An Introspection of Neo-Colonialism and Study of It'S Impacts in Developing Countries
An Introspection of Neo-Colonialism and Study of It'S Impacts in Developing Countries
University
BY
Seema Pruseth
original work done by Seema Pruseth during the period of study 2020-2023 at the School of
Political science, Gangadhar Meher University, under my guidance and that the dissertation has
not formed the basis for the award of any Degree/Fellowship or any other similar such titles.
The Supervisor
Sambalpur
Seema Pruseth
Sambalpur - 768001
DECLARATION
I hereby declare that the project work entitled “AN INTROSPECTION OF NEO-
submitted to The School of Political Science, Gangadhar Meher University Sambalpur for the
partial fulfilment of the requirement for the award of degree of Bachelor of Arts in Political
Science. The results embodied in this project have not been submitted to any other Universities
Seema Pruseth
Signature
Acknowledgement
I would like to extend my sincere thanks to my research guide Singh Subhalaxmi Baidhar
I would also like to extend my thanks to my guide Subhalaxmi mam, Keshab Chandra Ratha
sir,professors Dr Gyanaranjan swain sir and Dr Banita mam for helping me with the successful
I would like to special thanks to my parents and my Friends who supported me in my study even
during the odd times. They provided everything that was needed.
Seema Pruseth
Roll.no.- UBA20PSC-093
Signature
Table of Contents:-
1. Chapter-I Page 6 to 11
a) Introduction
c) Review of Literature
d) Research Gap
e) Research Question
f) Objectives
g) Methodology
2. Chapter-II. Page 12 to 25
Analysis of impacts and scope of Neo colonialism in the contemporary world: rise of
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INTRODUCTION:-
second world war during 1960s and got prominence by many writers. Colonialism is the practice
by which powerful country controls the other country in order to become rich. It may be also
termed as military, economic political oppression and dominance of the country over another by
establishing colonies. Colonialism was mostly used by European country such as Britain, France,
Portugal, Denmark etc and the colonized countries where from Asia Africa and Latin America.
Colonialism considered as a violence and form of dominance to the under developed countries.
A lot of exploitation and drain of wealth was prominent by the colonizer country. Subsequently
decolonisation started in the colonized country during 1930s which gave rise to a new line of
Idea called nationalism. It is a process by which colonized countries became free from the
colonial rule after second World war. It took place by having independence movement in Africa
Asia and Latin America. A rise of nationalism in these countries. The two world war were also
had a great impact on decreasing the power of the colonizer. Many nationalist leaders stood
against colonialism such as Mahatma Gandhi, Frantz Fanon, Kwame Nkrumah etc.
Neo colonialism started during 1960s. It is a form of economics substage of the under
develop and developing countries by the development countries and multinational companies.
Powerful countries exercised their control over other countries by indirect means such as
globalisation, capitalism and cultural influence. Globalisation is the major tool of the neo
colonialism. Neo colonial powers interfere into the internal matters of the new States. They
supply arms and weapons to the less developed countries. Foreign aid and loans have been a
common method used by dominant countries under exploitative terms and conditions. Major
examples of neo colonial powers can be USA and China in the contemporary period. They also
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controls international monetary regimes like IMF, World Bank, World Trade organisation etc to
give grants and aids. The MNCs and TNCs Are also entering into markets of developing
countries and creating a monopolistic control over them and they used to dominate the market
economy, which influences the growth of the countries. The dependency theory developed by
AG Frank, R. Prebisch, Immanuel Wallernstein etc, says that the core or developed nations
dominate the periphery or less developed countries. Neo colonialism acts indirectly in the
The problem of the study is to analyse the history of colonialism and how it is related to Neo
colonialism. The researcher also wants to make a clear picture on the social economic political
and cultural impacts of Neo colonialism. This research analysis the meaning and causes of Neo
colonialism. The main purpose is to find out if Neo colonialism can be termed as Neo
imperialism. And to give an account of the impact of USA and China in Asian, African and Latin
American countries.
REVIEW OF LITERATURE:-
Here the author interrogates about the race, colonialism, psychological trauma and
revolutionary struggle and continuous struggle for black people. He advocates civil rights, anti
colonialism, psychiatric studies and black consciousness around the world. The author discusses
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In this book the author has discussed about civil rights antic colonialism and black
consciousness movement around the world. He studied about the black people psychology in in a
white world. He has discussed about how black people considered themselves inferior in matters
of race. The people of Africa wants to adopt the cultures of the white American people.
3.Lenin, Vladimir (2010) “Imperialism: the highest stage of Capitalism”, Penguin Classics,
In this book The writer has described about how capitalism becomes the absolute form of
imperialism. It gives a good inside on how capitalist exploitation Become a burden on the
Proletariat people.
In this work the author has presented a beautiful glimpse on how democracy and nationalism
develop in India since independence. It covers a range of issues, such as democracy prefigured,
democracy and the state, democracy and civil society, and democracy and development in India.
Publication,
One the most important book on Neo colonialism which provides A powerful indictment of
U.S.-led Western imperialism’s exploitation and plundering of Africa. The author, the first
President and Prime Minister of Ghana, takes Lenin’s famous book on imperialism and applies it
specifically to Africa. You also gives an account on how The economies of the African countries
has been broken down by the new colonial powers like USA and China.
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6.Langan, Mark (2018) “ Neo Colonialism and Poverty of ‘Development’ in Africa”, MacMillan,
In this book the author has provided a description on the poverty that has been caused by Neo
colonial powers. He has discussed how the powerful dominant countries through their
investment models are eroding the economies of the less developed countries in Africa and
Press.
introduction to the comprehensive approach to understanding the history and development of the
modern world that he pioneered thirty years ago. He has explained how the developed core
countries used to exploit the under developed periphery countries in this work.
