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Eleventh General Conference
                                      Of the
                     International Association of Universities,
                                  Durban, South Africa.
                                     August 2000.

            University Governance and the "Stakeholder Society"
                                     Ismail Serageldin
                                     Vice-President,
                                     The World Bank


Introduction.

It is a rare privilege indeed to be with you and I thank you all and of course, Martin Meyerson,
you who have been my teacher. I am honoured to be here. I learned much by your writings,
by your example, and that is what teaching is all about. Ladies and Gentlemen, the
discussion today is about the "Stakeholders".




(Slide 2)

But I don’t think we can discuss "Stakeholders" without understanding something about the
"Stakes", so my comments there I have broken them up with a starting from an unusual
premise, which is Understanding Sustainability.

Why I start from there, you will see in a moment. Next, I will say a few words about the
Changing World, about the Challenges to Universities, and specifically the challenges to
developing countries. I will then turn to some proposed solutions at the macro/sector level
and at the institution level. I will say something about Centres of Excellence, amongst which,
the Library of Alexandria. Indeed. this is why I have resigned all my international posts to go
and help launch the Library of Alexandria which is a Centre of Excellence about to be
created.

Ladies and Gentlemen, let me start, therefore, with our further ado. I am using slides to cover
a lot of material. Every time you see a blue slide like that, you know that I am getting closer to
the end.




(Slide 4)

From Needs to Opportunities.

Simply stated, after the Rio de Janiero Earth Summit Conference of 1992 when we were all
concerned about Sustainable Development, we said development has to be economically
sustainable, socially sustainable and ecologically sustainable. But we really had no way of
linking all of these together. One way which we tried to change that situation, was to change
the notion of sustainability itself from meeting needs towards providing opportunities for the
future.

Revised Definitions.

Our revised interpretation was that sustainability should offer future generations many
opportunities, if not more than we have had ourselves.

Now, this re-definition gives us an operational way of measuring such opportunities. One
pointer is, fundamentally, to give future generations more capital purpose, taking into account
population growth, than we have today. If my son has more capital than I, he has more
opportunities to generate an income and service stream. The question is, of course, what kind
of capital?
(slide 7)

If we go back to the diagram we saw earlier on, we may look at each of the components in
turn,




(slide 8)

Four Types of Capital.

First, we have Man-made Capital, which is the conventional product. As it is included in
Economic Sustainability, the protection of that capital becomes important.
(slide 9)

Then there is Natural Capital. Natural Capital are forests, water and land, and are included
under Environmental Sustainability.




(slide 10)

Within the heading of Social Sustainability, we discovered two dimensions:

first, Human Capital, which is that which is embedded in the individual, health, education and
so on.
(slide 11)

And, second, Social Capital ­ that is, the values that bring people together and the bonds
that make people stand together. In other words, taken together, there are: Man-made
Capital, - Rolling-Stock, Buildings, furniture, equipment. Natural Capital, Human Capital -
embedded in the individual. Social Capital - that brings people together.
These four types of Capital will, predictably, change over time. So it does make sense to
extract a ton of irreplaceable copper from the ground in Zambia and invest in educating little
girls. You do not have to keep everything for ever in each of these forms of Capital.




(slide 12)

Their composition and weighting will change over time.

Now, this change over time we were able to measure. At the World Bank, I was involved in
this exercise, and lo and behold, here are the results. This study was done twice in 1995 for
the whole world, and once again in 1997 at a global level.




(slide 13)

What is most striking is that the bulk of wealth does not come from produced assets. Those
assets amount to about twenty per cent in total, no matter what you do. But, it is mostly in the
Human and Social dimensions where the bulk of wealth resides. Conventional economics,
however, spends its time refining the measurements of that twenty per cent. It ignores
completely the bulk of 80 per cent of the real wealth of nations comes from Human and Social
capital. More recent efforts to redo this calculation in 1997 produced once again the same
results. Even amongst the poorest countries, over sixty per cent of the Wealth of Nations
comes from Human and Social Capital.

The Central Role of the University.

Yet, universities are central, both in the domain of Human Capital, in terms of investment in
human capital and to Social Capital particularly in terms of the socialization function and the
values which the university upholds and transmits. But, I will submit, they are also central in
promoting the attitudes that sustain us in protecting the environment and also such attitudes
as thrift and the ability to manage that enable us to have an impact on this issue. But, even in
the highly direct, rather the indirect impacts, universities have a very central role to play in the
societies concerned, and today, far more than they are being given credit for.

A New Justification.

It is upon this premise, therefore, that I take the position that we should not be defensive
about the role of universities nor how much are being spent on them. Indeed, we should be
challenging countries to do more. Now, in this age, often presented as the age of
instantaneous communications, is perhaps best captured in the cartoon about the New Year.
As the Old Century quits the globe and traditionally makes its greetings to the incoming the
New Century, it says "Can you e-mail it to me?" That certainly captures very well our present
state as we move towards the future.

Towards the Knowledge-based Economy.

We are moving towards the integration of global markets and moving also towards the so-
called ‘knowledge-based’ economy. What does that mean? It means that lands have moved
closer together. And, there is a trillion dollar market for everything. Capital is moving at ever
faster pace 24 hours a day, non-stop. But, the result has been, unfortunately, that the wealthy
are turning on the poor. In fact, the development of this economy is leaving a lot of people
behind, even in the industrialized countries.

Inequities are rising. They are rising to such a degree that it is not just the wealth of
individuals like Bill Gates, but it is the total wealth in the world as a whole that looks really
stunning. Inequities are rising within countries and between countries. The assets of the
world’s three richest people exceed the combined GDP of the poorest forty-eight countries.
The assets of the world’s fifteen wealthiest individuals exceed the GDP of all of Sub-Saharan
Africa with 600 million people. These are the inequities we are talking about. Here is the
challenge - if the universities stand for anything - to turn this technology, which is both
enormously powerful and which, in fact facilitates access, lowers entry barriers to the benefit
of the poor. Still, the impact of globalization we see before us has also brought many good
things in its train. And, Mr Gates, that epitome of proprietory science, is far from being my
hero. I think I would like to mention my hero. It is Tim Burnsely, who developed the World
Wide Web, gave it freely to humanity and, thus generated the true revolution of an open
nature. The Internet, for this reason, poses a new challenge to any institution that deals with
knowledge.

