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The Shock Doctrine: The Rise of Disaster Capitalism

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by Naomi Klein


  Torture as Metaphor

  From Chile to China to Iraq, torture has been a silent partner in the global free-market crusade. But torture is more than a tool used to enforce unwanted policies on rebellious peoples; it is also a metaphor of the shock doctrine’s underlying logic.

  Torture, or in CIA language “coercive interrogation,” is a set of techniques designed to put prisoners into a state of deep disorientation and shock in order to force them to make concessions against their will. The guiding logic is elaborated in two CIA manuals that were declassified in the late nineties. They explain that the way to break “resistant sources” is to create violent ruptures between prisoners and their ability to make sense of the world around them.36 First, the senses are starved of any input (with hoods, earplugs, shackles, total isolation), then the body is bombarded with overwhelming stimulation (strobe lights, blaring music, beatings, electroshock).

  The goal of this “softening-up” stage is to provoke a kind of hurricane in the mind: prisoners are so regressed and afraid that they can no longer think rationally or protect their own interests. It is in that state of shock that most prisoners give their interrogators whatever they want—information, confessions, a renunciation of former beliefs. One CIA manual provides a particularly succinct explanation: “There is an interval—which may be extremely brief—of suspended animation, a kind of psychological shock or paralysis. It is caused by a traumatic or sub-traumatic experience which explodes, as it were, the world that is familiar to the subject as well as his image of himself within that world. Experienced interrogators recognize this effect when it appears and know that at this moment the source is far more open to suggestion, far likelier to comply, than he was just before he experienced the shock.”37

  The shock doctrine mimics this process precisely, attempting to achieve on a mass scale what torture does one on one in the interrogation cell. The clearest example was the shock of September 11, which, for millions of people, exploded “the world that is familiar” and opened up a period of deep disorientation and regression that the Bush administration expertly exploited. Suddenly we found ourselves living in a kind of Year Zero, in which everything we knew of the world before could now be dismissed as “pre-9/11 thinking.” Never strong in our knowledge of history, North Americans had become a blank slate—“a clean sheet of paper” on which “the newest and most beautiful words can be written,” as Mao said of his people.38 A new army of experts instantly materialized to write new and beautiful words on the receptive canvas of our posttrauma consciousness: “clash of civilizations,” they inscribed. “Axis of evil,” “Islamo-fascism,” “homeland security.” With everyone preoccupied by the deadly new culture wars, the Bush administration was able to pull off what it could only have dreamed of doing before 9/11: wage privatized wars abroad and build a corporate security complex at home.

  That is how the shock doctrine works: the original disaster—the coup, the terrorist attack, the market meltdown, the war, the tsunami, the hurricane—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 much as the blaring music and blows in the torture cells soften up prisoners. Like the terrorized prisoner who gives up the names of comrades and renounces his faith, shocked societies often give up things they would otherwise fiercely protect. Jamar Perry and his fellow evacuees at the Baton Rouge shelter were supposed to give up their housing projects and public schools. After the tsunami, the fishing people in Sri Lanka were supposed to give up their valuable beachfront land to hoteliers. Iraqis, if all had gone according to plan, were supposed to be so shocked and awed that they would give up control of their oil reserves, their state companies and their sovereignty to U.S. military bases and green zones.

  The Big Lie

  In the torrent of words written in eulogy to Milton Friedman, the role of shocks and crises to advance his worldview received barely a mention. Instead, the economist’s passing provided an occasion for a retelling of the official story of how his brand of radical capitalism became government orthodoxy in almost every corner of the globe. It is a fairy-tale version of history, scrubbed clean of all the violence and coercion so intimately entwined with this crusade, and it represents the single most successful propaganda coup of the past three decades. The story goes something like this.

  Friedman devoted his life to fighting a peaceful battle of ideas against those who believed that governments had a responsibility to intervene in the market to soften its sharp edges. He believed history “got off on the wrong track” when politicians began listening to John Maynard Keynes, intellectual architect of the New Deal and the modern welfare state.39 The market crash of 1929 had created an overwhelming consensus that laissez-faire had failed and that governments needed to intervene in the economy to redistribute wealth and regulate corporations. During those dark days for laissez-faire, when Communism conquered the East, the welfare state was embraced by the West and economic nationalism took root in the postcolonial South, Friedman and his mentor, Friedrich Hayek, patiently protected the flame of a pure version of capitalism, untarnished by Keynesian attempts to pool collective wealth to build more just societies.

  “The major error, in my opinion,” Friedman wrote in a letter to Pinochet in 1975, was “to believe that it is possible to do good with other people’s money.”40 Few listened; most people kept insisting that their governments could and should do good. Friedman was dismissively described in Time in 1969 “as a pixie or a pest,” and revered as a prophet by only a select few.41

  Finally, after he’d spent decades in the intellectual wilderness, came the eighties and the rule of Margaret Thatcher (who called Friedman “an intellectual freedom fighter”) and Ronald Reagan (who was seen carrying a copy of Capitalism and Freedom, Friedman’s manifesto, on the presidential campaign trail).42 At last there were political leaders who had the courage to implement unfettered free markets in the real world. According to this official story, after Reagan and Thatcher peacefully and democratically liberated their respective markets, the freedom and prosperity that followed were so obviously desirable that when dictatorships started falling, from Manila to Berlin, the masses demanded Reaganomics alongside their Big Macs.