RESEARCH GAP:-
The Researcher need to find out how colonisation ended and the Decolonization took
place. The gap is also there how neo colonialism emerged. The new neo colonial powers like
China and USA are emerging and controlling the major neo colonial powers. This research looks
into the impact of USA and China as Neo colonial powers and tries to find out whether neo
RESEARCH QUESTION
2.How Neo colonial powers like China and USA are dominating in contemporary period?
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OBJECTIVES OF THE STUDY:-
A. To study the impact of Neo colonialism in the developing and underdeveloped countries.
B. To know about the scope of its impact in Spears like social, economic, cultural, political
C. To analyse the growth of USA and China as the biggest Neo colonial powers in the
contemporary period.
D. To analyse and have a deeper look into the economies Neo colonized countries in Africa
and Asia.
METHODOLOGY:-
The present study is a normative study based on interpretation and analysis. In order to
collect data for the study the researcher is dependent upon various primary and secondary
sources such as books, magazines, journals, articles, newspapers, TV news library etc. The
normative study told us about what ought to be or what should be, which was a method
developed since the ancient Greek period and relevant till the modern period. Normative
approach aims at finding out not only how things are, but above all how they should be.
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Chapter-II: HISTORY OF COLONIALISM, DECOLONISATION
AND NEO-COLONIALISM
Colonialism:-
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Before understanding Neo colonialism the researcher must look into the historical
background of colonialism and its impact and the process of the decolonisation in Asia Africa
Colonialism is a practice by which the Western European Nations controlled the market
economy of a country and late around control the whole country politically as well. It was since
from the 15th century when European countries started practicing colonialism in resource
abundant countries in Asia Africa and Latin America. At first the policy of mercantilism was
followed to strengthen the economy of their own through trade practices. Later pages broad
changes in the colonial practices by giving up mercantilism and trade restrictions and adoption of
principles of free trade and little restriction on tariffs. Christian culture and religious belief also
transmitted by the help of Christian missionaries. This can be credited as the cultural impact of
colonialism. Historian Philip Hoffman says that before industrial revolution in 1800 the
European colonies were firmly established in at least 35% of the whole world. Later phases of
the colonisation mark the exploitative relationship between the colonizer and colonized
countries. The colonizer countries tend to exploit the resources raw materials of the colonized
countries to strengthen their own economy. Colonization can be broadly classified into four
major types. 1- Settler Colonialism- which involves a large scale immigration by the scheduler to
their colonies, mainly motivated by religious, political or economic reasons. For their own
security and prosperity they exploit their colony not only economically what also politically.
They used to assimilate their own cultures in their colonies. For example Algeria is the colony of
France. 2- Exploitative Colonialism-it involves a few colonies who focuses on the exploitation of
natural resources and labour from the colonized countries. The European colonies mainly
engrossed in exploiting the colonies of Africa and Asia. 3- Surrogate Colonialism involves a
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settlement project supported by colonial power.4-Internal Colonialism Vinod se form up
exploitative relationship between the colonizer and the colonized. The source of exploitation
comes from within the state. AG Frank theorizes internal colonialism as a form of on event
development. Internal colonialism and new colonialism can be hardly differentiated. The control
comes from within the state not outside. For example Ireland remained a part of UK for a long
time.
Colonialism has developed under 2 major phases such as pre modern and modern. The pre
modern face has a long history where ancient Egyptian, Phoenician, Greeks and Romans had
colonies. Phoenicia had a good enterprise of maritime trading culture across the Mediterranean
region from 1550 BC to 300 BC. Greeks and Persian Empire continued the colonial practices.
Romance soon followed the colonialism in Mediterranean, Northern Africa and West Asian
region. The Greek and person Empire continued the colonial practices. Roman soon follow the
colonialism in Mediterranean, Northern Africa and West Asian region. In the 7 th century the
Vikings established colonies in Britain, Ireland, Greenland , Northern America, Russia and
Ukraine. Modern era started with when Portuguese Prince Henry the navigator initiated the age
of exploration and established American trading posts. Spain and America through sea route
built trading posts. 17th century marked the birth of French colonial empire and Dutch Empire in
the English foreign possession which letter on became the large British Empire which controlled
more than 35% of the whole world colonies. The Danish and Swedish colonies we are also at a
verge of their establishment. The first world war changed the nature of colonization. The
colonial Era came to an after the second world war and the decolonisation process started.
The New Imperialism (1870-1914):- The policy and ideology of European colonial expansion
between 1870’s and the outbreak of first world war in 1914 are correct right as new imperialism.
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The unprecedented pursuit of Empire for Empire sake, aggressive competition for territorial
expansion and colonisation was in the air. Africa became the primary target for the imperial
expansion with the new ideology. Japan also join the expansionist powers for Africa.
