Third World Underdevelopment and Neocolonialism Dynamics
Third World Settings: Underdevelopment
The expression “Developing World” began to be used in the 1950s. This group included virtually all decolonized countries, and many other poor nations experiencing economic dependency. Third World countries are characterized by two certain facts: most of the population works in agricultural tasks, and industrialization is scarce.
Key Characteristics of Underdevelopment
- Low per capita income.
- Widespread malnutrition among much of the population.
- Shorter life expectancy and high infant mortality rates.
- Low schooling rates and poor health infrastructure.
- Low per capita energy consumption.
- Deficient communications and transportation infrastructure.
- Internal inequalities and economic dependence on other countries.
Most of these characteristics have persisted until today. In many new states, political independence was not accompanied by genuine economic independence. This situation of dependency is called neocolonialism.
Neocolonialism and Economic Dependence
New states and poor countries were subjected to unequal exchange. Economic powers bought raw materials, but the cost of imports generally exceeded the benefits obtained from exports. These countries faced significant difficulties in diversifying their economies, often failing to do so. They had to maintain traditional crops and continue exploiting their resources. However, unlike before independence, the former metropolises were no longer forced to buy their products and could offer them freely on the international market.
The day after independence, former colonies, exploited for years in favor of the metropolis, were often left decapitalized. To modernize infrastructure and purchase machinery and technology, they had to borrow from former colonial powers or rich countries. Consequently, their indebtedness to the powerful grew, resulting in a double dependency: economic and political.
Economic and Political Subordination
Economic dependence stemmed from exporting raw materials primarily to developed consumer countries. Political subordination occurred because developed countries often provided aid on the condition that the political regime favored their interests. This situation, coupled with the Third World population explosion, resource depletion or degradation, caused ecological and social policy disasters that persist.
During the 1980s and 1990s, trends seen at the time of decolonization continued in some poor countries, especially in Africa. The sale of weapons and the promotion of the arms race became a significant source of income for rich countries.
Japan and New Industrial Powers of Southeast Asia
Japan’s Post-War Economic Ascent
After World War II, Japan, under the direction of General MacArthur, was demilitarized and its system of government democratized. During the second half of the 20th century until the beginning of the 21st, the Japanese government was led by the Liberal Democratic Conservative Party, making it a strong ally of the United States.
Economically, Japan experienced sustained growth, which was spectacular for decades. This success is usually attributed to:
- The persistence of large business conglomerates that oriented their production toward high technology.
- Japan not spending heavily on armaments during the Cold War.
- The important role of Japanese labor discipline.
From the 1990s, the economy experienced a slowdown.
The Asian Tigers
One of the most remarkable economic phenomena was the appearance of four Southeast Asian countries (South Korea, Taiwan, Singapore, and Hong Kong) that experienced spectacular economic growth. Malaysia and Thailand soon followed, and later the Philippines and Vietnam were also included, sometimes referred to as the Asian Tigers due to their dimensions.
Characteristics of the Asian Tigers’ Model
Their development model was characterized by an openness to the world without excessive liberal interventionism or state dirigisme. The main features of this global development model included:
- Very rapid economic growth rates.
- High levels of savings and investment.