ABSTRACT
This chapter discusses the mechanism of neo-imperalism and the economic impact of monetary and commercial institutions in Africa. In summing up this discussion of the close interrelationship of the now independent African countries with the erstwhile metropolitan countries, two things need to be noted. The first is the development of their terms of trade, influenced as these were by the special relationships existing, and balance of payments, and, more especially, the changes in their reserves held in the metropolitan centre. The second criterion is the development of their balance of payments. In this respect, the British territories continuously increased their reserves in the metropolitan country. This meant that the meant that the subsidies and loans granted to the dependent areas could not be effectively transferred. The mechanism of what one might call welfare- or neo-imperialism seems to have artificially restricted the development of colonial areas by preventing viable infant industries from being established.
