Harvard University, established in 1636, has long been a symbol of educational excellence and intellectual leadership. Yet, the power that underpins its prestige stretches beyond academia. It is shaped by a long history of governance, financial influence, and deep connections to elite sectors of politics, business, and finance. To understand Harvard’s true power, one must look at how its governance structures—its President & Fellows, Board of Overseers, and massive endowment—have evolved over time, and how these forces have perpetuated the university’s dominance, often at odds with its own stated ideals of inclusivity and social responsibility.
Harvard’s origins lie in the colonial era, when it was founded to train clergy and lay leaders for the Massachusetts Bay Colony. However, the university’s initial wealth and influence were, in part, fueled by the profits generated through slavery. Early benefactors of the institution were heavily invested in the slave trade, with their wealth derived from industries that relied on slave labor, particularly in the Caribbean and Southern American colonies. Harvard, as a result, was built upon the legacies of slavery—a complex and often forgotten chapter of its history.
In its early years, Harvard was a small, insular institution designed to cater to the colonial elite, focused largely on producing educated men who could serve in various clerical and academic positions. However, it was clear even then that those in positions of financial power held influence over the institution’s trajectory, a pattern that would only grow as Harvard expanded.
By the 18th century, Harvard’s governance structure began to take shape. The President & Fellows of Harvard College, later known as the Harvard Corporation, became the central executive body. Comprised of the university's president and a small group of influential fellows, the Corporation held fiduciary responsibility for all decisions related to the university’s finances, policies, and strategic direction. This elite group, made up largely of wealthy businessmen, political leaders, and intellectuals, has continued to shape the university’s priorities ever since.
Meanwhile, the Board of Overseers, a larger and more advisory body, began to assume responsibility for providing guidance on academic matters and representing the interests of the broader Harvard community. Unlike the Fellows, the Overseers were elected by alumni and served as a check on the Corporation’s power. However, even the Overseers, while influential, were ultimately subordinate to the Corporation’s authority in matters of governance and institutional decisions.
This structure of governance—executive authority in the hands of a small, wealthy group—would prove to be a critical force in shaping the university’s development throughout the centuries. It also marked the beginning of a deep connection between Harvard and elite sectors of society, from local Boston elites to national political and financial figures.
As the university grew in stature, so too did its endowment. By the 19th century, Harvard had begun to accumulate substantial wealth, much of it invested in land, property, and businesses tied to global trade. As a result, Harvard’s endowment began to wield increasing influence over the university’s operations. The Harvard Management Company (HMC), created to oversee the university’s massive endowment, became an essential player in Harvard’s financial operations.
The growth of the endowment allowed Harvard to operate with considerable financial independence. It could fund research, increase faculty salaries, and provide scholarships—all while maintaining a powerful influence over the broader academic world. As the endowment ballooned throughout the 20th century, it also gave Harvard an outsized role in global financial markets, reflecting the university’s transition from a regional educational institution to a global financial player.
However, the immense wealth of the endowment also raised ethical questions. Critics pointed out that the vast sums invested by Harvard often came from industries with questionable ethical practices, including fossil fuels, arms manufacturing, and exploitative labor practices. In recent decades, Harvard’s financial management has come under scrutiny for perpetuating global systems of inequality and environmental degradation—problems that often run counter to its educational and social missions.
The legacy of slavery has continued to haunt Harvard well into the modern era. As the university's wealth grew, so too did the visibility of its entanglements with slavery. In recent years, historians and scholars have begun to reveal how Harvard's early benefactors—including major donors and founders—derived their fortunes from the slave trade. In 2021, the university published a report that detailed its historical ties to slavery, acknowledging that its financial success was built on the backs of enslaved people. The recognition of this history has led to calls for reparations, and for Harvard to take responsibility for its role in perpetuating systems of racial oppression.
Simultaneously, as Harvard’s financial and political clout grew, the
university became increasingly aligned with neoliberal economic
policies—policies that prioritize free markets, deregulation, and
privatization. In the 1980s and 1990s, this embrace of neoliberalism
became particularly visible as the university shifted focus from
providing affordable, publicly accessible education to catering to the
needs of a global elite. Harvard’s massive endowment, now managed in
ways that often emphasized profitability above social responsibility,
began to reflect broader trends within American society, where wealth
became increasingly concentrated in the hands of the few.
