by Naomi Klein
73. Shafiq Rasul, Asif Iqbal and Rhuhel Ahmed, Composite Statement: Detention in Afghanistan and Guantánamo Bay (New York: Center for Constitutional Rights, July 26, 2004), 95, www.ccr-ny.org.
74. Adam Zagorin and Michael Duffy, “Inside the Interrogation of Detainee 063,” Time, June 20, 2005.
75. James Yee and Aimee Molloy, For God and Country: Faith and Patriotism under Fire (New York: Public Affairs, 2005), 101–102; Tim Golden and Margot Williams, “Hunger Strike Breaks Out at Guantánamo,” New York Times, April 8, 2007.
76. Craig Whitlock, “In Letter, Radical Cleric Details CIA Abduction, Egyptian Torture,” Washington Post, November 10, 2006.
77. Ibid.
78. Amnesty International, “Italy, Abu Omar: Italian Authorities Must Cooperate Fully with All Investigations,” Public Statement, November 16, 2006, www.amnesty.org.
79. Jumah al-Dossari, “Days of Adverse Hardship in U.S. Detention Camps—Testimony of Guantánamo Detainee Jumah al-Dossari,” Amnesty International, December 16, 2005.
80. Mark Landler and Souad Mekhennet, “Freed German Detainee Questions His Country’s Role,” New York Times, November 4, 2006.
81. A. E. Schwartzman and P. E. Termansen, “Intensive Electroconvulsive Therapy: A Follow-Up Study,” Canadian Psychiatric Association Journal 12, no. 2 (1967): 217
82. Erik Eckholm, “Winning Hearts of Iraqis with a Sewage Pipeline,” New York Times, September 5, 2004.
2. The Other Doctor Shock: Milton Friedman and the Search for a Laissez-Faire Laboratory
1. Arnold C. Harberger, “Letter to a Younger Generation,” Journal of Applied Economics 1, no. 1 (1998): 2.
2. Katherine Anderson and Thomas Skinner, “The Power of Choice: The Life and Times of Milton Friedman,” aired on PBS on January 29, 2007.
3. Jonathan Peterson, “Milton Friedman, 1912–2006,” Los Angeles Times, November 17, 2006.
4. Frank H. Knight, “The Newer Economics and the Control of Economic Activity,” Journal of Political Economy 40, no. 4 (August 1932): 455.
5. Daniel Bell, “Models and Reality in Economic Discourse,” The Crisis in Economic Theory, eds. Daniel Bell and Irving Kristol (New York: Basic Books, 1981), 57–58.
6. Milton Friedman and Rose D. Friedman, Two Lucky People: Memoirs (Chicago: University of Chicago Press, 1998), 24.
7. Larry Kudlow, “The Hand of Friedman,” The Corner web log on the National Review Online, November 16, 2006, www.nationalreview.com.
8. Friedman and Friedman, Two Lucky People, 21.
9. Milton Friedman, Capitalism and Freedom (1962, repr. Chicago: University of Chicago Press, 1982), 15.
10. Don Patinkin, Essays on and in the Chicago Tradition (Durham, NC: Duke University Press, 1981), 4.
11. Friedrich A. Hayek, The Road to Serfdom (Chicago: University of Chicago Press, 1944).
12. Interview with Arnold Harberger conducted October 3, 2000, for Commanding Heights: The Battle for the World Economy [television series for PBS], executive producers Daniel Yergin and Sue Lena Thompson, series producer William Cran(Boston: Heights Productions, 2002), full interview transcript available at www.pbs.org.
13. John Maynard Keynes, The End of Laissez-Faire (London: L & Virginia Woolf, 1926).
14. John Maynard Keynes, “From Keynes to Roosevelt: Our Recovery Plan Assayed,” New York Times, December 31, 1933.
15. John Kenneth Galbraith, The Great Crash of 1929 (1954, repr. New York: Avon, 1979), 168.
16. John Maynard Keynes, The Economic Consequences of the Peace (1919, repr. Westminster, UK: Labour Research Department, 1920), 251.
