:Harvard Institute for International Development

{{Infobox organization

|name = Harvard Institute for International Development

|image = HIID logo.jpg

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|formation = 1974

|dissolved = 2000

|type = Think tank, consultancy

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|location = Cambridge, Massachusetts, US

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|language = English

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|parent_organization = Harvard University

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The Harvard Institute for International Development (HIID) was a think-tank dedicated to helping nations join the global economy, operating between 1974 and 2000. It was a center within Harvard University, United States.{{cite web

|url=http://www.thecrimson.com/article/1996/6/6/harvard-institute-for-international-development-peven/

|work=The Harvard Crimson

|title=Harvard Institute For International Development

|author=Andrew A. Green

|date=June 6, 1996

|accessdate=2011-06-08}}

Foundation and leadership

The Harvard Institute for International Development originated when Harvard University's Center for International Affairs (CFIA) tried to move away from a controversial role in giving advice on topics such as arms control, foreign aid and development.

The CFIA preferred a more academic role of teaching and research.

The Ford Foundation and other organizations involved in aid-giving still wanted Harvard to provide hands-on training for their staff. In 1962 the Development Advisory Service was established for this purpose, associated with the CFIA but independent. It was renamed the HIID in 1974.

In 1980 the economist Arnold Harberger of the Harvard University was selected as head of the institute. The announcement met with protests from students and staff since Harberger had previously advised the Augusto Pinochet military regime in Chile.

He withdrew and Dwight Perkins, an economist and specialist in China, took the job.

After the collapse of the Soviet Union, the economist Jeffrey Sachs became head of the institute.

Development programs

The HIID became the umbrella organization for overseas aid and development programs led by the university but funded by the government or foundations.

The HIID coordinated development assistance, training, and research on Africa, Asia, Central and Eastern Europe, and Latin America. The Institute helped developing nations to achieve economic growth and improve their people's welfare.

The institute provided staff for various development projects. For example, in the late 1970s David Korten headed a project funded by the Ford Foundation to assist in organization and management of national family-planning programs.{{cite book

|url=https://books.google.com/books?id=pj67XXB-OF8C&pg=PT196

|page=196

|title=Agenda for a New Economy: From Phantom Wealth to Real Wealth

|author=David C. Korten

|publisher=Berrett-Koehler Publishers |year=2010

|isbn=978-1-60509-375-8}}

In 1991 the HIID launched a program called WorldTeach that sent college student and graduates to schools in developing countries for a one-year assignment. Countries that had requested volunteers were Costa Rica, Ecuador, Namibia, South Africa, Poland, Thailand and China.{{cite book

|url=https://books.google.com/books?id=SUwOAQAAMAAJ&pg=PP124

|page=124

|title=African Studies Program newsletter

|author=Indiana University, Bloomington. African Studies Program

|publisher=African Studies Association |year=1991}}

Research

File:Harvard Kennedy School Littauer Building.jpg

The HIID undertook many research projects related to international development.

For example, in the early 1980s, the HIID undertook a study of several of Indonesia's national development programs, including grants for village development, schools, family planning and rice yield improvement programs. The programs had been running for some time, but the study uncovered a number of anomalies that were affecting their efficiency.{{cite book

|url=https://books.google.com/books?id=OwBK9TZWHWQC&pg=PA115ff

|title=Applied anthropology in Australasia

|author1=Sandy Toussaint |author2=Jim Taylor |publisher=UWA Publishing |year=1999

|isbn=1-876268-28-X}}

The HIID collaborated with the Women In Development office of USAID in developing the Harvard Analytical Framework, also called the Gender Roles Framework, one of the earliest frameworks for understanding differences between men and women in their participation in the economy. This has great importance in helping policy makers understand the economic case for allocating resources to women as well as men. The framework was described in 1984.{{cite book

|url=https://books.google.com/books?id=WDLpYXhE9_UC&pg=PA238

|pages=238–239

|title=Managing Natural Resources for Development in Africa

|year=2010

|editor1=Washington O. Ochola |editor2=Pascal C. Sanginga |editor3=Isaac Bekalo |publisher=IDRC

|isbn=978-9966-792-09-9}}{{cite web

|url=http://www.ilo.org/public/english/region/asro/mdtmanila/training/unit1/harvrdfw.htm

