On the far conurbations we trace a humdrum of today’s imperialism, we see similar characterisations of the non-Western “Other,” albeit with a more politically correct tinge (Meng Zhao, “The Media, Education, and the State: Arts-Based Research and a Marxist Analysis of the Syrian Refugee Crisis” -PhD dissertation, Chapman University, 2019). The racist xenophobia is also made opaque with the advent of greater divisions by culture, ethnicity, and religions, which then act as ideological justifications for sub imperialist debt nations ( Fatih Çağatay Cengiz, “Race and Religion in South Africa and Turkey’s Sub-Imperialist Expansion,” Politikon 46, no. 3, (2019): 257–74).
The era of imperialism is abolished or so we perceive. When we ponder upon imperialism, we dwell with the resurgence of how some European countries invaded foreign lands in the historic times and colonised them. The world has changed, now it is downright unethical to invade a country and overhaul its resources. No one even fears it as a possibility. But it is all ostensible. The clarion is preset for the burgeoning avarice. New world orders and capitalism led to ramification of “Neo-liberalisation”. There are three types of imperialism that exist today, that are “colonies, protectorates, and spheres of influence.”
From the plinth of financial captivation, we can emerge with views of financial Imperialism as means by which a country or an amalgam bolsters financial dominance over another country or a group of countries by the debt trap policies and thus led to “protracted social conflict”. Let us take an example. Suppose a poorer country has a large amount of debt. The following things are advised to the country:
- Instauration of the economy – Devalue the currency. This will make the exports from that country marginal compared to others. That in turn will help the country to burgeon dollars (in most cases that is the currency in which the country has debt in) and repay its debt.
- Austerity drive – The government reduces expenditure either in the development of domestic resources like schools, hospitals, roads etc. or other activities, and increases taxes that the people have to pay. They then use the money saved to pay off debts.
- Borrowing – Borrow from private institutions and banks. Since the rate of return is low in the developed countries, private banks and other institutions agree to lend money to these debt-ridden countries at a high interest rate.
This is where all the problems begin as the erstwhile steps are ostentatious to realism. The devaluation of the currency leads to debts becoming more expensive for the government. The austerity drive adversely affects the people of the country as there is no economic development taking place in its precinct and all the money is being used to repay debts. Borrowing money from private institutions increases the interest that the government has to pay.
The combined effect of all these is that the government keeps on borrowing and they fall into the debt trap. Another con is – “unemployment”. The government is then forced to allow industries from rich countries to deploy their manufacturing units. From here the problem of “relative depreciation starts”. Revenues earned by these companies go back to their native places and not to the debt-ridden country.
Greece is a recent example of how debt can spiral out of control. Greece was indebted to a number of private banks in Europe. When it was defaulting on its interest payments, the European Commission, European Central Bank and International Monetary Fund (known as the Troika) bailed it out in 2010. The debt was transferred to Troika balance sheet and Greece was billed for the same. What essentially happened was that Troika was just transferring money it got from Greece to the private banks.
Greece now has a new debt and the Eur-ozone recession of 2011-13 exacerbated its condition. The “domino effect” thus started with unemployment. Money was being made while Greece’s economy was spiraling downward.
American imperialism is thought to be assembled around the third type: spheres of influence; foreign policies such as the Iran Nuclear Deal and invading Iraq are all examples of the dangerously potent spheres of influence the U.S. has. I beg to differ from this idea of the singular imperialist convergence on influence.
Colonies, the first type of imperialism, is very much still in existence under the jurisdiction of the United States. Puerto Rico is regarded as a U.S. territory, but it may as well be a “colony.” I use this comparison because of the way Puerto Rico is governed. Puerto Rico exists “without either the advantages or burdens that come with being a U.S. state or an independent nation.” Puerto Ricans cannot vote in the presidential election, revealing the representation limbo they are in. And even “after 120 years of a relationship, [Puerto Ricans] still don’t call [themselves] ‘Americanos,’ ” said Aníbal Acevedo-Vilá (a former governor of Puerto Rico).
On the untenable fascist edges, we have, china. Tibet and Xinjiang were conquered, they are now controlled by military force and mass colonised by ethnic Chinese people. For, India and Pakistan its Kashmir. The Muslim population desire independence and are subject to the control of magnanimity. Georgia – Abkhazia and South Ossetia are the two puppet states created by Russia and supported by it. Also, in Russia – Ingushetia and Chechnya which have fought for independence. In Moldova; the Transdniestria Moldovan Republic are colonised.
Integrating world economies is paving the way for richer countries to take financial control over marginalised countries. The UN and other world organisations have to draw up legislation for the aforementioned megalomaniac, avarice counties.