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Patrick Bond, Professor of Political Economy, University of the Witwatersrand School of Governance
The Political Economy of Development : Theory, power and practice
G&L Block Release – PADM5249 19 – 27 January 2017,
Donald Gordon Building Sessions 1&2
Intro to global
development mega-trends
Session 1 – Introduction to global development mega-trends
• Introduction, course architecture and modus operandi • The world’s greatest development problems • Threats posed by US President Donald Trump • Conceptual terrains: social policy, political economy,
political ecology, civil society • South African inequality: artifacts to aid comprehension • Development in theory: modernization, dependency,
neoliberalism, post-development, uneven development • Imperialism and colonisation: Africa after 1885 • Capitalism and the non-capitalist: South African forms of
accumulation by dispossession then and now • Post-war dynamics and globalisation
Political Economy of Development: Outline of session topics
Session 1 – Introduction to global development mega-trends • Introduction: the world’s greatest development problems • Threats posed by US President Donald Trump • Social policy, political economy, political ecology, civil society • SA inequality: hunting for artifacts • Development in theory: modernization, dependency, post-dependency • Imperialism and colonisation: Africa after 1885 • Capitalism and the non-capitalist: accumulation by dispossession Session 2 – Global geopolitical economy • Global political economic constraints, 1950s-present • The welfare state, the developmental state and false decolonisation • The post-War multilateral order and its contradictions • Economic ‘crisis’, financialisation and uneven development • Globalisation processes, geopolitical reactions and global civil society
Political Economy of Development: Outline of session topics
Session 3 – Global geopolitical ecology • Global political ecological constraints • Ecological modernization, sustainable development, environmental
justice and eco-socialism • Climate change and species extinction • Water, rivers and the changing oceans • Micro-environmental crises Session 4 – Africa • Conditions in post-colonial Africa • The case of Zimbabwe • Africa ‘Rising’ or Africa Resource-Cursed • Africans uprising • China in Africa
Political Economy of Development: Outline of session topics
Session 5 – The BRICS • From emerging to submerging markets • BRICS challenges to and accommodations with global power relations • World finance, the New Development Bank BRICS and the Contingent
Reserve Arrangement • Imperialism, anti-imperialism and sub-imperialism • The case of FIFA Session 6 – SA political economy • The end of apartheid and development narratives from the Freedom Charter
to RDP • South African political economy: 50 years of theory • Post-apartheid political economy: from GEAR to RDP • SA social policy since 1994 • SA civil society’s rise, fall and rise since 1994
Political Economy of Development: Outline of session topics
Session 7 – SA political ecology • Post-apartheid environmental policy • Climate and water • Environmental justice and other decommodification movements • Case studies of local environmental conflict: South Durban and iMfolozi/Fuleni • The case of AIDS advocacy Session 8 – Local developments in SA • Learning from mega-projects and Local Economic Development • South African municipal development, political democracy and service delivery
protests • Debates over household water, sanitation and electricity in Johannesburg and
Durban • The national budget, tertiary education and new pressure points • Directions of development politics
Poli Econ of Development: Objectives • comprehend basic concepts in development, social policy,
political economy, political ecology and civil society advocacy; • firmly establish a basis in political/social theory for
understanding political economy of development in policy, programmes and projects;
• assess the adoption and implications of different kinds of socio-economic and environmental policies, with case studies in specific countries and at the global scale;
• clarify how and why certain kinds of developmental mandates were given to the South African government and understand the main features of social, development, environmental and economic policies since the 1990s; and
• be capable of assessing critiques and rebuttals of arguments associated with these policies’ successes or shortcomings.
Poli Econ of Development: Objectives
In pursuing these objectives, we take very seriously the idea of ‘praxis’ epistemology, insofar as civil society advocacy can make substantial changes in policy. We seek a rigorous understanding of activists’ own understandings of how to change power relations, as well as clarity on how their targets in the public and private sectors react so as to retain power, sometimes by coercion, sometimes by co-optation, sometimes by making concessions.
