ECONOMIC COLONIZATION  IN INTERNATIONAL TRADE LAW

 The idea of state capture is generally associated with economies in transition, however it is possible to reach a different perspective that the concept may apply to various other kinds of countries which are in different stages of development.Animus Dominandi meaning lust for power or control is the supreme driving force behind the formation of colonies- a phenomenon dating back to time immemorial.In beginning this new decade, the world has travelled a journey starting from colonisation to globalisation today,yet many aspects of colonisation still hold root in various veil and disguise. Economic colonization actually denotes those policies, tactics, sanctions , propaganda or practices using which powerful nation tries to exert influence or  control a less developed nation, usually trying to exploit it economically by draining its resources.

Natural resource abundance and  international free trade policy bears a positive effect  as well as adverse  effect on economic growth and human  resource development of a nation.This is  a critical review which seeks to examine the true nature of the link between free trade and anti-imperialism that poses a challenge to  the conventional approach  to which indicates free trade means absolute eradication of colonies rathrer how day by day some countries are furthering more and more towards the powerful clutches of colonizing control by other countries.

It is necessary the governments like our country examine what the economic impact of colonization can have over a country like trade sanctions , educational problems like braindraining a country heavily impacting nation’s human resource and what role does trade play in modern kind of colonialism that exist today.It is also imperative on their part to understand various principles like laissez faire and pacta sunt servanda etc., how far are they actually realized and examining the how international trade law principles and free trade ideology are literally keeping our worlds together.

After decolonization of India from the clutches of the British in1945, it kinde of appeared that the entire world has gained freedom from foreign domination.In the 1990s, after the LPG policy was adopted in India, the hard earned blood transacted concept of Swaraj somewhat seemed to sink deep into the abysmal pits of dismay.The every nation of the world  somehow agreed upon being susceptible to the same threat foreign domination -to gain freedom from which they toiled hard.In this era of modernity, nomatter  how much we pretend to be complete sovereigns yet its far from truth that no country is colonized or acquired by someother in one form or the other.

This new emerging  form of colonialism is economic control of one nation over other to such an extent that it gains as much power as to play a decisive role and control every possible affair of the other nation.This is a form of neo-colonialism which is agreed , accepted and obediently participated by almost all nations without actually realising the true nature. The term neocolonialism was first used after World War II to refer to  the control of less-developed countries by developed countries through indirect means and continuing dependence of former colonies on foreign countries. 

An eminent author Brahma Chellaney condemned one of such colonizing minded nation,its strategies and propoganda ie.,China.One of the recent instances is the debt trap diplomacy of China to acquire economic control over Pakistan and Sri lanka by economically exploiting them so such an extent that they can eventually assume total economic control over the nations. Both these countries had huge international debt.China comes to aid to pay off old debts and provided softloan to these countries.Today, these countries are trapped in such a viscious cycle of debt that they have been compelled to give away their strategic asset to China.style outpost for its navy next to the port to pocket 91% of its revenue. To the author, these port transfers were as cruel as a farmer giving away his daughter to a moneylender.

Not only these, China’s economic imperialism also extends to gaining control of 1,158 sq. kilometers of the Pamir mountains and giving right to mine gold silver and mineral ores to chinese company in order to give debt relief to Tajikistan.Also African countries like Angola, Cameroon, Congo, Ethiopia, Kenya, Mozambique and Zambia and Kyrgyzstan  were wanting suspension of their debt repayments to Beijing during the coronavirus pandemic.However, it would not be a surprise if there is a sudden uprising against such debt trap diplomacy  of China.China is happy to lend until nations face a debt crisis because of the greater leverage it gives Beijing.Typically, China starts as an economic partner of another country, only to gradually become its economic master.Another notable instance is that of the Hambantota port of Srilanka in 2017.Sri lanka had to sign away this port along with 6000 hectares of land on a 99 year lease to China.Pakistan has given China exclusive rights plus tax holiday to run Gwadar port for the next 40 years. China plans to build a Djibouti at the location. 

Based on a research of Harvard Business Review published in February 2020, it was found that China has been unreportedly lending off the records which has created hidden debt problem which makes the scenario such that the world would never really be able to ascertain how much debt is owed by which country to China and in what condition.According to the research, China has lent 1.5 trillion to more than 150 countriees making it world’s largest creditor climbing above World Bank and IMF and all OECDs.The list of china’s creditors also include powerful countries like Japan South Korea as well as India, pushing the world towards bipolarism however, needless to mention that African countries are the worst hit by this debt trap diplomacy , wrapping in nations like Djibouti, Niger and The Republic of the Congo  whose external loan debt to China surpasses 25 percent of their GDP.

Along with this China sent Covid Vaccines to other countries during pandemic due to which instead of being cured of the viral infection many people all over the world  rather lost lives.Recently in March 2021 when the virus is completely under check,China  has been regularly using coronavirus restrictions as a way to threaten journalists and block access to media to prevent recent shrewd Chinese propaganda getting revealed.

China stopped medical supplies to india since April of this year.Now the pertinent question which comes to mind is why such countries like China are able to economically exploit other countries instead of our developed international trade law regulations and in existence of UNCITRAL , FET clauses in agreements and globally accepted customary international trade law principles like pacta sunt servanda which are considered jus cogens and what possible remedies can be adopted to heal such situations?

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

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The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at adv.aishwaryasandeep@gmail.com

We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge

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