Stone Professor of International Trade Jeffrey D. Sachs '76 has announced that he will step down as head of the Harvard Institute for International Development (HIID) on July 1. HIID is the subject of a government investigation for alleged misuse of federal funds.

Current Executive Director Richard Pagett will then take over as acting director.

A year ago Sachs became the director of Harvard's newly formed Center for International Development (CID), which is more research-oriented than HIID and its consulting operation. Sachs said heading up HIID and CID, along with his other duties at the University, were spreading him too thin.

In a letter explaining his resignation, Sachs said he would focus on his work with CID. He will also continue as faculty co-chair of one of the Kennedy School of Government's masters degree programs and as chair of a new advisory council on international studies-an initiative of Provost Harvey V. Fineberg '67.

"He just wanted to use [his] talents in the most effective areas," said University spokesperson Joe Wrinn.

U.S. Attorney Donald K. Stern-who in 1996 negotiated a $775,000 settlement with Harvard over improprieties in an unrelated case involving its pharmacy-is currently investigating HIID's work consulting for the Russian government in the early 1990s. During this time, members of the HIID team allegedly used their positions for personal gain.

HIID lost the remaining $14 million of a $57 million grant from the U.S. government that financed the Russian effort.

Sachs has not been implicated in the scandal.

HIID is not currently searching for a new director, according to an informed source, and the Institute's future is unclear.

Pagett said Sachs' resignation is unrelated tothe investigation.

"I think this man who has operated at the levelof four or five people in the past just gottired," Pagett said.

Sachs will be heading the Provost's AdvisoryCommittee on International Studies-convened toassess Harvard's international efforts anddetermine how the University could bettercoordinate its many international centers.

The committee will bring together the directorsof Harvard's international programs, such as theBelfer Center for Science and InternationalAffairs, the CID and the Weatherhead Center forInternational Affairs.

Fineberg appointed a task force-headed byAssistant Provost Dennis F. Thompson-to map out afuture for HIID. Last year, the University calledin the consulting firm Coopers and Lybrand toreview the Institute's managerial structure.

"[Committee members] are looking at theteaching and research missions of the Universityand seeing how the applied work that HIID doesbest fits into the academic work" of theUniversity, Pagett said.

He said the committee will be examining howbest to strengthen the links between theUniversity and HIID by, for example, putting moreHIID professors who have had first-hand experiencein the classroom.

"The thing that makes our teaching unique isthe wealth of practical experience our peoplehave," Pagett said.

Currently HIID is not under the control of oneschool but instead answers to the provost'soffice. Pagett said the committee might examinewhether HIID would be more efficient if itreported to one dean.

In coordination with the other centers, "HIIDwill remain Harvard's preeminent institute forcross-disciplinary field work and policy advisingin developing countries," according to Sachs'letter.

Sachs will continue to work on projects runthrough HIID, as, for example, the principalinvestigator of Ukraine projects.

Sachs announced his resignation to the HIIDcommunity at a May 25 meeting