|title=Unit 1: A conceptual framework for gender analysis and planning

|publisher=International Labour Organization (ILO)

|accessdate=June 9, 2011}}

In 1987, the International Tropical Timber Organization commissioned HIID to prepare a review of current knowledge of multiple-use management of tropical hardwood forests. Of interest was the potential for non-timber products and services that could assist in sustaining the forests. HIID completed the study in 1988 and issued updated versions in 1990 and 1992.{{cite book

|url=https://books.google.com/books?id=_nOZblCaYSYC&pg=PT19

|page=xix

|title=Not by timber alone: economics and ecology for sustaining tropical forests

|author1=Todor Panaĭotov |author2=Peter S. Ashton |publisher=Island Press |year=1992

|isbn=1-55963-195-3}}

Research published in 1989 described the effects of price controls in emerging economies in creating parallel or black markets.{{cite book

|url=https://books.google.com/books?id=R5VMABH3Q4EC&pg=PA31

|page=31

|title=Conversion factors: a discussion of alternate rates and corresponding weights

|author=Michael Hee

|publisher=World Bank Publications |year=1990

|accessdate=June 9, 2011}}

As Ukraine started the transition towards a market economy in the early 1990s, the HIID supported a survey on barter in transition economies.{{cite book

|url=https://archive.org/details/contractsintrade0000mari

|url-access=registration

|page=xvi

|title=Contracts in trade and transition: the resurgence of barter

|author1=Dalia Marin |author2=Monika Schnitzer |publisher=MIT Press |year=2002

|isbn=0-262-13399-7}}

In 1993, the HIID managed an education sector assessment in El Salvador under contract from USAID, the purpose being to obtain reliable information for use in setting a national educational policy.{{cite book

|url=https://books.google.com/books?id=1qh1zVjZh54C&pg=PA151

|page=151

|title=U.S. development aid—an historic first: achievements and failures in the twentieth century

|author=Samuel Hale Butterfield

|publisher=Greenwood Publishing Group |year=2004

|isbn=0-313-31910-3}}

The HIID and the Geneva-based World Economic Forum jointly produced the 1997 Global Competitiveness Report based on a late-1996 survey of 2,827 firms in 53 countries. Among other questions, respondents were asked to say how often they saw evidence of corruption, and the answers were used to rank each country.{{cite book

|url=https://books.google.com/books?id=5kPX6FZE_TsC&pg=PA309

|page=309

|title=Brookings papers on economic activity, Issue 2

|author1=William C. Brainard |author2=George L. Perry |publisher=Brookings Institution Press

|year=2001

|isbn=0-8157-1264-2}}

In mid-1998 the World Economic Forum and HIID assembled a team of experts to determine the causes of the Asian financial crisis and the mechanisms of the crisis, to determine methods of reducing the probability of similar crises in the future and to identify policy changes that would help the affected countries resume growth.{{cite book

|url=https://books.google.com/books?id=1xXqWQ6u2S8C&pg=PA4

|page=4

|title=The Asian financial crisis: lessons for a resilient Asia

|isbn=0-262-69245-7}}

In the late 1990s, USAID sponsored the Equity and Growth through Economic Research (EAGER) project, with the HIID commissioning work in eleven African countries. Both public strategies for growth and trade regimes for growth had both been intensively studied in the past, but resulting reforms had met little success. The focus of the EAGER research was to understand why programs had not been sustained, and what could be done to change that.{{cite book

|url=https://books.google.com/books?id=Kg2IQDHysSYC&pg=PA1

|page=1

|title=Restarting and sustaining economic growth and development in Africa: the case of Kenya

|author1=Mwangi S. Kimenyi |author2=John Mukum Mbaku |author3=Ngure Mwaniki |publisher=Ashgate Publishing, Ltd.

|year=2003

|isbn=0-7546-3472-8}}

The above are just examples of the many research projects undertaken by the Institute.

Russian aid controversy

File:Chubais-AB.jpg, who worked closely with HIID advisers in Russia.]]

With the collapse of the Soviet Union, the United States Agency for International Development (USAID) funded a project by the HIID to help rebuild the Russian economy on the basis of western concepts of ethics, democracy and free markets.

