The Shock Doctrine: The Rise of Disaster Capitalism
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7. William Mervin Gumede, Thabo Mbeki and the Battle for the Soul of the ANC (Cape Town: Zebra Press, 2005), 219–20.
8. Mandela, A Long Walk to Freedom, 490–91.
9. Simple majority rule was actually delayed until 1999. Until then, executive power was shared among all the political parties that won more than 5 percent of the popular vote. Unpublished interview with Nelson Mandela by the filmmaker Ben Cashdan, 2001; Hein Marais, South Africa: Limits to Change: The Political Economy of Transition (Cape Town: University of Cape Town Press, 2001), 91–92.
10. FOOTNOTE: Milton Friedman, “Milton Friedman—Banquet Speech,” given at the Nobel Banquet, December 10, 1976, www.nobelprize.org.
11. Bill Keller, “Can Both Wealth and Justice Flourish in a New South Africa?” New York Times, May 9, 1994.
12. Mark Horton, “Role of Fiscal Policy in Stabilization and Poverty Alleviation,” in Post-Apartheid South Africa: The First Ten Years, ed. Michael Nowak and Luca Antonio Ricci (Washington DC: International Monetary Fund, 2005), 84.
13. FOOTNOTE: Juan Gabriel Valdés, Pinochet’s Economists: The Chicago School in Chile (Cambridge: Cambridge University Press, 1995), 31, 33, quoting Pinochet’s minister of economy Pablo Baraona’s definition of the “new democracy”; Robert Harvey, “Chile’s Counter-Revolution: The Fight Goes On,” The Economist, February 2, 1980 (Harvey was quoting Sergio Fernandez, the minister of the interior); José Piñera, “Wealth Through Ownership: Creating Property Rights in Chilean Mining,” Cato Journal 24, no. 3 (Fall 2004): 298.
14. James Brew, “South Africa—Habitat: A Good Home Is Still Hard to Own,” Inter Press Service, March 11, 1997.
15. David McDonald, “Water: Attack the Problem Not the Data,” Sunday Independent (London), June 19, 2003.
16. Bill Keller, “Cracks in South Africa’s White Monopolies,” New York Times, June 17, 1993.
17. Gumede cites Businessmap statistics asserting that “around 98 percent of executive directors of JSE-listed companies are white, and they preside over 97 percent of the exchange’s total value.” Simon Robinson, “The New Rand Lords,” Time, April 25, 2005; Gumede, Thabo Mbeki and the Battle for the Soul of the ANC, 220.
18. Gumede, Thabo Mbeki and the Battle for the Soul of the ANC, 112.
19. Moyiga Nduru, “S. Africa: Politician Washed Anti-AIDS Efforts Down the Drain,” Inter Press Service, April 11, 2006.
20. “Study: AIDS Slashes SA’s Life Expectancy,” Mail & Guardian (Johannesburg), December 11, 2006.
21. The rand recovered slightly by the end of the day, closing 7 percent lower. Jim Jones, “Foreign Investors Take Fright at Hardline Stance,” Financial Times (London), February 13, 1990.
22. Steven Mufson, “South Africa 1990,” Foreign Affairs [Special Edition: America and the World], 1990/1991.
23. Thomas L. Friedman, The Lexus and the Olive Branch (New York: Random House, 2000), 113.
24. Gumede, Thabo Mbeki and the Battle for the Soul of the ANC, 69.
25. Ibid., 85; “South Africa: Issues of Rugby and Race,” The Economist, August 24, 1996.
26. Nelson Mandela, “Report by the President of the ANC to the 50th National Conference of the African National Congress,” December 16, 1997.
27. Gumede, Thabo Mbeki and the Battle for the Soul of the ANC, 33–39, 69.
28. Ibid., 79.
29. Marais, South Africa, 122. FOOTNOTE: ANC, Ready to Govern: ANC Policy Guidelines for a Democratic South Africa Adopted at the National Conference, May 28–31, 1992, www.anc.org.za.
