NEO COLONIALISM AND UNDERDEVELOPMENT IN THE THIRD WORLD COUNTRIES
NEO COLONIALISM AND UNDERDEVELOPMENT IN THE THIRD WORLD COUNTRIES
CONCEPT OF NEO COLONIALISM AND UNDERDEVELOPMENT
NEO COLONIALISM (CONTEMPORARY COLONIALISM)
Is a situation in which a country is independent politically but still dominated by another country (usually strong and imperia list) economically, culturally, socially and even military with aimed at restoration (restoring) and preservation of the imperialist positions in the LDCs.
This started after colonies achieve their independence in 20th century up to 21st century.
Neo-colonialism is a direct control of an independent nation by another country which is more powerful economically, socially and military, hence Neo-colonialism is the method that the former colonial masters planned in order to continue exploiting their former colonies after they got their political independence.
Neo-colonialism is a continuation of colonialism in a country which is politically independent under new conditions like to agree conditions of SAP’S such as devaluation of currencies, reduction of workers, cost sharing in social services etc. with all these conditions aims at controlling the former colonies indirectly.
Is the situation whereby a country is politically independent but economically dependent, hence under Neo-colonialism there were no indigenous people have succeeded to liberate themselves from colonial rule but they are still milled economically by imperialist power hence a country with Neo-colonization is a country of flag independence
Neo-colonialism means one country politically independent but still dominated by other countries usually strong economically.
According to Walter Rodney on his book of “How Europe underdeveloped Africa; he argued that under development is not absence of development rather is the process of comparing between one society with another, one country with another and continent by continent.
Hence under development is a relative term which denotes a situation of economic, social or even political backwardness when it cover on the situation of comparison to that in advanced countries; African is underdeveloped when you compare Africa with America or Europe.
CHARACTERISTICS OF NEO – COLONIALISM
1. A country with neo-colonialism is characterized with economic dependence because; a country with neo-colonialism cannot decide on its own as fallacies as economic is concern, rather they have to depend from capitalist nation for development in those nations.
2. A country is also characterized by under development because it is exploited by the imperialists through indirectly by using loans and grants which a country is given from IFM, WB and other international cooperation’s hence after the loans and grants; the rich harvest the super profit from LDCs which are taken to develop their countries in Europe and Northern America.
3. A country by puppet regime which works daily to supervise the operations of Neo-colonialism in their nations for interest of the capitalist in Europe and U.S.A.
4. A country with no national culture; this is because a nation under neo-colonialism is forced to follow and implement culture like way of dressing, eating for the benefit of imperialist who impose their culture in that nations.
5. A country has no political will of its own; this is because everything politically is directed from outside countries and the remaining masers have no say (decision) over their political will.
CHARACTERISTICS OF UNDER DEVELOPMENT IN LDC’s
1. 1. Underdeveloped characterized by economic dependence; this is because the LDCs are poor economically and always rely on the developed countries for economic assistance and Aids e.g. Assistance and AID from IMF, WB, European Union, Paris – club etc. Hence the LDCs tend to depend on the rich countries economically e.g. They depend on clothes, machines, cars, goods and technology from developed countries.
2. Underdeveloped week technological and industrial base hence the LDCs import technology from developed countries in their attempt to the industries e.g. the LDCs do import technology like redder, laboratory equipment, agricultural equipment and industrial technologies.
3. Underdevelopment is lack of strong internal linkages of the economy due to weak link between sectors such as agriculture and industry, because of this the LDCs have remained as a producers of agricultural raw materials and the buyers of manufacturing goods from abroad e.g. The LDC s produce cocoa, groundnuts, rubber, wheat, tea, cotton etc. with all these agricultural products are taken to be manufactured as goods in developed countries and later on these goods are imported and later on these goods are imported to the LDCs where they are sold highly.
4. The LDCs there is political instability because many of the third world countries are victims of civil wars and interstate wars due to availability of guns and interface of internal matters by the super powers with regard to the level of development in the LDCs, destruct peace and security and led to the influx of refugees to neighboring countries e.g. Refugees of Rwanda, Burundi and DRC in Tanzania, Refugees of Ethiopia and Somalia in Kenya, Tunisia, Egypt, Libya in Mali etc.
5. Underdevelopment is characterized by price fluctuation of raw materials from the LDCs in the world market due to in-ability of the LDC’s to fix prices for both their export and import, hence all the prices of raw materials and manufactured goods are fixed by the imperialist at the world market e.g. In 2000’s the prices of cotton was US – $5 PER Kg while in 2011 the prices of cotton was 3 US dollar per kg and the price keeps on changing each year with affect the LDC s who cannot fix the prices in the world market.
6. The LDC s are characterized by low per capital income; this is because people in these countries do earn low earnings and majority of them are unemployed and their selling of agricultural raw materials always harvest low profit hence low per capital income for people living in LDCs.
7. LDCs have low growth national product (G.N.P.).
This is because countries found in the LDC s always are exploited by the developed countries e.g. their agricultural raw materials in the world market face the problem of price fluctuation, minerals are exploited for the benefit of the rich countries all these led to low gross national product.
8. LDCs have mono-cultural economies in which their economies are based on one cash crop or mineral production due to absence of economic diversification hence with price fluctuation in the world market. These countries suffer much economically.
9. The 3rd countries have low value of their currencies compare to that 7 currencies of the developed countries e.g. the sh. of Kenya, Uganda and Tanzania have low value compare with dollars of US, Dutch mark of Germany, pounds of Britain etc. Likewise there is devaluation of currencies in the 3rd world countries it the common feature.
