Neo-Colonialism: The Last Stage of Imperialism

“Developing country” is a controversial term usually used by western powers to denote a country with a lower level of industrialization, lower standards of living, and often weaker infrastructure compared to western nations. Developing countries typically face challenges related to poverty, healthcare, education, and economic growth. In Neo-Colonialism, Nkrumah highlights the pejorative nature of the term, contrasting the “lesser” status imposed upon Black-majority former colonies with those of white-majority former colonies, such as Canada and Australia, who—unlike African nations—are taken seriously as equals by the imperial powers.

Foreign aid denotes financial, technical, or humanitarian assistance provided by one country or international organization to another, usually aimed at supporting development, disaster relief, or addressing poverty. Foreign aid can come in the form of grants, loans, or resources to help improve the recipient nation’s conditions. In Neo-Colonialism, Nkrumah argues that foreign aid is one of the ways in which neo-colonialism maintains control of post-independence countries: Western powers offer financial aid with high interest rates and many exploitative conditions, hampering the economic development and political independence of African nations.

Imperialism is the policy or practice by which a country extends its power and influence over other nations or territories, often through military force, economic control, and/or political dominance. It typically involves the exploitation of resources and the subjugation of local populations, allowing the imperial power to benefit at the expense of the colonized region. Imperialism has historically been associated with European expansion in Africa, Asia, and the Americas. Though the imperial era was largely considered over at the time Neo-Colonialism was published, Nkrumah describes the way in which imperial forces have continued their exploitation of developing countries in subtler ways. According to Nkrumah, imperialism did not end with independence, it merely transitioned into “neo-colonialism.”

Nkrumah labels the neo-colonial framework “the Invisible Government.” This term denotes how, in neo-colonialism, the exact relationship between Western imperialists and developing countries is deliberately obfuscated. The invisibility of continuing western domination creates a plausible deniability, even though the developing countries remain beholden to the forces of imperialism that exploited them during the colonial era.

In Neo-Colonialism, Nkrumah regards the US as the epicenter of the post-World War II Invisible Government, exploring how American and other foreign corporations create monopolies that exploit African labor and resources while giving little profit or control to the Africans themselves. He also cites conditional foreign aid and problematic loans from the International Monetary Fund and the World Bank as tools used by the Invisible Government to control African nations economically.

Nkrumah argues that colonialism has changed into what he calls “neo-colonialism.” Neo-colonialism is a modern form of control whereby powerful countries or corporations indirectly influence or dominate former colonies through economic, political, or cultural pressures, rather than direct military or political control. It often manifests through mechanisms like foreign aid, trade agreements, or multinational corporations. Throughout the book, Nkrumah details the interconnected web of financial interests which extract wealth and resources from former colonized countries for the enrichment of Western powers.