The Shock Doctrine: The Rise of Disaster Capitalism
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45. Sachs, The End of Poverty, 96.
46. Sánchez de Lozada, Commanding Heights.
47. Conaghan and Malloy, Unsettling Statecraft, 149.
8. Crisis Works: The Packaging of Shock Therapy
1. A. E. Hotchner, Papa Hemingway (1966, repr. New York: Carroll & Graf, 1999), 280.
2. Jim Shultz, “Deadly Consequences: The International Monetary Fund and Bolivia’s ‘Black February,’” (Cochabamba, Bolivia: The Democracy Center, April 2005), 14, www.democracyctr.org.
3. Albert O. Hirschman, “Reflections on the Latin American Experience,” in The Politics of Inflation and Economic Stagnation: Theoretical Approaches and International Case Studies, ed. Leon N. Lindberg and Charles S. Maier (Washington, DC: Brookings Institution, 1985), 76.
4. Banco Central de la República Argentina, Memoria Anual 1985, www.bcra.gov.ar; Lawrence Weschler, A Miracle, a Universe: Settling Accounts with Torturers (New York: Pantheon Books, 1990), 152; “Brazil Refinancing Foreign Debt Load,” New York Times, July 2, 1964; Alan Riding, “Brazil’s Leader Urges Negotiations on Debt,” New York Times, September 22, 1985.
5. Robert Harvey, “Chile’s Counter-Revolution,” The Economist, February 2, 1980; World Bank, Economic Memorandum: Argentina (Washington, DC: World Bank, 1985), 17.
6. The adviser was Franklin Willis. Michael Hirsh, “Follow the Money,” Newsweek, April 4, 2005.
7. Terence O’Hara, “6 U.S. Banks Held Pinochet’s Accounts,” Washington Post, March 16, 2005.
8. United Press International, “Former Cabinet Minister Arrested in Argentina,” Seattle Times, November 17, 1984.
9. World Bank, Economic Memorandum: Argentina, page 17; “Documentación que prueba los ilícitos de Martínez de Hoz,” La Voz del Interior, October 6, 1984, cited in H. Hernandez, Justicia y Deuda Externa Argentina (Santa Fe, Argentina: Editorial Universidad de Santa Fe, 1988), 36.
10. Hernandez, Justicia y Deuda Externa Argentina, 37.
11. Ibid.
12. She described it as a “report about how to make investments in the Bahamas, Luxembourg, Panama, Switzerland, and Lichtenstein. There was also a section—quite technical—on the tax situation in these places.” Marguerite Feitlowitz, A Lexicon of Terror: Argentina and the Legacies of Torture (New York: Oxford University Press, 1998), 57.
13. Norberto Galasso, De la Banca Baring al FMI (Buenos Aires: Ediciones Colihue, 2002), 246; Adolfo Pérez Esquivel, “¿Cuándo comenzo el terror del 24 de marzo de 1976?” La Fogata, March 24, 2004, www.lafogata.org.
14. U.S. State Department, Memorandum of Conversation, Subject: Secretary’s Meeting with Argentine Foreign Minister Guzzetti, October 7, 1976, declassified, www.gwu.edu/~nsarchiv.
15. Sue Branford and Bernardo Kucinski, The Debt Squads: The US, the Banks, and Latin America (London: Zed Books, 1988), 95.
16. Matthew L. Wald, “A House, Once Again, Is Just Shelter,” New York Times, February 6, 1983.
17. Jaime Poniachik, “Cómo empezó la deuda externa,” La Nación (Buenos Aires), May 6, 2001.
18. Donald V. Coes, Macroeconomic Crises: Politics and Growth in Brazil, 1964–1990 (Washington, DC: World Bank, 1995), 187; Eghosa E. Osaghae, Structural Adjustment and Ethnicity in Nigeria (Uppsala, Sweden: Nordiska Afrikainstitutet, 1995), 24; T. Ademola Oyejide and Mufutau I. Raheem, “Nigeria,” in The Rocky Road to Reform: Adjustment, Income Distribution, and Growth in the Developing World, ed. Lance Taylor (Cambridge, MA: MIT Press, 1993), 302.