30. Ken Wells, “U.S. Investment in South Africa Quickens,” Wall Street Journal, October 6, 1994.
31. Gumede, Thabo Mbeki and the Battle for the Soul of the ANC, 88.
32. Ibid., 87.
33. Marais, South Africa, 162.
34. Ibid., 170.
35. Gumede, Thabo Mbeki and the Battle for the Soul of the ANC, 89.
36. Ginger Thompson, “South African Commission Ends Its Work,” New York Times, March 22, 2003.
37. ANC, “The State and Social Transformation,” discussion document, November 1996, www.anc.org.za; Ginger Thompson, “South Africa to Pay $3,900 to Each Family of Apartheid Victims,” New York Times, April 16, 2003; Mandela unpublished interview with Cashdan, 2001.
38. Gumede, Thabo Mbeki and the Battle for the Soul of the ANC, 108.
39. Ibid., 119.
40. South African Communist Party, “The Debt Debate: Confusion Heaped on Confusion” November-December 1998, www.sacp.org.za; Jeff Rudin, “Apartheid Debt: Questions and Answers,” Alternative Information and Development Centre, March 16, 1999, www.aidc.org.za. FOOTNOTE: Congress of South Africa Trade Unions, “Submission on the Public Investment Corporation Draft Bill,” June 25, 2004, www.cosatu.org.za; Rudin, “Apartheid Debt”; South African Communist Party, “The Debt Debate.”
41. “The Freedom Charter.”
42. Nomvula Mokonyane, “Budget Speech for 2005/06 Financial Year by MEC for Housing in Gauteng,” Speech made in the Guateng Legislature on June 13, 2005, www.info.gov.za.
43. Lucille Davie and Mary Alexander, “Kliptown and the Freedom Charter,” June 27, 2005, www.southafrica.info; Blue IQ, The Plan for a Smart Province—Guateng.
44. Gumede, Thabo Mbeki and the Battle for the Soul of the ANC, 215.
45. Scott Baldauf, “Class Struggle: South Africa’s New, and Few, Black Rich,” Christian Science Monitor, October 31, 2006; “Human Development Report 2006,” United Nations Development Programme, www.undp.org.
46. “South Africa: The Statistics,” Le Monde Diplomatique, September 2006; Michael Wines and Sharon LaFraniere, “Decade of Democracy Fills Gaps in South Africa,” New York Times, April 26, 2004.
47. Simon Robinson, “The New Rand Lords.”
48. Michael Wines, “Shantytown Dwellers in South Africa Protest the Sluggish Pace of Change,” New York Times, December 25, 2005.
49. Mark Wegerif, Bev Russell and Irma Grundling, Summary of Key Findings from the National Evictions Survey (Polokwane, South Africa: Nkuzi Development Association, 2005), 7, www.nkuzi.org.za.
50. Wines, “Shantytown Dwellers in South Africa Protest…”
51. Gumede, Thabo Mbeki and the Battle for the Soul of the ANC, 72. Internal quotation: Asghar Adelzadeh, “From the RDP to GEAR: The Gradual Embracing of Neoliberalism in Economic Policy,” Transformation 31, 1996.
52. Ibid., 70.
53. Stephen F. Cohen, Failed Crusade: America and the Tragedy of Post-Communist Russia (New York: W. W. Norton & Company, 2001), 30.
11. Bonfire of a Young Democracy: Russia Chooses “The Pinochet Option”
1. Boris Kagarlitsky, Square Wheels: How Russian Democracy Got Derailed, trans. Leslie A. Auerbach et al. (New York: Monthly Review Press, 1994), 191.
2. William Keegan, The Spectre of Capitalism: The Future of the World Economy After the Fall of Communism (London: Radius, 1992), 109.
3. George J. Church, “The Education of Mikhail Sergeyevich Gorbachev,” Time, January 4, 1988; Gidske Anderson, “The Nobel Peace Prize 1990 Presentation Speech,” www.nobelprize.org.
4. Marshall Pomer, Introduction, in The New Russia: Transition Gone Awry, eds. Lawrence R. Klein and Marshall Pomer (Stanford: Stanford University Press: 2001), 1.
