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Date: 10-8-2020
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Economic Colonies Versus Economic colonisers – the Struggle For Iso Economics - PART 3 ISOEconomics / Isokratic Econommics

With the near extinguishments of imperial and political colonialism, the new phenomenon talked about more and more often is that of the economic colonialism. Advanced economies of the developed and developing world gain full or partial control of the undeveloped or third world economies. The paradox is that the Economic colonisation of the third world countries by the developed economies, is the only survival path and a sure way of such countries moving through to the developing and later the developed economy stage with a lot of luck.

Even more paradoxical, is the fact that the advanced economic countries, and multi-national companies, already wield the power. They have the power and seek to impose rules and conditions, through the present, inefficient close shop regulated bodies, that protect their global interests. These unbalanced rules, conditions and regulative bodies, in time will be the cause for the rise of the colonised economies, to the ranks of their competitors and colonisers.

Whether it is a few decades or a few hundred years from now, or even a thousand years from now, the economic empires, as we know them today, will inevitably one day either collapse, or lose their might. Mimicking the economic empires, the economic colonies cause will grow, as they advanced and spread their economic activities. The economic colonies through multi-national companies and political might, will gradually move their purchasing powers, from country to country in search of cheaper labour and material.

As colonies become developed economies themselves, the number of economic colonies will, be diminishing. Former economic colonies become developed economies. The demand for economic colonies will increase and the developed economies’ search for cheap labour and material will increase, and thus the number of economies with low-cost labour and material will start diminishing.

As the economic colonies diminish, the laws of supply and demand will pull them up, closer and closer to the developed economies. Closer to the centre as some prefer to call it. The laws of supply and demand will bring some reverse colonisation too. In some ways we are already witnessing this reverse colonisation. Asiatic economic colonies begin to set up production within some of the advanced economic colonisers. Japanese car manufacturers set up manufacturing plants, in undeveloped or assisted zones within the borders of advanced economies or economic colonisers such as the EEC and the USA.

Through these economic activities and the resulting revenues, economic colonies such as Greece, Bulgaria, some Far East countries, Cyprus, Hong Kong and so on, have made investments in sectors of other countries, which resulted in some of these countries becoming developing economies. Their labour cost rose, forcing the advanced economies to shift their production to other low-cost countries such as Rumania, Morocco, Syria, Turkey, Russia, Thailand, The Philippines, and China.

At this time we see the ex-colonies like Cyprus and Greece in their search for low cost labour, mimicking the economic colonisers. They are shifting their own production to the new low labour cost markets such as Rumania, Syria, Bulgaria, and Russia. Where Cyprus and Greece even as recent as 20 years ago were weak economic colonies offering low cost labour, they have now begun to move into the coloniser status in some effect. The same is happening in the Asiatic markets and all over the globe.

For example, Asiatic firms shift their production from the low-cost Asiatic countries and their own markets, (which used to be a source of low cost production), to the what used to be high cost economies like Britain, Spain and Germany. We have witnessed the biggest investments in the UK car manufacturing Industry to be from Japanese companies. Something, which was unthinkable, only a few decays ago, is happening right now. Are we witnessing a form of reverse colonisation?
Japanese companies, such as Nissan, Honda, Toyota now own half, the car producing plants in Britain; (if not more). Are we witnessing a classic example of an economic coloniser becoming an economic colony? The higher the cost is pushed in an advanced economy, the earlier the system will collapse, as the citizens take their purchasing powers to cheaper countries. In turn sooner or later other countries may take over the production means of such advanced economies with collapsed industries.
Economic colonisers will try to maintain their advantage, by directly and indirectly influencing events; Events which ensure that economic colonies remain just that. Eventually, however, the low labour cost market will catch up with the high labour cost of the advanced economic powers. Through advanced technologies of their own, or through the wealth of their natural resources, economic colonies will develop their economies and countries’ infrastructures.

Some colonies after they have gained their political independence, not only caught up with the empire, but also even surpassed their former colonisers and become as powerful, and even more powerful in some cases. For example, America only a couple of hundred years ago was a British colony and a wider European economic/trade colony. Now it is the world’s super-power, on both the economic and the military fronts, making Britain and the European countries look like midgets in the pot of global economies. The colonised has become the coloniser. Who will be next? Even more of a wise question should be. Why should there be a next coloniser?

European economies get the shivers down their spines, every time the American economy sneezes. Of course that is why the Europeans came up with the idea of a common market the EEC. Because they have been pushed aside. Because they have been pushed out of the centre and into the periphery. Because their biggest colony has become their coloniser; their economic master who calls the shots. And rightly so, the Europeans want to avert total take over by the Americans in the long term.

Then there are the Brazilian and Mexican economies, which became bigger than their empire masters, the Spanish. Another ex-British Empire colony (now India and Pakistan) though not economic colonisers as yet, they have become members of the family of nuclear powers. The examples are endless if we look around us.
Read Next The colonisation of single industries within a coloniser by an economic colony

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