Harvard’s relationship with Indigenous peoples has also been a source of significant controversy. In the 19th century, the university became involved in the forced assimilation of Native Americans through education. Harvard and other American institutions took part in programs designed to "civilize" Indigenous children, often by removing them from their families and communities and erasing their languages and cultures. This legacy of colonialism and cultural genocide, which was part of broader U.S. government policies, continues to shape Harvard’s interactions with Native American communities to this day. Despite recent initiatives aimed at improving outreach to Native students, Harvard has yet to fully reconcile with its historical role in this tragic chapter of U.S. history.
In the latter half of the 20th century and into the 21st, Harvard made efforts to reform its policies and create a more inclusive environment for students of all backgrounds. Diversity, equity, and inclusion (DEI) became core tenets of the university’s public identity, and significant strides were made in opening the institution to historically marginalized groups. However, this commitment began to fray as political and financial pressures mounted.
The most high-profile challenge came in the form of legal battles surrounding affirmative action. In 2014, the group Students for Fair Admissions filed a lawsuit alleging that Harvard discriminated against Asian American applicants in favor of Black and Latino students. The case drew national attention, and Harvard's DEI policies became a lightning rod for conservative critics, who argued that such efforts undermined meritocracy.
In response to the lawsuit and increasing scrutiny from corporate donors, Harvard's commitment to DEI efforts began to wane. Critics argue that Harvard has increasingly prioritized maintaining its relationships with powerful financial backers, many of whom have conservative views on race and education. DEI initiatives, which were once central to Harvard’s mission, have become a flashpoint in the broader cultural wars that shape American politics.
Among the most influential figures on Harvard’s Board of Overseers is Penny Pritzker, a billionaire businesswoman and former U.S. Secretary of Commerce. A member of the powerful Pritzker family, whose wealth originates from the Hyatt hotel chain, Pritzker’s role highlights the intersection of wealth, politics, and education. Her tenure on the Board of Overseers has been marked by her advocacy for policies that align with neoliberal values—emphasizing corporate partnerships, privatization, and economic growth.
Harvard’s growing connections to Wall Street and corporate elites have further cemented its position as a key player in U.S. economic and political spheres. Many of the university’s alumni go on to hold influential positions in major corporations, government, and financial institutions. These connections have allowed Harvard to play a central role in shaping the policies of both local governments, like the city of Boston, and national politics. In turn, Harvard’s vast wealth—much of it untaxed due to its nonprofit status—has raised concerns about its influence in local communities and the broader national political landscape.
Harvard’s tax-exempt status has long been a source of controversy. As a nonprofit institution, Harvard does not pay property taxes, a decision that has caused tension with local residents in Boston. The university owns significant amounts of real estate in the city, and critics argue that Harvard’s tax exemptions deprive the city of revenue that could be used to fund essential services. Furthermore, the university’s presence in Boston has driven up property values, contributing to gentrification and the displacement of lower-income residents.
At the same time, Harvard’s influence extends far beyond Boston. Through its financial ties, political connections, and network of alumni, the university wields significant power in shaping U.S. policies on everything from education to economic regulation. This has led to concerns about the concentration of power at elite institutions like Harvard, which continue to act as gatekeepers for access to political and economic power.
As Harvard navigates these complicated legacies, questions about its future remain. The university’s governance structures—the Corporation, the Board of Overseers, and the endowment—will continue to shape the direction of the institution for generations to come. However, the institution will have to grapple with the contradictions between its immense power and wealth and its claims to be an institution committed to social good. Can Harvard reconcile its past and present with the values of diversity, equity, and inclusion? Will the concentration of power and wealth within the university’s governance structure continue to undermine its claims to progressive ideals?
As the world watches, Harvard's next steps will be crucial not just for the future of the university, but for the broader role that elite institutions play in shaping global financial, political, and social systems. Only time will tell if Harvard can evolve into an institution that truly reflects the ideals it claims to uphold—or if it will continue to wield its immense power in service of a narrow, elite agenda.
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