Saving Haiti from disaster capitalism

Haiti becomes a target for economic "shock therapy"

Naomi Klein's book The Shock Doctrine warned of the rise of "disaster capitalism", under which governments and corporations use disasters as a chance to push through free-market policies unachievable in times of stability.

Where most see a crisis, neoliberal actors spy new market opportunities. And with poor countries desperate for any kind of aid, they are often forced to carry out extensive privatisation, deregulation and wage cuts in return.

Following the devastation inflicted on Haiti by Tuesday's earthquake, it's clear that the country has become a target for such economic "shock therapy". Over at Left Foot Forward, Adam Ramsay (recently interviewed by the NS) notes that some right-wing institutions have explicitly declared their intention to use the disaster to further a corporate agenda.

In the introduction to a paper on Haiti, originally titled "Amidst the Suffering, Crisis in Haiti Offers Opportunities to the US", the Heritage Foundation, a conservative think tank, declared:

In addition to providing immediate humanitarian assistance, the US response to the tragic earthquake in Haiti offers opportunities to reshape Haiti's long-dysfunctional government and economy as well as to improve the public image of the United States in the region.

After just two hours, the foundation removed the offending passage and changed the title of the paper to the rather gentler "Things to Remember While Helping Haiti". But the damage was done.

Meanwhile, according to the Nation's Richard Kim, the IMF has agreed a new $100m loan to Haiti but has insisted on stringent conditions, including raising electricity prices, keeping inflation low and freezing pay for all state employees except those on the minimum wage.

As Klein argues in the video above, it is up to campaigners to insist that Haiti receive grants, not loans. With existing debts of $891m, the people of Haiti cannot afford for economic dogma to trump human need.

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George Eaton is political editor of the New Statesman.

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Sadiq Khan gives Jeremy Corbyn's supporters a lesson on power

The London mayor doused the Labour conference with cold electoral truths. 

There was just one message that Sadiq Khan wanted Labour to take from his conference speech: we need to be “in power”. The party’s most senior elected politician hammered this theme as relentlessly as his “son of a bus driver” line. His obsessive emphasis on “power” (used 38 times) showed how far he fears his party is from office and how misguided he believes Jeremy Corbyn’s supporters are.

Khan arrived on stage to a presidential-style video lauding his mayoral victory (a privilege normally reserved for the leader). But rather than delivering a self-congratulatory speech, he doused the conference with cold electoral truths. With the biggest personal mandate of any British politician in history, he was uniquely placed to do so.

“Labour is not in power in the place that we can have the biggest impact on our country: in parliament,” he lamented. It was a stern rebuke to those who regard the street, rather than the ballot box, as the principal vehicle of change.

Corbyn was mentioned just once, as Khan, who endorsed Owen Smith, acknowledged that “the leadership of our party has now been decided” (“I congratulate Jeremy on his clear victory”). But he was a ghostly presence for the rest of the speech, with Khan declaring “Labour out of power will never ever be good enough”. Though Corbyn joined the standing ovation at the end, he sat motionless during several of the applause lines.

If Khan’s “power” message was the stick, his policy programme was the carrot. Only in office, he said, could Labour tackle the housing crisis, air pollution, gender inequality and hate crime. He spoke hopefully of "winning the mayoral elections next year in Liverpool, Manchester and Birmingham", providing further models of campaigning success. 

Khan peroration was his most daring passage: “It’s time to put Labour back in power. It's time for a Labour government. A Labour Prime Minister in Downing Street. A Labour Cabinet. Labour values put into action.” The mayor has already stated that he does not believe Corbyn can fulfil this duty. The question left hanging was whether it would fall to Khan himself to answer the call. If, as he fears, Labour drifts ever further from power, his lustre will only grow.

George Eaton is political editor of the New Statesman.