PREMIUM FEATURE
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A state can be said to be a neo-colonialist or client state if it is independent de jure and dependent de facto. It is a state where political power lies in the conservative forces of the former colony and where economic power remains under the control of international finance capital.

The principle of mutual inter-imperialist assistance whereby American, British, French and West German monopoly capital extends joint control over the wealth of the non-liberated zones of Africa, Latin America and Asia, finds concrete expression in the formation of interlocked international financial institutions and bodies of credit.

The modifications introduced by imperialism in its strategy were expressed:
(a) through the disappearance of the numerous old-fashioned "colonies" owing exclusive allegiance to a single metropolitan country.
(b) through the replacement of "national" imperialisms by a "collective" imperialism in which the USA occupies a leading position.

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Today the need both to maintain a welfare state, i.e. a parasite State at home, and to support a huge and ever-growing burden of armament cost makes it absolutely essential for developed capitalist countries to secure the maximum return in profit from such parts of the international financial complex as they control.

Foremost among the neo-colonialists is the United States, which has long exercised its power in Latin America. Fumblingly at first she turned towards Europe, and then with more certainty after world war two when most countries of that continent were indebted to her. Since then, with methodical thoroughness and touching attention to detail, the Pentagon set about consolidating its ascendancy, evidence of which can be seen all around the world.

The less developed world will not become developed through the goodwill or generosity of the developed powers. It can only become developed through a struggle against the external forces which have a vested interest in keeping it undeveloped.

Once multilateral aid begins the neo-colonialist masters are f aced by the hostility of the vested interests in their own country. Their manufacturers naturally object to any attempt to raise the price of the raw materials which they obtain from the neo-colonialist territory in question, or to the establishment there of manufacturing industries which might compete directly or indirectly with their own exports to the territory. Even education is suspect as likely to produce a student movement and it is, of course, true that in many less developed countries the students have been in the vanguard of the fight against neo-colonialism.

The introduction of neo-colonialism increases the rivalry between the great powers which was provoked by the old-style colonialism. However little real power the government of a neo-colonialist State may possess, it must have, from the very fact of its nominal independence, a certain area of manoeuvre. It may not be able to exist without a neo-colonialist master but it may still have the ability to change masters.

Neo-colonialism is based upon the principle of breaking up former large united colonial territories into a number of small non-viable States which are incapable of independent development and must rely upon the former imperial power for defence and even internal security. Their economic and financial systems are linked, as in colonial days, with those of the former colonial ruler.

The post-war period inaugurated a very different colonial policy. A deliberate attempt was made to divert colonial earnings from the wealthy class and use them instead generally to finance the ‘Welfare State’. As will be seen from the examples given later, this was the method consciously adopted even by those working-class leaders who had before the war regarded the colonial peoples as their natural allies against their capitalist enemies at home.