Harvard Institute for International Development
Encyclopedia
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
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...

, United States.

Foundation and leadership

The Harvard Institute for International Development originated when Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...

'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
Ford Foundation
The Ford Foundation is a private foundation incorporated in Michigan and based in New York City created to fund programs that were chartered in 1936 by Edsel Ford and Henry Ford....

 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
Arnold Harberger
Arnold C. Harberger is a United States economist. Harberger's Triangle, widely used in welfare economics, is named after him.-Life:...

 of the University of Harvard was selected as head of the institute. The announcement met with protests from students and staff since Harberger had previously advised the Augusto Pinochet
Augusto Pinochet
Augusto José Ramón Pinochet Ugarte, more commonly known as Augusto Pinochet , was a Chilean army general and dictator who assumed power in a coup d'état on 11 September 1973...

 military regime in Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...

.
He withdrew and Dwight Perkins
Dwight H. Perkins (economist)
Dwight Heald Perkins is an American academic, economist, sinologist and professor at Harvard University.-Early life:Perkins earned an undergraduate degree at Cornell University in 1956. After two years military service in the US Navy, Perkins resumed his studies at Harvard. He earned a MA in...

, an economist and specialist in China, took the job.
After the collapse of the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

, the economist Jeffrey Sachs
Jeffrey Sachs
Jeffrey David Sachs is an American economist and Director of The Earth Institute at Columbia University. One of the youngest economics professors in the history of Harvard University, Sachs became known for his role as an adviser to Eastern European and developing country governments in the...

 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
David Korten
David C. Korten is an American economist, author, and former Professor of the Harvard Business School, political activist and prominent critic of corporate globalization, "by training and inclination a student of psychology and behavioral systems". His best-known publication is When Corporations...

 headed a project funded by the Ford Foundation
Ford Foundation
The Ford Foundation is a private foundation incorporated in Michigan and based in New York City created to fund programs that were chartered in 1936 by Edsel Ford and Henry Ford....

 to assist in organization and management of national family-planning programs.
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.

Research

The HIID undertook many research projects related to international development.
For example, in the erly 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.
The HIID collaborated with the Women In Development
Women in Development
Women in Development is an approach to development projects that emerged in the 1970s, calling for treatment of women's issues in development projects...

 office of USAID in developing the Harvard Analytical Framework
Harvard Analytical Framework
The Harvard Analytical Framework, also called the Gender Roles Framework, is one of the earliest frameworks for understanding differences between men and women in their participation in the economy...

, 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.

In 1987 the International Tropical Timber Organization
International Tropical Timber Organization
The International Tropical Timber Organization is an intergovernmental organization that promoted conservation of tropical forest resources and their sustainable management, use and trade.-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.
Research published in 1989 described the effects of price controls in emerging economies in creating parallel or black markets.
As Ukraine started the transition towards a market economy in the early 1990s, the HIID supported a survey on barter in transition economies.

In 1993 the HIID managed an education sector assessment in El Salvador
El Salvador
El Salvador or simply Salvador is the smallest and the most densely populated country in Central America. The country's capital city and largest city is San Salvador; Santa Ana and San Miguel are also important cultural and commercial centers in the country and in all of Central America...

 under contract from USAID, the purpose being to obtain reliable information for use in setting a national educational policy.
The HIID and the Geneva-based World Economic Forum
World Economic Forum
The World Economic Forum is a Swiss non-profit foundation, based in Cologny, Geneva, best known for its annual meeting in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland....

 jointly produced the 1997 Global Competitiveness Report
Global Competitiveness Report
The Global Competitiveness Report is a yearly report published by the World Economic Forum. The first report was released in 1979. The 2011–2012 report covers 142 major and emerging economies....

 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.

In mid-1998 the World Economic Forum
World Economic Forum
The World Economic Forum is a Swiss non-profit foundation, based in Cologny, Geneva, best known for its annual meeting in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland....

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

Russian aid controversy

With the collapse of the Soviet Union, the United States Agency for International Development
United States Agency for International Development
The United States Agency for International Development is the United States federal government agency primarily responsible for administering civilian foreign aid. President John F. Kennedy created USAID in 1961 by executive order to implement development assistance programs in the areas...

 (USAID) funded a project by the HIID to help rebuild the Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

n economy on the basis of western concepts of ethics, democracy and free markets.
Jeffrey Sachs
Jeffrey Sachs
Jeffrey David Sachs is an American economist and Director of The Earth Institute at Columbia University. One of the youngest economics professors in the history of Harvard University, Sachs became known for his role as an adviser to Eastern European and developing country governments in the...

