of his 

research to senior policymakers and in 

the media. 

GEOFFREY JOYCE, senior economist and 

Pardee RAND Graduate School Professor of 

Economics, for his broad and influential 

research on such issues as prescription drug 

coverage design and the cost and management 

of chronic diseases, as well as his effectiveness 

in disseminating the findings of his research. 

SHERRILL LINGEL, engineer, for her multiple 

analytical contributions on a wide range of 

defense issues, ranging from strengthening 

intelligence, surveillance, and reconnaissance 

capabilities to improving aircraft survivability; 

and for her research on the role of homeland 

security in protecting U.S. coastal waters. 

MARK LORELL, senior political scientist, 

for his significant collection of research on 

strategies and processes for acquiring complex 

defense systems, both in the United States 

and other countries; and for his production 

of numerous reports that are now standard 

military-history reference sources. 

FRANCISCO (PACO) MARTORELL, associate 

economist and Pardee RAND Graduate School 

Professor of Econometrics, for his outstanding 

service to PRGS as an instructor and a mentor, 

as well as for his broad research portfolio, which 

has addressed a variety of education-policy issues 

in the United States, postsecondary education in 

Qatar, and military manpower policies. 

STUART OLMSTED, natural scientist and 

group manager for the Policy Sciences Group, 

for his efforts to expand and strengthen 

the Pittsburgh Office, his research on topics 

ranging from military health care to regional 

development, and his role in developing the 

skills and capabilities of a diverse mix of 

policy analysts. 

1958 

Reconnaissance Satellite Systems > Mert Davies and Amrom Katz 

designed components of the first successful U.S. satellite imagery 

reconnaissance system. At their recommendation, CORONA satellites 

took pictures of military targets and returned the exposed film back to 

Earth in reinforced capsules. By eliminating the guesswork regarding 

military arsenals of nations around the world, the CORONA satellite 

program served as a deterrent against the outbreak of war.


The Frederick S. Pardee RAND Graduate School 

Since 1970, RAND has operated an innovative and 

respected graduate school specializing in public policy 

analysis. In 2003, the school received a generous $10 

million pledge from RAND alumnus Frederick S. Pardee 

and was renamed the Pardee RAND Graduate School 

(PRGS). Today, PRGS is the world’s leading producer of 

Ph.D.’s in public policy analysis. 

PRGS takes advantage of its unique location at RAND’s 

headquarters campus in Santa Monica, California, 

by combining advanced course work in economics, 

quantitative methods, and social science methods, 

including fields RAND helped pioneer (such as operations 

research and cost-benefit analysis), with on-the-job 

training that provides students an opportunity to work 

with RAND researchers and clients on interdisciplinary 

teams. The program is designed to train creative 

1961 

The RAND Tablet > The tablet was one of the 

first devices permitting the input of handwritten 

text and freehand drawings into a computer. 

While limited in its capabilities and far too 

expensive for commercial use, the RAND Tablet 

nonetheless showed the way for the PalmPilots 

and Tablet PCs of today. 

thinkers to play important roles in solving major 

problems facing the nation and the world. In addition 

to engaging in rigorous course work, students work 

alongside top RAND researchers on a broad range of 

projects as part of their training. This powerful synergy 

of theory and practice is unique in American education. 

PRGS currently enrolls approximately 100 Ph.D. 

students from more than 20 countries around the 

world: Almost 30 percent are from outside the United 

States. Our students’ prior fields of study represent a 

broad range of disciplines, including economics, social 

science, physical and natural science, engineering, law, 

and medicine. 

The following select student profiles and their 2007 

research projects provide a snapshot of the graduate 

school’s diversity and global perspective.

Before coming to PRGS, Brooke Stearns 

was a program officer with Relief 

International and completed a master’s 

degree at the Institut d’Études Politiques de 

Paris (Sciences Po), where she was a Rotary 

World Peace Scholar. Two of her recent 

projects include developing and conducting a simulation 

exercise on failed states for the World Bank and doing a 

cost analysis on providing antiretroviral therapy treatment 

in Uganda and South Africa. Brooke coauthored the 2007 

RAND monograph Making Liberia Safe: Transformation 

of the National Security Sector. 

Arkadipta Ghosh is a fifth-year PRGS 

fellow from India. He recently completed 

an M.Phil. in economics from the Centre 

for Economic Studies and Planning at 

Jawaharlal Nehru University, where he also 

received his M.A. in economics. One of his 

recent RAND projects examines the consequences of India’s 

extensive land reforms. Arka is looking at the impact of 

land reforms on women’s height, a long-term measurement 

of health, and also on women’s schooling in rural India. 

He has learned that land reforms lead to significant 

improvements in health and well-being for those who 

experience the benefits of such reforms during childhood 

and adolescence. 

Emre Erkut’s interest in the economics 

and governance of organizations is fed 

by his decade-long career in investment 

banking, securities research, and 

management consulting, and formalized 

by master’s-level training in business 

administration at Purdue. Emre is a graduate of Bogazici 

University in Turkey. One of his recent projects is on mass 

litigation. The project analyzes dozens of mass litigation 

episodes in the United States using economics and social 

science perspectives and methods. The goal is to develop 

an empirically grounded scholarly understanding of how 

mass litigations arise, develop, and conclude. The project 

not only covers personal injury litigations (mass tort) 

but also emphasizes the concept of “mass litigation” to 

include environmental, securities, and other litigations 

of mass nature. 

1962 

Packet Switching: Seed of the Internet > 

Paul Baran developed a plan for a 

communication network that would 

withstand a nuclear attack. This notion 

of distributed communications, or 

packet switching, eventually became the 

foundation of the Internet. 


Sara Hajiamiri completed an M.Sc. in 

engineering and policy analysis at Delft 

University of Technology, where her thesis 

dealt with integrated water management. 

Her projects at RAND are wide-ranging, 

including U.S. fuel economy standards and 

automobile pricing, water efficiency in Colorado, Iran’s 

energy sector, Mexican immigration and assimilation, 

and economic development in the areas affected by 

Hurricane Katrina. She coauthored the 2008 technical 

report Estimating the Value of Water-Use Efficiency in the 

Intermountain West. 

Jianhui Hu completed her M.P.P. at Pepperdine 

University while working full-time 

as program research coordinator in a health 

care center for the elderly. She worked for 

five years in the tax bureau for Yunnan 

Province in China, where she was named 

an advanced public servant in the field of policy research. 

On one of her recent RAND projects, Jianhui helped develop 

pandemic influenza tabletop exercises in Southeast 

Asia. She coauthored the 2007 Health Affairs article “The 

Risk-Benefit Balance in the United States: Who Decides?” 

Stephen (Jamie) Gayton earned his M.B.A. 

from the MIT Sloan School of Management. 

He is a lieutenant colonel in the United 

States Army. Jamie recently completed a 

12-month tour of duty in Iraq, where he 

served as a battalion commander in the 3rd 

Infantry Division, which is responsible for reconstruction 

and essential services operations. Jamie and his battalion 

oversaw $300 million in reconstruction activities 

including sewer, water, electricity, sanitation, security, 

health, and education projects. Jamie also pioneered a 

media engagement strategy and an information campaign 

for neighborhood and district leaders. His innovations 

significantly improved the life for millions of Iraqis and 

helped increase security within eastern Baghdad. 

To learn more about RAND’s other educational 

opportunities and fellowships, please visit http:// 

www.rand.org/about/edu_op/ 

1964 

NATO Force Planning > RAND research 

starting in the 1960s led to formation of the 

NATO Defense Planning Working Group, the 

first NATO contingency studies, the preparation 

of NATO Planning Guidance, and the NATO 

Flexible Response defense strategy.


Donor Support Helps 

RAND Stay Ahead of the Curve 

For 60 years, the RAND Corporation has helped shape sound public policy by 

staying ahead of the curve—identifying emerging policy challenges early on and 

formulating effective, practical solutions of enduring value. 

Philanthropic support is vital to RAND’s ability to best serve the public interest. 

Through generous contributions of financial resources and the volunteer leadership 

of distinguished advisors, RAND is able to 

• support research inquiries into critical policy issues that are 

too complex, too controversial, or too little understood for 

conventional client-sponsored research; and 

• compete in the bustling marketplace for talent to attract the 

world’s top minds and emerging stars to help us address 

complex matters for the public good. 

RAND is grateful to the many individuals, corporations, and foundations that 

make gifts of financial support and lend us their time, wisdom, and expertise as 

members of RAND advisory boards and the RAND Policy Circle. The confidence 

and generosity of philanthropic supporters affords RAND invaluable flexibility as we 

pursue our mission to make a difference and stay ahead of the curve on the 

most pressing issues of our time and beyond. 

1966 

Viet Cong Motivation and Morale > In the mid-1960s, 

RAND research teams studied the “motivation and 

morale” among cadres of Viet Cong, the force opposed to 

the South Vietnam government. Some 2,000 interviews 

were conducted with Viet Cong prisoners and defectors. 

The resulting studies identified repression as a vital 

part of the overall enemy effort to erode South Vietnam 

government strength.

1969 

The Future of Cable Television > A RAND study 

concluded that prospects were bright for the cable 

television industry under liberalized FCC rules and 

would not have a detrimental effect on the markets 

for commercial and noncommercial broadcasting. 

The work had an important effect on subsequent 

FCC rulings and permitted the expansion of the cable 

industry as we know it today. 


1970 

Mapping the Planets > Mert Davies became 

part of the Imaging Science Experimenter Team 

that specified the image-making equipment and 

strategies used on the Mars-Orbiter, Venus- 

Mercury, and Jupiter-Saturn-Uranus-Neptune 

space missions.


Contributions at Work 

Supporting Talent 

President’s Awards. Philanthropic support funds exploratory research and professional development 

activities of outstanding RAND staff who have made important sustained contributions to RAND and have 

gone beyond the call of duty in their efforts. (See page 23 for the list of 2007 President’s Award recipients.) 

Distinguished Chairs. Chairs are held by outstanding researchers recognized as world-class among peers. 

The research and leadership activities of chair holders are made possible by philanthropic support. 

Center for Asia Pacific Policy 

Chair in Asia Policy Research 

Bill Overholt 

Center for Russia and 

Eurasia Chair 

Jeremy Azrael 

Distinguished Chair in 

European Security 

Steve Larrabee 


Health Care Services 

Robert H. Brook 

Investing in Innovation 


Health Economics 

Dana Goldman 


Health Quality 

Elizabeth McGlynn 


International Economics 

Charles Wolf, Jr. 


Labor Markets and 

Demographic Studies 

James P. Smith 

RAND President’s Fund. Unrestricted donations to RAND, combined with fees earned from project 

work, provide seed money for promising areas of policy research that are often too complex or too little 

understood to garner support from conventional clients. Some of RAND’s most visionary research has 

been made possible as a result of private donations supporting the RAND President’s Fund. In 2007, 

donor-supported research 

• helped state and local officials in post-Katrina Louisiana and Mississippi 

plan for the return of evacuees, in areas such as housing and education; 

• informed decisionmakers about choices affecting America’s volunteer armed forces; 

• supported the development of innovative research methods, and the 

application of those methods to health care markets; and 

• improved the ability of responders to protect the public against terrorist 

threats, and helped the public better understand those threats. 

1972 

Pioneering Work on Terrorism > After the massacres at 

the Munich Olympics and Lydda Airport, RAND proposed 

a research agenda on international terrorism that 

placed RAND at the forefront of a new and increasingly 

important area of research. RAND led the creation of an 

international network of scholars and government officials 

responsible for dealing with terrorism. 

Paul O’Neill Alcoa 

Professorship 

in Policy Analysis 

Nicole Lurie 

PNC Chair in Policy Analysis 

Dan McCaffrey 


Policy Analysis 

John Graham

1973 

Getting Firefighters to Emergencies Faster > To help New 

York City firefighters make the most of their limited resources, 

RAND developed a groundbreaking computer simulation model 

that showed how to improve fire coverage. The method has 

subsequently been used around the world for locating critical 

facilities and led to the development of standards in use 

internationally regarding appropriate response times for fire 

incidents. 


Major Gifts in 2007 

Improving U.S.-China Relations. In 2007, RAND 

established the Tang Institute for U.S.-China Relations with a 

$2 million gift from the Cyrus Chung Ying Tang Foundation 

matched by RAND to create a permanently endowed fund for 

excellence. The aim of the Tang Institute is to improve policy 

discussions that shape relations between the United States and 

China; it will support research and intellectual exchange on a 

range of critical issues such as currency, labor and trade, direct 

foreign investment, and the perceptions that each national 

holds about the other. Cyrus Tang was born in China and came 

to America in 1950, where he founded and currently leads 

an international manufacturing and distribution company. 

Tang has served on the board of advisors of the RAND Center 

for Asia Pacific Policy for nearly a decade and has contributed 

significant philanthropic support to RAND, culminating in the 

most recent 2007 gift. 

Exploring the Benefits of Alternative Medicine. 

A $2 million gift from the Samueli Institute will help RAND 

deepen the policy community’s understanding of alternative 

medicine’s benefits. The gift—together with a match by 

RAND—will create a permanently endowed fund for excellence 

to support independent policy research regarding integrative 

medicine and complementary and alternative medicine (CAM). 

The Samueli Institute Fund for Policy Studies in Integrative 

Medicine will support RAND’s capacity to deliver empirical 

research that can shape the health care system by identifying 

and evaluating CAM and integrative medicine programs and 

policies and their contribution to health and healing. 

Investing in Ideas. In 2007, Anne and James F. Rothenberg 

donated more than $2 million to the President’s Fund and in 

support of scholarships to the Pardee RAND Graduate School. 

Mr. Rothenberg, Chairman and Principal Executive Officer 

of Capital Research and Management Company, is a RAND 

trustee, former member of the PRGS Board of Governors, and 

a leading figure in the investment world. The Rothenbergs’ 

generous support will foster innovative research inquiries 

into pressing policy challenges and help graduate fellows in 

their research pursuits. Mr. Rothenberg asserts, “I support 

RAND because I believe the institution is situated to address 

the long-term challenges we face as a nation and in the global 

community.” 

1974 

Improving Computer Security > RAND’s expertise in 

defense-related computer security issues was extended to 

the private sector during the 1970s. Willis Ware chaired 

a government committee that studied the problems arising 

from the application of computer technology to record 

keeping about people. This work guided the DoD computer 

configurations and eventually became the foundation of the 

Federal Privacy Act of 1974.


Policy Circle 

RAND gratefully acknowledges gifts made by the following donors during calendar year 2007. 

RAND CORPORATE POLICY CIRCLE 

Leadership Circle 

$100,000+ 

Alcoa Inc. 

Allstate Insurance Company 

American International Group, Inc. 

BlueCross BlueShield of 

Massachusetts 

The Dow Chemical Company 

ExxonMobil Corporation 

ExxonMobil Foundation 

General Motors Corporation 

GMAC Insurance 

Johnson & Johnson Family 

of Companies 

Liberty Mutual Insurance 

Companies 

Munich Re America 

National Association of Realtors 

Pfizer, Inc 

Risk Management Solutions, Inc. 

Samueli Institute 

State Farm Insurance 

Swiss Re America Holding 

Corporation 

Chung Ying Tang Foundation 

United Health Foundation 

Westfield Corporation, Inc. 

Zenith Insurance Company 

Breakthrough Circle 

$50,000–$99,999 

AARP 

ACE USA 

Association of Trial Lawyers of 

America 

BP 

Building Owners and Managers 

Association International 

The Chubb Corporation 

The Doctors Company 

Edison Electric Institute 

Electric Power Research Institute 

Farmers Insurance Group/Zurich U.S. 

The Goldman Sachs Foundation 

Hartford Financial Services Group 

International Council of Shopping 

Centers, Inc. 

LRN 

MassMutual Financial Group 

Merck & Co., Inc. 

The NAREIT Foundation 

Nationwide Mutual Insurance 

Company 

Port of Los Angeles 

The Real Estate Roundtable 

The SahanDaywi Foundation 

TAP Pharmaceutical Products Inc. 

U.S. Chamber of Commerce 

Union Pacific Corporation 

Wal-Mart Stores, Inc. 

1975 

Racial Difference in Income > In a series of studies starting in the 

mid-1970s, James P. Smith and Finis Welch examined the main drivers 

of the changing economic status of black Americans from the end of the 

American Civil War to contemporary America. They report a slowing 

and unevenly narrowing of the racial gap in incomes. The principal factor 

that produced the periods of advancement were linked to periods where 

the schooling gaps between black and white Americans closed and the 

relative quality of black schools improved. These remain among the 

most cited references on the economics of race in America.