  When the Soviet Union finally collapsed, the people of the “evil empire” were also eager to join the Friedmanite revolution, as were the Communists-turned-capitalists in China. That meant that nothing was left to stand in the way of a truly global free market, one in which liberated corporations were not only free in their own countries but free to travel across borders unhindered, unleashing prosperity around the world. There was now a twin consensus about how society should be run: political leaders should be elected, and economies should be run according to Friedman’s rules. It was, as Francis Fukuyama said, “the end of history”—“the end point of mankind’s ideological evolution.”43 When Friedman died, Fortune magazine wrote that “he had the tide of history with him”; a resolution was passed in the U.S. Congress praising him as “one of the world’s foremost champions of liberty, not just in economics but in all respects”; the California governor, Arnold Schwarzenegger, declared January 29, 2007, to be a statewide Milton Friedman Day, and several cities and towns did the same. A headline in The Wall Street Journal encapsulated this tidy narrative: “Freedom Man.”44

  This book is a challenge to the central and most cherished claim in the official story—that the triumph of deregulated capitalism has been born of freedom, that unfettered free markets go hand in hand with democracy. Instead, I will show that this fundamentalist form of capitalism has consistently been midwifed by the most brutal forms of coercion, inflicted on the collective body politic as well as on countless individual bodies. The history of the contemporary free market—better understood as the rise of corporatism—was written in shocks.

  The stakes are high. The corporatist alliance is in the midst of conquering its final frontiers: the closed oil economies of the Arab
world, and sectors of Western economies that have long been protected from profit making—including responding to disasters and raising armies. Since there is not even the veneer of seeking public consent to privatize such essential functions, either at home or abroad, escalating levels of violence and ever larger disasters are required in order to reach the goal. Yet because the decisive role played by shocks and crises has been so effectively purged from the official record of the rise of the free market, the extreme tactics on display in Iraq and New Orleans are often mistaken for the unique incompetence or cronyism of the Bush White House. In fact, Bush’s exploits merely represent the monstrously violent and creative culmination of a fifty-year campaign for total corporate liberation.

  Any attempt to hold ideologies accountable for the crimes committed by their followers must be approached with a great deal of caution. It is too easy to assert that those with whom we disagree are not just wrong but tyrannical, fascist, genocidal. But it is also true that certain ideologies are a danger to the public and need to be identified as such. These are the closed, fundamentalist doctrines that cannot coexist with other belief systems; their followers deplore diversity and demand an absolute free hand to implement their perfect system. The world as it is must be erased to make way for their purist invention. Rooted in biblical fantasies of great floods and great fires, it is a logic that leads ineluctably toward violence. The ideologies that long for that impossible clean slate, which can be reached only through some kind of cataclysm, are the dangerous ones.

  Usually it is extreme religious and racially based idea systems that demand the wiping out of entire peoples and cultures in order to fulfill a purified vision of the world. But since the collapse of the Soviet Union, there has been a powerful collective reckoning with the great crimes committed in the name of Communism. The Soviet information vaults have been cracked open to researchers who have counted the dead—through forced famines, work camps and assassinations. The process has sparked heated debate around the world about how many of these atrocities stemmed from the ideology invoked, as opposed to its distortion by adherents like Stalin, Ceaus¸escu, Mao and Pol Pot.

  “It was flesh-and-blood Communism that imposed wholesale repression, culminating in a state-sponsored reign of terror,” writes Stéphane Courtois, coauthor of the contentious Black Book of Communism. “Is the ideology itself blameless?”45 Of course it is not. It doesn’t follow that all forms of Communism are inherently genocidal, as some have gleefully claimed, but it was certainly an interpretation of Communist theory that was doctrinaire, authoritarian, and contemptuous of pluralism that led to Stalin’s purges and to Mao’s reeducation camps. Authoritarian Communism is, and should be, forever tainted by those real-world laboratories.

  But what of the contemporary crusade to liberate world markets? The coups, wars and slaughters to install and maintain pro-corporate regimes have never been treated as capitalist crimes but have instead been written off as the excesses of overzealous dictators, as hot fronts of the Cold War, and now of the War on Terror. If the most committed opponents of the corporatist economic model are systematically eliminated, whether in Argentina in the seventies or in Iraq today, that suppression is explained as part of the dirty fight against Communism or terrorism—almost never as the fight for the advancement of pure capitalism.

  I am not arguing that all forms of market systems are inherently violent. It is eminently possible to have a market-based economy that requires no such brutality and demands no such ideological purity. A free market in consumer products can coexist with free public health care, with public schools, with a large segment of the economy—like a national oil company—held in state hands. It’s equally possible to require corporations to pay decent wages, to respect the right of workers to form unions, and for governments to tax and redistribute wealth so that the sharp inequalities that mark the corporatist state are reduced. Markets need not be fundamentalist.

