NEO-COLONIALISM AND UNDERDEVELOPMENT IN THE THIRD WORLD COUNTRIES
Neo-colonialism:-Is situations in which a country is independent politically but still dominated by another country (usually strong and imperialist) economically, culturally, socially and even military with aimed at restoration (restoring) and preservation of the imperialist positions in the Least Developed Countries (LDCs). This started after colonies achieve their independence in 20thcentury up to 21stcentury.
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 inorder to continue exploiting their former colonies after they got their political independence.
Neo-colonialism is a continuation of colonialism in a country that is politically independent under new conditions like to agree conditions of Structural Adjustment Programe (SAP’s) such as devaluation of currencies, reduction ofworkers, cost sharing in social services also with all these conditions aims at controlling the former colonies indirectly.
Neo-colonialism 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 withNeocolonization is a country of flag independence.
UNDERDEVELOPMENT
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 withanother 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. Dependence Economy.
A country with neo-colonialism is characterized with economic dependence because; a country with neocolonialism cannot decide on its own as fallacies as economic is concern, rather they have to depend from capitalist nation for development inthose nations.
2. A Country is characterized by Under Development.
This was because it is exploited by the imperialists through indirectly by usingloans, 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 Least Developed Countries (LDCs) which are taken to develop their countries in Europe and Northern America.
3. A Country by Puppet Regime.
This is which works daily to supervise the operationsof Neo-colonialism in their nations for interest of the capitalist in Europe and United States of America (U.S.A).
4. A country has 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 whoimpose their culture in those nations.
5. Lack of Political Freedom and Will within a Country.
A country has no political will of its own this is because everything politically is directed from outside
CHARACTERISTICS OF UNDER DEVELOPMENT IN LEAST DEVELOPED COUNTRIES (LDCs)
1. Underdeveloped characterized by economic dependence.
This is because the Least Developed Countries (LDCs) are poor economically and always rely on the developed countries for economic assistance and Aids for example Assistance and AID from International Monentary Fund (IMF), World Bank (WB), European Union and Paris – Club. Hence the Least Developed Countries (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 Least Developed Countries (LDCs) import technology from developed countries in their attempt to the industries for example the Least Developed Countries (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 Least Developed Countries (LDCs) have remained as a producer of agricultural raw materials and the buyers of manufacturing goodsfrom abroad. For example, the Least Developed Countries (LDCs)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 Least Developed Countries (LDCs) where they are sold highly.
4. There is Political Instability.
This includes civil wars and interstate wars which may be caused byinterference of internal matters by the super powers.
This leads to the influx of refugees to neighboring countries for example, Refugees of Rwanda, Burundi and Democratic Republic of Congo (DRC) in Tanzania, Refugees of Ethiopia and Somalia in Kenya, Tunisia, Egypt, Libya and Mali.
5. Underdevelopment is characterized by price fluctuation of raw materials in the world market.
This is due to in-ability of the Least Developed Countries Least Developed Countries (LDCs) 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. For example, 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 pricekeeps on changing each year with affect the Least Developed Countries (LDCs) who cannot fix the prices intheworld market.
6. The Least Developed Countries (LDCs) 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 Least Developed Countries (LDCs).
7. Least Developed Countries (LDCs) have Low Growth National Product (G.N.P.).
This is because countries found in the LDC s always are exploited by thedeveloped 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. Least Developed Countries (LDCs) have Mono-Cultural Economies.
In whichtheir economies are based on one cash crop or mineral production dueto 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
For example the sh. of Kenya, Uganda and Tanzania has low value comparewith dollars of US, Dutch mark of Germany, pounds of Britain.
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 United States of America (U.S.A), in sufficient calorific intake, high rate of diseases like epidemic diseases that is Human Immune Virus (HIV), Ebola and TB.
11. Oil crisis is also problem in the Least Developed Countries (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 Least Developed Countries (LDCs), imposing their culture in the 3rd world countries, planting their puppet leaders to control the government in the Least Developed Countries (LDCs), puppet leaders to control the government in the Least Developed Countries (LDCs), training military officers as what the major mechanism as elaborated below.
A. Economically
The former colonial masters impose/provide harsh conditionality for their aid they provide to the Least Developed Countries (LDCs) for develop, these conditions are like:-
1. Privatization of Economy.
Whereby the poor nation are formed to privatize their economy which used tobe 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.
Welcoming foreign investors to invest in neo-colonies on condition that theyrepatriatewith their profit in foreign exchange.
3. Giving Loans and Grants on Condition.
That the recipient world abandon mono partism and follow/peruse multiparty, devaluate their currencies, adopt cost sharing but also the Welcoming foreigninvestors to invest in neo-colonies haveto pay loans with high interest.
4. Forcing the Least Developed Countries (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 materialsfrom Least Developed Countries(LDCs).
Hence, the government of Least Developed Countries (LDCs) should allow tradeliberalization to operate in their countries.
5. Supporting Joint Ventures Organization.
Supporting joint ventures organization like NGO’s working jointly with local people indifferent areas.
B. Military.
The former colonial masters impose/provide military supports and base theyprovide to the Least Developed Countries (LDCs) for develop, these conditions arelike:-
1. The rich countries send military aid like military hardware such as weapons
This was so as to keep peace and security and bringing unit in the Supporting joint ventures organization but also the rich countries tend to train soldiers ofthe Supporting joint ventures organization in order to have military skills, knowledge and experience in protecting and defending their countries against their enemies.