Jeffrey Sachs was said to have "packaged HIID as an AID consultant". USAID were glad to accept help from Harvard, since they lacked expertise for such a project.{{cite book

|url=https://archive.org/details/shadowelitehowwo0000wede

|url-access=registration

|page=[https://archive.org/details/shadowelitehowwo0000wede/page/117 117]

|title=Shadow elite: how the world's new power brokers undermine democracy, government, and the free market

|author=Janine R. Wedel

|publisher=Basic Books |year=2009

|isbn=978-0-465-09106-5}}

The HIID oversaw and guided disbursement of $300 million of US aid to Russia with little oversight by USAID.{{cite book

|url=https://books.google.com/books?id=z8oVf1CZZEYC&pg=PA175

|page=175

|title=Foreign assistance international efforts to aid Russia's transition have had mixed results

|author=GAO

|publisher=DIANE Publishing

|isbn=1-4289-7149-1

|year=2000}}

HIID advisers worked closely with representatives from Russia, notably Anatoly Chubais and his associates.{{cite book

|url=https://books.google.com/books?id=E8e2PyuNvGAC&pg=PA223

|title=Globalisation, poverty and conflict: a critical "development" reader

|author=Max Spoor

|publisher=Springer |year=2004

|isbn=1-4020-2857-1}}

Once USAID accepted help from the HIID, HIID was in a position to recommend U.S. aid policies while being a recipient of that aid. It also put the HIID in a position of power overseeing some of their competitors.Janine R. Wedel. "Shadow Elite", Basic Books, 2009. pages 118-119.

The project, which ran from 1992 to 1997, was headed by economist Andrei Shleifer and lawyer Jonathan Hay.

HIID received $40.4 million in return for its activities in Russia, awarded without the normal competitive bidding approach.

In 1996 the US Congress asked the General Accounting Office to investigate the HIID activities in the Russian aid program after multiple complaints to the congressional office had been made. The initial published GAO report considered the USAID's oversight over Harvard's Russia project "lax." The US government attempted to hold the Harvard players responsible for their clear conflicts of interest and undeniable misuse of government money but action was slow to ensue.Janine R. Wedel. "Shadow Elite", Basic Books, 2009. pages 144-145

The original GAO report was critical, and further funding was withdrawn from HIID on the basis that as a contractor HIID has "abused the trust of the U.S. government by using personal relationships for private gain".{{cite book

|url=https://books.google.com/books?id=a_hvdYQ-8UUC&pg=PA64

|pages=64–65

|title=Contracting for development: the role of for-profit contractors in U.S. foreign development assistance

|author=Rubén Berríos

|publisher=Greenwood Publishing Group |year=2000

|isbn=0-275-96633-X}}

in 1997, the USAID ended a $14 million grant to the Harvard Institute for International Development after Andrei Shleifer was accused of using the institute to help his wife Nancy Zimmerman's investments in Russia.{{cite news|last1=Myers|first1=Steven Lee|title=Harvard Loses A.I.D. Grant For Russians|url=https://www.nytimes.com/1997/05/22/world/harvard-loses-aid-grant-for-russians.html|accessdate=March 12, 2017|work=The New York Times|date=May 22, 1997|quote=In a letter on Tuesday notifying Harvard of the suspension, A.I.D. said its inspector in Moscow had documentary evidence and statements that the two men had used the resources and staff of the program in Moscow to help Mr. Shleifer's wife, Nancy Zimmerman, make significant investments in Russia.}} As part of a settlement, Zimmerman subsequently paid $1.5 million to the USG through one of her companies, Farallon Fixed Income Associates.{{cite news|title=Harvard Agrees to Settlement in Complaint Over Investments|url=https://www.nytimes.com/2005/08/04/education/harvard-agrees-to-settlement-in-complaint-over-investments.html?_r=0|accessdate=March 12, 2017|work=The New York Times|date=August 4, 2005|quote=Farallon Fixed Income Associates, a company owned by Mr. Shleifer's wife, Nancy Zimmerman, has already paid the government $1.5 million as part of the settlement.}}

In September 2000 Shleifer and Hay were accused by the Justice Department of making personal investments in Russia, and therefore failing to act as impartial advisers. The episode became a factor in the dismissal of Larry Summers, who had set up the project as deputy secretary of the treasury under President Bill Clinton.

