Editor’s Picks

In "A Pragmatic Plan for Housing Finance Reform," the authors articulate a vision and core principles without prescribing detailed legislative imperatives. They argue that continued flexibility consistent with basic principles will be essential as a new housing finance system develops in an environment of significant demographic and economic volatility. When considering how a future housing finance system should operate, the authors emphasize the importance of diverse sources of mortgage funding; participation in the system by lending institutions of all sizes; and the need for explicit, paid-for government guarantees to cover catastrophic losses. Recognizing that ensuring access and affordabilty in a new housing finance system is essential to a vibrant economy, the paper's authors also recommend the establishment of a Market Access Fund (MAF). Among the components included in the MAF: a Research and Development Fund to pilot testing of innovate products that expand the market for sustainable homeownership; a Credit Support Fund to increase access for sustainable homeownership and the rental market; and two funds that were created in 2008 to be funded by Fannie Mae and Freddie Mac, the Capital Magnet Fund, which would attract private capital investment in affordable housing and community development, and the National Housing Trust Fund, a block grant program to preserve the supply of rental housing for extremely low-income families. The authors called for an end to Fannie Mae and Freddie Mac, recommending that the remaining assets to be sold to private investors to help repay taxpayers for backing these institutions. However, the authors do see a continued role for the Federal Housing Administration (FHA), which primarily support first time homebuyers and affordable rental housing. That mission would be more explicitly defined in the author's proposal; under the new system, the FHA's share of the single family market would fall back to historical norms of 10-12% of mortgage originations. That is in contrast to today's share, which is at least 20%. The paper does not address changes to the Federal Home Loan Bank System.

Speakers: Tony Blair, Former Prime Minister, Great Britain and Northern Ireland, Bill Gates, Co-Chair and Trustee, Bill & Melinda Gates Foundation, H.E. Paul Kagame, President of the Republic of Rwanda, Strive Masiyiwa, Chairman and Founder, Econet Wireless, Rhonda Zygocki, Executive Vice President, Policy and Planning, Chevron. Moderator: Michael Milken, Chairman, Milken Institute Africa is home to six of the 10 fastest-growing economies, driven largely by surging foreign investment flows. FDI is expected to reach $150 billion in 2015 - double the amount received last year and six times more than in 2000. Africa is also home to the world's largest concentration of impoverished people, and the considerable gap between rich and poor continues to widen. For Africa's natural resource sector - target of 90 percent of foreign investment - to spread prosperity, reduce inequality and underwrite gains in human development, a new, collaborative approach to investment is essential. There are important roles for a range of players: investors, corporations, governments, development agencies, NGOs and foundations. This panel of global leaders will discuss innovative and untraditional ways to expand health care, build institutions and broaden the economic base on the continent.

Speaker: Al Gore, Former Vice President, United States of America. Interviewer: Michael Klowden, CEO, Milken Institute. In the contest between "The Global Mind" and "Earth Inc.," who will win? Oscar winner, Nobel laureate, environmental activist, bestselling author and former Vice President Al Gore offers his assessment of the future, in which rapid human population growth and an expanding global middle class are contributing to an increase in consumption and the depletion of natural resources. What is the influence of technological innovation on politics in a world undergoing the most rapid change in its history? Who will prevail -- the powerful transnational corporations and networked entrepreneurs disrupting the traditional power of the nation-state, or will it ultimately be a connected, enlightened public? Join us for an expansive and provocative forecast.

Speakers: Gary Becker, Nobel Laureate; Professor of Economics and Sociology, University of Chicago, Robert Rubin, Co-Chairman, Council on Foreign Relations; former U.S. Treasury Secretary. Moderator:David Rubenstein, Co-Founder and Co-CEO, The Carlyle Group. In this session, Carlyle Group co-founder David Rubenstein interviews former U.S. Treasury Secretary Robert Rubin and Nobel laureate economist Gary Becker about global economic trends, public finance and the capital markets. Join us for a multifaceted discussion among three renowned leaders of finance.