19. International Monetary Fund, Fund Assistance for Countries Facing Exogenous Shock, August 8, 2003, page 37, www.imf.org.
20. Banco Central de la República Argentina, Memoria Anual 1989, www.bcra.gov.ar.
21. “Interview with Arnold Harberger,” The Region, Federal Reserve Bank of Minneapolis, March 1999, www.minneapolisfed.org.
22. The former Chicago professor and fellow Stanley Fischer was first deputy managing director of the IMF in 1994, Raghuram Rajan was the IMF’s chief economist in 2003, Michael Mussa was director of the department of research at the IMF in 1991 and Danyang Xie was senior economist in the IMF’s African department in 2003.
23. International Monetary Fund, “Article I—Purposes,” Articles of Agreement of the International Monetary Fund, www.imf.org.
24. “Speech by Lord Keynes in Moving to Accept the Final Act at the Closing Plenary Session, Bretton Woods, 22 July, 1944,” Collected Writings of John Maynard Keynes, vol. 26, ed. Donald Moggridge (London: Macmillan, 1980), 103.
25. John Williamson, “In Search of a Manual for Technopols,” in John Williamson, ed., The Political Economy of Policy Reform (Washington, DC: Institute for International Economics, 1994), 18.
26. “Appendix: The ‘Washington Consensus,’” in The Political Economy of Policy Reform, 27.
27. Williamson, The Political Economy of Policy Reform, 17.
28. Joseph E. Stiglitz, Globalization and Its Discontents (New York: W. W. Norton & Company, 2002), 13.
29. Davison L. Budhoo, Enough Is Enough: Dear Mr. Camdessus…Open Letter of Resignation to the Managing Director of the International Monetary Fund, foreword by Errol K. McLeod (New York: New Horizons Press, 1990), 102.
30. Dani Rodrik, “The Rush to Free Trade in the Developing World: Why So Late? Why Now? Will It Last?” in Voting for Reform: Democracy, Political Liberalization and Economic Adjustment, ed. Stephan Haggard and Steven B. Webb (New York: Oxford University Press, 1994), 82. Emphasis added.
31. Ibid., 81.
32. “…[W]hatever the merits of trade reform, the causal link drawn between trade regimes and propensity to macroeconomic crisis was bad economics.” Dani Rodrik, “The Limits of Trade Policy Reform in Developing Countries,” Journal of Economic Perspectives 6, no. 1 (Winter 1992): 95.
33. Herasto Reyes, “Argentina: historia de una crisis,” La Prensa (Panama City), January 12, 2002.
34. Nathaniel C. Nash, “Turmoil, Then Hope in Argentina,” New York Times, January 31, 1991.
35. “Interview with Arnold Harberger.”
36. José Natanson, Buenos muchachos: Vida y obra de los economistas del establishment (Buenos Aires: Libros del Zorzal, 2004).
37. Paul Blustein, And the Money Kept Rolling In (and Out): Wall Street, the IMF, and the Bankrupting of Argentina (New York: PublicAffairs, 2005), 21.
38. Ibid., 24; interview with Domingo Cavallo conducted January 30, 2002, for Commanding Heights: The Battle for the World Economy, www.pbs.org; César V. Herrera and Marcelo García, “A 10 años de la privatización de YPF—Análisis y consecuencias en la Argentina y en la Cuenca del Golfo San Jorge (versión ampliada),” Centro Regional de Estudios Económicos de la Patagonia Central, January 23, 2003, www.creepace.com.ar; Antonio Camou, “Saber técnico y política en los orígenes del menemismo,” Perfiles Latinoamericanos 7, no. 12 (June 1998); Carlos Saúl Menem, speech given during a lunch with Mexican president Ernesto Zedillo, November 26, 1997, zedillo.presidencia.gob.mx. FOOTNOTE: Interview with Alejandro Olmos Gaona, “Las deudas hay que pagarlas, las estafas no,” LaVaca, January 10, 2006, www.lavaca.org.
39. “Menem’s Miracle,” Time International, July 13, 1992.