17. Friedman and Friedman, Two Lucky People, 594.
18. Stephen Kinzer, All the Shah’s Men: An American Coup and the Roots of Middle East Terror (Hoboken, NJ: John Wiley & Sons, 2003), 153–54; Stephen Kinzer, Overthrow: America’s Century of Regime Change from Hawaii to Iraq (New York: Times Books, 2006), 4.
19. El Imparcial, March 16, 1951, cited in Stephen C. Schlesinger, Stephen Kinzer and John H. Coatsworth, Bitter Fruit: The Story of the American Coup in Guatemala (Cambridge, MA: Harvard University Press, 1999), 52.
20. Patterson described Argentine and Brazilian economists as “pink” in an interview with Juan Gabriel Valdés. He spoke of the need to “change the formation of the men” to the U.S. ambassador to Chile, Willard Beaulac. Juan Gabriel Valdés, Pinochet’s Economists: The Chicago School in Chile (Cambridge: Cambridge University Press, 1995), 110–13.
21. Ibid., 89.
22. The quotation comes from Joseph Grunwald, a Columbia University economist working at the time at the University of Chile. Valdés, Pinochet’s Economists, 135.
23. Harberger, “Letter to a Younger Generation,” 2.
24. André Gunder Frank, Economic Genocide in Chile: Monetarist Theory Versus Humanity (Nottingham, UK: Spokesman Books, 1976), 7–8.
25. Kenneth W. Clements, “Larry Sjaastad, The Last Chicagoan,” Journal of International Money and Finance 24 (2005): 867–69.
26. Gunder Frank, Economic Genocide in Chile, 8.
27. Memorandum to William Carmichael, via Jeffrey Puryear, from James W. Trowbridge, October 24, 1984, page 4, cited in Valdés, Pinochet’s Economists, 194.
28. Ibid., 206. FOOTNOTE: “The Rising Risk of Recession,” Time, December 19, 1969.
29. In 1963, de Castro himself was on leave from Santiago tofurther his studies at the University of Chicago. He became chairman in 1965. Valdés, Pinochet’s Economists, 140, 165.
30. Ibid., 159. The quotation comes from Ernesto Fontaine, a Chicago grad and a professor at the Catholic University in Santiago.
31. Ibid., 6, 13.
32. Third report to the Catholic University of Chile and the International Cooperation Administration, August 1957, signed by Gregg Lewis, University of Chicago, page 3, cited in Valdés, Pinochet’s Economists, 132.
33. Interview with Ricardo Lagos conducted January 19, 2002, for Commanding Heights: The Battle for the World Economy, www.pbs.org.
34. Friedman and Friedman, Two Lucky People, 388.
35. Central Intelligence Agency, Notes on Meeting with the President on Chile, September 15, 1970, declassified, www.gwu.edu/~nsarchiv.
36. “The Last Dope from Chile,” mimeo signed “Al H.,” dated Santiago, September 7, 1970, cited in Valdés, Pinochet’s Economists, 242–43.
37. Sue Branford and Bernardo Kucinski, Debt Squads: The U.S., the Banks, and Latin America (London: Zed Books, 1988), 40, 51–52.
38. Subcommittee on Multinational Corporations, “The International Telephone and Telegraph Company and Chile, 1970–71,” Report to the Committee on Foreign Relations United States Senate by the Subcommittee on Multinational Corporations, June 21, 1973, 13.
39. Ibid., 15.
40. Francisco Letelier, interview, Democracy Now! September 21, 2006.
41. Subcommittee on Multinational Corporations, “The International Telephone and Telegraph Company and Chile, 1970–71,” 4, 18.
42. Ibid., 11, 15.
43. Ibid., 17.
44. Archdiocese of São Paulo, Torture in Brazil: A Shocking Report on the Pervasive Use of Torture by Brazilian Military Governments, 1964–1979, ed. Joan Dassin, trans. Jaime Wright (Austin: University of Texas Press, 1986), 53.
45. William Blum, Killing Hope: U.S. Military and CIA Interventions Since WWII (Monroe, ME: Common Courage Press, 1995), 195; “Times Diary: Liquidating Sukarno,” Times (London), August 8, 1986.
