Citibank 2006 Annual Report Download - page 8

The global economy is in a period of transformative change of historic proportions,
including rapid technological development, declining barriers to trade and investment,
the spread of market-based economics, the implementation of education and other
productivity-enhancing policies in China, India, and other emerging market countries,
and, as a consequence, the emergence of China and India not only as potentially large
markets, but also as powerful competitors.
This environment of transformative change creates great opportunities for all parts of the global economy, but
realizing those opportunities requires sound policies to promote productivity, growth, and broad participation
in that growth, and any economy failing to meet those challenges could encounter serious diffi culty.
This dynamic environment also creates great opportunities for private sector economic institutions that act
dynamically in the face of rapid change, that have the size, scope, and quality to effectively meet client needs,
that are truly international in their orientation, and that create an attractive and motivating environment for
strong people. And Citi is positioned very well in all of these respects. On the other hand, just as is true for our
national political systems, all private sector institutions, including Citi, also face great challenges that must be
met in order to realize their potential, and meeting those challenges is at the core of Chuck Prince’s focus and
leadership.
Those challenges include everything relating to providing exceptional opportunity for outstanding people in all
areas; re-engineering projects to meet Citi’s control, processing and other purposes as effectively and effi ciently
as possible; strategic and operational dynamism; fi nding the right balance between investing for the longer-term
and short-term performance; maintaining a culture and processes that will minimize the inevitable occurrence
of regulatory and other similar issues; and much else. All of this is within our reach. And the combination of
Citi’s great strengths and meeting these challenges can create an organization uniquely equipped in the global
economy to effectively address the needs of its clients, provide great opportunities to its people, reward its
shareholders, and contribute to the economies in which it operates.
I also believe that all of us in the Citi community—employees, shareholders and clients—should get involved
in our individual national political systems. Political leaders must make the sound decisions critical for economic
success, even when the politics are diffi cult. And that includes not only focusing on growth, but also on broad
participation in that growth and on an appropriate level of economic security for all. These are mutually rein-
forcing objectives, because market-based economics and trade liberalization will only receive broad public
support when the great preponderance of the people believe they are benefi ting from these policies. Also, poli-
cymakers must recognize that successful, robust private sector institutions, making market-based decisions, are
central to the health of national economies and to the global economy.
The global economy has had strong economic conditions and markets for some years now, despite serious
fi nancial imbalances, geopolitical risks, and multiple other issues. However, investors, businesses, and policymak-
ers must avoid the temptation for complacency that lies in an extended period of economic and market strength,
and recognize not only the opportunities but also the risks in order to operate successfully and to be soundly
positioned for the years ahead.
Citi is focused intensely on addressing its own challenges and on bringing its broad product and geographic
exposure and great strengths to helping our clients navigate successfully in today’s complex environment.
Robert Rubin
Dear Shareholders,
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