April 2016 JM /2

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1 April 2016 JM /2 E JOINT MEETING Joint Meeting of the Hundred and Nineteenth Session of the Programme Committee and Hundred and Sixty-first Session of the Finance Committee Rome, 16 May 2016 Proposal of the Republic of Korea for establishment of an FAO World Fisheries University Queries on the substantive content of the document may be addressed to: Mr Arni Mathiesen Assistant Director-Genaral, Fisheries and Aquaculture Department (FI) Tel This document can be accessed using the Quick Response Code on this page; an FAO initiative to minimize its environmental impact and promote greener communications. Other documents can be consulted at

2 JM /2 2 I. Introduction 1. This document presents the proposal from the Republic of Korea (hereinafter referred to as Korea ) for the establishment of a FAO World Fisheries University 1 ( the University ) and FAO s assessment thereof. 2. A concept note prepared by the Ministry of Oceans and Fisheries of the Republic of Korea was transmitted to the Secretariat in June 2013, drawing upon the World Maritime University of the International Maritime Organization ( IMO ) as a model. The initiative has evolved and a full proposal along the lines set out below was received in October II. The proposal presented by the Republic of Korea A. Background and justification 3. In presenting its proposal, Korea has referred to the importance of fish and fishery products for food and nutrition security and has observed that, since the 1970s, fishery resources have been under great pressure, due to over-exploitation and destructive fishing practices. 4. Korea has also referred to the deliberations of the 68 th session of the United Nations General Assembly in December 2013, at which the Member States called for international coordination to enhance fisheries-related capacity-building for developing States, especially Small Island Developing States Korea also recalls that, since 2010, it has supported participation in international graduate programmes in fisheries and aquaculture, implemented jointly by the Korea International Cooperation Agency (KOICA) and the Pukyong National University (PKNU). To date, 117 students have completed the 14-month programme, mainly government officials and researchers from developing countries. The proposal is based on this experience, as well as on Korea s commitment to global sustainable fisheries management. 6. While observing that several universities worldwide offer education in fisheries, aquaculture and related social sciences, Korea considers that a FAO World Fisheries University would fill a niche in this market, as it would be the first academic institution to be solely dedicated to these subjects and would be a truly international institution, where staff and students are likely to come from all parts of the world. B. Objectives 7. According to Korea s proposal, the University would aim to achieve the following objectives: a) enhance global capacity and knowledge at post-graduate levels in fisheries and aquaculture, in line with the Code of Conduct for Responsible Fisheries, with a special focus on students from developing countries; b) serve as a think-tank for fisheries policies, research and innovation in support of the Blue Growth Initiative; c) promote South-South Cooperation; d) create a technical and scientific network, connecting individuals, organizations, institutes and initiatives, and to share expertise and best practices in the field of fisheries and aquaculture. C. Implementation 8. As presented by Korea, the University would deliver post-graduate programmes at Master s and Doctoral (PhD) level, starting with three schools: a School of Aquaculture Technology, a School of Fisheries Resource Management and a School of Fisheries Social Science. The target number of students would be 60 in year one (only at Master s level), increasing to 120 in year ten (including 30 at 1 Information document Proposal to Establish the FAO World Fisheries University, Ministry of Oceans and Fisheries, Republic of Korea, October General Assembly Resolution 68/71, adopted on 9 December 2103.

