The Polish government awarded Jeffrey D. Sachs '76, director of the Harvard Institute of International Development (HIID), with its Commanders Cross of the Order of Merit of the Republic of Poland Thursday, for helping the nation establish its post-Communist economy.

Sachs, who is also Stone professor of international trade, helped the Polish government fight inflation and other economic difficulties associated with its changeover from Communist rule during the years 1989 to 1991.

Sachs was honored for his contributions to the Eastern European nation as the U.S. Attorney's office in Boston continues to investigate two former HIID officials for alleged illegal activities in Russia.

Jonathan Hay, the former director of HIID's Moscow office, and Professor of Economics Andrei Shleifer '82 are accused of using their work for HIID in Russia for personal enrichment.

Both Hay and Shleifer were dismissed from the Russia project, but Shleifer continues to serve in the economics department. He is on leave this year.

Sachs has never been accused of any wrongdoing and continues to serve as HIID's director.

Sachs also directs the Center for International Development (CID), a joint initiative between HIID and the Kennedy School of Government launched this past summer.

The award is a national honor given by the president and government of Poland to individuals in recognition of their general contributions to the republic.

At Thursday's ceremony at the Polish Embassy in Washington, D.C., Poland's Deputy Prime Minister and Finance Minister Leszek Balcerowicz presented the award to Sachs and David Lipton, who also served as an economic advisor during those years.

Jeffrey G. Williamson, chair of the economics department, said yesterday that Sachs works with several foreign governments and is frequently honored for his accomplishments.

"Sachs is incredibly visible, and certainly one of our most famous and visible economists in the department," said Williamson, who is Bell professor of economics. "Because of that I'm not surprised he would receive such an award."

Williamson added that Sachs is not the only economics professor who ventures out of Cambridge to advise on economic policy.

In addition to his work in Poland, Sachs has also advised Latin American governments, including those in Argentina, Bolivia, Brazil and Ecuador.

According to Williamson, the honor is a personal one for Sachs, but brings prestige to the department.

"It doesn't make us better teachers. It doesn't make us better researchers," he said. "It makes us more famous."

Sachs was unavailable for comment yesterday.