Opportunities and Challenges.

In 1999, 830 million web pages were available. By 2005, we expect 8 billion or more. They
are accessible freely through the Internet for anybody who has a connection and by 2005
probably the cost of connections will drop dramatically.

So, the challenge to universities, as we have heard, is important indeed and impressive, as
we move on in this changing world with its rising inequities, but its enormous opportunities.

The IAU has rightly pointed out the fundamental principles for which the university must
stand. I do not think anybody could improve on that. You have also said that you have a
responsibility to promote through teaching and research the principles of freedom, justice,
human dignity and solidarity. I hope that it will also include, when we talk about justice, such
issues as human rights, women’s rights, which are part of human rights, diversity and all sorts
of better, understanding between peoples.




(slide 22)

You have talked also about through International Co-operation. I have also highlighted that
because I will call on you at the end of this presentation and challenge you on this aspect of
International Co-operation to improve the material and moral assistance to strengthen Higher
Education in general.

The Functions and Values of the University.




(slide 23)

Here, I will summarize some of these functions which deal with the search for truth, the
functions of socialization, of value transmission and of certification that universities perform.
Taking truth first, what does it mean? Agreed, it is a nice slogan. But, in reality, it requires the
promotion of fundamental values that I have referred to here as the values of science, but
which could also be called the values of scholarship.

These, of course, begin with the word truth, because whilst a scientist can be forgiven for
misinterpreting the data, he can never be forgiven for manipulating his logbooks or his data.
The British psychometrician, Burt was struck posthumously from the records for having done
just that.

The second, of course, is honour. The second worst crime that a scientist/scholar can commit
is plagiarism and that too is unacceptable and for which there are other activities done. But, in
science we also value creativity and imagination, and that requires openness and looking
beyond what exists today and this, therefore, comes with that constructive subversion, which
is built into the very heart of scientific enterprise. We advance only by overthrowing the
present status quo. We advance only by overthrowing prevailing theories. That Einstein
overthrew Newton, does not diminish our respect for Newton. This is the most important
difference between proving somebody wrong and building on others. Perhaps it was best said
when Newton was told "You have seen further than most people have ever seen." To which
he replied, "If I have done so, it is because I have stood on the shoulders of giants". This kind
of thinking is important. It means that we must not just respect seniority, but also be open to
new ideas. That involves us, therefore, with a tolerance of engagement. The craziest idea
deserves to be heard provided we can, therefore, arbitrate disputes. I am sure that when
Einstein first started speaking about curved space and time, it sounded very crazy indeed for
most people - so alien did it seem to our common-sense experience.

There is a way of arbitrating disputes by evidence, by debate, by discussion,. This I venture to
say, are not only the values that are required to promote good science and good scientific
research inside the university. There are societal values worth protecting. Can you imagine if
politicians were held to the same standards? Can you imagine if journalists were held to the
same standards? And, at any time, they were caught lying about the fact they would be
ostracized for ever. That would be quite a change.

So, socialization and values of the university constitute, not only to its own community, but to
the whole community, a central part of what it does. But, let us move to the certification
function, which seems to predominate in the discussion and expectations of everybody.

The Obsolescence of the Linear Model.




(slide 25)

I submit that the linear model of education at tertiary level is obsolete. It assumes 12 years of
school, 4 years of university, then a degree or certification, which is a fundamental point in a
person’s life, 40 years of practice and retirement. That is not only impossible in today’s world.
The market says differently. In the super dot net economy that we are now living through, we
find not only that it is not working, but even the best universities have been failing.

Unflattering Portraits.

Here is one of my favourite pictures which I usually show to businessmen. It is the MicroSoft
Corporation 1978, governed not by graduates of elite universities, but by drop-outs. There is
Bill Gates in the corner. I asked the businessmen "Would you have invested in this bunch of
hippies?" Many of them, of course, would not. It is an important point. You have to be open to
ideas. But these people were not formed by the university system. They emerged despite the
university system. They are not the only ones. It is not a matter of money.
(slide 29)

This Graph is a projection from the skills gap between Europe’s demand and the supply
within Europe, of network specialists. As you can, see demand far exceeds supply. The ability
of the universities to produce these kinds of graduates is falling further and further behind. As
a result, we are seeing governments now contracting with India, for example, to send workers
overseas from the elite schools that exist in India, like the Indian Institute of Technology.

Continuing Education.

So, continuing life-long education is required, but that means there are different functions,
different institutions and different partners for each function.




(slide 28)
If it is a matter of producing people for the market place, that is a certain type of certification
function, which you can do and redo. It requires a different kind of institution than a university,
that has the more august and noble goals that we set forth in terms of true socialization,
values and certification,.



The University, I submit, has to be replaced by the idea of nodes, networks, of learning and
experience. In fact, the universities would lie at the very centre of these nodes of learning and
experience. They have the ability to pull together the best that is going on all over the world
and to disseminate it in a way where. Not everything is done within the university campus.
Rather it is done everywhere. Universities, however, are the hub of that learning system.

Developing Countries.

In the developing countries, the universities share the same functions, but they have special
challenges.

The most important of these is not to be dissociated or disconnected from the reality of the
extreme poverty in which they are embedded and with which they have to deal. They also
have five specific challenges: Demographic pressure. Institutional constraints. Knowledge
content. The socializing function of universities. The technology of learning.




Demographic Pressure.

On demographic pressure, not only do we have about a billion youngsters in schools right
now who will be pressing forward to higher education. We have another billion and a half
behind them, all in developing countries. Already, we have many young adults looking for
work.

