The term colonialism is often associated with imperialism; however, each has their distinct definitions. Imperialism operates from the center, is a state policy and is developed for ideological and financial reasons. Colonialism is merely the development for settlement or commercial intentions. Imperialism involves the practice, theory, and attitudes of a dominating metropolitan center ruling a distant territory, while colonialism refers to the implanting of settlements.
Imperialism includes some form of colonialism, but colonialism itself does not automatically imply imperialism, as colonialism lacks focus. European industrializing nations engaged in colonizing, influencing and annexing other parts of the world. Imperialists saw the economic benefits in the production of materials. Resources were made available by imperialism, and the world's economy grew significantly and became much more interconnected, which made the imperial powers very rich and prosperous.