The end of World War II marked the onset of numerous independence movements worldwide. The major colonial powers, weakened and fatigued by the conflict, began to experience significant decline. Following centuries of oppression, the newly independent colonies faced many challenges, including poverty, illiteracy, social unrest, and weakened economies. Consequently, these independent nations relied on their former colonisers for financial assistance, starting a new era of neo-colonialism.
The term neo-colonialism was first coined by the French philosopher Jean-Paul Sartre in 1956, but it was popularised by Kwame Nkrumah, Ghana's first president. Nkrumah described neo-colonialism as:
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, the state’s economic system and thus its political policy is directed from outside. [1]
Scramble for Africa 2.0
The African continent has experienced the highest level of colonisation in the world. European powers partitioned Africa, plundered its resources, devastated its economies, established extensive slave trade networks, caused the deaths of millions, and eroded countless cultures. Even after African nations gained independence, their fragility was exploited by these same European powers to sustain their economic interests. The West continues to exert influence in Africa through various means.
Corporations
Western corporations maintain economic sway over their former colonies through multinational corporations. Shell is the most controversial Western corporation in Nigeria. Their ventures account for twenty-one per cent of Nigeria’s oil production. The multinational corporation placed its employees in every key government ministry to gain unparalleled influence in policy-making in the oil-rich Niger Delta.[2]
Foreign Aid
Another neocolonialist trap on the economic front has come to be known as ‘multilateral aid’ through international organisations: the International Monetary Fund, the World Bank, the International Finance Corporation, and the International Development Association are examples, all significantly having U.S. capital as their major backing. These agencies habitually force would-be borrowers to submit to various offensive conditions, such as supplying information about their economies, submitting their policies and plans to be reviewed by the World Bank, and accepting agency supervision of their use of loans. [3]
Military bases
Western nations operate numerous military bases across Africa, often requiring extensive land concessions and rights to explore for minerals and oil as part of the deal. They seek privileges like collecting customs, managing local administration, issuing currency, and gaining exemptions from customs duties and taxes for their foreign enterprises. Above all, they insist on the right to provide various forms of 'aid.' These demands can significantly undermine the sovereignty of the host nations. [4]
Chinese Debt Trap Policy
China was a poor, underdeveloped nation emerging from a brutal civil war in 1949. The following decades were marked by the devastating Cultural Revolution, initiated by Chairman Mao Zedong, and the Great Chinese Famine. Despite these tragic events, the 1970s witnessed a dramatic transformation in China. Under the leadership of Deng Xiaoping, a series of economic reforms were introduced. China adopted a more liberal economic approach, gradually shifting away from traditional communist economic policies. These reforms led to the ‘Chinese Economic Miracle’. This growth in economic power helped China increase its military strength and find a place for itself in the global power dynamics.[5]
In the past few decades, China has expanded its influence across the developing world. The Belt and Road Initiative (BRI) has been one of its most controversial foreign policies. China’s Belt and Road Initiative (BRI), often called the New Silk Road, is among the most ambitious infrastructure projects ever conceived. Launched in 2013 by President Xi Jinping, the vast collection of development and investment initiatives was originally devised to link East Asia and Europe through physical infrastructure.
The project has expanded to Africa, Oceania, and Latin America, significantly broadening China’s economic and political influence. Some analysts see the project as an unsettling extension of China’s rising power, and as the costs of the projects have skyrocketed, opposition has grown in some countries.
The United States shares the concern of some in Asia that the BRI could be a Trojan horse for China-led regional development and military expansion. China extends loans to countries that cannot repay them and then seizes assets in those countries when they are in financial difficulty. This gives China a strategic military reach. China uses its financial capacities pragmatically to gain control over the borrower country’s sectors, such as access to natural resources, or to open the market for its low-cost export of goods. These practices very well fall under the umbrella of neo-colonialism.[6]
How did India escape the clutches of neo-colonialism?
On 15 August 1947, India emerged as an independent nation in Asia. Initially, India grappled with numerous challenges, including pervasive poverty, widespread illiteracy, and underdeveloped infrastructure. However, the robust bureaucratic framework inherited from British rule emboldened by a meticulously designed constitution provided a strong foundation that safeguarded India from external interference in its political and economic affairs.
India played a crucial role in the Non-Aligned Movement, which aimed to provide newly independent nations with an alternative to aligning with either the Western bloc (led by the U.S.) or the Eastern bloc (led by the Soviet Union) during the Cold War.[7] This helped the country to avoid being drawn into the neo-colonial agendas of the superpowers.
The Swadeshi Andolan during the Indian independence movement greatly influenced Indian leaders and policymakers. They emphasised the need for India to be economically self-reliant. The Industrial Policy Resolution 1948 proposed a roadmap for a mixed economy and self-reliance.[8] Under the Prime Ministership of Lal Bahadur Shastri, the Green Revolution and the White Revolution helped India to become agriculturally self-sufficient. Also, they propelled India to become a world leader in agricultural products such as milk and tea.
The landmark Epochal Budget introduced in 1991 by former Prime Minister Dr. Manmohan Singh, then serving as the Finance Minister under Prime Minister P.V. Narasimha Rao, marked the beginning of India’s economic liberalisation. However, this transformation was approached with prudence. India carefully opened its economy, balancing integration into the global market and safeguarding its national interests.[9]
India also maintained an independent foreign policy, refusing foreign military bases on its soil and resisting participation in military alliances that could compromise its sovereignty. India helped many decolonisation movements, thus strengthening its solidarity among Global South Nations. [10]
Is India a neo-colonialist?
India gives substantive aid to its neighbouring countries for development and assistance. However, the citizens of these countries accuse India of meddling in their politics, government, and financial institutions. These concerns have increased anti-Indian sentiments in the Maldives, Bangladesh, and Nepal.
The ‘India out’ campaign in the Maldives gained traction after President Mohamed Muizzu came to power. His election campaign included ‘India out’ policies. Muizzu ordered India to withdraw its troops from Maldives and rejected renewing the Maldives-India hydrology pact. [11]
In Bangladesh, recent violent protests resulted in the removal of former Prime Minister Sheikh Hasina from office. The unrest was primarily sparked by a controversial legislative proposal that sought to provide reservations for the nation's freedom fighters. Several opposition leaders in Bangladesh alleged that the former Prime Minister and her political party, the Awami League, were significantly influenced by India. [12]
Despite a centuries-old relationship with Nepal, resentment towards India has grown significantly since Prime Minister K.P. Sharma Oli assumed office. Oli’s tenure has been marked by clashes with India over various issues, including territorial disputes, disagreements regarding the birthplace of Gautama Buddha, allegations of interference in Nepal's internal affairs, and India’s support for the Madhesi minority during ethnic unrest with the Gorkha majority. These tensions culminated in the controversial 2015 Nepal blockade, further straining bilateral relations. [13] [14]
Conclusion
While the waves of colonialism may have receded, a new form of indirect control and dominance has taken over. The developing world needs stability and order, having already endured great suffering due to past colonial exploitation. Countries in Africa, Asia, and South America have had their resources stripped away and their spirits diminished. Unfortunately, the repercussions are still felt today as these nations grapple with unstable governments, weak financial systems, inadequate infrastructure, high illiteracy rates, and poor sanitation. Such challenges create openings for more dominant countries to infiltrate and manipulate these regions, furthering their interests at the expense of local populations.
“Every empire, however, tells itself and the world that it is unlike all other empires, that its mission is not to plunder and control but to educate and liberate.” [15]
Edward Wadie, Columbia University
Article by:
Balaji K
Deputy, Training and Development
PES MUN Society
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