"Imperialism is itself a phase of capitalist development in which Western European capitalist countries, the U.S.A., and Japan established political, economic, military, and cultural hegemony over other parts of the world which were initially at a lower level and therefore could not resist domination. Imperialism was in effect the extended capitalist system, which for many years embraced the whole world—one part being the exploiters and the other the exploited, one part being dominated and the other acting as overlords, one part making policy and the other being dependent."