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neo-colonial mechanisms - Coggle Diagram
neo-colonial mechanisms
strategic alliances
military alliances between developing nations and superpowers
dependent on military aid and equipment
e.g. non-NATO ally
aid
development aid with strings attached ( tied aid )
forces the recipient to agree to policies and spending priorities suggested by aid donor
e.g. Nigeria & China
TNC investment
investment from abroad
may create jobs and wealth
may be dependent on the receiving nation following "friendly policies"
e.g. shell oil
debt
developing nations borrow money from developed nations
end up in a debtor-creditor relationship
e.g. Japan & the US - investments in treasury securities
terms of trade
low commodity export prices
contrasts with high prices for manufactured goods
inhibits development
e.g. gold extraction