8.2. Actors in World Politics (2016)Apunte Inglés
Transnational Companies and Non-State Actors
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Theory of IR 2016
8.3. Transnational Companies
They are understood as a company that has branches acting outside their home country.
Nowadays, TNCs are present in more than 147 countries. This is why they should be considered as fundamental actors.
II. Erosion of the power of the state and its sovereignty: States are loosing control over financial flows, foreign trade and taxation. Other actors, such as Transnational Companies, are gaining more importance in the international scene. Loss of sovereignty by: • Difficulty to regulate international transactions. Transnational companies exert influence to states so they impose legislation that benefits them.
• Use of competitive advantage by TNCs: Delocalisation according to taxation levels and beneficial policies. It is beneficial for the TNCs, but not for the state (the company doesn’t give you taxation).
• There are clashes between governments over regulations: This goes very much against the traditional ideas of the state-centric approach where the state is the one deciding the regulation according to its own interests. With the appearance of TNCs, they have more influence over regulation than the State has.
8.4. Non-Governamental Actors According to the United Nations, the definition of an NGO: • It should support the work of the UN • It should be a representative body, with headquarters.
• It cannot be profit-making.
• It cannot use or advocate violence.
• It must respect non-interference in internal affairs: Cannot have any political affiliation.
Marta Busquets Theory of IR 2016 • It cannot be established by an intergovernmental agreement: They have to be independent of that intergovernmental agreement.
Why are NGOs well suited to deal with Human Rights, development, aid and climate change? A. They are not so much bound by the interests of the state and TNCs, so they are freer to operate.
B. Foster initiatives taken over by states and IOGs. They are the starters of these initiatives.
C. They have the capacity to mobilise the popular opinion and advocate for solutions on behalf of this society.
D. There is an increasing number of instances where NGOs are actually involved in the international legislation: Co-participative in international actions plan.
E. However, they still remain outside decision-taking bodies such as the IMF, WB, WTO, etc.
They are present in certain organisations that, per se, don’t have much power of decision.