NAOMI KLEIN: This drive to the privatize every aspect of the state of government is about a 35-year-old campaign. Many people date it, many historians date it to the 1973 coup in Chile, which is something that is interesting in terms of Jeremy’s research, because he talks about how Blackwater are now hiring Chileans to go to Iraq, and I’ll let him do that. But the first example of the attempt to build a fully privatized corporate utopia was in Chile in 1973 after Pinochet’s coup, when he joined up with a team of economists from the University of Chicago to engage in that experiment.
It is a different kind of colonial project. In Latin America, this project, which is often called neoliberalism, is referred to as neocolonialism. The first stage of colonialism was the opening of the veins of Latin America, as Eduardo Galeano describes it, the pillaging of raw resources, the exporting of raw resources. The second stage of colonialism -- and, of course, that first stage never fully goes away -- was pillaging the state. What had been constructed in the aftermath of the Great Depression and during the post-war boom years -- the construction of healthcare systems, education systems, roadways, railways -- but this is really what was launched in Chile with the help of the Chicago boys: the strip mining of the state itself.
The way I imagine this corporate project, this privatization project, is if we imagine the state as a kind of an octopus with all of these limbs. And for the past thirty years, and certainly in this country since Reagan, what the privatization campaign has really been doing is lopping off the limbs of the state -- the phone system, the roadways, these sort of non-essential services, if you will. And after you've chopped off all the limbs, all you have left is the center, is what they call the core.
And what the Bush administration has really been doing is going for the core, privatizing those core essential government services that are so inherently part of what we think of as the state, that it almost seems impossible to imagine that they could be privatized, like the government itself, like cutting Social Security checks, like welfare, like prisons, like the army, which is where Blackwater fits in.
http://www.democracynow.org/article.pl?sid=07/04/02/1345218Ultimate result: NEMESIS