Dissolution

The President of the institute from 1995, Jeffrey Sachs, resigned in 1999 to form the Center for International Development (CID), which would focus more on academic research than on consulting.

The CID was founded as a joint project of the John F. Kennedy School of Government and the HIID.{{cite book

|url=https://books.google.com/books?id=w6g0s1_Ul_MC&pg=PA66

|page=66

|title=The Harvard Square Book

|author=Herbert F. Vetter

|publisher=Lulu.com |year=2007

|isbn=978-0-615-16082-5}}

A task force was appointed in July 1999 to review the future of the HIID, which in January 2000 concluded that it should be dissolved, with its functions distributed to faculties within the University.{{cite web

|url=http://www.cid.harvard.edu/archive/hiid/index.html

|title=Harvard Institute for International Development (HIID)

|publisher=Harvard University

|accessdate=June 8, 2011}}

Reasons included the Russian conflict of interest scandal, structural problems and financial deficits in 1998 and 1999.

In 2005, the university was required to pay the US government a settlement of $26.5 million for their involvement in the Russian development scandal.Janine R. Wedel. "Shadow Elite", Basic Books, 2009. Page 144.

The CID, housed at the Harvard Kennedy School, is now Harvard's primary center for research on international development.{{cite web

|url = http://www.hks.harvard.edu/centers/cid/about-cid/overview

|title = Center for International Development at Harvard University

|publisher = CID

|accessdate = June 9, 2011

|url-status = dead

|archiveurl = https://web.archive.org/web/20110504234652/http://www.hks.harvard.edu/centers/cid/about-cid/overview

|archivedate = May 4, 2011

}}

Selected publications

The institute began issuing a series of Development Discussion Papers soon after it began operation, and eventually published more than 700 papers by HIID staff members documenting their project experience and research results.

Sub-series covered agriculture and food policy, education, taxation, economic reform and the environment.{{cite web

|url=http://www.cid.harvard.edu/hiid/index.html

|title=The Harvard Institute for International Development

|publisher=Harvard

|accessdate=June 9, 2011}}

The HIID also published some full-length books that covered broader topics. Examples:

{{cite book

|title=Reforming economic systems in developing countries

|author1=Dwight Heald Perkins |author2=Michael Roemer |publisher=Harvard Institute for International Development

|year=1991

|isbn=0-674-75319-4}}

{{cite book

|title=Assisting development in a changing world: the Harvard Institute for International Development, 1980–1995

|editor=Dwight Heald Perkins

|publisher=Harvard Institute for International Development

|year=1997

|isbn=0-674-04997-7}}

{{cite book

|title=The strains of economic growth: labor unrest and social dissatisfaction in Korea

|author1=David L. Lindauer

|author2=Hanʼguk Kaebal Yŏnʼguwŏn

|publisher=Harvard Institute for International Development

|year=1997

|isbn=0-674-83981-1

|url-access=registration

|url=https://archive.org/details/strainsofeconomi00davi

}}

{{cite book

|title=The new missionaries: memoirs of a foreign adviser in less-developed countries

|author=Richard D. Mallon

|publisher=Harvard Institute for International Development

|year=2000

|isbn=0-674-00348-9}}

Notable alumni

Ronald MacLean Abaroa, mayor of La Paz, Bolivia.
Betty Oyella Bigombe, Uganda government minister and consultant to the World Bank.{{cite news

|url=https://www.washingtonpost.com/wp-dyn/content/article/2007/07/10/AR2007071001933_3.html?hpid=artslot

|title=The Woman Behind Uganda's Peace Hopes

|newspaper=Washington Post

|date=July 10, 2007

|accessdate=June 9, 2011}}

Leonor Briones, Treasurer of the Philippines from August 1998 to February 2001.{{cite web

|url=http://investing.businessweek.com/research/stocks/people/person.asp?personId=60175530&ticker=ANI:PM&previousCapId=40986771&previousTitle=AGRINURTURE%20INC