The world’s greatest development problems
Group exercise: spend 10
minutes discussing the most important global ‘threats’ to
our society
political instability
multilateral institutions captured terrorism
climate change international trade (crisis, dumping)
social inequality youth unemployment
civil unrest cyber-security
organised crime human trafficking
drugs currency instability Illegal immigration
demographic change SA global competitiveness (in context Radical
Economic Transformation) Trump geopolitics ideological turmoil
poverty urbanisation
financial crisis illicit financial flows religious extremism
infrastructure
The world’s greatest development problems (2013)
The world’s greatest develop
ment problems
(2015)
45th President of the United States
• accelerated climate change • Pentagon’s alleged first-strike nuclear
capability • heightened military conflict with China • renewed alliances with authoritarian regimes • trade wars and corporate investment deals • macro-economic mismanagement in an era of
stagnation yet high volatility • new restrictions to immigration, refugees and
development aid • fusions of reactionary socio-cultural and
political tendencies in society, with US state, with mega-corporate interests
imminent human rights victims (in the US alone):
• Muslims • Latinos • other immigrants • African-Americans • indigenous people • women • LGBTI • prisoners • poor people • trade unionists • environmentalists • social justice activists
Trump’s cabinet includes top officials
from Goldman Sachs bank,
ExxonMobil oil, Koch Industries oil, Lockheed Martin
military, Pfizer drugs, General
Dynamics military, Wells Fargo bank, Amway beauty,
Hardees food and Breitbart media
1960s-90s, sanctions versus apartheid
lessons from South Africa?
Mexico City, 12 February
Trump defeated: 2016 Trump U. fraud
“How can Coca-Cola, a company that
heavily markets to and profits from
Black people, fund a platform for a presidential
nominee that is being bolstered into
office by former Grand Wizard David Duke, the KKK, and
other white supremacists?”
Advancement Project (National) Asian Pacific Environmental Network
Brave New Films Center for Biological Diversity
Climate Justice Alliance Coalition for Humane Immigrant Rights of
Los Angeles (CHIRLA) Color Of Change Common Cause
Communications Workers of America (CWA)
Daily Kos Democracy Initiative
Demos Ella Baker Center for Human Rights
Every Voice Food & Water Action Fund
Forward Together Free Press
Friends of the Earth Grassroots Global Justice Alliance
Green For All Greenpeace, Inc
Indigenous Environmental Network Jewish Voice for Peace
Jobs With Justice Labor Network for Sustainability
MoveOn.org NAACP NARAL
National Domestic Workers Alliance National LGBTQ Task Force Action Fund
National Network for Arab American Communities
Oakland Institute Oil Change International
OneAmerica One Billion Rising
Our Revolution People’s Action
People For the American Way Planned Parenthood Action Fund
Public Citizen Rainforest Action Network
Restaurant Opportunities Centers (ROC) United
RootsAction.org Sierra Club
The Story of Stuff Project United We Dream
Working Families Party World Beyond War
V-Day 350.org
who switched support to Trump,
from Obama?
world corporates: stagnant investment and
overindebtedness
• Proto-globalisation (1820-1870): Rapid global trade growth, thanks to the Industrial Revolution and the spread of European colonial rule
• Globalisation 1.0 (1870-1913): Empire building became the norm. Rapid advancements in transport and communications grew trade. But rapid change also meant volatile bouts of economic obsolescence and crisis
• Deglobalisation 1.0 (1913-1950): Limited growth, unequal outcomes and a huge debt overhang from previous decades stoked economic nationalism and protectionism. Trade fell and a collective failure to tackle deeper structural issues led to the 1930s
• Globalisation 2.0 (1950-2010): Since then, we have been on a tearaway expansion with unparalleled growth of both global trade and GDP
• Deglobalisation 2.0 (2010-?): The last financial crisis focused policymaker attention inwards and crystallised the growing sense of social disenfranchisement. A toxic mix of suppressed wages, rocketing debt and political myopia have largely destroyed the allure of globalisation.
Cycles of globalisation and deglobalisation (Bob Swarup)
20th c. South African growth/decline
deglobalisation during 1930s
globalisation and world stagnation
since 1970s
1930s-40s features of SA
economy • lower foreign direct
investment, loans, trade • globalisation disrupted by
Great Depression, WWII • birth of secondary
manufacturing industry (beyond mining equipment)
• rate of growth of the black wage share rose more than 50 percent (from 11 percent to 17 percent; black share only hit 21 percent in 1970)
• overall GDP growth rate (8%/year) from 1931-46 was fastest recorded in modern SA history
globalisation of people, deglobalisation of capital
“I sympathise with those who would minimise, rather than with those who would maximise, economic entanglement among nations. Ideas, knowledge, science, hospitality, travel – these are the things which should of their nature be international. But
let goods be homespun whenever it is reasonably and conveniently possible
and, above all, let finance be primarily national.” -John Maynard Keynes (1933), ‘National Self-Sufficiency,’ Yale Review.
are BRICS against colonialism, imperialism and neoliberalism?
or within?
in 2017, will pro-Moscow,
Washington’s new anti-Beijing stance
drive a political wedge through
the BRICS?