This picture shows a train going to Bombay carrying young people, many of them drop outs
from High School. Some have even done a year or two of college, looking for work. This is a
reality, which we have to deal with. The sad thing is we know there is a gap between rich and
poor. But what perhaps has not been sufficiently appreciated is that it is growing.
(slide 32)

The growth in income as of 1980, between low income, middle income and high income, and
here they are in 1996,. As you can see, where the low income has moved from 4 to 5 per
cent, the high income has moved from 34 to 58 per cent.

So, the gaps are growing wider and wider. But, not for everybody.




(slide 34)

We find that in East Asia, countries have been able to overcome that difficulty. Countries that
were together in the divide in 1965, like Korea, for example, have caught up with the high
income countries in terms of tertiary enrolment ratios. It is possible, with determined policy, to
change the situation.
(slide 35)

And many of the countries and groups in East Asia have enrolment ratios in technical fields
that exceed the OECD average. This is an important point to remind ourselves you are not
locked out simply because of being in a poor country. You can do more.

Institutional Constraints,

They certainly exist. Most people in developing countries assume that it is money. But it is not
just money. It is true there is chronic under-funding. There is also escalating demand for
higher education. There are poor incentives and few rewards for the teachers in the
universities. There are many under-qualified faculty and the full potential is not realized.




(slide 37)

It is my contention that each of these constraints can be partially overcome by carefully
selecting partners with whom to address that constraint, including funding.
(slide 38)

Partners would include international agencies, national government, community groups,
foundations and the private sector. The different alliances that have to be built bring us back
once again to the functions we are trying to address that will enable us to soar to the full
potential and allow our students to do what they need to do.

Knowledge Content.




(slide 39)

Knowledge content, however, remains problematic. The enormous weakness of the school
system on which the university builds has not been sufficiently mentioned in the last few days.
I would like to mention it here.
We all know that the quality and the foundation you get, especially in science and
mathematics at a young age, makes all the difference later on. Yet, these are the conditions
of schooling in many parts of Africa, where I have had the privilege of working for twelve
years. In many cases, we refer to students being in school, even though there is no furniture,
no equipment, barely a pencil and paper to write with. The quality of education they receive
leaves much to be desired. A certain type of authoritarian rote-learning is being employed in
many cases. Hence, the question becomes: When these students graduate through that
system and arrive at university are they indeed ready for the kind of challenges that we are
talking about? If not, how do universities deal with this situation?

The next challenge, of course, in knowledge content is keeping knowledge up-to-date.




(slide 40)

The emphasis is on specialization, which is on-going, on the needs for liberal education in
order to uphold the values we are talking about; on the need to have responsive institutions;
and to recognize that free information flow benefits all in societies that tend to be authoritarian
and to stifle the free flow of information. We have witnessed a knowledge explosion. The
speed and amount of information available today boggles the mind. It is unbelievable that at
the time of the Renaissance people imagined that one could really grasp all of knowledge and
be expected to read as much in philosophy, as in science, as in literature. Today it is, of
course, impossible.

The Problem of Proprietorial Science

But, more problematic, for us in the South, for us in the developing countries, is the turn
towards propriety science. Increasingly, knowledge is not up there for free. It is patented. And
patenting tends to favour the few.

Here is a big break in this figure. It simply shows that in 1999 the number of patents granted
to one company ­ IBM - exceeded all those granted to 134 countries. IBM alone had
more patents than 134 countries from all Africa. This shows you the degree of concentration
currently taking place.

Take another situation, which I know very well - agricultural research. Here you find this is the
quality of an agricultural research lab in the advanced world and in many of the big
companies, like Monsanto and DuPont and so on. Contrast this with a rice farmer in Asia
2000 years ago and with a rice farmer in Asia today.
Now, if we do not, rise to what is happening with propriety science, I suggest, we are facing
not a world of equity, openness and collaboration, but a world of scientific apartheid where
the "haves" and "have nots" would be replaced by the "knows" and the "know nots. He or she
who has access to universities and information has a role to play in this scenario.




(slide 42)

The universities have an essential role to play in developing countries to counter this trend by
turning those countries into learning societies, able to absorb the best of the knowledge, to
adapt it and to be producers of knowledge themselves.

The Socializing Function.

There is the socializing function of universities. They are not in the business of merely
producing clones like ants to work into some sort of factory in drab and worthless lives. They
are the custodians of past heritage. They are the transmitters of values. They are also
communities of scholars. When we talk so much about being business-like and about
businesses, this is something we must never loose sight of.
(slide 45)

It is a worthwhile endeavour. Whether we do it with pomp and ceremony - as in the past - or
we do it differently, universities interact with the present, embrace the new, invent the future,
within their campuses. They have to cope with the diversity of societies, with the
multiculturalism, that is asserting itself in every country in the world, all of which poses real
challenges to the degree of tolerance that the university must express.

These roles, including gender roles, are changing dramatically in our times. These societies
are coping with difficulty with these changes. Yet, it is on the university campuses that these
changes have, in effect to be forged. So what are the values? They promote the values of
science, scholarship. They are forged by teacher example and student practice. They value
community and human rights, citizenship and participation, as we were remined by Kader
Asmal in his opening address. They cherish the value of traditional liberal education, which I
am re-emphazising today, at a time where everybody is talking about specialization and the
market place. They recognize global values and national values and they deal with
multiculturalism first as a single culture.


The Technology of Learning.

The technology of learning offers many opportunities.
(slide 47)

It has been said more than once. The emergence of the virtual university is one
manifestation. But, many faculty members are scared of the new technologies. They see
them almost like the shark-infested film ‘Jaws’ - about to destroy them,.... There are examples
of success.

BRAC training in Bangladesh is now giving training in computer science. It is an NGO,




(slide 49)

the African Virtual University. Many other examples exist.

Macro Solutions.
Let me talk briefly about macro solutions. At the sector level, what should countries in the
developing world do?

First, we have to recognize, as Elmandjra and others mentioned earlier, that today the
knowledge sector contributes more and is growing faster than the business sector in the
conventional definition of the term in most developed countries.

Now for the desolating part however. I have some complicated graphs, which I have
summarised into this simple number.