10.There is rate of illiteracy, infant mortality rate and low life expectancy compared to that of Europe or U.S.A, in sufficient calorific intake, high rate of diseases like epidemic diseases i.e. HIV, Ebola and TB.
11.Oil crisis is also problem in the LDCs.
12.There problems of hunger, famine, floods and drought.
MECHANISMS USED TO PERPETUATE NEO – COLONIALISM IN LDCs
Neo-colonialism operates in different areas/angles in the former colonies like controlling the economies of LDC s, imposing their culture in the 3rd world countries, planting their puppet leaders to control the government in the LDCs, puppet leaders to control the government in the LDCs, training military officers etc. as what the major mechanism as elaborated below.
The former colonial masters impose/provide harsh conditionality for their aid they provide to the LDC s for develop, these conditions are like;
1. Privatization of economy.
Whereby the poor nation are formed to privatize their economy which used to be shared by all indigenous class hence Neo-colonial states cannot manage to exercise unless to privatize their economy.
2. Welcoming foreign investors to invest in neo-colonies on condition that they repatriate with their profit in foreign exchange.
3. Giving loans and grants on conditions that the recipient world abandon mono partism and follow/peruse multiparty, devaluate their currencies, adopt cost sharing etc. but also the LDCs have to pay loans with high interest.
4. Forcing the LDCs to abandon the price commission and later the prices full and revise price fluctuation, according to the law of supply and demand which is purely a capitalist would market in with the capitalist control the world market and fix prices of raw materials from LDCs – hence the government of LDCs should allow trade liberalization to operate in their countries.
5.Supporting joint ventures organization like NGO’s working jointly with local people in different areas.
1. The rich countries send military aid like military hardware such as weapons to keep peace and security and bringing unit in the LDCs; but also the rich countries tend to train soldiers of the LDC s in order to have military skills, knowledge and experience in protecting and defending their countries against their enemies.
2. Sometimes the rich counties tend to come with the troops pretending that they are after peace keeping and defending countries against libels e.g. in the Franco phone countries where the French always used this trek to take the resources of the former colonies e.g. Sierra – Leone, Liberia, Madagascar, Chad, Mali etc. likewise currently the rich countries tend to establish military bases on the soil of the developing countries to defend their harvested interest there e.g. in Mombasa – Kenya, Somalia, Pakistani, Saud Arabia etc.
The government in neo-colonies are controlled by the rich nations by supporting and financing puppet leaders to take power and control the government in the LDCs hence puppet leaders are forced to implement the interest of the imperialist such as exploiting the resources of their country for the benefit and interest of imperialist e.g. the late Seseseko Mobutu in Zaire (D.R.C.) and late Laurent Kabila in (D.R.C.) Charles Taylor in Liberia, The Late Fodey Senko in Sierra – Leone. Likewise Neo-colonialism operate through organizations led by their former colonial masters e.g. for the common wealth (for ex-British colonies) and Franco Phone (for ex-French Colonies).
Neo-Colonialism operate through different ways such as introducing western culture in which people of the LDC s are forced to follow western culture like dressing style, eating style etc. but also people of LDC s have forced to follow education system of the west by abandoning different and important things in education system practiced in the LDC s by adopting the western education system.
Neo-colonialism operate through introduction of western dancer, films and cinema, phonographs and many others evil with affect people in 3rd world countries culturally with all those affect e.g. people of LDC s are now abandon their traditional dances (drams) songs, music due to operation of Neo-colonialism.
IMPACT/EFFECTS OF NEO-COLONIALISM
1. It led to political instability in many countries of LDC s due to civil wars and interstate wars, e.g. Angola, Burundi, DRC and Somalia etc.
2. It led to perpetuation of economic exploitation of the LDCs by big powers that usually tend to exploit resources for their benefit by using the back door, hence LDC s tend to stagnate economically.
3. It led to economic dependence and problem due to export and import economy, harsh economic conditions, part by developed countries to the LDC s and control of the world market in which the prices of agricultural raw materials from LDCs keeps on changing due to price fluctuation.
4. Led to total underdeveloped due to economic, political and cultural evils imposed in the LDC s by the rich nations like; devaluation of currencies, cost sharing in social services, paying high interest rate from the loans offered in the LDC s and exploitation of the resources of the LDC s done by Neo – colonialism dairy in the LDCs.
5. It Led to low level of science and technology due to importation of ready manufacture goods in the LDC s hence people of the LDC s tend to consume goods which have already made; this stagnate the knowledge, skills and experience of the people in the LDC s to develop their science and technology.
6. It perpetuate cultural imperialism/impose western culture in LDCs; where by people of the LDCs tend to adopt, follow, respect and obey the cultural of Europeans such as dressing style, marriage, eating style and neglecting their own culture.
7. It led to acute poverty in the LDC s due to control of the world market and fixing the prices of agricultural raw materials from the LDCs, much exploitation of resources of the LDCs, heavy conditions imposed by colonialist in the LDCs e.g. accepting loans with high interest all these lead to acute poverty among the people in the LDC s.
8. It leads to continuation of the domination of the world market by imperialist powers. This is because the imperialist powers tend to dominate and control the world market for their own interest e.g. Rich nations tend to fix prices of the agricultural raw materials from LDC for their advantage while the products/manufactured goods from the rich nations are fixed in prizes in such a way that the LDC must be in disadvantage for them to benefit.
