The Shock Doctrine: The Rise of Disaster Capitalism

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by Naomi Klein


  69. HIJOS (a human rights organization of the children of the disappeared) estimate over five hundred children. HIJOS, “Lineamientos,” www.hijos.org.ar; the figure of two hundred cases cited in Human Rights Watch, Annual Report 2001, www.hrw.org.

  70. Silvana Boschi, “Desaparición de menores durante la dictadura militar: Presentan un documento clave,” Clarín (Buenos Aires), September 14, 1997.

  71. Feitlowitz, A Lexicon of Terror, 89.

  5. “Entirely Unrelated”: How an Ideology Was Cleansed of Its Crimes

  1. Donald Rumsfeld, Secretary of Defense Donald H. Rumsfeld Speaking at Tribute to Milton Friedman, White House, Washington, DC, May 9, 2002, www.defenselink.mil.

  2. Lawrence Weschler, A Miracle, a Universe: Settling Accounts with Torturers (New York: Pantheon Books, 1990), 147.

  3. Anthony Lewis, “For Which We Stand: II,” New York Times, October 2, 1975.

  4. “A Draconian Cure for Chile’s Economic Ills?” BusinessWeek, January 12, 1976; Milton Friedman and Rose D. Friedman, Two Lucky People: Memoirs (Chicago: University of Chicago Press, 1998), 601.

  5. Milton Friedman, “Free Markets and the Generals,” Newsweek, January 25, 1982; Juan Gabriel Valdés, Pinochet’s Economists: The Chicago School in Chile (Cambridge: Cambridge University Press, 1995), 156.

  6. Friedman and Friedman, Two Lucky People, 596.

  7. Ibid., 398.

  8. Interview with Milton Friedman conducted October 1, 2000, for Commanding Heights: The Battle for the World Economy, www.pbs.org.

  9. The Nobel Prize in Economics is separate from other prizes chosen by the Nobel Committee. The award’s full name is the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.

  10. Milton Friedman, “Inflation and Unemployment,” Nobel Memorial Lecture, December 13, 1976, www.nobelprize.org.

  11. Orlando Letelier, “The Chicago Boys in Chile,” The Nation, August 28, 1976.

  12. Neil Sheehan, “Aid by CIA Groups Put in the Millions,” New York Times, February 19, 1967.

  13. Amnesty International, Report on an Amnesty International Mission to Argentina 6–15 November 1976 (London: Amnesty International Publications, 1977), copyright page; Yves Dezalay and Bryant G. Garth, The Internationalization of Palace Wars: Lawyers, Economists, and the Contest to Transform Latin American States (Chicago: University of Chicago Press, 2002), 71.

  14. Amnesty International, Report on an Amnesty International Mission to Argentina 6–15 November 1976, 48.

  15. The Peace Committee had been renamed the Vicariate by the time Ford began funding it. Americas Watch was part of Human Rights Watch, which started, under the name Helsinki Watch, with a $500,000 grant from the Ford Foundation. The $30 million figure comes from an interview with Alfred Ironside in the Office of Communications at the Ford Foundation. According to Ironside, most of the money was spent in the 1980s. He said that “there was virtually none spent on human rights in Latin America in the fifties” and that “there were a series of grants in the sixties geared toward human rights in the ball park of $700,000.”

  16. Dezalay and Garth, The Internationalization of Palace Wars, 69.

  17. 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), 96.

  18. Valdés, Pinochet’s Economists, 158, 186, 308.

  19. Ford Foundation, “History,” 2006, www.fordfound.org.

  20. Goenawan Mohamad, Celebrating Indonesia: Fifty Years with the Ford Foundation 1953–2003 (Jakarta: Ford Foundation, 2003), 56.

  21. Dezalay and Garth, The Internationalization of Palace Wars, 148.

  22. Ford Foundation, “History,” 2006, www.fordfound.org. FOOTNOTE: Frances Stonor Saunders, The Cultural Cold War: The CIA and the World of Arts and Letters (New York: New Press, 2000).

  23. 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), 50.

