3 Financial Requirements and Resources for the Future AKU
     
  3.2.2 IED and Education in AKUs
     
    Future In Section VII C.2 of this report we affirmed that AKU should have a continuing concern with improvement of education at all levels in the developing and Muslim worlds, and we viewed the Institute for Educational Development as a strong start in that mission. The funding of IED through 1999 [assuming there was one year slippage in the start] will require $ 13 million, about 85% of which has been committed by international agencies. Thus, after seven years, IED must be re-financed if it is to continue. One possible future policy for AKU would be to assess the chances of IED's work being carried on by others and elsewhere. If IED's success has made these chances good, AKU might then conclude it had served its mission in creating a good model and turn to other ventures in education. We do not think this a likely outcome and assume that IED will continue in some form in AKU's future in education.
     
    We have envisaged the possibility that IED will continue, into the first decades of the next century, in somewhat the pattern in which it has begun, with Professional Development Centres continuing as a major feature of the programme. We write Centres in the plural because we expect the centre- at the Sultan Mohamed Shah School and the projected one in the Northern Areas to continue under AKU-IED responsibility. We have already heard of another being projected in Pakistan and of the possibility that one might be established in East Africa. We doubt that IED should go beyond direct responsibility for more than three PDCs, though we recognise there will have to be others if a wide impact on educational quality is to be achieved through this means. Expanding IED's efforts even to three PDCs would involve financial and administrative burdens that might threaten the pursuit of other interests. As we have described, IED also is moving beyond its initial focus on teacher training and is being importuned to take on numerous responsibilities. We argued in Section VII above that response to these opportunities might make IED into a valuable and productive source of educational development in the developing and Muslim worlds. But we also said that it should be well paid for the services it undertakes and that it will have to balance the rewards of new commitments against its responsibilities for research and high quality instruction. The potential for international support demonstrated in the establishment of IED may be somewhat weakened in the future but is unlikely to wither seriously. IED may thus grow well beyond the minimal size for its worthwhile continuation, in happy demonstration of its pertinence and value. We do think this is a serious possibility. It would have the usual hazards faced by academically based centres of becoming a mere "job shop" without independent and continuing intellectual agendas of its own. It will take vigour and fortitude for the leadership of the future IED to exploit this possibility, but it could make AKU a source of creative services to Third World education, while reducing IED's demands on general university funds.
     
   

We have not tried to confine AKU's future in education to a single possible pattern. While IED started in a posture hostile to the development of a School or Faculty of Education in AKU, we do not exclude this latter possibility. We have argued, however, that such a School or Faculty ought not to become a large-scale provider of education for beginning teachers and it should, like other components of AKU, have serious intellectual objectives pursued in a research programme. There are already evidences of mutual desires on the part of IED and the Faculty of Health Sciences staff for closer relations and we should suppose that in the coming years these relations will grow and the establishment of an Institute of Human Development will further strengthen them. Except through contracting and consulting income, education is not a field in which lucrative sources of income may be expected. We thus think that the development of a worthwhile Faculty of Education would be financially a more demanding undertaking than continuation of the IED pattern, especially since the Commission has been concerned throughout its deliberations that strong intellectual purposes be maintained in IED or whatever form the educational commitment of AKU may take.

     
    Given the uncertainties in the evolution of AKU's commitments to the field of education, it is not easy to estimate the basic financing it would have to have to assure a worthwhile enterprise. In the closing year of its present funding IED will have a $ 2.9 million core budget (net of IDRC and other possible funding). While the pattern of future staffing and overseas relations will certainly differ, we believe a somewhat larger annual budget of, say, $ 4 million per annum should suffice, if properly deployed, to undergird an AKU programme in education, which might, of course, grow considerably larger as the years pass. Some endowment or other source of relatively freely disposable income will be necessary to the growth of this part of AKU. The idea of building a substantial endowment for IED has been mentioned in our discussion. We think it too early to make such a specific commitment to an as-yet very young pattern for AKU's work in education. But we do believe that some endowment for education in AKU will assure constancy of purpose and help the University avoid being excessively driven by external funders' desires and preferences.
     