Frontier Circle 

$25,000–$49,999 

Alcan, Inc. 

Chevron Corporation 

The Family Connection 

Partnership, Inc. 

Fortum Corporation 

Freehills 

GE Fund 

General Motors Corporation 

Goldman Sachs 

Horizon Initiative 

John B. Collins Associates, Inc. 

Kansas Action for Children 

KidsOhio.org 

Lazare Kaplan International, Inc. 

Liz Claiborne, Inc. 

Locke Lord Bissell & Liddell LLP 

New York State Office of Children 

and Family Services 

OTEKO (United Transport and 

Forwarding Company) 

Pacific Business Group on Health 

Rockefeller Brothers Fund 

Siguler Guff & Company 

State of Missouri Department of 

Social Services 

Vital Projects Fund Inc. 

Warburg Pincus LLC 

Discovery Circle 

$10,000–$24,999 

American Chemistry Council 

Bank of Japan 

Burlington Northern Santa Fe 


California Hospital 

Association 

Californians Allied for Patient 

Protection 

CAP-MPT 

1976 

Family Life in Developing Countries > Beginning with 

the Malaysian Family Life Survey, RAND designed, 

fielded, and analyzed a series of household surveys 

in developing countries: in Malaysia, Indonesia, 

Guatemala, and Bangladesh. Unique for developing 

countries, the rich databases—which are placed in 

the public domain—track demographic, social, health, 

and economic information at the individual, household, 

and community levels. 

Capital Research and 

Management Company 

CERA 

Civil Justice Reform Group 

Cooley Godward LLP 

DuPont 

Hilb Rogal and Hobbs 

Leonie Industries LLC 

Los Angeles Times 

Mortgage Bankers Association 

National Association of Industrial 

and Office Properties 

Piper Jaffray 

Property Casualty Insurers 

Association of America 

Sonnenschein Nath & Rosenthal 

LLP 

Irvin Stern Foundation 

Verizon 

RAND POLICY CIRCLE 

Visionary 

$100,000+ 

Anonymous 

William F. Benter 

Peter S. Bing 

Mong Joon Chung 

Jacques E. Dubois 

Spencer H. Kim 

Joseph and Mirit Konowiecki 

N. Jay Liang 

The Martin Foundation 

Younes Nazarian 

Anthony N. Pritzker 

Donald B. and Susan F. Rice 

Tom and Laura Rockwell 

Maxine and Eugene S. Rosenfeld 

Anne and James F. Rothenberg 

Leonard Sands 

Leonard D. Schaeffer 


Hasan Shirazi 

Douglas J. Smith 

Patrick Soon-Shiong 

James A. Thomas 

Daniel Yun 

Explorer 

$30,000–$99,999 

Thomas Epley and Linnae Anderson 

Paul and Evelyn Baran 

Donna C. Boehme 

The Harold and Colene Brown Family 

Foundation 

John M. Cazier 

Robert A. Clifford 

Janet Crown 

Rob Deutschman 

Mary Kay and James D. Farley 

Robert Ferguson 

Arnie Fishman 

Charles M. and Mary D. Grant 

Foundation 

Kip and Mary Ann Hagopian 

Karen Elliott House 

Ming Hsieh 

Jen-Hsun and Lori Huang 

Susan Hullin 

Karen L. Katen 

1978 

The World’s Largest Permeable Dam > 

A five-year joint effort between RAND 

and the Dutch government led to the 

creation of the world’s largest permeable 

dam—a storm-surge barrier with large 

movable gates—which balanced the 

environmental, economic, and safety 

concerns of the Netherlands.


Policy Circle 

Gregory Keever 

Nelly and Jim Kilroy 

Bud Knapp 

Ann and Tom Korologos 

Arthur and Marylin Levitt 

James B. Lovelace 

Santiago Morales 

Hassan Nemazee 

Patricia Salas Pineda 

Lawrence J. Ramer 

Michael J. Shockro 

Lucille Ellis Simon Foundation 

Kenin M. Spivak 

Joseph P. and Carol Z. Sullivan 

Suzanne S. and Michael E. 

Tennenbaum 

Lawrence Zicklin 

Trailblazer 

$10,000–$29,999 

Anonymous 

Richard A. Abdoo 

Gale and Jane Bensussen 

Linda and Brent D. Bradley 

Lynn and Douglas A. Brengel 

Brad Brian 

Joseph C. Canizaro 

Frank C. Carlucci 

George N. Chammas 

Kelly Day 

Frederick and Linda Gluck 

The Golden Family Foundation 

James A. Greer 

The Hauser Foundation 

Ken Senjong Hsui 

Benny T. Hu 

Fred C. Ikle 

Ray R. Irani 

The Robert and Ardis James 

Foundation 

Suzanne Nora Johnson 

Paul G. Kaminski 

Michael B. Kim 

Arnold Kopelson 

Sherry Lansing 

Woong-Yeul Lee 

Paul S. Miller 

Jane and Ronald L. Olson 

1979 

Determining Characteristics of Career Criminals > 

Multiple RAND studies changed the way people think 

about “career criminals.” Researchers confirmed 

that a small proportion of offenders commit a large 

percentage of crime, making career criminals 

a national priority, fostering new legislation and 

focusing resources. 

Paul O’Neill, Jr. 

Paul M. Pohl 

Paul D. Rheingold 

James E. and Sharon C. Rohr 

John J. Rydzewski 

David Singer 

Enzo Viscusi 

The Gail and Lois Warden Fund 

Jason Weiss 

David C. Wright 

Groundbreaker 

$5,000–$9,999 

Anonymous 

Odeh F. Aburdene 

Neal Baer 

Louis L. Borick 

Margery A. Colloff 

Robert and Patricia H. Curvin 

Palmer G. Jackson 

Lindsey C. Kozberg 

John H. O. La Gatta 

Marie-Anne and Malcolm A. Palmatier 

Michael K. Powell 

Carl Pridonoff 

Jack Riley and Karen Yuhas 

Stanley M. Rumbough 

Gerald J. Sullivan 

Donald Tang 

James Q. Wilson 

Charles J. Zwick 

Innovator 

$1,000–$4,999 

Anonymous 

Mark and Kathe Albrecht 

Phyllis and David Armstrong 

Charles L. Bennett 

Maurine Bernstein 

Sheila L. Birnbaum

Robert H. Brandow 

Thomas R. Brown 

J. Kevin and Kathleen Buchi 

Waldo and Jean Burnside 

Andrew and Jacqueline Caster 

Louis M. and Jane Castruccio 

Mrs. Fred W. Catterall III 

Alan and Laura Charles 

Gordon B. Crary 

Richard J. and Mildred M. Cross 

Rich and Carole DiClaudio 

Jim and Mary Jane Digby 

Alison and Geoffrey Edelstein 

Helen and Bill Elliott 

Eugene J. Ellis 

Glenn and Jack Ellis 

Sigo Falk 

Kenneth R. Feinberg 

Paul G. Flynn 

James C. Gaither 

Lucille M. Goldsen 

Janet Green 

Gene and Gwen Gritton 

John Handy 

Doris and Ralph E. Hansmann 

George H. Heilborn 

Philip and Katie Holthouse 

Rory Hume 

Richard Hundley 

Vicki Huth 

Elizabeth and Jeffrey Isaacson 

Stephen A. Kanter, M.D. 

Tamara Turoff Keough 

Ann Zwicker Kerr 

Fred Kipperman and Hien Nguyen 

Susan Fiske Koehler 

David M. Konheim 

Kenneth Krug and Andrea Scharf 

Philip Lader 

1982 Strategic 

Ballistic Missile Basing Alternatives > 

Project AIR FORCE research on the 

comparative utility of active defenses and 

various basing options for the proposed 

MX ballistic missile provided major 

input to the President’s Commission 

on Strategic Force Modernization (the 

Scowcroft Commission). 

John Lu 

Raymond E. Mabus, Jr. 

Sue Mallett 

Joseph D. and Jean W. Mandel 

McCrory & McDowell 

G. G. Michelson 

Joel R. Mogy 

Lloyd and Mary Morrisett 

Tom Murrin 

Ms. Noël M. Newell 

John Edward Porter 

Mr. and Mrs. C. J. Queenan 

William J. Recker 

Vicki Reynolds Pepper and 

Murray Pepper 

Debra Granfield and 

Michael D. Rich 

Daniel Rose 

Louis N. Rowell 

Henry and Beverly Rowen 

Charles A. Schliebs 

Margaret Schumacher 

Dorothy R. Sherwood 

The Sikand Foundation, Inc. 

The H. Russell Smith Foundation 

Lucile W. Smith 

Elizabeth S. Stacey 

Curtis S. Tamkin, Jr. 

Roger S. Taylor 

Robert and Marjorie Templeton 

Darlene and James A. Thomson 

Michael Traynor 

John K. and Andrea Van de Kamp 

Helen and Martin Wachs 

Tracy and Hui Wang 

Willis H. Ware 

Faye Wattleton 

Barbara and Milton G. Weiner 

Theresa and Charles Wolf, Jr. 

Linda Tsao Yang 


RAND would like to acknowledge 

the following companies for providing 

matching gifts 

California Casualty Management Co. 

The Capital Group Companies 

Charitable Foundation 

Greater Kansas City Community 

Foundation & Affiliated Trusts 

Hullin Metz & Co. LLC 

Thomas Lord Charitable Trust 

Munger, Tolles & Olson LLP 

Philip Morris Companies, Inc./Altria 

Siguler Guff & Company 

State Farm Companies Foundation 

Voices for Children, Inc. 

Gifts were given in memory 

of the following 

Jan Butler 

Irv Cohen 

Jim Digby 

Rosalie Fonoroff 

Robert Kalaba 

John E. Koehler 

Charles Lachlan McKinnon 

Nancy Nimitz 

Robert Perry 

Hy Shulman 

Eleanor Wainstein 

Susan Way-Smith 

Albert P. Williams 

Gifts were given in honor 

of the following 

Karen Jenkins 

Ray and Lynne Mabus 

Louise Martin 

Charles Wolf 

1984 

Defense and Deterrence > 

Shortly after President Reagan announced 

the Strategic Defense Initiative, 

RAND was asked to provide the first 

comprehensive assessment of how a 

technically successful defense against 

ballistic missiles would affect deterrence 

and strategic ability, the security interests 

of our allies, and arms control.

34 

2 0 0 7 R A N D A N N U A L R E P O R T 


Members of advisory boards provide important philanthropic contributions for cutting-edge research and to support 

and nurture top research talent. The volunteer leadership of advisory board members helps RAND research centers 

and units frame the research agenda and disseminate findings to influential decisionmakers. Boards include leaders 

in the public and private sectors who have demonstrated personal distinction, practical experience, leadership, 

and a commitment to transcending partisan conflicts and political ideologies. 

LRN-RAND Center for Corporate 

Ethics, Law, and Governance 

Advisory Board 

Stuart Reese (Chair) 

Chairman, President, and Chief Executive 

Officer, MassMutual Financial Group 

Larry Zicklin (Vice Chair) 

Clinical Professor of Business Ethics, New York 

University Leonard N. Stern School of Business 

Donna Boehme 

Principal, Compliance Strategists LLC 

Kim M. Brunner 

Executive Vice President and General Counsel, 


Ann Cato 

Vice President of Corporate People 

Administration, Wal-Mart Stores, Inc. 

Robert Deutschman 

President, Cappello Partners, LLC 

John Finneran 

General Counsel and Executive Vice President 

of Corporate Reputation and Governance, 

Capital One Financial Corporation 

Steve Kerr 

Managing Director and Chief Learning Officer, 

Goldman Sachs 

Eric Landau 

Partner, McDermott Will & Emery 

Arthur Levitt 

Former Chairman, U.S. Securities and 

Exchange Commission 

John Lynch 

Group Compliance & Ethics, BP plc 

John Reed 

Retired Chair, New York Stock Exchange; 

Retired Chair and Co-CEO, Citigroup, Inc. 

1985 

Costs of Asbestos Litigation > RAND published 

findings from the first-ever study to examine the 

costs and compensation paid for asbestos personal 

injury claims. The study showed that claimants 

received only 37 cents of every dollar spent on 

asbestos litigation, with the rest going to defense 

and plaintiff attorneys’ fees and other expenses. 

Mary Schapiro 

Chairman and Chief Executive Officer, 

NASD Regulation Inc. 

Dov L. Seidman 

Chairman and Chief Executive Officer, LRN 

Margaret Sperry 

Senior Vice President and Chief Compliance 

Officer, MassMutual Financial Group 

Kenin Spivak 


Officer, Telemac Corporation 

Richard Thornburgh 

Former Attorney General and Governor, 

State of Pennsylvania; General 

Counsel, Kirkpatrick & Lockhart LLP 

L. Stephan Vincze 

Vice President, Ethics and Compliance, 

TAP Pharmaceutical Products Inc. 

Allen Waxman 

Senior Vice President and General Counsel, 

Pfizer Inc


Board of Governors 

Donald B. Rice (Chair) 

President, Chairman, and Chief Executive 

Officer, Agensys, Inc.; Former Secretary of the 

U.S. Air Force; Trustee, RAND Corporation 

Gurminder S. Bedi 

Vice President (Retired), Ford North 

America Truck 

Don R. Conlan 

Retired President, The Capital Group Companies 

Thomas E. Epley 

Operating Partner, Francisco Partners 

Francis Fukuyama 

Bernard L. Schwartz Professor of International 

Political Economy, Paul H. Nitze School of 

Advanced International Studies, Johns Hopkins 

University 

John Gage 

Chief Researcher, Sun Microsystems 

Russell Goldsmith 


City National Bank 

Robert E. Grady 

Managing Director, The Carlyle Group; Member, 

Board of Directors, AuthenTec, Inc. 

Pedro José Greer, Jr. 

Assistant Dean of Academic Affairs, Florida 

International University, College of Medicine 

B. Kipling Hagopian 

Managing Director, Apple Oaks Partners, LLC 

Lydia H. Kennard 

Former Executive Director, Los Angeles 

World Airports; Trustee, RAND Corporation 

James B. Lovelace, Sr. 

Vice President and Director, Capital Research 

and Management 

Santiago Morales 

President, Maxiforce Inc. 

Marc Nathanson 

Chairman, Mapleton Investments 

Frederick S. Pardee 

Investor 

Eugene S. Rosenfeld 

President, ForestLane Group 

1987 

Chlorofluorocarbons > RAND performed the economic 

analysis that, when coupled with a National Oceanic and 

Atmospheric Administration (NOAA) chemical model of the 

atmosphere, ultimately provided the policy-analytic basis 

for the global ban on the production of substances that 

deplete stratospheric ozone—mainly chlorofluorocarbons 

(CFCs) and Halons. 

Robert Spinrad 

Retired Vice President, Technology Strategy, 

Xerox Corporation 


President and Chief Executive Officer, 

RAND Corporation 

Marta Tienda 

Maurice P. During ’22 Professor in Demographic 

Studies and Professor of Sociology and Public 

Affairs, Princeton University; Trustee, RAND 


Paul A. Volcker 

Former Chairman, Federal Reserve System 

David I. J. Wang 

Senior Operating Partner, Atlas Holdings, LLC 

Faye Wattleton 

President, Center for the Advancement 

of Women 


Ronald Reagan Professor of Public Policy, 

Pepperdine University 

Promising Practices Network on 

Children, Families and Communities 

Board of Advisors 

James A. Thomson (Chair) 



Douglas A. Brengel 

Chairman and Managing Director, 

Citigroup Global Markets’ Global 

Technology Group 

Gary Brunk 


Kansas Action for Children 

Shannon Cotsoradis 

Executive Vice President and Chief Operating 

Officer, Kansas Action for Children 

Bill Dent 

Manager, Missouri Community Partnerships; 

Staff Director, The Family and Community Trust 

William H. Isler 

Executive Director, Fred Rogers Center for 

Early Learning and Children’s Media 

Nancy Martinez 

Director, Strategic Planning and Policy 

Development, New York State Office of Children 

and Family Services (OCFS) 


Stephanie McGencey-Washington 

Executive Director, Grantmakers for Children, 

Youth and Families 

Susan Mitchell-Herzfeld 

Director, Bureau of Evaluation and Research, 

New York State Office of Children and Family 

Services (OCFS) 

Mark Real 


KidsOhio.org 

Ken Seeley 

President and Chief Executive Officer, The 

Colorado Foundation for Families and Children 

Gaye Morris Smith 

Executive Director, Family Connection 

Partnership 

RAND Center for Asia Pacific Policy 


Dominic Chan 

Chief Executive Officer, Univessence Digital 

Studios 

Mong-Joon Chung 

Member of the National Assembly, 

Republic of Korea 

Roy Doumani 

Professor of Molecular and Medical 

Pharmacology, University of California, 

Los Angeles 

Robert Ferguson 

Deputy Chairman, The Sydney Institute; 

Chairman, IMF Australia Limited 

Lalita D. Gupte 

Chair, ICICI Venture Funds Management 

Co. Ltd. 