3 JM /2 3 PhD level). Specialized short-term post-doctoral courses and e-learning programmes would also be developed. The courses would be conducted in the English language, for which preparatory language training would be made available. Students from developing countries would be exempted from paying tuition fees and the University would cover their travel and living expenses. 9. Korea proposes that the University comprise 33 staff members, of which 15 would be in managerial/administrative positions (i.e. 1 Rector, 2 Deans, 3 Directors of the Schools referred to above, and various administrative staff) and 18 academic staff (i.e. 8 full-time professors and 10 lecturers). 10. The University would, according to Korea s proposal, aim to provide a strong research platform, with academic staff being research active in order to attract post-doctoral researchers. It would publish working papers and reports, and publishing in peer reviewed journals would be encouraged. It is Korea s aim that the University would attract research funding from Asia, Europe and North America, for which collaboration with relevant partner universities and institutes would be sought. D. Location 11. Korea has selected Pukyong National University in Busan to host the University. Busan is the largest harbour in Korea and it is home to a number of fisheries-related research institutes, such as the National Fisheries Research and Development Institute, the Korea Fisheries Resources Agency, the Korea Maritime Institute, the Fisheries Monitoring Centre and many others. Korea considers that, being located in a business and research cluster relevant to its functions would allow staff and students of the University to easily interact with other institutions and to use their laboratories, libraries and other facilities, where relevant. Moreover, Korea anticipates that there would be exchanges of guest lecturers and other forms of cooperation, formalized through Memoranda of Understanding. E. Budget and funding 12. Korea has expressed its commitment to make an initial contribution of USD 100 million for the first ten years of operation of the University, comprising USD 67 million in cash and the balance in-kind in the form of buildings, land, staff and other necessary resources. It considers that this will provide for long-term financial sustainability of the university. Korea has also indicated that, while this contribution would cover 100% of its estimate of the budget for the first ten years of operations, including student support, the possibility of revenue generation would be explored with a view to reducing the dependency on Korean funding in the longer-term. In this regard and based on the experience of the World Maritime University under the International Maritime Organization, 3 Korea proposes that the following sources of funding be considered: (i) contributions in cash and/or in kind from other resource partners, (ii) an endowment fund, (iii) tuition fees and (iv) revenue generating activities. F. Governance and management 13. Korea has recommended that the governing body of the University would be a Board of Directors which would have the ultimate authority to take decisions and consist of members, including the Chair, the Rector and a representative of the Director-General of FAO. The Board would be open to all FAO Members. The Rector would be the first representative of the University and bear ultimate authority and responsibility for the University s operation. G. Legal framework 14. It is proposed that the University be established as an international institution pursuant to an agreement between FAO and Korea under Article XV of the FAO Constitution. 4 Korea has indicated 3 30% from host government (Sweden), 30% from endowment fund (Nippon Foundation) and 40% from revenues (tuition fees, research grants and revenue generating activities). 4 Article XV (Agreements between the Organization and Member Nations) 1. The Conference may authorize the Director-General to enter into agreements with Member Nations for the establishment of international institutions dealing with questions relating to food and agriculture.

4 JM /2 4 that it would be recognized as an international foundation with international legal personality and capacity to perform any legal act appropriate for its purpose not beyond the powers granted by the Article XV Agreement. The Article XV Agreement would be open to all FAO Members interested in becoming party to it and in contributing to the operation and funding of the University. III. FAO assessment of the proposal 15. The proposal by Korea concerning the establishment of the University has been subject to an in-house assessment by the various units concerned, as well as a feasibility study by an independent consultant. This has led to the following observations. 16. Korea proposes that the University be established as a permanent institution under Article XV of the FAO Constitution. In its Report accompanying the Guiding Principles with Respect to Agreements under Article XV of the Constitution for the Establishment of International Institutions dealing with questions relating to Food and Agriculture ( the Guiding Principles ), 5 the Council advised inter alia that a fundamental condition for FAO s support and participation in a research or training institution is that that the purpose of the proposed institute is in accordance with the aims and objectives of the Organization and that the technical standards of research to be applied will make a continuing contribution to the development of knowledge in the field in which the institute is to operate Three Article XV Institutions have been established in the history of FAO: the Latin American Forest Research and Training Institute established by an agreement with Venezuela and approved by the 8th Session of the FAO Conference in 1955, 7 the Near East Forest Research Centre and the Near East Forest Rangers School, established by agreements with Syria and approved by the FAO Conference at its 9th Session in None of these three institutions is still operational today under the auspices of FAO, 9 due to significant arrears resulting from the non-payment of the agreed assessed contributions by those Members participating in these institutions. It is noted that all these institutions were regional or subregional and the present proposal is for a new dimension under Article XV, and is unique and far-reaching insofar as it aims at establishing an institution of global reach. 