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words, the development of the free market did not exclude coercive, even millitary, means
of imposition.10
Accordingly, some analysts have, as N. Klein notes, recognized the direct link between
economic shocks that impoverished a vast number of citizens, and an epidemic of torture
that punished thousands because they believed, as she states, in an alternative form of society.
For example, in the earlier stages of neoliberal expansion preceding the end of the
Cold War, the implementation of the neoliberal model in Chile,11 combined economic freedom
and political terror.12 In principle, shock therapy, as N. Klein points out, deprives the
citizens of the power to understand what is happening, to act and counter act. They are reduced
to powerlessness or resigned to apathy.
When outright coercive, military, measures were not the mode of implementing the neoliberal
form of capitalism, the instruments still violated elementary democratic principles.
In the name of market efficiency, external limitations on democratic decision-making process
were implied and practiced by major international financial actors. Their „proposals
imply or mandate the insulation of key aspects of the economy from the influence of politicians
or the mass of citizens by imposing, internally and externally ’binding constraints’ on
the conduct of fiscal, monetary and trade and invesment policies.”13
Although the measures of international financial institutions (primarily the IMF and
WB) demanding downscaling of government, sharp cuts of public spending, rapid privatization,
deregulation - were by and large unpopular among large segments of the population,
their voices were not heard. The implementation of reforms and conditionalities were implemented
by a coalition made up of representatives of international financial institutions,
state and private actors, and parts of the local political elite (together they constitute what
Robinson calls the „transnational class”, and J. Wedell, „transactors”). In Russia, for instance
this coalition of (trans)actors14 carried out the transition in the nineties, resulting,
10 According to N. Klein, fundamentalist capitalism, i.e. deregulated capitalism, is continually preserved by most
brutal forms of coercion applied to the political collective body. Naomi Klein , Doktrina šoka, (The Shock
Doctrine) V.B.Z. Zagreb, 2008, p. 27
11„ Chicago Boys cooperated with the Chilean army before the coup and in the economic transformation
following the violent coup. Referring to the experiences after the coup, Friedman stated that the most
important achievement is that the free market did its part of the job in creating free societies”. Op. cit. p.
12 N. Klein, op. cit. p. 15.
13 S. Gill, op. cit. p. 132
14 The main transactors were made up of a Harvard team representing the US and the Chubais clan
representing Russia. Janine R. Wedel, “Privatizing Foreign Policy: How Transactos Hijacked US Relations”,

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