Ming Hsieh 


Officer, Cogent, Inc. 

Ken Senjong Hsui 


Prince Motors Group 

Benny T. Hu 

Chairman, CDIB BioScience Venture 

Management, Inc. 

Wyatt R. Hume 

Provost and Executive Vice President, 

University of California 

Greg Keever 

Partner, Akin Gump Strauss Hauer & Feld LLP 

1988 

Preventing Teenage Smoking and Drug Use > The most 

widely used science-based drug prevention program 

in the country, reaching more than 1.5 million middle 

school children a year, was developed at RAND. Project 

ALERT (Adolescent Experiences in Resistance Training) 

is a nationally recognized substance abuse program that 

gives students insight, understanding, and actual skills for 

resisting substance abuse.



Spencer H. Kim 

Chairman, CBOL Corporation 

Peter Kwok 

Chairman, CITIC Resources Holdings Limited 

Woong-Yeul Lee 

Chairman, Kolon Group 

N. Jay Liang 

President and Chief Executive Officer, Etech 

Securities, Inc. 

Robert Oehler 

President and Chief Executive Officer, Pacific 

Alliance Bank 

Anthony N. Pritzker 


The Pritzker Company 

Nicholas Rockefeller 

International Attorney and Advisor to the 

RockVest Group of Investors & Rockefeller Pacific 

Ventures 

Eugene S. Rosenfeld 

President, ForestLane Group 

Leonard Sands 

Founding Partner and Chairman, Alchemy 

Worldwide 

Michael J. Shockro 

Partner, Latham & Watkins LLP 

George Siguler 

Managing Director, Siguler Guff & Company 

Patrick Soon-Shiong 

Founder, Chairman, and Chief Executive Officer, 

Abraxis BioScience, Inc. 

Donald Tang 

Vice Chairman, Bear, Stearns & Company, 

Inc.; Chairman and President, Bear, Stearns 

International; Trustee, RAND Corporation 

Michael Tang 

Chief Executive Officer, National Material L.P. 

Michael Tennenbaum 

Senior Managing Partner, Tennenbaum 

Capital Partners, LLC 

Linda Tsao Yang 

Chairman, Asian Corporate Governance 

Association 

Marsha Vande Berg 

Chief Executive Officer, Pacific Pension Institute 

Daniel Yun 

Managing Partner & Founder, Belstar Group 

Ex Officio 




Susan Everingham 

Director, International Programs, 


William H. Overholt 

Director, RAND Center for Asia Pacific Policy 

RAND Center for Global Risk and 

Security Advisory Board 

Harold Brown (Chair) 

Counselor, Center for Strategic & International 

Studies; Former U.S. Secretary of Defense; 

Trustee Emeritus, RAND Corporation 

Elliott Broidy 

Chairman, Markstone Capital Group LLC 

Carl Covitz 


Landmark Capital 

Jacques Dubois 

Former Chairman, Swiss Re America Holding 


1989 

Monitoring the Results of Medical Care > 

The Medical Outcomes Study (MOS) was the 

first large-scale attempt to measure medical 

outcomes in terms of how patients feel, function, 

and perform in their natural environment. In 

conducting the study, RAND developed a number 

of brief screening instruments, including the 

RAND 36-Item Health Survey. 

Henry A. Kissinger 

Former Secretary of State 

Cleon “Bud” T. Knapp 

Chief Executive Officer and President, 

Talwood Corporation 

RAND Center for Middle East 

Public Policy Advisory Board 

Zbigniew Brzezinski (Chair) 


Studies 

Frank C. Carlucci (Vice Chair) 

Chairman Emeritus, The Carlyle Group; 

Former U.S. Secretary of Defense; Trustee, 


Richard A. Abdoo 

President, R. A. Abdoo & Co., LLC 

Odeh F. Aburdene 

President, OAI Advisors 

William F. Benter 

Chairman and International Chief Executive 

Officer, Acusis 

L. Paul Bremer 

Former Presidential Envoy to Iraq 

Alexander L. Cappello 


Cappello Group Inc. 

George N. Chammas 

Co-President and Chief Financial Officer, 

NavLink Inc. 

Kelly Day 

Chairman, The Kelly Day Foundation 

Peter B. DeNeufville 

Chairman and Managing Director, Voltaix, Inc. 

Arnie Fishman 

Chairman and Founder, Lieberman 

Research Worldwide 

Guilford Glazer 

Chairman, Guilford Glazer Associated 

Companies 

Tone N. Grant 

Private Investor 

Ray R. Irani 


Occidental Petroleum Corporation

Ann Kerr 

Fulbright Coordinator, UCLA International 

Institute 

Arnold Kopelson 

Chairperson and Producer, Kopelson 

Entertainment 

Ray Mabus 

Former U.S. Ambassador to Saudi Arabia 

Paul S. Miller 

Special Counsel, Kaye Scholer 

Younes Nazarian 

President, The Nazarian Companies 

Hassan Nemazee 


Nemazee Capital Corporation 

Edward R. Pope 


DexM Corporation 

Lawrence J. Ramer 

Chairman, Ramer Equities, Inc. 

David K. Richards 


Hasan Shirazi 

Director, Citi Private Bank 

Donald Ellis Simon 

President, The Lucille Ellis Simon Foundation 

Enzo Viscusi 

Group Senior Vice President, ENI Americas 

Ex Officio 




Susan Everingham 

Director, International Programs, 


David L. Aaron 

Director, RAND Center for Middle East 

Public Policy 

1993 

Sexual Sex 

Orientation and U.S. Military Policy > 

At the request of the Secretary of Defense, 

RAND conducted research to help formulate 

an executive order ending the ban on military 

service of homosexuals. The study found 

that a policy that ends discrimination based 

on sexual orientation could be implemented 

in a practical and realistic manner. 

RAND Center for Terrorism Risk 

Management Policy Advisory Board 

Jeffrey DeBoer (Cochair) 


Real Estate Roundtable 

Pierre L. Ozendo (Cochair) 

Member of the Executive Board, Head of 

Americas Property & Casualty, Swiss Re America 

Holding Corporation 

Jack Armstrong 

Assistant Vice President and Senior Regulatory 

Counsel, Liberty Mutual Insurance Company 

Brian Boyden 

Executive Vice President, State Farm Insurance 

Andrew Coburn 

Vice President of Catastrophe Research 

and Director of Terrorism Research, Risk 

Management Solutions, Inc. 

Kenneth R. Feinberg 

Managing Partner, The Feinberg Group, LLP 

Ken Jenkins 

Senior Vice President and Chief Underwriting 

Officer, Munich Re America 

Peter Lowy 

Chief Executive Officer, Westfield, LLC; 

Trustee, RAND Corporation 


Kathleen Nelson 

Immediate Past Chair, International Council 

of Shopping Centers (ICSC) 

Art Raschbaum 

President, GMAC RE 

Kevin Scroggin 

General Director, Corporate Risk Management 

and Insurance, General Motors 

Hemant H. Shah 



Cosette Simon 

Senior Vice President, Swiss Re Life & Health 

America Inc. 

Richard Thomas 

Senior Vice President and Chief Underwriting 

Officer, American International Group 

Steven Wechsler 


NAREIT 

1994 

Controlling Cocaine > The RAND 

study on controlling cocaine 

provided a powerful argument for 

increasing U.S. drug treatment 

programs. It is often cited in the 

debate on the effectiveness of 

the “drug war”.



RAND Europe Board of Trustees 

James A. Thomson (Chairman) 



United States 

Sir John Boyd 

Retired Master, Churchill College, 

University of Cambridge 

United Kingdom 

Professor Sir Lawrence Freedman 

Professor of War Studies and Vice Principal 

(Research), King’s College London 


Jonathan Grant 

President, RAND Europe 


Philip Lader 

Chairman, The WPP Group; Former U.S. 

Ambassador to the Court of St. James; 



Lord Renwick of Clifton 

Vice Chairman, Investment 

Banking, JP Morgan Europe 


RAND Gulf States Policy Institute 


Kim M. Boyle 

Partner, Phelps Dunbar LLP 

Joseph C. Canizaro 

Chairman of the Board, First Bank and Trust 

and First Trust Corporation 

Oliver H. Delchamps, Jr. 

Retired Chairman Emeritus, Delchamps, Inc. 

James A. Joseph 

Chairman of the Board, Louisiana Disaster 

Recovery Foundation 

John J. Kallenborn 

President New Orleans Region, 

JP Morgan Chase Bank, NA 

Diana Lewis 

Civic Leader, New Orleans, Louisiana 

Ricky Mathews 

President and Publisher, The Sun Herald 

Alden J. McDonald, Jr. 


Liberty Bank and Trust Company 

R. King Milling 

Vice Chairman, Whitney National Bank 

John N. Palmer 

Chairman, GulfSouth Capital, Inc. 

1995 

The Number of Troops Needed to Stabilize a Country > 

The most well-known study on the arithmetic of stability 

operations is the RAND paper Force Requirements in 

Stability Operations. RAND calculated the troop levels 

required to stabilize both entire countries and individual 

cities, and explored the implications of those numbers for 

deployment, rotation, readiness, and personnel retention. 

Donna Saurage 

Civic Leader, Baton Rouge, Louisiana 

Vera B. Triplett 

Assistant Professor, Clinical Director, 

Our Lady of Holy Cross College 

Ex Officio 




George Penick 

Director, RAND Gulf States Policy Institute 

RAND Health Board of Advisors 

Joseph P. Sullivan (Chair) 


Neal A. Baer, MD 

Executive Producer, Law & Order: 

Special Victims Unit 

Robert H. Brook, MD, ScD, FACP 

Vice President, RAND Corporation; 

Director, RAND Health 

Ronald I. Dozoretz, MD 

Chairman, ValueOptions 

Mary Kay Farley 

Trustee, Hospital for Special Surgery, New York; 

Northern Michigan Hospital Foundation 

Robert G. Funari 


Crescent Healthcare 

Frederick W. Gluck 

Former Managing Director, McKinsey & 

Company, Inc. 

Pedro José Greer, Jr., MD 

Assistant Dean of Academic Affairs, 

Florida International University, College 

of Medicine 

Karen Hein, MD 

Immediate Past President, William T. Grant 

Foundation

Susan Hullin 

Managing Partner, Hullin Metz & Co. LLC 

Suzanne Nora Johnson 

Senior Director/Former Vice Chairman, 

Goldman Sachs Group, Inc. 

Karen L. Katen 

Chair, Pfizer Foundation 

Cleon “Bud” T. Knapp 

Chief Executive Officer and President, 

Talwood Corporation 

Paul Koegel, PhD 

Associate Director, RAND Health 

Joseph S. Konowiecki 

Managing Partners, Moriah Partners, LLC 

Sherry Lansing 

Founder–Chief Executive Officer, The Sherry 

Lansing Foundation 

David M. Lawrence, MD 

Retired Chairman and Chief Executive 

Officer, Kaiser Foundation Health Plan, Inc. 

and Kaiser Foundation Hospitals 

Steven Lazarus 

Managing Director Emeritus, ARCH Venture 

Partners 

Frank Litvack, MD, FACC 

Interventional Cardiologist, Cedars-Sinai 

Heart Center 

Sir Michael Marmot, MD, PhD 

Director, International Institute for Society 

and Health, University College London 

Charles N. Martin, Jr. 


Vanguard Health Systems 

Elizabeth A. McGlynn, PhD 

Associate Director, RAND Health 

Paul H. O’Neill 

Former U.S. Secretary of the Treasury; 


Ian C. Read 

President, WW Pharmaceutical 

Operations, Pfizer Inc 

David K. Richards 


John J. Rydzewski 

Managing Director, Christofferson, 

Robb & Company, LLC 

1996 Immigration 

Diverting Children from a Life of Crime > This 

study measures for the first time the costeffectiveness 

of intervention strategies for youth 

at risk of pursuing criminal careers. Three types 

of interventions—cash and other graduation 

incentives, parent training, and supervision of 

delinquent teens—appear more cost-effective in 

reducing crime than California’s “three-strikes” law. 

Leonard D. Schaeffer 

Senior Advisor, TPG Capital, LP 

Sir Maurice Shock 

Retired Chairman, The Nuffield Trust 

David B. Singer 

Principal, Maverick Capital, Ltd. 

Patrick Soon-Shiong, MD 

Founder, Chairman, and Chief Executive 

Officer, Abraxis BioScience, Inc. 

James A. Thomson, PhD 



Gail L. Warden 

President Emeritus, Henry Ford Health System 

RAND Infrastructure, Safety, and 

Environment Advisory Board 

Gerald Greenwald (Chair) 

Managing Partner, Greenbriar Equity Group LLC 

Harold Brown 


Studies; Former U.S. Secretary of Defense; 

Trustee Emeritus, RAND Corporation 

Lovida H. Coleman, Jr. 

Partner, Sutherland, Asbill & Brennan LLP; 


Margery Colloff 

Counsel, White and Case LLP 

Janet Crown 

Managing Partner, JMK Productions 

William R. Colvin 


Core Realty Holdings 

Robert Curvin 

Retired President, Greentree Foundation; 

Visiting Scholar, Rutgers University 

Scott M. Gordon 

Superior Court Commissioner, 

Los Angeles County Superior Court 

Janet Green 

Investment Advisor 


Frank Holder 

President, Ferrell Schultz International 


Group Vice President, Corporate 

Communications and General Counsel, 

Toyota Motor North America, Inc. 

Jane Randel 

Vice President, Liz Claiborne, Inc. 

Rodney E. Slater 

Partner, Patton Boggs, LLP 

James A. Thomas 


Thomas Properties Group 

John K. Van de Kamp 

Former Attorney General, State of California; 

Of Counsel, Dewey Ballantine LLP 

Jason Weiss 

Partner, Terrapin Partners, LLC 

RAND Institute for Civil Justice 

Board of Overseers 

Kenneth R. Feinberg (Chair) 

Managing Partner, The Feinberg Group, LLP 

Richard E. Anderson 


The Doctors Company 

Sheila L. Birnbaum 

Partner, Skadden, Arps, Slate, Meagher & Flom 

Brad D. Brian 

Partner, Munger, Tolles & Olson LLP 

James L. Brown 

Director, Center for Consumer Affairs, 

University of Wisconsin-Milwaukee 

1997 

> James P. Smith led the National 

Academy of Sciences panel, whose report, 

The New Americans, remains the most cited 

source in the immigration debate. That report 

showed the impact of immigration over the next 

50 years on the demographic, economic, and 

fiscal well-being of the United States.



Kim M. Brunner 



Robert A. Clifford 

Partner, Clifford Law Offices, P.C. 

John J. Degnan 

Vice Chairman and Chief Administrative 

Officer, The Chubb Corporation 

Markus U. Diethelm 

Member of the Executive Board, Group Chief 

Legal Officer, Swiss Reinsurance Company 

James A. Greer II 

Patricia R. Hatler 

Executive Vice President, General Counsel 

and Secretary, Nationwide Mutual Insurance 

Company 

Terry J. Hatter Jr. 

Chief U.S. District Judge, United States 

Courthouse 

Patricia A. Henry 

Executive Vice President, Government Affairs 

and Legal, ACE INA 

Deborah R. Hensler 

Judge John W. Ford Professor of Dispute 

Resolution, Stanford Law School 

Patrick E. Higginbotham 

Circuit Judge, U.S. Court of Appeals, 

Fifth Circuit 

Jason L. Katz 


Farmers Insurance Group of Companies 

Bruce N. Kuhlik 


Merck & Co., Inc. 