40. Cavallo, Commanding Heights.
9. Slamming the Door on History: A Crisis in Poland, a Massacre in China
1. Leszek Balcerowicz, “Losing Milton Friedman, A Revolutionary Muse of Liberty,” Daily Star (Beirut), November 22, 2006.
2. Michael Freedman, “The Radical,” Forbes, February 13, 2006.
3. Joseph Fewsmith, China Since Tiananmen: The Politics of Transition (Cambridge: Cambridge University Press, 2001), 35.
4. The embryo of Solidarity was a semi-independent union called Free Labour Unions of the Coast, formed in 1978. This was the group that organized the strikes that eventually led to the creation of Solidarity.
5. Thomas A. Sancton, “He Dared to Hope,” Time, January 4, 1982.
6. Ibid.
7. “Solidarity’s Programme Adopted by the First National Congress,” in Peter Rain
a, Poland 1981: Towards Social Renewal (London: George Allen & Unwin, 1985), 326–80.
8. Sancton, “He Dared to Hope.”
9. Egil Aarvik, “The Nobel Peace Prize 1983 Presentation Speech,” Oslo, Norway, December 10, 1983, www.nobelprize.org.
10. Lawrence Weschler, “A Grand Experiment,” The New Yorker, November 13, 1989.
11. Jeffrey D. Sachs, The End of Poverty: Economic Possibilities for Our Time (New York: Penguin, 2005), 120; Magdalena Wyganowska, “Transformation of the Polish Agricultural Sector and the Role of the Donor Community,” USAID Mission to Poland, September 1998, www.usaid.gov.
12. James Risen, “Cowboy of Poland’s Economy,” Los Angeles Times, February 9, 1990.
13. Sachs, The End of Poverty, 111.
14. Weschler, “A Grand Experiment.”
15. Sachs, The End of Poverty, 114.
16. Ibid.; Weschler, “A Grand Experiment.”
17. Interview with Jeffrey Sachs conducted June 15, 2000, for Commanding Heights: The Battle for the World Economy, www.pbs.org.
18. Przemyslaw Wielgosz, “25 Years of Solidarity,” unpublished lecture, August 2005. Courtesy of the author.
19. Sachs, The End of Poverty, 117. FOOTNOTE: Randy Boyagoda, “Europe’s Original Sin,” The Walrus, February 2007, www.walrusmagazine.com.
20. Weschler, “A Grand Experiment”; Interview with Gonzalo Sánchez de Lozada conducted March 20, 2001, for Commanding Heights: The Battle for the World Econom y, www.pbs.org.
21. Weschler, “A Grand Experiment.”
22. Balcerowicz, “Losing Milton Friedman.”
23. “Walesa: U.S. Has Stake in Poland’s Success,” United Press International, August 25, 1989.
24. The quotation is from Zofia Kuratowska, “Solidarity’s foremost expert on health services and now a leading legislator.” Weschler, “A Grand Experiment.”
25. John Tagliabue, “Poles Approve Solidarity-Led Cabinet,” New York Times, September 13, 1989.
26. Weschler, “A Grand Experiment”; “Mazowiecki Taken Ill in Parliament,” Guardian Weekly (London), September 17, 1989.
27. Anne Applebaum, “Exhausted Polish PM’s Cabinet Is Acclaimed,” Independent (London), September 13, 1989.
28. Weschler, “A Grand Experiment.”
29. Ibid.
30. Leszek Balcerowicz, “Poland,” in The Political Economy of Policy Reform, ed. John Williamson (Washington, DC: Institute for International Economics, 1994), 177.
31. Ibid., 176–77.
32. Ibid., 163.
33. Thomas Carothers, “The End of the Transition Paradigm,” Journal of Democracy 13, no. 1 (January 2002): 6–7.
34. George J. Church, “The Education of Mikhail Sergeyevich Gorbachev,” Time, January 4, 1988.
35. Francis Fukuyama, “The End of History?” The National Interest, Summer 1989. FOOTNOTE: Francis Fukuyama, The End of History and the Last Man (New York: Free Press, 1992).
