11/18/2011 Made up of governmental institutions, political parties, and organizations that rulers and people use to wield power Each nation’s political culture reflects the importance of the government and legal system. Issues for foreign investors include the governing party’s view on sovereignty, political risk, taxes, equity dilution, and expropriation. College Writing and Research Chris Schrage 5-2 Totalitarianism Democracy Constitutional guarantees are denied Four majors forms: Representative Democracy Freedoms • • • • • • • Expression, opinion, organization Media Regular elections with universal suffrage Limited terms for elected representatives Fair and independent court system Non political bureaucracy, police force and armed service Relatively free access to information Communist Theocratic • Based on religious principles Tribal • Mostly African Right wing 3 5-4 Political impact on Economic Transformation Deregulation The Napoleonic Code of 1804 drew Removal of legal restrictions to free markets on the Roman legal system and is the basis for continental European law today. Code law is also known as civil law. U.S. law is rooted in English common law. Privatization Transfer of state ownership of property into private hands. Creation of legal systems to protect property rights 5-5 5-6 1 11/18/2011 Civil law country Common law country Disputes are decided by reliance on the authority of past judicial decisions Companies are legally incorporated by state authority Code law is used in few areas; the U.S. Uniform Commercial Code Legal system in many Middle Eastern countries Legal system reflects the Sharia—a comprehensive code governing structural concepts and principles of the Roman Empire Companies are formed by contract between two or more parties who are fully liable for the actions of the company Muslim conduct in all areas of life, including business Koran—holy book Hadith Based on life, sayings, and practices of Muhammad Identifies forbidden practices, “haram” 5-7 5-8 Leads to exploitation or abuse? Remit large amounts of money to families left at home In Honduras about 1/5 of the capital inflow is from Why is the undocumented workers have to live in fear and are arrested? Why not the corporate executives that knowingly employ them? Communities dependent on immigrants Marshalltown caught in immigation squeeze Waterloo Cedar Falls Courier September 3, 2007 Community rejuvenated by the influx of immigrants Completed jobs no one else would perform but needed done Meat packing Iowa Center for Immigration Leadership and Integration Tries to provide understanding of economic conditions that brought immigrants to Marshalltown. Families have now been established New cultural dimensions to the community Economic vibrance returning family members working outside of Honduras More money flows into the developing world through remittances from immigrants than all the foreign aid by the West. What are basic human rights????? Universal Declaration of Human Rights 1948 adopted by UN 30 articles United States Bill of Rights http://www.un.org/rights/ 2 11/18/2011 Today, poverty prevails as the gravest human rights challenge in the world. Combating poverty, deprivation and exclusion is not a matter of charity, and it does not depend on how rich a country is. By tackling poverty as a matter of human rights obligation, the world will have a better chance of abolishing this scourge in our lifetime... Poverty eradication is an achievable goal. And poverty affects all human rights: for example, low income can prevent people from accessing education -- an “economic and social” right -- which in turn inhibits their participation in public life -- a “civil and political” right -- and their ability to influence policies affecting them. Louise Arbour United Nations High Commissioner for Human Rights International Observation December 10th Myramar (Burma) Since 1950 Brick Factories in Shanxi Province UN declaration: Digital literacy Access and opportunity Do the “right” thing. Thomas Donaldson’s Three Principles: Linguistic diversity on the Internet Respect for core human values (human rights), Ability to promote cultural products on which determine the absolute moral threshold for all business activities. Respect for local tradition. The belief that context matters when deciding what is right and what is wrong. the Internet Is that the only aspect of cultural rights? 3