Scramble for Africa:- Africa was the next target of European state men and industrialists after
America and Asia. Acceleration for scramble for Africa began. It means the partition or conquest
European powers. During 1870 only 10% of Africa was under European colonial regime which
later on increased up to 90% by 1914. Though the Berlin conference of 1884, regulated the
colonization and trade in Africa. Still it was able to create cut-throat competition among
Impacts of colonization were immense and pervasive. It is very immediate and long term
effects which includes spread of viruses, unequal social relations, exploitation, enslavement,
creation of new institutions, abolitionism, technology progress etc. It also spread it colonial
languages literature and culture to the colonised countries. The native culture also degraded
Economic expansion can also be termed as colonial surplus which accompanies colonial
expansion since the ancient times. Greek trade networks spread throughout the Mediterranean
region while the Roman trade expanded with the goal of directing tribute from areas to Roman
metropolis. Trade routes also developed by the Ottoman Empire. The European colonial Empire
also attempted to channel, restrict and impede trade involving their colonies. The economic
institutions were the main factors behind the success of colonial expansion. They used to
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determine their performance and the distribution of resources. The European colonialism give
their focus was also on improving productivity. Foreign aid also grown as it arrived to colonized
States as loans, land, credit and tools to speed up development. Though it increased the
technological, economic and class based gender gap between male and female. Yet the colonial
The European colony wanted to enrich their economy, so they used to major outgrowths
which includes slavery and Servitude. In the 17 th century nearly two third English settlers came
to North America as servants. European slave trade brought a large number of American slaves
to America by sail. Spain and Portugal bought American slaves to work in their colonies in
Africa. British French and Dutch colonies also started slave trade in the subsequent period. The
European colonies brought nearly 11 million African slaves to Caribbean, to the north and to the
South America. The abolitionists in Europe and America protested against The slave trade which
brought its end around the late 19th century. British colonial administration in South Africa
abolished slave trade in 1830 s. This abolition let to shortage of labour in the industries which led
to growth of indentured servitude. Under this system the employee will work at least for a year
as a servant. India and China where the major source of indentured servants during their colonial
era. The servants of India travelled to British colonies in other parts of Asia Africa and
Caribbean, while Chinese servants travelled to British and Dutch colonies. Between 1832 to
1930 round 30 million indentured servants migrated from India and 24 million returned to India.
The event of scramble for Africa focused on the suppression of slavery and slave trade. Towards
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3- Military Innovation:-
advantage to conquer the army of there enemy in their colonial grounds. Macedon watch able to
organise thousands of soldiers in to a formidable battle force bringing together carefully trained
infantry and cavalry. The Spanish Empire used weapons made of stronger metal like iron which
was able to shatter the blades of axes. The use of gunpowder weapons counted the European
military.
4- Boost of Mercantilism:-
Mercantilism economic policies were very important to start the colonisation. It aimed at
5-Introduced Diseases:-
different countries. It caused sometimes local epidemics. For example smallpox, malaria,
measles, yellow fever and other unknown diseases spread it in colonized countries.
Subsequently, with the spread of foreign language literature and culture the process of
decolonization began in the early 20th century during the second World war. The new ideology of
nationalism created in the colonized states. The various nationalist leaders were able to mobilize
the masses against the colonial imperial exploitation and oppression. The colony swear
eliminated who holds the economic system, political power and which had cultural influences.
The process of declination began with the emergence of nationalism in colonized countries.
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Decolonization:-
Decolonization refers to the process of legal transfer and institutional control over the
territories and dependency to the indigenous formally sovereign nation States. The it was not
confined to only legal sovereignty but also to build up the claim of moral justice and political
solidarity against imperialism. It has two objectives such as anti-imperial movement and
watch fundamentally shaped by national leaders and historians. The imperialism watch spread
across Asia Africa and extended to Caribbean and Pacific Islands. The rise of Japan also imposed
The process of decolonization started around 1930s. The great Britain faced economic
bankruptcy during second World war. So it dependent on the aids and grants made by USA And
income generated from some of its colonies. France and Netherland also wanted to protect their
control over their territories. So they became Euro centric and the nature of colonialism changed.
Mahatma Gandhi who was the prophet of excentrism argued that Indians should cooperate with
British to established their self rule. He used to mobilize people for non cooperation movement
against British government. The anti imperialist sentiments and nationalism Emerged mainly
from the urban areas as capitalism was spread more which brought Knowledge, technology,
modernity more widely. Later after second World war the total membership of UN has gone of
Waves of Decolonization:-
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The Decolonization challenges and brought an end to European colonial powers and
helped to established the number of new States across Asia and Africa which started from early
20th century. The first wave of decolonization took place in America and resulted in the creation
of USA. It happened in multiple layers in America. The war between France and Britain gave an
opportunity to the rebels in USA. USA was given sovereign powers which was a great political
development. The second wave witnessed the Napoleonic war and French invasion. It included
(I) The first wave of decolonization began in the early 19 th century where the Latin
American countries got independence from Spanish and Portuguese colonial rule.
More than 20 colonies and watched by two major revolutions such as the American
revolution and the French revolution and also Napoleonic war. This wave was also
(II) The second wave began after first world war. This remarked the fall of Ottoman
Empire which decolonized many middle eastern countries and some countries of
(III) The third wave of decolonization began after second World war. The major colonial
powers such as Britain Japan and France railing relinquished their colonies after
1945. The second World war boosted the Decolonization process. Japan lost in the
second World war, Britain became bankrupt and France faced tentorial disturbance.
Many colonies from Asia Africa and middle East got independence.
(IV) There were still many other countries which were yet going through the process of
decolonization. The fourth wave of declination can be significantly observed with the
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creation of new state towards the end of cold war after 1989. Yugoslavia was divided
into small states. The cold war lead to the collapse of USSR which created many
states. Like that some new States also emerged in the Sub-Saharan Africa such as
The whole process of decolonization gained pace after 1945 due to several reasons. First, the
condition of international climate did not supported that much for the colonial powers to
continue their presence in their colonies. Second, the major colonial power such as Britain in
France became week after second World war. Third, the colonial countries started demanding for
independence for the sake of nationalism through the help of national leaders which provided is
strong resistance to the colonizers. In Africa the colonial powers wanted to exit with a dignified
status. This gave a confidence in the minds of nationalist politicians who started demanding for
political and economic independence. Decolonisation process in Africa boosted after Sudan got
its independence in 1956 which was followed by other countries. The Japanese colonies where
very strong in south and South East Asia for the dropping of two atom bombs in Japan in 1945
let to dethrone of its colonial powers. This gave a chance to the British and French colonies to
regain their status. The French colonies try to regain territorial power what it was failed because
The Bandung conference watch held in 1955 in Indonesia. It adopted the policy of non
alignment, anti imperialism and anti racism and promoted economic and cultural cooperation.
