6.1.5 to 6.1.7

Some critics emphasize that neocolonialism allows certain cartels of states, such as the World Bank, to control and exploit (usually) lesser developed countries (LDCs) by fostering debt. In effect, third world rulers give concessions and monopolies to foreign corporations in return for consolidation of power and monetary bribes. In most cases, much of the money loaned to these LDCs is returned to the favored foreign corporations. Thus, these foreign loans are, in effect, subsidies to crony corporations of the loaning state's rulers. This collusion is sometimes referred to as "the corporatocracy." Organizations accused of participating in neo-imperialism include the World Bank, World Trade Organization and Group of Eight, and the World Economic Forum. Various "first world" states, notably the United States, are said to be involved. An insider's first-hand description of the corporatocracy is described in the book Confessions of an Economic Hitman by John Perkins. Critics of neocolonialism also attempt to demonstrate that investment by multinational corporations enriches few in underdeveloped countries, and causes humanitarian (as well as environmental and ecological) devastation to the populations which inhabit 'neocolonies.' This, it is argued, results in unsustainable development and perpetual underdevelopment; a dependency which cultivates those countries as reservoirs of cheap labor and raw materials, while restricting their access to advanced production techniques to develop their own economies. By contrast, supporters of the concept of neocolonialism argue that, while the First World does profit from cheap labour and raw materials in underdeveloped nations, ultimately, it does serve as a positive modernizing force for development in the Third World.