9. It Leads to heavy indebtedness i.e. (leads to too much debts) in the LDC s due to continuous borrowing from imperialist nations usually from rich and developed counties hence the LDC face the debt crisis daily and which have caused these developing countries to run bankrupt and fail to run their daily activities more smoothly.
10. It Leads to un balanced and unimplemented budget in the LDC s due to over reliance i.e. too much depending from foreign aids, grants and loans; this has caused a lot of projects and dip plans such as constructing welling, and dawn/provision of good social services, construction of infrastructure methods, improvement of agricultural prod not implemented by the government of LDC s.
11. It leads to death due to cooperation’s of Neo-colonialism in the LDC s like importing expired drugs, civil wars, etc. where the developed countries sell weapons to the fighting nation of same nation.
12. It has caused LDCs not to have say on their own internal matters because of the continuous controlling of the internal affairs by the foreign powers through neo-colonialism and its organizations e.g. Nigeria was suspended from its common wealth membership after it killed the Ogoni environmental activities and the written KenySaroWiwa in 1996, Zimbabwe after Mugabe annexed the Land from European settlers and announcement of the national election.
SOLUTIONS/SUGGESTED METHODS OF CONTAINING/PREVENTING/AVOID/COMBATING NEO–COLONIALISM AND UNDER DEVELOPMENT
The following are the suggested methods and solution to prevent the problems of neo-colonialism and under development in LDCs.
1.Practicing the policy of self reliance by mobilizing our own natural and human resource, technology and industry so as we can avoid depending on abroad.
2.Establishing and strengthening economic integrations among countries in the LDCs with the aim of having opportunities for industrialization, creating the wider market and having the big sell in the big trade and monetary system.
3.Through the UN meetings and regular summits the LDCs must seriously attack and condemn Neo – colonialism with its operation in LDC s.
4.Establishing integrated self sustaining national economies for the aim of this LDC s must be self sustained economically and reduce to much depending on the developed countries e.g. the bilateral agreement as Uganda and Libya stated.
5.Establishing local industries and developing those which have attend established and appropriate local technology in order to avoid total reliance of developed industrial goods and technology.
6.To establish our own multinational cooperation’s so that these multinational cooperation’s would be the solutions for the problems facing the LDC s economically like inter regional and international trade, market problems, provisional of aid, financial problem and grant problem.
7. Establishing strong internal linkages in economies among different economic sectors in the LDCs in order for what may be produced in one sector must be manufactured in another sector for the drop of LDC s e.g. between agriculture and industrial sector.
8. By getting control of our own economy through putting emphasis on the use of our own natural and human resources adopting appropriate technology in order to build up self internal economy in steady of depending from outside.
9.All LDCs should reject a western standard of consumption and living for both individual and all society because; the western standard of living and consumption are basing on exploitation of LDC s and their own poor people therefore any attempt of the LDC s to introduce western consumption and standard of living will led to creation of small classes of a very few people (the rich) to exploited the large class (poor).
10.By farming alliance of the poor nations in dealing with the developed nations. This will be the only solution to overcome the problem of dependence which face the LDC s e.g. the alliance of the poor nations will be in term of international trade, market, organizing labor etc.
11.By forming consolidating the regional and inter regional economic groups like COMESA, SADDEC, EAC, ECOWAS, the Arab league etc. in which these regional groupings should help to widen market, providing social and political development among the poor nations themselves without depending from the rich nations who use neo-colonialism to exploit the LDC s.
12.There should be development plans which will help the LDC s to develop without depending from the rich nations e.g. income policy, control major investment, import – export development project, privatization policy etc.
13.The LDC s should reject loans, grants and Aids from the developed countries which had been the source of underdevelopment in the LDC s.
STEP WHICH HAVE BEEN TAKEN TO OVERCOME NEO-COLONIALISM
1. Through UN the LDC s have verbally attacked and condemned Neo-colonialism e.g. through the new-international economic order (N.I.E.O) of 1970’s.
2.Formation of the formal O.A.U. in 1963 the current African Union, All these are the steps towards fighting neo-colonialism and under development because African nations have joined together by using the organization to condemn the operations of neo-colonialism in LDC s.
3. Formation of NAM 1961 in Yugoslavia which aimed to make a neutral cooperation between the capitalist camp and the socialist camp in solving the problem of neo-colonialism and under development but still the problem.
4.The LDC s have formed regional and inter regional groups like Arab league, COMESA ECOWAS, EAC etc. for the aim of strengthening and widening their market, organizing labor within their nations and cooperating in different economic activity.
5.Promotion of Cooperation ventures in cultural and sport fields such as African cap of Nation (LAF) all African games and the confederation of Africa football.
6.Creation of different financial institutions to assist the LDC s in financial problems like creation of the bank of Africa and other endogenous banks in order to reduce reliance on foreign financial institution.
7.They have established integrated self sustaining national economy like what Uganda and Libya have done.
8.They adopted African maximum, Leninism and socialism in steady of capitalism as what some African leaders argued that the aim of African Socialism was to create socialism of Africa which could reflect African way of life during communalism and use the resource available in Africa for the development of African countries.
9. Some countries in the LDC s have developed their own military technology in order to reduce dependence from the developed world military e.g. North Korea, Pakistan, India and Iran are suspected to have nuclear weapon plants.
INTERNAL AND EXTERNAL CAUSES OF UNDERDEVELOPMENT
1. Effects of colonial legacy;
Where by colonialist left to LDC s a lot of negative effects which led to underdevelopment of the third world like poor industrial technological base, poor infrastructure networks, low agricultural production, poor administration, poor social service etc.
