Neo-Colonialism: The Last Stage of Imperialism by Kwame Nkrumah

151 Pages·2014·13.47 MB·English

Be the seth
Towanos cOLUSEAL sMuEbers, 1946
WHAT E atEAS Hy PUNTER Aer, 1840
RANA {4uToMoLRaruy), 1957

1 sprax of eREEvOD4, 1481

sexta wnat tu7s, 1983,

consermncrans, 1964

NEO-COLONIALISM

The Last Stage of Imperialism

KWAME NKRUMAH

a

INTERNATIONAL PUBLISHERS NEW YORK
=

‘This book is dedeated te
the Brecdone Fiehters of Africa
living and dead
“The evens simencinme of finance-cagital cone
seastatel nx for Bands wood cheating ap extremely
{ntorsie reagork of clot ies a relationship which
Involves ast nly th eal and medions capitals, but
ils egen the vary sual hie, op the nue had 2nd on
{Ee naie che iter are gate again other vaLioal Sesce
[rues of flazncers forthe pari of te world and
fhe right to rule ewer other countries these 80
factum Laken togeTher cxute che complete rmovetiow
fl the pasceatng cane tw ee aie of imperial.
‘The signe nf the cies are a "ener enthusizs
resinting is prospects, « pasionate deftrce of
Denllinn, and creny pose camouflage of is eva
ature? anes, Enporiaien,

Contents

Intzodnetion
Altica’s Resources

Obstacles to Bew:

je Hrogeess

Inperiatist Finnce

4, Monupoly Capitalism and the American Dollar

5. Phe ‘Tru behind tae Headlines

Primary Rescuross anc Foreign Tateveste
"Whe Oppenheimer Empire
Foreign Investment in South African Mining

[Angle Ametican Corporation Limited

1 The Diamond Groups

‘fining Inveseats in Central Africa

2. Companies and Combines

1 The Tir, Aluminior and Nickel Ciants

Laon Miniére du Tiaut Kurang
ootomie Prenuurer in the Congo Republi

Monetan, Zones and Foreign Banke

bay
Brogineing C

18, The Mechaninns of Nec-Culoozalista

Conetasion
Bibliography

Index

« Inaustrie

‘The Eects ou Prinoary

introduction

°fuan neo-colonialise of today represents imperialism in it inal
and pethaps its mos dangerous sg. In the past it was possble
to convert a country upon which a neo-colonial rogime had
been imposed—Typt in the ninctcenth century fs an cxaraple
into # coloviat territory. Today this procets it no longer
feasble, Old-fashioned colonialism is by no means entirely
abolished, It still constitutes an Afeican problem, bat it is
everywhere on tho rctcat. Onos a tonitory has become
noraially independent itis no longer possible, a8 it wat in the
fast eoncurg, to revetse the process. visting. colonies may
linger on, But no new colonies will be created. In place of
colonialism 23 the main instrument of impecalism we have
neo-colonialism.

‘sscnee of neo-aolanalism is chat the State which is
subject o itis, in theory, independent cad las alf the attward
ltsppings of internacional sovereigary. In reality ite economic
sytem and thus its political poli is directed fzom outside.

"The methods aad form of this dizection can take vaeious
stapes, Tor example, ia an extzeme case Ube troupe of the
iinperial yovser may gurriten the territory of the aed-colonial
State and enmrol the government of it. More often, however,
rocolonislst control is exercised through econsanie of
Monetary means, The neo-colonial Stace many be obliged to
fake the manufactured products ofthe imperialist pve to the
‘clusion af competing prodtcts fiom elsewhere, Control over
governement policy in the neo-colonial State may be secured hy
parents towards the cost of cunning the State, by the pro~
vision of civil servants in positions where they can dictate
policy, and by manetary control aver foreign exchange: thinigh
the imporition of a banking system conttelled by the ionperial
posse.

