Blowing the Whistle on American Corruption in Russia
USAID unearthed a major corruption scandal in Russia in the late 1990s involving Harvard University’s Institute for International Development. Dr. Janet Ballantyne, USAID’s mission director, blew the whistle. In her oral history, Ballantyne discusses the consternation this caused with U.S. Embassy leadership, and the repercussions of her reporting on relationships with key Russian officials.
Throughout the 1990s, after the fall of the Soviet Union, the United States and Russia worked together to implement privatization and other economic reforms. USAID funded the Harvard Institute for International Development (HIID) to help design and implement major economic reforms in the country, including privatization and market reforms. In 1997, however, HIID contractors were found to be using their access to insider information for their own benefit. Harvard later settled with the U.S. government in 2005 and paid what is believed to be the largest settlement ever by a university in a case of this type.
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