Neocolonialism

Neocolonialism is a term used by Marxist as well as non-Marxist groups and individuals to describe operations at the international level during the era when colonial empires, created by the European powers from the 16th to the 19th century, are no longer in existence. These critics allege that both nations and corporations 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 facto control over targeted nations.

Related Topics:
Marxist - Colonial empires - Military - Political

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Critics of neocolonialism portray the choice to grant or to refuse granting loans (particularly those financing otherwise unpayable Third World debt), especially by international financial institutions such as the International Monetary Fund and the 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 favourable (structural adjustments) to the financial interests of the IMF/WB, but detrimental to their own economies, increasing rather than alleviating their poverty.

Related Topics:
Third World debt - International Monetary Fund - World Bank

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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.

Related Topics:
Multinational corporation - Unsustainable development - Dependency

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By contrast, critics of the concept of neocolonialism argue that, while the First World does profit from cheap labour and raw materials in underdeveloped nations, ultimately, it does serve as a positive modernizing force for development in the Third World.

Related Topics:
First World - Underdeveloped nations - Modernizing - Third World

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