Many LDCs are poor economically which led people in these nations to live under poor acute poverty therefore these LDCs cannot afford to develop themselves either in economics, technological and social science due to its poverty.
3. Political instability.
Many LDC s are victims of civil wars which destruct peace, harmony security and resulted to refugees in different LDCs hence people in these countries can not settle together and have enough time to involve in development.
4. Corruption and embezzlement of public fund.
Corruption is more common in most countries of the third world such as grant corruption and petty corruption which tend to cause underdevelopment of the poor nations because instead of using the resources and money for development project leaders tend to use the resources and money for their benefit. Likewise embezzlement of public funds is also common in the most country of the LCDs which cause misallocation and mismanagement of the resources available in the poor nations all leads to the underdevelopment of the LDCs.
5. Problem of hunger and famine;
Where by many LDC s faced with this problem due to drought which faces these countries hence many people of these counties are dying due to famine and hunger hence depopulation due to the death of the skilled person who could develop the nations.
6. High illiteracy rate.
This is a problem to many countries in LDC s which cause these countries to lack experts like scientist, engineers, bankers, annuitant and technicians etc. who could use their knowledge, skills and experience to develop these LDC s technologically, economically socially and politically.
7. Price fluctuation in the world market which faces the LDC s is another problem for underdevelopment therefore these countries lose a lot of money while selling their agricultural raw materials and cause them to fail to purchase other necessities like technology and other manufactured goods which could help these countries to development.
8. High mortality rate (Death).
Is a common problem to many LDC s due to availability of epidemic diseases such as cholera, typhoid, Ebola etc. These returned/stagnate the economic development of these countries due to the fact that young man who are energetic, skilled, knowledgeable and experienced are dying and leave to vacuum of having experts to develop these LDC s.
9. Oil crisis;
whereby majority of the LDC s especially in Africa spend a lot of money to purchase oil in order to facilitate public sectors like transport and communication therefore they cause destruction of budget because the money which could be used in other sectors of the economy are to be used for buying oil.
10. Low life expectancy, drought and floods.
1. Mercantilism and its effects on Africa.
2. Colonialism and its effects e.g. legitimate trade.
NATURE AND CHARACTERISTICS OF NEO COLONIALISM POWER (IMPERIALIST)
The nature and characteristics of the imperialist can be seen through implementation of neo – colonialism in the LDC s and this is viewed in economic, political, social and military as follow below;
ECONOMIC NATURE OR NEO-COLONIZING POWERS
1.This is due to the fact that the imperialist always exploit the resources of LDC s for their benefit like minerals, human labor etc.
2.Destruction of science and technology of LDC s through technological transfer. The process of transferring technology from rich nations to the LDC s results to destruction of science and technology of the LDC s because always the technology transferred is either outdated or expired and which cannot develop the LDCs in term of science and technology.
3.Loans, grants and aids provided to the LDCs aimed at providing high interest to the developed nations due to the fact that the LDCs because of their poverty tend to look for loans, grants and aid which enable the developed nations to harvest the super profit for a given period of time.
4.Control the world market for their interest. The rich nations always control the world market by fixing the prices of both agricultural raw materials from the LDC s and manufactured goods from the rich nation. This goes hand in hand with price fluctuation especial for agricultural produce from the LDC s hence the Neo – colonizing power tend to benefit while the Neo – colonies tend not to benefit.
5.Control the world economy by forcing the LDCs to privatize their economy for the foreign investors which aimed to exploit the resources of the LDC s and benefiting the imperialist nation.
6.They provide harsh conditionality in nature like, devaluation of currencies, cost sharing in social services, redundancy etc. in order the LDC s to be assisted in getting loans, grants and aid which also have to be paid for the imperialist for the high interest rate in a given period of time.
7.The influx of Europeans through different NGO’s and multinational cooperation’s like IMF, WB, world trading centre (coca cola) etc. These also aimed to benefit the imperialist after exploiting the resources of the LDC s and under developing the LDCs.
POLITICAL NATURE OF NEO-COLONIZING POWERS
1.Democratic in nature whereby the Neo-colonizing powers tend to force the LDC s to adopt liberal democracy like multiparty for their own interest.
2.Impose/planting the puppet leaders in LDCs to implement the interest of imperialist like exploiting the resource of the LDCs for the imperialist benefit allowing foreign investors to allow linearization in the LDCs etc. all these are implemented by puppet leaders who are planted by Neo-colonizing powers.
3.Controlling elections of the LDCs.
The Neo – colonialist powers tend to control election in LDCs simply because these neo-colonizing powers are after putting puppet leaders in power that can collaborate with them to achieve their objective in the LDCs.
4.Expansionism policy in nature.
These neo-colonizing powers tend to expand their rule in order to control the third world countries in all aspect of life for their benefit.
5.Interference of internal matters of the LDCs for their benefit. The imperialist always tend to interfere the internal matters of the LDCs like supervision of election, controlling the economy of the LDCs, culture implementation etc. for their gains.
SOCIAL AND CULTURAL NATURE OF NEO – COLONIZING POWERS
1. Humanities, oppressive, segregate in nature; this is because always the imperialist tend to achieve the ambition of superiority complex over the LDC s in order to make the LDC s to feel as inferior over the imperialist hence the neo – colonizing powers always use the superiority complex over the LDC s to humiliate, oppress and segregate LDCs in international affairs and within the internal matters e.g. in the UN meetings international trade etc.