Speakers: Abby Joseph Cohen, Senior Investment Strategist and President, Global Markets Institute, Goldman Sachs. Gary Loveman, Chairman, President and CEO, Caesars Entertainment Corporation. Raymond McGuire, Global Head, Corporate and Investment Banking, Citi. Jim Moffatt, Chairman and CEO, Deloitte Consulting LLP. Maggie Wilderotter, Chairman and CEO, Frontier Communications. Moderator: Ross DeVol, Chief Research Officer, Milken Institute. The fundamentals of the U.S. economy seem to be improving. Corporate balance sheets are robust, banks have rebuilt capital buffers, consumers have shed debt, jobs are growing modestly, housing prices have stopped falling, and cheap natural gas has boosted competitiveness in energy-intensive industries. Washington, D.C., did its best to drive the economy over the fiscal cliff at the beginning of the year but veered away at the last minute. How much better might things be if Washington could reach a compromise on taxes and spending that will reduce the medium-term deficit but not cause too much pain in the near term? Can the U.S. recovery gain enough speed to slash the jobless rate despite the eurozone recession? When and how will the Federal Reserve shrink its balance sheet and ease up on asset purchases? Stocks have surged, but have equity markets gotten ahead of themselves and is there froth in high-yield corporate debt? Our panel will combine these issues into a view of the most important trends that lie ahead for the biggest player in the world economy.

Speakers: Elon Musk, CEO and CTO, SpaceX; CEO and Product Architect, Tesla Motors, Kimbal Musk, Co-Founder, The Kitchen Community Interviewer: Jeff Skoll, Founder and Chairman, Participant Media; Founder and Chairman, Skoll Foundation. Join us for a wide-ranging, future-looking conversation about the inspiration, motivation and business processes behind PayPal, Tesla Motors, SpaceX, the Kitchen and the Kitchen Community. We will discover what drives the Musk brothers in their groundbreaking work, whether pioneering online payments, sending the first private rocket to the International Space Station, building electric cars with robots or rolling up their sleeves and partnering with students and educators to build gardens in impoverished communities. With the help of entrepreneur and philanthropist Jeff Skoll, we will uncover the richness of their creative process and discuss how to make a profit, create jobs and contribute to the broader community at the same time. Wait till you see what's around the corner.

Speakers: Eric Cantor, U.S. Congressman and Majority Leader. Harry Reid, U.S. Senator and Majority Leader. Moderator: Michael Milken, Chairman, Milken Institute. Although the media often focus on their policy differences, Democrat Reid and Republican Cantor share areas of agreement and experience. Skilled legislators and compassionate individuals, each has seen a close relative suffer from serious disease, and each is an outspoken supporter of medical research. The grandsons of immigrants, each worked his way up to high office with less-exalted jobs along the way - one as a member of the Capitol Police and the other as a driver for a congressman. Both served as their party's minority whip before election to majority leadership. And leadership is the focus of this panel: What qualities, besides intelligence and drive, inspire the trust and respect of their colleagues? Institute Chairman Mike Milken will explore where they agree and disagree on a range of issues - taxes, debt, entitlements, immigration, education, energy and defense - but will also search for the common thread of leadership that has propelled two remarkable men to national prominence.

Speakers: Nolan Bushnell, Chairman and CEO, Brainrush, Pablos Holman, Hacker and Inventor, Intellectual Ventures Laboratory, Salim Ismail, Founding Executive Director, Singularity University, Marco Tempest, Cyber Illusionist. Moderator: Ken Rutkowski, Host and Co-Founder, "Business Rockstars". This unique panel will explore unusual approaches to overcoming the limitations of available technology, and common approaches to fostering rapid innovation. The speakers, who have used technology to surmount traditional barriers in their fields, will discuss their process and thought framework as well as provide visual examples of how innovative, new technology can be applied in a practical, tangible fashion. Their presentations will focus on recent advances in their fields of research and building upon those for further progress.

Speakers: Jared Diamond, Professor, Department of Geography, University of California, Los Angeles; Pulitzer Prize winner, "Guns, Germs, and Steel". Niall Ferguson, Laurence A. Tisch Professor of History, Harvard University; Senior Fellow, Hoover Institution. James Robinson, David Florence Professor of Government, Harvard University. Moderator: William Bennett, Former U.S. Secretary of Education; Author, "Is College Worth It?" Do nations, like a good drama, have a beginning, middle and end? Why do civilizations succeed, why do they fail? Is it culture, economics, geography, climate, or an interaction among them? Is reinvention and rejuvenation possible? Our panel of celebrated scholars will examine the forces that propel the lifecycles of empires and how they may apply in today's world. Many are asking whether the U.S. is past its peak and China will inevitably reclaim the preeminence it enjoyed centuries ago. More broadly, is the global center of gravity moving from West to East? This event may also yield insights for businesses - they don't live forever either.