India, China and Indonesia played crucial role in non alignment movement, which promoted anti
imperialist struggle against the colonialism and neo- colonialism. The Decolonization process
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Decolonisation and its cultural aspects:-
Decolonization process had a great impact on cultural sphere of the colonized countries.
The native people of colonized countries in Asia and Africa tried to inculcate the culture which
were brought by colonial powers. The people of Africa wanted to become like a white man
which was explained by Frantz Fanon in his book Black Skin White Masks and Ngugi in his book
Decolonising The Mind argues that decolonization must take place at the level of mind first,
which clearly advertises the imagination of the writer in relation to the culture and language of
the native people. Decolonization though made the country independence yet it left various
cultural aspects and foreign languages. In the postcolonial period people can see the
amalgamation of different cultures and languages within the native culture. The flow of literature
and languages also supported the process of resistance as the various nationalist leaders came to
know about different popular revolutions such as the American and French revolution.
When the colonial powers left countries but still they drained too much of wealth from
their colonies which led to underdevelopment and poverty in Africa and Asia and Latin America.
The Decolonization also let to a huge immigration. The Europeans settlers with their servants left
their colonies.
countries. Countries like India China and African countries face challenges in the first several
years of their independence. One of the major example would be India where the British
government started the transferring of power and give independence in 1947. Though in 1857 the
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Indian people resisted against the British government in the Sepoy mutiny what it failed.
Subsequently nationalism grew in the minds of nationalist leaders of India but till then the
British government successfully drained maximum wealth from the Indian subcontinent.
Dadabhai Naoroji called this the Economic Drain in his book Unbritish Rule In India.
countries by the developed countries. Kwame Nkrumah first coin the term Neo colonialism in his
book Neo-colonialism: the Last Stage of imperialism. The Neo colonialism surface in 1960s .
The countries which were newly independent could not work autonomously. These were always
influenced by its own institution, structure, trade and foreign relation. The various international
regimes such as World Bank IMF can control the economy of various countries. With the above
points neo colonialism can be termed as the virtual extension of colonialism which promotes
capitalist interest which is more complex and indirect in its form. The Decolonization process
was done by the nationalist leaders in Asia and Africa and Latin America. But the colonial power
did not wanted to lose their control over their colonies. Nkrumah says “ where new colonization
exist the power exercising country often control the state which formally rule the territory in
question what this is not necessarily showed. For example South Vietnam was under the French
colonial power during the colonial era but during the Neo-Colonialism era it is now under the
USA”
The neo-colonialism has established different economic models to exercise its power.
The result of neo colonization lead to use of foreign capital for the exploitation of developing
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countries rather for their development. Investment which were done by the neo colonial power
increased the gap between rich and war in third world countries. Show the struggle against neo
colonialism is not aimed at excluding the capital investment for the developing countries rather
than it aims to prevent the impoverishment which is done through the investment models of
developed countries.
After decolonization the developed countries changed their model of investment. By the
end of second World war different monetary regimes were created sources IMF World Bank
which provided grants to the developing countries. Since major colonial powers have faced a
drawback economically after second World war they are role in funding of this monetary
regimes degraded and USA most as the biggest power and its funded the monetary institutions
and control led their structure. Though these organization helped many developing countries by
giving grants but these countries fell in the debt trap. Heavy industrialisation took place in the
underdeveloped approach and countries as they were full of natural resources. The natural
resources where extracted by major development countries through investment and industrialism.
But the main purpose behind investment was to exploit these countries through import export
process. Falling under debt crisis neither the grew economically nor political and socially. With a
huge expectation of the third world war the developed countries started changing the structure of
their military. This started developing military bases in the under developed countries and
provided grants in exchange to countdown their enemies. For example to counter Russia and
communism USA has created various military bases around the world. USA and Russia uses
proxy wars against each other to counter there ideologies. USA also promotes civil war in
various under developed countries which were condemned by Russia. By this neo colonialism
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Globalization as a Major cause of Neo Colonialism:-
Globalisation came with a prospect of changing the nature of international relation among
the various countries. It liberalized the markets and many countries entered into the process of
globalisation. Industrialisation took a new speed due to globalisation. Due to globalisation many
non-state actors rose their heads. The MNC and TNC which were the result of globalisation
started industrial development and monopolized market economy in the under developed
countries. This monopolistic control over the market also lead to the decline of wealth from the
There are some impacts of Neo colonialism such as economic, political and socio-cultural
etc.Neo colonialism lead to the rise of various non-state actors including various MNC and TNC.
These institutions had a major role in managing the global economic order. These corporations
where the major source of foreign direct investments. They also brought technological
innovation in the under developed countries. The MNC and TNC used to mobilize the resources
of the resource abundant countries. These institution monopolist the market and invested in
development.
Neo Colonialism brought political changes in the less developed countries. The developed
countries interfere in the political aspects of these countries. USA is a major example of this.
USA model of intervention of middle eastern countries such as Pakistan and Afghanistan change
the political culture of these two countries. USA has relation of these two countries because of
war in terrorism. USA control the terrorism in Afghanistan nearly for 20 years. USA was a
major victim of terrorism which is the 9/11 attack which destroyed the twin tower of the World
Trade centre full stop USA has been instrumental in case of Bangladesh. It has given grants and
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aid to Bangladesh for infrastructure development and economic growth. It brings that country
Through neo colonialism the developed countries are spreading their culture tradition and
their lifestyle in less developed countries. The African black people wanted to adopt the culture
of American whites as they think that the race and culture is inferior to that of American people.
