6.1.1 to 6.1.4

Neocolonialism Neocolonialism is a term used to describe certain economic operations at the international level which have alleged similarities to the traditional colonialism of the 16th to the 19th centuries. The contention is that governments have aimed to control other nations through indirect means; that in lieu of direct military-political control, neocolonialist powers employ economic, financial and trade policies to dominate less powerful countries. Those who subscribe to the concept maintain this amounts to a de facto control over targeted nations (see Immanuel Wallerstein's Dependency theory). Previous colonizing states, and other powerful economic states, contain a continuing presence in the economies, especially where it concerns raw materials, of former colonies. After a hastened decolonization process of the Belgian Congo, Belgium continued to control, through The Société Générale de Belgique, roughly 70% of the Congolese economy following the decolonization process. The most contested part was in the province of Katanga where the Union Mini�re du Haut Katanga, part of the Société, had control over the mineral and resource rich province. After a failed attempt to nationalize the mining industry in the 1960s, it was reopened to foreign investment. Critics of neocolonialism portray the choice to grant or to refuse granting loans (particularly those financing otherwise unpayable Third World debt), especially by international financial institutions such as the International Monetary Fund and the World Bank, as a decisive form of control. They argue that in order to qualify for these loans (as well as other forms of economic aid), weaker nations are forced to take steps favourable (structural adjustments) to the financial interests of the IMF/WB, but detrimental to their own economies and often safety, increasing rather than alleviating their poverty.