Wednesday, June 15, 2005
Today's Harvard Crimson announces that a settlement at last has been reached in the case. Shleifer and Harvard President Larry Summers are good friends; they worked with Jeffrey Sachs, who at the time of the scandal was the director of HIID. Sachs and Hay are no longer at Harvard; so far, Shleifer remains in the faculty.
The problem created is more than the greed of two people. It is that the validity of voucher privatization (something Shleifer explored academically) for distributing state assets was undermined by their actions. Their usefulness is still in doubt theoretically, but the discussion has been curtailed by the scandal. That's too bad, because some places it seems to have worked.