Disaster capitalism refers to the practice of profiting from crises, such as natural disasters, economic downturns, or political upheavals. The term gained prominence through Naomi Klein’s 2007 book “The Shock Doctrine: The Rise of Disaster Capitalism,” where she describes how governments and corporations exploit chaotic situations to push through neoliberal policies that might be resisted under normal circumstances.

At the heart of disaster capitalism is the exploitation of crises.

During or after a disaster, companies or governments may take advantage of the disarray to introduce policies or practices that benefit the wealthy and powerful, often to the detriment of the broader population. One common aspect of this is the privatization of public services. In the name of rebuilding or improving efficiency, services like education, healthcare, and infrastructure may be transferred to private entities, leading to profits for these entities but potentially reducing access for those who need these services the most.

Disaster capitalism often exacerbates existing social inequalities.

The wealthy may secure lucrative contracts or favorable policies, while the poor and vulnerable bear the brunt of the changes, such as losing housing, jobs, or essential services. The approach also involves using “shock tactics,” where the fear and confusion following a disaster are leveraged to implement rapid changes without sufficient public debate or oversight.

Example

An example frequently cited is the response to Hurricane Katrina in 2005. After the hurricane, public housing and schools in New Orleans were largely replaced with privatized alternatives, resulting in significant shifts in the city’s demographics and social structure. Disaster capitalism, in essence, involves turning crises into opportunities to enact economic policies that primarily benefit the elite, often at the expense of the wider society.