2. Sometimes the rich countries tend to come with the troops.
This was in order to pretending that they are after peace keeping and defending countries against rebels e.g. in the Franco phone countries where the French always used this trick to take the resources of the former colonies for example Sierra – Leone, Liberia, Madagascar, Chad, Mali.
Likewise currently the richcountries tend to establish military bases on the soil of the developing countries to defend their harvested interest there for examplein Mombasa – Kenya, Somalia, Pakistani, Saud Arabia etc.
C. Politically
The former colonial masters impose/provide politacal conditionality for their aid they provide to the Least Developed Countries (LDCs) for develop, these conditions are like:-
1. Creation of Puppet Leaders.
The governments in neo-colonies are controlled by the rich supporting and financing puppet leaders to take power and government in the Least Developed Countries (LDCs).
nations by control the
The 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 for eaxample the late Mobutu Sese Seko in Zaire (D.R.C.) and late Laurent Kabila in (D.R.C.) Charles Taylor in Liberia, The Late Foday Sankoh in Sierra – Leone.
2. Emergence of Multiparty System.
The developed nations especially the Western countries like United State of America (USA), France and Britain insist much on democracy or many political parties in fewer developing countries.
The aim of this multiparty system is to create their puppet regimes in poor countries like of Africa.
3. Neo-colonialism Operates through Organizations.
This was led by their former colonial masters for example for the commonwealth(for ex-British colonies) and Franco Phone (for ex-FrenchColonies).
The colonial master’s act as good advisors of economic, social and political issues, but in reality, they prepare good environment of exploitation over their former colonies.
D. Socially
The former colonial masters impose/provide social conditionality for their aid they provide to the Least Developed Countries (LDCs) for develop, these conditions are like:-
1. Providing scholarship of Education to study abroad.
This was due to the educational programes that offered by the Metropolean developed countries in different levels of education specifically higher level of education like barchelor degree, masters and Doctors of philosophy (PHD).
2. Providing Educational Teaching and Learning Resources.
Giving academic aids like teaching staff, learning materials (books and computers), and curriculum and syllabus.
3. The use of Western Languages.
Use of western languages like English, French and Portuguese in education systems.
4. Introduction of Western Culture.
Introducing western culture in which people of the Least Developed Countries (LDCs) are forced to follow western culture like dressing style, films, films and cinema, eating style etc. Also, the Least Developed Countries (LDCs) have to follow education system of the western by abandoning important things in education system which could praisetheir culture like African culture.
IMPACT/EFFECTS OF NEO-COLONIALISM
1. Political Instability.
It led to political instability in many countries of Least Developed Countries(LDCs) due to civil wars and interstate wars, for example Angola, Burundi, Democratic Republic of Congo (DRC) and Somalia.
2. Perpetuation of Economic Exploitation of the Least Developed Countries (LDCs).
It led to Perpetuation of Economic Exploitation of the Least Developed Countries (LDCs) by big powers that usually tend to exploit resources for their benefit by using the back door, hence Least Developed Countries (LDCs) tend to stagnateeconomically.
3. It led to Economic Dependence and Problem.
This was due to export and import economy, harsh economic conditions, part by developed countries to the Least Developed Countries (LDCs) and control of the world market in which the prices of agricultural raw materials from Least Developed Countries (LDCs) keeps on changing dueto price fluctuation.
4. Underdevelopment of the Least Developed Countries (LDCs).
Led to total underdeveloped due to economic, political and cultural evils imposed in the Least Developed Countries (LDCs) by the rich nations like; devaluation of currencies, cost sharing in social services, paying high interest rate from the loans offered in the Least Developed Countries (LDCs) and exploitation of the resources of the Least Developed Countries (LDCs) done byNeo – colonialism dairy in the Least Developed Countries (LDCs).
5. It Led to Low Level of Science and Technology.
This was due to importation of ready manufacture goods in the Least Developed Countries (LDCs) hence people of the Least Developed Countries (LDCs) tend to consume goods which have already made; this stagnate the knowledge, skills and experience of the people in the Least Developed Countries (LDCs) todevelop their science and technology.
6. It Perpetuates Cultural Imperialism/Imposes Western Culture in Least Developed Countries (LDCs).
This was where by people of the Least Developed Countries (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 Least Developed Countries (LDCs).
This was due to control of the world market, and fixing the prices of agricultural raw materials from the Least Developed Countries (LDCs). Much exploitation of resources of the Least Developed Countries (LDCs), heavy conditions imposed by colonialist in the Least Developed Countries (LDCs) for
example accepting loans with high interest. All these lead to acute poverty among the people in the Least Developed Countries(LDCs).
8. It leads to continuation of the domination of the world market by imperialist powers.
The imperialist powers tend to dominate and control the world market for their own interest for example Rich nations tend to fix prices of the agricultural raw materials from Least Developed Countries (LDCs) for their advantage, while the products/manufactured goods from the rich nations are fixed in prices in such a way that the Least Developed Countries (LDCs) must be in disadvantage for them to benefit.
9. It Leads to Heavy Indebtedness that is (leads to too much debt) in the Least Developed Countries (LDCs).
This was due to continuous borrowing from imperialist nations usually from rich and developed counties hence the Least Developed Countries (LDCs) face the debt crisis daily and which have caused these developing countries to run bankrupt and fail to run their daily activitiesmore smoothly.
10.It leads to Unbalanced and Unimplemented Budget in the Least Developed Countries (LDCs).
This is due to over reliance that is 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 Least Developed Countries(LDCs).
