‘Shock therapy’, or rapid mass
privatisation, in the former Soviet bloc 1990s was responsible for the early
deaths of 1m people. This is the principal conclusion of a paper published in the
medical journal The Lancet (15.01.09).
The paper is entitled Mass
privatisation and the post-communist mortality crisis: a cross-national
analysis, by David Stuckler, Lawrence King and Martin McKee.Their work is a serious scientific study. It makes devastating reading. They
analysed the deaths of 3m working-age men in the former communist countries of Eastern
Europe. Their findings are that at least a third were victims of mass
privatisation, which led to widespread unemployment and social disruption.
The authors outlined their method as
follows: “We defined mass privatisation programmes as transferring at least 25%
of large state-owned enterprises to the private sector within 2 years with the
use of vouchers and give-aways to firm insiders. To isolate the effect of mass
privatisation, we used models to control for price and trade liberalisation,
income change, initial country conditions, structural predispositions to higher
mortality, and other potential confounders.”
They concluded: “Rapid mass
privatisation as an economic transition strategy was a crucial determinant of
differences in adult mortality trends in post-communist countries; the effect
of privatisation was reduced if social capital was high.”
The point about social capital means
that, not only did privatisation devastate the economy and the means of
feeding, clothing and housing their people; it also shredded the social welfare
system and all the social support mechanisms built up over decades. As a result
unemployed, desperate people with no hope just went to pieces.
Mr McKee emphasised that death came from:
- poor
diet - the
inadequate healthcare system - alcohol
poisoning.
This last was the most important
immediate explanation for the surge in deaths. However, he said redundancies,
particularly among the less well educated and those without forms of social
support, was one of the main underlying reasons for these early deaths.
