Shock Doctrine

Disaster Capitalism
• Only a Crisis actual or perceived produces real
change
-Milton Friedman Famous
20th century economist

• He Proposed radical new ideas to promote “free-market fundamentalism”

in economies
– Abolishing all trade barriers “Free Trade” and
– Cut Backs on government spending and no state intervention in markets.
– Privatization of key industrial sectors.
• But his ideas faced severe opposition around the world.
• So to implement such widely opposed policies he proposed that “ The best time
to implement such policies is when an economy encounters actual or perceived
shock”
 Some Of the Historic events of our century
and their outcomes…
• Coups in Chile 1973
Public spending cut by 50%,
80,000 imprisoned,
incomes of the rich up by 83%,
45% Population in poverty.

• Falklands War 1982

Margret Thacher privatizes Gas, Steel, Airlines and Telephone.
Declares War on Unions

• Massacres in China 1989

China imposes $1/Day Labour Rate.

• Russia 1993
Boris Yetslin attacks Russian Parliament.
All Opposition arrested
17 Billionaires created and 72 million people imporvished
 Some Of the Historic events of our century
and their outcomes…

• Terrorist Attacks on America 2001

Launches “Most Privatized War”
$130 Billion contracts given to private contractors.

• Iraq Invasion 2003

US decrees 200 Iraqi companies will be privatized.
Oil contracts given to Shell and British Petroleum.

• Natural Disaster Sri Lanka 2004

35,000 Dead.
Fishermen not allowed to occupy and build homes at coastlines.
Beaches and coastline privatized and handed over to Private Hoteliers.
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