The Shock Doctrine

I became aware of Naomi Klein's work in the first month after Hurricane Katrina, when she had made a remarkable discovery about New Orleans: in neighborhoods that had been declared habitable by Mayor Nagin there were 23, 267 uninhabited apartments that could be rented to evacuees. I said then:

If each unit houses three people, that's 70,000 out of the estimated 200,000 left permanently homeless in the aftermath of Katrina. That's over one third. Bringing them home is only a matter of political will.

Klein argued that there was indeed political will, but it was hell bent on a far different outcome.

"Reconstruction," whether in Baghdad or New Orleans, has become shorthand for a massive uninterrupted transfer of wealth from public to private hands, whether in the form of direct "cost plus" government contracts or by auctioning off new sectors of the state to corporations.

This vision was laid out in uniquely undisguised form during a meeting at the Heritage Foundation's Washington headquarters on September 13. Present were members of the House Republican Study Committee, a caucus of more than 100 conservative lawmakers headed by Indiana Congressman Mike Pence. The group compiled a list of thirty-two "Pro-Free-Market Ideas for Responding to Hurricane Katrina and High Gas Prices," including school vouchers, repealing environmental regulations and "drilling in the Arctic National Wildlife Refuge." Admittedly, it seems farfetched that these would be adopted as relief for the needy victims of an eviscerated public sector. Until you read the first three items: "Automatically suspend Davis-Bacon prevailing wage laws in disaster areas"; "Make the entire affected area a flat-tax free-enterprise zone"; and "Make the entire region an economic competitiveness zone (comprehensive tax incentives and waiving of regulations)." All are poised to become law or have already been adopted by presidential decree.

Klein had been developing this theme since before Hurricane Katrina and has now published her book on the subject, The Shock Doctrine: The Rise of Disaster Capitalism. Klein makes provocative connections between disaster capitalism and US torture policy.

In one of his most influential essays, [Milton] Friedman articulated contemporary capitalism's core tactical nostrum, what I have come to understand as "the shock doctrine". He observed that "only a crisis - actual or perceived - produces real change". When that crisis occurs, the actions taken depend on the ideas that are lying around. Some people stockpile canned goods and water in preparation for major disasters; Friedmanites stockpile free-market ideas. And once a crisis has struck, the University of Chicago professor was convinced that it was crucial to act swiftly, to impose rapid and irreversible change before the crisis-racked society slipped back into the "tyranny of the status quo". A variation on Machiavelli's advice that "injuries" should be inflicted "all at once", this is one of Friedman's most lasting legacies.

Friedman first learned how to exploit a shock or crisis in the mid-70s, when he advised the dictator General Augusto Pinochet. Not only were Chileans in a state of shock after Pinochet's violent coup, but the country was also traumatised by hyperinflation. Friedman advised Pinochet to impose a rapid-fire transformation of the economy - tax cuts, free trade, privatised services, cuts to social spending and deregulation.

It was the most extreme capitalist makeover ever attempted anywhere, and it became known as a "Chicago School" revolution, as so many of Pinochet's economists had studied under Friedman there. Friedman coined a phrase for this painful tactic: economic "shock treatment". In the decades since, whenever governments have imposed sweeping free-market programs, the all-at-once shock treatment, or "shock therapy", has been the method of choice....

Torture, or in CIA parlance, "coercive interrogation", is a set of techniques developed by scientists and designed to put prisoners into a state of deep disorientation.

Declassified CIA manuals explain how to break "resistant sources": create violent ruptures between prisoners and their ability to make sense of the world around them. First, the senses are starved (with hoods, earplugs, shackles), then the body is bombarded with overwhelming stimulation (strobe lights, blaring music, beatings). The goal of this "softening-up" stage is to provoke a kind of hurricane in the mind, and it is in that state of shock that most prisoners give their interrogators whatever they want.

The shock doctrine mimics this process precisely. The original disaster - the coup, the terrorist attack, the market meltdown - puts the entire population into a state of collective shock. The falling bombs, the bursts of terror, the pounding winds serve to soften up whole societies. Like the terrorised prisoner who gives up the names of comrades and renounces his faith, shocked societies often give up things they would otherwise fiercely protect.

These connections between Friedmanite "shock doctrine" and US torture policy are made quite vivid in this short film, based on Klein's book.