img/100-13_files/100-1300001im.jpg" width="695" height="1044" useMap="#Map">
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
img/100-13_files/100-1300002im.jpg" width="710" height="1044" useMap="#Map">
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