2. Imposing western culture in the LDCs.
This is due to the fact that the imperialist always force people of the LDCs to abandon their culture and adopt the western culture in the ways of life such as eating, marriage and wearing/ dressing.
3. Introducing western cultural ways of life which also have lead people of the LDCs to abandon their cultural practices e.g. introduction of video, cinema, phonograph, songs etc. have caused people in the LDCs to abandon their traditional cultural practices like dram, carvings, traditional songs.
MILITARY NATURE OF NEO – COLONIZING POWER
1. Introduction of military technology, skills and knowledge in the LDCs. E.g. the imperialist have pretended to train army officers in the LDCs and some time have come to pretend tin keeping peace in the LDCs.
2. Building their military bases in the soils of the LDC s in order to protect their vested interest I the LDCs.
THE BRANDT REPORT (1980) LDCs POVERTY QUESTION AND ITS OUTCOME
THE BRANDT REPORT
Was a recommendation of the commission to address the LDCs this report was written by independent commission in 1980 chaired by Willy Brandt the former chancellor of Western Germany, the report was international report with aimed to analyze the solution for the problems facing LCDs 1980 – 1987. The report was up dated in 2001 by James Ovilligan who was a director of the Brandt commission report in 2001. It comprised 36 members from different countries as follows.
(i) Will Brandt (chairman from W. Germany)
(ii) AbdalaHatit A. Hammad (from Colombia)
(iii) RodmingoBotaraMontry (from Chile)
(iv) EdwardoFreiMauntalia (Chile)
(v) Catherine Gruhman (from USA)
(vi) Edward health (from UK)
(vii) Amir Jamal (from Tanzania)
(viii) Khadija Ahmed (from Malaysia)
THE RECOMMENDATIONS OF THE REPORT
1. i. The world economic trend need to be revived whereby the solutions and strategies need to be urgently (important) implemented in order to reduce the growing gap between North (rich) and south (poor).
2. ii. Cooperation’s between countries should be of mutual interest and there should be a tool to create a change and facilitate worldwide growth.
3. iii. Emphasis on mutual interest between developed and developing nation to deal with very important issues with threatening human kind must be carried out by the international community.
4. iv. Reject the view on the role of developed countries to supply to the LDCs for their benefit instead the rich countries must participate themselves to being economic growth of the LDCs.
5. v. Emphasis should be on fair ground between the poor and the rich. This should be accompanied by granting the South political and economic independence and discourage protectionism with the rich (Northern) use to restrict the South to access the world market this will enable the South (poor) to developed and have the final say in the world market.
6. vi. Establish society based on international justice which would promote world peace, security and disarmament especially in developing countries so as the world should be a place to live without fear of weapons.
7. vii. To ensure good environment for political and economic growth in both north and south.
8. viii. Undertaking actions programs which would include short and long term program for dealing with poverty in Africa, Asia and Latin America.
9. ix. To end mass hunger, famine and maturation by improving agricultural sector through undertaking agrarizin reforms in order to ensure food security and food should be increased.
10. x. To control population growth by controlling birthrate especially in LDCs but also refugee’s problem in the LDCs should be also controlled.
11. xi. Insist on industrialization in order to boost economic development and the development of science and technology especially I the LDCs.
Therefore following those recommendations the Brandt report was received and accepted as a solutions to deal with the LDCs problems, however the gap s till growing and strategies are less adopted due to different reasons in the LDC s like low political will, scarcity of experts, lack of accountability, good governance it’s also the brain drain where LDCs experts are running to look for good pastures in rich nations and fail to development their own nation and it was during the existence of cold war politics.
THE FUNDAMENTAL ISSUES DISCUSSED IN THE BRANDT REPORT COMMISSION – 1980
1. Poverty problem (Issue).
This being a crucial issue in the world was still discussed whereby the World Bank estimated that 800 millions of people in the LDCs live under acute poverty, and 40% of the South population are not able to secure basic needs while the economies of the poor nation religion agriculture which also face unfavorable environment and scarcity of market.
2. Health issues.
This also were discussed in Brandt health commission and it was observed that majority of people LDCs are faced with the problem of low life expectancy, poor medical facilities and majority of the people lack safe and clean water.
3. Housing/Settlement issues.
Was also discussed in the Brandt and observed that; there was a great movement of people from rural to urban areas, wide spread of unemployment and â…” of all families in the LDCs are not able to build new houses even cheapest and high birth rate is also common in the LDCs which accelerate to many families to have many people without good housing/settlement.
4. Education issues.
Majority of the people in the LDCs are illiterate which are approximated to be 50% of the population of the LDCs. Although some progresses have been taken by the government of the third world countries to build more schools but the number of attending to schools especial for girls is still low.
5. Women Issues.
Women in LDCs are marginalized in development due to existence of patria system in many countries of the LDCs. This has caused massive gender inequalities in developing countries like in politics, production and in economics e.g. women are not allowed to own property, land in some societies of the LDCs also the provision of health care familiar is biased and the encouragement of education in some societies is based on boys/male while female are discouraged to accesses education rather than women are encouraged in fulfilling domestic activities e.g. looking fetching H20, and collecting fire wood.
THE SOUTH – SOUTH DIALOGUE
This was a dialogue between the poor nation themselves to discuss the problems related to their poverty and how to work jointly by cooperating together in various fields e.g. in economic; trade, industrial fields, agricultural sector etc.