 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.
The HIID oversaw and guided disbursement of $300 million of US aid to Russia with little oversight by USAID.
HIID advisers worked closely with representatives from Russia, notably Anatoly Chubais
Anatoly Chubais
Anatoly Borisovich Chubais is a Russian politician and business manager who was responsible for privatization in Russia as an influential member of Boris Yeltsin's administration. From 1998 to 2008 he was the head of the state owned electrical power monopoly RAO UES. The 2004 survey by...

 and his associates.
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.
The project, which ran from 1992 to 1997, was headed by economist Andrei Shleifer
Andrei Shleifer
Andrei Shleifer is a Russian American economist. From its inauguration in 1992 until it was shut down in 1997, Shleifer served as project director of the Harvard Institute for International Developments Russian aid project...

 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.
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".
In September 2000 Shleifer and Hay were accused by the Justice Department
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...

 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
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...

.

Dissolution

The President of the institute from 1995, Jeffrey Sachs, resigned in 1999 to form the Center for International Development
Center for international development
The Center for International Development at Harvard University is a nonprofit, academic research center located at Harvard University. As Harvard’s primary center for research on international development, CID works to generate shared and sustainable prosperity in developing economies...

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

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

Notable alumni

  • Ronald MacLean Abaroa
    Ronald MacLean Abaroa
    Ronald MacLean Abaroa is a Bolivian politician and leading international expert in anti-corruption programs. MacLean-Abaroa was the first democratically elected mayor of La Paz, Bolivia, and was reelected four times between 1985 and 1991 to this office...

    , mayor of La Paz
    La Paz
    Nuestra Señora de La Paz is the administrative capital of Bolivia, as well as the departmental capital of the La Paz Department, and the second largest city in the country after Santa Cruz de la Sierra...

    , Bolivia.
  • Betty Oyella Bigombe
    Betty Oyella Bigombe
    Betty Oyella Bigombe, also known as Betty Atuku Bigombe , is the current State Minister for Water Resouces in the Uganda Cabinet. She was appointed to that position on 27 May 2011. She is also the elected Member of Parliament , representing Amuru District Women's Constituency...

    , Uganda government minister and consultant to the World Bank
    World Bank
    The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

    .
  • Leonor Briones
    Leonor Briones
    Leonor Magtolis Briones is a professor at the University of the Philippines and a former Presidential Adviser for Social Development with Cabinet Rank at the Office of the President...

    , Treasurer of the Philippines
    Philippines
    The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

     from August 1998 to February 2001.
  • Richard A. Cash
    Richard A. Cash
    Prof. Richard Alan Cash, MD, MPH is an American global health researcher, public health physician, internist, and Prince Mahidol Medal . He is a and Director of the Program on Ethical Issues in International Health in the of the in Boston...

    , American global health researcher.
  • John C. Edmunds
    John C. Edmunds
    John C. Edmunds is Professor of Finance and Research Director of the Institute for Latin American Business Studies at Babson College. Professor Edmunds has been described as an advocate of the financial expansion that reached a maximum in 2008 and then came crashing down...

    , Professor of Finance.
  • John Luke Gallup
    John Luke Gallup
    John Luke Gallup is an American economist.Gallup got his PhD in 1994 at the University of California, Berkeley. From 1998 to 2000 he was a Research Fellow at the Center for International Development at Harvard University. From 2008 to 2009 he was Fulbright Scholar at the Vietnam University of...

    , American economist
  • Rachel Glennerster
    Rachel Glennerster
    Rachel Glennerster is the current Executive Director of the Abdul Latif Jameel Poverty Action Lab at the Massachusetts Institute of Technology. Her current research includes randomized evaluations of community driven development in Sierra Leone, empowerment of adolescent girls in Bangladesh, and...

    , Executive Director of the Abdul Latif Jameel Poverty Action Lab
    Abdul Latif Jameel Poverty Action Lab
    The Abdul Latif Jameel Poverty Action Lab is an academic center located at the Massachusetts Institute of Technology Department of Economics which is dedicated to evaluating the impact of anti-poverty programs through randomized controlled trials similar to those used in medical research...

    .
  • Mauricio Bailón González
    Mauricio Bailón González
    Mauricio Bailón González is the General Director of the General Directorate of International Affairs of the Secretariat of Health of México since April 2004 ....

    , General Director of the General Directorate of International Affairs of the Secretariat of Health of México.
  • Grace Goodell
    Grace Goodell
    Grace Goodell is a professor of International Development at The Johns Hopkins School of Advanced International Studies in Washington, DC. Goodell received her Ph.D. in anthropology from Columbia University, where she studied under Conrad Arensberg...

    , professor of International Development.
  • Jonathan Hay, on site general director of the HIID program in Russia.
  • Catharine Bond Hill
    Catharine Bond Hill
    Catharine "Cappy" Bond Hill is the current president of Vassar College in Poughkeepsie, NY. She began in 2006, after former president Frances D. Fergusson retired. Before coming to Vassar, Hill was provost at Williams College.-Biography:...

    , president of Vassar College
    Vassar College
    Vassar College is a private, coeducational liberal arts college in the town of Poughkeepsie, New York, in the United States. The Vassar campus comprises over and more than 100 buildings, including four National Historic Landmarks, ranging in style from Collegiate Gothic to International,...