Introduction By: Michael Klowden, CEO, Milken Institute. Speakers: Pierre Beaudoin, President and CEO, Bombardier Inc. Scott Minerd, Managing Partner and Global Chief Investment Officer, Guggenheim Partners. Nouriel Roubini, Chairman and Co-Founder, Roubini Global Economics; Professor of Economics and International Business, Stern School of Business, New York University. Geraldine Sundstrom, Partner and Portfolio Manager, Emerging Markets Strategies Master Fund Limited, Brevan Howard. Moderator: Paul Gigot, Editorial Page Editor and Vice President, The Wall Street Journal. As mid-2013 comes into view, the crisis sparked by the international mortgage meltdown is receding into memory, spreading a sense of relief. In the eurozone, the debate is about austerity versus spending, but not dissolution. Meanwhile, living conditions are rising in many parts of the globe as millions join a swelling middle class. The expanding availability of healthcare could have a profound effect as well. Yet some regions continue to struggle. In our annual big-picture look at the world economy, we'll discuss whether China and the U.S. can pull other players along and how the debt bomb can be defused. What are the most potent trends steering capital markets? Which industries are rising, which are fading, and what governments are demonstrating they know how to solve problems? Can the flare-up in the Middle East be contained and give way to democracy and economic growth?

Speakers:David Ho, Scientific Director and CEO, Aaron Diamond AIDS Research Center; Professor, The Rockefeller University. Earvin (Magic) Johnson, Chairman and CEO, Magic Johnson Enterprises; NBA Hall of Famer; Co-Owner, Los Angeles Dodgers. Moderator: Al Michaels, Sportscaster, NBC Sports. Research and treatment, outreach and education - these are the keys to defeating the worldwide menace of AIDS. Basketball great Earvin (Magic) Johnson, still vital 21 years after his HIV diagnosis, and renowned researcher Dr. David Ho will bring the two sides together at this event. The pair will discuss the advances that have turned what was once a lethal infection into something akin to a manageable chronic illness. Magic is sure to share his personal story - his experience living with the condition and his commitment to awareness and testing. The focus, however, will be on the future, including the next wave of treatments, the search for a vaccine and making progress in educating communities that are most vulnerable to the disease.

Speakers: Eric Cantor, U.S. Congressman and Majority Leader. Paul Chew, Senior Vice President, Chief Medical Officer and Head of Global Medical Affairs, Sanofi. Margaret Hamburg, Commissioner, U.S. Food and Drug Administration. Bernard Harris Jr., Founder and President, Harris Foundation; CEO and Managing Director, Vesalius Ventures, Inc. Geoffrey Ling, Deputy Director, Defense Sciences Office, DARPA. Moderator: Michael Milken, Chairman, Milken Institute. America's investment in bioscience, especially through the National Science Foundation and the National Institutes of Health, accelerated for several years beginning in 1998. Today, we're reaping the return on that investment as what once seemed impossible becomes routine. Precision medicine is reducing suffering and deaths, and processes that once took years and cost millions - think sequencing the human genome - get faster and cheaper by the day. But those advances are merely a prologue. We're at the dawn of a scientific revolution that will save, extend and improve the quality of people's lives across the planet while easing the tremendous economic burden of health care. Moreover, bioscience holds promise for solving seemingly intractable global challenges related to energy, access to clean water and sustainable food production. How do we quicken this work? Who will fund it? And how can the participants in the bioscience ecosystem work together more effectively?

Massachusetts is first -- again -- in the Milken Institute's State Technology and Science Index 2012. The index tracks and evaluates every state's tech and science capabilities -- and their success at converting those assets into companies and high-paying jobs. Conducted every two years for the past decade, the index has found Massachusetts performing in first place in every edition. The 2012 State Technology and Science Index looks at 79 unique indicators that are categorized into five major components: research and development inputs, risk capital and entrepreneurial infrastructure, human capital investment, technology and science work force, and technology concentration and dynamism. It is one of the most comprehensive examinations of state technology and science assets ever compiled. The overwhelming trend this year is that technology and science are leading America's economic recovery. Competition at the very top has increased significantly, making it more difficult to break into the top 10. Indeed, the states in the top ten are the same as those in 2010, with only a few changes in rank: The top 10 (with their previous index rankings in 2010): 1. Massachusetts (1) 2. Maryland (2) 3. California (4) 4. Colorado (3) 5. Washington (6) 6. Virginia (8) 7. Utah (5) 8. Delaware (10) 9. Connecticut (9) 10. New Hampshire (7) This index shows the resurgence of the science and tech sectors, and the importance of innovation in state economies. States that are traditionally strong in science and technology have come out of the recession on the backs of those sectors. Movers and shakers: • California is back at number three, though still below its peak in 2002. A comeback in the tech sector played a big role in the Golden State's improved showing. • Virginia leapfrogged two spots to sixth, largely on the strength of its performance in the risk capital category. But Virginia continues to fall in tech concentration and dynamism, a measure of business funding and establishment. • Tennessee was the biggest gainer, jumping from 41st to 35th. The state made major inroads in a number of indicators, most notably, growth in the number of companies receiving venture capital and a huge increase in IPO proceeds. Be sure to check out http://statetechandscience.org/. This site includes a number of features that allow visitors to tailor data according to their particular interests. It also contains an interactive map, videos, and slideshows of the top performing states.