“Where neo-colanialism exists the power exercising sonra
is often the State which formerly culed the territory in qy-estion,
but thicis not necensurily so. for evarmple, in the ease of South
Vietnam the farmer ianperial power was France, Prt nen
colonial control ofthe State hus nowr gone ta the United States
Tris possible that neo-coldmial coatrol may be exercised by 2
‘consortium of financial incerests which are not. specifically
identifiable with sny particular Stute, The conceal of he Congo
‘by great international financial enacerns is a case in point.

‘The resuh of nco-eolonialism is that foreign capital is used
for the exploitation rather than for the development of the lese
developed parts of the world. fuvestment under neo-colonialism
fnercases rather than decreases the gap botwreca the rich, and
the ponr commtrien nf the world,

The struggle uguinat aen-coloaiatis is not aimed at exchud-
ing the capital of the develuped world from operating in less
developed countries, It is vimed at preventing the financial
[power of she developed countries being used in such a way a3
to impoverisk the lesx developed.

Non-alignment, as pructied by Ghana and meny other
countrics, is based om eo-aperution with all States whether they
be capitalist, socialist or have a mixed ecomomy. Such a policy,
therefore, involves forcige investment fruxo cupitalist countries,
‘but it must be invested jn accordance with national plan
drawn up by the government of the noo-aligned Stale with its
‘own interests in mind, The inaae isnot what return the foreign
innvestor receives on his investments, Ife may, in fuc, do better
Tor himself if he invests in 4 nop-ligned emuntey than if he
invests in 2 neo-colonial one. The question is one of power.
‘A State iu Lhe grip af aeo-colonialism is net master of its own
Uestiny. It is this factor which mekes neo-cwlooialiam auch a
rerious threat to World pesce, ‘The gravnl. of nuclear weapons

wr

sas made out of date the old-fashioned balance of power which
revted vpon the ulliarate sanction of a major wae, Certainty of
‘ruil tose destruction effectively prevents either of the great

Tver blues ftom threatening the other with tae possibilty of
Piverld-wide war, and millicary ronfict hax Ginx become con-
fined to ‘lnuited wars’, For these nco-culuaialiom ig the
breeding ground.

‘Such sure can, of course, take place ia cuunaries which are
pot nco-unlouidtist controlled. Indeed their object may be to
fstablish in a amall but independent canntry 1 nev-colonialist
regime. The evil of nea-colonialism iv that it prevents the
Formation of those large units which would make inpossi
‘mited war’. To give one cxarople: if Africa wa united, no
major power bloe Would atterapt to subdue it by limited war
freeatse frum the very nature of Umited war, what can be
achieved by it is itself Hrnited, fe is ancy where «anal Beates
cenit that it is possible, by landing a few thousand marines or
Dy financing a merconsry force, to seware 4 decisive result

"he restriction of military action of ‘limited wars’ is, how-
‘ever, au guarantee of world peace and is likely to be the factor
‘which will uieaarcly involve the yreat power blocs in a world
‘war, however much both are detennined to avoid it,

Limixed war, ance embarked upon, schieves a momentam
of its own, Of chis, the war in South Vieunm is only ane
aample, Ic cscalates despite the desire of the great power blocr
to keep it liuiced. While this particular war may be prevented.
fom leading to 4 world oonfict, the multiplication of similar
Simited wars can nly have-one end—world war and the terrible
eonsequences of nuclear confit.

‘Nev-coloniclism ig alsa the worst farm of iroperiatism, For
thase who practise it, it means power without responsibility
and for those who suffer from it, t meuns exploitation wichout
edrose, In the days of old-fashioned culonialicn, the imperial
power had at least th explain and justify ut home the actions fc
‘was taking abroad. Tn the colony those who served the culing
imperial power evuld at least look to ite protection against any
$lblent ntve by ter epponcnts, With neu-coloiaiam neither
Above all, nev-colonialisn, like colonialian befate i, prst=
ppones the facing of the sects: ismues wich will have to be
faced by the fully developedl sector of the weld before the
anger of word ‘ear ean be elininited or the problem if
world poverty rosalred.

