Neo-colonialism, a system of economic, political, military and other relations imposed by the imperialist states on the developing countries in order to keep them within the framework of the capitalist economic system. It is based on the economic backwardness of young national states and their unequal, dependent position in the world capitalist economic system. Neo-colonialism appeared as a result of the complete untenability of the old colonial policy and the collapse of the colonial system of imperialism. The material basis of neo-colonialism is, first, the fact that the developing countries belong to the system of the international capitalist division of labour (see Division of Labour, Capitalist International) and remain economically dependent on the imperialist states, and, second, the fact that foreign capital, mainly imperialist monopolies, retains important positions in their economies. Today, the forms and methods used for bringing pressure to bear on newly free countries have changed considerably. The imperialists seek social support not only among the feudal and tribal nobility, but chiefly among the national bourgeoisie. The creation of national, primarily private, capital and the setting up of joint enterprises with the participation of local and foreign capital, mainly in the extracting and manufacturing industries, come to the forefront in the economy. Monopolists try to turn the newly free states into industrial-agrarian appendages of world capitalist production. Imperialism also brings its influence to bear on production in the developing countries through the policy of prices on the world capitalist market (see World Market, Capitalist) through the reduction of demand for manufactured products and the setting of import quotas and high customs tariffs. Foreign monopoly capital is the most important weapon for subordinating many developing countries to imperialist exploitation. The export of capital to these countries has increased as the export of state capital has assumed prime importance in the form of “aid” and loans provided on specific conditions dictated by imperialism. Imperialist states try to draw the developing countries into economic and military blocs, subjecting them to “collective” colonialism. They impose inequitable agreements, fan national and religious animosity, implant reactionary, puppet regimes, organise coups d’etat, disseminate anti- 248 communist “theories”, slander the socialist countries, resort to direct military intervention, etc. Yet, the countries that have freed themselves from colonial domination are trying to consolidate their independence, speed up their economic, technical and cultural development, and are coming out for establishing a new international economic order.