11.It leads to Death due to Cooperation’s of Neo-colonialism in the Least Developed Countries (LDCs).
This was like importing expired drugs, civil wars, where the developed countries sell weapons to the fighting nation of same nation.
12.It has caused Least Developed Countries (LDCs) not to have said on their own Internal Matters.
This was because of the continuous controlling of the internal affairs by theforeignpowers through neo-colonialism and its organizations.
For example, Nigeria was suspended from its common wealth membership after it killed the Ogoni environmental activities and the written Keny Saro Wiwa in 1996, Zimbabwe after Mugabe annexed the Land from European settlers and announcement of the national election.
SOLUTIONS OF PREVENTING/ COMBATING OF NEO–COLONIALISM AND UNDER DEVELOPMENT
The following are the suggested methods and solution to prevent the problemsof neo-colonialism and under development in Least Developed Countries(LDCs).
1. Practicing the Policy of Self-Reliance.
This was 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 Least Developed Countries (LDCs).
This was with the aim of having opportunities for industrialization, creating thewider market and having the big sell in the big trade and monetary system.
3. Condemned colonialism as an evils and old Fashion to the Human Being.
Through the United Nations (UN) meetings and regular summits the Least Developed Countries (LDCs) must seriously attack and condemn Neo – colonialism with its operation in Least Developed Countries(LDCs).
4. Establishing integrated self-sustaining National Economies.
This was for the aim of this Least Developed Countries (LDCs) must be self sustained economically and reduce to much depending on the developed countries for example the bilateral agreement asUganda and Libya stated.
5. Establishing Local Industries and Developing.
Those which have been established under local technology in order to avoid total reliance of developed industrial goods and technology.
6. To establish our own Multinational Cooperation’s
This was so that these multinational cooperation’s would be the solutions for the problems facing the Least Developed Countries (LDCs) 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 Least Developed Countries (LDCs).
This was in order for what may be produced in one sector must bemanufactured in another sector for the drop of Least Developed Countries (LDCs) for example 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.
This is by adopting appropriate technology in order to build up self-internal economy in steady of depending from outside.
9. All Least Developed Countries (LDCs) should reject a western standard of consumption, and living for both individual and all society.
This was because of the western standard of living and consumption are basingon exploitation of Least Developed Countries (LDCs) and their own poor people therefore any attempt of the Least Developed Countries (LDCs) to introducewestern consumption and standard of living will led to creation of small classesof a very few people (the rich) to exploited the large class (poor).
10.By forming alliance of the poor nations in dealing with the Developed Nations.
This will be the only solution to overcome the problem of dependence which faces the Least Developed Countries (LDCs) for example the alliance of the poor nationswill be in term of international trade, market, organizing labor.
11. By forming consolidating the regional and inter regional economic groups like COMESA, SADDEC, EAC, ECOWAS and the Arab league.
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 Least Developed Countries (LDCs).
12. There should be Development Strategic Plans.
This is which help the Least Developed Countries (LDCs) to develop without depending from the rich nations for example income policy, control major investment, import – export development project, privatization policy.
13.Rejection of Loans, Grants and Aids from the Developed Countries. The Least Developed Countries (LDCs) should reject loans, grants and Aids from the developed countries, which had been the source of underdevelopment in the Least Developed Countries (LDCs).
STEPS WHICH HAVE BEEN TAKEN TO OVERCOME NEO-COLONIALISM
1. The Use (Application) of Verbally Attacked and Condemned Neo-colonialism.
Through United Nations (UN) the Least Developed Countries (LDCs) have verbally attacked and condemned Neo-colonialism for example through the new-international economic order (N.I.E.O) of 1970’s.
2. Formation of the formal Organisation of African Union (O.A.U) in 1963 the current African Union.
All these are the steps towards fighting neocolonialism and under development because African nations have joined by using the organization to condemn the operations of neo-colonialism in Least Developed Countries (LDCs).
3. Formation of Non Alignment Movement (NAM) 1961 in Yugoslavia. This 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 Least Developed Countries (LDCs) have Formed Regional and Inter Regional Groups, like Arab league, COMESA ECOWAS, EAC.
This was for the aim of strengthening and widening their market, organizinglabor within their nations and cooperating in different economic activity.
5. Promotion of Cooperation Ventures in Cultural and Sport Fields. 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.
This was to assist the Least Developed Countries (LDCs) in financial problems like creation of the bank of Africa and other endogenous banks in order to reduce reliance onforeign financial institution.
7. Establishment of Integrated Self-Sustaining National Economy.
They have established integrated self-sustaining national economy like what Uganda and Libya have done.
8. Adoption of Leninism and socialism.
They adopted Africanmaximum, 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 Least Developed Countries (LDCs) have developed their own Military Technology.
This was in order to reduce dependence from the developed world military for example North Korea, Pakistan, India and Iran are suspected to have nuclear weapon plants.
INTERNAL AND EXTERNAL CAUSES OF UNDERDEVELOPMENT
A. Internal Causes
1. Effects of Colonial Legacy.
This was where by colonialist left to Least Developed Countries (LDCs) with 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.
2. Poverty
Many Least Developed Countries (LDCs) are poor economically, which led people in these nations to live under poor acute poverty. Therefore, these Least Developed Countries (LDCs) cannot afford to develop themselves in either economics, technological or social sciencedue to its poverty.