The developed countries are taking to help of media to spread their culture. Media Play a major
role in cultural imperialism. The western culture are being adopted by native cultural groups. It
creates a sense of cultural inferiority and racial discrimination in the less developed
homogeneous cultural groups. To native language also diminishing as the western culture each
Neo colonial governance has been the indirect form of control by economic and trade policy
and through MNC and TNC. The under developed countries which got independence after
second World war were being used as the object of exploitation. The various international
organisations are also controlling the new World order. The African countries has been the worst
the neo colonial dominance. Various major powers such as USA Russia and China are having an
impactful role in controlling the last developed countries. China has been using its debt trap
policy to control the economically weak countries for its own development. Extreme dominance
can be seen in the countries which are under the debt trap of China. It’s initiatives are always
featuring the neo colonialism. The economically weak countries has been becoming too much
dependent on the developed countries like China and USA. This is because of the poverty and
unemployment and food crisis in these countries. This has been discussed in the further chapter.
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Chapter-III: AN ANALYSIS OF IMPACTS NEO-COLONIALISM
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An analysis of Neo colonialism:-
Neo colonialism is a new form of imperialist domination and exploitation of third world
countries. In this chapter the researcher has analysed how the dependency theory works. It will
be a depot analysis of how the developed countries like China and USA are active as major neo
colonial power in the contemporary period. Dependency theory which can also be identified as
harmonically increasing the voice of the Third World, became the dominant point of view of
the 1970s. This chapter will show how the develop nation are exporting the resources of
developing countries by various means. But let us discuss what is dependency theory first.
The dependency theory emerged in the Latin America during the second half of 1950s as
theory can be defined as the theory of economic backwardness of a developing Nations due to
external influence. Dos Santos which considered as the major proponent of dependency theory
who defines that it is the historical condition which shapes the structure of world economy in
favour of the developed countries by adversely affecting the economy of the developing
development and expansion of economy of another country. This theory looks to explain and
understand the reasons for economic backwardness and on road development of countries in
There are different versions of dependency theory which were represented by Raul
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1-Modern View:-
Works of Raul Prebisch (1901-1986) played a major role in generating the Dependency
theory. Presbisch brought out a ground-breaking study titled, The Economic Development Of
Latin America and Its Principal Problems (1950), which was an inquiry into The economic
trade (tot) with the developed Countries which has historically deteriorated the economic
condition of Latin American countries. Tot is the ratio between a country’s export prices and its
Import prices. While Latin American countries are the producers of primary Commodities, they
export it to the industrially advanced countries. These primary Commodities are processed and
transformed into the finished products in the Industrially advanced countries. These finished
products are exported to the Developing countries including that of the Latin American region.
In other words, Countries export their primary commodities at cheaper prices and import finished
Products at higher prices and this adversely affects their economy. On the basis Of his empirical
study conducted with Hans Wolfgang Singer (1910-2006), Prebisch set forth the Prebisch-Singer
terms-of-trade thesis (PST). PST suggests That the economies of the producers of primary
commodities are declining day- By-day due to the increasing trade deficit with producers of
finished products. In Other words, the economic gap between the producers of primary
commodities And the producers of finished products enhances in tandem with their increasing
Economic ties. Thus, the Prebisch-Singer terms-of-trade thesis (PST) laid Foundations for the
dependency theory. Prebisch challenged the theory of comparative advantage and the liberal
Economists’ view that the developing countries should specialize in the production Of primary
commodities in order to benefit from free trade. Prebisch introduced A structuralist approach to
the study of the global economy, which was based on The binary oppositions of
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development/underdevelopment and core/periphery. In other words, his study was focused on the
inherently asymmetric relationship Between the developed and developing countries. Unlike
liberal theories, Prebisch’s approach was examining the theme of development and
Underdevelopment from the experience of the countries in the global south. Having Set forth the
reasons for economic backwardness in Latin America, Prebisch set forth a number of
industries at the domestic level. The major aims of ISI are a reduction in imports thereby
resolving the problem of trade deficit, promotion of local industries thereby achieving industrial
Radical dependency theory is built upon Marxism and Lenin’s understanding of Imperialism.
Andre Gunder Frank, James Cockcroft, and Dale Johnson are Considered to be the radical
dependency theorists. The radical dependency Theorists argue that the motive force behind the
dependency relationship in global Capitalism. The developed countries find markets for their
finished products in Developing countries. In addition to that, the developed countries also treat
Developing countries as the destination for investment. When developing countries Borrow
capital from developed countries, the loan repayments deteriorate their Economy. Radical
dependency theorists hold that the ‘underdevelopment’ of the Countries in the global south is a
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political Restructuring of colonies by the imperial powers have transformed the erstwhile
Colonies into peripheries and their former masters (present-day developed Countries) into the
centre or core. As a result, the countries in the periphery have To depend upon the core
(developed countries) for capital, technology, and finished Goods. In other words, centuries of
colonialism has transformed developing Countries into the suppliers of primary commodities,
cheap labour, and the Repositories of capital, technologies, and finished goods. Radical
dependency theorists hold that the rigid international division of labour Enforced by the capitalist
system is responsible for underdevelopment in some Parts of the world. Here, periphery states
are tasked with the supply of primary Commodities. The most striking point Is that what
periphery states have to supply And what they have to receive in the form of capital and
technology are determined By the economic interests of the core. Here, the periphery states do
not have any Say or control over the matters related to their development. In such a condition,
The governments in the core and the periphery states try to satisfy the interests of The
bourgeoisie. This control of bourgeoisie over the core and periphery is the Characteristic of the
highest stage of capitalism or imperialism. In the process, The periphery countries also
experience loss of sovereignty as decision-making Power shifts to the core. Raw material
producers become an appendage to the Economies of the core. What one finds is not a genuine
national capitalism in Latin America. Rather it is a capitalism that is dependent; this dependent
capitalism Is the result of the processes and decisions made in the core economies. Radical
dependency theorists argue that the countries in the global south cannot Follow the western path
to development. The long history of colonialism and the Restructuring of socio-political and
economic systems in the colonies created an Asymmetrical structure of relations between the
core and the periphery states. This has made the core as the producers of the finished products
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and the periphery States as the suppliers of primary commodities. Moreover, the terms of trade
Favour the core at the expense of the periphery, which further widens the Inequalities between
the core and the periphery states. Radical dependency Theorists hold that the sheer exploitation
in the form of exchange between the Primary commodities and the finished products will only
deteriorate the vulnerable Condition of the developing countries. In other words, this unequal
is the only way to break away from this exploitative and Dependent relationship.
