what is neocolonialism – Explained with Examples


In the era of 15th to 20th-century colonialism, the practice was observed in the world. Colonialism is setting up colonies in developing countries by power and afterwards exploiting them for their benefits. In those time European countries have sought control over many African and Asian countries.

What is Neo?

neocolonialism meaning

For example, India was politically under the control of Britishers. The developing country India attained freedom almost after 200 years when most of its resources were used by colonizers.

But in the 20th century period, after the Second World War, a new term erupted known as Neocolonialism. It was a matter of confusion among sociologist as it was likewise colonialism. But later on, it was concluded that neo-colonization is a practice where dominance is present but there is no direct political leadership. For example, a poor country needs some money, and a rich country provides it so in the name of debt former country loses its share of land, resources, and labours too. It was first observed by Kwame Nkrumah, the former president of Ghana at the time when African countries were getting out of Colonization.

Neo-colonization was the idea of controlling but it was also accounting for the exploitation of nations in place of development of poor countries. The only thing neo-colonization gave to society was more under-development in the name of debts. The amount a nation should use for their better industrialization gets used in paying debts as the interest rate goes higher with passing time.

One of the biggest international borrowings was seen when African countries requested a loan of 200 billion US Dollars from the World Bank but afterwards, everybody knew it would become impossible to repay it. So the American economist Jeffrey Sachs, a popular economist requested to dismiss the loan for the removal of Neo-colonization practice. But Africans did not take his advice and lined up their loan process because the poor children were dying out of hunger and less sanitation.

For example, even after achieving independence, many countries are facing neo-colonization which still hampers their growth. In the Marxist researchers, this term got its origin and Karl Marx has put India into Asiatic Mode of Production countries.


Many sociologists agreed that Neo-Colonization is the last stage of Imperialism and taken as the most dangerous stage too. It is abolished from every corner of the world, although it is practiced in African countries. Firstly the loan was seen as the major option for development but instead, it was just a way of increasing the gap between rich and the poor thus increasing class system.

The major problem is not whether the colonized country could pay the loan or not, but the misuse of power. For example, American countries use their nuclear weapons on poor countries destructing mankind and the whole country altogether. A recent example is Operative Protective Edge when there was an attack on Israel, kidnapping, and murder of many teenagers took place. Increased rocket attacks were contributing to more damage to both sides.