Shock-Doctrine

Puerto Rico Selects LUMA Energy for $1.5 Billion Grid Privatization Following McKinsey's Recommendations, Quanta Services Connection Raises Questions

| Importance: 9/10

The Puerto Rico Public-Private Partnership Authority recommended LUMA Energy—a joint venture between Quanta Services and Canadian Utilities Limited—to operate Puerto Rico’s electrical transmission and distribution system for 15 years in exchange for $1.5 billion, with annual management fees of …

LUMA Energy Quanta Services Canadian Utilities Limited Puerto Rico Public-Private Partnership Authority McKinsey & Company +1 more puerto-rico privatization luma-energy prepa mckinsey +5 more
Read more →

Ecuador Indigenous Uprising Forces Moreno to Withdraw IMF-Backed Fuel Subsidy Cuts

| Importance: 7/10

President Lenín Moreno’s government enacts Decree 883, an IMF-backed austerity measure that eliminates fuel subsidies and causes significant fuel price increases, triggering massive indigenous-led protests that ultimately force complete withdrawal of the decree. The measure is part of IMF loan …

Lenín Moreno CONAIE International Monetary Fund Rafael Correa shock-doctrine imf austerity ecuador indigenous-resistance +2 more
Read more →

Hurricane Maria Devastates Puerto Rico, Exposing Infrastructure Collapse While McKinsey Continues Advising on Privatization and Austerity

| Importance: 10/10

Hurricane Maria struck Puerto Rico on September 20, 2017, knocking out the entire electrical grid, leaving thousands without shelter, and causing thousands of deaths directly or indirectly—exposing catastrophic infrastructure failures resulting from decades of austerity and debt service …

McKinsey & Company Financial Oversight and Management Board for Puerto Rico Puerto Rico Electric Power Authority Naomi Klein hurricane-maria puerto-rico disaster-capitalism shock-doctrine mckinsey +5 more
Read more →

McKinsey Proposes 'Detention Savings Opportunities': Cuts to Food, Medical Care, and Guard Supervision for Migrants

| Importance: 9/10

McKinsey consultants propose controversial ‘detention savings opportunities’ to ICE that include reducing spending on food for migrants, medical care, and supervision of detainees. An internal ICE email dated March 30, 2017 documents that McKinsey is ’looking for ways to cut or …

McKinsey & Company Immigration and Customs Enforcement (ICE) ICE career staff Migrant detainees mckinsey immigration-enforcement consulting-scandal shock-doctrine detention-conditions +3 more
Read more →

McKinsey-Designed Fiscal Plan Mandates Devastating Austerity: Pension Cuts, School Closures, Healthcare Privatization, Furloughs

| Importance: 10/10

The Financial Oversight and Management Board unanimously approved a brutal 10-year fiscal austerity plan (2017-2026) developed with McKinsey’s strategic consulting, imposing severe cuts to pensions, education, and healthcare to prioritize debt repayment to bondholders. The plan’s key …

McKinsey & Company Financial Oversight and Management Board for Puerto Rico Puerto Rico Government Rafael Torregrosa mckinsey puerto-rico austerity shock-doctrine pension-theft +5 more
Read more →

Obama Signs PROMESA Creating Unelected Fiscal Control Board to Govern Puerto Rico's $72 Billion Debt Crisis

| Importance: 9/10

President Barack Obama signed the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) into law, establishing a seven-member Financial Oversight and Management Board with sweeping powers over Puerto Rico’s government. The board, appointed by the U.S. President rather than …

Barack Obama U.S. Congress Financial Oversight and Management Board for Puerto Rico Puerto Rico Government puerto-rico promesa fiscal-control-board austerity colonial-governance +3 more
Read more →

Puerto Rico Defaults on $422 Million Bond Payment, Triggering Largest Municipal Debt Crisis in U.S. History

| Importance: 9/10

Governor Alejandro García Padilla ordered Puerto Rico’s first major default, blocking a $422 million payment on Government Development Bank bonds. This historic default was part of Puerto Rico’s unprecedented $72 billion debt crisis, representing debt larger than the island’s GDP. …