Xeo-volonial?ir, like colenialinn, is an attemp: m export
the sucial conflicts of che capiselist countries. The temaparury
success of this policy ean be seen in the ever widening wep
hoetween the richer and che poorer nations of he workd, But
the inerual contradictions and conficts of nec-co-patalisar
rmulke it wertain that it cannoe onduee ss @ permanent world
policy, Ltow it shoold be brought to an end ts a prublear that
shuuld he studied, shove all, by the developed nations uf the
world, becmen it is they whe ‘ell feel the full impact af the
tltinaite failure, ‘The Temger it contirmves the eruice certain i ix
that its inevitahte collapse will destray the sutial system uf
‘whick they have made itz foundation,

"Whe reason for ite devclopmort in the post-war perivi oa
be briedly sumnmoerised. "The problem which taued the wealthy
rations of the world at the en of ehe second world wt was
‘he impossiility of returning to the pre-war situation in which
theve vas a grest gulf hutweer the Few rich und tle muy poor,
Irrespective of what puricalur political party war in power,
the Internal preseures in the rich countries of the warld were
uch that av post-war capitalist coumery could survive unless
ft Became a Welfare State. There might = dillereucee io
degree in the extent uF the sccint enefis given to the ine
duvtial und ogrivultural workers, but what was every here
Jmpossibfe sua « return to the mais inersployenent und to the
low level uf living of the pro-war yeurs,

From the end of the nineteenth century omvards, eulonies
had been regurlad usw sinirce of wexlth which could be use
to mitigate the clus camBicty in the copitalie States and, as
will he explained later, this policy hud some success, But it
fled in its ulinate abject’ hecaume the pre-war capitaint
States were so organized internally that the bulk of the profit
rude from enlonial possessions found its way into the puckets
tf the capitalist chins andl not into those of the warkers, Fur

fom achicring the abject intended, the working-class pares
at tes end t eo thee fees th thee of the

onal peoples and the ienperialist powers foun chemselves
SSgpeed upon a cooflet on vo fronts, at home with tel own
Soners end abroad against the growing forves of colonial
Bhesation

"Phe post-war period inaugurated a vecy different colonial
policy. “A deliberate arcempt vas made divert colonial
Errangs from the weatthy cass and use therm instead generally
fo finance the "Welfare State, As wil he seen ftom the
tramples given lar, thin was the method consciously adopted
fen hy those working-clas leaders who had before the war
‘egarded tae cclonial peoples ux theie natura allies against theiz
fapinisc encmics at haroe

Tar fst it as premmaed tat tis obj could be achicwed
by maintaining the pre-wae colonial system. Experience soon
proved iiutatterupts 20 do ao would be disastrous and youl
aly provehe colonial wars, thus dissipating the andcipated
gains feoas the continuance of che colonial regime. Britain, in
paricular, realised thie at an eatly sage and the corteciness
OF the Bitch judgement at the time has subsequently been
emunsinted by the defeat of French colonialism in the Par
Bast und Algeria and the flare of the Dutch to retain any af
thee furmer colonial empire

“The system of nco-colonialisas as chercfore instituted and
in the dioct rau it has served the developed powers adaurably.
Te is iy the fong ran that its consequences are likely 10 be
cntastrophio for them.

‘Net-colonttism ie based upon the principe of bresking up
formes lente uniced colonial tersioris ito a robe of small
froneviable States which are incapable of independent develop
ment and must rely spon the former imperial power for
defence and even intemal security. ‘Their economic and
Bancial systeme ate linked, an in colonial days, with those of
the former colonial wler

‘At fist sight the scheme would sppear to have, many
sdvancages for the developed conntries of the word. All the
ross of nco-enloniahiem ean he wecuzed if, in any given ure
4 reasonable propanion of the States have a neo-colonialist
system. Tc is not nsceseary that they aff should have anc.
Unless small Stutev can coinbiue they must be compelled to
sell their priory produces at prices dictated by Une developed
nations and buy their manufactused goads at the prlocs faxed
by them. So long 2» neo-colonialism can prevert polidal and
economic conditions fr aptirmuma develaprnerst, che developing
ccmuntries, whether tkey are under nap-colouilist conto: ot
not, will he unable to create » large enmigh anutket t9 support
indostratiztion, Tn the sums way they will lick che financial
strength ¢9 force te develaped countries 10 acexpr their
primacy products ata fie prive

