It’s  called “the shock doctrine” and it originated in the University of  Chicago over fifty years ago. It was designed by a group of economists  headed by right wing ideologue Milton Friedman. They possessed an almost  religious belief in an unregulated, laissez faire, free market utopia  and their idea was simple; the best way to introduce whole system  privatization and an unfettered free market in any arena is through  chaos. Though its origins were academic, it is a methodology that has  been applied practically on numerous occasions around the globe in  recent years. But, with disastrous consequences each time. Still,  evidence never inhibits a zealot.
Just after the collapse of the Soviet Union, these same economists  travelled to the former communist bloc and advised Yeltsin that the  system needed “shock therapy”. They persuaded him to sell off virtually  the entire slate of state industries in one go. Even Thatcher took  eleven years to privatize a relatively small chunk of the UK economy,  but the Russians – following the path of shock therapy – did it  overnight by issuing share vouchers to individual citizens. People  suddenly lost their job security, state incomes, benefits and pensions,  and instead walked round with certificates which meant nothing to them.  So they sold them to the few in the system (often former KGB or  Communist Party officials) who had some money at bargain basement  prices; and thus, virtually overnight, a whole class of Oligarchs was  born. Russia, as we well know, has since been rife with inequality and  the inevitable corruption that ensued in the wake of such a crippled  state.
Modern history is littered with further examples of the application  of the shock doctrine. In the aftermath of Hurricane Katrina when almost  2,000 people lost their lives and many thousands more lost their homes,  schools and livelihoods, the free market ideologues descended again.  The Friedmanite American Enterprise Institute enthused that “Katrina  accomplished in a day … what Louisiana school reformers couldn’t do  after years of trying”. They insisted that instead of spending a portion  of the billions of dollars of reconstruction money on rebuilding and  improving New Orleans’ existing public school system, the government  should provide families with vouchers, which they could spend at private  institutions. Public school teachers called Friedman’s plan “an  educational land grab”. Observing what appeared to be a very deliberate  strategy, journalist Naomi Klein coined the phrase “disaster  capitalism”, referring to, “orchestrated raids on the public sphere in  the wake of catastrophic events.” She went on to describe it in detail  in her excellent book; “The Shock Doctrine”. She cites examples of its  utilization from Chile to Iraq and what many free market economists have  discovered since is that, rather than wait for a disaster, the ideal  conditions for such a revolution can also be created.
Working within the NHS today, I have witnessed first hand the sheer  confusion and, in some quarters, borderline panic, that has ensued as a  result of the governments recent announcements. PCTs were established as  the purchasers in the system – deciding in a planned way what services  from hospitals should be purchased on behalf of GPs. These are massive  strategic planning decisions that involve many billions of pounds.  Overnight, the government plan to remove all of them, and hand the  totality of their powers over to GPs. They have not described how GPs –  with no training in accounting or management – can take up this role.  They have not provided guidance as to how GPs might pool together to  achieve this. As the so called “GP consortia” can be as large or as  small as anyone chooses, a chaotic bout of “run around” has ensued with  GPs trying to partner up with each other across boroughs and local  boundaries, unsure which way to go.
The PCTs have already started to dismantle and in London, staff with  no future are haemorrhaging in droves, leaving a skeletal operation  alone to determine the allocation of billions worth of spending. The  Chair of The Royal College of GPs has described the proposed changes as  the end of the NHS as we know it. The BMA, the Royal College of Nursing  and several of the specialist medical Royal Colleges have spoken out  against it. Calls to phase it in and start with a series of gradually  building pilots have fallen on deaf ears. No one is sure how it will  work or how adversely it will effect patient care. The very people who  will be tasked with implementing such rapid change are already utterly  perplexed by it.
That is because they are supposed to be. It is an engineered shock.
All the while, waiting in the wings, with a metaphorical  defibrillator, will be the private sector. The large American insurance  based corporations – with their profits about to be decimated by Obama’s  universal healthcare legislation – are eyeing the soon to explode UK  healthcare market with salivating mouths. The vacuum that is being  created, is being created for them. They will be hired to do the  commissioning by and instead of GPs who are, through no fault of their  own, clearly untrained and unable to do it. And it won’t be long  thereafter before these same private organisations start hiring  themselves as providers instead of NHS Trusts, many of which will  ultimately go bust. The government are, in fact, proposing to rig the  market in their favour by requiring every single contract to go for  competitive tendering. This means that, even if there is a high  performing Trust with which the local population is happy, they will  still have to submit themselves for retendering to the commissioners on a  regular basis who will then be legally obliged to consider private  sector organisations as part of the process.
Subjecting hospitals to the instability of a retendering process  could be disastrous. I have seen it happen myself. Staff numbers will  fluctuate wildly as doctors and nurses, unsure if their organisation  will survive, start moving between providers – just as they do in, say,  the banking sector. This will potentially destroy continuity of care, as  well as in-patient and emergency service provision which relies on  regular staff numbers round the clock. A hospital shutting down as a  result of loosing a bid to a private sector provider, who has undercut  their costs as a way of breaking into the UK market – rather than  failing to provide an adequate service – could be a potentially  dangerous event resulting in the collapse of secondary health care  provision for the entire local area.
This is why unfettered free markets are a bad idea for health care,  and why the US experience has led to a hard fought reversal away from  marketization. This is also why, if they were asked to vote for it, the  public never would. In fact, in the last election they clearly did not.  The Conservative manifesto, with its “no major reorganisations”  commitment gave exactly the opposite impression. The only way such  drastic privatisation can ever be achieved is through a short sharp  shock to the system. Nick Boles, the pro Cameron Conservative MP, laid  it out starkly, “’Chaotic’ in our vocabulary is a good thing.” Friedman  would be proud. As he himself said, “only a crisis – actual or perceived  – produces real change”.
This is clearly not chaos by incompetence. It is chaos by design.


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