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International
Relations-PSC 201
VU
LESSON
13
COLONIALISM,
NEO-COLONIALISM &
IMPERIALISM
Definition
of Neo-Colonialism
Neo-colonialism
implies political control of an
underdeveloped people whose socio-economic
life is
directed
by a former colonizer. Dependency
theorists such as Andre
Gunder Frank argued that
neo-
colonialism
leads to net transfer of wealth from the
colonized to the colonizer, inhibiting
successful
development.
The
essence of neo-colonialism is that the
state, which is subject to this
phenomenon, is in theory
independent
and has all outward
trappings of international sovereignty, but in reality
its economic system
and
its political policy is
directed from the
outside.
The
3rd All Parties African
People's Conference held in Cairo in 1961
described Neo-Colonialism as:
"the
economic
infiltration by a foreign power after
independence, through capital investment
loans and
monetary
aids or technical experts, of
unequal concessions, particularly those
extending for long
periods".
Why
Neo-Colonialism Occurs
Weakness
and growing resentment after
WWII made direct colonization
impractical. Previously united
colonial
territories were divided into mostly
unviable states, compelling them to depend on
their former
colonial
powers for economic and
defense needs
To
fund welfare policies within
their own countries, former
colonial powers needed
resources, which were
easy
to generate through former
colonies still reliant on
them, thus encouraging neo-colonial
ties to develop.
Types
of Neo-Colonialism
Economic
Dependencies: control
over financial strings of a
nation allows control over
its political and
social
institutions
as well.
Satellites:
formal
independence but political
and economic control still
exercised by colonial power.
Control
exercised
by colonial power over a satellite is
more extensive than that
exercised by imperial states.
How
Neo-Colonization Occurs
Former
colonies are particularly prone to
become economically dependent on
colonial powers due to
its
capital
investments, financial loans,
and because of unequal
exchange of goods and resulting
trade
imbalances.
Technological dependency on former
colonial powers enables retaining
control over prior
colonies.
Military presence in the form of
bases also helps exert
and retain control of former
colonies.
Critics
of Neocolonialism allege that
both nations and corporations have
aimed to control other
nations
through
indirect means; that in lieu
of direct military or political control,
neocolonialist powers employ
economic,
financial and trade policies to dominate
less powerful countries.
Those who subscribe to
the
concept
maintain this amounts to control over
targeted nations. They portray the
choice to grant or to
refuse
granting loans, especially by
international financial institutions such
as the IMF and World Bank, as
a
decisive
form of control. They argue
that in order to qualify for
these loans (as well as
other forms of
economic
aid), weaker nations are forced to
take steps favorable to the financial
interests of the IMF/WB,
but
detrimental to their own economies,
increasing rather than alleviating their
poverty.
Critics
of neocolonialism also attempt to demonstrate
that investment by multinationals enriches few
in
underdeveloped
countries, and causes humanitarian
(as well as environmental
and ecological) devastation
to
the
populations which inhabit
'neo-colonies.' This, it is argued,
results in perpetual underdevelopment;
which
cultivates those countries as
reservoirs of cheap labor
and raw materials, while
restricting their access
to
advanced production techniques to develop
their own economies. By
contrast, critics of the concept
of
neocolonialism
argue that, while the developed world
does profit from cheap
labor and raw materials
of
developing
nations, ultimately, it does
serve as a positive force for development
in developing countries of
the
Third World.
Relevant
Vocabulary
Ecological:
concerning
the natural environment
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International
Relations-PSC 201
VU
Reservoir:
stored
amount
Inhabit:
to populate or live in
Humanitarian:
charitable
or compassionate
Suggested
Readings
Students
are advised to read the
following chapters to develop a better understanding
of the various
principals
highlighted in this hand-out:
Chapter
14 in `"A Study of International
Relations" by Dr. Sultan
Khan.
Internet
Resources
In
addition to reading from the
textbook, please visit the
following web-pages for this
lecture, which
provide
useful and interesting
information:
Neocolonialism
http://en.wikipedia.org/wiki/Neocolonialism