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 The first historical reference of neo-colonialism was made by Jean-Paul Sartre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.