In the noo-colonialist ceretories, since the former coloniat
power has in theory relinguished political cortsal, ifthe social
ronditions accasioned by ase-colonivtisma cause'a sevele the
lncal nep-colonislist government can be wietilived and ancther
equally subservient one substituted in its place. On the other
hand, io say continent where nev-colus iin exists on a ide
seale the eame social pressures which ean produce revelts in
reo-anlanial territories will aso affec: Uaose Saces which have
refused 19 acoept the system and therelore neo-colonialist
rations have 2 rcadyscade weapon with which tiey can
sbroaten their wpponeuts if Ciey apyeur suecenetully to Le
challenging the syscem, 78

These advantages, whick scum al Urs sight so obvious, are,
however, on exnziaslims, ilusory Weave they Lil w the
into cousiderstion the fucls uf the world today.

‘The intrnfuction 12 vee-cntoniatism inerewes the rivalry
between the great posers which was provoked hy che nld-style
calanislins. However isle res! paver the gaverneneet, oF a
ev-colunialist § ay possess it must have, fram the very
fact of its nominal independance, a certain arca af manceuvre.
Te may not be sble 9 cxitt without a nen-celanial’st master
Int it may sill have the ability to change raaseers

‘The ideal nco-coloniatist State would Fae ome which was
shally snbserviont to neo-colanialst interests et the existent
of the sncialist nations makes it impossible to enfurce the full
gout af the neo-calonislise system. ‘Phe existence of an

rT

alkerntive system i feel a challeuge co the neo-sooniaist,
eginc, Warnings abour “the dangers of Communist sub-
Jurdon’ are fikely wo be ewo-edged since they bring to the
Totier of those living under a nea-coloniais: sysizas dhe
porsbiiy af a change of regime. Tn fuel neoeeo'onia sm isthe
erin of its own contradictions. In urder co make i attractive
to those upon who its practiced it must be shown as capable
of raising their Hving standards, but the cconomie abject of
feo-ovlonatin: ie to keep thust stuulards depresed in the
Interest of the developed emmaries. Ic is only when this con-
tradiction is understood that the failure of jncemershle ‘si
programe inany of them well itenvioned, em he exalained

Te the fest place, the ralers uf neo-colonial States derive
thelr murily to govern, pot from the wil of the people, but
from the support which they ol. [rom thelr neo-coonialise
asters, ‘They have therefore litle interest in developing
uration, strengthening the bargaining power af their workers
fmplosed by expatriate fines, ut indeed of taking any step
‘which owuuld challenge the enlaxial pact of commerce and
Industy, which it fs the object uf nebscolonialism tu preserve,
“Rid, therefore, to a neo-ovloaial State is merely a revolving
creiit, paid by the nco-colanal easter, posting tough the
deo-cclunil State and reruroing tothe aeosclanial master in
the form of increased profits

Beownly i isin the field of aid’ atthe sivary of individual
developed States fist manifess ill, So long a# neo-coloniah
dum persia so long ill spheres of interest persist, und this
saakes mullateralaed—wbich isin fac the only effective fama
af sid isnpossible

nee muller aid begins the neoscolonialist masters are
faced by the houtlty of the vested intercats in their own
eounuy, Their manufaerers astuallyobjoct to any attempt
to mise the pric of the rine oatesils Which they obtain fruin
the nevolonili territory ia question, or tothe establishment
there of manofacnuing industries ‘which might compete
Aliretly oe indirectly with their own exports to the territory.
ven eduostion is suspeut as Likely co produce a student
‘ovement unl itis, of cours, true that in many less developed
counuries the students have been ia ube vanguard of the Fight
agains! neu-colemialism,

‘Tn che end she situation arices that use only repr of sid which
the neo-culonialist masters consider 26 safe is “alitary aid

‘Once s n2o-colonialst teevttory is brought ta sueh a stare of
evonoinic chuoe and misery that tev}! actually breaks out
then, and only then, is thece no Fimit ta the generosity of tae

loais] overlord, provided, of coors, thaw the: irmds

supplied are udlised Cxctusively for military pargows.

