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Day 5 – Q 5.What do you understand by ‘neo-colonialism’? How is it affecting the world today? Examine?

5. What do you understand by ‘neo-colonialism’? How is it affecting the world today? Examine?

नव-उपनिवेशवाद ’से आप क्या समझते हैं? आज यह दुनिया को कैसे प्रभावित कर रहा है? जांच करें।


Neo-colonialism is the term used to define the economic sabotage of underdeveloped countries propagated by developed countries and large multinational corporations. It was first observed by Kwame Nkrumah the former president of Ghana in the 1960s at the time when African countries were getting out of colonization.


Effects of neo colonialism in the world today:

  • Economic exploitation: It has economically exploited the underdeveloped/developing nations. Although the factories and other establishments are setup in the developing countries, the profits and other benefits are appropriated by the developed countries. Foreign capital is used for the exploitation rather than for the development of the less developed parts of the world. Ex: Minerals and other raw materials are sourced from Africa but profits are accrued by the west.
  • Dependency: It has made the developing nations dependent on foreign aid by the developed nations. According to Dependency Theory, the developed nations are at the center and the developing nations at the periphery. Those in the periphery are dependent on the centre for their existence. Ex: Some African and Asian countries are dependent on the aid from west.
  • Growing inequality: Investment under neo-colonialism increases the gap between the rich and the poor countries of the world rather than decreases it.
  • Environmental effect: Due to unsustainable business practices, the ecological and environmental resources are being exploited leading to global climate change. Also these colonies have become dumping grounds for industrial and nuclear wastes.
  • Humanitarian crisis: Often the most vulnerable sections of the society like children and women are employed under unsafe conditions in many colonies. Ex: Sierra Leone.
  • Military bases: Often the developed nations have their military bases in small nations as a portrayal of their military might, which is against the ideology of freedom and sovereignty. Ex: UK base in Diego Garcia, French military base in Djibouti.

The forty-six-year-old U.S. economic embargo against Cuba, the concerted move of the U.S. to destabilize Venezuela, Syria and Iran and violence against the success of democracy in Palestine and Latin America as a whole, are by and large parts of further neo-colonial offensives against the Third World countries.

However there is a counter view that the investments made by the developed nations has led to economic growth and prosperity of many developing nations.


The only possible solution to counter neo colonialism is a humane and fair globalization, a globalization which is beneficial for the marginalized and the poor people of the world too.

For, as Fidel Castro observes, “Globalization is an irreversible process, and what we have to decide to choose is the kind of globalization which will be instrumental for the overall welfare of humanity as such and not the welfare of a few at the expense of the majority of people of the world.”

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