3. Political Instability.
Many Least Developed Countries (LDCs) are victims of civil wars, which destruct peace, harmony security and resulted to refugees in different Least Developed Countries (LDCs) hence people in these countries cannot settle together and have enoughtime 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 thepoor nations because instead of using the resources and money fordevelopment 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 Least Developed Countries (LDCs) that cause mislocation and mismanagement of the resources available in the poor nations all leads to the underdevelopment of the Least Developed Countries (LDCs).
5. Problem of Hunger and Famine
Where by many Least Developed Countries (LDCs) 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 personwho could develop thenations.
6. High Illiteracy Rate.
This is a problem to many countries in Least Developed Countries (LDCs), which cause these countries to lack experts like scientist, engineers, bankers, annuitant and technicians who could use their knowledge, skills and experience to develop these Least Developed Countries (LDCs) technologically, economically socially and politically.
7. Price fluctuation in the world market which faces the Least Developed Countries (LDCs).
This is another problem for underdevelopment therefore these countries lose a lot of money while selling their agricultural raw materials and cause them tofail to purchase other necessitieslike technology and other manufactured goods which could help these countries to development.
8. High Mortality Rate (Death).
This is a common problem to many LDC s due to availability of epidemic diseasessuch as cholera, typhoid, Ebola.
These returned/stagnate the economic development of these countries because young men who are energetic, skilled, knowledgeable and experienced are dying and leave to vacuum of having experts to develop these Least Developed Countries (LDCs).
9. Oil Crisis.
This was whereby majority of the Least Developed Countries (LDCs) especiallyin 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 sectorsof the economy areto be used for buyingoil.
10. Low Life Expectancy, Drought and Floods
This was just because of the hardship that resulted from natural disersters such like drought flood and femine put on strong cncentaration on dealing with them instead of engarging in social, political and economic activities for furtherdevelopment of the country.
B. External Factors
1. Mercantilism and its effects on Africa.
2. Colonialism and its effects for example legitimate trade. 3. Economic crisis like the oil shocksof 1973 and 1979
4. Debt crisis, as many developing nations are having debts due toborrowing from donor countries and from financial institutions like International Monetary Fund (IMF) and World Bank. Debts have become a crisis because of highinterest rates.
5. Fluctuations of prices of agricultural goods in the World also cause underdevelopment to developing nations like Tanzania.
6. Neo-colonialism, where the Less Developing Countries are exploited economically, sociallyand politically by Western nations.
NATURE AND CHARACTERISTICS OF NEO-COLONIAL POWERS (IMPERIALIST)
The nature and characteristics of the imperialist can be seen through implementation of neo – colonialism in the Least Developed Countries (LDCs) and thisis viewed ineconomic, political, social and military as follow below;
A. Economic Nature or Neo-Colonizing Powers
These are the nature and characteristics of the imperialist can be seen through implementation of neo – colonialism in the Least Developed Countries (LDCs) and thisis viewed ineconomic sphere asfollows:-
1. It is Expolitative in Nature for Least Developed Countries (LDCs) The imperialists always exploit the resources of Least Developed Countries (LDCs) for their benefit like minerals, human labor.
2. Destruction of science and technology of Least Developed Countries (LDCs) through technological transfer.
The process of transferring technology from rich nations to the Least Developed Countries (LDCs) results to destruction of science and technology of the Least Developed Countries (LDCs) because always the technology transferred is either outdated or expired and which cannot develop the Least Developed Countries(LDCs) in term of science and technology.
3. Loans, grants and aids provided to the Least Developed Countries (LDCs) aimed at providing high interest to the developed nations.
This was because poverty among the Least Developed Countries (LDCs), they tend to look for loans, grants and aid which enable the developed nations to harvest the super profit for a given period.
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 Least Developed Countries (LDCs) and manufactured goods from the rich nation. This goes hand in hand with pricefluctuation 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.
This is by forcing the Least Developed Countries (LDCs) to privatize their economy for the foreign investors who aim to exploit the resources of the Least Developed Countries (LDCs) and benefiting the imperialist nation.
6. They provide harsh conditionality in nature like, devaluation of currencies, cost sharing in social services, redundancy.
This is in order the Least Developed Countries (LDCs) to be assisted in gettingloans, grants and aid which also have to be paid for the imperialist for the highinterest rate in a given period of time.
7. The Influx of Europeans through different Non-Government Organisations (NGO’s) and Multinational Cooperation.
This is like International Monentary Fund (IMF), World Bank (WB) and World Trading Center (coca cola). These also aimed to benefit the imperialist after exploiting the resources of the Least Developed Countries (LDCs) and under developing the Least Developed Countries (LDCs).
B. Political Nature of Neo-Colonizing Powers.
These are the nature and characteristics of the imperialist can be seen through implementation of neo – colonialism in the Least Developed Countries (LDCs) and thisis viewed in Political sphere as follows:-
1. Democratic in Nature
This is whereby the Neo-colonizing powers tend to force the Least Developed Countries (LDCs) to adopt liberal democracy like multiparty for their own interest.
2. Impose/Planting the Puppet Leaders in Least Developed Countries (LDCs).
This was intended to implement the interest of imperialist like exploiting theresource of the Least Developed Countries (LDCs) for the imperialist benefit allowing foreign investors to allow linearization in the Least Developed Countries (LDCs).
3. Controlling Elections of the Least Developed Countries (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 Least Developed Countries (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 lifefor their benefit.
5. Interference of internal matters of the Least Developed Countries (LDCs) for their benefit.
The imperialist always tend to interfere the internal matters of the Least Developed Countries (LDCs) like supervision of election, controlling the economy of the Least Developed Countries (LDCs), culture implementation for their gains.
