Masaryk university faculty of social studies


The Theory of Neo-Colonialism



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3 The Theory of Neo-Colonialism

3.1 Introduction


Although the concept of neo-colonialism was developed by many scholars, no official definition of this term exists. The first historical reference of neo-colonialism was made by Jean-Paul Sartre who used the term ‘neo-colonialism’ in 1956. The circulation of the term began in the 1960s during the acceleration of decolonisation process. In 1960, the magazine Présence africaine defined neo-colonialism as a new form of colonialism aimed at dominating and exploiting the countries in a more delicate form (Ardant 1965, 837-47). During the All African People’s Conference held in Cairo in 1961, a statement was made about neo-colonialism – ‘Neo-colonialism is the survival of the colonial system in spite of formal recognition of political independence in emerging countries which become the victims of an indirect and subtle form of domination by political, economic, social, military or technical means’ (Resolution on Neo-colonialism). Most importantly it was Ghanaian President Kwame Nkrumah who popularised this term and defined it as follows: ‘The essence of neo-colonialism is that the state which is subject to it is, in theory, independent and has all the outward trappings of international sovereignty. In reality its economic system and its political policy is directed from outside’ (Nkrumah 1965, 1). The Marxist-Leninist ideology and the theory of underdevelopment had a significant impact on Nkrumah (Grundy 1963, 441). The theory of neo-colonialism was regularly mentioned by African political leaders and became a catalyst for the accusative discourse (Fischer 2012, 1). The former colonial powers such as France, United Kingdom, and the Netherlands, were followed by new emerging powers such as the United States (US), erstwhile Soviet Union and China. International organisations such as the United Nations (UN), the World Bank (WB), the International Monetary Fund (IMF), the World Trade Organisation (WTO), the North Atlantic Treaty Organisation, the Central Treaty Organisation and the South East Asia Organisation have been accused as well (Ardant 1965, 839; Kabunda Badi 1996, 65-67; Nyikal 2005, 1).
After the Second World War the colonial system transcended into the system of neo-colonialism. The African colonies were divided into small unviable states which stayed dependent on the colonial powers (Nkrumah 1965, 4). The economic model of colonialism was not abandoned by the formal colonial powers even after the African countries were granted independence (Lutta 2011, 1; Martin 1985, 189). The intention of the process of decolonisation was to establish a new form of dependence through integration of African countries into international organisations (Nyikal 2005, 1). Neo-colonialism pursues the same vision as colonialism and that is to exploit the former colonies and keep them dependent (Haag 2011, 10). These dependent countries remain underdeveloped and the living standards of people low (Nimako 2010, 65). Neo-colonialism differentiates itself from colonialism by domination of sovereign independent states mainly through the economic means. Several authors (Ardant 1965, 847; Kabunda Badi 1996, 63; Haag 2011, 10) claim that neo-colonialism is more fatal than colonialism because the neo-colonial powers do not legitimize the occupation of other countries.

3.2 The Mechanisms of Control


Martin (1982, 228) perceives neo-colonialism as a multi-faceted phenomenon which combines various forms of administrating the country. He emphasizes neo-colonial aspects of control which include economy, technology, culture and military power. ‘Independence for former African colonies has meant trading the direct political control of colonialism for the indirect economic, political and cultural controls of neo-colonialism’ (Berman 1974, 4). Ardant (1965, 850) points out that neo-colonialism adapted itself to a new situation which demands economic and cultural domination. The mechanisms of neo-colonial control are indirect and non-transparent and vary from economic, financial to military and aim at sustaining leaders and officials who are favourable to the neo-colonial country (Haag 2011, 10-2).

3.2.1 Economic Control


The neo-colonial powers dictate the prices of commodities and manufactured goods, commit the neo-colonised countries to purchase manufactured goods in exchange of raw materials, set the rules on the transportation of goods and control capital (Haag 2011, 10). Supplementary economic measures include technological domination, application of consumption patterns, high interest rates, control of the banking system and obligation to export raw materials without an added value (Amin, 1974, 22; Nkrumah 1961; Nkrumah 1965, chap.18). In order to maintain the control over the country, a currency zone can be created as well as economic agreements favouring neo-colonial power (Martin 1982, 231; Sappor 2009). International organisations such as the WB, the WTO and the IMF performed direct neo-colonial control by enforcing the policy of Structural Adjustment Plans on African states. The maintenance and increase of indebtedness through loans provided by international organizations is another mechanism (Sappor 2009). The policies result in massive repatriation of income, dumping of cheap products, devaluation of currency and inflated prices of commodities (Nyikal 2005, 8-11).

3.2.2 Political Control


The decision-making by the neo-colonised countries must not threaten the neo-colonial institutions managing the country’s natural and economic resources. Therefore, the neo-colonial powers appoint their own civil servants and install a favourable administration. Other means include financing the government, supporting political coups, directing policy-making, monopolistic press and bribery of public servants (Ardant 1965, 850; Nkrumah 1965, 1, chap. 18; Nimako 2010, 65). Neo-colonialism can also be associated with provision of peace-keeping assistance, military intervention and conflict resolution. Sappor (2009) deems that the neo-colonial powers act according to their national interests. Neo-colonial powers divided the territories of their former colonies into smaller states which are dependent on foreign capital and military support. This fragmentation of the West Africa is called balkanisation (Ardant 1965, 850; Martin 1982, 227). The political control is also related to the cultural control, which takes several forms. The methods of cultural domination include promotion of culture, language and religion (Nkrumah 1965, chap. 18; Sappor 2009). Kabunda Badi (1996, 67) emphasizes the importance of education and scholarships granted to the elite African students which facilitate the imprint of the Western values.

3.2.3 Control through Official Development Assistance


The official development assistance (ODA) provided by international organisations and neo-colonial powers obliges African countries to share information about their economic policies. The donor states force the recipient countries to conclude agreements on economic cooperation and decide into which projects the aid shall be invested. They also influence internal monetary policies by lowering trade barriers and by safeguarding their private investments (Nkrumah 1965, chap. 18). Nkrumah (1965, 8) asserted that the development aid was a revolving credit which increased profits of the neo-colonial power. Amin (1974, 22) perceived technical aid and assistance as a proof of technological domination. The ODA is often used for prestige projects, salaries of government officials and embassies, and is not utilised for developmental purpose (Molnar 1965, 181).

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