18. The Guiding Principles 10 stipulate that an Article XV institution is to be recognized as an independent foundation with autonomous international legal personality and legal capacity to perform any legal act appropriate to its purpose and which is not beyond the powers granted to it by the agreement. Notwithstanding this, the University would still be perceived as representing FAO and its policies as, under the proposal, the University would carry FAO s name. This would require the University to be operated under the strict policy guidance of FAO to ensure that it functions in a manner consistent with the policies, aims and activities of the Organization. FAO would have to exercise effective control over all the University s activities. The question arises as to whether from the perspective of resources, expertise and experience the Organization is willing and able to exercise such tight control. 2. In pursuance of a policy decision taken by the Conference by a two-thirds majority of the votes cast, the Director-General may negotiate and enter into such agreements with Member Nations subject to the provisions of paragraph 3 below. 3. The signature of such agreements by the Director-General shall be subject to the prior approval of the Conference by a two-thirds majority of the votes cast. The Conference may, in a particular case or cases, delegate the authority of approval to the Council, requiring a vote concurred in by at least two thirds of the membership of the Council. 5 The Guiding Principles form part of the FAO Policy regarding Assistance in Establishing Regional Research and Training Institutes, Section P of the Basic Texts, page Paragraph 4(i) of the FAO Policy. 7 Resolution 37/55. 8 Resolution 49/57. 9 The Latin American Institute continues to exist as a national institute. The two institutions in the Near East now operate under the auspices of the League of Arab States. 10 The Guiding Principles, para. 8.

5 JM / As regards the possibility and desirability of FAO engaging in a University requiring strict policy guidance, it is also considered that such involvement might attract other initiatives for the establishment of similar academic institutions under the Organization s Constitution, specialized in other subject matters covered by its vast mandate. In that case, the precedent of a positive decision with respect to the present Korean proposal will make it more difficult if not impossible from the point of view of impartiality to reject such initiatives and to avoid blurring of FAO s principle role and mandate. 20. The Organization has never had any significant technical or administrative experience in the operation and running of training institutions, except for limited technical initiatives at the local level and in the context of technical projects. A fortiori, the Organization does not have experience in the management and administration of high-level education and research institutions such as Universities. This situation could only change if FAO were to engage in a process of redefinition of its priorities and programmatic orientations, with a view to acquiring recognized and effective technical and managerial expertise in this area. Under current circumstances, there is reason to believe the Organization would not have the ability to provide any useful input into the operation of a University, nor to exercise any meaningful influence or control over the management of the institution, which nevertheless would act in the name of, and commit, FAO and its Members in all its transactions and activities. Indeed, it is considered that the Organization would not be able to have more than a purely nominal involvement in the operation of the University. This is a situation that the Secretariat views with concern and which would not be in line with generally recognized practices within the United Nations system. 21. Having regard to the above, it is also questionable whether the establishment and operation of a University would be consistent with the priorities established in the reviewed Strategic Framework of the Organization. The reviewed Strategic Framework, endorsed by the Conference in 2013, forming the basis for Conference s review of the Organization s performance every two years, establishes the priorities for the period up to The Organization s resources, as well as its current and future activities, are strictly aligned to the achievement of the Strategic Objectives identified in the Framework. In this light, the introduction of a major new activity at this stage, requiring knowledge and experience that the Organization does not currently have, could have a detrimental impact on the ongoing efforts towards meeting the Strategic Objectives. 