Christian Lahnstein 

Head of the Department, Risk, Liability & 

Insurance, Munich Re 

Joseph D. Mandel 

Vice Chancellor, Legal Affairs (retired), 

University of California, Los Angeles 

Christopher C. Mansfield 


Liberty Mutual Insurance Company 

Charles W. Matthews, Jr. 

Vice President and General Counsel, 

ExxonMobil Corporation 

Michael J. McCabe 

Vice President and General Counsel, 

The Allstate Corporation 

M. Margaret McKeown 

Circuit Judge, U.S. Court of Appeals, 

Ninth Circuit 

Michael G. Mills 

Partner, Freehills 

Robert S. Peck 

President, Center for Constitutional 

Litigation, AAJ 

Kathleen Flynn Peterson 

Partner, Robins, Kaplan, Miller & Ciresi LLP 

Sandra L. Phillips 

Vice President, Assistant General Counsel and 

Section Leader for Products Litigation, Pfizer, Inc 

Paul M. Pohl 

Partner, Jones Day 

Thomas E. Rankin 

Retired President, California Labor Federation, 

AFL-CIO 

Paul D. Rheingold 

Partner, Rheingold, Valet, Rheingold, 

Shkolnik, & McCartney LLP 

Lee H. Rosenthal 

United States District Judge, Southern District 

of Texas, Houston Division 

Charles R. Schader 

Senior Vice President-Worldwide, 

American International Group, Inc. 

Dan I. Schlessinger 

Partner, Locke Lord Bissell & Liddell LLP 

Dov L. Seidman 

Chairman and Chief Executive Officer, LRN 

Hemant H. Shah 



Georgene M. Vairo 

Professor of Law and William M. Rains Fellow, 

Loyola Law School 

Neal S. Wolin 

President and Chief Operating Officer, 

Property and Casualty Operations, 

The Hartford Financial Services Group, Inc. 

1998 

NATO Expansion > RAND experts on Europe and the Soviet Union 

recommended expanding NATO to include, initially, Poland, the 

Czech Republic, Slovakia, and Hungary. Their strategy involved a 

gradual expansion, in addition to confidence-building measures and 

assurances for Russia and other Eastern European countries who 

were not initial members. RAND’s ideas and analyses were taken 

up within the State Department and became the foundation for the 

decision to move ahead with NATO expansion. 

RAND-Qatar Policy Institute Board 

of Overseers 

Her Highness Sheikha Mozah Bint 

Nasser Al Missned (Cochair) 

Michael Rich (Cochair) 

Executive Vice President, RAND Corporation 

David L. Aaron 

Director, RAND Center for Middle East 

Public Policy 

Hamad Abdulaziz Al-Kawari 

Member of the Consultative Authority for the 

High Council of GCC; Member of the National 

Council for Culture, Arts, and Heritage 

Sheikh Hamad Bin Faisal Bin 

Thani Al-Thani 

Deputy Chairman, Qatar National Bank 


Former Publisher, The Wall Street Journal; 

Former Senior Vice President, Dow Jones and 

Company, Inc.; Trustee, RAND Corporation 

Independent Member 

Farouk El-Baz 

Director, Center for Remote Sensing, 

Boston University 

Ex Officio 

Rashid Al Naimi 

Vice President for Administration, 

Qatar Foundation 

Richard E. Darilek 

Director, RAND-Qatar Policy Institute


These are the advisory boards for RAND’s federally funded research and development centers (FFRDCs). 

Air Force Steering Group 

Gen Duncan J. McNabb 

(Chairman) 

Vice Chief of Staff 

Lt Gen David A. Deptula 

Deputy Chief of Staff for Intelligence, 

Surveillance, and Reconnaissance 

Lt Gen Frank G. Klotz 

Assistant Vice Chief of Staff and Director, 

Air Force Staff 

Lt Gen Donald J. Hoffman 

Military Deputy, Office of the Assistant 

Secretary of the Air Force for Acquisition 

Lt Gen Michael W. Peterson 

Chief of Warfighting Integration and Chief 

Information Officer 

Lt Gen James G. Roudebush 

Surgeon General of the Air Force 

Lt Gen Raymond E. Johns Jr. 

Deputy Chief of Staff for Strategic 

Plans and Programs 

Lt Gen Kevin J. Sullivan 

Deputy Chief of Staff for Logistics, 

Installations, and Mission Support 

Lt Gen Daniel J. Darnell 

Deputy Chief of Staff for Operations, 

Plans and Requirements 

Lt Gen Richard Y. Newton III 

Deputy Chief of Staff, Personnel 

Maj Gen Paul J. Selva 

(Executive Agent) 

Director, Air Force Strategic Planning; 

Deputy Chief of Staff for Strategic Plans 

and Programs 

Jacqueline R. Henningsen 

Director for Studies and Analyses, 

Assessments and Lessons Learned 

1999 

HIV Cost and Services Utilization Study 

(HCSUS) > HCSUS is the first comprehensive 

U.S. survey of health care use among a nationally 

representative sample of persons in care 

for HIV. The study provided unique information 

on the costs of HIV care, barriers to access, 

and effects of HIV on quality of life, productivity, 

and family life. 

Arroyo Center Policy Committee 

GEN Richard A. Cody (Cochair) 

Vice Chief of Staff, U.S. Army 

Claude M. Bolton, Jr. (Cochair) 

Assistant Secretary of the Army 

(Acquisition, Logistics, and Technology) 

Daniel Denning 

(Acting) Assistant Secretary of the Army 

(Manpower and Reserve Affairs) 

GEN William S. Wallace 

Commanding General, U.S. Army Training 

and Doctrine Command 

GEN Benjamin S. Griffin 

Commanding General, U.S. Army Materiel 

Command 

GEN Charles C. Campbell 

Commanding General, U.S. Army 

Forces Command 

LTG Robert W. Wagner 

Commanding General, U.S. Army Special 

Operations Command 

MG Gale S. Pollock 

Deputy, Surgeon General for Force 

Management/Chief United States Army 

Nurse Corps, U.S. Army 

LTG Michael D. Rochelle 

Deputy Chief of Staff, G-1, U.S. Army 

LTG James J. Lovelace 


LTG Ann E. Dunwoody 


LTG Jeffrey A. Sorenson 

Chief Information Officer, G-6, U.S. Army 

LTG Stephen M. Speakes 


LTG Robert Wilson 

Assistant Chief of Staff for Installation 

Management, U.S. Army 

LTG John F. Kimmons 


MG William T. Grisoli 

(Executive Agent) 

Director, Program Analysis and Evaluation, 

G-8, U.S. Army 

RAND National Defense Research 

Institute Advisory Board 

Ken Krieg (Chair) 

Under Secretary of Defense for Acquisition, 

Technology, and Logistics 

John Grimes 

Assistant Secretary of Defense for Networks 

and Information Integration 

Art “Trip” Barber 

Director, Assessment Division, Office of the 

Deputy Chief of Naval Operations 

Thomas Behling 

Deputy Under Secretary of Defense for 

Preparation and Warning, Office of the Under 

Secretary of Defense for Intelligence 

Jeanne Fites 

Deputy Under Secretary of Defense for 

Program Integration, Office of the Under Secretary 

of Defense for Personnel and Readiness 

Ryan Henry 

Principal Deputy Under Secretary of 

Defense for Policy 

MG Michael Vane, USA 

Vice Director, Force Structure, Resources 

and Assessment Directorate (J-8), Joint Staff 

Brad Berkson 

Director, Program Analysis and Evaluation, 

Office of the Secretary of Defense 

Mark Schaeffer 

Director, Systems and Software Engineering, 

Office of the Under Secretary of Defense for 

Acquisition, Technology, and Logistics 

Benjamin Riley 

Director, Rapid Reaction Technology Office, 

Office of the Director for Defense Research and 

Engineering 

Nancy Spruill (Executive Agent) 

Director, Acquisition Resources and Analysis, 

Office of the Under Secretary of Defense 

for Acquisition, Technology, and Logistics 

Anthony Tether 

Director, Defense Advanced Research 

Projects Agency 

Philip Rodgers 

Principal Deputy Director, Acquisition Resources 

and Analysis, Office of the Under Secretary of 

Defense for Acquisition, Technology, and Logistics 

Gary Bliss 

Deputy Director, OSD Studies and 

FFRDC Programs, Office of the Under Secretary 

of Defense for Acquisition, Technology, 

and Logistics 

2000 

The Societal Promise of Improving Care for Depression > RAND 

evaluated how two modest, practical programs in typical managed 

care settings could improve the quality of depression care that 

patients received and increase the amount of time that patients 

worked. No other quality-improvement program for any health 

condition in primary care has shown that kind of positive effect on 

employment. The programs also reduced ethnic disparities in health 

outcomes, even five years after the programs ended.


Advisory Trustees 

Peter S. Bing 

1988–1998; 1999–2002* 

Lewis M. Branscomb 

1972–1982 

William T. Coleman, Jr. 

1972–1975; 1977–1987 

Michael Collins 

1979–1989 

Richard P. Cooley 

1971–1981; 1982–1992 

Harold J. Haynes 

1988–1989 

Walter Humann 

1979–1989; 1990–2000 

Arthur Levitt 

2002–2007 

Former Trustees 

Frederick L. Anderson ‡ 

1959–1969 * 

J. Paul Austin ‡ 

1971–1981 

Robert F. Bacher ‡ 

1950–1960 

Carl Bildt 

2002–2006 

Solomon J. Buchsbaum ‡ 

1982–1992 

Frank R. Collbohm ‡ 

1948–1967 

Mark W. Cresap, Jr. 

1960–1963 

Robert Curvin 

2001–2006 

Charles Dollard ‡ 

1948–1961 

Lee A. DuBridge ‡ 

1948–1961 

Michael Ference, Jr. ‡ 

1963–1973 

Ann F. Friedlaender ‡ 

1988–1992 

H. Rowan Gaither, Jr. ‡ 

1948–1959; 1960–1961 

James C. Gaither 

1984–1994; 1995–2000 

Christopher B. Galvin 

1994–2000 

* dates indicate service as a RAND trustee 

‡ deceased 

Walter E. Massey 

1983–1991; 1993 

Michael M. May 

1972–1982; 1983–1993 

G. G. Michelson 

1984–1994; 1995–1998 

Newton N. Minow 

1965–1975; 1976–1986; 

1987–1997 

Walter F. Mondale 

1991–1993 

Lloyd N. Morrisett 

1973–1984; 1985–1995; 


J. Richard Munro 

1984–1994 

Sam Ginn 

1997–1999 

T. Keith Glennan ‡ 

1963–1974 

J. Richard Goldstein ‡ 

1951–1973 

W. Richard Goodwin ‡ 

1972–1982 

Philip L. Graham ‡ 

1961–1963 

Alan Greenspan 

1986–1987 

Caryl P. Haskins ‡ 

1955–1965; 1966–1976 

Lawrence J. Henderson, Jr. ‡ 

1948–1971 

William R. Hewlett ‡ 

1962–1972 

Carla A. Hills 

1983–1987 

Edwin E. Huddleson, Jr. ‡ 

1955–1965; 1966–1976; 

1977–1984 

John A. Hutcheson ‡ 

1948–1959 

Bruce Karatz 

1995–2005; 2006 

Charles F. Knight 

1981–1986 

Ernest O. Lawrence ‡ 

1956–1958 


1995–2005 

John Edward Porter 

2001–2006 

John S. Reed 

1987–1997; 2001–2006 

Paul G. Rogers 

1979–1989 

Henry S. Rowen 

1967–1972 

Brent Scowcroft 

1984–1988; 1993–1997 

Donald W. Seldin, M.D. 

1975–1985; 1986–1993 

Eleanor B. Sheldon 

1972–1982 

Alfred L. Loomis ‡ 

1948–1957 

Edwin M. McMillan ‡ 

1959–1969 

Soia Mentschikoff ‡ 

1972–1982 

Philip M. Morse ‡ 

1948–1949; 1950–1962 

Philip E. Mosely ‡ 

1951–1961; 1963–1972 

Harvey S. Mudd ‡ 

1949–1955 

Lauris A. Norstad ‡ 

1963–1973 

Amy B. Pascal 

2000–2005 

James A. Perkins ‡ 

1961–1971 

Samuel R. Pierce, Jr. ‡ 

1976–1981 

Thomas P. Pike ‡ 

1971–1976 

Kenneth S. Pitzer ‡ 

1962–1972 

Wesley W. Posvar ‡ 

1973–1983 

Don K. Price ‡ 

1961–1971 

Condoleezza Rice 

1991–1997 

2001 

Education Vouchers and Charter Schools > 

Researchers in RAND Education conducted the most 

comprehensive analysis of the effects of vouchers and 

charter schools on academic achievement, school 

choice, access, integration, and civic socialization. 

Their report, Rhetoric Versus Reality: What We Know 

and What We Need to Know About Vouchers and 

Charter Schools, earned respect from all sides of the 

debate. 

Gustave H. Shubert 

1973–1989 

Dennis Stanfill 

1978–1988 

Charles H. Townes 

1965–1970 

George H. Weyerhaeuser 

1975–1985 

John White 

1973–1977 


1994–2004 

Charles Zwick 

1969–1979; 1980–1990; 

1991–1999 

Donald H. Rumsfeld 

1977–1987; 1988–1998; 1999–2000 

David A. Shephard ‡ 

1959–1963; 1965–1973 

Kenneth I. Shine 

1993–2002 

Frank Stanton ‡ 

1957–1967; 1968–1978 

Frederick F. Stephan ‡ 

1948–1961 

George D. Stoddard ‡ 

1948–1963 

Julius A. Stratton ‡ 

1955–1965 

George K. Tanham ‡ 

1971–1982 

Ratan N. Tata 


Charles Allen Thomas ‡ 

1959–1969 

Paul A. Volcker 

1993–2000 

William Webster ‡ 

1950–1960; 1961–1971 

John F. Welch, Jr. 

1991–1992 

Albert D. Wheelon 

1993-2001 

Clyde E. Williams ‡ 

1948–1963 

Walter B. Wriston ‡ 

1973–1983


U.S. Government 

Department of Agriculture 

Agricultural Research Service 

Economic Research Service 

Department of Defense 

Counterdrug Technology 

Development Program 

Department of the Air Force 

Department of the Army 

Biometrics Management 

Office 

Department of the Navy 

Marine Corps 

Joint Staff 

Office of the Secretary of 

Defense 

Assistant Secretary of 

Defense (Networks and 

Information Integration) 

Deputy Secretary of Defense 

Under Secretary of Defense 

for Acquisition, Technology, 

and Logistics 

Defense Advanced 

Research Projects Agency 

Defense Research and 

Engineering 

Defense Threat Reduction 

Agency 

Missile Defense Agency 


(Comptroller) 

Defense Finance and 

Accounting Service 

Director, Program 

Analysis and Evaluation 


for Personnel and Readiness 

TRICARE Management 

Activity 


for Policy 

Director, Net Assessment 

Unified Commands 

Department of Education 

Department of Energy 

National Energy Technology 

Laboratory 

National Renewable Energy 

Laboratory 

Oak Ridge National Laboratory 

Pacific Northwest National 

Laboratory 

2003 

Nation-Building in Iraq > As Operation Iraqi Freedom 

transitioned into the U.S. occupation of Iraq, RAND 

began a new line of inquiry on lessons learned from 

previous nation-building experiences. The first volume 

in the series, America’s Role in Nation-Building, 

informed the Senate debate in September during 

the discussion on President Bush’s emergency 

supplemental request for Iraq, though few of the 

book’s recommendations were heeded. 

Department of Health and 

Human Services 

Administration for Children 

and Families 

Agency for Healthcare 

Research and Quality 

Assistant Secretary for 

Planning and Evaluation 

Centers for Medicare and 

Medicaid Services 

Centers for Disease Control 

and Prevention 

National Institute for 

Occupational Safety and 

Health 

Health Resources and Services 

Administration 

Maternal and Child Health 

Bureau 

National Institutes of Health 

National Cancer Institute 

National Center for 

Complementary and 

Alternative Medicine 

National Center on 

Minority Health and Health 

Disparities 

National Heart, Lung, and 

Blood Institute 

National Institute on Aging 

National Institute on 

Alcohol Abuse and 

Alcoholism 

National Institute of Allergy 

and Infectious Diseases 

National Institute of 

Child Health and Human 

Development 

National Institute for Dental 

and Craniofacial Research 


Diabetes and Digestive and 

Kidney Disease 

National Institute on Drug 

Abuse 


Environmental Health 

Sciences 

National Institute of Mental 

Health 


Nursing Research 

National Library of 

Medicine 

Substance Abuse and 

Mental Health Services 



Department of Homeland 

Security 

Executive Office for U.S. 