5. Anderson, “The Nobel Peace Prize 1990 Presentation Speech”; Church, “The Education of Mikhail Sergeyevich Gorbachev.”
6. Mikhail Gorbachev, Foreword, in Klein and Pomer, eds., The New Russia, xiv.
7. The unprecedented joint report called for “radical reform” and insisted that borders should be opened to trade simultaneously with any stabilization plan, the two-for-one special discussed by Dani Rodrik in chapter 8. International Monetary Fund, The World Bank, Organization for Economic Cooperation and Development, European Bank for Reconstruction and Development, The Economy of the USSR: Summary and Recommendations (Washington, DC: World Bank, 1990); author’s interview with Jeffrey Sachs, October 2006, New York City.
8. “Order, Order,” The Eco
nomist, December 22, 1990.
9. Ibid.; Michael Schrage, “Pinochet’s Chile a Pragmatic Model for Soviet Economy,” Washington Post, August 23, 1991.
10. Return of the Czar, an episode of Frontline [television series for PBS], producer Sherry Jones, telecast May 9, 2000.
11. Vadim Nikitin, “’91 Foes Linked by Anger and Regret,” Moscow Times, August 21, 2006.
12. Stephen F. Cohen, “America’s Failed Crusade in Russia,” The Nation, February 28, 1994.
13. Author’s interview with Jeffrey Sachs.
14. Peter Passell, “Dr. Jeffrey Sachs, Shock Therapist,” New York Times, June 27, 1993.
15. Peter Reddaway and Dmitri Glinski, The Tragedy of Russia’s Reforms: Market Bolshevism against Democracy (Washington, DC: United States Institute for Peace Press, 2001), 291.
16. Jeffrey D. Sachs, The End of Poverty: Economic Possibilities for Our Time (New York: Penguin Books, 2005), 137.
17. Reddaway and Glinski, The Tragedy of Russia’s Reforms, 253.
18. The Agony of Reform, an episode of 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); Reddaway and Glinski, The Tragedy of Russia’s Reforms, 237, 298.
19. Mikhail Leontyev, “Two Economists Will Head Russian Reform; Current Digest of the Soviet Press,” Nezavisimaya Gazeta, November 9, 1991, digest available on December 11, 1991.
20. Chrystia Freeland, Sale of the Century: Russia’s Wild Ride from Communism to Capitalism (New York: Crown, 2000), 56.
21. Boris Yeltsin, “Speech to the RSFSR Congress of People’s Deputies,” October 28, 1991.
22. David McClintick, “How Harvard Lost Russia,” Institutional Investor, January 1, 2006.
23. Georgi Arbatov, “Origins and Consequences of ‘Shock Therapy,’” in Klein and Pomer, eds., The New Russia, 171.
24. Vladimir Mau, “Russia,” in The Political Economy of Policy Reform, ed. John Williamson (Washington, DC: Institute for International Economics, 1994), 435.
25. Ibid., 434–35.
26. Joseph E. Stiglitz, Preface, in Klein and Pomer, eds., The New Russia, xxii.
27. Joseph E. Stiglitz, Globalization and Its Discontents (New York: W. W. Norton & Company, 2002), 136.
28. Yeltsin, “Speech to the RSFSR Congress of People’s Deputies.”
29. Stephen F. Cohen, “Can We ‘Convert’ Russia?” Washington Post, March 28, 1993; Helen Womack, “Russians Shell Out as Cashless Society Looms,” Independent (London), August 27, 1992.
30. Russian Economic Trends, 1997, page 46, cited in Thane Gustafson, Capitalism Russian-Style (Cambridge: Cambridge University Press, 1999), 171.
31. The Agony of Reform.
32. Gwen Ifill, “Clinton Meets Russian on Assistance Proposal,” New York Times, March 25, 1993.
33. Malcolm Gray, “After Bloody Monday,” Maclean’s, October 18, 1993; Leyla Boulton, “Powers of Persuasion,” Financial Times (London), November 5, 1993.
34. Serge Schmemann, “The Fight to Lead Russia,” New York Times, March 13, 1993.
35. Margaret Shapiro and Fred Hiatt, “Troops Move in to Put Down Uprising After Yeltsin Foes Rampage in Moscow,” Washington Post, October 4, 1993.
36. John Kenneth White and Philip John Davies, Political Parties and the Collapse of the Old Orders (Albany: State University of New York Press, 1998), 209.
