What is Neo-colonization? Neocolonialism(also Neo-colonialism or Neo-imperialism)is the geopolitical practice of using capitalism, business globalization, and cultural imperialism to influence a country, in lieu of either direct military control or indirect political control, i.e. imperialism and hegemony.
Neocolonialism is the relationship between two nations in which one exercises strategic, economic and cultural domination, despite the legal independence of the other.
The term neo-colonialism describes the influence of countries from the developed world in the respective internal affairs of the countries of the developing world. It is also defined as the policy of a strong nation in seeking political and economic hegemony over an independent nation or extended geographical area without necessarily reducing the)
During the 1950s, African leaders began using a new word, neocolonialism, and there were even books published on the subject. Neocolonialism (neo = new; thus, “new” colonialism) refers to the idea that some countries can control their former colonies (or other less developed countries) by political, economic and cultural pressures.
How Neocolonialism affects 21st Century? In post-colonial studies, the term neo-colonialism describes the influence of countries from the developed world in the respective internal affairs of the countries of the developing world; that, despite the decolonization that occurred in the aftermath of the Second World War (1939–45), the (former) colonial powers continue to apply existing and past international economic arrangements with their former colony countries, and so maintain colonial control. A neo-colonialism critique can include de facto colonialism (imperialist or hegemonic), and an economic critique of the disproportionate involvement of modern capitalist business in the economy of a developing country, whereby multinational corporations continue to exploit the natural resources of the former colony; that such economic control is inherently neo-colonial, and thus is akin to the imperial and hegemonicvarieties of colonialism practiced by the United States and the empires of Great Britain, France, and other European countries, from the 16th to the 20th centuries.
The world-systems theory suggests that the aftermath of colonialism and the continuing practice of neocolonialism produces unequal economic relations within the world system. Sociologist Immanuel Wallerstein elaborated on these forms of economic inequality. In this theory, the world economic system is divided into a hierarchy of three types of countries: core, semi peripheral, and peripheral. Core countries (e.g., U.S., Japan, Germany) are dominant capitalist countries characterized by high levels of industrialization and urbanization.
Neocolonialism came to be seen more generally as involving a coordinated effort by former colonial powers and other developed countries to block growth in developing countries and retain them as sources of cheap raw materials and cheap labor. This effort was seen as closely associated with the Cold War and, in particular, with the U.S. policy known as the Truman Doctrine. Under that policy the U.S. government offered large amounts of money to any government prepared to accept U.S. protection from communism. That enabled the United States to extend its sphere of influence and, in some cases, to place foreign governments under its control. The United States and other developed countries also ensured the subordination of developing countries, critics argue, by interfering in conflicts and helping in other ways to install regimes that were willing to act for the benefit of foreign companies and against their own country’s interests.
More broadly, neocolonial governance is seen as operating through indirect forms of control and, in particular, by means of the economic, financial, and trade policies of transnational corporations and global and multilateral institutions. Critics argue that neocolonialism operates through the investments of multinational corporations that, while enriching a few in underdeveloped countries, keep those countries as a whole in a situation of dependency; such investments also serve to cultivate underdeveloped countries as reservoirs of cheap labour and raw materials. International financial institutions such as the International Monetary Fund and the World Bank also are often accused of participating in neocolonialism, by making loans (as well as other forms of economic aid) that are conditional on the recipient countries taking steps favorable to those represented by these institutions but detrimental to their own economies.

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