Trustees 

Federal Emergency 

Management Agency 

U.S. Coast Guard 

Department of Justice 

Federal Bureau of Investigation 

National Institute of Justice 

Office of Justice Programs 

Department of Labor 

Department of State 

Department of the Treasury 

Department of Veterans Affairs 

Sepulveda VA Medical Center 

Director of National Intelligence 

Intelligence Community 

Medicare Payment Advisory 

Commission 

National Aeronautics and Space 


National Institute for Literacy 

National Reconnaissance Office 

National Science Foundation 

Office of Science and Technology 

Policy 

Securities and Exchange 

Commission 

Small Business Administration 

Social Security Administration 

United States Senate 

United States Treasury 

Foreign 

Governments, 

Agencies, 

and Ministries 

Australian Government 

Royal Australian Air Force 

European Commission 

Directorate-General for 

Employment, Social Affairs, 

and Equal Opportunities 

Directorate-General for Health 

and Consumer Protection 


Information Society and 

Media 

Directorate-General for Justice, 

Freedom, and Security 


Transport 

France 

Régie autnome des transports 

parisiens 

German Ministry of Defense 

India, Ministry of Defence 

Defence Research & 

Development Organisation 

Italian Ministry of Defense 

Mexico 

Secretary of Public Education 

Netherlands 

Adviesdienst Verkeer 

& Vervoer (Ministry of 

Transport, Public Works and 

Water Management) 

Environmental Assessment 

Agency (MNP) 

Ministry of Defence 

Ministry of Education, 

Culture, and Science 

Ministry of the Interior and 

Kingdom Relations (BZK) 

Ministry of Transport, 

Public Works, and Water 

Management 

National Library of the 

Netherlands 


Buckingham County Council 

Cornwall County Council 

Crown Agents 

Department of Health 

National Coordinating 

Centre for NHS Service 

Delivery and Organisation 

R&D, UK National Health 

Service 

Department for International 

Development 

Department for Transport 

Health Foundation 

Home Office 

House of Commons Science & 

Technology Committee 

Ministry of Defence 

National Audit Office 

National Infrastructure 

Security Coordination Centre 

2004 

Workers’ Compensation > The RAND Institute 

for Civil Justice’s body of work on workers’ compensation 

provided a new understanding of the 

relationship between benefits and wage loss that 

permits better assessments of the adequacy and 

equity of compensation systems. The research led 

to significant changes in the California workers’ 

compensation system that were adopted with 

specific reference to ICJ in the legislation.



National Lottery 

Commission 

National Museum Directors’ 

Conference 

Royal Mail 

Transport of London 

UK Clinical Research 

Collaboration 

Republic of Korea Army 

State of Qatar 

Armed Forces 

Kahramaa (Qatar General 

Electricity and Water 

Corporation) 

National Health Authority 

Qatar Petroleum 

Qatar PWA Road Affairs 

Supreme Council for Family 

Affairs 

Supreme Education Council 

International 

Organizations 

Andrew T. Huang Medical 

Education Promotion Fund 

Center for European and 

International Studies 

China Foundation for 

International and Strategic 

Studies 

Information Assurance 

Advisory Council 

King’s Fund 

Korean Institute of Science and 

Technology Evaluation and 

Planning (KISTEP) 

Medical Research Council 

National Centre for Social 

Research 

National Projects Holding Co. 

SIKA (Swedish Institute 

for Transport and 

Communications Analysis) 

STIF (Syndicat des Transports 

d’Ile-de-France) 

Tatweer Dubai, LLC 

Vienna International Airport 

ZonMw—Netherlands 

Organisation for Health 

Research and Development 

State and Local 

Governments 

State of California 

Air Resources Board 

California Children & Families 

Commission 

California Commission on the 

Fair Administration of Justice 

California Legislative Analyst’s 

Office 

California Policy Research 

Center 

Commission on Health 

and Safety and Worker’s 

Compensation 

Department of Industrial 

Relations 

Department of Social Services 

Welfare Policy Research 

Projects 

California City and County 

Offices 

City of Los Angeles 

Los Angeles City Council 

Los Angeles County 

Los Angeles County 

Probation Department 

Los Angeles Unified School 

District 

Mental Health Services 

City of San Diego 

County of San Mateo, Aging 

and Adult Services 

Santa Barbara High School 

District 

Ventura County 

Western Riverside County 

Regional Conservation 

Authority 

City of Cincinnati 

Commonwealth of Pennsylvania 

Allegheny County Department 

of Human Services 

Allegheny Intermediate Unit 

Carnegie Library of Pittsburgh 

Pittsburgh Public Schools 

District of Columbia 

Department of Health 

Executive Office of the Mayor 

State of Louisiana 

Louisiana Recovery Authority 

State of Massachusetts 

Federal Reserve Bank of Boston 

State of New York 

Federal Reserve Bank of New 

York 

New York City 

Department of Education 

State of North Carolina 

Board of Education, Charlotte- 

Mecklenburg Schools 

State of Tennessee 

Advisory Committee on 

Intergovernmental Relations 

State of Texas 

Department of Transportation 

Colleges and 

Universities 

American College of Physicians 

Brandeis University 

Brunel University 

Health Economics Research 

Group 

California Policy Research 

Center, University of California 

Carnegie Mellon University 

College Voor Zorgbervekeringen 

Columbia University Medical 

Center 

Dana Farber Cancer Institute 

Drew University 

Georgetown University 

Harvard University 

The Johns Hopkins University 

Louisiana State University 

Agricultural and Mechanical 

College 

Makene University, Uganda 

National University of Singapore 

Northwestern University 

Ohio State University 

Oregon Health and Science 

University 

Peking University 

Pennsylvania State Education 

Association 

Pennsylvania State University 

Rutgers, The State University of 

New Jersey 

Tilburg University, CentERdata 

University of California, Berkeley 

2005 

Cost and Quality Effects of Computerizing Medical 

Records > RAND conducted the first comprehensive 

study to quantify the costs and potential health 

and cost benefits of health information technology. 

The analysis identified dramatic efficiency savings, 

greatly increased safety, and identified health 

benefits. Findings from the study have been cited in 

congressional legislation and are playing a prominent 

role in national health care reform proposals. 

University of California, Davis 

University of California, 

Los Angeles 

University of California, 

San Diego 

University College, Dublin 

University of Florida 

University of Illinois at Chicago 

University of Manchester, UK 

University of Maryland 

University of Medicine and 

Dentistry of New Jersey 

University of Michigan 

University of North Carolina 

University of Pennsylvania 

University of Pittsburgh 

University of Rochester 

University of Singapore 

University of Southern 

California 

University of Texas System 

University of Washington 

Vanderbilt University 

Foundations 

Amgen Foundation 

Annenberg Foundation 

Arthritis Research Campaign 

BEST Foundation 

California Community 

Foundation 

California Endowment 

California HealthCare 

Foundation 

Carnegie Corporation of New 

York 

Annie E. Casey Foundation 

Casey Family Programs 

Commonwealth Fund 

Communities Foundation of 

Texas 

Community Foundation, 

National Capital Region 

Dartmouth Institute for Security 

Technology Studies 

Nelson B. Delavan Foundation 

John E. Fetzer Institute, Inc. 

Flora Family Foundation 

The Ford Foundation

Foundation of Research and 

Education of AHIMA 

Bill and Melinda Gates 

Foundation 

The Grable Foundation 

Hartford Foundation 

Howard Heinz Endowment 

Vira I. Heinz Endowment 

The William and Flora Hewlett 

Foundation 

Conrad N. Hilton Foundation 

Jewish Healthcare Foundation of 

Pittsburgh 

The Robert Wood Johnson 

Foundation 

Joyce Foundation 

Kaiser Foundation Health Plan 

of Georgia 

Ewing Marion Kauffman 

Foundation 

W. K. Kellogg Foundation 

Los Alamos National Laboratory 

Foundation 

Henry Luce Foundation 

The John D. and Catherine T. 

MacArthur Foundation 

Richard King Mellon Foundation 

Nellie Mae Education 

Foundation 

New York City Police Foundation 

Open Society Institute 

Oxfam America 

David and Lucile Packard 

Foundation 

Pew Charitable Trusts 

Pew Memorial Trust 

Pittsburgh Foundation 

William Penn Foundation 

Qatar Foundation 

Rockefeller Foundation 

Eugene and Maxine Rosenfeld 

Family Foundation 

Spencer Foundation 

Stone Foundation 

Stranahan Foundation 

Stupski Foundation 

Surdna Foundation 

United Way of America 

Wallace Foundation 

Walton Family Foundation, Inc. 

World Bank 

Industry 

2006 

Replacing Aerial Refueling Tankers: An Analysis 

of Alternatives (AoA) > Aerial refueling tankers 

(so-called “gas stations in the sky”) play a critical 

role in U.S. military and national security strategy, 

enabling the United States to effectively deploy 

air power in worldwide operations, such as over 

Iraq and Afghanistan, and to operate effective 

homeland defense air patrols. 

Accent 

Aetna 

AFEAS Consortium 

Amgen 

Analytical Services, Inc. 

Bell Canada 

Berkeley Policy Associates 

BioReliance Invitrogen 

Bioservices 

Blue Cross & Blue Shield of 

Rhode Island 

Blue Cross Blue Shield Plus of 

Minnesota 

Blue Cross of California 

British Telecom 

Cerner Corporation 

CSSI, Inc. 

Deloitte & Touche LLP 

Edison Schools, Inc. 

Ferring, Inc. 

FMQAI 

Genentech, Inc. 

General Electric Company 

GlaxoSmithKline 

Halcrow Group Ltd. 

Hallmark, Inc. 

Health Services Advisory Group 

Honda R&D North America, Inc. 

Hugh Gunn Associates, LTD 

Humana, Inc. 

Industrial Economics, 

Incorporated (IEc) 

Institute for Healthcare 

Improvement 

Intel 

International Business Machines 

Johnson & Johnson 

Ethicon Endo-Surgery Inc. 

Kaiser Permanente Health Plan 

Ohio 

KRA Corporation 

Mathematica Policy Research, 

Inc. 

Mott MacDonald Group 

National Pharmaceutical Council 

Native American Industrial 

Distributors 

Organon 

Pepsi Bottling Group, Inc. 

Pfizer Inc 


PNC Financial Services Group 

Risk Management Solutions 

Sanofi Pharmaceuticals, Inc. 

Save the World Air, Inc. 

Science Applications 

International Corporation 

Sepulveda Research Corporation 

Stichting Pensioenfonds ABP 

STRATEC 

Stratus Consulting, Inc. 

Telomer Consortium 

Tetraplan A/S 

Transportation Economics & 

Management Systems 

U MAP Consortium 

United Health Group 

United Healthcare Services, Inc. 

Wellpoint Health Networks, Inc. 

Westfield Corporation 

Zenith Insurance 

Professional 

Associations 

American Fertility Association 

American Medical Association 

Blue Cross and Blue Shield 

Association 

Council of State Governments 

Gas Technology Institute 

Integrated Healthcare 

Association 

National Electrical 

Manufacturers Association 

Ohio Association of Chiefs of 

Police 

Other Nonprofit 

Organizations 

AED National Institute for Work 

and Learning 

Altarum 

American Institutes for Research 

American Society of Clinical 

Oncology 

Arkansas Tobacco Settlement 

Commission 

Arts Education Collaborative 

Bipartisan Policy Center 

Brookings Institution 

California Children and Families 

Commission 

Center for Health Care Strategies 

College Board 

Council for Aid to Education 

District of Columbia Asthma 

Coalition 

District of Columbia Primary 

Care Association 

Energy Future Coalition 

Growth & Justice 

Highmark, Inc. 

Institute for Health Policy 

Solutions 

Institute of Medicine 

Japan Marine Sciences Inc. 

Jet Propulsion Laboratory 

Kaiser Permanente 

League of Women Voters 

Learning Point Associates 

Magee–Women’s Research 

Institute 

Memorial Sloan-Kettering 

Cancer Center 

Merck Childhood Asthma 

Network, Inc. 

Motion Picture Association 

National Bureau of Economic 

Research 

National Hospice and Palliative 

Care Organization 

National Institute for Early 

Education Research 

National Military Family 

Association 

National Products Holding 

Company 

New England Medical Center 

Hospitals 

New Leaders for New Schools 

Nuclear Threat Initiative 

Oklahoma City National 

Memorial Institute for the 

Prevention of Terrorism 

Primary Care Coalition of 

Montgomery County 

Qualistar Early Learning 

Research Triangle Institute 

Shelter Partnership, Inc. 

Society for Assisted Reproductive 

Technology 

Technical Assistance 

Collaborative, Inc. 

UPMC for You 

Urban Institute 

2007 

Crafting a Complex Relationship with China > Several 

publications added new insights to inform policymakers’ 

understanding of the evolving superpower. One study examined 

broad historical trends in Asian geopolitics focused on seizing 

opportunities offered by China’s growing economy, and warned 

against taking a Cold War–era approach that overemphasizes 

military competition. Several other studies examined the most 

probable flashpoint for conflict between the U.S. and China—the 

relationship between mainland China and Taiwan.


Financial Report

The RAND Corporation 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 

with summarized financial information for the year ended September 24, 2006 

(in thousands) 


September 30, 2007 September 24, 2006 

ASSETS 

Current assets 

Cash and cash equivalents 

Receivables, net 

$ 36,174 $ 27,080 

Billed and unbilled costs and fees 37,555 40,968 

Other receivables 4,424 5,755 

Prepaid expenses and other current assets 4,387 4,729 

Total current assets 

Property and equipment 

82,540 78,532 

Land 1,334 1,334 

Buildings and improvements 106,655 105,965 

Leasehold improvements 15,007 14,592 

Equipment 44,626 42,982 

Construction in progress 2,077 1,143 

169,699 166,016 

Less: Accumulated depreciation and amortization (38,514) (31,887) 

Net property and equipment 131,185 134,129 

Long-term investments 205,621 186,261 

Building project fund investments 3,600 5,759 

Other assets 7,475 6,215 

Total assets $ 430,421 $ 410,896 

LIABILITIES AND NET ASSETS 

Current liabilities 

Accounts payable and other liabilities $ 20,892 $ 27,839 

Unexpended portion of grants and contracts received 20,152 14,724 

Accrued compensation and vacation 14,352 14,574 

Current portion of long-term debt 1,870 1,785 

Total current liabilities 57,266 58,922 

Deferred rent 12,776 12,951 

Accrued postretirement benefit liability 13,541 12,736 

Other long-term liabilities 3,625 — 

Long-term debt, less current portion 127,105 125,971 

Total liabilities 

Commitments and contingencies (Note 8) 

Net assets 

Unrestricted 

214,313 210,580 

Operations — — 

Designated for investment 142,893 134,079 

Designated for special use 11,411 9,375 

Total unrestricted 154,304 143,454 

Temporarily restricted 23,638 21,670 

Permanently restricted 38,166 35,192 

Total net assets 216,108 200,316 

Total liabilities and net assets $ 430,421 $ 410,896 

The accompanying notes are an integral part of these consolidated financial statements.


