Shock Doctrine 2

By | July 23, 2020

He launched a student exchange program at Latin American educational institutions and the University of Chicago so that Latin American students could return to their home countries and continue to mobilize public opinion for the miraculous benefits of the open market and capitalism. Continue to implement economic reforms easily during (natural or artificially) crises. The central idea behind the Chicagoboys’ strategy was that it would be impossible to oppose liberalism if its economic policies were implemented quickly and strictly.

Tactics of dictatorship and state repression for the implementation of anti-people economic reforms:


Economic reforms based on shock therapy were often reinforced by dictatorial state repression. In order to change the economic system (and promote open market) in a country, the people cannot be subjugated just by creating an economic crisis, but in order to quell public anger, the rulers sometimes have to take drastic measures such as suspending democratic rights. The main reason for public outrage is the unemployment created by the privatization of social security institutions in the name of austerity measures and implementation of the open market economy.


The formation of an interim government following the military invasion of Iraq in 2003 is a clear example of the suspension of the democratic rights of the people. Refuses to privatize industry In doing so, US administrator Paul Bremer set up an interim government to deprive them of their powers, saying “the Iraqi people are not ready for a democratic election yet, cancel the election.”


Similarly, in the southern part of South America (Argentina, Uruguay, Chile), which was the epicenter of the Chicago Boys’ experiments and ideological battles, there was a complete ban on public gatherings and the expression of political dissent. The people were forced to accept unpopular economic reforms by closing their mouths Governments have carried out widespread human rights abuses in order to scare people away from their economic rights.


The most egregious example is the South American country of Chile, where a military dictator, General Augusta Pinochet, violently killed or disappeared 3,200 people in the early days of his rule, imprisoned 80,000 people and killed 200,000. Was forced to leave the country ۔ In all, between one and one and a half million people in the southern region of South America were imprisoned where their willpower was broken through violence and coercion. The act of coercion was not the brainchild of a mad American, but a deliberate plan to subdue the people (under the policies proposed by the Chicago Boys).

For the successful implementation of economic shock therapy, it is necessary to completely silence or eliminate political and ideological opponents. Political opponents are not the direct target of economic shock therapy, but the resulting economic measures are so painful and unpopular. Governments are forced to eradicate any kind of practical or ideological opposition through brutal repression. In countries where there is a strong historical tradition of national self-determination and workers’ solidarity, the governments of these unpopular and There are many obstacles and oppositions to the implementation of exploitative economic policies. The most important of these threats is the existence of an organized and nationwide popular uprising, which must be ended. And subjected to barbaric atrocities, so that no organized local resistance to illegal US occupation could emerge.


Even more dangerous than this popular uprising are the ideological opponents who create hatred and disgust among the people against the occupying ruling classes. ۔ In South America, for example, a large number of left-wing intellectuals, leaders, and activists were imprisoned, killed, or deported. There were laborers and farmers. The situation was similar in Argentina, where the majority of those imprisoned and tortured were union workers and farmers who called for agrarian reform and social security schemes.

In South America, state violence, enforced disappearances, and state-sponsored killings became so commonplace that terror and fear set in. People stopped protesting. Thus, the implementation of neoliberal economic reforms continued successfully. Free Governments did not face any significant resistance in the political arena and could easily have cracked down on political opponents by declaring them terrorists. And those who held opposing views could be discredited by the force of propaganda. With no room for political discussion and political action, the people had no choice but to accept exploitative economic reforms and oppressive rulers.


Economic shock therapy introduced in the 1970s has led to poverty, backwardness and panic in human populations. Economic Shock Therapy forces people to change their traditional way of thinking and embrace an open market economy. Time was used. But these economic shocks had dire social consequences. Privatization of state-owned enterprises, cuts to public welfare schemes in the name of savings, and the abolition of laws designed to protect workers have led to mass unemployment. Similarly, the removal of government control over the prices of basic necessities (water, bread, ghee) made workers’ earnings worthless and created a storm of inflation, hunger and poverty.


The ruler of Argentina, Juan Perón, adopted a relatively secretive and indirect method of instilling fear and terror in the minds of the people. Do not dare to disagree or protest over policies ۔ Although the death toll was low, it was enough to give the public the impression that the government could go to any lengths to implement neo-liberal economic reforms. Fear and despair arose. The people were either frightened by any protest against the dictatorial regimes or their financial situation had deteriorated to such an extent that they had to maintain the relationship of body and soul. It was difficult.

The above examples illustrate that since the method of economic shock therapy is not sufficient to implement reforms, most governments also use state coercion and violence to make the process a success.


But the question is, who benefits from policies based on economic shocks? In the next section we will see that in this regard some classes are the beneficiaries and some are the losers.

Advantages and disadvantages of Shock Doctrine:


This process of economic reform is beneficial to the very rich and multinational companies and extremely detrimental to the rest of the population. Eliminate government control over commodity prices through economic shock therapy Measures such as the privatization of national institutions and the unconditional permission of foreign companies to do business have a direct effect on the common man. This was the highest rate in the history of Joachim. After the implementation of the next phase of economic reforms in 1982, this rate reached 30%, while at the same time the overall volume of the economy had shrunk to 15%.


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