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Management Troubles Darken HIID's Future

Committee ponders economic group's fate

But already the Institute has tried to make some basic reforms suggested by the audit. HIID's overall operation has been divvied up into four areas, each with a team leader.

Now, operatives report to their team leader, and not the perennially over-worked HIID director.

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"We do not have a management problem here," says Pagett.

Instead, Pagett says, HIID is faced with dilemmas with a life outside the management structure.

"If people are going to do bad things," Pagett says, "having systems in place isn't going to stop them."

The Unraveling

The biggest "bad thing" to happen to HIID in recent years was the messy, public unraveling of its Russian program.

In the early 1990s, the Institute advised the Russian government on its transition to a capitalist economy. Economics Professor Andre Shleifer '82 oversaw the project, which was paid for by a $57 million grant from US AID.

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