As a destination for direct foreign investment, China is rising - and the U.S. is falling. That's one of the findings in our newest report, The Global Opportunity Index: Attracting Foreign Investment. Foreign direct investment (FDI) has never been more important in catalyzing growth, whether in the developed or developing world. It now accounts for 11 percent of global GDP and more than 80 million jobs worldwide. But which countries are creating the best environments to capture these growth-fuelling investments? Institute researchers have ranked the attractiveness for investment of 98 countries. Sixty-seven variables were assessed across five broad categories: economic fundamentals, regulatory barriers, ease of doing business, regulatory quality, and the rule of law. Hong Kong and Singapore lead the index, with Canada, Switzerland, Australia and five members of the European Union rounding out the top ten. Second from the bottom is Venezuela; as the report notes, the nationalization of foreign firms pursued by the late President Hugo Chavez has made the country a "precarious location for FDI." "The Global Opportunity Index helps identify opportunities for companies contemplating making investments of 'patient' capital," says Keith Savard, senior managing economist and one of the authors of the report. "For policy makers in the host countries, the Index helps illuminate policy changes that can be implemented quickly and often at low cost, in order to make their countries more attractive for FDI." The rank of the United States? Twenty-two - one place behind France. In Europe's economically-troubled periphery, only Ireland remained in the top 10, while Greece plunged below China and many other emerging economies. See the accompanying web tool that provides full access to the rankings, in each of the five categories, with an interactive feature that allows users to customize the rankings, screening for the investment factors that matter most to them. Part of the Milken Institute's Access to Global Capital Initiative, "The Global Opportunity Index" was developed with the support of Liquidnet, an institutional trading network that facilitates trading in 41 markets globally.

When it comes to education, a rising tide really does lift all boats. That's one of the conclusions of this sweeping research report. Ross DeVol, chief research officer and one of the report authors, explains: "Our research makes a compelling case that for America's communities, the returns to investment from higher education have never been greater. We pinpoint the value regional economies gain by adding better-educated workers and show that, as those around you obtain more education, their wages rise – and yours do, too." While it's intuitive that an educated population, good jobs, and prosperity go hand-in-hand, this study proves the strong relationship between education and a region's economic performance. Institute economists created a unique data set linking educational attainment and occupational trends over time and by region. The report and the accompanying data site not only provide a blueprint for policy makers and leaders to boost education: they can help career seekers figure out where they can get the most bang from their educational buck. Key findings of the study include: • Education increases regional prosperity. Adding one year to the average years of schooling among the employed in a metropolitan area is associated with an increase of real GDP per capita of more than ten percent, and an increase in real wages per worker of more than eight percent. • Better educated = bigger benefits. The better educated the worker, the greater the benefit of additional schooling, to both the worker and the region. Add one year of college to a region's workforce, for instance, and GDP per capita jumps 17.4 percent. • Clusters count. In metros with clusters of high-skilled occupations, the share of workers holding at least a master's degree is much higher than in metros without significant clusters, perhaps because of the intense competition for employment. The implications of "A Matter of Degrees" for policy makers, community leaders, and educators are extensive. The findings provide a compelling argument for strategic investments in higher education to enhance regional economic competitiveness – and by extension, U.S. competitiveness overall. The report's key policy recommendations for governments, educational institutions, and businesses include: make higher education more affordable and accessible; increase higher-education graduation rates; and strengthen coordination between industries and higher-education institutions.