46. Kathy Kadane, “U.S. Officials’ Lists Aided Indonesian Bloodbath in ’60s,” Washington Post, May 21, 1990.
47. Kadane first published the account of the lists, based on taped on-the-record interviews with top U.S. officials posted in Indonesia at the time, in The Washington Post The information about radios and weapons appears in a letter to the editor written by Kadane in The New York Review of Books, April 10, 1997, based on the same interviews. Kadane’s interview transcripts are now with the National Security Archive in Washington, DC. Kadane, “U.S. Official
s’ Lists Aided Indonesian Bloodbath in ’60s.”
48. John Hughes, Indonesian Upheaval (New York: David McKay Company, Inc., 1967), 132.
49. The 500,000 figure is the most commonly used, including by The Washington Post in 1966. Britain’s ambassador to Indonesia estimated the number at 400,000, but he reported that the Swedish ambassador, who had done additional research, deemed it “a very serious under-estimate.” Some put the number as high as a million, though the CIA claimed in a 1968 report that 250,000 had been killed, calling it “one of the worst mass murders of the 20th century.” “Silent Settlement,” Time, December 17, 1965; John Pilger, The New Rulers of the World (London: Verso, 2002), 34; Kadane, “U.S. Officials’ Lists Aided Indonesian Bloodbath in ’60s.”
50. “Silent Settlement.”
51. David Ransom, “Ford Country: Building an Elite for Indonesia,” The Trojan Horse: A Radical Look at Foreign Aid, ed. Steve Weissman (Palo Alto, CA: Ramparts Press, 1975), 99.
52. FOOTNOTE: Ibid., 100.
53. Robert Lubar, “Indonesia’s Potholed Road Back,” Fortune, June 1, 1968.
54. Goenawan Mohamad, Celebrating Indonesia: Fifty Years with the Ford Foundation 1953–2003 (Jakarta: Ford Foundation, 2003), 59.
55. In the original text, the author spells the general’s name Soeharto; I changed it to the more common spelling Suharto for the sake of consistency. Mohammad Sadli, “Recollections of My Career,” Bulletin of Indonesian Economic Studies 29, no. 1 (April 1993): 40.
56. The following posts were filled with graduates of the Ford program: minister of finance, minister of trade and commerce, chair of the National Planning Board, vice-chair of the National Planning Board, secretary-general of Marketing and Trade Research, chairman of the Technical Team of Foreign Investment, secretary-general of industry and ambassador to Washington. Ransom, “Ford Country,” 110.
57. Richard Nixon, “Asia After Vietnam,” Foreign Affairs 46, no. 1 (October 1967): 111. FOOTNOTE: Arnold C. Harberger, Curriculum Vitae, November 2003, www.econ.ucla.edu.
58. Pilger, The New Rulers of the World, 36–37.
59. CIA, “Secret Cable from Headquarters [Blueprint for Fomenting a Coup Climate], September 27, 1970,” in Peter Kornbluh, The Pinochet File: A Declassified Dossier on Atrocity and Accountability (New York: New Press, 2003), 49–56.
60. Valdés, Pinochet’s Economists, 251.
61. Ibid., 248–49.
62. Ibid., 250.
63. Select Committee to Study Governmental Operations with Respect to Intelligence Activities, United States Senate, Covert Action in Chile 1963–1973 (Washington, DC: U.S. Government Printing Office, December 18, 1975), 30.
64. Ibid., 40.
65. Eduardo Silva, The State and Capital in Chile: Business Elites, Technocrats, and Market Economics (Boulder, CO: Westview Press, 1996), 74.
66. Orlando Letelier, “The Chicago Boys in Chile: Economic Freedom’s Awful Toll,” The Nation, August 28, 1976.
3. States of Shock: The Bloody Birth of the Counterrevolution
1. Niccolò Machiavelli, The Prince, trans. W. K. Marriott (Toronto: Alfred A. Knopf, 1992), 42.
2. Milton Friedman and Rose D. Friedman, Two Lucky People: Memoirs (Chicago: University of Chicago Press, 1998), 592.
3. Batalla de Chile [three-part documentary film series] compiled by Patricia Guzmán, originally produced 1975–79 (New York: First Run/Icarus Films, 1993).