22. The University is proposed as a budget-neutral initiative, not requiring resources from FAO s Regular Programme of Work and Budget, with the possible exception being provision of technical advice by FAO personnel. Korea has expressed its commitment to make a contribution valued at USD 100 million in cash (i.e. USD 67 million) and in kind (i.e. USD 33 million) to cover what Korea estimates to be 100% of the cost of operation of the University in the first ten years. It is noted that the commitment is based upon Korea s estimate of the costs of the University. Furthermore, the availability of adequate sustainable funding after this ten-year period is not guaranteed by Korea, and it is understood that the Government is unable to make any such commitment at this point. In this context, it is observed that, when the World Maritime University ( WMU ) experienced financial difficulties, the IMO had to enter into interim arrangements, drawing upon its Technical Cooperation Fund, to support the WMU s continued operation Korea has proposed that opportunities for complementary funding from various other sources be explored. While FAO is able to accept and administer funds deriving from a variety of sources, this is governed by precise rules in order to protect the Organization s status as a UN System organization, 11 See Study on the Financial Sustainability of the World Maritime University, IMO, At paragraph 7 of this Study, it is observed that the University depends on the goodwill and charity on what is a narrow handful of contributors. Each year, and without implying any unwillingness of the historical donors, considerable effort is required before there is an acceptable degree of confidence that the funds needed for the following year will be forthcoming. As a result, the University is only able to make short-term plans and long-term and multiyear considerations are not an option. However, as a result of historical experience, the primary risk which needs to be addressed relates to the financing method of the operation of the University, which is very sensitive and with hardly any margins. In fact, the withholding or termination of the funding by a major donor, especially if this takes place at short notice, would have disastrous consequences.

6 JM /2 6 and uphold its impartiality and independence. Although the University would be an entity independent from FAO if established as proposed, FAO would have to be in a position to ensure strict compliance with its rules on these matters. Korea is also proposing that tuition fees could be charged, but there are currently no rules for this in FAO and a policy decision would therefore be required, and a new framework of rules developed. 24. While the proposal gives broad indications concerning the possible purpose and functioning of the University, in addition to the concerns raised above, a range of other complex matters are yet to be further addressed. These matters include the development of a governance framework, regulations and rules governing financial, budgetary and administrative matters, a human resources and staff recruitment policy, policies concerning the selection of the student body, policies governing relations with other public or private institutions, etc. All these policies and rules would have to be properly aligned with the policies and rules of the Organization. It is observed that the FAO Policy on Article XV training and research institutions establishes a somewhat paradoxical situation, viz. the governing body which will establish the policies and rules of the University, must be open to participation of the representatives of all member countries; at the same time, to be credible, the University s research and educational activities must be protected from any form of interference, including by any governmental authorities, and its academic freedom guaranteed. One could imagine situations where academic autonomy and research might conflict with the positions of individual Members on important matters of policy. 25. In addition, the proposal would require further elaboration on aspects of technical substance, such as scope and content of curricula and courses, and institutional arrangements (such as the various schools). FAO would have to have the assurance that the content and delivery of courses was consistent with FAO s standards in relevant technical areas. Further consideration would also be required of the academic credit system to be applied, and the proposed language training. The proposed cooperative networks to be established with other academic and research institutions would also need further consideration, having regard to FAO s policies on partnerships. 26. It is also observed that, as an intergovernmental treaty body associated with the Organization, the University would need to conclude a comprehensive agreement with the host country providing for all the privileges and immunities required to safeguard its international and independent character. It is understood that adoption of special legislation by the National Assembly of Korea would be required. To date, there has been no confirmation that this important pre-condition for the proper functioning of the University can be met. 27. In light of the wide-ranging and complex issues outlined above, the Secretariat strongly considers that the proposal would need to be assessed by the Members in light of the Organization s other activities and core mandate. FAO s past experience with institutions established under Article XV of the Constitution, the possible precedent that would be set and the possible existence of other institutions providing education and training in the same or related fields. 