Sarat Chandra IAS Academy

UPSC Civils Daily Mains Question 11th May-2021

Neo-colonialism 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. Critically examine the role of international institutions in neo-colonialism.

Colonialism is setting up colonies in developing countries by power and afterwards exploiting them for their benefits. Neo-colonialism defined as the economic sabotage of underdeveloped countries propagated by developed countries and large multinational corporations. Neo-colonialism is also defined as the control of less-developed countries by the developed countries through indirect means such as economic exploitation and promotion of capitalism.

International institutions supporting neo-colonialism

  • Soft loans from international financial institutions like IMF and World Bank put conditions on recipient countries which may be detrimental to their economies. Because in neo-colonialism the developing countries are exploited by the developed countries particularly pertaining to labor and mineral wealth.
  • Free market economic policies promote accumulation of wealth which leads to rising inequalities, particularly in the developing countries.
  • Biases in the functioning of UN Security Council helped promote neo-colonialism.

Arguments against to the international institutions not supporting neo-colonialism

  • Globalization assisted by international institutions has helped promote faster economic growth in developing countries.
  • Institutions like WTO provides a fair opportunity for developing nations to bargain with developed nations mainly due to consensus based decision making.
  • International financial institutions like World Bank, IMF and NGOs like Bill and Melinda Gates Foundation assist developing countries in poverty alleviation programmes, and other infrastructure development projects.
  • UN peacekeeping missions are instrumental in restoration of peace in conflict zones.

A humane and fair globalization is needed which is beneficial for the marginalized and the most vulnerable globally.

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