How neo-colonialism exploits former African colonies is covered in the following extracts from Neo-colonislism.com on the Internet. European nations, including the USA, are described as exploiting African nations through the purchase of cash crops, the mining of African minerals, and the manufactured goods sold to the Africans. I presume that this pattern of international transactions applies to other developing nations.
“According to Rodney and Amin, European countries, and increasingly the United States, dominated the economies of African countries through neocolonialism in several ways. After independence, the main revenue base for African countries continued to be the export of raw materials; this resulted in the underdevelopment of African economies, while Western industries thrived. A good example of this process is the West African cocoa industry in the 1960s: during this time, production increased rapidly in many African countries; overproduction, however, led to a reduction in the selling price of cocoa worldwide.
Neocolonial theorists therefore proclaimed that economies based on the production of cash crops such as cocoa could not hope to develop, because the world system imposes a veritable ceiling on the revenue that can be accrued from their production. Likewise, the extraction and export of minerals could not serve to develop an African economy, because minerals taken from African soil by Western-owned corporations were shipped to Europe or America, where they were turned into manufactured goods, which were then resold to African consumers at value-added prices.
A second method of neocolonialism, according to the theory’s adherents, was foreign aid. The inability of their economies to develop after independence soon led many African countries to enlist this aid. Believers in the effects of neocolonialism feel that accepting loans from Europe or America proved the link between independent African governments and the exploitative forces of former colonizers. They note as evidence that most foreign aid has been given in the form of loans, bearing high rates of interest; repayment of these loans contributed to the underdevelopment of African economies because the collection of interest ultimately impoverished African peoples.
The forces of neocolonialism did not comprise former colonial powers alone, however. Theorists also saw the United States as an increasingly dominant purveyor of neocolonialism in Africa. As the Cold War reached its highest tensions at roughly the same time that most African countries achieved independence, many theorists believed that the increasing levels of American aid and intervention in the affairs of independent African states were designed to keep African countries within the capitalist camp and prevent them from aligning with the Soviet Union.” … …
This extract from Enclopaedia.com shows how colonialism can succeed without the use of arms or OTHER COERCIVE MEANS. I recall an aid agency, one of the members of which required its aid money to be spent in its country. Charity can be materially beneficial to the donor.