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.

Top 6 Reasons of Emergence of Neo-Colonialism

• (1) Weakened Position of European Powers:
• (2) Rise of Consciousness against Imperialism:
• (3) The Needs of the Developed States:
• (4) The Continued Dependence of the New States on Developed States:
• (5) Impact of Cold War:
• (6) The Policies of the USA and the (Erstwhile) Soviet Union:

The term neocolonialism was first used after World War II to refer to the continuing dependence of former colonies on foreign countries, but its meaning soon broadened to apply, more generally, to places where the power of developed countries was used to produce a colonial-like exploitation—for instance, in Latin …

Kwame Nkrumah

Che Guevara is another famous opponent of neocolonialism. Most people who use the word neocolonialism and believe it describes the world today are socialists, anti-imperialists, and other types of leftists.

The term neocolonialism is used by some authors to describe the relationship of nominally independent countries in Latin America with metropolitan or developed countries from independence in the 1820s to the present.

By the 1820s, most of Latin America had gained political independence from its colonial masters. Neocolonialism also led to cultural shifts. For example, predominantly Catholic Latin American countries implemented freedom of religion in order to encourage foreign investment from Protestant powers.

Colonialism is a practice of domination, which involves the subjugation of one people to another. Like colonialism, neocolonialism also involves political and economic control over a dependent territory.

Top 7 Methods of Neo-colonialism

• Through Interference in the Internal States of New States:
• Through the Supply of Arms and Weapons:
• Use of Foreign Aid and Loans:
• Through control over International Economic Institutions:
• Through the use of Multinational Corporations:
• By creating Economic Dependencies:
• By Creating Satellites:

Though colonialism is generally considered to be a relic of the past, nearly 2 million people in 16 “non-self-governing territories” across the globe still live under virtual colonial rule.

Neocolonialism refers to the unequal economic and power relations that currently exist between former colonies and former colonizing nations. Marx viewed colonialism as part of the global capitalist system, which has led to exploitation, social change, and uneven development.

As nouns the difference between colonization and decolonization. is that colonization is the process of establishing a colony while decolonization is the freeing of a colony etc from dependent status by granting it independence.

Decolonization is defined as the act of getting rid of colonization, or freeing a country from being dependent on another country. An example of decolonization is India becoming independent from England after World War II. The act or process of eliminating colonialism or freeing from colonial status.

British Empire

The main similarity between the terms “colonialism” and “imperialism” is that they both describe exploitative relationships between those nations and/or people with power and those without. Colonialists and imperialists alike dominate those of distant lands, people they regard as racially or culturally inferior.

Colonialism is where one nation assumes control over the other and Imperialism refers to political or economic control, either formally or informally.

Colonialism is defined as a practice in which a power sets up colonies or settlements elsewhere (in other countries or territories) (Singh, 2001) for the political and economic benefit of the colonizing country. So, imperialism serves as the underlying ideas, whereas colonialism is an established form of imperialism.

Capitalism was marked by its dynamism, its potential to grow, expand, innovate, use technology and labour in a way best assured to ensure greatest profits. Capitalism was also marked by its global nature of being linked to western colonialism.

The existence of colonies, i.e., underdeveloped territories dependent on a ruling power, is not a phenomenon of capitalism, as its enemies so ardently contend, but of the very absence of it. The colonial empires of the Western nations were built in periods of mercantilism or rising nationalism..

Therefore, imperialism is the highest (advanced) stage of capitalism, requiring monopolies (of labour and natural-resource exploitation) and the exportation of finance capital (rather than goods) to sustain colonialism, which is an integral function of said economic model.

Colonialism is a methodology of spreading capitalism. Colonialism is a form of political exploitation that fosters an economic system championed by greed. Capitalism is oppression of the bougeois.

four types

According to Hobson, imperialism resulted from a capitalist desire for additional (outside) markets. Hobson argued that overproduction, in turn, leads to a system in which “more goods can be produced than can be sold at a profit” (Hobson, 81).

Mechanization of the manufacturing process led to the Industrial Revolution which gave rise to two major competing economic systems: capitalism and socialism. Under capitalism, private owners invest their capital and that of others to produce goods and services they can sell in an open market.

A capitalist economy relies on free-markets to determine, price, incomes, wealth and distribution of goods. A socialist economic system is characterised by greater government intervention to re-allocate resources in a more egalitarian way. There are also different aims of the economic systems.

The Industrial Revolution transformed economies that had been based on agriculture and handicrafts into economies based on large-scale industry, mechanized manufacturing, and the factory system. New machines, new power sources, and new ways of organizing work made existing industries more productive and efficient.

Capitalism requires a bourgeoisie and a proletariat. These two classes are brought to the front by the industrial revolution. The increase in productive capacitiy of industry then pushed out a great deal of other classes such as peasants, the artistans, nobility, etc.

​Capitalism caused the Industrial Revolution because industrialization required significant work and investment from individuals and not necessarily the government. This investment from individuals, whose actions were guided by the profit motive, would not have been possible without the emergence of capitalism.

: social organization in which industries and especially large-scale industries are dominant.