of the dependency theory. In contrast to the moderate and radical Dependency theorists, who
limit their study to the economic relations between The core and periphery, World Systems
of imperialism and World Systems theory holds that the world as it is today can be understood
only in the Context of the development of global capitalism. Because, today there is only One
world system, which is a capitalist world-economy, emerged in Europe during The ‘long’
characterized by the ‘production for the market to gain the Maximum profit, and unequal
exchange relations between the core and the peripheral states’. Further, this global capital has
generated a hierarchical structure, Which determines the position of each state within this world-
economy. Through This hierarchical structure and market mechanisms, the core exploits the
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and the ‘core’. The semi-peripheral states are the emerging economies such as India, China,
South Africa, and Brazil, characterized by attributes such As modern industries, cities, and large
peasantry. According to World Systems Theorists, the possibility of changing position in the
core/semi periphery/periphery .Hierarchy is very rare. Hence, the core, periphery, and semi-
periphery remain as the enduring features of the capitalist world-economy. Therefore, the World
Systems theory is a critic of liberal and modernization theories of socio-economic and political
development. World Systems theory, further, holds that the semi-Periphery states divide the
periphery and it makes a unified opposition against the core a difficult task. The core maintains
its hegemony due to the divisions Within the semi-periphery-periphery camps. However, the
World Systems theory Argues that the contradictions within the capitalist global economy will
The era of rise of new super powers and nature of Neo Colonialism:-
The contemporary period the China and USA are acting as the major new colonial
powers. China has a greater control of the countries in Africa in matters of trade and
infrastructure development. It also has a great influence in the South station region China has
been able to creates it dominance through it’s various policies USA also has been a great
dominant force in the middle eastern countries as well as in south Asia. Both of these countries
have influenced the world order and are able to made themselves great powers. They also the
economies of the developing countries by the investment and trade models of their own. At first
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China in Africa has been dominating the import export process. Chinese-African trade
relations were discussed Within the framework of the goals of FOCAC. Here we expand on
specific And trends. Africa, despite her tragic stories of being extremely exploited Over the past
several hundred years, is still one of the last places that has not Yet been totally depleted by
either the hands of corrupt local predators/rulers And foreign governments or multinationals,
despite their many repeated Attempts. New resources are still being discovered in many parts of
the continent. For instance, aside from the unexplored and potential oil reserves, Africa “holds
90% of the world’s cobalt, 90% of its platinum, 50% of its gold, 98% of its chromium, 64% of
its manganese, and one-third of its uranium .” Within the logic of comparative advantage theory,
the trade balances Between China and Africa reveal a very one-sided relationship that favours
China. This imbalance also reflects trade relation between China and the United States. A new
era of trade officially began between China and Africa, Following the first FOCAC meeting.
Several years prior to the conference, China and Africa had only a combined $5 billion worth of
trade. Since then Africa’s exports to China increased annually by a rate of 40% from US $4.8
Billion in 2001 to US $28.8 billion in 2006. Chinese exports To Africa likewise increased from
$4.2 billion in 2000, to $22.9 billion in 2006. During this period, 87% of the exports from China
basic Consumer goods like household devices, television sets and clothing, as Opposed to
China’s imports from Africa during the same period, 62% of which Consisted of oil and natural
gas, 17% in ores and metals, and 7% in agricultural raw materials. Value-added manufactured
exports made up only 8% of Africa’s exports to China. In 2007, African exports to China
increased by 54%, while China’s exports to Africa increased by only 36 % for a total of $73
billion. In 2008, as indicated earlier, China’s trade to Africa increased by a total of 45%, for the
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first time exceeding $100 billion, at $106 billion. The top 20 products Exported from Africa to
China represent a total of 95% of all imports. Furthermore, of the top 20 products in 2008, 90%
came from five specific items: 82% of the products exported to China from Africa were mineral
products, 3% precious stone and metals, 3% specialized automobile products made in African
factories, 3% logged trees, and 1% base metals . This is in sharp contrast to Africa’s top 20
imports from China, Which are highly diversified. In 2008, the top 20 African imports from
China Represented only 35% of total exports. This short of trade dominance can be observed in
the Sino- African relations and the control of china in the continent.
to advance its Strategic objectives in the region. It does so through a Host of new institutions and
projects, notably the Belt and Road Initiative (BRI). BRI is the most visible platform For
Southeast Asia. Launched in 2013, BRI is an ambitious effort to Strengthen infrastructure, trade,
and investment links Between China and other countries. Prominent projects In Southeast Asia
include hydropower dams, oil and gas Pipelines, and Beijing’s extensive railway plans to
connect The south-western city of Kunming not just to Laos and Thailand, but eventually to
Singapore through Malaysia exact figures are difficult to pin down, Indonesia, Vietnam, and
Malaysia consistently rank as The top recipients of Chinese capital for infrastructure
Development in Southeast Asia. In terms of projects That are at the stage of planning, feasibility
study, Tender, or currently under construction, Indonesia Currently leads the list at $93 billion,
followed by Vietnam and Malaysia at $70 billion and $34 billion Respectively. Xi Jinping also
announced $64 billion In new deals at the Second Belt and Road Forum for International
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Cooperation in Beijing in April 2019.In addition, China is developing new sub-regional
projects and Advance its economic and political ambitions in Mainland Southeast Asia.