Alejandro García Padilla Puerto Rico Government Development Bank Puerto Rico Government Hedge Fund Creditors puerto-rico debt-crisis municipal-bankruptcy financial-engineering austerity +3 more
Read more →

Greece Accepts Third Bailout of €86 Billion Despite 61% Referendum Rejection Six Weeks Earlier

| Importance: 9/10

The European Stability Mechanism (ESM) board of governors approves a Memorandum of Understanding for Greece’s third bailout program worth up to €86 billion, specifying harsh reform policies Greece must fulfill despite Greek voters rejecting similar conditions by 61% to 39% in a referendum just …

Alexis Tsipras European Stability Mechanism International Monetary Fund European Central Bank European Commission +1 more shock-doctrine imf austerity greece troika +3 more
Read more →

Greeks Vote 61% 'Oxi' (No) to Reject Troika Austerity in Historic Referendum

| Importance: 9/10

Greek citizens vote decisively 61% to 39% to reject a referendum on accepting more Troika bailout conditions in exchange for increased austerity measures, in the first referendum held in Greece since 1974 and the only one in modern Greek history not concerning the form of government. The …

Alexis Tsipras Yanis Varoufakis Syriza European Commission International Monetary Fund +1 more shock-doctrine imf austerity greece troika +3 more
Read more →

Greece Accepts Second Troika Bailout of €130 Billion with 53.5% Private Debt Haircut

| Importance: 8/10

The Eurogroup endorses Greece’s Second Economic Adjustment Programme, providing €130 billion through the European Financial Stability Facility (EFSF) mechanism along with approximately €12 billion from the IMF, running until June 2015. The EFSF ultimately disburses €141.8 billion total. …

European Financial Stability Facility International Monetary Fund European Central Bank Greek private creditors shock-doctrine imf austerity greece troika +2 more
Read more →

European Commission, ECB, and IMF Form 'Troika' and Impose First Greek Bailout with Harsh Austerity

| Importance: 9/10

The European Commission, European Central Bank (ECB), and International Monetary Fund form a tripartite committee known as the ‘Troika’ and agree on a three-year €110 billion financial aid package for Greece in exchange for severe austerity measures outlined in a Memorandum of …

European Commission European Central Bank International Monetary Fund George Papandreou Angela Merkel shock-doctrine imf austerity greece troika +3 more
Read more →

Paul Bremer Issues CPA Order 39 Imposing Radical Free Market Restructuring on Occupied Iraq

| Importance: 9/10

L. Paul Bremer III, head of the U.S. Coalition Provisional Authority (CPA) occupation government in Iraq, issues Order 39 on foreign investment as part of his ‘100 Orders’ imposing what economist Joseph Stiglitz calls ‘arguably the most radical market shock therapy tried …

Paul Bremer Coalition Provisional Authority George W. Bush Iyad Allawi shock-doctrine iraq-war privatization corporate-power neoliberalism +2 more
Read more →

Paul Bremer Begins Issuing 'CPA 100 Orders' to Restructure Iraq's Economy Under Military Occupation

| Importance: 10/10

L. Paul Bremer III, appointed head of the Coalition Provisional Authority (CPA) on May 6, 2003, begins issuing binding orders with the force of law to radically transform Iraq’s economy from centralized planning to free-market capitalism. From May 6, 2003 until June 28, 2004, Bremer issues 100 …

Paul Bremer Coalition Provisional Authority George W. Bush Donald Rumsfeld Dick Cheney shock-doctrine iraq-war privatization corporate-power neoliberalism +3 more
Read more →

Argentina Declares Largest Sovereign Default in History on $100+ Billion Debt After IMF Austerity Collapse

| Importance: 10/10

President Adolfo Rodriguez Saá announces Argentina’s default on its foreign debt obligations to the International Monetary Fund and private creditors—the largest sovereign default in world history at that time, exceeding $100 billion. The default comes three days after the fall of President …

Adolfo Rodriguez Saá International Monetary Fund Fernando de la Rúa Argentine creditors shock-doctrine imf austerity argentina debt-default +2 more
Read more →

