With the decolonisation starting after World War II African countries became independent from their former European colonisers. While the process of achieving political independence is generally accepted as completed, economic independence remains uncertain.
There are various fields in which dependency on former colonisers can be observed.
Many African politicians and Non Governmental Organisations (NGOs) regard supra-international institutions like the World Bank, the International Monetary Fund (IMF) and the World Trade Organisation (WTO) as western dominated institutions, which impose their ideas of Politics and Economics on the so called “third world countries”. This can take place in forms of credits to African countries by the IMF. These credits are subject to “Structural Adjustment Programs” (SAPs) the receiving country has to implement. A SAP mainly focuses on the liberalisation of a country’s economy and thereby takes the country’s independence in choosing its own policies.
In the last twenty years NGOs, academics and politicians became aware of an emergent debate on a new world order in trade relations. By criticising the trade policy of developed countries, NGOs, such as Oxfam and Attac, accuse these countries of keeping the third world poor and dependent on the first world (Oxfam 2002). By subsidising the own economy and protecting it through tariffs, developed countries hinder the developing countries to increase exports and thereby national income. This essay focuses on this relationship between the third and the first world in international trade. It aims to prove the statement of the NGOs and thereby figure out whether there is a neo-colonial tendency in trade relations between the first and the third world) or not.
Table of Contents
1. Introduction
2. Neo-colonialism and its relevance for international trade
3. Empirical analysis of the third world trade
3.1 Development of the export and import structures of Sub-Saharan Africa
3.2 Development of trade barriers in international trade
4. The impact of the trade barriers on the export performance of Sub-Saharan Africa
5. Theoretical background
5.1 Free Trade
5.2 Protectionism
6. Conclusion
Research Objectives and Themes
This essay investigates whether modern international trade relations between the First World and the Third World, particularly with Sub-Saharan Africa, exhibit neo-colonial tendencies. The author analyzes whether current trade policies perpetuate economic dependency and hinder the development of these nations.
- Neo-colonialism in the context of international trade and economic dependency.
- Empirical trends in Sub-Saharan African exports, imports, and trade barriers.
- The role of subsidies, tariffs, and non-tariff barriers (NTBs) in shaping global trade outcomes.
- A comparative analysis of Free Trade theory versus Protectionism regarding Third World development.
- The impact of international trade policies on the economic autonomy of developing nations.
Excerpt from the Book
2. Neo-colonialism and its relevance for international trade
The term “neo-colonialism” was coined by third world leaders, who found that “the achievement of constitutional independence ... did not give total freedom to the governments of the newly founded states” (Smith 1996, p. 121). They perceived a continuing presence of western financial and economic interest in the third world countries.
At the All-African People’s Conference in Cairo in 1961 a resolution was passed which stressed that neo-colonialism is an “indirect and subtle form of domination by political, economic, social, military or technical means” (Woddis 1980, p. 61). Kwane Nkrumah (cited in Smith 1996, p. 121), the first prime minister of Ghana, spoke of a “not ending economic colonisation”.
Neo-colonialism implies that there can be no political independence while economic dependency still remains. During the Cold War period many socialists and communists dealt with the problem of neo-colonialism. From their point of view neo-colonialism aimed to preserve the “imperialist economic and strategic interests” the western world had in the third world (Woddis 1980, p. 58). Due to the West-East conflict the West attempted to invent the capitalist system in the third world countries for the expansion of the market for western capital and products. Economics, as the core of neo-colonialism, is directed toward assisting the profit-making functions of the monopolies in an effort to provide the Western countries with the necessary economic power. The third world is to remain the producer of goods that are of interest to the first world (raw materials, minerals and foodstuff) and to serve as market for the western manufactured goods. By selling the raw materials under buyer’s conditions and buying the first world products under seller’s conditions, the developing countries could be kept economically weak and dependent on the western world (Woddis 1980, p. 87).
Summary of Chapters
1. Introduction: Outlines the shift from political decolonization to the ongoing struggle for economic independence and defines the scope regarding neo-colonial tendencies in trade.
2. Neo-colonialism and its relevance for international trade: Defines neo-colonialism as an indirect form of economic domination and explores its historical and structural roots.
3. Empirical analysis of the third world trade: Provides a data-driven overview of Sub-Saharan Africa’s trade performance from 1955 to 2000, including structural challenges and the rise of trade barriers.
4. The impact of the trade barriers on the export performance of Sub-Saharan Africa: Examines how specific trade policies, such as agricultural subsidies and non-tariff barriers, negatively affect the economic competitiveness of African nations.
5. Theoretical background: Contrasts the Free Trade theory with the theory of Protectionism to provide a framework for evaluating current international trade debates.
6. Conclusion: Synthesizes the arguments and concludes that while trade policies often disadvantage developing countries, they do not constitute a monolithic "neo-colonial" plot, though current trends exacerbate existing inequalities.
Keywords
Neo-colonialism, International Trade, Sub-Saharan Africa, Terms of Trade, Protectionism, Free Trade, Trade Barriers, Subsidies, Economic Dependency, Structural Adjustment, WTO, IMF, Exports, Imports, Development.
Frequently Asked Questions
What is the primary objective of this study?
The study aims to determine if contemporary international trade relations between the First and Third World reflect neo-colonial tendencies by analyzing trade policies and their impact on developing countries.
What are the central themes discussed in the work?
Key themes include economic dependency, the evolution of export/import structures in Sub-Saharan Africa, the role of international financial institutions, and the debate between Free Trade and Protectionism.
What research methodology is employed?
The research utilizes an empirical analysis of historical trade data (1955–2000) combined with a theoretical review of trade policies, contrasting the arguments of free traders and protectionists.
What does the main body of the text cover?
It provides an empirical overview of African trade performance, discusses the restrictive nature of tariffs and subsidies in developed nations, and examines the theoretical justifications for different trade policy stances.
What is the core definition of neo-colonialism in this context?
It is defined as an indirect and subtle form of political and economic domination that maintains the dependency of former colonies on their colonizers, particularly through economic and trade structures.
Which groups are the primary actors identified in the discourse?
The work highlights the roles of international institutions like the WTO, IMF, and World Bank, as well as the influence of NGOs like Oxfam and Attac in criticizing current trade disparities.
How does the author characterize the impact of US cotton subsidies on Africa?
The author uses the US cotton industry as a case study to illustrate how heavily subsidized domestic industries in the First World artificially lower global prices, leading to export losses and debt accumulation for African nations like Burkina Faso and Mali.
Does the author conclude that neo-colonialism is explicitly occurring?
The author concludes that while current trade policies disadvantage Third World nations and often undermine their potential to compete, it cannot be definitively claimed that these countries are being universally treated worse due to a conscious neo-colonial agenda, though the negative effects are undeniable.
- Citation du texte
- Sebastian Weber (Auteur), 2003, Do international trade relations between the third world and the first world represent neo-colonial tendencies, Munich, GRIN Verlag, https://www.grin.com/document/43056