  Keynes proposed exactly that kind of mixed, regulated economy after the Great Depression, a revolution in public policy that created the New Deal and transformations like it around the world. It was exactly that system of compromises, checks and balances that Friedman’s counterrevolution was launched to methodically dismantle in country after country. Seen in that light, the Chicago School strain of capitalism does indeed have something in common with other dangerous ideologies: the signature desire for unattainable purity, for a clean slate on which to build a reengineered model society.

  This desire for godlike powers of total creation is precisely why free-market ideologues are so drawn to crises and disasters. Nonapocalyptic reality is simply not hospitable to their ambitions. For thirty-five years, what has animated Friedman’s counterrevolution is an attraction to a kind of freedom and possibility available only in times of cataclysmic change—when people, with their stubborn habits and insistent demands, are blasted out of the way—moments when democracy seems a practical impossibility.

  Believers in the shock doctrine are convinced that only a great rupture—a flood, a war, a terrorist attack—can generate the kind of vast, clean canvases they crave. It is in these malleable moments, when we are psychologically unmoored and physically uprooted, that these artists of the real plunge in their hands and begin their work of remaking the world.

  PART 1

  TWO DOCTOR SHOCKS

  RESEARCH AND DEVELOPMENT

  We shall squeeze you empty, and then we shall fill you with ourselves.

  —George Orwell, Nineteen Eighty-Four

  The Industrial Revolution was merely the beginning of a revolution as extreme and radical as ever inflamed the minds of sectarians, but the problems could be resolved given an unlimited amount of material commodities.

  —Karl Polanyi, The Great Transformation

  CHAPTER 1

  THE TORTURE LAB

  EWEN CAMERON, THE CIA AND THE MANIACAL QUEST TO ERASE AND REMAKE THE HUMAN MIND

  Their minds seem like clean slates upon which we can write.

  —Dr. Cyril J. C. Kennedy and Dr. David Anchel on the benefits of electroshock therapy, 19481

  I went to the slaughterhouse to observe this so-called “electric slaughtering,” and I saw that the hogs were clamped at the temples with big metallic tongs which were hooked up to an electric current (125 volts). As soon as the hogs were clamped by the tongs, they fell unconscious, stiffened, then after a few seconds they were shaken by convulsions in the same way as our experimental dogs. During this period of unconsciousness (epileptic coma), the butcher stabbed and bled the animals without difficulty.

  —Ugo Cerletti, a psychiatrist, describing how he “invented” electroshock therapy, 19542

  “I don’t talk to journalists anymore,” says the strained voice at the other end of the phone. And then a tiny window: “What do you want?”

  I figure I have about twenty seconds to make my case, and it won’t be easy. How do I explain what I want from Gail Kastner, the journey that brought me to her?

  The truth seems so bizarre: “I am writing a book about shock. About how countries are shocked—by wars, terror attacks, coups d’état and natural disasters. And then how they are shocked again—by corporations and politicians who exploit the fear and disorientation of this first shock to push through economic shock therapy. And then how people who dare to resist this shock politics are, if necessary, shocked for a third time—by police, soldiers and prison interrogators. I want to talk to you because you are by my estimation among the most shocked people alive, being one of the few living survivors of the CIA’s covert experiments in electroshock and other ‘special interrogation techniques.’ And by the way, I have reason to believe that the research that was done on you in the 1950s at McGill University is now being applied to prisoners in Guantánamo Bay and Abu Ghraib.”

  No, I definitely can’t say that. So I say this instead: “I recently traveled to Iraq, and I am trying to understand the role torture is playing there. We are told it’s about getting information, but
I think it’s more than that—I think it may also have had to do with trying to build a model country, about erasing people and then trying to remake them from scratch.”

  There is a long pause, and then a different tone of voice to the reply, still strained but…is it relief? “You have just spelled out exactly what the CIA and Ewen Cameron did to me. They tried to erase and remake me. But it didn’t work.”

  In less than twenty-four hours, I am knocking on the door of Gail Kastner’s apartment in a grim Montreal old-age home. “It’s open,” comes a barely audible voice. Gail had told me she would leave the door unlocked because standing up is difficult for her. It’s the tiny fractures down her spine that grow more painful as arthritis sets in. Her back pain is just one reminder of the sixty-three times that 150 to 200 volts of electricity penetrated the frontal lobes of her brain, while her body convulsed violently on the table, causing fractures, sprains, bloody lips, broken teeth.

  Gail greets me from a plush blue recliner. It has twenty positions, I later learn, and she adjusts them continuously, like a photographer trying to find focus. It is in this chair that she spends her days and nights, searching for comfort, trying to avoid sleep and what she calls “my electric dreams.” That’s when she sees “him”: Dr. Ewen Cameron, the long-dead psychiatrist who administered those shocks, as well as other torments, so many years ago. “I had two visits from the Eminent Monster last night,” she announces as soon as I walk in. “I don’t want to make you feel bad, but it’s because of your call coming out of the blue like that, asking all those questions.”

 

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