CONSOLIDATED STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS 



Unrestricted Net Assets 

For the Years Ended 


Total 

Unrestricted 

Temporarily 

Restricted 

Permanently 

Restricted Total Total 

Operations Designated 

REVENUE, GAINS, AND OTHER SUPPORT 

Contracts and grants $ 223,290 $ — $ 223,290 $ — $ — $ 223,290 $ 215,528 

Fees 8,414 — 8,414 — — 8,414 11,187 

Income on investments, net — 6,086 6,086 1,316 — 7,402 5,210 

Net realized gains on investments — 6,194 6,194 1,315 — 7,509 8,219 

Net unrealized gains on investments — 6,788 6,788 634 810 8,232 2,329 

Contributions 7,816 — 7,816 5,687 2,164 15,667 14,683 

Other investment income 

Transfer of designated net assets 

320 — 320 — — 320 486 

to operations 5,820 (5,820) — — — — — 

Net assets released from restrictions 6,984 — 6,984 (6,984) — — — 

Total revenues, gains, and other support 252,644 13,248 265,892 1,968 2,974 270,834 257,642 

EXPENSES 

Research 194,605 — 194,605 — — 194,605 185,520 

Management and general 56,432 — 56,432 — — 56,432 57,398 

Total expenses 251,037 — 251,037 — — 251,037 242,918 

Change in net assets before other items 1,607 13,248 14,855 1,968 2,974 19,797 14,724 

Other items: 

Change in fair value of derivative instruments 

(Note 7) 

Adjustment to Postretirement Benefit Liability 

(other than net periodic postretirement 

(3,625) — (3,625) — — (3,625) — 

benefit cost) (Note 6) (380) — (380) — — (380) — 

Noncash net asset transfer (Note 2) 2,398 (2,398) — — — — — 

Remediation related to land sale (Note 8) — — — — — — (5,551) 

Change in net assets — 10,850 10,850 1,968 2,974 15,792 9,173 

Net assets at beginning of year — 143,454 143,454 21,670 35,192 200,316 196,599 

Adjustment to beginning net assets (Note 2) — — — — — — (5,456) 

Net assets at end of year $ — $ 154,304 $ 154,304 $ 23,638 $ 38,166 $ 216,108 $ 200,316 

The accompanying notes are an integral part of these consolidated financial statements. 



CONSOLIDATED STATEMENTS OF CASH FLOWS 




For the Year Ended 

September 30, 2007 

For the Year Ended 

September 24, 2006 

Cash flows from operating activities: 

Change in net assets 

Adjustments to reconcile change in net assets to net cash 

provided by operating activities: 

$ 15,792 $ 9,173 

Depreciation and amortization 7,327 8,237 

Loss on debt extinguishment 2,077 — 

Noncash termination benefits — 1,536 

Foreign exchange gain (249) (188) 

Loss on disposition of property and equipment 136 268 

Permanently restricted contribution revenue (2,164) (1,629) 

Net realized/unrealized gains 

Changes in assets and liabilities: 

(15,741) (10,548) 

Decrease (increase) in billed and unbilled costs and fees 3,413 (1,898) 

Decrease (increase) in other receivables 923 (2,342) 

Decrease (increase) in prepaid and other current assets 342 (824) 

(Increase) decrease in other long-term assets (1,148) 3,686 

Decrease in accounts payable and other liabilities 

Increase (decrease) in unexpended portion of grants and 

(6,486) (4,031) 

contracts received 5,428 (3,312) 

(Decrease) increase in accrued compensation and vacation (222) 1,287 

(Decrease) increase in deferred rent (175) 3,057 

Increase in postretirement benefit liability 805 623 

Increase in other long-term liabilities 3,625 — 

Net cash provided by operating activities 13,683 3,095 

Cash flows from investing activities: 

Purchases of investments (54,835) (40,570) 

Sales of investments 51,192 37,790 

Proceeds from sales of project fund investments 2,159 16,485 

Purchases of property and equipment (4,892) (17,313) 

Net cash used in investing activities (6,376) (3,608) 

Cash flows from financing activities: 

Deposits to bond escrow (33,241) — 

Proceeds from bond issuance 34,975 — 

Payments of bond issuance costs (826) — 

Principal payments on long-term debt (1,785) (2,415) 

Contributions restricted for purchase of property and equipment 50 73 

Permanently restricted contributions received in cash 2,522 3,629 

Net cash provided by financing activities 1,695 1,287 

Effect of currency exchange rate changes on cash 92 116 

Net increase in cash and cash equivalents 9,094 890 

Cash and cash equivalents at beginning of year 27,080 26,190 

Cash and cash equivalents at end of year $ 36,174 $ 27,080 

The accompanying notes are an integral part of these consolidated financial statements.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

1. Corporate Organization: 

RAND Corporation (RAND) is a nonprofit, tax-exempt corporation performing research and analysis funded by 

contracts, grants, and contributions. In addition, RAND conducts educational programs that provide graduate 

training. 

The consolidated financial statements of RAND include the accounts of a controlled affiliate: RAND Europe, a 

foundation domiciled in The Netherlands (see also Note 11). All intercompany balances and transactions have 

been eliminated in consolidation. 

2. Summary of Significant Accounting Policies: 

Fiscal Year. RAND’s fiscal reporting for both financial statement and tax purposes is based on a 52- or 53-week 

year ending on the Sunday closest to September 30. The fiscal years include operations for a 53-week period in 

2007 and a 52-week period in 2006. 

Basis of Presentation. The accompanying financial statements have been prepared on the accrual basis of 

accounting in accordance with accounting principles generally accepted in the United States of America and in 

accordance with the American Institute of Certified Public Accountants Audit and Accounting Guide, “Not-for- 

Profit Organizations.” 

Net assets are classified into three categories according to donor-imposed restrictions, as follows: 

Permanently restricted—Net assets subject to donor-imposed stipulations that neither expire by passage of time 

nor can be fulfilled or otherwise removed by actions of RAND. Generally, the donors of these assets permit RAND 

to use all or part of the investment return on these assets. 

Temporarily restricted—Net assets whose use by RAND is subject to donor-imposed stipulations that either 

expire by passage of time or can be fulfilled and removed by actions of RAND. 

Unrestricted—Net assets that are not subject to donor-imposed stipulations. Unrestricted assets may be 

designated for specific purposes by action of the Board of Trustees. 

The financial statements include certain prior-year summarized comparative information in total but not by 

net asset category. Such prior-year information does not include sufficient detail to constitute a presentation 

in conformity with accounting principles generally accepted in the United States of America. Accordingly, such 

information should be read in conjunction with RAND’s financial statements for the year ended September 24, 

2006, from which the summarized financial information was derived. 

Use of Estimates. The preparation of financial statements in conformity with accounting principles generally 

accepted in the United States of America requires management to make estimates and assumptions that affect 

the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of 

the financial statements. Estimates also affect the reported amount of revenues, expenses, or other changes in 

net assets during the reporting period. Actual results could differ from these estimates. 

Revenue and Expense Recognition. Contract and grant revenues are recognized as the related services are 

performed in accordance with the terms of the contract or grant or using the percentage of completion 

method. 

Contributions, including unconditional promises to give, are recognized as revenue in the period received and 

are reported as increases in the appropriate category of net assets. Donor-restricted contributions that are 

received and either spent or deemed spent within the same fiscal year are reported as unrestricted revenue. 

Expenses are generally reported as decreases in unrestricted net assets. Expirations of donor-imposed stipulations 

or of board designations that simultaneously increase one class of net assets and decrease another are reported 

as transfers between the applicable classes of net assets. 

Concentrations of Risk. Cash and cash equivalents are maintained with several financial institutions. Deposits 

held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may 

be redeemed upon demand and are maintained with financial institutions of reputable credit and therefore 

bear minimal credit risk.


RAND derived 77 percent and 79 percent of its research revenues in fiscal years 2007 and 2006, respectively, 

from contracts, grants, and fees with agencies of the federal government. 

Cash and Cash Equivalents. RAND considers all highly liquid instruments purchased with a maturity of three 

months or less, whose purpose is not restricted, to be cash equivalents. 

Property and Equipment. Property and equipment is stated at cost. Depreciation is computed by the straightline 

method over the following estimated useful lives of the assets: 5 to 40 years for building and improvements 

and 3 to 20 years for equipment. Leasehold improvements are amortized by the straight-line method over 

the shorter of the estimated useful lives of the assets or the term of the lease. Construction in progress will 

be amortized over the estimated useful lives of the respective assets when they are ready for their intended 

use. Certain computer systems and software are internally developed. Costs associated with the application 

development stage are capitalized and depreciated over the useful life of the system or software. All other 

costs are expensed as incurred. Included in Equipment on the Consolidated Statements of Financial Position 

was $7,000,000 and $6,800,000 of computer systems and software at September 30, 2007, and September 24, 

2006, respectively. 

When assets are retired, the assets and related allowances for depreciation and amortization are eliminated 

from the accounts and any resulting gain or loss is reflected in operations. As of September 30, 2007, and 

September 24, 2006, approximately $14,154,000 and $11,593,000, respectively, of fully depreciated assets were 

in use. 

Investments. All investments of permanently restricted net assets and unrestricted net assets board designated 

for investment are pooled in a long-term investment fund. Income on pooled investments is allocated to the 

general use or individual special use funds based on the average balance for each fund (see Note 9). 

The percentage of board-designated funds distributed for unrestricted use was 4.5 percent and 4.0 percent 

in fiscal years 2007 and 2006, respectively, based on the average of the trailing twelve-quarter market values 

of the unrestricted funds. The total distribution was $5,820,000 and $4,754,000 for fiscal years 2007 and 2006, 

respectively. 

Gains and losses on investments and investment income are reported as increases or decreases in unrestricted 

net assets unless their use is restricted by explicit donor stipulation. 

Noncash Net Asset Transfers. Primarily due to RAND’s adoption of SAB 108 (see New Accounting Pronouncements 

in Note 2), a transfer of board-designated net assets (noncash) to operations totaling $3,500,000 was required 

for fiscal year 2006 to bring ending unrestricted net assets from operations to zero. An additional noncash 

transfer of $2,398,000 was required in fiscal year 2007 due to the change in value of derivative instruments (see 

Note 7) and the adoption of FASB 158 (see New Accounting Pronouncements in Note 2). These transfers will be 

reversed in future years as unrestricted net assets from operations become available. 

Building Project Fund Investments. The net proceeds from the tax-exempt bond issuance (see Note 7) were 

invested under a collateralized flexible draw investment agent that expired on October 1, 2005. The balance 

has since been invested in short-term AAA-rated 30-day commercial paper and/or a money market fund. 

These proceeds are subject to arbitrage rebate and yield restriction rules under the Internal Revenue Code in 

which excess earnings on tax-exempt bond proceeds must be rebated to the federal government if the yield on 

the investments exceeds the effective yield on the related tax-exempt bonds. The liability, if any, is accrued on 

an annual basis and must be remitted to the Internal Revenue Service after the end of every fifth bond year and 

upon full retirement of the bonds. A yield reduction liability of $37,000 and $115,000 was included in Accounts 

payable and other liabilities in the Consolidated Statements of Financial Position as of September 30, 2007, and 

September 24, 2006, respectively. 

Other investment income includes interest earned on these investments, including the change in the yield 

restriction liability, totaling $320,000 and $472,000 for fiscal years ended September 30, 2007, and September 

24, 2006, respectively.


Bond Issuance Costs. Bond issue costs represent expenses incurred in connection with issuing RAND’s revenue 

bonds (see Note 7) and are amortized over the term of the related bond issue on a straight-line basis, which 

approximates the effective interest method. Unamortized costs were $3,149,000 and $3,088,000 at September 

30, 2007, and September 24, 2006, respectively, and are included in Other assets on the Consolidated Statements 

of Financial Position. 

Income Tax Status. RAND is exempt from income tax under Section 501(c)(3) of the U.S. Internal Revenue Code 

and corresponding California provisions and has qualified for the 50 percent charitable contributions limitation. 

RAND has been classified as an organization that is not a private foundation under Section 509(a)(1) and has 

been designated a “publicly supported” organization under Section 170(b)(1)(A)(vi) of the Internal Revenue 

Code. 

Foreign Currency Translation. The assets and liabilities of RAND Europe are translated at year-end exchange 

rates; transactions are translated at the average exchange rates during the year. The effects from the translation 

of foreign currencies in the current and prior year are cumulatively immaterial to the consolidated financial 

statements. 

Supplemental Cash Flow Information. Cash paid for interest was $5,805,000 in fiscal year 2007 and $4,211,000 

in fiscal year 2006. 

New Accounting Pronouncements. In September 2006, the Financial Accounting Standards Board (FASB) issued 

FASB Statement No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, 

an amendment of FASB Statements No. 87, 88, 106, and 132(R) (FASB 158). For not-for-profit employers, FASB 

158 requires an entity to (i) recognize a defined benefit postretirement plan’s funded status—measured as 

the difference between the fair value of plan assets and the benefit obligation—in its statement of financial 

position and (ii) recognize as a separate line item within changes in unrestricted net assets—apart from 

expenses—prior service costs or credits and actuarial gains and losses that arise during the period but are not 

recognized as components of net periodic benefit cost pursuant to FASB Statement Nos. 87 and 106. In addition, 

as FASB 158 does not permit retrospective application, the cumulative unrecognized prior service costs or credits 

and actuarial gains and losses as of the end of the year are recognized as a transition adjustment in the year of 

adoption. RAND adopted FASB 158 as of its fiscal year ended 2007. See also Note 6. 

In September 2006, the U.S. Securities and Exchange Commission staff issued Staff Accounting Bulletin (SAB) 

No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year 

Financial Statements (SAB 108), which provides interpretative guidance on the consideration of the effects of 

prior-year misstatements in quantifying current-year misstatements for the purpose of a materiality assessment. 

SAB 108 requires companies to apply its provisions either by (i) restating prior financial statements or (ii) 

recording the cumulative effect as adjustments to the carrying values of assets and liabilities as of the beginning 

of the year of adoption with an offsetting adjustment recorded to the opening balance of Unrestricted Net 

Assets. The cumulative effect method of initially applying SAB 108 is permitted if the amount of the adjustment 

would have been material to the annual financial statements for the year preceding the adoption of SAB 

108 or if the effect of recording the adjustment in the year of adoption would be material to those financial 

statements. 

RAND had misstatements in periods prior to fiscal year 2006 related to lease accounting and deferred 

compensation. These misstatements were not material to any individual prior period, but the correction of 

such errors during fiscal year 2006 on a cumulative basis would have been material to the RAND fiscal year 

2006 consolidated financial statements. As such, RAND adopted SAB 108 during fiscal year 2006 in accordance 

with (ii) above using the cumulative effect method and adjusted the carrying values of its assets and liabilities 

with an offsetting adjustment to Unrestricted Net Assets as of September 26, 2005. Rent, depreciation, and 

compensation expenses were understated by $5,456,000 (cumulatively) in years prior to fiscal year 2006 so, 

as of September 26, 2005, RAND recorded a $6,962,000 increase in leasehold improvements, a $2,024,000 

increase in accumulated depreciation, a $9,894,000 increase in deferred rent, a $500,000 increase in deferred 

compensation, and a $5,456,000 decrease to unrestricted net assets to correct these misstatements.

3. Billed and Unbilled Costs and Fees: 

The following table summarizes the components of billed and unbilled contract and grant costs and fees 

(in thousands): 


U.S. government agencies 

Billed $ 10,607 $ 13,977 

Unbilled 15,509 14,905 

State, local, and private sponsors 

26,116 28,882 

Billed 7,592 6,816 

Unbilled 4,348 5,771 

11,940 12,587 

Allowance for bad debt (501) (501) 

$ 37,555 $ 40,968 

Unbilled amounts principally represent recoverable costs and accrued fees billed in the first quarter of fiscal 

year 2008 and fiscal year 2007, respectively. 

No significant contract terminations are anticipated at present, and past contract terminations have not 

resulted in significant unreimbursed costs. 

4. Contributions Receivable: 

Unconditional promises to give were $7,109,000 and $7,242,000 at September 30, 2007, and September 24, 

2006, respectively. The receivables are recorded net of the discount for future cash flows, using the riskfree 

rate of return appropriate for the expected term of the promise to give determined at the time the 

unconditional promise to give is initially recognized (5%). Receivables expected in one year or less are included 

in Other receivables and receivables expected after one year are included in Other assets on the Consolidated 

Statements of Financial Position. The carrying amount of Contributions Receivable is deemed a reasonable 

estimate of their fair value. 

Realization of the pledges is expected in the following periods (in thousands): 



In one year or less $ 4,424 $ 5,173 

Between one year and five years 2,939 2,232 

7,363 7,405 

Less discount (254) (163) 

$ 7,109 $ 7,242 

As more fully described in Note 9, contributions receivable are primarily intended for the following uses 



Temporarily restricted $ 6,854 $ 6,637 

Permanently restricted 255 605 

$ 7,109 $ 7,242 

During the fiscal year ended September 30, 2007, RAND received payments of prior-year pledges in the 

amount of $4,217,000. No allowance for uncollectible pledges was deemed necessary at September 30, 2007, 

or September 24, 2006. 

Donors have made conditional promises to give of $2,896,000 and $2,999,000 as of September 30, 2007, and 

September 24, 2006, respectively. These conditional pledges, which include revocable deferred gifts, are not 

recorded in these consolidated financial statements.


