The Shock Doctrine: The Rise of Disaster Capitalism

NOTE: this review only covers Part 1 - Part 5 In The Shock Doctrine, Naomi Klein surveys the rise of and subsequent use of the "shock doctrine" as a method of instilling neoliberal policies into the governments of various countries from Chile to Russia. She traces the birth of this doctrine, its relation to shock therapy, and the way countless economics, dictators, and other officials have attempted to craft a new world order that never went according to plan. With a definite bias, Naomi Klein makes no apologies for her views, yet as radical as some might interpret her to be, she presents a compelling view of this political and economic philosophy that certainly resonates with current events, particularly the earthquake that devastated Haiti earlier this year. If there is one figure at the heart of Klein's narrative of neoliberal ideas it is Milton Friedman, the figurehead of neoliberalism, a man who counseled various foreign leaders in their attempt to implement the shock doctrine. The primary aim of the shock doctrine is to "shock" the economy of the country by drastically changing key policies that align with the neoliberal agenda. Most often, these times of drastic imbalance follow an uprising, coup, war, or the like. In this state, the citizens are already feeling a sense of distress and therefore, any additional shocks to the economy should not be a major issue. So, what Klein is attempting to do is to show that capitalism is not born of freedom and that "unfettered free markets go hand in hand with democracy" (pg. 22), but instead to challenge that "official story of capitalism" by demonstrating that capitalism, "has consistently been midwife by the most brutal forms of coercion, inflicted on the collective body politic as well as on the countless individual bodies" (pg. 23). Whether or not one subscribes to the beliefs of Naomi Klein, she does propose a very convincing look at the ways economics and political intertwine on a global scale. Beginning with the links between shock therapy and the shock doctrine, Klein basically suggests they work the same, both are aimed at erasing a "memory" if you will, to create a clean slate. In shock therapy, a new set of behaviors may be imprinted, in the shock doctrine, a new set of economic policies is to be enacted, specifically neoliberal policies - free trade, deregulation, privatization, etc. The chapter on this relationship between the two actually works to shock the reader, to show how unscrupulous these doctors were in trying to treat their patients, and these same doctors were coincidentally enough government funded for the most part. Without going into too much detail, subsequent chapter discussed the way the shock doctrine was executed (or attempted) in countries around the world; Klein uses Chile, Poland, South Africa, Russia, and China as prime examples. Each case follows a similar trajectory with a leader or faction in power that a certain cabal of insiders who wanted to shock the countries political and economic systems until they were replaced with neoliberal ideas, policies, and practices. In Chile, probably the best example from the book, a group of Chilean students taught at the University of Chicago (home to a neoliberal contingent of economists) formed a group called "The Chicago Boys," and these men infiltrated government positions and advised the military leaders who were planning a coup to force the president out of power. This scenario was repeated in several different incarnations around the world; Klein shows how governments from Communist to Democratic were all injected with a neoliberal agenda and how shocks in all the examined countries facilitated the changes that were to be necessarily to support a change. All cases, although very similar, are not always the same as the case of Russia and China illustrate. As these countries seemed to be transforming into democratic countries, underlying this adjustment was the shock doctrine, which was exercised differently than it was in the cases of the Latin American countries. Interestingly, as was the case in South Africa, and an example that stands out slightly, although Nelson Mandela and the ANC (African National Congress) came into power, their control over South Africa was more than show than an actuality. The men - white Afrikaners that had been in power for decades - continued to control the country's politics and economics behind the scene. But in all of these examples, the main point is that government coups, backhanding dealings, and other shady transactions were carried out to impose a new rule of law - that being neoliberalism. Part Five and one of the most interesting and compelling sections deals with the shock doctrine in the United States. Here, Klein weaves together the conjunctures between all the Bush era players, Bush Jr., Cheney, Rumsfeld, etc. and shows how each of