GEOG-120 Lecture Notes - Lecture 4: Neocolonialism, World-Systems Theory, International Monetary Fund
24 Sep 2020
School
Department
Course
Professor
Leo Ellis
Physical Geography
Geog-120
Contexts of Uneven Development:
1. Capitalism
2. World Systems Theory
3. Decolonization and Neo-Colonialism
4. Contemporary Connections
Capitalism:
● Global Division of Labour: Companies in the developed world take advantage of cheap
labour in the developing world.
● World Systems Theory (Wallerstein): An approach to understanding uneven geographical
development that has emerges with capitalism in the world economy
The world economy has a three-tiered structure:
● Core: Higher levels of education, higher salaries, more technologies, diversified
economies generates more wealth
● Periphery: Lower levels of education, lower salaries, less technology, generates less
wealth
● Semi-Periphery: Both core and periphery processes occur; are exploited by the core, but
in turn, they exploit the periphery.
World Systems Theory (Wallerstein):
● Not all places are equally wealthy in the capitalist world economy Uneven
Geographical Development
Decolonization and Neo-Colonialism:
● Decolonization set up a system of politically independent states and maintained an
interdependent global economy
● Development is tied to colonial and neo-colonial relationships
● Neocolonialism (p.55): “Economic and political strategies by which powerful states in
core economies indirectly maintain of extend their influence over other areas or people
o Economic and institutional development, debt, trade, military involvement,
culture
Neo-Colonial Relationships: Foreign Debt:
● In the 1980’s and 1990’s, structural adjustment loans from the World Bank and
International Monetary Fund (IMF) were lent to newly independent states for
development projects.
● Strings Attached:
o Economic reform; privatization opening borders to foreign trade, reducing tariffs,
encouraging foreign investment
● The cost of repaying the debt (with interest) exceeds revenues