If you take the rich countries and compare them to the low income countries, the income per
capita is 42 times greater whilst the research investment is 218 times. It is not proportional.
The gap will to continue to grow, unless the poor income countries recognize that investment
in research and scholarship is a central part of that development.




(slide 53)

This, of course, is reflected in the power of human capital, researchers and engineers per
10,000; 78 in Japan, 69 in the US, 40 in the EU, 6 in China and 0.5 in the non-Asia
developing countries.
(slide 54)

Next we come to who is connected in terms of telephone lines per thousand population in low
income to high income countries.




(slide 55)

Even worse is the situation of computers per 10,000 population: 1 in low-income countries,
1,800 in the OECD. Now, in this set of data, not surprisingly we find who is connected to the
Web.
(slide 56)

The developed world with fifteen per cent of the population, has 88% of those connected to
the Internet whilst the developing world with 85% of the population has but 12% of the
connections to the Internet.

The gaps are there and growing and while we say that potential for equalization is also
present, the potential is far from being realized without a very forceful programme of
affirmative action being undertaken by North and South together.




(slide 57)

E-mails are a dramatic version of this growth. In the US, 260 million pieces of postal mail went
by day and 2.2 billion e-mails on the same day. E-mail volume is growing at ten per cent per
month. This is an impression of what is happening.




(slide 58)

On the sectoral level, the answer to that growing abyss is, I submit, to strengthen the lower
levels of schooling and to support diversification, differentiation and specialization in the
higher education sector. A few large universities, possibly of a multiple campus format for
general liberal education and, in addition, many changing, specialized technical institutions.




(slide 59)

Institutional Level Solutions.

This brings us to what you do at the institutional levels the single university.
Here, I think, the issue turns around university governance, the protection of its
independence, its ability to provide a sense of community and participation. Sense of
community, whether it is done in a very formal and ritualistic way, or in a very informal way, is
not that important.




(slide 61)

What is important is that decision-making really involves others. Administrators and the
faculty must co-operate. They should bury the hatchet, as the old saying goes and recognize
that they are in the same boat and the boat does not sink because of one party only.
Together, they sink or together they swim..

Students should have an important voice and external actors should be invited as partners,
but not if this puts at risk the values of the university. Can we have a smooth transition from
the current rigidities to a flexible future? Yes, if you have leadership at each university.
Leadership is going to be required. It is not going to happen automatically. Technology does
not make it happen.

Institutional flexibility
(slide 62)

Such flexibility would mean working with different "stakeholders" for different programs, using
the new technologies and changing the cost structure of the university. In so doing, one
always ask who pays and who benefits? This is a very enlightening set of questions. Most of
the time, you will find that subsidies are taken from the taxes of the poor and the benefits go
to the rich. When exposed in such class language as I am using right now, people may finally
decide that they should do it differently.

Centres of Excellence.




(slide 63)

What should we do for Centres of Excellence? I believe that we should not be afraid of
attacks on elitism. We should ensure open access on merit. There should be no compromise
on quality. We ensure a basis for sustained funding. The key is going to be the quality of
governance in these Centres of Excellence, not money.

The Bibliotheca Alexandrina.

I will say a word about the Bibliotheca Alexandrina.




(slide 65 about here)

I have had the privilege of being asked to help re-launch it . As we all know, the old Library of
Alexandria was, for six centuries, the centre of world learning. The best in the world came
there: Euclid came to write his elements of Geometry. Eratosthenes, Librarian of Alexandria,
not only calculated the circumference of the earth. He also designed the calendar that Julius
Caesar later adopted as the Julian calendar. Archimedes was there. All of these people went
there. They gave us Museion - the name of Museum, because it was in the Temple of the
Muses, who were present there, where scholars could meet in the courtyard, that the word
museum was first coined?

Complaints and protestations.

I have also recorded complaints. Since all of you are administrators of universities, I have to
share these two complaints with you. In my historical research, I found the first complaint
against spending on research and scholarship goes back to 200 B.C.. Tymon of Athens
writes:

    ‘How can they spend so much money on useless things like bringing bookworms together
    to scribble in the courtyard of the Muses?’

And, for those of you who have posted people overseas as expatriate experts, the first
complaint is recorded in 125 B.C. A bourgeois from Alexandria writes to the Governor:

    ‘How can the King bring people for their supposed expertise and give them these huge
    salaries on which they pay no taxes?’
(slide 66)

A Window on the World and for the World.

So over 2000 years ago, we were there! Today, we want to create a new Library of
Alexandria, which will be a window on Egypt for the world and the region, a window on the
world for Egypt and the region. It will deal with the challenge of the digital age. What does it
mean to design a Library and a Research Centre in the age of the Internet? Looking back to
1980, who could have predicted a billion pages on the Internet by 2000? We look forward to
2020. What will we be doing with the multiplicity of tools that we must have accumulated in
terms of book and internet access etc in the intervening period?




(slide 67)

Above all, to be true to its spirit, the Library has to be a vital centre of intellectual debate, a
space of freedom, a true centre of excellence for dialogue between individuals and between
civilizations. The building is there. It is beautiful. It was a result of a UNESCO sponsored
competition. It is under construction. There is a Library. There is a School of Information
Science and a huge Convention Centre, where you can see the Library, School of Information
Science, the Museum and other planetarium here at the Convention Centre. It is under
construction. It is almost finished. It is rising majestically next to the sea. You are all invited to
make it a true Centre of world learning. Remember that second part of the IAU definition of
the functions and the obligations of international university co-operation. Make it a true
international facility serving the university and scholars of the whole world. Promote the
values of the university in this age of global knowledge. Who knows? Maybe this will be the
site of the next IAU General Conference! You are all invited to that too.




(slide 68)

People ask me, "How do you hope a Centre of Excellence will have an impact?" There are
difficulties in creating centres of excellence: limited funds. What difference will a small amount
make? ‘ To them I say, the difference between Man, - I chose Jacob Bronowski as a
specimen of Man - and a chimpanzee, is less than 2% of DNA. No more! If we can make
centres of excellence, those 2% in the educational system, in the firmament, - like that 2% of
DNA which transformed the world - we in the educational communities must dare to dream.
We must be bold and find the centres of excellence. With that 2% , we can transform the DNA
of higher education and education in societies themselves, and create a better world, where
we reach the so far unattained, include the excluded, think of the forgotten, give hope to the
forlorn and by our actions today, create better tomorrows.