37. “Testimony Statement by the Honorable Lawrence H. Summers Under Secretary for International Affairs U.S. Treasury Department Before the Committee on Foreign Relations of the U.S. Senate, September 7, 1993.”
38. Reddaway and Glinski, The Tragedy of Russia’s Reforms, 294.
39. Ibid., 299.
40. Celestine Bohlen, “Rancor Grows in Russian Parliament,” New York Times, March 28, 1993.
41. “The Threat That Was,” The Economist, April 28, 1993; Shapiro and Hiatt, “Troops Move in to Put Down Uprising After Yeltsin Foes Rampage in Moscow.”
42. Serge Schmemann, “Riot in Moscow Amid New Calls for Compromise,” New York Times, October 3, 1993.
43. Leslie H. Gelb, “How to Help Russia,” New York Times, March 14, 1993. FOOT NOTE: Shapiro and Hiatt, “Troops Move in to Put Down Uprising After Yeltsin Foes Rampage in Moscow.”
44. Fred Kaplan, “Yeltsin in Command as Hard-Liners Give Up,” Boston Globe, October 5, 1993.
45. “The authorities declared that in the course of two days, 142 people were killed in Moscow. This was a mockery—the real number of dead had to have been several times greater. No one even tried to determine the precise number who were wounded and beaten. Thousands were arrested.” Kagarlitsky, Square Wheels, 218.
46. Reddaway and Glinski, The Tragedy of Russia’s Reforms, 427.
47. Kagarlitsky, Square Wheels, 212.
48. John M. Goshko, “Victory Seen for Democracy,” Washington Post, October 5, 1993; David Nyhan, “Russia Escapes a Return to the Dungeon of Its Past,” Boston Globe, October 5, 1993; Reddaway and Glinski, The Tragedy of Russia’s Reforms, 431.
49. Return of the Czar.
50. Nikitin, “’91 Foes Linked by Anger and Regret.”
51. Cacilie Rohwedder, “Sachs Defends His Capitalist Shock Therapy,” Wall Street Journal Europe, October 25, 1993.
52. Sachs, The End of Poverty.
53. Arthur Spiegelman, “Western Experts Call for Russian Shock Therapy,” Reuters, October 6, 1993.
54. Dorinda Elliott and Betsy McKay, “Yeltsin’s Free-Market Offensive,” Newsweek, October 18, 1993; Adi Ignatius and Claudia Rosett, “Yeltsin Now Faces Divided Nation,” Asian Wall Street Journal, October 5, 1993.
55. Stanley Fischer, “Russia and the Soviet Union Then and Now,” in The Transition in Eastern Europe, ed. Olivier Jean Blanchard, Kenneth A. Froot and Jeffrey D. Sachs, Country Studies, vol. 1 (Chicago: University of Chicago Press: 1994), 237.
56. Lawrence H. Summers, “Comment,” in The Transition in Eastern Europe, Country Studies, vol. 1, 253.
57. Jeffrey Tayler, “Russia Is Finished,” Atlantic Monthly, May 2001; “The World’s Billionaires, According to Forbes Magazine, Listed by Country,” Associated Press, February 27, 2003.
58. E. S. Browning, “Bond Investors Gamble on Russian Stocks,” Wall Street Journal, March 24, 1995.
59. Legislator Sergei Yushenkov is quoting Oleg Lobov. Carlotta Gall and Thomas De Waal, Chechnya: Calamity in the Caucasus (New York: New York University Press, 1998), 161.
60. Vsevolod Vilchek, “Ultimatum on Bended Knees,” Moscow News, May 2, 1996.
61. Passell, “Dr. Jeffrey Sachs, Shock Therapist.”
62. David Hoffman, “Yeltsin’s ‘Ruthless’ Bureaucrat,” Washington Post, November 22, 1996.
63. Svetlana P. Glinkina et al., “Crime and Corruption,” in Klein and Pomer, eds., The New Russia, 241; Matt Bivens and Jonas Bernstein, “The Russia You Never Met,” Demokratizatsiya: The Journal of Post-Soviet Democracy 6, no. 4 (Fall 1998): 630, www.demokratizatsiya.org.