C. Social and Cultural Nature of Neo – Colonizing Powers.
These are the nature and characteristics of the imperialist can be seen throughimplementation of neo – colonialism in the Least Developed Countries (LDCs) and this is viewed in social sphere as follows:-
1. Oppressive and Segregate In Nature.
This is because the imperialist always tend to achieve the ambition of superiority complex over the Least Developed Countries (LDCs) in order tomake the Least Developed Countries (LDCs) to feel as inferior over the imperialist.
Hence, the Neo – Colonizing powers always use the superiority complex over the Least Developed Countries (LDCs) to humiliate, oppress and segregate Least Developed Countries (LDCs) in international affairs and within the internal matters for example in the United Nations (UN) meetings international trade.
2. Imposing Western Culture in the Least Developed Countries (LDCs). This is because the imperialist always force people of the Least Developed Countries (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.
This also have led people of the Least Developed Countries (LDCs) to abandontheir cultural practices for example introduction of video, cinema, phonograph, songs etc. have caused people in the Least Developed Countries (LDCs) to abandon their traditional cultural practices like dram, carvings, traditional songs.
D. Military Nature of Neo – Colonizing Power
These are the nature and characteristics of the imperialist can be seen throughimplementation of neo – colonialism in the Least Developed Countries (LDCs) and this is viewed in Military sphere asfollows:-
1. Introduction of Military Technology, Skills and Knowledge in the Least Developed Countries (LDCs).
For example the imperialist have pretended to train army officers in the Least Developed Countries (LDCs) and sometime have come to pretend tin keeping peacein the Least Developed Countries (LDCs).
2. Establishment and Building of Military Base in Developed Countries (LDCs).
Building their military bases in the soils of the Least Developed Countries(LDCs) in order to protect their invested interest in the Least Developed Countries (LDCs).
THE BRANDT REPORT (1980) FOR THE LEAST DEVELOPED COUNTRIES (LDCS) POVERTY QUESTION AND ITS OUTCOME
The Brandt Report
It was a recommendation of the commission to address the Least Developed Countries (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 Least Developed Countries (LDCs) 1980 – 1987.
The Brandt Report comprised 36members from different countries as follows:-
a) Will Brandt (chairman from W. Germany). b) Abdala Hatit A. Hammad (from Colombia). c) Rodmingo Botara Montry (from Chile).
d) Edwardo Frei Mauntalia (Chile). e) Catherine Gruhman (from USA). f) Edward health (from UK).
g) Amir Jamal (from Tanzania)
h) Khadija Ahmed (from Malaysia)
THE RECOMMENDATIONS OF THE REPORT
1. The World Economic Trend needs to be revived.
This is whereby the solutions and strategies need to be urgently (important) implemented in order to reducethe growing gap between North (rich) and south (poor).
2. There should be Cooperation between the Countries in Mutual Interest.
Cooperation’s between countries should be of mutual interest and there should be atool to create a change and facilitateworldwide growth.
3. There should be Mutual Interest between Developing and Developed Nations to deal with Important Issues.
Emphasis on mutual interest between the developed and developing nations todeal with very important issues must be carried out by the international community.
4. Rejection the View on the Role of Developed Countries to Supply to the Least Developed Countries (LDCs) for their benefit.
Reject the view on the role of developed countries to supply to the Least Developed Countries (LDCs) for their benefit instead the rich countries mustparticipate themselves to being economic growth of the Least Developed Countries (LDCs).
5. Emphasis should be on Fair Ground between the Poor and the Rich. This should be accompanied by granting the South political and economicindependence 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. Establishment of Society based on International Justice.
Establish society based on international justice which would promote world peace, security and disarmament especially in developing countries so as theworld should be a place to live without fear of weapons.
7. To Ensure Sustainable Political and Economic Growth.
This must be done through ensure good environment for political and economicgrowth in both northand south.
8. Establishment of Action Programs and Forum to deal with Poverty. These are undertaking actions programs which would include short and long term program for dealing with poverty in Africa, Asia and Latin America.
9. To end Mass Hunger, Famine and Maturation.
This must be done by improving agricultural sector through undertaking agrarianreforms in order to ensure food security and food should be increased.
10. To Control Population Growth by Controlling Birthrate
This is especially in Least Developed Countries (LDCs) but also refugee’s problem in the Least Developed Countries(LDCs) should be also controlled.
11. Insist on Industrialization.
This is in order to boost economic development and the development of science and technology especially in the Least Developed Countries (LDCs).
Therefore, following those recommendations the Brandt report to be received, and accepted as a solution to deal with the Least Developed Countries (LDCs) problems.
However, the gap is still growing, and strategies are less adopted due to different reasons in the Least Developed Countries (LDCs), likelow political will, scarcity of experts, lack of accountability, good governance. There is also thebrain drain where LDCs experts are running to look for good pastures in rich nations and fail to develop their own nations. 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 Least Developed Countries (LDCs) live under acute poverty, and 40% of the South population are not ableto secure basic needs, while the economies of the poor nation religion agriculture, which also faces 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 Least Developed Countries (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.
It was also discussed in the Brandt and observed that, there was a great movement of people from rural to urban areas, and wide spread of unemployment. And of all families in the Least Developed Countries (LDCs) are not able to build new houses even cheapest and high birth rate is also common in the Least Developed Countries (LDCs) which accelerate to many families to have many people without good housing/settlement.