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Universities and the Stakeholder Society

  • 1. Eleventh General Conference Of the International Association of Universities, Durban, South Africa. August 2000. University Governance and the "Stakeholder Society" Ismail Serageldin Vice-President, The World Bank Introduction. It is a rare privilege indeed to be with you and I thank you all and of course, Martin Meyerson, you who have been my teacher. I am honoured to be here. I learned much by your writings, by your example, and that is what teaching is all about. Ladies and Gentlemen, the discussion today is about the "Stakeholders". (Slide 2) But I don’t think we can discuss "Stakeholders" without understanding something about the "Stakes", so my comments there I have broken them up with a starting from an unusual premise, which is Understanding Sustainability. Why I start from there, you will see in a moment. Next, I will say a few words about the Changing World, about the Challenges to Universities, and specifically the challenges to developing countries. I will then turn to some proposed solutions at the macro/sector level and at the institution level. I will say something about Centres of Excellence, amongst which, the Library of Alexandria. Indeed. this is why I have resigned all my international posts to go and help launch the Library of Alexandria which is a Centre of Excellence about to be
  • 2. created. Ladies and Gentlemen, let me start, therefore, with our further ado. I am using slides to cover a lot of material. Every time you see a blue slide like that, you know that I am getting closer to the end. (Slide 4) From Needs to Opportunities. Simply stated, after the Rio de Janiero Earth Summit Conference of 1992 when we were all concerned about Sustainable Development, we said development has to be economically sustainable, socially sustainable and ecologically sustainable. But we really had no way of linking all of these together. One way which we tried to change that situation, was to change the notion of sustainability itself from meeting needs towards providing opportunities for the future. Revised Definitions. Our revised interpretation was that sustainability should offer future generations many opportunities, if not more than we have had ourselves. Now, this re-definition gives us an operational way of measuring such opportunities. One pointer is, fundamentally, to give future generations more capital purpose, taking into account population growth, than we have today. If my son has more capital than I, he has more opportunities to generate an income and service stream. The question is, of course, what kind of capital?
  • 3. (slide 7) If we go back to the diagram we saw earlier on, we may look at each of the components in turn, (slide 8) Four Types of Capital. First, we have Man-made Capital, which is the conventional product. As it is included in Economic Sustainability, the protection of that capital becomes important.
  • 4. (slide 9) Then there is Natural Capital. Natural Capital are forests, water and land, and are included under Environmental Sustainability. (slide 10) Within the heading of Social Sustainability, we discovered two dimensions: first, Human Capital, which is that which is embedded in the individual, health, education and so on.
  • 5. (slide 11) And, second, Social Capital ­ that is, the values that bring people together and the bonds that make people stand together. In other words, taken together, there are: Man-made Capital, - Rolling-Stock, Buildings, furniture, equipment. Natural Capital, Human Capital - embedded in the individual. Social Capital - that brings people together. These four types of Capital will, predictably, change over time. So it does make sense to extract a ton of irreplaceable copper from the ground in Zambia and invest in educating little girls. You do not have to keep everything for ever in each of these forms of Capital. (slide 12) Their composition and weighting will change over time. Now, this change over time we were able to measure. At the World Bank, I was involved in
  • 6. this exercise, and lo and behold, here are the results. This study was done twice in 1995 for the whole world, and once again in 1997 at a global level. (slide 13) What is most striking is that the bulk of wealth does not come from produced assets. Those assets amount to about twenty per cent in total, no matter what you do. But, it is mostly in the Human and Social dimensions where the bulk of wealth resides. Conventional economics, however, spends its time refining the measurements of that twenty per cent. It ignores completely the bulk of 80 per cent of the real wealth of nations comes from Human and Social capital. More recent efforts to redo this calculation in 1997 produced once again the same results. Even amongst the poorest countries, over sixty per cent of the Wealth of Nations comes from Human and Social Capital. The Central Role of the University. Yet, universities are central, both in the domain of Human Capital, in terms of investment in human capital and to Social Capital particularly in terms of the socialization function and the values which the university upholds and transmits. But, I will submit, they are also central in promoting the attitudes that sustain us in protecting the environment and also such attitudes as thrift and the ability to manage that enable us to have an impact on this issue. But, even in the highly direct, rather the indirect impacts, universities have a very central role to play in the societies concerned, and today, far more than they are being given credit for. A New Justification. It is upon this premise, therefore, that I take the position that we should not be defensive about the role of universities nor how much are being spent on them. Indeed, we should be challenging countries to do more. Now, in this age, often presented as the age of instantaneous communications, is perhaps best captured in the cartoon about the New Year. As the Old Century quits the globe and traditionally makes its greetings to the incoming the New Century, it says "Can you e-mail it to me?" That certainly captures very well our present state as we move towards the future. Towards the Knowledge-based Economy. We are moving towards the integration of global markets and moving also towards the so- called ‘knowledge-based’ economy. What does that mean? It means that lands have moved closer together. And, there is a trillion dollar market for everything. Capital is moving at ever
  • 7. faster pace 24 hours a day, non-stop. But, the result has been, unfortunately, that the wealthy are turning on the poor. In fact, the development of this economy is leaving a lot of people behind, even in the industrialized countries. Inequities are rising. They are rising to such a degree that it is not just the wealth of individuals like Bill Gates, but it is the total wealth in the world as a whole that looks really stunning. Inequities are rising within countries and between countries. The assets of the world’s three richest people exceed the combined GDP of the poorest forty-eight countries. The assets of the world’s fifteen wealthiest individuals exceed the GDP of all of Sub-Saharan Africa with 600 million people. These are the inequities we are talking about. Here is the challenge - if the universities stand for anything - to turn this technology, which is both enormously powerful and which, in fact facilitates access, lowers entry barriers to the benefit of the poor. Still, the impact of globalization we see before us has also brought many good things in its train. And, Mr Gates, that epitome of proprietory science, is far from being my hero. I think I would like to mention my hero. It is Tim Burnsely, who developed the World Wide Web, gave it freely to humanity and, thus generated the true revolution of an open nature. The Internet, for this reason, poses a new challenge to any institution that deals with knowledge. Opportunities and Challenges. In 1999, 830 million web pages were available. By 2005, we expect 8 billion or more. They are accessible freely through the Internet for anybody who has a connection and by 2005 probably the cost of connections will drop dramatically. So, the challenge to universities, as we have heard, is important indeed and impressive, as we move on in this changing world with its rising inequities, but its enormous opportunities. The IAU has rightly pointed out the fundamental principles for which the university must stand. I do not think anybody could improve on that. You have also said that you have a responsibility to promote through teaching and research the principles of freedom, justice, human dignity and solidarity. I hope that it will also include, when we talk about justice, such issues as human rights, women’s rights, which are part of human rights, diversity and all sorts of better, understanding between peoples. (slide 22) You have talked also about through International Co-operation. I have also highlighted that because I will call on you at the end of this presentation and challenge you on this aspect of