Argentina Imposes 'Corralito' Bank Account Freeze Under IMF Austerity, Triggering Mass Protests

| Importance: 9/10

The Argentine government enacts emergency measures known as the ‘corralito’ (little corral), freezing bank accounts and limiting cash withdrawals to $250 per week, triggering the final stage of a devastating economic collapse driven by IMF-imposed austerity. The freeze comes after four …

International Monetary Fund Fernando de la Rúa Domingo Cavallo Argentine Central Bank shock-doctrine imf austerity argentina financial-crisis +2 more
Read more →

Argentina Passes 'Zero Deficit Law' Under IMF Pressure, Cutting Salaries and Pensions 13%

| Importance: 8/10

The Argentine Congress passes the Zero Deficit Law under intense IMF pressure, delivering drastic cuts in public spending including 13% reductions in state salaries and pensions in a desperate attempt to satisfy creditors and maintain access to IMF loans. The law represents the culmination of four …

International Monetary Fund Fernando de la Rúa Domingo Cavallo Argentine Congress shock-doctrine imf austerity argentina structural-adjustment +1 more
Read more →

Bolivia's Cochabamba Water War: Indigenous-Led Uprising Forces Reversal of World Bank-Mandated Bechtel Privatization

| Importance: 8/10

Indigenous organizations led by CONAIE and the Coalition in Defense of Water and Life (Coordinadora) launch a massive uprising in Cochabamba, Bolivia, blocking roads and marching on the capital to protest World Bank-imposed water privatization. Throughout the 1990s, Bolivia faced increasing pressure …

Bechtel Corporation Aguas del Tunari World Bank Hugo Banzer Coalition in Defense of Water and Life +2 more shock-doctrine structural-adjustment world-bank privatization bolivia +3 more
Read more →

Ecuador President Mahuad Announces Dollarization 'Jump Into the Abyss' Amid Economic Crisis

| Importance: 7/10

Ecuadorian President Jamil Mahuad announces the country will abandon its national currency and adopt the U.S. dollar, describing the decision as ‘a jump into the abyss’ just days before making it. Mahuad’s handling of multiple crises—floods from El Niño, the collapse of oil prices, …

Jamil Mahuad Gustavo Noboa CONAIE International Monetary Fund World Bank shock-doctrine imf structural-adjustment ecuador dollarization +2 more
Read more →

Russia Begins Mass Voucher Privatization: 148 Million Citizens Given Certificates Worth 'Two Volga Cars' That Become Worthless

| Importance: 9/10

Russia launched the world’s largest privatization program, distributing vouchers worth 10,000 rubles each to approximately 148 million citizens, enabling the privatization of over 15,000 medium and large enterprises. The program was designed and implemented by Anatoly Chubais, chairman of the …

Anatoly Chubais Boris Yeltsin State Committee for State Property Management Russian Government russia privatization shock-therapy oligarchs wealth-transfer +4 more
Read more →

Russia Launches 'Shock Therapy' Economic Reforms: Price Liberalization Triggers 2,520% Inflation and Economic Collapse

| Importance: 10/10

Russian President Boris Yeltsin ordered the liberalization of foreign trade, prices, and currency, launching the radical ‘shock therapy’ economic transformation designed by Deputy Prime Minister Yegor Gaidar, a 35-year-old liberal economist advised by Harvard’s Jeffrey Sachs. The …

Boris Yeltsin Yegor Gaidar Jeffrey Sachs Harvard University International Monetary Fund +1 more shock-therapy russia shock-doctrine neoliberalism privatization +5 more
Read more →

Edward Seaga Defeats Michael Manley in Jamaica Election, Immediately Re-Engages IMF Structural Adjustment

| Importance: 7/10

Opposition Jamaica Labour Party (JLP) leader Edward Seaga wins a convincing victory over Prime Minister Michael Manley, immediately abandoning democratic socialist policies and re-engaging with the IMF after Manley had severed ties in early 1980 rather than accept the Fund’s harsh conditions. …

Edward Seaga Michael Manley International Monetary Fund Jamaica Labour Party World Bank shock-doctrine imf structural-adjustment jamaica regime-change +2 more
Read more →