4. Education Issues.
Majority of the people in the Least Developed Countries (LDCs) are illiterate which are approximated to be 50% of the population of the Least Developed Countries (LDCs). Although some progresses have been taken by the government of the third world countries to build more schools but the number of attendingto schools especial for girls is still low.
5. Women Issues.
Women in Least Developed Countries (LDCs) are marginalized in development due to existence of patria system in many countries of the Least Developed Countries (LDCs). This has caused massive gender inequalities in developing countries like in politics, production and in economics, for example women are not allowed to own property, land in some societies of the Least Developed Countries (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 for example looking fetching water, and collectingfire wood.
Twenty years later, in 2001, the Brandt Report was updated by James Quilligan, who was Information Director for the Brandt Commission between 1980 and 1987. His updated report was called "The Brandt Equation".
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, economicand collaboration with UN agencies like UNDP, W.T.O, WB, IMF.
Hence, officially the South – South dialogue started influencing economicdevelopment in the South – South nations after the formation of South – South commission under the chairmanship of the Late Julius.K. Nyerere held it inZimbabwe 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. To Form cooperation between Countries and Regional Grouping. Aimed at forming cooperation between countries and regional grouping so as tofind the solution of the global plans which help the Least Developed Countries(LDCs) to development could like to find the solution of the financial crisis, economicrecession (depression), climatic change, energy security.
2. To bring a New World Economic Order.
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. To Form Strong Partnership among the Least Developed Countries (LDCs).
Aimed to form strong partnership among the Least Developed Countries (LDCs) so asto be against theimperialist domination in termsof trade partnership.
4. Mobilization of the 3rd World Energy and Other Resources.
This was so as to solve the problem of underdevelopment and boost the economic growthof the South countries.
5. Aimed to remove the concept of co-operation as purely as assisting dependent countries.
This 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. To Ensure Effective use of Available Technical Experts.
Aimed to ensure effective use of available technical experts in order to boost economic growth especiallyin industrial and agricultural sectors.
CHALLENGES OF THE SOUTH – SOUTH DIALOGUE
1. Lack of Capital.
This forced the Least Developed Countries (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 World Bank (WB) and International Monentary Fund (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 toreach their objectives.
3. Protectionism.
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 acts as the obstacle for the South countries to achieve their intended objectives e.g. the International Monentary Fund (IMF), World Bank (WB), World Trading Development (W.T.D), European Union, Paris Club always tend to interfere the internationalmatters 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 Northto dump their outdated science and technology.
6. Political Instability.
This is a common problem in many Least Developed Countries (LDCs) due to civil wars, which tend to affect the Least Developed Countries (LDCs) peace, security, harmony and hinders economic, social and political development.
7. Existence of Multiple – Economic Integrations.
These are not committed to fulfill their activities and their intended activities for example members of SADEC are also members of EAC or ECOWAS.
8. Existence of Neo – colonialism in Least Developed Countries (LDCs). This is whereby the North tends to exploit the resource of the South by back doors hence the South fail to development.
9. Poverty Problem.
10.Drought.
11.Famine and Hunger.
12.Illiteracy.
13.Competition of production of the same raw materials among the member states for example member state are producing the same Cocoa, tea, sisal and cotton.
14.Diseases.
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. It was held in Houston, Texas, October 19 - 21, 1975.
DEMANDS OF NORTH SOUTH DIALOGUE
Therefore, in the North south dialogue the poor countries demanded thefollowing:-
1. They Demanded the Existing International Trade to Change.
This was so that the poor countries who are theproducers 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.
This was because the existing prices are low and are frequently changing whichis of 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.
This was where they argue that technology is a right of every mankind therefore the developing nation has a right to get it without any conditions from thedeveloped countries.
4. They demanded to discourage Poverty to Developing Country.
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 areobliged to help the Least Developed Countries (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).
International Financial Organs were like World Bank (WB), International Monentary Fund (IMF) because the poor nations use the money from thosefinancial institutions however they have no say especially when to get and whento pay back the loans.
6. The Least Developed Countries (LDCs) wants also to ratify the International Trade Maritime.
In which the overseas transport, should not only be monopolized by thedeveloped nation rather benefiting all nations in theworld.
7. Developing Countries want disarmament and Investment in Armament Programmer.
The Least Developed Countries (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 International Monentary Fund (IMF) and World Bank (WB) are two most important institution set up by the United Nations (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 beinga 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 arrangementsincluding transfer of fund among nations.
4. To eliminate foreign exchange restrictions which prevent the growth ofworld trade.
5. To shorten duration and magnitude of payment of imbalances (debts) between nations.
FUNCTIONS OF INTERNATIONAL MONENTARY FUND (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 MONENTARY FUND (IMF)
1. The International Monentary Fund (IMF) provides loans to all needy members on condition that they must pay bank soon after solving their debts so that other needymembers 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 Development elopement (IBRD) and its head quarter is in Washington DC, United States of America (U.S.A).
OBJECTIVES WORLD BANK (WB)
1. To work on reconstruction and development of its members in whichmost of the members were affected by the WW II.
2. To provide foreign private investment to its member state especiallyprivate capitals.
3. To promote long term balanced international trade by enabling membersto balance their payments with money from the bank.
PRINCIPLES OF THE WORLD BANK (WB)
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 ina 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 INTERNATIONAL MONENTARY FUND (IMF) AND WORLD BANK (WB)
The International Monetary Fund (IMF) and World Bank (WB) introduced the following conditionality’s aimed at changing the economies of Least Developed Countries (LDCs) to be a capitalist economy:-
1. To allow Trade Liberalization and Foreign Exchange.
This waswherebythe government of the LDCs is forced not to control the prices and abolish the price commission so that the prices should adjust themselves inthe world market basing onthe law of supply and demand.