  • 8. International Co-operation to improve the material and moral assistance to strengthen Higher Education in general. The Functions and Values of the University. (slide 23) Here, I will summarize some of these functions which deal with the search for truth, the functions of socialization, of value transmission and of certification that universities perform. Taking truth first, what does it mean? Agreed, it is a nice slogan. But, in reality, it requires the promotion of fundamental values that I have referred to here as the values of science, but which could also be called the values of scholarship. These, of course, begin with the word truth, because whilst a scientist can be forgiven for misinterpreting the data, he can never be forgiven for manipulating his logbooks or his data. The British psychometrician, Burt was struck posthumously from the records for having done just that. The second, of course, is honour. The second worst crime that a scientist/scholar can commit is plagiarism and that too is unacceptable and for which there are other activities done. But, in science we also value creativity and imagination, and that requires openness and looking beyond what exists today and this, therefore, comes with that constructive subversion, which is built into the very heart of scientific enterprise. We advance only by overthrowing the present status quo. We advance only by overthrowing prevailing theories. That Einstein overthrew Newton, does not diminish our respect for Newton. This is the most important difference between proving somebody wrong and building on others. Perhaps it was best said when Newton was told "You have seen further than most people have ever seen." To which he replied, "If I have done so, it is because I have stood on the shoulders of giants". This kind of thinking is important. It means that we must not just respect seniority, but also be open to new ideas. That involves us, therefore, with a tolerance of engagement. The craziest idea deserves to be heard provided we can, therefore, arbitrate disputes. I am sure that when Einstein first started speaking about curved space and time, it sounded very crazy indeed for most people - so alien did it seem to our common-sense experience. There is a way of arbitrating disputes by evidence, by debate, by discussion,. This I venture to say, are not only the values that are required to promote good science and good scientific research inside the university. There are societal values worth protecting. Can you imagine if politicians were held to the same standards? Can you imagine if journalists were held to the same standards? And, at any time, they were caught lying about the fact they would be
  • 9. ostracized for ever. That would be quite a change. So, socialization and values of the university constitute, not only to its own community, but to the whole community, a central part of what it does. But, let us move to the certification function, which seems to predominate in the discussion and expectations of everybody. The Obsolescence of the Linear Model. (slide 25) I submit that the linear model of education at tertiary level is obsolete. It assumes 12 years of school, 4 years of university, then a degree or certification, which is a fundamental point in a person’s life, 40 years of practice and retirement. That is not only impossible in today’s world. The market says differently. In the super dot net economy that we are now living through, we find not only that it is not working, but even the best universities have been failing. Unflattering Portraits. Here is one of my favourite pictures which I usually show to businessmen. It is the MicroSoft Corporation 1978, governed not by graduates of elite universities, but by drop-outs. There is Bill Gates in the corner. I asked the businessmen "Would you have invested in this bunch of hippies?" Many of them, of course, would not. It is an important point. You have to be open to ideas. But these people were not formed by the university system. They emerged despite the university system. They are not the only ones. It is not a matter of money.
  • 10. (slide 29) This Graph is a projection from the skills gap between Europe’s demand and the supply within Europe, of network specialists. As you can, see demand far exceeds supply. The ability of the universities to produce these kinds of graduates is falling further and further behind. As a result, we are seeing governments now contracting with India, for example, to send workers overseas from the elite schools that exist in India, like the Indian Institute of Technology. Continuing Education. So, continuing life-long education is required, but that means there are different functions, different institutions and different partners for each function. (slide 28)
  • 11. If it is a matter of producing people for the market place, that is a certain type of certification function, which you can do and redo. It requires a different kind of institution than a university, that has the more august and noble goals that we set forth in terms of true socialization, values and certification,. The University, I submit, has to be replaced by the idea of nodes, networks, of learning and experience. In fact, the universities would lie at the very centre of these nodes of learning and experience. They have the ability to pull together the best that is going on all over the world and to disseminate it in a way where. Not everything is done within the university campus. Rather it is done everywhere. Universities, however, are the hub of that learning system. Developing Countries. In the developing countries, the universities share the same functions, but they have special challenges. The most important of these is not to be dissociated or disconnected from the reality of the extreme poverty in which they are embedded and with which they have to deal. They also have five specific challenges: Demographic pressure. Institutional constraints. Knowledge content. The socializing function of universities. The technology of learning. Demographic Pressure. On demographic pressure, not only do we have about a billion youngsters in schools right now who will be pressing forward to higher education. We have another billion and a half behind them, all in developing countries. Already, we have many young adults looking for work. This picture shows a train going to Bombay carrying young people, many of them drop outs from High School. Some have even done a year or two of college, looking for work. This is a reality, which we have to deal with. The sad thing is we know there is a gap between rich and poor. But what perhaps has not been sufficiently appreciated is that it is growing.