36. Milton Friedman and Rose D. Friedman, Two Lucky People: Memoirs (Chicago: University of Chicago Press, 1998), 603.
37. Fukuyama, “The End of History?”
38. Ibid.
39. Friedman and Friedman, Two Lucky People, 520–22.
40. Ibid., 558; Milton Friedman, “If Only the United States Were as Free as Hong Kong,” Wall Street Journal, July 8, 1997.
41. Maurice Meisner, The Deng Xiaoping Era: An Inquiry into the Fate of Chinese Socialism, 1978–1994 (New York: Hill and Wang, 1996), 455; “Deng’s June 9 Speech: ‘We Face a Rebellious Clique’ and ‘Dregs of Society,’” New York Times, June 30, 1989.
42. Friedman had been invited to China in various capacities—as a conference participant, a university lecturer—but in his memoirs he characterized it as a state visit: “I was mostly the guest of governmental entities,” Friedman writes. Friedman and Friedman, Two Lucky People, 601.
43. Ibid., 517, 537, 609. Emphasis in original.
44. Ibid., 601–602.
45. Wang Hui, China’s New Order: Society, Politics, and Economy in Transition (Cambridge, MA: Harvard University Press, 2003), 45, 54.
46. Ibid., 54.
47. Ibid., 57.
48. Meisner, The Deng Xiaoping Era, 463–65.
49. “China’s Harsh Actions Threaten to Set Back 10-Year Reform Drive,” Wall Street Journal, June 5, 1989.
50. “Deng’s June 9 Speech: ‘We Face a Rebellious Clique’ and ‘Dregs of Society.’” FOOTNOTE: Henry Kissinger, “The Caricature of Deng as a Tyrant Is Unfair,” Washington Post, August 1, 1989.
51. Interview with Orville Schell conducted on December 13, 2005, for PBS’s Frontline episode “The Tank Man”; full interview transcript available at www.pbs.org.
52. Wang, China’s New Order, 65–66.
53. Meisner, The Deng Xiaoping Era, 482. FOOTNOTE: David Harvey, A Brief History of Neoliberalism (Oxford: Oxford University Press, 2005), 135.
54. Mo Ming, “90 Percent of China’s Billionaires Are Children of Senior Officials,” China Digital Times, November 2, 2006, www.chinadigitaltimes.net.
55. Human Rights Watch, “Race to the Bottom: Corporate Complicity in Chinese Internet Censorship,” Human Rights Watch 18, no. 8(c) (August 2006): 28, 43; Wang, China’s New Order, 65.
56. Friedman and Friedman, Two Lucky People, 516.
57. Jaroslaw Urbanski, “Workers in Poland After 1989,” Workers Initiative Poland, paspartoo.w.interia.pl; Weschler, “A Grand Experiment.”
58. Mark Kramer, “Polish Workers and the Post-Communist Transition, 1989–93,” Europe-Asia Studies, June 1995; World Bank, World Development Indicators 2006, www.worldbank.org; Andrew Curry, “The Case against Poland’s New President,” New Republic, November 17, 2005; Wielgosz, “25 Years of Solidarity.”
59. Wielgosz, “25 Years of Solidarity.”
60. David Ost, The Defeat of Solidarity: Anger and Politics in Postcommunist Europe (Ithaca, NY: Cornell University Press, 2005), 62.
61. Statistical Yearly (Warsaw: Polish Main Statistical Office, 1997), 139.
62. Kramer, “Polish Workers and the Post-Communist Transition, 1989–93.”
10. Democracy Born in Chains: South Africa’s Constricted Freedom
1. “South Africa; Tutu Says Poverty, Aids Could Destabilise Nation,” AllAfrica.com, November 2001.
2. Martin J. Murray, The Revolution Deferred (London: Verso, 1994), 12.
3. “ANC Leader Affirms Support for State Control of Industry,” Times (London), January 26, 1990.
4. Ismail Vadi, The Congress of the People and Freedom Charter Campaign, foreword by Walter Sisulu (New Delhi: Sterling Publishers, 1995), www.sahistory.org.za.
5. Nelson Mandela, A Long Walk to Freedom: The Autobiography of Nelson Mandela (New York: Little, Brown and Company, 1994), 150.
6. “The Freedom Charter,” adopted at the Congress of the People, Kliptown, on June 26, 1955, www.anc.org.za.