28. Moreover, in light of the fact that important aspects of the proposal are still to be worked out and the implications of close association of FAO with this initiative are unclear, the Secretariat strongly recommends that other options be explored to achieve the objectives of the proposal. 29. In order to achieve greater coherence and avoid duplication of efforts, it would be desirable to consider relying on existing institutions to achieve the proposed goals rather than establishing a new institution. Given the positive cooperation between FAO and the IMO, there is reason to believe that the WMU would favourably consider cooperation with the Government of the Republic of Korea and FAO in providing high-level training on fisheries. This is particularly in light of the 2015 study on the financial sustainability of the WMU which recommended, inter alia, the further expansion at WMU of ocean-related courses, which have been generated throughout the process of preparation and follow up of Rio+20, which would require cooperation mechanisms to be put in place with ocean-related UN system bodies. The latter should be invited to consider how they could make use of WMU s

7 JM /2 7 education and training resources to further their own respective education programmes. 12 The 2015 study concluded that, by introducing an expanded curriculum to cover ocean and maritime policy, WMU would represent an appealing environment for all ocean related UN system bodies to consider the opportunities WMU would offer for the education of students in their respective fields. Ultimately, WMU would evolve into a University which serves the entire UN dealing with the sustainable ocean: in the future one might envisage a virtual World Ocean University. 30. Other institutions within the United Nations System which are specifically mandated to address education and training may also provide suitable platforms for the delivery of courses on fisheries, such as the United Nations University, the United Nations Educational, Scientific and Cultural Organization (UNESCO) and the United Nations Institute for Training and Research (UNITAR). 31. In this regard it is observed that, in many regions, there is a trend towards institutional collaboration and merging of higher education institutions, accompanied by a move away from smaller, highly-specialised, institutions towards larger, more comprehensive, universities. 13 From an academic perspective, this is intended to eliminate duplicative programmes, strengthen synergies in research and teaching, increase academic collaboration (particularly interdisciplinary), and strengthen the position of individual institutions in the international higher education market. This focus on collaboration or merging is also perceived to increase efficiency and effectiveness in the context of administration and the use of financial, infrastructural and other resources. In considering this proposal, the Secretariat considers that this trend towards more comprehensive universities is of relevance. These considerations are not reflected in FAO s Policy which was last reviewed in Consideration could also be given to the establishment, by Korea, of a specialized programme within an existing Korean university outside the framework of FAO. FAO could cooperate with the Government and the university through a partnership supported by a Trust Fund project agreement, defining conditions for the provision of FAO s technical advice and support. FAO could be associated in the delivery of some specific degrees by the university and closer association could be considered at a later stage in light of the outcome of such an initiative. IV. Guidance sought 33. The Joint Meeting is invited to consider the proposal to establish a FAO World Fisheries University, taking into account the above considerations including, inter alia, the Organization s current priorities and activities under its institutional mandate and reviewed Strategic Framework, its lack of expertise and experience in the operation of a permanent academic institution, its restricted capacity to exercise meaningful oversight and control in respect of the administration and operation of such an institution, as well as any other relevant issues related to the sectoral nature and academic autonomy of the proposed university. Should the Joint Meeting consider that the proposal is overly ambitious in light of the above concerns, alternatives that are more limited in scope, but contributing to the underlying objective of the proposal, could be examined. 34. Consideration could be given to alternative options that could meet the objectives of the proposal. For example, a partnership between FAO and the Government of Korea and an existing academic institution (either a Korean university or a UN system entity) could be established. FAO understands that existing UN system educational institutions might be responsive to this proposal. The partnership could aim at delivering an advanced degree in an area of mutual interest in relation to fisheries. 12 Ibid. at paragraph At paragraph , it is observed that the achievement of this strategy, whereby WMU would provide training on ocean-related issues as a shared educational platform for other ocean-related UN system bodies, would drive the re-positioning of WMU to become, in time, a virtual oceans university to the UN. 13 Restructuring of higher and further education institutions of this kind has taken place in, inter alia, Australia, China, Denmark, Finland, Norway, Russia, South Africa, the United Kingdom and the United States of America. See, for example, articles listed in the Mergers in Higher Education: Knowledge Resource published in December 2010 by the Leadership Foundation for Higher Education.

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