these men had all the money in the world to gain from privatization efforts pre and post 9/11. The figures that Klein quotes Rumsfeld and Cheney making in their business ventures are mind boggling, and only reinforce the Bush administration's need to want to impose their own form of shock doctrine. What is most frightening about these figures is the example of Rumsfeld who was Chairman of Gilead Sciences, the company that patented Tamiflu. In other words, in any disaster where large quantities of Tamiflu were needed, and while people were suffering, Rumsfeld and the company would being doing financially well. Although this whole section was a little too "conspiracy theory" for my personal liking, Klein does you make one think more about the implications of those government officials being tied so closely to large for profit corporations. Overall, The Shock Doctrine is well researched, clear, well written and most of all a very, very compelling read. If you agree with Klein's views, you will love this book, if you are more of the neoliberal and conservative variety, you will probably not enjoying reading it and will certainly disagree with Naomi Klein and what she has to say. Overall, I think no matter one's political or ideological leanings, The Shock Doctrine makes the point of how tied together we are in a globalized world. Globalization does not just affect politics, economics, culture, or society. It doesn't just affect material goods, but it influences the way we all live our lives in the twenty-first century. As many reviewers have stated already, this book is eye opening, yet it offers the hope that maybe if we all become a little more educated about what is going on in the world, we could do something more to change it to the way we see fit.

The late Milton Friedman, the renowned economist, believed that democracy and a free-market economy went hand-in-hand, that the greatest threat to both was nationalization, government regulation, and social spending. He preached this philosophy to his disciples at the University of Chicago School of Economics, and they would go forth spreading the Gospel according to the Book of Milton. There is also the International Monetary Fund, an agency founded after World War II to help struggling countries and their economies get back on their feet. Many of its managers and policy makers will be graduates of the Chicago School of Economics, and they will begin to impose the Friedman creed wherever possible. There is only one thing wrong. No population seems to vote in the people who support their brand of economics. Its first success is when a socialist, democratically elected President of Chile, Salvador Allende, is overthrown and killed when the presidential palace is stormed by fascists. Augusto Pinochet comes into power and immediately places the "Chicago boys" in charge of the economy. With the death of price controls and lunch programs, Chileans find themselves spending one quarter of their monthly salaries just to buy bread. They will leave hours earlier for work than usual because they can no longer afford public transportation. Even Chile's social security program, once a model of efficiency is privatized, becoming virtually worthless overnight. Chilean children begin fainting in school from lack of food or milk and many stop attending altogether. The story of Chile will be repeated in Argentina, Bolivia, China, Peru, Poland, South Africa, Sri Lanka, and Russia where the IMF will demand that borrowers meet Draconian conditions before they lend money. In each case these austerity measures will be made overnight, all at once. A shocked population will come to their senses if such radical changes are made over time. They will be able to organize, mobilize and challenge the implementation of such policies. It has to come all at once, right after elections, a coup, or a hurricane when the population will be too dazed and disorganized to respond. This will be the shock, or as author Naomi Klein calls it, shock doctrine. For those who are still lucid, there is the next step in the shock doctrine, terrorize, torture, or make them disappear. In each case, in each country, prices on food and other common items will go through the roof, the number of destitute will increase exponentially, and democracy will be squashed. In China, the communist elite will impose these changes on the masses while ensuring that they will profit handsomely from the economic and social upheaval. President Clinton will cheer the economic shock doctrine instituted by Boris Yeltsin as he dissolves the Court and the Parliament, bringing the Russian army out to attack the latter, which killed more than 300 people and several deputies. A new class of super mega apparatchiks will emerge increasing the divide between the "have mores" and the "have nothings," and Russians will put up with a few KGB murders and disappearances for the promise of stability