NEO-COLONIALISM

Neocolonialism describes how, after World War II, colonial powers started using economics i.e. lending and interest rates, to control former colonies and cultivate new areas, thereby creating political, economic and social dependencies.
Neocolonialism describes certain economic operations at the international level which have alleged similarities to the traditional colonialism of the 16th to the 20th centuries. The contention is that governments have aimed to control other nations through indirect means; that in lieu of direct military-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 a de …show more content…

In effect, third world rulers give concessions and monopolies to foreign corporations in return for consolidation of power and monetary bribes. In most cases, much of the money loaned to these LDCs is returned to the favored foreign corporations. Thus, these foreign loans are, in effect, subsidies to crony corporations of the loaning state's rulers. This collusion is sometimes referred to as "the corporatocracy." Organizations accused of participating in neo-imperialism include the World Bank, World Trade Organization and Group of Eight, and the World Economic Forum. Various "first world" states, notably the United States, are said to be involved. An insider's first-hand description of the corporatocracy is described in the book Confessions of an Economic Hitman by John Perkins.

Critics of neocolonialism also attempt to demonstrate that investment by multinational corporations enriches few in underdeveloped countries, and causes humanitarian (as well as environmental and ecological) devastation to the populations which inhabit 'neocolonies.' This, it is argued, results in unsustainable development and perpetual underdevelopment; a dependency 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, supporters of the concept of neocolonialism argue that, while the First World does profit from cheap labour and raw materials in underdeveloped