  24. Simone de Beauvoir and Gisèle Halimi, Djamila Boupacha, trans. Peter Green (New York: Macmillan, 1962), 19, 21, 31.

  25. Marguerite Feitlowitz, A Lexicon of Terror: Argentina and the Legacies of Torture (New York: Oxford University Press, 1998), 113.

  26. I have made slight changes in Feitlowitz’s translation for clarity. Feitlowitz, A Lexicon of Terror, 113–15. Emphasis in original.

  6. Saved by a War: Thatcherism and Its Useful Enemies

  1. Translated by Peter Sillem. Carl Schmitt, Politische Theologie: Vier Kapitel zur Lehre von der Souveränität (1922, repr. Berlin: Duncker & Humblot, 1993), 13.

  2. Correspondence in the Hayek Collection, box 101, folder 26, Hoover Institution Archives, Palo Alto, CA. Thatcher’s letter is dated February 17. Thanks to Greg Grandin.

  3. Peter Dworkin, “Chile’s Brave New World of Reaganomics,” Fortune, November 2, 1981.

  4. Milton Friedman and Rose D. Friedman, Two Lucky People: Memoirs (Chicago: University of Chicago Press, 1998), 387.

  5. Donald Rumsfeld, Secretary of Defense Donald H. Rumsfeld Speaking at Tribute to Milton Friedman, White House, Washington, DC, May 9, 2002, www.defenselink.mil.

  6. Milton Friedman, “Economic Miracles,” Newsweek, January 21, 1974.

  7. In the transcript of the speech there is an error. Rumsfeld is quoted saying, “They’re going to learn the going to learn the wrong lesson.” I removed the repetition to avoid confusion. Rumsfeld, Secretary of Defense Donald H. Rumsfeld Speaking at Tribute to Milton Friedman.

  8. Henry Allen, “Hayek, the Answer Man,” Washington Post, December 2, 1982.

  9. Interview with Milton Friedman conducted October 1, 2000, for Commanding Heights: The Battle for the World Economy, www.pbs.org.

  10. Arnold C. Harberger, Curriculum Vitae, November 2003, www.econ.ucla.edu.

  11. Ibid.; Friedman and Friedman, Two Lucky People, 607–609.

  12. The Political Economy of Policy Reform, ed. John Williamson (Washington, DC: Institute for International Economics, 1994), 467.

  13. Carmen DeNavas-Walt, Bernadette D. Proctor, Cheryl Hill Lee, U.S. Census Bureau, Income, Poverty and Health Insurance Coverage in the United States: 2005, August 2006, www.census.gov; Central Intelligence Agency, World Factbook 2007, www.cia.gov.

  14. Allan H. Meltzer, “Choosing Freely: The Friedmans’ Influence on Economic and Social Policy,” in The Legacy of Milton and Rose Friedman’s Free to Choose, eds. M. Wynne, H. Rosenblum and R. Formaini (Dallas: Federal Reserve Bank of Dallas, 2004), 204, www.dallasfed.org.

  15. John Campbell, Margaret Thatcher: The Iron Lady, vol. 2 (London: Jonathan Cape, 2003), 174–75; Patrick Cosgrave, Thatcher: The First Term (London: Bodley Head, 1985), 158–59.

  16. Kevin Jefferys, Finest & Darkest Hours: The Decisive Events in British Politics from Churchill to Blair (London: Atlantic Books, 2002), 208.

  17. Based on MORI poll results (Gallup had Thatcher at 23 percent). “President Bush: Overall Job Rating,” www.pollingreport.com, accessed May 12, 2007; Malcolm Rutherford, “1982: Margaret Thatcher’s Year,” Financial Times (London), December 31, 1982.

  18. Samuel P. Huntington, The Third Wave: Democratization in the Late Twentieth Century (Norman, OK: University of Oklahoma Press, 1991).

  19. Hossein Bashiriyeh, The State and Revolution in Iran, 1962–1982 (New York: St. Martin’s Press, 1984), 170–71.

  20. “On the Record,” Time, February 14, 1983.