that Vladimir Putin will provide. The Polish people, fed up with the broken promises of Solidarity who succumbed to IMF demands to relieve them of their crushing debt, will be thrown out of office in 1996 elections. Nelson Mandela will focus so much on achieving political control of South Africa he will neglect the real political power of controlling the economic engines that run the nation. He soon discovers that without economic power, he has no political muscle. He becomes a slave of economic apartheid. Shanty towns will get larger and people will become poorer. The population is disillusioned with their new-found "equality." The tsunami in Sri Lanka will allow the hoteliers to make a deal with the government, and place security guards around the beaches of what once belonged to villagers who fished from there for hundreds of years. After all, what right did they have to be there? Besides, the smell of fish made their guests complain. They will be driven inland where they will be given boats and houses, just no access to water to fish. But that could never be allowed to happen here, or could it? One of the first things President George W. Bush does after he finally realizes what happened in New Orleans after Hurricane Katrina is remove union wage scale that contractors would have to pay to laborers. (After all, it is the corporations that must benefit the most from disaster capitalism, not the people of New Orleans). The shock has begun as developers are already seeing how they can take over the utterly destroyed neighborhoods of the poor and turn them into luxury condos and hotels. Charter schools are replacing the public schools and teachers. Contractors will wake up illegal laborers in the night to tell them that the Immigration officers are coming to arrest them. They will run away without having been paid. The Federal Emergency Management Agency, once a functional, effective, national emergency response unit, has had so much work farmed out to contractors, it cannot mount an effective response to the disaster. They will pay top dollar for roofing that can be done at a fraction of the cost. They will supply trailers for homeless that are made of material unsafe to breathe, and people will die in a stadium because no one can take care of them. In Iraq, the local population rose up after our invasion and began to elect their own leaders and councils. They announced plans to take over city governments, services and industry. When Iraqis were asked what they wanted more of when surveyed, they clamored for more government jobs. But L. Paul Bremer wasn't about to allow democracy to get in the way of disaster capitalism. He ordered the military to disband all local democratic initiatives, which he replaced with a council not chosen by the Iraqi people, but by him. George Bush talks democracy (in Iraq), but walks capitalism by performing a Marshal Plan in reverse. The original plan implemented right after World War II called for keeping foreign investors out of Germany. Our government wanted the Germans to be able to build up their own industry and wealth. Not so in Iraq. Unemployed and starving Iraqis watched how American contractors brought in cheap Asian labor to rebuild their country. Iraqi unemployment remains at approximately sixty percent. American oil companies and American banks make long-term contracts with the new Iraqi government, and the IMF wants Iraq to sell off its own oil industry to foreigners. The second largest military commitment in Iraq, after the Americans, will be mercenaries. Does anyone wonder why there is an insurgency? "No 'capitalization' without representation!" The author makes it clear. In every country that holds free elections, no one votes for the shock doctrine of disaster capitalism. No one will vote away social programs, controls, or selling off their industries and companies to foreign investors. Klein's conclusion? Capitalism and democracy are not inherently compatible as Friedman always believed. It was just the opposite. This book is powerful and moving. As I reread my review, I feel I have not done her book justice in relating the power and depth of Naomi Klein's words. Her documentation is exceptional. Her ability to craft together different events and present them in a coherent and believable hypothesis is necromantic. Once in a while you find a book, a special book, one you keep as a reference, a "go-to" one. This is such a text. It is one of the two most important I have read for 2008. I have enough admiration for this woman's work that I would buy anything she writes, without hesitation. Her writing will hold your attention. "The Shock Doctrine" is eye-opening and of course, absolutely shocking. July 14, 2008 Bastille Day--How Appropriate.

Wondering how government services always get worse? This book details how large corporations use natural disasters to screw both governments and citizens for profit.