5. Long-Term Investments: 

Cash and cash equivalents included in long-term investments consist of commercial paper, money market funds, 

and other short-term investments and are carried at cost, which approximates fair value. 

Long-term investments are presented at fair value and all related transactions are recorded on the trade date. 

The investments consist of funds in both domestic and foreign equity securities and bonds. Approximately 34 

percent of the long-term assets consist of foreign stocks and bonds. Bond funds and equity funds include funds 

that are traded in public markets or that are available exclusively to institutional investors. For funds that are 

available exclusively to institutional investors, the underlying assets of the funds are traded in public markets. 

Alternative investments include RAND’s share of private equity funds and limited partnership arrangements for 

which there is no readily available market value. Alternative investments are carried at RAND’s net contribution 

and allocated share of undistributed profits and losses. The underlying value of the alternative investments 

may include assets for which the fair value is provided by the investment manager in good faith. Some of these 

investments have restrictions that limit RAND’s ability to withdraw funds as specified in the arrangements. 

RAND believes the carrying amount of these investments is a reasonable estimate of fair value. For those 

investments that are not traded on a ready market, the estimates of their fair value may differ from the value 

that would have been used had a ready market for those investments existed. The cost of securities sold is 

determined by the specific identification method. 

As of September 30, 2007, RAND had commitments outstanding to purchase alternative investments of 

$4,838,000; of these commitments, approximately $1,048,000 is due within one year. 

Investment income is shown net of related expenses of $455,000 and $208,000, for the fiscal years ended 

September 30, 2007, and September 24, 2006, respectively. 

Long-term investments consist of the following (in thousands): 


Cash and cash equivalents 

Shares of bond funds, at fair value 

$ 4,045 $ 8,836 

(cost, 2007—$77,031, and 2006—$74,095) 

Shares of equity funds, at fair value 

75,260 72,384 

(cost, 2007—$52,750, and 2006—$46,943) 

Alternative investments 

81,049 71,263 

(cost, 2006—$30,696, and 2006—$23,520) 45,267 33,778 

$ 205,621 $ 186,261 

6. Postretirement Benefits Other Than Pensions: 

In addition to providing certain retirement benefits, RAND provides health care benefits to certain employees 

who retire having met the required age and years of service with RAND. This coverage also applies to their 

dependents. Retirees may elect coverage under the Preferred Provider Organization, various HMOs, or 

reimbursement of individually purchased Medigap policies. Medicare becomes the primary coverage for 

retirees when they reach age 65. Retirees and dependents share substantially in the cost of coverage. RAND 

retains the right, subject to existing agreements, to change or eliminate these benefits. 

During 2003, the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (the “Act”) was 

signed into law. The Act expanded Medicare to include, for the first time, coverage for prescription drugs 

(Medicare Part D). This new coverage was generally effective January 1, 2006. Medicare Part D subsidies are 

reflected with respect to RAND’s postretirement benefit liabilities. 

RAND’s retiree medical program already provides prescription drug coverage for retirees over age 65 that 

equals or exceeds the benefit to be provided under Medicare. As long as the retirees remain in the Company 

medical plan rather than enrolling in the new Medicare prescription drug coverage, Medicare will share the 

cost of the plan with the Company and the employees. This legislation has therefore reduced RAND’s share of 

the obligations for future retiree medical benefits.

The following table sets forth the plan’s funded status reconciled with the amount shown in the Consolidated 

Statements of Financial Position (in thousands): 


Change in benefit obligation 

Benefit obligation at beginning of year $ 20,169 $ 20,292 

Service cost 664 655 

Increase due to passage of time 1,189 1,146 

Plan participants’ contributions 480 386 

Actuarial gain (793) (1,422) 

Benefits paid (1,017) (888) 

Benefit obligation at end of year 

Change in plan assets 

20,692 20,169 

Fair value of plan assets at beginning of year 6,090 5,365 

Actual return on plan assets 684 285 

Employer contributions 914 942 

Plan participants’ contributions 480 386 

Benefits paid (1,017) (888) 

Fair value of plan assets at end of year 7,151 6,090 

Unfunded obligation 13,541 14,079 

Unrecognized net actuarial loss — (1,338) 

Unrecognized prior service cost — (5) 

Net amount recognized $ 13,541 $ 12,736 

The following table provides the relevant weighted-average assumptions used: 

Discount rate used to determine benefit 

obligation 


6.50% 

6.00% 

Discount rate used to determine net periodic 

postretirement benefit cost 6.00% 5.75% 

Long-term rate of return on plan assets 8.00% 8.00% 

Assumed health care cost trend rates are as follows: 



Health care cost trend rate assumed for next year 9.50% 9.50% 

Rate to which the cost trend rate is assumed 

to decline 5.00% 5.00% 

Year that the rate reaches the ultimate trend rate 2014 2013 

The health care cost trend rate assumption has a significant effect on the amounts reported. Increasing the 

assumed health care cost trend rates by one percentage point in each year would increase the service cost and 

increase due to passage-of-time components of the fiscal year 2007 expense by $350,000 and the accumulated 

postretirement benefit obligation as of September 30, 2007, by $2,948,000. Decreasing the assumed health 

care cost trend rates by one percentage point in each year would decrease the service cost and decrease due to 

passage-of-time components of the fiscal year 2007 expense by $281,000 and the accumulated postretirement 

benefit obligation as of September 30, 2007, by $2,443,000.


The net periodic postretirement benefit cost for fiscal years ended September 30, 2007, and September 24, 

2006, included the following components (in thousands): 

2007 2006 

Service cost-benefits attributed to service during the 

period 

Increase in the accumulated postretirement benefit 

obligation to recognize the effects of the passage 

$ 664 $ 655 

of time 1,189 1,146 

Expected return on plan assets (489) (333) 

Recognition of loss — 190 

Recognition of prior service cost (26) (93) 

Net periodic postretirement benefit cost $ 1,338 $ 1,565 

The following benefit payments, which reflect expected future service and Medicare Part D subsidies, as 

appropriate, are expected to be paid (in thousands): 

Gross Benefit 

Payments 

Medicare Part 

D Subsidies 

Net Benefit 

Payments 

2008 $ 839 $ 55 $ 784 

2009 975 66 909 

2010 1,083 79 1,004 

2011 1,183 92 1,091 

2012 1,252 106 1,146 

Next five years 7,609 772 6,837 

Asset allocations at September 30, 2007, and September 24, 2006, by asset category are as follows: 


Cash and short term 10% 27% 

Shares of bond funds, at fair value 34 29 

Shares of equity funds, at fair value 36 26 

Alternative investments 20 18 

100% 100% 

Adjustment to Postretirement Benefit Liability (other than net periodic postretirement benefit cost) on the 

Consolidated Statements of Activities and Changes in Net Assets for the period ended September 30, 2007, is 

the required FASB 158 transition adjustment comprised of an actuarial loss of $349,000 and prior service costs 

of $31,000 and represents the cumulative amounts previously unrecognized in net periodic benefit cost as of 

September 30, 2007. 

Estimated prior service costs and actuarial net losses that are expected to be recognized in net periodic 

postretirement benefit cost during fiscal year 2008 are $7,600 and $0, respectively. 

RAND contributes to a Voluntary Employee Benefit Association irrevocable trust that is used to partially fund 

health care benefits for future retirees. In general, retiree health benefits are paid as covered expenses are 

incurred.

7. Borrowing Arrangements: 

Revenue Bonds. In 2002, RAND issued $130,000,000 of tax-exempt revenue bonds to finance the construction 

of its new Santa Monica headquarters facility ($32,500,000 Series 2002A fixed rate and $97,500,000 Series 2002B 

variable rate). During fiscal year 2007, RAND initiated an allowed-for one-time advanced refunding of its 2002A 

fixed rate bonds resulting in the issuance of $34,975,000 Series 2007 additional variable rate tax-exempt revenue 

bonds and the defeasance of the original Series 2002A as part of a plan of refinancing. The proceeds from 

the Series 2007 bonds, net of issuance costs of $1,006,000, were irrevocably deposited into an escrow fund and 

invested in U.S. Treasury Securities in an amount sufficient to service the principal and interest payments on 

the Series 2002A bonds through the redemption date of April 1, 2012. Included in management and general 

expenses on the Consolidated Statements of Activities and Changes in Net Assets is $2,077,000, recognized as a 

loss on the extinguishment of the Series 2002A fixed rate bonds. 

In anticipation of the issuance of the Series 2007 variable rate bonds, RAND entered into an interest swap 

agreement with a counterparty (the 2007 Swap) whereby RAND agrees to pay the counterparty a fixed rate of 

interest of 3.955% and the counterparty agrees to pay RAND the Series 2007 variable rate until April 1, 2012, 

and 67% of one-month LIBOR thereafter. The 2007 Swap terminates on April 1, 2042, the maturity date of 

the Series 2007 variable rate bonds. In addition, RAND entered into an interest rate swap agreement with a 

counterparty for $42,350,000 of its existing Series 2002B variable rate bonds (the 2002 Swap) whereby RAND 

agrees to pay the counterparty a fixed rate of interest of 3.955% and the counterparty agrees to pay RAND 67% 

of one-month LIBOR. The 2002 Swap terminates on April 1, 2042, the maturity date of the Series 2002B variable 

rate bonds. Included in Other items on the Consolidated Statements of Activities and Changes in Net Assets and 

in Other long-term liabilities on the Consolidated Statements of Financial Position is $3,625,000, recognized as 

the change in fair value of these derivative instruments. 

The payment of principal and interest on the bonds is insured by a third party. Long-term debt is as follows (in 

thousands): 

September 30, September 24, 


California Infrastructure and Economic Development Bank Variable Rate Revenue 

Bonds, Series 2007, issued in the original principal amount of $34,975,000, 

in connection with an advanced refunding of the Series 2002A bonds, in 

September 2007; average interest rate of 3.65% for the fiscal year ending 

September 30, 2007; annual principal payments ranging from $400,000 to 

$1,825,000, beginning April 1, 2008, and ending April 1, 2042 

California Infrastructure and Economic Development Bank Fixed Rate Revenue 

Bonds, Series 2002A, issued in the original principal amount of $32,500,000, in 

connection with the construction of a new facility in Santa Monica, California, 

in July 2002; interest rates ranging from 3.50% to 5.50%; defeased in 

September 2007; balance as of September 24, 2006, includes unamortized 

$ 34,975 $ — 

bond premium of $171,000 

California Infrastructure and Economic Development Bank Variable Rate Revenue 

Bonds, Series 2002B, issued in the original principal amount of $97,500,000, in 

connection with the construction of a new facility in Santa Monica, California, 

in July 2002; average interest rate of 3.5% and 3.1% for fiscal years ending 

September 30, 2007, and September 24, 2006, respectively; annual principal 

payments ranging from $1,470,000 to $4,400,000, beginning April 1, 2008, 

— 32,326 

and ending April 1, 2042 94,000 95,430 

128,975 127,756 

Less current portion (1,870) (1,785) 

Annual bond principal payments are required in the following fiscal years (in thousands): 

2008 $ 1,870 

2009 1,980 

2010 2,050 

2011 2,130 

2012 2,200 

Thereafter 118,745 

$ 128,975 


$ 127,105 $ 125,971


Accrued interest payable relating to the bonds was $298,000 and $1,035,000 as of September 30, 2007, and 

September 24, 2006, respectively. The estimated fair value of RAND’s revenue bonds, including the current 

portion, was $128,975,000 and $129,139,000 as of September 30, 2007, and September 24, 2006, respectively. 

Line of Credit. RAND has an uncollateralized line of credit in the principal amount of $18,000,000 at September 

30, 2007, which expires in May 2008. The line of credit contains covenants that require RAND to maintain a 

minimum amount of liquid assets and tangible net worth. There were no amounts outstanding at September 

30, 2007, and September 24, 2006. Under the terms of the credit agreement, interest is payable monthly at 

either the prime rate less .75 percent or the LIBOR rate plus 1.5 percent, as selected by RAND. No amounts were 

drawn on the line of credit agreement in fiscal years 2007 or 2006. 

RAND’s total interest expense was $5,093,000 and $4,718,000 for the fiscal years ended September 30, 2007, 

and September 24, 2006, respectively. 

8. Commitments and Contingencies: 

Lease Commitments. Operating lease commitments, net of $4,836,000 representing subleases, are as follows 


2008 $ 7,850 

2009 8,701 

2010 8,836 

2011 9,000 

2012 8,912 

Thereafter 24,303 

$ 67,602 

Future minimum rentals are primarily comprised of office, equipment, and warehouse space leases. Certain 

of RAND’s office leases contain rent escalation clauses and fair-market renewal options. All property leases 

generally require RAND to pay for utilities, insurance, taxes, and maintenance. RAND’s net rental expense 

was $7,440,000 and $8,285,000 for the fiscal years ended September 30, 2007, and September 24, 2006, 

respectively. 

Other Commitments. Contract costs billed to government clients are subject to audit by the Defense Contract 

Audit Agency (“DCAA”). Resulting indirect cost adjustments, if any, are prorated to all contracts. Contract costs 

billed prior to September 24, 2006, have been audited and accepted. To date, there have been no significant 

cost disallowances. In the opinion of management, contract costs billed subsequent to September 24, 2006, 

are allowable, and any potential cost disallowance would not materially affect RAND’s consolidated financial 

position, results of operations, or cash flows. 

RAND has certain contingent liabilities with respect to claims arising from the ordinary course of business. In 

the opinion of management, such contingent liabilities will not result in any loss that would materially affect 

RAND’s financial position, results of operations, or cash flows. 

Environmental Remediation. Under the terms of an agreement with the City of Santa Monica (the “City”) for 

the sale of land owned by RAND, RAND is responsible for the demolition of existing buildings on the site and 

environmental remediation with respect to the underlying land. 

During 2006, RAND reevaluated its estimate of costs related to the demolition and remediation. Based on the 

most current information available, RAND accrued an additional $5,551,000, which is included in Remediation 

related to land sale on the Consolidated Statements of Activities and Changes in Net Assets for fiscal year 2006. 

The estimated outstanding liability associated with the demolition and environmental remediation is $0 and 

$3,497,000 as of September 30, 2007, and September 24, 2006, respectively. In accordance with the terms of 

the agreement, an escrow account has been established to ensure performance of these matters. Also, under 

the terms of the agreement with the City, RAND must indemnify the City for claims related to the presence 

of hazardous materials at the site for a period until ten years after the demolition of the old buildings and 

completion of soil and groundwater remediation. There can be no assurance that future claims for indemnity 

will not have a material adverse effect on RAND’s consolidated results of operations or cash flows. 

In December 2006, the City advised RAND that all demolition and remediation requirements under the terms 

of the agreement had been fulfilled and authorized release of the remaining funds from the escrow account. 

RAND received $1,058,000 in January 2007.

9. Net Assets: 


Board-Designated Net Assets. Board-designated net assets are available for the following purposes 



Designated for investment 

Designated for special use: 

$ 142,893 $ 134,079 

RAND Education 3,640 3,150 

National Security Research and Training 2,879 2,350 

RAND Institute for Civil Justice 2,673 2,355 

President’s Fund 747 514 

Bing Center for Health Economics 390 369 

Pardee RAND Graduate School 385 207 

Other 697 430 

11,411 9,375 

$ 154,304 $ 143,454 

Temporarily Restricted Net Assets. Temporarily restricted net assets are available for the following purposes 



Pardee RAND Graduate School $ 3,697 $ 3,326 

RAND Center for Middle East Public Policy 2,720 2,756 


Bing Center for Health Economics 1,670 1,818 

President’s Fund 1,626 101 

RAND Health 

RAND Center for Russia and Eurasia 

1,591 2,180 

RAND Business Leaders Forum 1,372 1,391 

General support 117 228 


RAND Center for Asia Pacific Policy 1,118 766 

RAND Headquarters 1,005 900 

RAND Pardee Center for Longer Range Global Policy 954 671 

Paul O’Neill Alcoa Professorship in Policy Analysis 817 617 

RAND Infrastructure, Safety, and Environment 631 307 

RAND Center for Domestic and International Health Security 511 815 

RAND Child Policy 458 483 

LRN-RAND Center for Corporate Ethics, Law, and Governance 443 911 

Other 1,591 1,382 

$ 23,638 $ 21,670


Permanently Restricted Net Assets. Permanently restricted assets are shown below by the purpose designated 

by the donor. The assets are invested in perpetuity and the income is available to support the restricted activities 




General support $ 12,427 $ 11,711 

Awards and scholarships 3,120 2,862 



RAND Pardee Center for Longer Range Global Policy 3,670 3,670 

RAND—general support 3,565 3,565 

Paul O’Neill Alcoa Professorship in Policy Analysis 2,479 2,479 

Tang Institute for U.S.–China Relations 2,000 — 

Research Position Endowment 1,500 1,500 

Other 771 771 

$ 38,166 $ 35,192 

10. Employee Retirement Plans: 

RAND has four defined contribution employee plans: a Qualified Retirement Plan (“QRP”), a Supplemental 

Retirement Annuity Plan (“SRAP”), a Nonqualified Deferred Compensation Plan (“NDCP”), and a Nonqualified 

Supplementary Plan (“NSP”). Most full-time, regular employees are eligible to participate in the QRP and SRAP. 

