1. Neo-colonialism and the scramble for resources. Geographical Superpowers The Sheffield College : A2 Geography 2010

2. Superpower Geographies 2. Impacts and influences of Superpowers a) The changes from colonial rule to indirect neo-colonial rule b) Key roles in international decision making, policy and action c) Control of trade d) Superpower influence in the idea of developing a ‘global culture’ Learning Objectives: Understand how superpower rule has changed from colonial rule to indirect neo-colonial rule Assess the mechanisms of neo-colonial control – trade, aid and debt

3. Era of decolonialisation Independence brought about conflict rather than immediate freedom for 3 main reasons 1.Colonial boarders did not match religious or ethnic boundaries = conflict 2.Colonies had a government but indigenous people excluded from running them = lack of experience 3.As colonial powers left, insurgents pushed them out = violence

4. Neo-Colonialism A form of indirect control over developing countries, most of them former colonies Direct political control decreased whilst economic control increased -Economic dependence on primary goods -Economic dominance of multinational companies -Impact of foreign aid and foreign debt

5. How were they being indirectly controlled? 1)Aid Often given with ‘strings attached’ forcing the developing countries to spend it in particular ways “Tony Blair was at the centre of a Cabinet row last night after it emerged Downing Street was backing plans for the sale of a British-made military air traffic control system to Tanzania, one of the world's poorest countries, despite ferocious opposition from the chancellor, Gordon Brown, and the international development secretary Clare Short. Sources at the Treasury and the Department for International Development said Mr Brown and Ms Short would strongly oppose granting an export licence to the defence firm BAe Systems for the £28m project. The contract has been condemned as a waste of money by the World Bank for a country that has just eight military aircraft and a per capita income of £170 a year.” The GuardianThe Guardian, Tuesday 18 December 2001

6. Cold War Map of Africa Aid has often been used as a political tool.

8. Key Statistics The UK’s Gross Public Expenditure on Development (GPEX) amounted to £7,183m in 2008/09. The DFID aid programme accounted for £5,803m (81 per cent) of this expenditure. GPEX increased to £7,183m in 2008/09 from £6,027m in 2007/08. This represents an increase of £1,156m (19 per cent). This increase follows a 21 per cent decrease in GPEX between 2005/06 and 2007/08. Excluding debt relief, GPEX totalled £6,835m in 2008/09; this represents an increase of £883m (15 per cent) over the 2007/08 total of £5,952m. In the calendar year 2008 the UK reported £6,356m as Official Development Assistance (ODA), making the UK the third largest OECD-DAC donor on this internationally agreed classification of aid. The UK’s ODA/ GNI ratio for 2008 was 0.43 per cent.

11. 2).Trade Low raw material export prices contrast with high prices that developing countries have to pay for manufactured goods and energy. This is only the case for some countries and at certain times depending upon commodity prices.

13. http://news.bbc.co.uk/1/hi/programmes/newsnight/7347686.stm China in DR Congo aid deal BBC Newsnight 2008 Tim Whewell, his producer Caroline Pare, and editor Phil Clarkson won Best Television Feature at the 2008 Diageo Africa Business Reporting Awards for their investigation - China in Congo. The judges called the film, "A very high quality production which asks all the right questions and clearly articulates the influence of China in Africa."

15. 3) Debt Many developing countries pay huge sums of money to developed countries each year in interest At least 54 companies, many based in tax havens, are known to have taken legal action against 12 of the world's poorest countries in recent years, for claims amounting to $1.5 billion. This means money released by debt relief is going into the pockets of wealthy investors, not spent on health and education. Vulture funds seek to profit by buying up the debts of heavily indebted poor countries at a cheap price, then trying to recover the full amount, often by suing through the courts. Nicaragua is currently facing legal action in a District Of Columbia District Court in the US by Inex Interexport, a Serbian joint stock company. The company held the original debt for $9.6 million and is seeking $9.3 million. The World Bank/IMF report states that IMT AD based in Belgrade are also involved in legal action.

16. Debt relief key to poverty reduction The HIPC Initiative was launched in 1996 by the IMF and World Bank, with the aim of ensuring that no poor country faces a debt burden it cannot manage. Since then, the international financial community, including multilateral organizations and governments have worked together to reduce to sustainable levels the external debt burdens of the most heavily indebted poor countries. First step: decision point. To be considered for HIPC Initiative assistance, a country must fulfil the following four conditions: 1) be eligible to borrow from the World Bank's International Development Agency, which provides interest-free loans and grants to the world's poorest countries, and from the IMF's Extended Credit Facility, which provides loans to low-income countries at subsidized rates. 2) face an unsustainable debt burden that cannot be addressed through traditional debt relief mechanisms. 3) have established a track record of reform and sound policies through IMF- and World Bank supported programs 4) have developed a Poverty Reduction Strategy Paper (PRS) through a broad-based participatory process in the country.Poverty Reduction Strategy Paper (PRS)

18. Ghana @ 50: success or failure? In 1957 gained independence from British Colonial rule Using table of development indicators for Ghana on p.152. In what ways has Ghana a)Made progress? b)Fallen behind? Prepare a report ‘Ghana – 50 years on’. In 750 words, assess whether life in Ghana is improving, and what issues it faces for the future

19. “ People who have worked on these issues for many years have frequently arrived at the conclusion that debt is not a financial or an economic problem at all but in every way a political one. It is the best instrument of power and control of North over South [and now East] ever invented; far superior to colonialism which requires an army, a public administration and attracts a bad press. Control through debt not only requires no infrastructure but actually makes people pay for their own oppression.” — Susan George, The Global Citizens Movement: A New Actor For a New Politics, 30 August 2001The Global Citizens Movement: A New Actor For a New Politics http://www.globalissues.org/article/31/the-heavily-in-debt-poor-countries-initiative- is-not-working

20. Exam Question Using examples, assess the view that the relationship between the developed and the developing world is a neo- colonial one’ (15 marks)