This South – South dialogue was formed in 1978 under the UN Development program (UNDP) the aim was to promote South – South trade, economic and collaboration with UN agencies like UNDP, W.T.O, WB, IMF etc. hence officially the South – South dialogue started influencing economic development in the South – South nations after the formation of South – South commission under the chairmanship of the Late J.K. Nyerere held in Zimbabwe in 1986, the South – South dialogue aimed at organizing by doming bilateral agreements, regional sub regional, and inter regional groups.
AREAS OF CO-OPERATIONS
1. Economic, trade, finance and investment.
2. Education, provision of scholarship and research findings.
3. Humanitarian assistance.
4. Science and technological cooperation.
5. Environmental issues.
6. Public sectors and health management.
OBJECTIVES OF THE SOUTH – SOUTH DIALOGUE
1. Aimed at forming cooperation between countries and regional grouping so as to find the solution of the global plans which could help the LDC s to development like to find the solution of the financial crisis, economic recession (depression), climatic change, energy security etc.
2. Aimed to bring a new world economic order in order to balance trade and exchange between member states and between North and South (poor) and (rich) has over the South.
3. Aimed to form strong partnership among the LDCs so as to against the imperialist domination in terms of trade partnership.
4. Mobilization of the 3rd world energy and other resources so as to solve the problem of underdevelopment and boost the economic growth of the South countries.
5. Aimed to remove the concept of co-operation as purely as assisting dependent countries which aimed at addressing this concept of cooperation between the North and South with equal benefit bases which the South countries want to benefit in their cooperation with the rich.
6. Aimed to ensure effective use of available technical experts in order to boost economic growth especially in industrial and agricultural sectors.
CHALLENGES OF THE SOUTH – SOUTH DIALOGUE
1. Lack of capital.
This forced the LDCs to look for loans, grants and aids from developed countries as the only alternative way to development thus why they always looking for grants, loans and aids from WB and IMF.
2. Undermine the poor member state by fellow rich states.
This is because rich members tend to undermine the poor member state found in LDCs this has been acting as the obstacle for the South – South dialogue to reach their objectives.
This was a policy carried out by the North countries (rich) to restrict the South to access the world market hence the South Counties always face the problem of price fluctuation in the world market.
4. Interference of economic and financial plans policies by unity national cooperation’s or transnational institutions.
These cooperation act as the obstacle for the South countries to achieve their intended objectives e.g. the IMF, WB, W.T.D, European union, Paris club etc. always tend to interfere the international matters of the South.
5. Lack of heavy industrial base.
These policy always makes the South countries to depend from the North as far as science and technologies is concerned hence South country have been made as dumping areas for the North to dump their outdated science and technology.
6. Political instability.
This is a common problem in many LDCs due to civil wars which tend to affect the LDC s peace, security, harmony and hinders economic, social and political development.
7. Existence of multiple – economic integrations which are not committed to fulfill their activities and their intended activities e.g. members of SADEC are also members of EAC or ECOWAS etc.
8. Existence of Neo – colonialism in LDCs; whereby the North tend to exploit the resource of the South by back doors hence the South fail to development.
9. Poverty problem.
11. Famine and hunger.
13. Competition of production of the same raw materials among the member states e.g. member state are producing the same Cocoa, tea, sisal, cotton etc.
15. Frequent economic crisis.
THE NORTH – SOUTH DIALOGUE
This was the dialogue between the rich (developed) and poor developing nations) with came out of the recognition of the fact that poverty being a global issue must be solved together between the rich and poor nations.
Therefore in the North south dialogue the poor countries demanded the following.
1. They demanded the existing international trade to change so that the poor countries who are the producers of raw materials only can also be able to develop their heavy products in order to get out their dependency.
2. They wanted the price of agricultural raw materials at the world market to be reasonable, good and permanent or fixed because the existing prices are low and are frequently changing which is of a great disadvantages for the development of the poor nations.
3.They demanded transfer of technology from Europe and America to Africa, Latin America and Asia free of charge; where they argue that technology is a right of every man kind therefore the developing nation has a right to get it without any conditions from the developed countries.
4. They demanded that the developing nations are poor but this poverty has been caused by the developed nations; therefore in the new international economic order the rich countries are obliged to help the LDCs by giving loans, aid and grants together with cancelling their external debts.
5. The developing nations appeal to have a voice in the international financial organizations (organs) like WB, IMF because the poor nations use the money from those financial institutions however they have no say especially when to get and when to pay back the loans.
6. The LDCs wants also to ratify the international trade maritime in which the overseas transport should not only be monopolized by the developed nation rather benefiting all nations in the world.
7. The LDCs want disarmament and investment in armament programmers so as to preserve tranquility and mention the world peace and security.
THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK TOWARDS THE SAP’S
The IMF and WB are two most important institution set up by the UN monetary and financial conference popularly known as the BRETON WOOD conference held in New York in July 1944 however these two institutions come into effect/existence in 1945.
INTERNATIONAL MONETARY FUND ITS OBJECTIVES
1. To promote international co-operation on international monetary affairs by being a machinery for consultation and collaboration about money.
2. To facilitate international trade by adjusting differences between the values of currencies of different countries of the world.
3. To facilitate exchange stability and ordering exchange arrangements including transfer of fund among nations.
4. To eliminate foreign exchange restrictions which prevent the growth of world trade.
5. To shorten duration and magnitude of payment of imbalances (debts) between nations.
FUNCTIONS OF IMF
1. To administer exchange rate policies and restrictions on payment for the current account transactions.
2. To provide members with funds in order to enable them collect or pay for their debts.
3. To provide forum or room for members to consult each other and work together on international monetary matter
PRINCIPLES OF IMF
1.The IMF provides loans to all needy members on condition that they must pay bank soon after solving their debts so that other needy members can be borrowed.
