AS Unit F762 - Managing Change in Human Environments
Institution
OCR
Explanations of factors influencing the loss of sovereignty and territorial integrity - transnational corporations, supra-national institutions, current political boundaries, and political dominance of ethnic groups
AS Unit F762 - Managing Change in Human Environments
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Powers and Borders SG2
What are the Contemporary Challenges to Sovereign State Authority?
Case Study: The Basques
Factors Influencing the Loss of Sovereignty and Loss of Territorial Integrity:
Transnational Corporations
Supranational Institutions (such as regional trading blocs)
Current Political Boundaries
Political Dominance of Ethnic Groups
1) Transnational Corporations
Transnational Corporation (TNC) – a large business organisation which operates and has ownership of assets
in more than one country.
Of the largest 100 economies in the world, 51 are TNCs and only 49 are countries.
TNCs have great economic and financial power in the host countries, especially LIDCs. For example, LIDCs rely
on TNCs to exploit their oil resource and bring much wealth to the country. However, TNCs also hold power
over the government of the host country who fear losing their investment.
Example of Shell (Royal Dutch Shell):
Oil produces 90% of Nigeria’s exports and 80% of government revenue.
The economy and government have dependency to Shell
- Shell is the biggest oil TNC in the country producing ½ the countries total output.
- Shell Nigeria is a joint venture with the state government with the rights to oil discovery and
drilling.
- For every barrel of oil sold by Shell Nigeria, the Nigerian government receives taxes and royalties.
The Nigerian government is keen to make decisions which suit Shell so that it does not pull out of the
country.
What environmental damage did Shell cause to Who was Ken Saro-Wiwa and what is MOSOP?
Ogoniland?
> 4000 oil spills in the Niger Delta since 1960s Saro-Wiwa was the president of
Oil spills and pollution from pipelines and MOSOP.
pumping stations MOSOP (Movement of the Survival of
Farms polluted – unable to grow crops and eat Ogoni People) is a protest movement
River polluted – contaminated water source formed by the Ogoni region to fight
Gas flaring – smoke = respiratory problems the oil industry.
How is the example of Shell operating in
What happened to Ken Saro-Wiwa and 8 other activists
Nigeria an example of state sovereignty being
in 1994?
affected?
Saro-Wiwa and the 8 other activists were Shell has control over the government
arrested on ‘trumped up charges’ and hung. – producing ½ of Nigeria’s total output.
Their bodies were dissolved in acid. Nigeria can’t make decisions without
John Major called it ‘judicial murder’ thinking about Shell.
The government was worried the protestors The government should have complete
would cause Shell to pull out of the country, control over their decisions, but they
resulting in Nigeria losing investment and their don’t due to the fear of Shell
access to the oil supply
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