  21. Campbell, Margaret Thatcher: The Iron Lady, vol. 2, 128.

  22. Leonard Downie Jr. and Jay Ross, “Britain: South Georgia Taken,” Washington Post, April 26, 1982; “Jingoism Is Not the Way,” Financial Times (London), April 5, 1982.

  23. Tony Benn, The End of an Era: Diaries 1980–90, ed. Ruth Winstone (London: Hutchinson, 1992), 206.

  24. Angus Deming, “Britain’s Iron Lady,” Newsweek, May 14, 1979; Jefferys, Finest & Darkes
t Hours, 226.

  25. BBC News, “1982: First Briton Dies in Falklands Campaign,” On This Day, 24 April, news.bbc.co.uk.

  26. Rutherford, “1982.”

  27. Michael Getler, “Dockers’ Union Agrees to Settle Strike in Britain,” Washington Post, July 21, 1984.

  28. “TUC at Blackpool (Miners’ Strike): Labour Urged to Legislate on NUM Strike Fines,” Guardian (London), September 4, 1985; Seumas Milne, The Enemy Within: Thatcher’s Secret War against the Miners (London: Verso, 2004); Seumas Milne, “What Stella Left Out,” Guardian (London), October 3, 2000.

  29. Seumas Milne, “MI5’s Secret War,” New Statesman & Society, November 25, 1994.

  30. Coal War: Thatcher vs. Scargill, director Liam O’Rinn, episode 8093 of the series Turning Points of History, telecast June 16, 2005.

  31. Ibid.

  32. Warren Brown, “U.S. Rules Out Rehiring Striking Air Controllers,” Washington Post, August 7, 1981; Steve Twomey, “Reunion Marks 10 Years Outside the Tower,” Washington Post, August 2, 1991.

  33. Milton Friedman, Preface, Capitalism and Freedom (1962, repr. Chicago: University of Chicago Press, 1982), ix.

  34. J. McLane, “Milton Friedman’s Philosophy of Economics and Public Policy,” Conference to Honor Milton Friedman on His Ninetieth Birthday, November 25, 2002, www.chibus.com.

  35. N. Bukharin and E. Preobrazhensky, The ABC of Communism: A Popular Explanation of the Program of the Communist Party of Russia, trans. Eden and Cedar Paul (1922, repr. Ann Arbor: University of Michigan Press, 1967), 340–41.

  36. The Political Economy of Policy Reform, 19.

  37. Friedman and Friedman, Two Lucky People, 603.

  7. The New Doctor Shock: Economic Warfare Replaces Dictatorship

  1. “U.S. Operations Mission to Bolivia,” Problems in the Economic Development of Bolivia, La Paz: United States Operation Mission to Bolivia, 1956, 212.

  2. Susan Sontag, Illness as Metaphor (New York: Farrar, Straus and Giroux, 1977), 84.

  3. “Bolivia Drug Crackdown Brews Trouble,” New York Times, September 12, 1984; Joel Brinkley, “Drug Crops Are Up in Export Nations, State Dept. Says,” New York Times, February 15, 1985.

  4. Jeffrey D. Sachs, The End of Poverty: Economic Possibilities for Our Time (New York: Penguin, 2005), 90–93.

  5. John Maynard Keynes, The Economic Consequences of the Peace (1919, repr. London: Labour Research Department, 1920), 220–21.

  6. Interview with the author, October 2006, New York City.

  7. Robert E. Norton, “The American Out to Save Poland,” Fortune, January 29, 1990.

  8. Interview with Jeffrey Sachs conducted June 15, 2000, for Commanding Heights: The Battle for the World Economy, www.pbs.org.

  9. “A Draconian Cure for Chile’s Economic Ills?” BusinessWeek, January 12, 1976.

  10. Sachs, The End of Poverty, 93.

  11. Sachs, Commanding Heights.

  12. Catherine M. Conaghan and James M. Malloy, Unsettling Statecraft: Democracy and Neoliberalism in the Central Andes (Pittsburgh, PA: University of Pittsburgh Press, 1994), 127.

  13. Sachs, The End of Poverty, 95.

  14. Susan Velasco Portillo, “Víctor Paz: Decreto es coyuntural, pero puede durar 10 ó 20 años,” La Prensa (La Paz), August 28, 2005.

