Klein locates the origin of this ‘disaster capitalism’ in Latin America in the 1970s. Specifically, she identifies Chile from 1973 onwards as the first country to undergo economic ‘shock treatment’ (a phrase coined by right-wing economics guru Milton Friedman). The shock that ushered in this particular programme was the coup that overthrew democratic, leftist President Salvador Allende and established a military dictatorship led by General Augusto Pinochet. Economic policy under Pinochet was designed and implemented by the ‘Chicago Boys’ – Friedman and his disciples, who saw the opportunity to put into practice their (neoliberal) theories about market liberalisation, privatisation and state retrenchment.

Naomi Klein’s brilliant new book, The Shock Doctrine: The Rise of Disaster Capitalism, describes how modern capitalism thrives on shocks and disasters. A tsunami sweeps across Asia, and developers take the chance to clear fishing communities off the coasts and build luxury hotels. Hurricane Katrina devastates Louisiana and well-connected corporations turn body retrieval into a money-making enterprise. There is nothing, it seems, that cannot be exploited to turn a profit.

The rise of disaster capitalism