How does neo-colonialism affect the economic sovereignty of developing countries?

Neo-colonialism often results in developing countries facing constraints on their economic sovereignty in several key ways:

• Dependency on Foreign Aid: Developing countries might rely on aid from former colonial powers, which can come with strings attached, influencing domestic policies and priorities.
• Trade Imbalances: The perpetuation of a trade system favoring developed countries can lead to imbalances that disadvantage developing nations economically.
• Debt Trap: Heavily indebted countries might be compelled to adopt policies favorable to creditors at the expense of their own developmental goals.
• Control of Resources: Multinational corporations often control key resources in developing nations, which can lead to a form of economic exploitation or extraction without fair compensation.

Examples of neo-colonial impacts include structural adjustment programs imposed by the IMF and World Bank, and land acquisitions by foreign entities that limit local benefits.

References:
United Nations - Neo-colonialism and Development Policy
NCBI - The New Neo-Colonialism in Africa