  15. Ibid.

  16. Conaghan and Malloy, Unsettling Statecraft, 129.

  17. Alberto Zuazo, “Bolivian Labor Unions Dealt Setback,” United Press International, October 9, 1985; Juan de Onis, “Economic Anarchy Ends,” Los Angeles Times, November 6, 1985.

  18. The official’s comments are based on the recollections of the members of the emergency economic team. Velasco Portillo, “Víctor Paz: Decreto es coyuntural, pero puede durar 10 ó 20 años.”

  19. Ibid.

  20. Harlan K. Ullman and James P. Wade, Shock and Awe: Achieving Rapid Dominance (Washington, DC: NDU Press, 1996), xxv.

  21. Conaghan and Malloy, Unsettling Statecraft, 186.

  22. Peter McFarren, “48-hour Strike Hurts Country,” Associated Press, September 5, 1985; Mike Reid, “Sitting Out the Bolivian Miracle,” Guardian (London), May 9, 1987.

  23. Robert J. Alexander, A History of Organized Labor in Bolivia (Westport, CT: Praeger, 2005), 169.

  24. Sam Zuckerman, “Bolivian Bankers See Some Hope After Years of Economic Chaos,” American Banker, March 13, 1987; Waltraud Queiser Morales, Bolivia: Land of Struggle (San Francisco: Westview Press, 1992), 159.

  25. Statistics come from the Inter-American Development Bank. Morales, Bolivia, 159.

  26. Erick Foronda, “Bolivia: Paz Has Trouble Selling ‘Economic Miracle,’” Latinamerica Press 21, no. 5 (February 16, 1989): 7, cited in Morales, Bolivia, 160.

  27. Alexander, A History of Organized Labor in Bolivia, 169.

  28. Interview with Gonzalo Sánchez de Lozada conducted March 20, 2001, for Commanding Heights: The Battle for the World Economy, www.pbs.org.

  29. Peter McFarren, “Farmers’ Siege of Police Points Up Bolivia’s Drug-Dealing Problems,” Associated Press, January 12, 1986.

  30. Peter McFarren, “Bolivia—Bleak but Now Hopeful,” Associated Press, May 23, 1989.

  31. Conaghan and Malloy write that “there is little doubt that the drug trade (like the international aid that Paz received) helped soften the blows of stabilization. In addition to generating income, the injection of ‘coca-dollars’ into the banking system is believed to have helped stabilize the currency during the second half of the decade.” Conaghan and Malloy, Unsettling Statecraft, 198.

  32. Tyler Bridges, “Bolivia Turns to Free Enterprise Among Hard Times,” Dallas Morning News, June 29, 1987; Conaghan and Malloy, Unsettling Statecraft, 198.

  33. John Sedgwick, “The World of Doctor Debt,” Boston Magazine, May 1991.

  34. “Taming the Beast,” The Economist, November 15, 1986.

  35. Sachs, Commanding Heights.

  36. Peter Passell, “Dr. Jeffrey Sachs, Shock Therapist,” New York Times, June 27, 1993.

  37. “New Austerity Package Revealed,” Latin American Regional Reports: Andean Group, December 13, 1985.

  38. The banker was quoted anonymously. Zuckerman, “Bolivian Bankers See Some Hope after Years of Economic Chaos.”

  39. The Political Economy of Policy Reform, ed. John Williamson (Washington, DC: Institute for International Economics, 1994), 479.

  40. Associated Press, “Bolivia Now Under State of Siege,” New York Times, September 20, 1985.

  41. “Bolivia to Lift State of Siege,” United Press International, December 17, 1985; “Bolivia Now Under State of Siege.”

  42. Conaghan and Malloy, Unsettling Statecraft, 149.

  43. Reuters, “Bolivia Strike Crumbling,” Globe and Mail (Toronto), September 21, 1985.

  44. Peter McFarren, “Detainees Sent to Internment Camps,” Associated Press, August 29, 1986; “Bolivia: Government Frees Detainees, Puts Off Plans for Mines,” Inter Press Service, September 16, 1986.

 

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