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.

Photo: Getty
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Why Ukip might not be dead just yet

Nigel Farage's party might have a second act in it. 

Remember Ukip? Their former leader Nigel Farage is carving out a living as a radio shock jock and part-time film critic. The party is currently midway through a leadership election to replace Paul Nuttall, who quit his post following their disastrous showing at the general election.

They are already facing increasing financial pressure thanks to the loss of short money and, now they no longer have any MPs, their parliamentary office in Westminster, too. There may be bigger blows to come. In March 2019, their 24 MEPs will all lose their posts when Britain leaves the European Union, denying another source of funding. In May 2021, if Ukip’s disastrous showing in the general election is echoed in the Welsh Assembly, the last significant group of full-time Ukip politicians will lose their seats.

To make matters worse, the party could be badly split if Anne-Marie Waters, the founder of Sharia Watch, is elected leader, as many of the party’s MEPs have vowed to quit if she wins or is appointed deputy leader by the expected winner, Peter Whittle.

Yet when you talk to Ukip officials or politicians, they aren’t despairing, yet. 

Because paradoxically, they agree with Remainers: Theresa May’s Brexit deal will disappoint. Any deal including a "divorce bill" – which any deal will include – will fall short of May's rhetoric at the start of negotiations. "People are willing to have a little turbulence," says one senior figure about any economic fallout, "but not if you tell them you haven't. We saw that with Brown and the end of boom and bust. That'll be where the government is in March 2019."

They believe if Ukip can survive as a going concern until March 2019, then they will be well-placed for a revival. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.