2. To Devalue the Currencies.
This was 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 Least Developed Countries (LDCs) at least to match with the capitalist economy.
3. To Control Government Budget Deficit.
This was by reducing government expenditures like provision of social services, buying of expensive cars of leaders.
4. Developing Countries (African) should increase taxes by charging public goods and services highly.
The government of Least Developed Countries (LDCs) should increase taxes by charging public goods and services highly.
5. The government of the Least Developed Countries (LDCs) must reduce their expenditures on provision of social services.
This was like in education, watersupply, 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. Allowing and introduce western democracy or liberal democracy led to existence of multiparty and its features.
7. To Allow Redundancy of Works.
The International Monentary Fund (IMF) and World Bank (WB) to force thegovernment of Least Developed Countries (LDCs) to privatize government parastatals, and reduce workers from civil servants in order to control the budget of the country. And, reducing budget deficient and controlling over expenditures.
8. To Allow Privatization Policy.
Hence the government of Least Developed Countries (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.
STRUCTURAL ADJUSTMENT POLICIES (SAP’S)
This refers to the policies introduced by IMF and WB in order to control the state budget and official policies in the Least Developed Countries (LDCs; therefore the International Monetary Fund (IMF) and World Bank (WB) aimed at creating changes of the government budget so as to bring development in the Least Developed Countries (LDCs).
BACKGROUND OF STRUCTURAL ADJUSTMENT POLICIES (SAP’S)
Due to worsening economic conditions the Least Developed Countries (LDCs) especial in Africa in the mid of 1980’s; approached the International Monetary Fund (IMF) and World Bank (WB) for Loans hence the International Monetary Fund (IMF) and World Bank (WB) suggested for Structural Adjustment Programmes (SAP’s) to be in traduced in the Least Developed Countries (LDCs) as a solutions for their economic development.
REASON FOR ADOPTION OF STRUCTURAL ADJUSTMENT POLICIES (SAP’S) IN LEAST DEVELOPED COUNTRIES (LDCS)
1. To solve external debts crisis, in the Least Developed Countries (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 Least Developed Countries (LDCs) should have highper capital income.
4. To improve the rapid decline of G.N.P (Gross National Profit), in order tomake sure that nations found in the Least Developed Countries (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 Least Developed Countries (LDCs) particularly in Africa should improve better social services to their people like hospitals educational facilities, clean water supply for example availability of drugs in hospitals, dispensary or health centers, availability of equipment in hospitals and educational facilities that are books laboratory equipment.
6. To improve transport and communication networks in the Least Developed Countries (LDCs), in order to make sure that transport and communication networks is well available in the Least Developed Countries (LDCs) for development for example road ports, airports, railways etc.
7. To improve science and technology in the Least Developed Countries (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 Least Developed Countries(LDCs).
8. To help the Least Developed Countries (LDCs) to get out of the poverty, this is common problem in Least Developed Countries(LDCs).
OBJECTIVES OF STRUCTURAL ADJUSTMENT POLICIES (SAP’S)
1. To reform and elimination of restriction of trade between North – South.
Aimed to reform and elimination of restriction of trade between North – South.
2. To privatize all Public Sectors.
Aimed to privatize all public sectors so as to improve the Gross National Profit (G.N.P) of the country concern, provide employment and improve the growth ofper capital income of each individual found in Least Developed Countries (LDCs).
3. To Reform Agricultural Sector.
Aimed to reform agricultural sector by mobilizing the resource of the Least Developed Countries (LDCs) for improvement of agricultural sector.
4. To Remove and Reduce Poverty.
Aimed to remove and reduce poverty by improving the living standard of the people found in Least Developed Countries (LDCs), improving Gross National Profit (G.N.P.) of countries, improving science and technology of the third world and improvement of economic growth.
5. To Improve Public Investments
Aimed at improving public investments programmed by welcoming investorsboth from within Least Developed Countries (LDCs) and outside of the Least Developed Countries (LDCs).
6. To Improve and Clear Linkage of Different Sectors of the Economy. Aimed of improvement and clear linkage of different sectors of the economyfound in the Least Developed Countries (LDCs) for domestic development and restoration of economic growthof the Least Developed Countries(LDCs).
PRINCIPLES/CONDITIONS/FEATURES OF STRUCTURAL ADJUSTMENT POLICIES (SAP’S)
1. To Remove Subside in Agricultural Sector
This was whereby International Monetary Fund (IMF) and World Bank (WB) force the Least Developed Countries (LDCs) to remove subsides on agricultural sector.
2. To Introduce Cost Sharing in Social Services.
This was whereby governments of Least Developed Countries (LDCs) are forced to withdraw from providing free social services like free-education, health care, electricity and water supply.
3. Devaluation of Currencies.
The Least Developed Countries (LDCs) is forced to devalue their currencies inorder to accept by the capitalist in their tradetransactions in the world market.
4. Privatization of Economic Sectors.
These are reforms programs in the Least Developed Countries (LDCs) are forced to privatize their financial sector, industry, mining trade and reforming other sectorslike 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 Least Developed Countries (LDCs) are forced by International Monetary Fund (IMF) and World Bank (WB) to eliminate trade barriers in order to premiere private sectors and foreign investors who come to invest in Least Developed Countries (LDCs).