|archive-url=https://web.archive.org/web/20121012081629/http://investing.businessweek.com/research/stocks/people/person.asp?personId=60175530&ticker=ANI:PM&previousCapId=40986771&previousTitle=AGRINURTURE%20INC

|url-status=dead

|archive-date=October 12, 2012

|title=Leonor M. Briones

|work=Bloomberg Business Week

|accessdate=June 9, 2011}}

Richard A. Cash, American global health researcher.
John C. Edmunds, Professor of Finance.{{cite web

|url=http://www3.babson.edu/Academics/faculty/edmunds.cfm

|title=John C. Edmunds

|publisher=Babson College

|accessdate=June 9, 2011}}

John Luke Gallup, American economist
Rachel Glennerster, Executive Director of the Abdul Latif Jameel Poverty Action Lab.{{cite web

|url=http://www.povertyactionlab.org/glennerster

|title=Rachel Glennerster

|publisher=J-Pal

|accessdate=June 9, 2011}}

Mauricio Bailón González, General Director of the General Directorate of International Affairs of the Secretariat of Health of México.
Grace Goodell, professor of International Development.{{cite web

|url = http://www.sais-jhu.edu/faculty/directory/bios/g/goodell.htm

|title = Grace E. Goodell, Ph.D.

|publisher = Johns Hopkins University

|accessdate = June 9, 2011

|url-status = dead

|archiveurl = https://web.archive.org/web/20100730093608/http://www.sais-jhu.edu/faculty/directory/bios/g/goodell.htm

|archivedate = July 30, 2010

}}

Jonathan Hay, on site general director of the HIID program in Russia.Janine R. Wedel. 2001. "Collision and Collusion, New York: St. Martin's Press, Page 144.
Christopher A. Hartwell, President, Center for Social and Economic Research (CASE) in Warsaw.{{cite web

|url=http://www.case-research.eu/en/node/58531

|title=Christopher A. Hartwell, PhD

|publisher=Center for Social and Economic Research

|accessdate=November 7, 2016}}

Catharine Bond Hill, president of Vassar College.{{cite web

|url = http://president.vassar.edu/bio.html

|title = Catharine Bond Hill

|publisher = Vassar

|accessdate = June 9, 2011

|url-status = dead

|archiveurl = https://web.archive.org/web/20110720110220/http://president.vassar.edu/bio.html

|archivedate = July 20, 2011

}}

David Korten, economist, author and political activist.{{cite web

|url=http://livingeconomiesforum.org/author-bio

|title=Author Bio

|author=David Korten

|accessdate=June 9, 2011}}

David Laro, senior judge of the United States Tax Court.{{cite web

|url=http://www.ustaxcourt.gov/judges/laro.htm

|title=Judge David Laro

|date=January 7, 2009

|publisher=US Tax Court

|accessdate=June 9, 2011

|archive-url=https://web.archive.org/web/20110603231319/http://www.ustaxcourt.gov/judges/laro.htm

|archive-date=June 3, 2011

|url-status=dead

}}

Nabiel Makarim, HIID policy analyst from 1986 to 1989, Indonesia's State Minister of the Environment from 2001 to 2004.
Alex Matthiessen, environmentalist.
Geoffrey Maynard, economist British Treasury
Basile Adjou Moumouni, Beninese physician, winner of the 1968 Presidential election, later annulled.
Arunma Oteh, Director General of the Nigerian Security and Exchange Commission.{{cite journal

|url=http://www.devex.com/en/articles/leader-profile-arunma-oteh-vice-president-afdb

|title=Leader Profile: Arunma Oteh, Vice-President, AfDB

|journal=FWU Newsletter

|date=18 July 2008

|accessdate=June 8, 2011}}

Catherine Overholt, co-developer of the Harvard Analytical Framework
Fernando Reimers, professor of International Education.
Sócrates Rizzo, mayor of Monterrey (1989–1991) and governor of Nuevo León (1991–1996)
Jeffrey Sachs, economist, director of the institute 1995–1999.
Soumodip Sarkar, economist and management researcher.
Zéphirin Diabré, opposition political leader in Burkina Faso.
Andrei Shleifer, Russian American economist.
Alejandro Toledo, affiliated researcher 1991 to 1994, later President of Peru.{{cite book