Challenges of Developing Nations: Neocolonialism, Non-Alignment, and Economic Realities
ITEM 10
Neocolonialism: Economic and Cultural Control
Neocolonialism is based on cultural and economic control exerted by some developed countries over their former colonies or other developing countries. The economic control and exploitation of resources, often targeting minority interests belonging to a foreign country, is not always conducive to agricultural and industrial development.
Methods of Neocolonialism
Three primary methods have been observed:
- Economic Control: Achieved through investment, establishment of trade, and the orientation of economic aid.
- Political Control: Sought through the collaboration of theoretically independent governments.
- Military Intervention: A less common method, leading to military intervention and the establishment of friendly governments.
International Policy: Neutrality and Non-Alignment
Most Third World countries gained independence during the Cold War. They sought to position themselves as a third international force, independent of the two major blocs. This process unfolded in several phases.
Neutralism
The first phase aimed to avoid direct confrontation between the blocs and to change the framework of international relations. It sought a practical extension of the principle of equality for all states.
The Non-Aligned Movement
The second phase constituted the Movement of Non-Aligned Countries. It began in 1960. Its objectives, asserted in subsequent conferences, included affirming non-alignment and supporting the process of independence for colonial territories.
Common Characteristics of Developing Countries
Underdevelopment refers to a set of circumstances that lead to miserable living conditions for a very large population. Underdevelopment has several defining properties, though their intensity may vary.
External Economic Dependence
The economy of these countries is often based on the export of raw materials and the import of manufactured goods, particularly from developed countries, which account for 80% of their trade.
Disparities in Wealth Distribution
The World Bank classifies countries by income. Low-income countries are those with less than $765 per capita. Middle-income countries include nations like Senegal and Seychelles. High-income countries range from Croatia to Luxembourg in this category.
More significantly, however, are not just these inequalities between countries, but the huge differences in the internal distribution of wealth, where a few families possess unimaginable riches. Furthermore, these resources often flow into foreign markets.
Dominance of the Traditional Agricultural Sector
This sector presents several problems:
- Very primitive farming techniques result in low yields, barely enough to feed the population.
- Low yields and outdated techniques hinder the agricultural revolution, unlike in the West where it preceded industrialization. Needed improvements (such as irrigation, modern fertilizers, and machinery) are not implemented due to lack of capital.
Mining and Energy Sources
The exploitation of mining and energy resources has increased steadily since the 1960s, driven by three main factors:
- Depletion of reserves in developed countries.
- Advances in transport.
- Growing industrial production in developed countries.
Oil is a special case. Oil-producing countries, grouped in OPEC, raised prices significantly after 1973 due to the Yom Kippur War. Following the Camp David Accords in 1978, prices stabilized and even fell, primarily due to an increase in global supplies.
Industry and Trade
The Third World did not experience its own industrial revolution. The arrival of Europeans ruined their traditional handicraft sector, which could not compete with manufactured goods from the metropolis. For example, the British banned the production of certain yarns from India.
The establishment of an industrial structure requires heavy investment, a population with an adequate level of preparation, and a large internal market. Countries like South Korea, Taiwan, and Singapore, supported by very low wages, produced low-priced manufactured products for world markets. They gained significant benefits, which were reinvested in a growing industrial sector, leading to prosperity.