The world’s greatest development solutions
Group exercise: spend 5
minutes discussing the most important global solutions to
world problems
political instability
multilateral institutions captured terrorism
climate change international trade (crisis, dumping)
social inequality youth unemployment
civil unrest cyber-security
organised crime human trafficking
drugs currency instability Illegal immigration
demographic change SA global competitiveness (in context Radical
Economic Transformation) Trump geopolitics ideological turmoil
poverty urbanisation
financial crisis illicit financial flows religious extremism
infrastructure
Guus Velders, Montreal Protocol and Climate
benefits of the 1987 Montreal Protocol
Large decreases in CFC production (90%) and emissions (60-90%)
Concentrations also decreasing
Increases for HCFCs and HFCs
WMO (2007)
Guus Velders, Montreal Protocol and Climate
Decrease in production of CFCs • 1974: Molina and Rowland: CFCs affect
the ozone layer
- Public concern drop production
• ~1980: Increase in production:
- New applications
- Growth in Asia and Europe
• 1987: Montreal Protocol:
- Restricting prod/use CFCs, halons
• 2010: Global production stop CFC
TAC gaining medicines
(Brazilian and Indian generics vital – but new IP threats)
Three structural pressures behind South African AIDS denialism (from Elite Transition, Afterword, 2005)
1) Parks Mankahlana, Mbeki’s main spokesperson, in March 2000 justified to Science magazine why the government refused to provide relatively inexpensive anti-retrovirals (ARVs) like Nevirapine to pregnant, HIV-positive women: ‘That mother is going to die and that HIV-negative child will be an orphan. That child must be brought up. Who is going to bring the child up? It’s the state, the state. That’s resources, you see.’ - this is the pressure of fiscal neoliberalism
2) residual power of pharmaceutical manufacturers to defend their rights to ‘intellectual property’, i.e., monopoly patents on life-saving medicines. This pressure did not end in April 2001 when the Pharmaceutical Manufacturers Association withdrew their notorious lawsuit against the South African Medicines Act of 1997. That Act allows for parallel import or local production, via ‘compulsory licenses’, of generic substitutes for brand-name anti-retroviral medicines. Big Pharma’s power was felt in the debate over essential drugs for public health emergencies at the November 2001 Doha World Trade Organisation summit, and ever since.
3) vast size of the reserve army of labour, for this feature of capitalism allows companies to replace sick workers with desperate, unemployed people instead of providing them treatment. Case: year-long study at Africa’s largest company, Anglo American Corporation. Anglo has 160,000 employees, of whom 21% are estimated to be HIV+.
In June 2001, the Financial Times reported on Anglo’s ‘plans to make special payments to miners suffering from HIV/AIDS, on condition they take voluntary retirement.’ However, in addition to bribing workers to go home and die, Anglo told the FT, ‘treatment of employees with anti-retrovirals can be cheaper than the costs incurred by leaving them untreated.’’ In August, Anglo’s vice president for medicine, Brian Brink, bragged in Business Day about a ‘strategy [which] involved offering wellness programmes, including access to anti-retroviral treatment.’ According to that report, ‘The company believed that the cost of its programmes would eventually be outweighed by the benefits its received in gradual gains in productivity, [Brink] concluded. Although it was indeed a risky strategy, it was the only one Anglo could pursue in the face of such human suffering.’
Then in October 2001, Anglo simply retracted its promise, once cost-benefit analysis showed that 146,000 workers just weren’t worth saving. According to the FT, Brink ‘said the company’s 14,000 senior staff would receive anti-retroviral treatment as part of their medical insurance, but that the provision of drug treatment for lower income employees was too expensive.’ Brink explained the criteria for the fatal analysis: ‘[Anti-retrovirals] could save on absenteeism and improved productivity. The saving you achieve can be substantial, but we really don’t know how it will stack up. We feel that the cost will be greater than the saving.’ Financial Times
case study of successful SA-internationalist social movement advocacy for
AIDS policy and solidarity: access to Anti-RetroVirals
Gugu Dlamini
• 1990s – US promotes Intellectual Property above all, so monopoly-patented ARVs cost $10-15,000/person/year – way too expensive!