4. John Dinges and Saul Landau, Assassination on Embassy Row (New York: Pantheon Books, 1980), 64.
5. Report of the Chilean National Commission on Truth and Reconciliation, vol. 1, trans. Phillip E. Berryman (Notre Dame: University of Notre Dame Press, 1993), 153; Peter Kornbluh, The Pinochet File: A Declassified Dossier on Atrocity and Accountability (New York: New Press, 2003), 153–54.
6. Kornbluh, The Pinochet File, 155–56.
7. These numbers are contested because the military government was notorious for covering up and denying its crimes. Jonathan Kandell, “Augusto Pinochet, 91, Dictator Who Ruled by Terror in Chile, Dies,” New York Times, December 11, 2006; Chile Since Independence, ed. Leslie Bethell (New York: Cambridge University Press, 1993), 178; Rupert Cornwell, “The General Willing to Kill His People to Win the Battle against Communism,” Independent (London), December 11, 2006.
8. Juan Gabriel Valdés, Pinochet’s Economists: The Chicago School in Chile (Cambridge: Cambridge University Press, 1995), 252.
9. Pamela Constable and Arturo Valenzuela, A Nation of Enemies: Chile Under Pinochet (New York: W. W. Norton & Company, 1991), 187.
10. Robert Harvey, “Chile’s Counter-Revolution: The Fight Goes On,” The Economist, February 2, 1980.
11. José Piñera, “How the Power of Ideas Can Transform a Country,” www.josepinera.com.
12. Constable and Valenzuela, A Nation of Enemies, 74–75.
13. Ibid., 69.
14. Valdés, Pinochet’s Economists, 31.
15. Constable and Valenzuela, A Nation of Enemies, 70.
16. Pinochet’s only trade barrier was a 10 percent tariff on imports, which does not constitute a trade barrier but a minor import tax. André Gunder Frank, Economic Genocide in Chile: Monetarist Theory versus Humanity (Nottingham, UK: Spokesman Books, 1976), 81.
17. These are conservative estimates. Gunder Frank writes that in the first year of junta rule, inflation reached 508 percent and may have been close to 1,000 percent for “basic necessities.” In 1972, Allende’s last year in office, inflation reached 163 percent. Constable and Valenzuela, A Nation of Enemies, 170; Gunder Frank, Economic Genocide in Chile, 62.
18. Que Pasa (Santiago), January 16, 1975, cited in Gunder Frank, Economic Genocide in Chile, 26.
19. La Tercera (Santiago), April 9, 1975, cited in Orlando Letelier, “The Chicago Boys in Chile,” The Nation, August 28, 1976.
20. El Mercurio (Santiago), March 23, 1976, cited in ibid.
21. Que Pasa (Santiago), April 3, 1975, cited in ibid.
22. Friedman and Friedman, Two Lucky People, 399.
23. Ibid., 593–94.
24. Ibid., 592–94.
25. Ibid., 594.
26. Gunder Frank, Economic Genocide in Chile, 34.
27. Constable and Valenzuela, A Nation of Enemies, 172–73.
28. “In 1980, public spending on health had decreased by 17.6 per cent compared to 1970, and education by 11.3 per cent.” Valdés, Pinochet’s Economists, 23, 26; Constable and Valenzuela, A Nation of Enemies, 172–73; Robert Harvey, “Chile’s Counter-Revolution,” The Economist, February 2, 1980.
29. Valdés, Pinochet’s Economists, 22.
30. Albert O. Hirschman, “The Political Economy of Latin American Development: Seven Exercises in Retrospection,” Latin American Research Review 12, no. 3 (1987): 15.
31. Public Citizen, “The Uses of Chile: How Politics Trumped Truth in the Neo-Liberal Revision of Chile’s Development,” discussion paper, September 2006, www.citizen.org.
32. “A Draconian Cure for Chile’s Economic Ills?” BusinessWeek, January 12, 1976.
