Sachs Quits As Economic Consultant To Yeltsin

Stone Professor of International Trade Jeffrey D. Sachs withdrew Friday from his position as economic advisor to Russia.

Sachs, a chief proponent of "shock therapy," an economic strategy that calls for the rapid transition of former communist countries from planned to market economics, had served as an advisor to Russian President Boris Yeltsin since December 1991.

Sachs said his resignation was prompted by the January 20 appointment of two strident anti-reformers to Yeltsin's cabinet, who replaced Sachs' key allies within the cabinet, Vice Premier Yegor Gaidar and Finance Minister Boris Fyodorov.

"I couldn't continue to work with the new government," he said in an interview yesterday.

He placed some of the blame for the reformers' defeat on Western policy towards Russia's reform efforts. "Western assistance was promised but never came...The reformers never got the backing they needed," he said.

In articles in The New York Times and The New Republic, Sachs expanded his criticism of the West, specifically attacking the International Monetary Fund for its economic policies regarding Russia.

He called for the resignation of IMF Managing Director Michel Camdessus.

Sachs warned that economic troubles in Russia could create a political climate ripe for a dictatorship.

Despite his resignation, Sachs said he is still a firm believer in "shock therapy." He cited Poland and Estonia as countries where the strategy has been successfully applied with positive results. But he said that due to political strife in Russia, there has been little reform and "there certainly hasn't been shock therapy."

Sachs said his role at Harvard will not be affected by the resignation. He will continue to work with the Harvard Institute for International Development and will teach four courses this spring.