7. Elimination of Price Commissions.
This was 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.
This was so as to attain better life in Least Developed Countries (LDCs), this is achieved by introducing collective bargaining between employers and employees.
9. Introduction of Western Democracy.
This was mostly dominantly and based on liberal democracy which insists onmultiparty and introduction of puppet leaders.
10. Introduction of Trade Liberalization.
This is done by forcing the governments of the Least Developed Countries(LDCs) to remove the price commission of raw materials and manufactured goods inmarket to be determined by thelaw of supply and demand.
11. Destruction of Culture in the Least Developed Countries (LDCs).
This is done by forcing Least Developed Countries (LDCs) to practice their foreign culture, which always destroy the culture of the people found in the Least Developed Countries (LDCs).
ACHIEVEMENT OF STRUCTURAL ADJUSTMENT POLICIES (SAP’S)
1. Raised Living Standard.
It had achieved in raising living standard of the people in Least Developed Countries (LDCs) through privatization of public sectors.
2. Created Employment Opportunities.
It has led the creation of employment among the people in Least Developed Countries (LDCs) after being employed in various sectors which were privatized by the governments of the Least Developed Countries(LDCs).
3. Increased Agricultural Investments.
It had increased agricultural investments, agricultural products and agricultural consumption.
4. Increased Export of Raw Materials from Least Developed Countries (LDCs)
It had increased export of raw materials from Least Developed Countries (LDCs) to developed countries starting from themid of 1985 up to date.
5. It had increased Investment Performance in different Sectors in Least Developed Countries (LDCs).
This was like infrastructure network, investment in industry, agriculture, and financial institutions etc. which create the employment opportunity in Least Developed Countries (LDCs).
6. It had Improved Different Sectors of the Economy.
This was like industries, mining, and trade after these sectors privatized to theforeigninvestors.
IMPACTS OF STRUCTURAL ADJUSTMENT POLICIES (SAP’S) TO THE AFRICAN ECONOMY
1. It Increased Poverty, Suffering and Civil Wars among the Africans. Since most of the policies increase dependency ration between the African nationswith European donor countries eg: through multiparty system.
2. It Increased Corruption.
This is especially in privatization where transparency and un-accountabilitywere nonexistent for instance secret agreement from the public in selling public entities embezzlement of funds.
3. Influx of Multination Corporation.
These were different companies from foreign imperialist countries investment in Tanzania Telephone Company Limited (T.T.C.L) and Tanzania Electricity SupplyCompany (TANESCO).
4. Cost Sharing.
This went together 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 for example Education, electricity and water.
5. It led to Mass Unemployment.
This was because of the retrenchment policy of civil servants where by their lifebecame nursery, no income, the termination benefits given to them were eager to continue life.
6. It Increased Privatization.
Privatization has increased the priceof fertilizers and other inputs, and reduced access to credit.
7. It Promoted Doors Violence and Internal Disputes in Africa.
Some policies of Structural Adjustment Programme (SAP) were impracticable hence promoted doors violence and internal disputes in Africa for exampleprivatizing of all public enterprises.
8. Impacts on Environment.
This is due to industrialization resulted to privatization and foreign investment.
9. Economic Stagnation.
Structural Adjustment Programmes (SAP’s) are responsible for much of the economic stagnation that has occured in borrowing countries.
10.Inequality.
Since the implementation of SAP’s the group between rich and poor has been steadily increasing.
WEAKNESS/FAILURE/DISADVANTAGE OF ADJUSTMENT POLICIES (SAP’S)
1. It had led to Low Prices of Export of Raw Material.
Raw materials were normally exported from Least Developed Countries (LDCs) and increased the prices of imported goods from rich nations.
2. It led to Poor Science and Technology in Least Developed Countries (LDCs)
After the developed nations importing outdated and expired technology in the Least Developed Countries (LDCs).
3. The Removed of Subsides in Agricultural Sector.
This accelerated the low production in agricultural sector because majority of peasants found in Least Developed Countries (LDCs) cannot afford necessitiesof their cash crops like to buy insect sides, pest sides, tractors and ploughs.
4. It had/Accelerated from Rural to Urban Migration.
This was 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 Least Developed Countries (LDCs).
This was especially in rural areas; but also even those who were employed topublic sectors after theyremain unemployed and fell to afford their life.
6. It has Debts of the Least Developed Countries (LDCs).
This was tending to look for loans from International Monentary Fund (IMF) and World Bank (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.
This was especially Least Developed Countries (LDCs) like death few to access education especially higher education and poor water supply.
THE RELATIONSHIP BETWEEN NEO-COLONIALISM AND UNDERDEVELOPMENT
1. Underdevelopment
This is aproduct of neo-colonialism and colonialism.
2. Both have adverse and effects on the Least Developed Countries (LDCs).
Link more debt in Least Developed Countries (LDCs) from rich nations, increase poverty in Least Developed Countries (LDCs).
3. The imbalanced budgets of Least Developed Countries (LDCs).
This was due to exploitation for raw materials from Least Developed Countries(LDCs), due to price fluctuation in the world market all are these are caused by neo-colonialism and underdevelopment of Least Developed Countries(LDCs).
4. Low Level of Industrialization.
This was due to low technological and scientific base of Least Developed Countries (LDCs) due to restriction of the developed nation which imposed to the Least Developed Countries (LDCs) with fail to areas high science and technology all these is used by neo-colonialism and underdevelopment.
5. Both are Product of Imperialism
Both are product of imperialism and both share the same characteristics.