Final answer:
Neocolonialism is the indirect exploitation and influence of poor nations by rich countries and multinational corporations through means such as economic relief programs with austerity measures, perpetuating inequality and limiting economic development in postcolonial societies.
Step-by-step explanation:
Neocolonialism refers to modern capitalist interests that indirectly continue to pressure and exploit poor nations through economic, political, or military means. Unlike traditional colonialism which involved the direct acquisition and governance of colonies, neocolonialism influences formerly colonized countries through methods like economic relief programs, usually administered by powerful intergovernmental agencies such as the World Bank and the International Monetary Fund (IMF). These agencies often impose austerity measures that result in the privatization of vital public services like health and education, challenging the access of poor citizens. Economic inequality perpetuated in the postcolonial era is a direct result of neocolonialism.
The shift from European colonialism to corporate colonialism in the modern era has seen multinational corporations and Global North nations exploiting Global South nations not by direct control, but rather through economic dominance.
While colonialism included the development of external colonies primarily for resource extraction and economic gain, neocolonialism perpetuates economic dominance without formal political control. This form of influence post-independence continues to impair genuine economic growth and development in postcolonial nations burdened by debt and reliant on primary commodity exports with fluctuating global prices.