The New York Times / September 29, 2007

It's All a Grand Capitalist Conspiracy

[based on the review below -- not to mention Klein's article in
HARPER'S -- this title is totally off-base. Klein does not advocate a
conspiracy theory.

[ not that there would be anything wrong with it. ;-) ]

By TOM REDBURN

THE SHOCK DOCTRINE: The Rise of Disaster Capitalism
By Naomi Klein
558 pages. Metropolitan Books. $28.

When Milton Friedman died last year, the acclaim for his work was
nearly universal. Even his ideological opponents, like Paul Krugman
and Lawrence Summers, treated this Nobel Prize-winning economist — who
taught for decades at the University of Chicago — with respect.

[maybe that stuff about "never speak ill of the dead" should be shelved.]

Naomi Klein will have none of it. In her new book, "The Shock
Doctrine: The Rise of Disaster Capitalism," she essentially accuses
Friedman of being the godfather of a Mafia-like gang, the Chicago
Boys, who have exploited the public disorientation associated with
catastrophes and political crises to impose an unwanted free-market
ideology on much of the world.

Ms. Klein's touchstone is Latin America, where authoritarian
governments long ruled in the interests of wealthy landowners and the
elites in charge of economic cartels, but she doesn't stop there.

Everything from the collapse of the Soviet bloc to the invasion of
Iraq, from the flooding of New Orleans to the 9/11 terrorist attacks,
in her view, have been opportunities for a particularly ruthless form
of capitalism to succeed where it otherwise would never take hold.

And when free-market advocacy alone hasn't worked, military force and
brutal repression are always at hand to cow the public, all in the
interest of promoting the privatization of public resources, the
shredding of the social safety net and opening up new markets for
foreign investors.

There's a measure of truth about the dark side of globalization in all
this, but that's a lot to lay on poor Milton.

[I haven't read Klein's book -- only the HARPER'S article -- but based
on the article, it seems unfair to say that Klein lays it all on MF.
The article sketched a political-economic picture. MF's ideas and
followers were simply the ideological icing on the cake.]

Ms. Klein pins the blame for much of the misery in the world squarely
on what she views as Friedman's misguided philosophy and the many
people in its thrall. And here she includes not only a litany of
expected conservatives like Ronald Reagan, Margaret Thatcher and
George W. Bush, but what others might think of as conventional
liberals, people like Bill Clinton and Jeffrey D. Sachs, the Columbia
University economist who advocated economic "shock therapy" in
post-socialist countries like Bolivia and Poland and [adding a _non
sequitur_] now is one of the leading proponents in the effort to
increase sharply aid to the world's poor.

[Bolivia was "socialist" before Sachs arrived? when was that?]

"Since the fall of Communism, free markets and free people have been
packaged as a single ideology that claims to be humanity's best and
only defense against repeating a history filled with mass graves,
killing fields and torture chambers," Ms. Klein writes. "Yet in the
Southern Cone, the first place where the contemporary religion of
unfettered free markets escaped from the basement workshops of the
University of Chicago and was applied in the real world, it did not
bring democracy; it was predicated on the overthrow of democracy in
country after country. And it did not bring peace but required the
systematic murder of tens of thousands and the torture of between
100,000 and 150,000 people."

Friedman's association with Gen. Augusto Pinochet, the Chilean
dictator, was indeed the worst stain on his career. His defense that
his economic advice to Pinochet was no different from what a doctor
might give a government on how to deal with an outbreak of AIDS is not
very persuasive.

[does the treatment for AIDS kill the patient, or parts of its body?
and shouldn't a medical doctor refrain from advising a Mengele?]

Moreover, it is no secret[*] that capitalism does not require a
democratic political system to thrive: China is proof of that. Ms.
Klein is not alone, either, in pointing out that many governments
serve to protect the interests of the rich, and that as inequality
grows, the threat rises that the establishment will turn to
undemocratic means to thwart the will of the majority.

[* MF argued that free markets promote political freedom. Of course,
in Redburn's defense, MF didn't equate the latter with democracy. He
didn't seem to like democracy. The individual's freedom trumps any
responsibility to the community.]

Ms. Klein exposes the hypocrisy behind those who promote free
enterprise but accept autocratic regimes to carry it out, which makes
her book a useful corrective to some of the uncritical celebrations of
the spread of globalization since the collapse of the Soviet empire.

[that seems a major contribution to me, even though others have made
the same point.]

But her argument constantly overreaches, because her goal is not
really to tame capitalism so much as to taunt it.

[oh, the poor dear! can its fragile emotions handle the taunting?]

While Ms. Klein occasionally nods to Scandinavian-style social
democracy as an alternative to the "neo-liberal" American-style model
she condemns, it turns out that nothing short of a socialist utopia —
an economy of worker collectives running environmentally benign
enterprises with nationalized banks to direct investment — will
actually do.

[what's wrong with that? why does Redburn assume that Klein is wrong
here? or that Klein's view is somehow politically incorrect?]

What she is most blind to is the necessary role of entrepreneurial
capitalism in overcoming the inherent tendency of any established
social system to lapse into stagnation, as all too many socialist
countries — and some nonsocialist ones, too — have shown. Like it or
not, without strong economic growth and its inevitable disruptions,
there is little hope for creating the healthy middle classes necessary
to sustain democracies, much less an improvement in the lot of the
poor and dispossessed Ms. Klein seeks to represent. And yes, that
means some people will become rich and powerful.

[an entrepreneur invented crack cocaine. Why do people equate "new"
with "good"? and why equate "disruptions" with "good for society"?]

[what is "economic growth," anyway? as usually defined, it is growth
of GDP. But that doesn't measure what's good for people. Instead, it
measures the growth of market-based economic activity.]

In the end, I suspect that Ms. Klein's goal in writing "The Shock
Doctrine" is not so much to persuade others to join her
anti-globalization, anti-corporatist cause as it is to reinforce the
dreams of those already convinced of its righteousness.

[as opposed to those convinced of MF's form of righteousness?]

"We did not lose the battles of ideas," she said in a recent speech to
the American Sociological Association. "We were not outsmarted and we
were not out-argued. We lost because we were crushed. Sometimes we
were crushed by army tanks, and sometimes we were crushed by think
tanks. And by think tanks I mean the people who are paid to think by
the makers of tanks."

That must be a comforting thought. If only it were that simple.

[the problem, in the end, is that Redburn's own ideology interferes
with his ability to read the book.]

Copyright 2007 The New York Times Company
-- 
Jim Devine / "The truth is at once less sinister and more dangerous."
-- Naomi Klein.

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