• 1997 – SA’s Medicines Act allows ‘compulsory licensing’ (breaking patent for generic producers);
• 1998 – US State Dept counters Medicines Act with ‘full court press’, Treatment Action Campaign (TAC) formed, stoning death of AIDS activist Gugu Dlamini in her Durban township due to stigmatization
• 1999 – Al Gore for president, ACTUP! opposition to Gore, Seattle WTO protest, Bill Clinton surrender, ‘AIDS dissidents’ emerge
• 2000 – AIDS conference in Durban, rise of Thabo Mbeki’s denialism • 2001 – ‘PMA-SA v Mandela’ lawsuit w Medicines sans Frontiers &
Oxfam, while TAC imports Thai, Brazilian, Indian generics
TAC’s Anti-RetroVirals campaign:
Zackie Achmat,
Nelson Mandela
• 2001 – Constitutional Court supports nevirapine, major World Trade Organisation (TRIPS) concession, Doha
• 2002 – critiques of Mbeki, Manto Tshabalala-Msimang • 2003 – ANC compels change in state policy • 2004 – generics produced in SA, global AIDS funds increase • 2016 – 3.3 million public sector recipients of ARVs • recent threats – fiscal squeeze, Pepfar cutbacks, stockouts
strategic successes: • dramatic rise in life expectancy
• policy advocacy success • commoning intellectual property
• decommodification • destratification
• deglobalisation of capital • globalisation of solidarity
Four broad-based perspectives to consider regarding development interventions:
• ‘Social policy’ refers to the set of state interventions that assist the overall development and reproduction of society at the level of households, especially in providing resources for those outside the labour market.
• ‘Political economy’ refers to the overall configuration of power relations in development policy formulation and development practices, in turn an outcome of institutional evolution, accumulation processes, social struggles and other global and domestic forces.
• ‘Political ecology’ refers to state-market-society relations affecting the natural environment, with a stress on power relations within development interventions.
• ‘Civil society’ are those associations of people that are not located within the state, the market, or households, but in between, usually engaged in direct or indirect advocacy for development, especially in project-specific interventions.
‘Development,’ state and society
Although the initial use of the contemporary idea of development is generally associated with World Bank lending in Latin America beginning in the late 1940s, the term incorporates a variety of governance-related experiences dating back centuries. For our purposes, development traditionally occurred in tandem with strong state interventions. • The ‘Developmental State’ idea emerged to describe East Asian
strategies since the 1960s, and has been used by South African leaders since Thabo Mbeki fifteen years ago.
• Earlier, the term ‘Welfare State’ described northern societies during the era of Social Democracy (especially from the 1940s-70s). But social policy can also be usefully translated to other settings, including Africa, as well as to practices and ideologies within multilateral institutions, bilateral donor relations, the aid industry and other actors in society’s reproduction.
• Civil society’s analyses, strategies, tactics and alliances were often decisive and bear careful attention.
Development in Africa
In much of Africa, after a post-colonial transition during the 1960s that some (like Frantz Fanon) considered ‘false decolonisation’ as a result of durable power structures, the continent’s economies suffered even more from what Samir Amin described as ‘maldevelopment’, especially during the era of structural adjustment (1980s-90s). GDP growth (a measure also subject to intense contestation) recovered slowly, but from 2002-11 when world commodity prices soared, the ‘Africa Rising’ meme emerged. However, that too was profoundly flawed as a result of ‘Resource Curses’ deforming African economies, political power relations, environment, society and culture. Extractive industries run by multinational corporations failed to trickle down profits and instead engaged in worsening illicit financial flows. Partly as a result, African uprisings intensified markedly after 2011.
Development in theory and context To locate our case studies of development interventions in context requires theoretical grounding. The introductory sessions of the course provide an overview of development theory as it emerged through • modernisation, • dependency, • neoliberal, • ‘post-development’ and • ‘uneven development’ phases, including their South African variations. Most vital, at the outset, is grappling with global-scale political-economic processes since the 1970s, including management of economic crises that have repeatedly set back progress in Africa and other regions reliant on commodity exports.
half-century of SA development theory:
‘race-class debate’ and underdevelopment
• liberal-modernisationist (pro-market), 1960-90s • ‘colonialism of a special type’, 1960s-90s • ‘articulations of modes of production’, 1970s • ‘fractions of capital’, late 1970s • ‘racial capitalism’, early 1980s • social history, 1980s • Regulation Theory, late 1980s • ‘Minerals-Energy Complex’, mid-1990s • ‘two economies’, developmental state, 2000s • uneven and combined development (?)