    .
  • David Korten
    David Korten
    David C. Korten is an American economist, author, and former Professor of the Harvard Business School, political activist and prominent critic of corporate globalization, "by training and inclination a student of psychology and behavioral systems". His best-known publication is When Corporations...

    , economist, author and political activist.
  • David Laro
    David Laro
    David Laro is a senior judge of the United States Tax Court.Laro graduated from the University of Michigan in 1964, earned a J.D. from the University of Illinois Law School in 1967 and an LL.M. in Taxation from New York University Law School in 1970.He was admitted to Michigan Bar, and United...

    , senior judge of the United States Tax Court
    United States Tax Court
    The United States Tax Court is a federal trial court of record established by Congress under Article I of the U.S. Constitution, section 8 of which provides that the Congress has the power to "constitute Tribunals inferior to the supreme Court"...

    .
  • Nabiel Makarim
    Nabiel Makarim
    Nabiel Makarim was Indonesia's State Minister of the Environment from 2001 to 2004.-Early life:...

    , HIID policy analyst from 1986 to 1989, Indonesia
    Indonesia
    Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

    's State Minister of the Environment from 2001 to 2004.
  • Alex Matthiessen
    Alex Matthiessen
    Alex Matthiessen is an environmentalist and lives in New York City. He is the son of author and naturalist Peter Matthiessen.-Biography:...

    , environmentalist.
  • Basile Adjou Moumouni
    Basile Adjou Moumouni
    Basile Adjou Moumouni is a Beninese physician. He was active in his native country when the west Africa country of Republic of Benin was called Dahomey. Spending almost his entire adult life outside his native country, he worked for the World Health Organization in Brazzaville. In the 1968...

    , Beninese physician, winner of the 1968 Presidential election, later annulled.
  • Arunma Oteh
    Arunma Oteh
    Arunma Oteh became Director General of the Securities and Exchange Commission in Nigeria in January 2010. In this position she is responsible for regulation of Nigeria's capital markets, including the Nigerian Stock Exchange.-Background:...

    , Director General of the Nigerian Security and Exchange Commission.
  • Catherine Overholt
    Catherine Overholt
    Catherine A. Overholt is a health economist who has assisted many development agencies with gender issues, health economics, case writing and case method training...

    , co-developer of the Harvard Analytical Framework
  • Fernando Reimers
    Fernando Reimers
    Fernando M. Reimers is the Ford Foundation Professor of International Education at the Harvard Graduate School of Education. He is also the Director of Global Education and of the International Education Policy Program at the Harvard Graduate School of Education.Reimers is a fellow of the...

    , professor of International Education.
  • Sócrates Rizzo
    Sócrates Rizzo
    Sócrates Cuauhtémoc Rizzo García is a Mexican politician affiliated to the Institutional Revolutionary Party . He is a former federal Congressman , mayor of Monterrey and former governor of Nuevo León Rizzo García is the son of Neftalí Rizzo Rizzo and Jovita García Decanini...

    , mayor of Monterrey
    Monterrey
    Monterrey , is the capital city of the northeastern state of Nuevo León in the country of Mexico. The city is anchor to the third-largest metropolitan area in Mexico and is ranked as the ninth-largest city in the nation. Monterrey serves as a commercial center in the north of the country and is the...

     (1989–1991) and governor of Nuevo León
    Nuevo León
    Nuevo León It is located in Northeastern Mexico. It is bordered by the states of Tamaulipas to the north and east, San Luis Potosí to the south, and Coahuila to the west. To the north, Nuevo León has a 15 kilometer stretch of the U.S.-Mexico border adjacent to the U.S...

     (1991–1996)
  • Jeffrey Sachs
    Jeffrey Sachs
    Jeffrey David Sachs is an American economist and Director of The Earth Institute at Columbia University. One of the youngest economics professors in the history of Harvard University, Sachs became known for his role as an adviser to Eastern European and developing country governments in the...

    , economist, director of the institute 1995–1999.
  • Soumodip Sarkar
    Soumodip Sarkar
    Soumodip Sarkar is a noted economist and management researcher. He is an associate professor at the Department of Management, University of Évora, Portugal, where he is the Dean of the Doctoral School...

    , economist and management researcher.
  • Andrei Shleifer
    Andrei Shleifer
    Andrei Shleifer is a Russian American economist. From its inauguration in 1992 until it was shut down in 1997, Shleifer served as project director of the Harvard Institute for International Developments Russian aid project...

    , Russian American economist.
  • Alejandro Toledo
    Alejandro Toledo
    Alejandro Celestino Toledo Manrique is a politician who was President of Peru from 2001 to 2006. He was elected in April 2001, defeating former President Alan García...

    , affiliated researcher 1991 to 1994, later President of Peru.
  • Clay G Wescott, American consultant and anti-corruption specialist.
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