CID had three “pillars”—research, teaching and outreach—Sachs says. While research was the main focus of the center, it also depended on the other two.

“CID was and in my strong view should be in the activity of advising governments, multilateral agencies and other official institutions on economic development...and other related problems,” Sachs writes in an e-mail.

Should CID abandon this philosophy, Sachs says, “I would certainly invite students interested in the interface of research and advising, outreach [and] fieldwork to consider the activities of the Earth Institute at Columbia University.”

But Rodrik says that starting from scratch without Sachs isn’t such a bad thing.

“Sometime being an institution without a charismatic leader can be helpful,” Rodrik says.

Figuring the Finances

While it might be desirable to start over, financial realities give CID no choice.

The state of the center’s long-term financial prospects at the time of Sachs’ departure is a heavily debated topic. But how the center stands now is a fact.

CID is projected to run a $2 million deficit this fiscal year.

Much of that deficit—more than $1 million—comes from termination costs associated with Sachs’ departure. Only four of the 23 projects active at CID a year ago remain.

Sachs took several projects with him to Columbia, and offered to continue work on several that remained at Harvard. According to both Sachs and Rodrik, he was told Harvard wasn’t interested in such an arrangement.

This year the center is decapitalizing—spending the principle of its endowment—to cover the shortfall. But without any significant streams of income remaining, the center needs help to rebuild and continue.

While the steering committee’s plan is addressed to Joseph S. Nye, dean of the Kennedy School of Government, it is aimed at the University’s central administration, from which CID hopes to obtain a new lease on life.

At Harvard, where a system of financial autonomy prevails, CID must petition the president and provost for such an unusual bail out. According to Rodrik, the committee’s plan seeks temporary seed money to get CID back on its feet.

If Summers is satisfied with the plan’s academic direction, Rodrik says, the central administration would cover CID’s budget for a number of years, until new streams of funds could begin and the endowment could be increased by substantial fundraising.