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Report Suggests Troubled HIID Should Dissolve

University will likely accept recommendation

A Troubled Past

HIID was begun as a group of faculty charged with advising foreign governments in the early 1960s.

Now, the institute has 20 overseas offices and 25 more international programs headquartered in Cambridge. Its annual budget is over $34 million.

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In recent years, allegations of mismanagement and a scandal involving possible insider trading by HIID personnel in Russia have brought the institute embarrassing media attention.

In February 1999, the federal government launched an investigation into allegations that two HIID employees stationed in Russia in 1997 misused government grant money.

And in June, then-Institute Director and Stone Professor of International Trade Jeffrey D. Sachs '76 stepped down from his post, saying he wanted to spend more time on his other duties, including the leadership of the recently created and more research-oriented Center for International Development (CID). Pagett has served as interim director since Sachs' departure.

University officials have been adamant in saying that internal and national developments at HIID played no role in the committee's recommendation to dissolve the institute.

Thompson added that HIID's managerial issues are "not unusually problematic."

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