Cato Institute
Briefing Paper
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ber of military conflicts involving at least one
and 60 percent of the population is discarded
state declined from almost 50 in 1990 to 31 in
or becomes a permanent underclass in coun-
tries that liberalize their economies.88 She does-
2005. The number of war deaths in 2005 was
the lowest in half a century. In 1990 there were
n't explain what she means by those figures,
nine ongoing genocides around the world. In
and she doesn't say where they come from.
2005, there was only one, in Darfur. Despite a
There is no footnote and no source.
few conspicuous exceptions, the world is
A look at the EFW data shows that Klein
becoming more peaceful in the era of "savage"
has it backwards. Poverty and unemployment
capitalism.94
are lowest in countries with the most econom-
ic freedom. In the freest fifth of countries,
The world has also become more democra-
poverty according to the United Nations is
tic, contrary to the implications of Klein's the-
15.7 percent, and in the rest of the world it is
sis. In fact, while markets have been opened,
29.8 percent. Unemployment in the freest
the world has simultaneously undergone a
quintile is 5.2 percent, which is less than half
democratic revolution. Between 1990 and
of what it is in the rest of the world. In the least
2007 the number of electoral democracies
economically free quintile, filled with the
increased from 76 to 121. In 1990 there were
kinds of restrictions on private property, busi-
more countries defined as "not free" by
It is probably
nesses, and trade that Klein claims are ways of
Freedom House than were ranked as "free." In
not a coincidence
helping the people against the powerful,
2007 there were twice as many "free" countries
as there were "not free" countries.95
poverty is 37.4 percent and unemployment is
that there are
13 percent.89
So in the absence of serious arguments
blurbs from four
Klein writes that global capitalism has
against the consequences of free markets, we
fiction writers on
lapsed into "its most savage form" since
are left with Klein's reasonable critique of tor-
1990.90 If she is right about the connection
ture, dictatorships, government corruption,
the back of the
and corporate welfare. In the final analysis, The
between free markets and deprivation, poverty
book.
Shock Doctrine boils down to the curious claim
should have increased at a dramatic speed
since then. The opposite has happened.
that Milton Friedman and free markets are
Between 1990 and 2004, extreme poverty in
bad because governments are incompetent,
developing countries was reduced from 29 to
corrupt, and cruel. It is probably not a coinci-
18 percent, according to the World Bank. This
dence that there are blurbs from four fiction
means that extreme poverty has been reduced
writers on the back of the book.
by 54,000 people every day under "savage" cap-
italism.91 And the proportion of people in
Notes
slums, which is another result of liberalization
according to Klein, has been reduced from 47
1. John Gray, "The End of the World as We Know
to 37 percent during the same time.92 Averages
It," review of The Shock Doctrine, by Naomi Klein,
The Guardian, September 15, 2007, http://books.
don't tell the whole story, so it's important to
guardian.co.uk/review/story/0,,2169201,00.html.
point out that the biggest improvements took
place in the parts of the world that liberalized
2. Joseph Stiglitz, "Bleakonomics," review of The
the most, whereas there have been setbacks in
Shock Doctrine by Naomi Klein, New York Times,
September 30, 2007, http://www.nytimes.com/
less liberalized countries.
2007/09/30/books/review/Stiglitz-t.html.
If Klein is right about the connection
between free markets and political violence, we
3. Quoted in Naomi Klein, The Shock Doctrine: The
should also have seen more war and dictator-
Rise of Disaster Capitalism (London: Allen Lane,
2007), p. 6.
ships in the era of "savage" capitalism. Klein
insists that "the world is becoming less peace-
4. See http://www.naomiklein.org/shock-doctrine
ful" without documenting it.93 She is wrong.
/short-film.
According to the Human Security Centre at
5. Milton Friedman, Capitalism and Freedom (Chi-
the University of British Columbia, the num-
15