A politically unstable country with an economy dependent upon the export of a limited-resource product, such as bananas or minerals, is often described by this term. Characterized by extreme social inequality and a small, wealthy elite controlling the means of production, the political system is frequently corrupt and manipulated for private gain. Honduras, in the early 20th century, serves as a historical example, where American fruit companies exerted significant influence over the nation’s political and economic affairs.
The concept is significant within the scope of advanced placement world history because it illustrates the impact of economic imperialism and neocolonialism on developing nations. It highlights how external powers can exploit resources and influence political structures, leading to long-term instability and hindering independent development. Understanding this concept helps explain patterns of global inequality and the legacy of colonialism in the modern world.