2. A recipient member should first show how she intends to solve debts and how she will pay bank the debt with interest which always takers 3 to 5 years.
WORLD BANK (WB)
This was established on July 18, 1944 and started her activities in 1945, hence WB was known as international bank for reconstruction and Dev elopement (IBRD) and its head quarter is in Washington DC U.S.A.
1. To work on reconstruction and development of its members in which most of the members were affected by the WW II.
2. To provide foreign private investment to its member state especially private capitals.
3. To promote long term balanced international trade by enabling members to balance their payments with money from the bank.
PRINCIPLES OF THE WORLD BANK
1. It provides money for productive purposes e.g. money in agricultural/sector, rural development, construction of infrastructures and energy.
2. Loans may be used to purchase goods from any country in the world without restrictions.
3. Loans can be given to either country or political sub-division or to private enterprise in a given territory.
4. Technical assistance and other services are provided to member state.
5. Bank decision to provide money must be based only on economic consideration.
6.The loans must be guaranteed by the government concern and for specific project.
CONDITIONALS OF IMF AND WB
The IMF and WB introduced the following conditionality’s aimed at changing the economies of LDCs to be a capitalist economy.
1.To allow trade liberalization and foreign exchange; whereby the government of the LDCs is forced not to control the prices and abolish the price commission so that the prices should adjust themselves in the world market basing on the law of supply and demand.
2.To devalue the currencies so as to attract more investors in countries and more buyers of goods from countries concern, but also devalue of currency aimed to make the currency of the LDC s at least to match with the capitalist economy.
3. To control government budget deficit by reducing government expenditures like provision of social services, buying of expensive cars of leaders etc.
4.The government of LDCs should increase taxes by charging public goods and services highly.
5.The government of the LDCs must reduce their expenditures on provision of social services like in education, water supply, and electricity by introducing cost sharing between the government and people with general public concern with social services.
6. To allow and introduce western democracy or liberal democracy led to existence of multiparty and its features.
7. To allow redundancy of works. This is done by the IMF and WB to force the government of LDCs to privatize government parastatals and reduce workers from civil servants in order to control the budget of the country, reducing budget deficient and controlling over expenditures.
8.To allow privatization policy; hence the government of LDCs are forced to privatize their economy in the countries for the foreign investors such as agriculture, mining sectors all these is done by welcoming foreign investors to invest tin different economies sectors.
This refers to the policies introduced by IMF and WB in order to control the state budget and official policies in the LDCs; therefore the IMF and WB aimed at creating changes of the government budget so as to bring development in the LDCs.
BACKGROUND OF SAP’S
Due to worsening economic conditions the LDCs especial in Africa in the mid of 1980’s; approached the IMF and WB for Loans hence the IMF and WB suggested for SAP’s to be in traduced in the LDCs as a solutions for their economic development.
REASON FOR ADOPTION OF SAP’S IN LDCs
1. To solve external debts crisis in the LDCs especially in African States.
2. To promote rural development projects in order to improve the living standard of the rural people.
3. To improve the rapid decline of per capital income in order to make sure that people in the LDCs should have high per capital income.
4. To improve the rapid decline of G.N.P (Gross National Profit) in order to make sure that nations found in the LDCs should improve their national domestic product and avoid dependency from the developed countries.
5.To improve the decline of health services in order to make sure that government of the LDCs particularly in Africa should improve better social services to their people like hospitals educational facilities, clean water supply etc. e.g. availability of drugs in hospitals, dispensary or health centers, availability of equipment in hospitals and educational facilities i.e. books laboratory equipment etc.
6.To improve transport and communication networks in the LDCs in order to make sure that transport and communication networks is well available in the LDCs for development e.g. road ports, airports, railways etc.
7. To improve science and technology in the LDCs so as to remove the problem of weak science and technological base found in LDCs particularly in Africa and which has been acting as an obstacle for the development of LDCs.
8. To help the LDCs to get out of the poverty this is common problem in LDCs.
OBJECTIVES OF SAP’S
1. Aimed to reform and elimination of restriction of trade between North – South.
2.Aimed to privatize all public sectors so as to improve the G.N.P. of the country concern, provide employment and improve the growth of per capital income of each individual found in LDCs.
3.Aimed to reform agricultural sector by mobilizing the resource of the LDCs for improvement of agricultural sector.
4.Aimed to remove and reduce poverty by improving the living standard of the people found in LDCs, improving G.N.P. of countries, improving science and technology of the third world and improvement of economic growth.
5.Aimed at improving public investments programmed by welcoming investors both from within LDCs and outside of the LDCs.
6.Aimed of improvement and clear linkage of different sectors of the economy found in the LDCs for domestic development and restoration of economic growth of the LDC.
PRINCIPLES/CONDITIONS/FEATURES OF SAP’S
1.To remove subside in agricultural sector whereby IMF and WB force the LDCs to remove subsides on agricultural sector.
2.To introduce cost sharing in social services; whereby governments of LDCs are forced to withdraw from providing free social services like free-education, health care, electricity, water supply etc.
3.Devaluation of currencies. The LDCs is forced to devalue their currencies in order to accept by the capitalist in their trade transactions in the world market.