Established in 2015 among the six countries that comprise the Greater Mekong Sub region
(Cambodia, China, Laos, Myanmar, Thailand, And Vietnam), the LMC promotes cooperation
across A range of economic and cultural domains, but the Driving force is infrastructure.9
Beijing has set aside Over $22 billion under the mechanism to support Projects focusing on
technological connectivity and Industrial development as well as trade, agriculture, And poverty
alleviation. China is now Cambodia’s Largest financial backer by a wide margin, pumping In
$12.6 billion in 2017 alone. In Laos, Beijing is Bankrolling the $7 billion China-Laos railway
project, extending almost 260 miles from the Chinese border To Vientiane, a project that
amounts to almost half the Country’s GDP. Laos and Cambodia appear to be the first countries
to sign bilateral action plans with Beijing that officially Endorse China’s regional vision of a
community of Common destiny or shared future. Both action plans Were concluded during the
Second Belt and Road Forum on April.11 In the Cambodian version, titled “Action Plan 2019-
2023 on Building China-Cambodia Community of Shared Future,” the two countries Committed
relations, and multilateral cooperation. They Also agreed to promote ties between China and
China has been rising as great super power in matters of trade and infrastructure
development in both Africa and South Asian region. The above explanations prove the
dominance of China as a neo colonial power. China is becoming a major rival Economy against
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USA as the new face of Neo Colonialism:-
USA since after the second world war has emerged as the biggest superpower and has
been dominating the global economy. USA successful in achieving a greater trade efficiency by
exporting its commodities. USA controls the major monitoring institutions such as IMF World
Bank and the world Trade organisation. It used to fund the International monetary organisations.
USA has a great influence in the middle East and South Asian region and also in the European
continent.
After the 1776 establishment of the United States as an independent sovereign state, but
became much more expansive in the aftermath of World War II. With the goal of preventing the
Soviet Union from gaining influence in the region during the Cold War, American foreign policy
saw the deliverance of extensive support in various forms to anti- communist and anti-Soviet
regimes; among the top priorities for the U.S. with regards to this goal was its support for the
State of Israel against its Soviet-backed neighbouring Arab countries during the peak of the
Arab–Israeli conflict. The U.S. also came to replace the United Kingdom as the main security
patron for Saudi Arabia as well as the other Arab states of the Persian Gulf in the 1960s and
1970s in order to ensure, among other goals, a stable flow of oil from the Persian Gulf. The U.S.
has diplomatic relations with every country in the Middle East except for Iran, with whom
relations were elations were severed after the 1979 Islamic Revolution, and Syria, with whom
relations were suspended in 2012 following the outbreak of the Syrian Civil War.
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By the end of the Second World War, Washington had come to consider the Middle East
region As “the most strategically important area of the world.” And “one of the greatest material
Prizes in world history,” argues Noam Chomsky. For that reason, it was not until around the
Period of World War II that America became directly involved in the Middle East region. At this
Time the region was going through great social, economic, and political changes and as a result,
Internally the Middle East was in turmoil. Politically, the Middle East was experiencing an
Upsurge in the popularity of nationalistic politics and an increase in the number of nationalistic
Political groups across the region, which was causing great trouble for the English and French
Colonial powers.
Historian Jack Watson explains that “Europeans could not hold these lands indefinitely in
the Face of Arab nationalism”. Watson then continues, stating that “by the end of 1946 Palestine
Was the last remaining mandate, but it posed a major problem”. In truth, this nationalistic
Political trend clashed with American interests in the Middle East, which were, as Middle East
Scholar Louise Fawcett argues, “about the Soviet Union, access to oil and the project for a
Jewish state in Palestine”.Hence, Arabist Ambassador Raymond Hare described the Second
World War, as “the great divide” in United States’ relationship with the Middle East, because
These three interests would later serve as a backdrop and reasoning for a great deal of American
Interventions in the Middle East and thus also come to be the cause of several future conflicts
The Gulf War in 1991 opposes a coalition of 35 countries led by the United States against
Iraq After it invades Kuwait. Iraq had been an ally of the Soviet Union during the Cold war,
resulting in Little relation with the US. After Iraq threatened to invade Kuwait, the US said they
38
would also Protect their allies in the region against Iraq’s invasion.[41] After the invasion in
1990, economic Sanctions are implemented when the US request a meeting of the United
Nations Security Council and adopt Resolution 660.The US rejected the proposal of the Iraqi
army to leave Kuwait if a solution for Palestine is found. Military means are employed by the US
in 1991, as Resolution 678 allows. Also, the coalition is created, with 73% of the armed force
being American. The United States armed forces lead many attacks on the Iraqi army in several
Both countries have an interest in fighting terrorism and are allies. In 2017, an agreement
aiming to provide Saudi Arabia with $115 billion of weapons containing tanks, combat ships and
missile Defence systems is announced by President Donald Trump. In 2018, the Saudi
Government had purchased over $14.5 billion of weapons to the US. Also in 2018, the Saudi-led
coalition fighting Terrorism in Yemen bombed a school bus killing 40 children, with a bomb
provided by the United States. Many criticized the United States’ support for Saudi intervention
in Yemen which Contributed to the killing of 10 000 children. On December 2018, the end of
American Assistance to Saudi Arabia’s war in Yemen in voted by senators. The lack of support
from the US for the Saudi-led coalition interventions in Yemen stained the Relationship of the
two countries, causing Saudi Arabia to refuse the US’s request of increasing Oil production.