The Milken Institute's annual index of Best-Performing Cities indicates that tech is back, especially in the world's best-known hub of innovation. The United States' best-performing metro area is San Jose, the capital of Silicon Valley. Other cities with strong exposure to technological innovation scored high in the new ranking: Austin, Texas (No. 2, up from fourth place); Raleigh, N.C. (No. 3, up from No. 14); the Washington, D.C., metro (No. 5 from No. 17); and Cambridge, Mass. (No. 8 from No. 12).

Institute Chairman Mike Milken will discuss the perception and reality of financial markets around the world and how entrepreneurs, companies and nations create value.

Information and communications technologies have improved living standards around the world. But the increased amount of time that people devote to using computers, watching TV and playing video games- so-called "screen time" -is a significant factor in the global rise of obesity. In Waistlines of the World: the Effect of Information and Communications Technology on Obesity, Institute researchers establish a direct connection between spikes in technology adoption and subsequent increases in obesity rates. The report charts the dramatic rise in obesity in 27 OECD countries. The human and economic cost for the increasing weight of the world is high. Obesity in particular, and being overweight in general , are triggers for disability and many chronic diseases, with obesity being the fifth leading cause of death worldwide. In the United States, the medical-cost burden due to obesity climbed to 9.1 percent of annual medical spending in 2006, from 6.5 percent in 1998. The causes for the obesity bulge are various, but the Milken Institute researchers chart the effect that the worldwide transition toward an information-based economy has had on work habits and lifestyle. The good news? The study also found that in countries with high ICT investment rates, a 1 percent increase in the number of physically active people can prevent a 0.2 percent rise in obesity. The report makes recommendations for strategic solutions, and provides information about a number of programs and policies that governments, corporations, and non-profit groups around the world have pioneered to keep obesity in check.

What metropolitan areas are best prepared to serve their aging populations? We answer that question with our new index, Best Cities for Successful Aging. This data-driven index - the first of its kind - measures and ranks the performance of 359 U.S. metropolitan areas based on 78 indicators that determine the overall quality of life for aging adults. Some may find the results surprising. Among the top cities in large metros are Boston, New York, Washington - and Provo, Utah. Ninety percent of Americans want to age in place. Our goal is to provide vital information to policymakers, the private sector, citizens and the press so they can assess which metropolitan areas have the social structures to accommodate our aging population. "We hope the findings spark national discussion and, at the local level, generate virtuous competition among cities to galvanize improvement in the social structures that serve seniors," said Paul Irving, chief operating officer, senior managing director and leader of the Milken Institute’s Aging Populations Initiative.

Speakers: Joel Burdick, Professor of Mechanical Engineering and Professor of Bioengineering, California Institute of Technology. Nathan Michael, Research Assistant Professor, Department of Mechanical Engineering and Applied Mechanics, University of Pennsylvania. Jay Schnitzer, Director, Defense Sciences Office, Defense Advanced Research Projects Agency. Moderator: Richard Sandler, Executive Vice President, Milken Family Foundation; Partner, Law Offices of Maron & Sandler. Fifty years ago, the Internet would have sounded like science fiction. Today it's not only a staple of daily life - but it's enabled the rate of innovation to accelerate beyond our wildest dreams. What amazing breakthroughs are currently being cooked up in R&D labs? Join us for some sneak previews and live demonstrations that are sure to leave you buzzing.

Speakers: Nicholas Carr, Author, "The Shallows: What the Internet Is Doing to Our Brains". Cathy Davidson, Ruth F. DeVarney Professor of English and John Hope Franklin Humanities Institute Professor of Interdisciplinary Studies, Duke University. Clifford Nass, Thomas M. Storke Professor, Stanford University. Sherry Turkle, Abby Rockefeller Mauze Professor of the Social Studies of Science and Technology, MIT. Moderator: Dennis Kneale, Senior Correspondent, Fox Business Network. Put down the iPad and pay attention: Technology may be rewiring your brain. Scientists say our ability to focus is being undermined by Twitter feeds, smartphones and other digital distractions. Many experts believe excessive use of technology can make users more impatient, impulsive, forgetful and even narcissistic. It may reduce the ability to process information and think deeply and creatively. Distracted drivers have become a menace on the roads. Even worse, tech-obsessed parents spend less quality time with their children, causing not only hurt feelings but potentially stunting a child's vocabulary and development. At the same time, studies show Internet users are more efficient at finding information, and gamers develop better visual acuity. Is the technology that was intended to make us more productive actually dumbing us down? Is its use in the classroom counterproductive? How does it change our culture and society in general?