Wer sich in den letzten Jahrzehnten immer wieder über das Auftreten der Weltbank oder des IMF aufregen konnte, wenn irgendwo auf der Welt eine Katastrophe eingetreten war und die Agenten dieser Institutionen zwar einerseits mit viel Geld, aber andererseits mit einem absurden Forderungskatalog um die Ecke kamen, der wird sich gleich nicht mehr wundern, warum dieses so war und so ist. Es zieht sich wie ein roter Faden durch die aktuellen Krisen der Menschheit, egal ob es Erdbeben oder Tsunamis, politische Umstürze, Kriege oder Wirtschaftskrisen sind. Der organisierte Weltkapitalismus geht stets mit einem Besteck der Re-Organisation vor, das im eigenen Hause entwickelt wurde und seither Anwendung findet. Die kanadische Journalistin Naomi Klein - ihre Eltern verließen aus Protest gegen den Vietnam-Krieg die USA - hat das System des Wiederaufbaus nach Katastrophen untersucht. In ihrem lesenswerten Buch The Shock Doctrine hat sie den Guru der radikalen Marktwirtschaft sehr schnell lokalisiert. Es war der Chef der Chicago School of Economics Milton Friedman, der mit seinen radikalen markttheoretischen Schriften zunächst in den USA kaum jemanden begeistern konnte, der aber in Jahrzehnten kontinuierlichem Lobbyismus das Feld bereitete für den Siegeszug des totalitären Kapitalismus. Mit beeindruckender Stringenz seziert Naomi Klein das System: Zunächst tritt die Katastrophe ein. Die Bevölkerung ist traumatisiert und damit das Terrain für die Invention des neuen Systems bereitet. Das so genannte weiße Blatt liegt jungfräulich auf dem Tisch und alle Institutionen, die der betreffenden Gesellschaft einmal das Dasein erleichtert haben, sind ausradiert worden, um Raum zu schaffen für den ungezügelten Kapitalismus. Denn das ist die Doktrin Milton Friedmans und seiner Chicago Boys. Der Spähtrupp der Schock-Doktrinäre sind tatsächlich immer wieder IMF und Weltbank, die sofort nach dem Desaster auf der Matte stehen und folgenden Deal ausmachen wollen: 1. Das betreffende Land belässt es beim Wiederaufbau aller öffentlichen Institutionen, die der Staat betrieben hat, um den Markt zu beschränken. Damit gemeint sind auch Schulen, Krankenhäuser und Sicherheitsorgane. Diese Dienste werden privatisiert. Alle Regulierungen des freien Marktes werden revidiert. 2. Der Staat betreibt eine strikte Politik des Schuldenabbaus, damit er keine Perspektive mehr hat, sich einzumischen. 3. Sind diese Bedingungen erfüllt, ertränken IMF und Weltbang das Land mit Krediten, um eine dauerhafte Schuldknechtschaft zu gewährleisten und die Bedingungen der Radikalliberalisierung dauerhaft zu erhalten. In beeindruckender historischer Analyse dokumentiert die Autorin das nach und nach zutage tretende System. Egal, welche historischen Desaster zur Grundlage genommen werden, sie haben immer die gleichen Implikationen, ob beim Pinochet-Putsch in Chile, ob die Nutzung des Falkland-Krieges durch Thatcher im eigenen Land, ob bei den vielen Kriegen im Nahen Osten, speziell im Irak, ob nach den Tsunamis in Asien und ja, auch nach dem Massaker auf dem Tienanmen in Peking oder der Niederschlagung der Revolte in Moskau. Das Vorgehen zum Wiederaufbau, der keiner ist, stammt aus dem Regiebuch Milton Friedmans. Interessant ist, dass die USA innenpolitisch langfristig von dieser Doktrin verschont geblieben waren, wenn man einmal von den Verwüstungen absieht, die die Reagan-Ära in kurzer Zeit angerichtet hatte. Doch mit den Anschlägen auf das World Trade Center war auch dort der Schock eingetreten, den George W. Bush exzellent und konsequent unter dem Slogan der Homeland Security zu nutzen wusste. Ein Debakel, an dem das Land, wie alle, die einmal unter dieser Behandlung leiden mussten, noch lange laborieren wird. Naomi Kleins Bilanz ist gigantisch: Betrachtet man den Ansatz konsequent, so stehen die Verwüstungen, die Verfechter eines totalitären Kapitalismus bereits angerichtet haben, den großen Monstern der Geschichte in nichts nach.

