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Human Systems and Behavior

The FDI Plantation: How Foreign Investment Became the New Colonialism – and How to Escape It

Foreign Direct Investment (FDI) is often celebrated as a shortcut to development. But for many developing countries, the reality resembles an old colonial plantation: foreign‑owned enclaves extract cheap labor, land, and tax breaks, while profits flow back to wealthy home countries. Local economies receive low‑wage jobs but little industrial deepening.

The FDI Plantation – Part 4: The Path Forward – Rejecting the Plantation Model

The previous three parts have traced a grim continuity: from colonial plantations to Mexico’s IMMEX program to the special economic zones of Vietnam, Bangladesh, Ethiopia, and beyond. In each case, foreign capital gains access to cheap labour, tax breaks, and unrestricted profit repatriation, while the host country receives low‑wage jobs but little industrial deepening. This is not development; it is extraction.