Ben Magubane (1930-2013)
On 27 May 2016 on Sina Weibo, media outlets and internet users shared American media reports with the following information: “China’s Qiaobi advertisement is accused of ethnic discrimination, incites controversy on
YouTube.” Later, we verified that the ad has been reported on or circulated by American media outlets including the Washington Post, the Los Angeles Times, and CNN; the UK’s BBC; France’s AFP, and other media outlets. It has attracted public attention in the US, the UK, and elsewhere. We’d like to express that we
have properly managed this situation and would like to add the following:
1. We have no intentions to discriminate against people of color… Ethnic discrimination is something we strongly reject and condemn.
2. We express regret over the controversy the ad has created and do not intend to shirk responsibility. We have already stopped the ad’s circulation and have
canceled several online streaming links. We hope that internet users and the media will cease sharing the video.
3. The advertisement and the surrounding controversy have hurt people of African descent. We express our apologies, and also sincerely hope internet users and
media won’t overanalyze the situation. 4. Qiaobi is a domestic Chinese brand of cleaning products. We hope that domestic
brands can continue to thrive and go global.
open letter to the Natal Parliament in 1893: “I venture to point out that both the English and the Indians spring from a common stock, called the Indo-Aryan. … A general belief seems to prevail in the Colony that the Indians are little better, if at all, than savages or the Natives of Africa. Even the children are taught to believe in that manner, with the result that the Indian is being dragged down to the position of a raw Kaffir.”
1904, opposing Johannesburg municipality’s African-Indian desegregation:
“Mixing of the Kaffirs with the Indians, I feel most strongly. I think it is very unfair to the Indian population and it is an undue tax on even the proverbial patience of my countrymen.”
1901, praising Empire to the Duke and Duchess of Cornwall:
“We fully realise the blessing of the munificent British rule. The great British Empire has not risen to its present proud position by methods of oppression.”
May 2008 – attacks kill 62 (mostly immigrants) and displace 30 000
(widespread attacks in 2010 and 2015) Ernesto Namhuavo – killers never prosecuted
The attacks on foreigners in the “dark days of May” were not xenophobia, but “naked criminal activity”, President Thabo Mbeki said in Pretoria on Thursday. “What happened during those days was not inspired by possessed nationalism, or extreme chauvinism, resulting in our communities violently expressing the hitherto unknown sentiments of mass and mindless hatred of foreigners—xenophobia,” he told a gathering at the City Hall. Speaking at a tribute to the victims of the attacks, Mbeki said the violent masses had been driven neither by antipathy nor a hated of foreigners. While some might say he was in denial of “our reality”, no one would hear ordinary South Africans saying they would attacks immigrants or hated them because they were foreigners. “I heard it said insistently that my people have turned or become xenophobic ... I wondered what the accusers knew about my people which I did not know. “And this I must also say—none in our society has any right to encourage or incite xenophobia by trying to explain naked criminal activity by cloaking it in the garb of xenophobia.”
Development in theory: modernisation
Walter Rostow’s five stages
Development in theory: modernisation
Walter Rostow’s five stages
Development in theory: modernisation
Walter Rostow’s five stages
Development in theory: modernisation
Barrington Moore’s typology • power distribution amongst elites, • economic basis of the agrarian upper-
class, • class constellation, • the distribution of power between
classes, • state autonomy vis-à-vis the dominant
class
• stress non-economic elements such as social practices, beliefs, values and customs
• diffusion and speed of change • removal of outmoded cultural and
social barriers • backward internal structures –
rather than external factors – cause underdevelopment
Development in theory: modernisation
• a situation in which the economy of certain countries is conditioned by the development and expansion of another economy to which the former is subjected.