  3.2.3 An Institute of Islamic Civilisations
     
    We have given high priority to a component of AKU that would carry forward its mission as a Muslim university. We have proposed an Institute of Islamic Civilisations, which despite its importance would not be a large part of AKU. In its initial period, we conceive that a small group of perhaps five senior and junior scholars, with appropriate support staff, and funds for fellowships and visiting scholars would serve to launch this undertaking. While the Institute would have important educational functions from the start through its writings and consultations, and as a high-quality research centre would attract and train specialists in its field, we do not anticipate that it would directly teach large numbers of students. (We anticipate that instruction on Islamic Civilisations within AKU might ultimately fall mostly in the Faculty or College of Arts and Sciences we are proposing.) In its full development some years hence, we conceive that the Institute might be staffed by a minimum of five seniors and five juniors, plus visiting researchers and professors, and graduate fellows.
     
    The location of this Institute in Europe means that larger costs would be entailed for personnel, space, and other needs. The estimates we have made run about $ 3.5 million per annum in recurrent costs, assuming the use of rented space. In the initial start-up period, we estimate annual costs of $ 1.7 to $ 2 million.
     
    The interest of foundations in better 3.2.5 under-standing of Islamic movements and the tensions that have arisen over them gives us strong reason to think that this component of AKU could attract important support in its initial years and perhaps for much longer. It is also possible that collaboration with other universities and research centres may provide significant help in the mounting of symposia and other activities that will be needed to give direction and prominence to AKU's effort. These sources of support will however leave a substantial dependence on other AKU resources, from endowment income or consumable gifts.
     
  3.2.4 The Institute of Human Development
     
    The Institute of Human Development we have proposed would have close relations with the Faculty of Health Sciences and the Institute for Educational Development of AKU. While the staff of these parts of AKU are now heavily engaged in other duties, we anticipate in future that then will be able to contribute to this Institute's work. There will still, however, be significant additions to staff needed. We have made estimates on the assumptions that as many as six senior and severi junior staff will be needed (perhaps half expatriate and half local). With provision for other costs and for the graduate student and networking linkage, we anticipatc core budgets in the range of $ 2 to $ 3 million per annum. Engagement in the experimental intervention programmes we anticipate could considerably increase the budget as we hope and expect they will; but we also assume that theN would be only undertaken with special grant funds over and above the core budget.
     
    The chances of securing some of the needed funding for this Institute front international agencies appears to us very promising. It would be engaged in activities 44 the sort that have attracted international funding for Community Health Sciences and IED. Its concern with the effects of childhood nurturauce and experience links it to one of the strongest and most stable interests of international aid programmes in recent decades. We may also hope that the originality of this approach to the problems of developing countries may attract donors. There will, nonetheless, be some fraction of the core budget - probably more than half that will require more than project funding.
     
  3.2.5 The Institute of Economic Growth and Society
     
    The Institute of Economic Growth and Society could begin as a small unit of AKU, having only two to four senior and half a dozen junior staff to start. It would need to grow larger to be a strong and significant centre for creative work, and in estimating its future core budgets we have assumed six senior and seven junior staff,,with more than half the seniors on expatriate terms. We would, of course, hope and expect that the Institute in a few years time would have attracted attention and funding that would enable it to mount consulting and training programmes that would bring it to a scale much larger than the core budget of S 2 to $ 3 million we estimate it will need (without provision for capital costs)
     
    Income for this component of AKU may come from : (1) contracts for research or planning exercises; (2) fees for consultations; (3) research Uff ants; (4) fees for training programmes. We would expect that, if the AKU Institute achieves the quality and distinction it should, these sources of income might in the course of a few years become a very substantial fraction of the total costs. The experience of the Harvard Institute for International Development indicates that an academically based organisation in these fields can be largely self-supporting. Even it, however, had difficulty establishing a satisfactory record of academic distinction and contribution. One may thus expect that the AKU Institute on Economic Growth and Society will need a significant basis of support beyond what it recovers from fees and direct grants. At the start, full support from University funds is likely to be necessary, though imaginative designs may attract donors to share in the initial build-up.
     
  3.2.6 The Institute of Planning and Management for Human Settlements
     
    As we explained in Section VII C.6, we believe that AKU should aim to extend the education and research it otherwise will provide on architecture and development to include an Institute of Planning and Management of Human Settlements. Given the heavy demands other new proposed components will impose on AKU's energies and resources in the next decade, we have not seen this Institute as an early development. We think its initiation may be postponed for ten years or so, but should come at some time within the twenty or thirty year period we have been contemplating.
     
    Deferment of the start for this Institute has kept us from detailed consideration of the agenda and staffing it should have. Assuming, however, that it might, like others we are proposing, be effective at a relatively modest size, we have thought it might also have a core budget of $ 2 to $ 3 million per annum.

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