This extraordinarily entertaining and thought-provoking left-leaning book is full of detail in describing the battleground between Keynesian and (gaining) Friedman economic theories since the 1970s. The latter believes that the capitalist engine drives economies whereas the socialist safety net costs them. It has exploited opportunities presented by natural or man-made disasters (for example, 9/11, counterrevolutions and military coups, debt, hyperinflation, Katrina and New Orleans, the 1993 invasion of Iraq and its aftermath, the collapse of the Soviet Union, the US air traffic controllers’ strike, tsunamis, etc. - and perhaps even a few deliberately created crises) in order apply shock and awe to get things done its way. The solution has been to apply accelerated elitist non-democratic driven shock therapy of laissez-faire economics, unfettered free markets, dramatic reductions in government expenditure and creation of hollow governments, high levels of subcontracting of responsibilities to large corporations, and the selling off of state assets at giveaway prices. In such cases, government decision making and strategy has become increasingly influenced by the profit motive of vested interests (most notably the rapidly growing defence and security industries). The result has been dramatic plutonomy, a widening of the gap between rich and poor and the creation of a massive underclass, all while stock markets have continued to rise, as well as such phenomena as gentrification and gated communities for the privileged. Countries have moved away from mixed, socially levelling economies towards trickle-down economics, corporate dominance and the pressures of globalisation on employment and wages. Such solutions can be contrasted with the post WW2 Marshall Plan which restrained rampant capitalism in taking into consideration social movements and restricting the ability of foreign corporations to pillage susceptible economies in order to get ‘a piece of the action’. The author points out many cases of what can be interpreted as criminal behaviour, either through negligence or incompetence, conflicts of interest, the evasion of public scrutiny, allowing corporate interests over-influencing government strategy (notably in relation to military conflicts), not to mention the abundance use of revolving doors between government posts and private industry. The bad names and words in this trend include the ‘neoliberal’ Chicago School of Economics, (where Milton Friedman and many acolyte protagonists originated from), and individuals such as Bremer, Bush, Cheney, Pinochet, Reagan, Rumsfeld, Sachs, and Thatcher. This book was published in 2007, i.e. before the financial crisis, Snowden, Syria, the Arab Spring, the Greek crisis, the growth of ISIS, and the restraint practiced by Barack Obama, so it pays to gloss over the last chapter, as well as any promise that might have been then seemingly offered by characters such as Chavez, Kirchner, and Putin. Parkinson’s Law illustrates the dangers of big government, ivory towers and the absence of competition, and too much democracy can result in sclerosis, so presumably there does exist a just middle way, but certainly not the one described in this book.

大惨事につけ込んで実施される過激な市場原理主義改革（Shock Doctrine）、「惨事便乗型資本主義（Disaster Capitalism）」として分析解説されています。 Believers in the shock doctrine are convinced that only a great rupture ' a flood, a war, terrorist attack ' can generate the kind of vast, clean canvases they crave. It is in these malleable moments, when we are psychologically unmoored and physically unrooted, that these artists of the real plunge in their hands and begin their work of remarking the world. フリードンの唱える市場至上主義の信奉者達は、洪水、戦争、テロ攻撃等の破壊状況のみが、希望する白紙のキャンバスを拵えてくれると確信している。 被災者達が心理的に自分を見失い、肉体的にも根なし草状態になっている時こそ絶好の機会と捉えて、彼らの望む世界を構築すべく活動策謀を始めるのだ。 国際公約でのTPP参画で、東日本大震災の復旧、原発安全廃炉・放射線の処理工事に、住民要望を無視したこの惨事便乗型資本主義が適用されてしまう懸念が拭いきれません。

C'est l’œuvre maîtresse de madame Klein. Remarquable et brutale prise de conscience de la réalité dans laquelle nous vivons car, bien que les théories de Friedmann soient censées n'être applicables que dans les régimes autoritaires, elles le sont de plus en plus dans nos démocraties. De quoi se questionner.