The three essential components of neo-colonialism are: 1. Economic exploitation 2. Puppet governments and client states 3. Military assistance 4. Eco… - Kwame Nkrumah

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.

Neo-colonialism is also the worst form of imperialism. For those who practise it, it means power without responsibility and for those who suffer from it, it means exploitation without redress. In the days of old-fashioned colonialism, the imperial power had at least to explain and justify at home the actions it was taking abroad. In the colony those who served the ruling imperial power could at least look to its protection against any violent move by their opponents. With neo-colonialism neither is the case.

The result of neo-colonialism is that foreign capital is used for the exploitation rather than for the development of the less developed parts of the world. Investment under neo-colonialism increases rather than decreases the gap between the rich and the poor countries of the world.