Afghanistan and Pakistan, though situated in South Asia, are considered part of the
Greater Middle East. U.S. intervention in both Afghanistan and Pakistan started with the Carter
Administration after the Soviet invasion of Afghanistan. The relations of the U.S. with
39
Afghanistan and Pakistan have been closely tied to the War on terrorism that has happened
There. American policy has been instrumental in coordinating the ongoing conflicts in
Afghanistan and north-western Pakistan. In recent times, political situations of both countries
Have been bracketed under a single theatre of operations, denoted by the newly coined American
Term “AfPak.”
US policy of intervention:-
The United States has been involved in numerous foreign interventions throughout its
history. There have been two dominant schools of thought in the United States about foreign
policy, namely interventionism and isolationism which either encourage or discourage foreign
intervention, both military, diplomatic, and economic, respectively. The 19 th century formed the
roots of United States foreign interventionism, which at the time was largely driven by economic
opportunities in the Pacific and Spanish-held Latin America along with the Monroe Doctrine,
which saw the U.S. seek a policy to resist European colonialism in the Western hemisphere. The
20th century saw the U.S. intervene in two world wars in which American forces fought
alongside their allies in international campaigns against Imperial Japan, Imperial and Nazi
Germany, and their respective allies. The aftermath of World War II resulted in a foreign policy
of containment aimed at preventing the spread world communism. The ensuing Cold War
resulted in the Truman, Eisenhower, Kennedy, Carter, and Reagan Doctrines, all of which saw
the U.S. embrace espionage, regime change, proxy conflicts, and other clandestine activity
After the Soviet Union collapsed in 1991, the U.S. emerged as the world’s sole
superpower and, with this, continued interventions in Africa, Eastern Europe, and the Middle
East. Following the September 11 attacks in 2001, the U.S. and its NATO allies launched the
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Global War on Terror in which the U.S. waged international counterterrorism campaigns against
various extremist groups such as al-Qaeda and the Islamic State in various countries. The Bush
Doctrine of pre-emptive war saw the U.S. invade Iraq in 2003 and saw the military expand its
presence in Africa and Asia via a revamped policy of foreign internal defence. The Obama
administration’s 2012 “Pivot to East Asia” strategy sought to refocus U.S. geopolitical efforts
from counter-insurgencies in the Middle East to increasing American involvement in East Asia,
as part of a policy to contain an ascendant China. The United States Navy has been involved in
anti-piracy activity in foreign territory throughout its history, from the Barbary Wars to
combating modern piracy off the coast of Somalia and other regions.
Nature of American neo colonialism is military in form. USA has been dominating the
world politics as a great super power. USA also controls the global North which includes the
European continent. Also it also has a grade influence in the Asian region.
In the present era USA and China has been emerging as two great superpowers in matters
of trade and infrastructure and military powers. Yes they can we regarded as new colonial
powers because they carry the features of what Neo colonialism each about. USA and China
both are able to influence the economies of nearly every state in the world. They have a major
role in shaping global economy and the world order. But they are also been checked by another
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Chapter-IV: CONCLUSION AND FINDINGS
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Conclusion and Findings:-
In the concluding remarks the researcher has explained about how the colonialism and
new colonialism evolved throughout the ages. Colonialism began with the emergence of age of
exploration. The nature of colonialism is observed to be changing from time to time. At first it
was only the mercantilism which was the target of European countries to expand the trade to
various countries. They came to Africa Asia and Latin America for the purpose of trade but with
the subsequent growth in power they dominated the economic political and cultural spheres of
the countries. The colonial powers started dominating the colonised countries and exploited the
resources for their own economic growth. Africa was major victim colonialism for which a cut
throat competition started among the colonial powers of Europe. In the subsequent periods and
began during the 1930s and gained momentum after the second world war. The economic and
political powers are transferred to the indigenous native people of the colonised countries. The
African and Asian countries got independence. The after effect of colonization made these on the
developed countries face impoverishment. Their own cultural ethos also got diminished. People
wanted to adopt the culture and tradition of the Western countries. Though it made some positive
impacts by spreading language literature and making technology advancement. The European
Nations became week after second World war where some faced Bankruptcy and some faced
territorial disintegrations.
But they did not want to lose their control over their colonies. So a new wave of
colonisation started in the form of neo colonialism. It is a form of indirect control over the less
developed countries by the developed countries. This was done mostly in Africa and Asia. The
dependency model surfaced. The less developed countries where so much dependent on the
43
grants and aid of developed countries. Developed countries also control the economy of under
USA and China emerged as the great superpower in matters of trade and armed forces.
The tried to expand their control in the under developed countries by trapping them in their debt
policy. USA and China carried all the features of neo colonialism. China has a greater
engagement in matters of trade and it dominates the import export mechanism in Africa and
South Asian region. At the same time USA has been a big superpower after the collapse of
USA. It kept doing military interventions in various countries of Middle East and South Asia.
At last it is proved that colonialism in the present Era is existing in the form of new
colonialism. This thing will not come to an end on till the under developed and developing
countries are able to make themselves self sufficient and at least able to register the major
powers like China in USA. This should try to emerge as economic forces in the global economy.
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