The Shock Doctrine by Naomi Klein – A Summary

Naomi Klein is one of the leading thinkers in the anti-capitalist movement and this book is one of the most important historical narratives of this century.

Taken from the web site –

‘At the most chaotic juncture in Iraq’s civil war, a new law is unveiled that would allow Shell and BP to claim the country’s vast oil reserves…. Immediately following September 11, the Bush Administration quietly out-sources the running of the “War on Terror” to Halliburton and Blackwater…. After a tsunami wipes out the coasts of Southeast Asia, the pristine beaches are auctioned off to tourist resorts…. New Orleans’s residents, scattered from Hurricane Katrina, discover that their public housing, hospitals and schools will never be reopened…. These events are examples of “the shock doctrine”: using the public’s disorientation following massive collective shocks – wars, terrorist attacks, or natural disasters — to achieve control by imposing economic shock therapy.’

 My summary –

The Shock Doctrine is the story of how “free market” policies have come to dominate the world. Klein systematically explores how neo-liberal economic policies have been pushed through following ‘shocks’ – typically either natural disasters or wars ore oppressive state apparatuses.

Klein argues that these policies work against the interests of the majority because they transfer wealth and power from the people to the global corporate elite, thus why elites need to implement these policies of in times of shock following disaster.

The book traces the origins of the ‘shock doctrine’ back fifty years, to the University of Chicago under Milton Friedman and follows the application of these ideas through contemporary history, showing in detail how the neo-liberal agenda has been pushed through in several countries following shocks

Some of the events Klein covers include –

  • Pinochet’s coup in Chile in 1973,  
  • The Falklands War in 1982,  
  • The Tiananmen Square Massacre in 1989,  
  • the collapse of the Soviet Union in 1991,  
  • the Asian Financial crisis in 1997  
  • The war in Iraq 2003 
  • Hurricane Katrina 2006 

All of the above are cases where the Corporate Elite, often in conjunction with the US government and oppressive regimes in some of the countries above have sought to profit out of times of disaster. Most of feel sympathy for people at such times – neo-liberalists see opportunity.

Once again, for me, the most important argument Klein makes is that Neo-Liberalists require situations of Shock to push through their policies of privatisation, deregulation and cut backs to public spending because the majority of people would not accept such policies because they mean a transfer of wealth and power to corporate elites.

Towards the end of the book, Klein talks about an extremely worrying trend in the USA – which is the privatisation of war and security – both of which are used in times of disaster – and we now have a situation where Capitalism benefits from disaster.

All in all this is an excellent book highlighting the links between advanced capitalism and growing human misery – as Klein says, you should read it and make yourself shock resistant.

NB – SOME MIGHT ARGUE THIS IS NOW GOING ON IN THE UNITED KINGDOM – WE ARE GOING THROUGH AN ‘ECONOMIC CRSIS’ (IN SHOCK) AND SO MILLIONNAIRE TORIES ARE NOW CUTTING PUBLIC SPENDING AND OUTSOURCING MORE AND MORE OF OUR PUBLIC SERVICES TO THE PRIVATE SECTOR!

See also –

http://www.naomiklein.org/shock-doctrine – the web site is an excellent resource that provides more contemporary examples of how neo-liberalism shafts the majority.

http://www.zimbio.com/watch/iIZMtUS-owU/The+Shock+Doctrine/The+Shock+Doctrine

http://www.youtube.com/watch?v=FPTBZrBmlfI

http://www.youtube.com/watch?v=dubkrQ7HfG8

Neo- liberalism is an economic and political ideology that believes state control over the economy is undesirable and seeks to transfer control of the economy from the state to the private sector. It gained popularity amongst politicians and influential economists following the economic crisis of the late 1970s. It involves three main policies –

  • Deregulation – Nation States placing less restraint on private industry. In practise this means fewer laws that restrict companies making a profit – making it easier for companies to fire workers, pay them less, and allowing them to pollute.
  • Privatisation – where possible public services such as transport and education should be handed over to private interests for them to run for a profit.
  • Cut backs in public spending – taxes should be low and so investment in public services would be cut back.
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This entry was posted in Global Development, Globalisation, Social Theory (A2), Transnational corporations, War and conflict and tagged , , . Bookmark the permalink.

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