• The relation of interdependence between two or more economies, and between these and world trade, assumes the form of dependence when some countries (the dominant ones) can expand and can be self-sustaining, while other countries (dependent ones) can do this only as a reflection of that expansion, which can have either a positive or a negative effect on their immediate development
- Theantonio Dos Santos, 1970
Development in theory: dependency
Development in theory: dependency
Core
Periphery
high value-added goods
(industrial products)
low value- added products (raw materials and cash crops)
• United Nations Economic Commission for Latin America (UN-ECLA), 1950s
• Raúl Prebisch criticised outdated international division of labour schema
• trade process produced declining terms of trade for the peripheral countries
Development in theory: dependency
• non-Marxist dependency • became Brazil’s president
during 1990s, solved monetary crisis
• methodology: • “historical-structural” • inclination to internal
analysis • open-ended process of
dependency
Development in theory: dependency
Fernando Henrique Cardoso
• Metropolis-Satellite global power structure
• “development of underdevelopment”
• the rich get richer, the poor poorer
• “lumpen-bourgeoisie” • residual colonial power
relations
Development in theory: dependency
Andre Gunder Frank
Africa, 1844
Britain, France, Belgium, Portugal, Germany, Italy, Spain
‘Scramble for Africa’
Berlin, 1884-85
Surprise for dependency: East Asia rises
Development in theory: world systems
• core, semi-periphery and periphery
• historical processes
Development in theory: world systems
Immanuel Wallerstein
Development in theory:
neoliberalism
John Williamson
(Inst for Int’l Economics)
recommits to ‘Washington
Consensus’ ten command-
ments
• celebrates biodiversity and indigenous knowledge
• eco-feminism rises against patriarchal logic of exclusion
• “bestowing attention, fostering, cherishing, honoring, tending, guarding, and loving the Earth which provides our food. The only way we can cultivate that essential ingredient of love is with community and diversity”
Development in theory: post-development
Vandana Shiva
• local culture and knowledge
• a critical stance toward established scientific discourses
• defense and promotion of localised, pluralistic grassroots movements
• distrust organised politics and development establishment.
Development in theory: post-development
Arturo Escobar
Development in theory: uneven development
uneveness of • society, • sector, • space, • scale,
• sustainability
David Harvey: The fulcrum of geographical unevenness is the differentiated return on investment that creation and/or destruction of entire built environments – and the social structures that accompany them – offer to different kinds of investors with different time horizons. Meanwhile, different places compete endlessly with one another to attract investment. In the process they tend to
amplify unevenness, allowing capital to play one local or regional or national class configuration off against others.
a territorial theory of capitalist geopolitics
Development in theory: uneven development
accumulation by dispossession
(primitive accumulation)
David Harvey A closer look at Marx’s description of primitive accumulation reveals a wide range
of processes. These include • the commodification and privatisation of land and the forceful expulsion of
peasant populations; • conversion of various forms of property rights (common, collective, state, etc.)
into exclusive private property rights; • suppression of rights to the commons; • commodification of labour power and the suppression of alternative
(indigenous) forms of production and consumption; • colonial, neocolonial and imperial processes of appropriation of assets (including
natural resources); • monetisation of exchange and taxation (particularly of land); • slave trade; and • usury, the national debt and ultimately the credit system as radical means of
primitive accumulation. -- The New Imperialism, 2003
‘stealing’: exploitation of capitalist/non-capitalist relations
Luxemburg on imperialism ‘Accumulation of capital periodically
bursts out in crises and spurs capital on to a continual extension of the market. Capital cannot accumulate without the aid of non-capitalist organisations, nor … can it tolerate their continued existence side by side with itself.
Only the continuous and progressive disintegration of non-capitalist organisations makes accumulation of capital possible.’,
The Accumulation of Capital, 1919.
uneven and combined development theory applied to international relations and politics
Lowy’s 2010 update concludes with these sentences:
‘The key ecological issues – such as the catastrophic process of global warming – are intimately linked with the logic of the capitalist system. The expansion of capital, and the destruction of the environment, are ‘combined’, and inseparable. Therefore, a struggle to save the climate has to become an anticapitalist combat, otherwise it is doomed to failure.’
Ugandan marxist Dani Nabudere
(1929-2011) ‘financialization’ thesis vindicated
The Crash of International
Finance Capital and
The Rise and Fall of Money Capital source: The Economist
Shock Doctrine by Naomi Klein
(and Milton Friedman)
according to Friedman (advisor to Pinochet after 9/11/73 coup in Chile): ‘only a crisis - actual or perceived - produces real change’
extra-economic coercion is vital for neoliberalism
Chile: ‘the most extreme capitalist makeover ever attempted anywhere... “Chicago School” revolution, as so many of Pinochet’s economists had studied under Friedman there. He coined a phrase for this painful tactic: “shock treatment”.’