  • 12. (slide 32) The growth in income as of 1980, between low income, middle income and high income, and here they are in 1996,. As you can see, where the low income has moved from 4 to 5 per cent, the high income has moved from 34 to 58 per cent. So, the gaps are growing wider and wider. But, not for everybody. (slide 34) We find that in East Asia, countries have been able to overcome that difficulty. Countries that were together in the divide in 1965, like Korea, for example, have caught up with the high income countries in terms of tertiary enrolment ratios. It is possible, with determined policy, to change the situation.
  • 13. (slide 35) And many of the countries and groups in East Asia have enrolment ratios in technical fields that exceed the OECD average. This is an important point to remind ourselves you are not locked out simply because of being in a poor country. You can do more. Institutional Constraints, They certainly exist. Most people in developing countries assume that it is money. But it is not just money. It is true there is chronic under-funding. There is also escalating demand for higher education. There are poor incentives and few rewards for the teachers in the universities. There are many under-qualified faculty and the full potential is not realized. (slide 37) It is my contention that each of these constraints can be partially overcome by carefully selecting partners with whom to address that constraint, including funding.
  • 14. (slide 38) Partners would include international agencies, national government, community groups, foundations and the private sector. The different alliances that have to be built bring us back once again to the functions we are trying to address that will enable us to soar to the full potential and allow our students to do what they need to do. Knowledge Content. (slide 39) Knowledge content, however, remains problematic. The enormous weakness of the school system on which the university builds has not been sufficiently mentioned in the last few days. I would like to mention it here.
  • 15. We all know that the quality and the foundation you get, especially in science and mathematics at a young age, makes all the difference later on. Yet, these are the conditions of schooling in many parts of Africa, where I have had the privilege of working for twelve years. In many cases, we refer to students being in school, even though there is no furniture, no equipment, barely a pencil and paper to write with. The quality of education they receive leaves much to be desired. A certain type of authoritarian rote-learning is being employed in many cases. Hence, the question becomes: When these students graduate through that system and arrive at university are they indeed ready for the kind of challenges that we are talking about? If not, how do universities deal with this situation? The next challenge, of course, in knowledge content is keeping knowledge up-to-date. (slide 40) The emphasis is on specialization, which is on-going, on the needs for liberal education in order to uphold the values we are talking about; on the need to have responsive institutions; and to recognize that free information flow benefits all in societies that tend to be authoritarian and to stifle the free flow of information. We have witnessed a knowledge explosion. The speed and amount of information available today boggles the mind. It is unbelievable that at the time of the Renaissance people imagined that one could really grasp all of knowledge and be expected to read as much in philosophy, as in science, as in literature. Today it is, of course, impossible. The Problem of Proprietorial Science But, more problematic, for us in the South, for us in the developing countries, is the turn towards propriety science. Increasingly, knowledge is not up there for free. It is patented. And patenting tends to favour the few. Here is a big break in this figure. It simply shows that in 1999 the number of patents granted to one company ­ IBM - exceeded all those granted to 134 countries. IBM alone had more patents than 134 countries from all Africa. This shows you the degree of concentration currently taking place. Take another situation, which I know very well - agricultural research. Here you find this is the quality of an agricultural research lab in the advanced world and in many of the big companies, like Monsanto and DuPont and so on. Contrast this with a rice farmer in Asia 2000 years ago and with a rice farmer in Asia today.
  • 16. Now, if we do not, rise to what is happening with propriety science, I suggest, we are facing not a world of equity, openness and collaboration, but a world of scientific apartheid where the "haves" and "have nots" would be replaced by the "knows" and the "know nots. He or she who has access to universities and information has a role to play in this scenario. (slide 42) The universities have an essential role to play in developing countries to counter this trend by turning those countries into learning societies, able to absorb the best of the knowledge, to adapt it and to be producers of knowledge themselves. The Socializing Function. There is the socializing function of universities. They are not in the business of merely producing clones like ants to work into some sort of factory in drab and worthless lives. They are the custodians of past heritage. They are the transmitters of values. They are also communities of scholars. When we talk so much about being business-like and about businesses, this is something we must never loose sight of.
  • 17. (slide 45) It is a worthwhile endeavour. Whether we do it with pomp and ceremony - as in the past - or we do it differently, universities interact with the present, embrace the new, invent the future, within their campuses. They have to cope with the diversity of societies, with the multiculturalism, that is asserting itself in every country in the world, all of which poses real challenges to the degree of tolerance that the university must express. These roles, including gender roles, are changing dramatically in our times. These societies are coping with difficulty with these changes. Yet, it is on the university campuses that these changes have, in effect to be forged. So what are the values? They promote the values of science, scholarship. They are forged by teacher example and student practice. They value community and human rights, citizenship and participation, as we were remined by Kader Asmal in his opening address. They cherish the value of traditional liberal education, which I am re-emphazising today, at a time where everybody is talking about specialization and the market place. They recognize global values and national values and they deal with multiculturalism first as a single culture. The Technology of Learning. The technology of learning offers many opportunities.
  • 18. (slide 47) It has been said more than once. The emergence of the virtual university is one manifestation. But, many faculty members are scared of the new technologies. They see them almost like the shark-infested film ‘Jaws’ - about to destroy them,.... There are examples of success. BRAC training in Bangladesh is now giving training in computer science. It is an NGO, (slide 49) the African Virtual University. Many other examples exist. Macro Solutions.
  • 19. Let me talk briefly about macro solutions. At the sector level, what should countries in the developing world do? First, we have to recognize, as Elmandjra and others mentioned earlier, that today the knowledge sector contributes more and is growing faster than the business sector in the conventional definition of the term in most developed countries. Now for the desolating part however. I have some complicated graphs, which I have summarised into this simple number. If you take the rich countries and compare them to the low income countries, the income per capita is 42 times greater whilst the research investment is 218 times. It is not proportional. The gap will to continue to grow, unless the poor income countries recognize that investment in research and scholarship is a central part of that development. (slide 53) This, of course, is reflected in the power of human capital, researchers and engineers per 10,000; 78 in Japan, 69 in the US, 40 in the EU, 6 in China and 0.5 in the non-Asia developing countries.