Miliary aid in fact murks the kuse stage uf 2u-colonistiee,
and ite effect is vell-destruutive. Sonner wr leter the weapwins
uppiied pass into the funds of the opponents af the neo
colonialist rogime end the war izelf inerexses the social
misery which originally provoked i

Neaeco‘cnialism is a gill-tone wraund the necks of te
developed countries which practise i. Luless they cat rid
themselves of it, iC wil drow them. Peevively uke develuped
powors could escape from the contradieuuns of nou-colonishiam
hny substituting for it dicect colunfalis, Sucl we solusion is
longer possibic and the reasons for it have heen wel. explained
by Mr Owen Tattimare, the United Staves Fer Eyster expert
an adviser to Chiang Kai-shek ia the inumediute pust-war
pesied. [le wrote:

sin, which war so oasily and. swiftly subjugated
eonquerors in che cightcerth and wineteeth centuries, di
played an acoazing abilicy stubboenty to resist moders armies
equipped with acraplenes, tanks, motor Velicles tnd mobile
anillery

Formerly big tersitoties were cunguered i Asia with
small forces. Ihoame, frst of all froat plunder, then frac
direct taxes and lastly fro trade, eapital javestinents an
ong-term exploitation, covered with incredible speed the
eqpendinrre for milisary operations. ‘his exilhnaeie repre-
sented a great temptation 0 strang countries. Now they uve
Fun up agkinst another avithmeti, mal it diccourayes thera’

The sane aricametic is Tikely to apply theouglout dhe less
developed werd,

ee

‘This book is thereforean attesept tv examine neo-cuboeiaBisn
sot only in its Aeian content and fs relatin to Afcives way
‘but in World perspective, Neo-coloaialie is hy ao oreans
‘exclusively an Africin questca, Long before it was prictised on
any Forge talon Aftic it wns sm eelablishel system ia olker
pais of the world, Nowhere has it proved succesful, citer ia
Tsing living standards or in ukinwtely benefiting te
Countries which have inlged ini

IMucx prodictad that the grovsing gap beoween the wealth
af the possessing elasses and the Workers it employs would
tldnacely produce a conflict fatal co captain. each
individual capitalist State

"This confer betweca the sich znd use poor has now been
transferred on tothe intoraational soene, but for pou! of what
jn acknowledged to be happening it iso lorges necessary to
onal the classical Marist writers, The situation is set aut
‘with the vemos arity in che leading organs of capitalist
opinion. Take for example the Jollowing extencts from The
Well Street Fourna, cas rispaper which petiaps bes reflects
rined States enpitalise thinking

Tn ite none of 12 May "983, under the headline of Poor
‘Nations’ Plight, the paper firx axalyses ‘wich countries are
‘considered ‘industrial and sehich backward. There is, if
explains, ‘no tigid mnethod of classifica’, Nevertheless, it
points nu:

‘A generally used breakdown, however, lns recently been
muiistuined by che Intemational Monetary Fund becvase,
in the words af an IMF olfical, “the econwimie deanuteution
in the world is getting increasingly apparent.” ‘Phe breck-
down, the offal says, “is bused on shnple voanoc

In the TMP’s view, the industril uoontriew are the
United Stars, the United Kingdura, anust West Turopesn
‘ations, Canade apd Japan. A special cetugory called "other
developed areas” iclutles such uther European lands as
Finland, Greoee and Ticland, plus Sustralis, New Zealand
and Socth Africa, The IMF's “less developed” exapory
ee

cemufyaces all of Latin America and newly all of the Middle
ast, non-Comsounise Aeia and frica