4.Privatization of economic sectors; are reforms programs in the LDCs are forced to privatize their financial sector, industry, mining trade and reforming other sectors like public sector management, trade sector etc.
5.Unemployment/redundancy of workers; majority of the civil servant face with the problem of unemployment after public sector privatized to the foreign investors
6. Elimination of trade barriers, tariffs and custom duties. The LDCs are forced by IMF and WB to eliminate trade barriers in order to premiere private sectors and foreign investors who come to invest in LDCs.
7. Elimination of price commissions in order the prices in the market to be determined by the law of supply and demand.
8. Removing restrictions on collective reform and wage selling practices so as to attain better life in LDCs, this is achieved by introducing collective bargaining between employers and employees.
9. Introduction of western democracy based on liberal democracy which insists under multiparty and introduction of puppet leaders.
10. Introduction of trade liberalization. This is done by forcing the governments of the LDC s to remove the price commission of raw materials and manufactured goods in market to be determined by the law of supply and demand.
11. Destruction of culture in the LDCs by forcing LDCs to practice their foreign culture which always destroy the culture of the people found in the LDCs.
ACHIEVEMENT OF SAP’S
1. It had achieved in raising living standard of the people in LDCs through privatization of public sectors.
2.It has led the creation of employment among the people in LDC s after being employed in various sectors which were privatized by the governments of the LDC s.
3. It had increased agricultural investments, agricultural products and agricultural consumption.
4. It had increased export of raw materials from LDC s to developed countries starting from the mid of 1985 up to date.
5. It had increased investment performance in different sectors in LDC s like infrastructure network, investment in industry, agriculture, financial institutions etc. which create the employment opportunity in LDC s.
6. It had improved different sectors of the economy like industries, mining, and trade after these sectors privatized to the foreign investors.
IMPACTS OF SAP TO THE AFRICAN ECONOMY.
- It increased poverty, suffering and civil wars among the Africans since most of the policies increase dependency ration between the African nation with European donor countries eg: through multiparty system.
- It increased corruption especially in privatization where transparency and un-ucountability were non-existent for instance secret agreement from the public in selling public entities embezzlement of funds.
- Influx of multnation corporation. These were different companies from foreign imperialist countries investment in T.T.C.L, TANESCO.
- Cost sharing, with its implications of the allocation of fever resources at different levels, has implications for corruption and even more, the fact that you are depriving the majority of the people a their basic right eg: Education, electricity, water e.t.c
- IA led to mass unemployment because of the retrenchment policy of civil servants where by their life became nursery, no income, the termination benefits given to them were eager to continue life.
- Privatization has increased the price of fertilizers and other inputs, and reduced access to credit.
- Some policies of SAP were impracticable hence promoted doors violence and internal disputes in Africa eg: privatizing of all public enterprises.
- Impacts on environment. This is due to industrialization resulted to privatization and foreign investment.
- SAP’s are responsible for much of the economic stagnation that has occured in borrowing countries.
- Inequality, since the implementation of SAP’s the group between rich and poor has been steadily increasing.
WEAKNESS/FAILURE/DISADVANTAGE OF SAP’S
1. It had led to low prices of export of raw material from LDCs and increased the prices of imported goods from rich nations.
2. It led to poor science and technology in LDC s after the developed nations importing outdated and expired technology in the LDCs.
3. The removed of subsides in agricultural sector accelerated the low production in agricultural sector because majority of peasants found in LDC s cannot afford necessities of their cash crops like to buy insect sides, pest sides, tractors and ploughs.
4.It had/accelerated from rural to urban migration because many investors’ especially foreign investors tend to invest in urban areas in so doing; many people found in rural areas are running to look employment in urban areas were investors are invested in different sectors in rural areas.
5.It has increased poverty in LDC s especially in rural areas; but also even those who were employed to public sectors after they remain unemployed and fell to afford their life.
6.It has debts of the LDCs who tend to look for loans from IMF and WB which later have to pay the loans with high interest in a given period of time.
7.The cost sharing in social services like in education, health, water has resulted to many negative impacts to the people of the LDC s like death few to access education especially higher education and poor water supply.
THE RELATIONSHIP BETWEEN NEO-COLONIALISM AND UNDERDEVELOPMENT
1. Underdevelopment is a product of neo-colonialism and colonialism.
2. Both have adverse and effects on the LDC s link more debt in LDC s from rich nations, increase poverty in LDC s.
3. The imbalanced budget of LDC s due to exploitation for raw materials from LDC s, due to price fluctuation I the world market all are these are caused by neo-colonialism and underdevelopment of LDC s.
4. Low level of industrialization due to low technological and scientific base of LDC s due to restriction of the developed nation which imposed to the LDC s with fail to areas high science and technology all these is used by neo-colonialism and underdevelopment.
5. Both are product of imperialism and both share the same characteristics.
Show the role of WWII 1939 – 1945 to the rice and expansion of socialism in the world.
(i) Emergence of the world war
(ii) Capitalist ideology led by U.S.A. to prevent socialism to spread in the world.
(iii) Russian aimed to get many allied nation to fight against capitalism.
(iv) USSR supported liberation struggle in many nations in the LDC s.
(v) The formation of the two military alliances with defended each camp e.g. NATO vs. WAR, SAW etc.
(vi) The role of USSR leaders Stalin, Knisher, Lenin in spreading socialist ideology soon after WWII.
(vii)Spread of socialist manifestos like books, ideology, philosophy etc. which were seen as solutions to solve the problems of many people under capitalism and under colonialism.