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Tuesday, January 23, 2007
Professor Shleifer: Still Paying Dividends for Harvard 'Reactions to Putin’s regime vary, but they form a certain pattern, falling within a given range. At one end of the spectrum, there is virtually unconditional endorsement of the Russia that is now emerging. The leading exponent of this view, the economist Andrei Shleifer, helped – not coincidentally – to lay the foundations of the new order, working in Moscow as one of the drafters of Yeltsin’s privatisations, and beneficiaries of the proceeds. Project director of the Harvard Institute for International Development, financed by the US government to promote ‘economic reform in support of open markets’ in the former USSR, he was prosecuted by the Justice Department on his return to the US for criminal conduct – cashing in on his insider position for investment purposes. Harvard had to pay $26.5 million, and Shleifer and his wife $3.5 million to settle the charges against him. This was the scandal that led to the downfall of his patron Larry Summers, who as Clinton’s deputy secretary of the Treasury set up the Harvard project, and was then implicated in the pay-out, as president of the university.' Perry Anderson, London Review of Books |