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The Neocolonial Dependence Model

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NECOLONIAL DEPENDENCE MODEL

Malaysia is a small open economy which has gained a lot of from its exports to major countries and foreign direct investment. However, most of the economy is dependent upon its exports and there is persistent problem of poverty, income equality etc. Before 1970’s this was a huge issue as most of the corporate world was owned by foreigners and most of the companies were being handled by them. According to neocolonial dependence model underdevelopment and poverty is due to exploitative policies and interference of developed world. Most the ruling groups are dependent on foreign investment. This problem came to the surface after 1970’s and Malaysia introduced its new economic policy which focused on providing the locals with ownership of corporate world and MNC’s. It also focused on establishing public companies and transferring control to government as the main objective was to provide Malays with greater integration. The result of this was a reduction of poverty and more equal distribution of wealth and income.
THE FALSE PARADIGM MODEL
Malaysia’s foreign policy focuses on sovereign integrity and non interference in each other’s internal affairs which is needed. According to this model the developing countries remain undeveloped as they seek advice from western agencies and international donors who provide incorrect model of development and misguide them. However, keeping in mind this model Malaysia has its own Malaysian economic association which

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