products. Due to their high prices, export of local goods reduces. As a result, local industries and producers are forced to go out of business. Neocolonialism Neocolonialism is where a state is "in theory, independent and has all the outward trappings of international sovereignty. In reality its economic system and thus its political policy is directed from outside". The political and economic affairs of a state under neocolonialism, is directly controlled by external powers and nations from the Global North, who offer aid or assistance to countries in the Global South or developing countries. Neocolonialism is the new face of colonialism, which is made possible by foreign aid. Donor countries offer foreign aid to poor countries while bargaining for economic influence of the poor or receiving countries, and policy standards that allow donor countries to control economic systems of poor countries, for the benefit of the donor countries. Foreign aid creates a system of dependency where developing or poor countries become heavily dependent on western or developed countries for economic growth and development. As less developed countries become dependent on developed countries, the poor countries are easily exploited by the developed countries such that the developed world are able to directly control the economic activities of poor countries. Aid dependency Aid dependence is defined as the "situation in which a country cannot perform many of the core functions of government, such as operations and maintenance, or the delivery of basic public services, without foreign aid funding and expertise". Aid has made many African countries and other poor regions incapable of achieving economic growth and development without foreign assistance. Most African economies have become dependent on aid and this is because foreign aid has become a significant norm of systems of international relations between high and low income countries across the globe. Foreign aid makes African countries dependent on aid because it is regarded by policy makers as regular income, thus they do not have any incentive to make policies and decisions that will enable their countries to independently finance their economic growth and development. Additionally, aid does not incentivize the government to tax citizens, due to the constant inflow of foreign aid, and as a result, the citizens do not have any obligation to demand the provision of goods and services geared towards development. Econometric studies Many econometric studies in recent years have supported the view that development aid has