HBS Professor Cuts Off Thailand Talks

By DAVID H. GELLIS

CRIMSON STAFF WRITER

Michael E. Porter, Lawrence University professor and director of the Harvard’s Center for Strategy and Competitiveness, cut off negotiations last week with the Thai government on a proposed study of the country’s stagnant economy. Porter cited misinformation and partisan bickering as a barrier to the study.

According to a statement Porter released last Thursday, informal discussions on the study had been “indefinitely suspended.”

Contrary to early press reports, Porter said he had never committed to the study.

Earlier this month, The Bangkok Post and other regional media outlets had reported—citing government sources— that Porter would be hired to complete a “competitiveness” study of the Thai economy for a fee of roughly $1 million.

At the time, a spokesperson for Porter disputed the reports and the $1 million figure.

Last week, Thai Prime Minister Thaksin Shinawatra appeared to corroborate the report, saying that his government planned to pay Porter $1 million for services—including a visit to Thailand.

Opposition politicians and some academics railed against the plan, arguing that it was too expensive. They also said Porter’s free market philosophy clashed with the Thai government’s more protective and protectionist desires.

It was not until Porter withdrew from the talks last Thursday that Porter’s account of the discussions emerged.

In a letter Porter wrote detailing his reasons for withdrawing, he explained that the structure of the study had been far from what had been reported in the media.

He said the price tag—which would have ranged from $375,000 to $575,000—would have gone to hire local Thais, who after being trained by Porter, would have completed the bulk of the study.

Porter said his role would have been the “statistical analysis and guidance of the work.” His only visit to Thailand would have come at the end of the study to present his findings and offer his advice.

Porter has conducted similar studies for counties around the world, and is said by economic experts to maintain one of the best databases of information regarding competitiveness.

Porter said he ended negotiations because of the climate that surrounded discussion of the project.

“Commentators did not base their view on any knowledge of the project,” Porter wrote.

“There was no focus on whether such a project was needed. Instead, erroneous figures were used to attack the idea, and it was implied that I personally would be paid an enormous fee for just a short visit,” he wrote.

“I concluded regretfully that the political climate in Thailand at the moment is too partisan to have a productive and constructive discussion about competitiveness,” Porter wrote.

—The Associated Press contributed to the reporting of this story.

—Staff writer David H. Gellis can be reached at gellis@fas.harvard.edu.