Certain employees are eligible to participate in the NSP and NDCP. RAND has reserved the right to terminate 

the plans at any time, but in such an event, the benefits already purchased by the participant and contributions 

already made by RAND would not be affected. The QRP and the NSP are entirely RAND-financed. RAND’s 

contributions to the Plans for eligible employees range from 5 percent to 14 percent of salaries, depending on 

the level of wages and age of the participating employee. RAND’s contributions to the QRP vest at the earlier 

of retirement or four years of service. Vesting begins after two years of service and increases weekly to 100 

percent at the end of four years of service. The NSP and NDCP vest under various conditions specified in the 

plan. All contributions made by RAND are charged to operations. RAND’s contributions were $10,081,000 and 

$9,490,000 for the fiscal years ended September 30, 2007, and September 24, 2006, respectively. The SRAP and 

NDCP only require employee contributions and RAND does not contribute to these plans. 

11. Termination Benefits: 

FASB Statement No. 146, Accounting for Costs Associated with Exit or Disposal Activities (FAS 146), includes a 

provision that a liability for one-time termination benefits provided to current employees that are involuntarily 

terminated under the terms of a benefit arrangement must be recognized in the period(s) in which the liability 

is incurred. During fiscal year 2006, RAND initiated the centralization of the operations of RAND Europe to 

its Cambridge office. This centralization includes closure of its offices in Berlin, Germany (completed in fiscal 

year 2006) and Leiden, The Netherlands (completed in fiscal year 2007) and wind down of the associated 

legal entities (to be completed in fiscal year 2008). For fiscal year 2006, included in management and general 

expenses on the Consolidated Statements of Activities and Changes in Net Assets and in Accounts payable and 

other liabilities on the Consolidated Statements of Financial Position is $1,536,000 in one-time termination 

benefits for certain employees of RAND Europe who were involuntarily terminated. These benefits were paid 

during fiscal year 2007. An additional $491,000 of benefits were incurred during fiscal year 2007 and paid prior 

to September 30, 2007. No additional payments are expected during fiscal year 2008.

Photo Credits 

COVER IMAGES 

GETTY IMAGES: John-Francis Bourke, schoolgirl (5–7) balancing books 

on head, portrait; Anthony Correia (two images), attack on New York 

City; Derek Croucher, traffic on street, elevated view; Ed Darack, a CH-47 

chinook roars through cold mountain air; Ed Darack, driving an M1A1 

Abrams Tank; Bill Gallery–Doctor Stock, the power of touch; Justin 

Guariglia, Ijen plateau, Bali, Indonesia; Justin Guariglia, Shaolin, Henan 

Province, People’s Republic of China, students at the Ta Gou Academy 

hold up copies of World magazine; Karen Kamauski, banana plantation; 

Karen Kasmauski (two images), measles initiative launches its largest 

mass vaccination campaign in Kenya; John Lee, a statue of Chairman 

Mao among advertisements in Zhengzhou, China; Ryan McVay, boy 

and girl writing on blackboard in school classroom; Michael Melford, 

nuclear submarine in ocean, dawn; Kevin R. Morris, U.S. Navy nuclear 

submarine resurfacing, Alaska, USA; Paul Nicklen, Canada Basin, Arctic 

Ocean, global explorer, an ROV capable of diving 9,400 feet, works off 

ship; Charles Ommanney, U.S. military personnel depart for overseas 

operations; Panoramic Images, pedestrians in front of tram, Hong Kong, 

China; Christopher Pillitz, Mexico, Mexico City, women and children in 

slum next to train tracks; Richard Ross, USA, California, Santa Barbara, 

dry lake bed at Gibraltar Dam; Phil Schermeister, U.S., young girl dresses 

up in her mother’s glasses; Frank Schwere, steel skeleton of building north 

of Ground Zero, sunset; Frank Schwere, truck and dozer moving debris at 

Ground Zero, night; Uriel Sinai/stringer, Israeli tanks prepare to roll into 

Gaza for continued offensive; Hugh Sitton, China, Beijing, Tiananmen 

Square, gateway to the Forbidden City; Keren Su, China, Gansu Province, 

Dunhuang, woman with camel in desert; Mario Tama, evacuees begin to 

return to New Orleans’ devastated Lower 9th Ward; Pete Turner, road in 

barren landscape, dusk; Erik Von Weber, cement bridge over river leading 

to mountain range; Steve Winter, near Pyay, Irrawaddy River Delta, 

Myanmar, a man harvests rice in the Irrawaddy River Delta. AP IMAGES: 

Girl listening to her own heart; Iraq; Kansas Schools Bilingual; Katrina 

New Orleans; teaching to the test; Petar Petrov, Bulgaria, U.S. Army 

exercise; John Stanmeyer/VII, bird flu Indonesia. U.S. NAVY PHOTO: 

Photographer’s Mate 3rd Class Jordon R. Beesley, Stealth Bomber. 

INTERIOR IMAGES 

AP IMAGES, IS651-064 (page 4); AP IMAGES, girl listening to her own heart 

(page 5); AP IMAGES/Petar Petrov, Bulgaria, U.S. Army exercise (page 6); 

AP IMAGES, U.S. antiwar demonstration (page 7); AP IMAGES/Levittown 

Public Library, looking for Levittown (page 8); AP IMAGES, Katrina 

New Orleans (page 9); GETTY IMAGES/Richard Ross, USA, California, 

Santa Barbara, dry lake bed at Gibraltar Dam (page 10); GETTY IMAGES/ 

PhotosIndia, interiors of an empty conference room (page 11); FEMA/Win 

Henderson, volunteer workers help homeless (page 12); AP IMAGES/John 

Stanmeyer/VII, bird flu Indonesia (page 13); GETTY IMAGES/Ryan McVay, 

boy and girl writing on blackboard in school classroom (page 14); 

AP IMAGES/Charles E. Knoblock, first-graders publish book (page 15); 

AP IMAGES, Morocco–Algeria border conflict (page 16); AP IMAGES, Iraq 

(page 17); GETTY IMAGES/Mario Tama, NY police increase vigilance after 

possible terror threat (Page 27); GETTY IMAGES/Mario Tama, evacuees 

begin to return to New Orleans’ devastated Lower 9th Ward (page 27); 

GETTY IMAGES/Charles Ommanney, U.S. military personnel depart for 

overseas operations (page 27); GETTY IMAGES/Teh Eng Koon, a worker 

climbs up a ladder (page 29); GETTY IMAGES/William A. Plowman, 

hospital gives patient pet therapy (page 29); GETTY IMAGES/Christopher 

Pillitz, Mexico, Mexico City, women and children in slum next to train 

tracks (page 29). DIANE BALDWIN: Jim Thomson and Ann McLaughlin 

Korologos (page 2); Iao Katagiri (page 18); Policy Forum (page 20); Brian 

Stecher and Ramon Cortines (page 21); Beth McGlynn (page 21); Paul 

Koegel (page 21); President’s Award winners (page 23); Richard Bowman 

(page 24); PRGS students (page 25); Fred Pardee and others (page 30); 

Donald Tang and Michael Tennenbaum (page 31); Malcolm Palmatier and 

Jim Thomson (page 32); Sherry Lansing, J. Q. Wilson, Santiago Morales, 

Robert Spinrad, James Lovelace (page 34); Don Rice and Jim Thomson 

(page 36); Sheikha Mozah Bint Nassar Al Missned (page 37); Robert H. 

Brook, Jeffrey Wasserman, Leonard Schaffer, Gail Warden (page 38); 

Sharon Baradaran, Elizabeth Stacey, Lalita Gupta (page 39); RAND board 

meeting (page 40) 


TIMELINE PHOTOS 

RAND archives: pages 16, 17, 18, 20, 21, 22, 23, 24; AP IMAGES, briefmarken 

(page 25); AP IMAGES/Horst Faas, Vietnam War, captured Viet Cong 

(page 26); AP IMAGES, Mars face (page 27); AP IMAGES/Kurt Strumpf, 

Munich Terrorism 1972; GETTY IMAGES, Flying Colours Ltd. (page 28); 

GETTY IMAGES/Retrofile, family watching television (page 30); Permeable 

dam, public domain (page 31); Media Bakery, handcuffed person (page 32); 

DoD, MX intercontinental ballistic missile reentry vehicle, Kwajalein 

missile range, Marshall Islands (page 33); AP IMAGES, Ronald Reagan 

(page 33); AP IMAGES, xray (page 34); AP IMAGES, ozone layer (page 34); 

GETTY IMAGES/Roy McMahon, boy rolling joints outside (page 35); 

AP IMAGES/Jeff Chiu, nurse (page 36); DoD/LcPl Justin Mason, USMC, 

oath of reenlistment (page 36); AP IMAGES/Eugene Richards, cocaine 

true, cocaine blue (page 37); AP IMAGES/Karsten Thielker, Hungary NATO 

(page 38); AP IMAGES/Las Vegas Sun, Steve Marcus, 311 Boyz (page 38); 

AP IMAGES, GOP Convention, immigration (page 39); AP IMAGES, NATO 

expansion (page 40); AP IMAGES, AIDS failure (page 40); AP IMAGES, 

report on depression (page 41); AP IMAGES/Nam Y. Huh, social studies 

shutout (page 42); AP IMAGES/Jerome Delay, Iraq anniversary (p. 42); 

AP IMAGES, workers’ comp (page 43); GETTY IMAGES/Thomas Barwick 

(page 44); AP IMAGES, war aerial refueling (page 44); AP IMAGES, 

China Asia Paulson (page 45) 

The RAND research referred to in the opening essays 

is listed below 

“The Quality of Ambulatory Care Delivered to Children in the United 

States,” R. Mangione-Smith, A. H. DeCristofaro, C. M. Setodji, J. Keesey, 

D. J. Klein, J. L. Adams, M. A. Schuster, E. A. McGlynn, The New England 

Journal of Medicine, Vol. 357, No. 15, October 2007 

A New Division of Labor: Meeting America’s Security Challenges Beyond Iraq, 

Andrew R. Hoehn, Adam Grissom, David A. Ochmanek, David A. Shlapak, 

Alan J. Vick, MG-499-AF 

Post-Katrina Recovery of the Housing Market Along the Mississippi Gulf Coast, 

Kevin F. McCarthy, Mark Hanson, TR-511-OA/MAR/NAR 

“A New Analytic Method for Finding Policy-Relevant Scenarios,” 

David G. Groves, Robert J. Lempert, Global Environmental Change, Vol. 17, 

No. 1, February 2007 

The Federal Role in Terrorism Insurance: Evaluating Alternatives in an Uncertain 

World, Lloyd Dixon, Robert J. Lempert, Tom LaTourrette, Robert T. Reville, 

MG-679-CTRMP 

Improving Global Influenza Surveillance: Strategies for the U. S. Government, 

Melinda Moore, Edward W. Chan, Nicole Lurie, Agnes Gereben Schaefer, 

Danielle M. Vogenbeck, John A. Zambrano, WR-470-DHHS 

Heads We Win: The Cognitive Side of Counterinsurgency (COIN), 

David C. Gompert, OP-168-OSD 

Money in the Bank: Lessons Learned from Past Counterinsurgency (COIN) 

Operations, Angel Rabasa, Lesley Anne Warner, Peter Chalk, Ivan Khilko, 

Paraag Shukla, OP-185-OSD 

Counterinsurgency in a Test Tube: Analyzing the Success of the Regional Assistance 

Mission to Solomon Islands (RAMSI), Russell W. Glenn, MG-551-JFCOM 

Standards-Based Accountability Under No Child Left Behind: Experiences of 

Teachers and Administrators in Three States, Laura S. Hamilton, Brian M. 

Stecher, Julie A. Marsh, Jennifer Sloan McCombs, Abby Eisenshtat Robyn, 

Jennifer Lin Russell, Scott Naftel, Heather Barney, MG-589-NSF 

State and Local Implementation of the No Child Left Behind Act: 

Volume I—Title I School Choice, Supplemental Educational Services, and Student 

Achievement, Ron Zimmer, Brian Gill, Paula Razquin, Kevin Booker, 

J.R. Lockwood III, et al., RP-1265 

State and Local Implementation of the No Child Left Behind Act: 

Volume II—Teacher Quality Under NCLB: Interim Report, U.S. Department 

of Education, RP-1283

For more information about RAND 

Call 310.393.0411 x8040 

Write The RAND Corporation 

Lindsey Kozberg, Vice President 

Office of External Affairs 

1776 Main Street 

P.O. Box 2138 

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Email lindsey_kozberg@rand.org 

To order RAND publications 

Call 310.451.7002 or toll free 877.584.8642 

Email order@rand.org 

Web www.rand.org 

2007 Annual Report Team 

MARGARET SCHUMACHER 

Deputy Director, Office of External Affairs 

JENNIFER GOULD 

Director of Outreach 

PETER SORIANO 

Design and Production 

STEVE BAECK 

Editor 

RON MILLER 

Art Director 

JOHN GODGES 

Communications Analyst


RAND Board of Trustees 

December 2007 

Ann McLaughlin Korologos 

(Chairman) 

Chairman Emeritus, The Aspen Institute; 

Former U.S. Secretary of Labor 

Frank C. Carlucci (Vice Chairman) 

Chairman Emeritus, The Carlyle Group; 

Former U.S. Secretary of Defense 

Lovida H. Coleman, Jr. 

Partner, Sutherland, Asbill & Brennan LLP 

Timothy F. Geithner 


Federal Reserve Bank of New York 

John W. Handy 

Executive Vice President, Horizon Lines, Inc.; 

General, USAF (Ret.) 

Rita E. Hauser 

President, The Hauser Foundation, Inc. 


Former Publisher, The Wall Street Journal; 

Former Senior Vice President, Dow Jones 

and Company, Inc. 

Jen-Hsun Huang 


NVIDIA Corporation 

Paul G. Kaminski 


Technovation, Inc.; Former U.S. Undersecretary 

of Defense for Acquisition and Technology 

Lydia H. Kennard 

Former Executive Director, Los Angeles 

World Airports 

Philip Lader 

Chairman, The WPP Group; Former 

U.S. Ambassador to the Court of St. James 

Peter Lowy 

Chief Executive Officer, Westfield, LLC 

Bonnie McElveen-Hunter 


Pace Communications, Inc.; Former 

U.S. Ambassador to Finland 

Ronald L. Olson 

Partner, Munger, Tolles & Olson LLP 

Paul H. O’Neill 

Former U.S. Secretary of the Treasury 

Michael K. Powell 

Former Chairman, Federal Communications 

Commission; Senior Advisor, Providence Equity 

Capital; Chairman, MK Powell Group 

Donald B. Rice 


Officer, Agensys, Inc.; Former Secretary 

of the U.S. Air Force 

James E. Rohr 


The PNC Financial Services Group 

James F. Rothenberg 

Chairman and Principal Executive Officer, 

Capital Research and Management Company 

Donald Tang 

Vice Chairman, Bear, Stearns & Company, Inc.; 

Chairman and President, Bear, Stearns 

International 




Marta Tienda 

Maurice P. During ’22 Professor in 

Demographic Studies and Professor 

of Sociology and Public Affairs, 

Princeton University 

Trustee Emeritus 

Harold Brown 

Counselor, Center for Strategic and 

International Studies; Former U.S. Secretary 

of Defense


The RAND Corporation is a nonprofit institution that helps improve 

policy and decisionmaking through research and analysis. 

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RAND Corporation: Annual Report 2007

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