  • 20. (slide 54) Next we come to who is connected in terms of telephone lines per thousand population in low income to high income countries. (slide 55) Even worse is the situation of computers per 10,000 population: 1 in low-income countries, 1,800 in the OECD. Now, in this set of data, not surprisingly we find who is connected to the Web.
  • 21. (slide 56) The developed world with fifteen per cent of the population, has 88% of those connected to the Internet whilst the developing world with 85% of the population has but 12% of the connections to the Internet. The gaps are there and growing and while we say that potential for equalization is also present, the potential is far from being realized without a very forceful programme of affirmative action being undertaken by North and South together. (slide 57) E-mails are a dramatic version of this growth. In the US, 260 million pieces of postal mail went by day and 2.2 billion e-mails on the same day. E-mail volume is growing at ten per cent per
  • 22. month. This is an impression of what is happening. (slide 58) On the sectoral level, the answer to that growing abyss is, I submit, to strengthen the lower levels of schooling and to support diversification, differentiation and specialization in the higher education sector. A few large universities, possibly of a multiple campus format for general liberal education and, in addition, many changing, specialized technical institutions. (slide 59) Institutional Level Solutions. This brings us to what you do at the institutional levels the single university.
  • 23. Here, I think, the issue turns around university governance, the protection of its independence, its ability to provide a sense of community and participation. Sense of community, whether it is done in a very formal and ritualistic way, or in a very informal way, is not that important. (slide 61) What is important is that decision-making really involves others. Administrators and the faculty must co-operate. They should bury the hatchet, as the old saying goes and recognize that they are in the same boat and the boat does not sink because of one party only. Together, they sink or together they swim.. Students should have an important voice and external actors should be invited as partners, but not if this puts at risk the values of the university. Can we have a smooth transition from the current rigidities to a flexible future? Yes, if you have leadership at each university. Leadership is going to be required. It is not going to happen automatically. Technology does not make it happen. Institutional flexibility
  • 24. (slide 62) Such flexibility would mean working with different "stakeholders" for different programs, using the new technologies and changing the cost structure of the university. In so doing, one always ask who pays and who benefits? This is a very enlightening set of questions. Most of the time, you will find that subsidies are taken from the taxes of the poor and the benefits go to the rich. When exposed in such class language as I am using right now, people may finally decide that they should do it differently. Centres of Excellence. (slide 63) What should we do for Centres of Excellence? I believe that we should not be afraid of attacks on elitism. We should ensure open access on merit. There should be no compromise
  • 25. on quality. We ensure a basis for sustained funding. The key is going to be the quality of governance in these Centres of Excellence, not money. The Bibliotheca Alexandrina. I will say a word about the Bibliotheca Alexandrina. (slide 65 about here) I have had the privilege of being asked to help re-launch it . As we all know, the old Library of Alexandria was, for six centuries, the centre of world learning. The best in the world came there: Euclid came to write his elements of Geometry. Eratosthenes, Librarian of Alexandria, not only calculated the circumference of the earth. He also designed the calendar that Julius Caesar later adopted as the Julian calendar. Archimedes was there. All of these people went there. They gave us Museion - the name of Museum, because it was in the Temple of the Muses, who were present there, where scholars could meet in the courtyard, that the word museum was first coined? Complaints and protestations. I have also recorded complaints. Since all of you are administrators of universities, I have to share these two complaints with you. In my historical research, I found the first complaint against spending on research and scholarship goes back to 200 B.C.. Tymon of Athens writes: ‘How can they spend so much money on useless things like bringing bookworms together to scribble in the courtyard of the Muses?’ And, for those of you who have posted people overseas as expatriate experts, the first complaint is recorded in 125 B.C. A bourgeois from Alexandria writes to the Governor: ‘How can the King bring people for their supposed expertise and give them these huge salaries on which they pay no taxes?’
  • 26. (slide 66) A Window on the World and for the World. So over 2000 years ago, we were there! Today, we want to create a new Library of Alexandria, which will be a window on Egypt for the world and the region, a window on the world for Egypt and the region. It will deal with the challenge of the digital age. What does it mean to design a Library and a Research Centre in the age of the Internet? Looking back to 1980, who could have predicted a billion pages on the Internet by 2000? We look forward to 2020. What will we be doing with the multiplicity of tools that we must have accumulated in terms of book and internet access etc in the intervening period? (slide 67) Above all, to be true to its spirit, the Library has to be a vital centre of intellectual debate, a
  • 27. space of freedom, a true centre of excellence for dialogue between individuals and between civilizations. The building is there. It is beautiful. It was a result of a UNESCO sponsored competition. It is under construction. There is a Library. There is a School of Information Science and a huge Convention Centre, where you can see the Library, School of Information Science, the Museum and other planetarium here at the Convention Centre. It is under construction. It is almost finished. It is rising majestically next to the sea. You are all invited to make it a true Centre of world learning. Remember that second part of the IAU definition of the functions and the obligations of international university co-operation. Make it a true international facility serving the university and scholars of the whole world. Promote the values of the university in this age of global knowledge. Who knows? Maybe this will be the site of the next IAU General Conference! You are all invited to that too. (slide 68) People ask me, "How do you hope a Centre of Excellence will have an impact?" There are difficulties in creating centres of excellence: limited funds. What difference will a small amount make? ‘ To them I say, the difference between Man, - I chose Jacob Bronowski as a specimen of Man - and a chimpanzee, is less than 2% of DNA. No more! If we can make centres of excellence, those 2% in the educational system, in the firmament, - like that 2% of DNA which transformed the world - we in the educational communities must dare to dream. We must be bold and find the centres of excellence. With that 2% , we can transform the DNA of higher education and education in societies themselves, and create a better world, where we reach the so far unattained, include the excluded, think of the forgotten, give hope to the forlorn and by our actions today, create better tomorrows.