The Shock Doctrine: The Rise of Disaster Capitalism is a book written in 2007 by Naomi Klein, a Canadian author and social activist. In the book, Klein explains that economic policies that favor businesses over government control, promoted by economist Milton Friedman and the Chicago school of economics, have become widespread worldwide. She calls this strategy "disaster capitalism." According to Klein, leaders use the confusion caused by natural disasters, wars, and other emergencies to introduce policies that are often unpopular, such as reducing government rules and transferring public services to private companies. These policies, referred to as "shock therapy," benefit corporations while making it harder for people to resist because they are too busy dealing with the crisis. The book argues that free market policies are not always welcomed by people in the areas where they are introduced. It also claims that some human-caused events, like the Iraq War, were planned to create conditions for pushing these policies forward. Some critics say the book simplifies complex political issues, while others praise it as an important and powerful work. The book was the basis for a 2009 documentary film with the same name, directed by Michael Winterbottom.

Synopsis

The book is divided into seven parts with a total of 21 chapters.

Part 1 begins with a chapter about psychiatric shock therapy and secret experiments carried out by psychiatrist Ewen Cameron with the help of the Central Intelligence Agency. The second chapter introduces Milton Friedman and his Chicago school of economics, which Klein describes as leading a movement that supports free markets with fewer rules than those before the Great Depression.

Part 2 discusses the use of the "shock doctrine" to change economies in South America during the 1970s. It focuses on the 1973 coup in Chile led by General Augusto Pinochet, influenced by the Chicago Boys—a group of Chilean economists who studied under Friedman and were supported by the CIA. Klein connects torture with economic shock therapy.

Part 3 covers efforts to use the shock doctrine without extreme violence. Klein explains that Margaret Thatcher used a mild form of shock "therapy" during the Falklands War, while free-market reforms in Bolivia happened because of existing economic problems and the influence of Jeffrey Sachs.

Part 4 describes how Klein believes the shock doctrine was used in Poland, China, South Africa, Russia, and the Four Asian Tigers. In Poland, she explains how the left-leaning trade union Solidarity won the 1989 legislative elections but later used the shock doctrine due to pressure from the International Monetary Fund. In China, she mentions the 1989 Tiananmen Square Protests and economic changes. In South Africa, she notes that ending apartheid led to economic policies that conflicted with the Freedom Charter. In Russia, she describes how Boris Yeltsin created an economic system that led to an oligarchy after the Soviet Union fell. She also explains how the 1997 Asian financial crisis forced the Tiger Nations to sell state-owned businesses to foreign companies.

Part 5 introduces the "Disaster Capitalism Complex," a network of private companies that profit from disasters. Klein compares this to the Military Industrial Complex, explaining both use strategies that mix private and public interests, such as people moving between government and business roles.

Part 6 discusses the use of "shock and awe" during the 2003 invasion of Iraq and the occupation that followed. Klein describes this as the most complete use of the shock doctrine, involving the privatization of Iraqi state-owned businesses, which led to unemployment and contributed to an insurgency.

Part 7 focuses on the winners and losers of economic shock therapy. It explains how small groups may benefit by living in wealthy areas, while many people face poor public services, lower wages, and higher unemployment. Klein mentions economic changes after Hurricane Katrina, the 2004 Sri Lanka Tsunami, and Israel's policies toward Palestinians.

The Conclusion explains the growing opposition to the "shock doctrine" and institutions like the World Bank and IMF that support it. It highlights positive changes in South America and Lebanon after 2006, where leaders are reducing free-market policies, along with increased activism in South Africa and China.

Reception

Paul B. Farrell of the Dow Jones Business News said The Shock Doctrine "may be the most important book on economics in the 21st century." In The Guardian, John Gray called it one of the "very few books that really help us understand the present," describing it as "important and powerful." William S. Kowinski of the San Francisco Chronicle praised Klein's writing and said she "may have explained the main story of our time." In The Irish Times, Tom Clonan wrote that Klein "shows readers in a clear and calm way" how neoconservative leaders were connected to major events that "led to the loss of millions of lives."

In The Los Angeles Times, Richard Rayner said, "Not everyone will agree with her, but her work follows the style of reporters like Izzy Stone and Upton Sinclair. Klein challenges assumptions and makes readers think—her book is exciting, troubling, and dark." Stephen Amidon of the New York Observer said Klein's ideas apply to the Iraq War and noted that "from Naomi Klein's perspective, events like the decision to allow the looting of cultural heritage make sense." Shashi Tharoor praised the book's "carefully written notes" and said Klein has become a leading critic of globalization. Katy Guest of The Independent called the book "a clear explanation of how big businesses and governments use global crises for their own benefit." Juan Santos, a 2016 Nobel Peace Prize winner, said the book is "as exciting as a mystery novel and as well-researched as top journalism."

The Shock Doctrine was named one of the best books of 2007 by The Village Voice, Publishers Weekly, The Observer, and The Seattle Times. In 2019, The Guardian ranked it the 18th greatest book since 2000.

Joseph Stiglitz, a Nobel Laureate and former World Bank economist, wrote in The New York Times that the comparison between economic shock therapy and psychological experiments by Ewen Cameron was "exaggerated and not convincing." He said Klein is not an academic and that her book "simplifies complex ideas." He also claimed that "the case against these policies is stronger than Klein's argument" and that the book "describes well how political actions forced difficult economic policies on countries." Shashi Tharoor wrote in The Washington Post that Klein's criticism of capitalism goes further than previous arguments. He also said Klein "often sees conspiracies where others see ordinary human behavior, like mistakes and greed."

Sociologist Ulrich Beck imagined a society where risk is treated as a product traded in global markets. Klein noted this idea shows that disasters and capitalism are closely connected. Some scholars have praised Klein for her work on how disasters are used as tools in global events.

In The London Review of Books, Stephen Holmes criticized The Shock Doctrine as "naive" and said it mixes "free market ideas" with "harmful corporate actions." John Willman of The Financial Times called it "a poorly written book that combines unrelated events into a misleading argument." Tom Redburn of The New York Times said Klein ignores the role of entrepreneurs in helping societies avoid stagnation.

Jonathan Chait of The New Republic wrote that Klein "does not pay much attention to right-wing ideas" and said she "does not understand neoconservatism." Robert Cole of The Times said Klein criticizes the "disaster capitalism complex" but does not clearly explain why free market ideas are wrong.

Economist Tyler Cowen called Klein's arguments "ridiculous" and the book "a disaster in economics." He said the book includes "made-up claims," such as the idea that Margaret Thatcher caused the Falkland Islands crisis to force capitalism on the public. Johan Norberg of the Cato Institute said Klein's analysis is "completely wrong" and criticized her use of statistics, including her description of the 1989 Tiananmen Square protests. Klein responded by saying Norberg and Chait misunderstood her arguments, explaining that her book is about a "complex trend" rather than one person, like Milton Friedman. Norberg said Klein only defended one of his criticisms and called her statistics "useless."

Later comments

In an article about the COVID-19 pandemic, Klein wrote in 2020 that a "Pandemic Shock Doctrine" was beginning to appear. He named it the "Screen New Deal."