Latin America's most significant protection from future shocks (and therefore from the shock doctrine) flows from the continent's emerging independence from Washington's financial institutions, the result of greater integration among regional governments. The Bolivian Alternative for the Americas (ALBA) is the continent's retort to the Free Trade Area of the Americas, the now-buried corporatist dream of a free-trade zone stretching from Alaska to Tierra del Fuego. Though ALBA is still in its early stages, Emir Sader, a Brazil-based sociologist, describes its promise as "a perfect example of genuinely fair trade: each country provides what it is best placed to produce, in return for what it most needs, independent of global market prices." So Bolivia provides gas at stable discounted prices; Venezuela offers heavily subsidized oil to poorer countries and shares expertise in developing reserves; and Cuba sends thousands of doctors to deliver free healthcare all over the continent, while training students from other countries at its medical schools.

This is a very different model from the kind of academic exchange that began at the University of Chicago in the mid-'50s, when hundreds of Latin American students learned a single rigid ideology and were sent home to impose it with uniformity across the continent. The major benefit is that ALBA is essentially a barter system in which countries decide for themselves what any given commodity or service is worth rather than letting traders in New York, Chicago or London set the prices for them. That makes trade less vulnerable to the kind of sudden price fluctuations that have hurt Latin American economies before. Surrounded by turbulent financial waters, Latin America is creating a zone of relative economic calm and predictability, a feat presumed impossible in the globalization era.

When one country does face a financial shortfall, this increased integration means that it does not necessarily need to turn to the IMF or the US Treasury for a bailout. That's fortunate because the 2006 US National Security Strategy makes it clear that for Washington, the shock doctrine is still very much alive: "If crises occur, the IMF's response must reinforce each country's responsibility for its own economic choices," the document states. "A refocused IMF will strengthen market institutions and market discipline over financial decisions." This kind of "market discipline" can only be enforced if governments actually go to Washington for help. As former IMF deputy managing director Stanley Fischer explained during the Asian financial crisis, the lender can help only if it is asked, "but when [a country is] out of money, it hasn't got many places to turn." That is no longer the case. Thanks to high oil prices, Venezuela has emerged as a major lender to other developing countries, allowing them to do an end run around Washington. Even more significant, this December will mark the launch of a regional alternative to the Washington financial institutions, a "Bank of the South" that will make loans to member countries and promote economic integration among them.

Now that they can turn elsewhere for help, governments throughout the region are shunning the IMF, with dramatic consequences. Brazil, so long shackled to Washington by its enormous debt, is refusing to enter into a new agreement with the fund. Venezuela is considering withdrawing from the IMF and the World Bank, and even Argentina, Washington's former "model pupil," has been part of the trend. In his 2007 State of the Union address, President Néstor Kirchner (since succeeded by his wife, Christina) said that the country's foreign creditors had told him, "'You must have an agreement with the International Fund to be able to pay the debt.' We say to them, 'Sirs, we are sovereign. We want to pay the debt, but no way in hell are we going to make an agreement again with the IMF.'" As a result, the IMF, supremely powerful in the 1980s and '90s, is no longer a force on the continent. In 2005 Latin America made up 80 percent of the IMF's total lending portfolio; the continent now represents just 1 percent--a sea change in only two years.

The transformation reaches beyond Latin America. In just three years, the IMF's worldwide lending portfolio had shrunk from $81 billion to $11.8 billion, with almost all of that going to Turkey. The IMF, a pariah in countries where it has treated crises as profit-making opportunities, is withering away.

The World Bank faces an equally precarious future. In April Correa revealed that he had suspended all loans from the Bank and declared the institution's representative in Ecuador persona non grata--an extraordinary step. Two years earlier, Correa explained, the World Bank had used a $100 million loan to defeat economic legislation that would have redistributed oil revenues to the country's poor. "Ecuador is a sovereign country, and we will not stand for extortion from this international bureaucracy," he said. Meanwhile, Evo Morales announced that Bolivia would quit the World Bank's arbitration court, the body that allows multinational corporations to sue national governments for measures that cost them profits. "The governments of Latin America, and I think the world, never win the cases. The multinationals always win," Morales said.

When Paul Wolfowitz was forced to resign as president of the World Bank in May, it was clear that the institution needed to take desperate measures to rescue itself from its profound crisis of credibility. In the midst of the Wolfowitz affair, the Financial Times reported that when World Bank managers dispensed advice in the developing world, "they were now laughed at." Add the collapse of the World Trade Organization talks in 2006 (prompting declarations that "globalization is dead"), and it appears that the three main institutions responsible for imposing the Chicago School ideology under the guise of economic inevitability are at risk of extinction.

It stands to reason that the revolt against neoliberalism would be in its most advanced stage in Latin America. As inhabitants of the first shock lab, Latin Americans have had the most time to recover their bearings, to understand how shock politics work. This understanding is crucial for a new politics adapted to our shocking times. Any strategy based on exploiting the window of opportunity opened by a traumatic shock-- the central tenet of the shock doctrine--relies heavily on the element of surprise. A state of shock is, by definition, a moment when there is a gap between fast-moving events and the information that exists to explain them. Yet as soon as we have a new narrative that offers a perspective on the shocking events, we become reoriented and the world begins to make sense again.

Once the mechanics of the shock doctrine are deeply and collectively understood, whole communities become harder to take by surprise, more difficult to confuse--shock-resistant.

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