In other words the ‘backward’ omuntries are those simated
fn the nev-colunial areas,
Aller quoting figuies to support its argument, The Watt
Sercet Journal comnments 00 this stuulio
“The industrial nations tave added pearly $2 ‘illion to
their reserves, which now approxitaats 852 billion. At the
seme time, the reserves of the less-developed group not. my
Ihave stopped rising, but hive declined some S20? milliun.
‘Te analysts such ss Britain's Miss Wand, the signifcanve
of such statistics iv leur: the evonemic gap is rapidly widen.
lng "benween a white, cumplacenr, highly bourgeois, ve
‘wealthy, very small North Atlantic lite and everybody else,
and this is not a very comfortable heritage to leave to one’s
chikien.”
“Everybody else™ includes approximately two-thirds of
the popmlatiom uf the eesth, spread through about 100

This is no new problesa, Ja the opening paragraph of his
books, The War on World Poverty, written in 1953, the present
Britith Labour leader, Mr Harold Wilk, sumauarised the
rmgjor problem of the warld as he then save it

“Bor the vast majority of mankind the most urgent
problem ix noe war, ar Communism, or the cost of living,
br taxation. It is hunger, Over 1,500,00,XN) people, som
thing like two-thirds of the world's population, are living in
conditions of weute Luager, defined ir terms of identifiable
nutritional disease, This hunger is at the sowe Gane che effet
and the cause of the poverty, squalor and misery im which,
they live.

Tis consequences ure fikewise underseued.’The correspondent
of The Wal! Street Journal, previously quoted, underlines the

many diplomats and cconomists view the implications
as overwheltingly—and daungerously—political. Unless the

present decline can be reversed, these analysts fear, che
United Srares and. other wealthy industeial powers of he
‘West face the distinct possibitity, in the words of British
economist Barbara Ward, “of a vant of international class

What is lacking are sny positive proposals for dealing with
the situation, AL thet The Wall Street Fournal's correspondent
ean do is to point out that the traditional methods tooam—
mended for curing the evils are only likely to trake the
situation worse.

Te has heen argued that the developed oations shonld
ffoctively atsiat die poorer purts of the world, und that the
Whale World shoul be tumed into a Welfare State. However,
there seems litle pruspeve that anything af this sort could be
achieved. The so-called ‘aid? programmes to help hackward
ceonomies tepresent, aevordiny to a rough UN. sstivoate, only
fone half of exe per cent af the total income ni industrial
countries, Buc when it epmes to the prospect of increasing much
fd the mtood is one uf pessimism:

"A large school of thought holds that expanded share.the-
vweulth schemes are idealistic and impractical, This school
eontends climate, undeveloped kumar, skills, lack of natural
resources and other faclors-aot just lack of money-~
retard economic progress in mary of these lands, and that
the ementrics lack personel with the training or will to use
vastly expanded sid effectively, Share-the-wealth schemes,
sccurding to this view, would be like pouring maoney down u
Tottomless well, weeakening the douer mations without
effectively curing the ills uf the recipients.”

‘The absurdity of thin argument ia dernonstrated by the fact
that every one of the reasons qaated 1 prove why the Ics
developed parts of the world cannot he devcleped applied
equally strongly 10 the present developed countries in che
Pesiod prior to their development. The argument is only true
i this sense. The less developed warld will not become
Aeveloped through the goodwill er generosity of the developed
powers, Il cin only Wecome develaped Suough a struggle
pavinst the external forcep shel ties © vessel ineeres. in
keeping it undeveloped,

Gf dhese favors, nest-colonialion ig, «7 is staye of Ftury.
the principa

L propose re analyse nen-culonic.ism. tr

el the Afrienn enuiuent read showy he

at the moment keeps at artiécally pone. Next, 1 propos
shoo how in pectic Alsiean Unirp, wksck in sei can ony
stublished by the deceit of ren-ealeriuliom, cancd immer
Taine African living statabucls, Pram his xceirning, T propose
fo exarcine new-colonialism generally, frst Pistorically esd
thea by @ cansigerulion of the gris iotercatiwned :nonopolies
shove coprimued stzunglehald an tke 2en-nchinial sectors a
the world enaures the eaatirnatice ob Ux system

sy examining the
eacccolenialsera,

De

NEO-COLONIALISM.
‘The Last Stage of Imperialism