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9 Q2UCSP Q2 Week 1 M7 STATE AND NON STATE INSTITUTIONS

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UNDERSTANDING
CULTURE SOCIETY
AND POLITICS
SECOND QUARTER
MODULE 7
STATE AND NON-STATE
INSTITUTIONS

1
11

UNDERSTANDING
CULTURE SOCIETY
AND POLITICS
SECOND QUARTER
MODULE 7
STATE AND NON-STATE
INSTITUTIONS

2
Republic of the Philippines
Department of Education
REGION VII-CENTRAL VISAYAS
SCHOOLS DIVISION OF SIQUIJOR
------------------------------------------------------------------------------------------------------------------------------------------------------
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This material has been developed through the initiative of the Curriculum Implementation
Division (CID) of the Department of education- Siquijor Division.

It can be reproduced for education purposes and the source must be clearly acknowledged.
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Borrowed materials (i.e. songs, stories, poems, picture, photos, brand names,
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Every effort has been exerted to locate and seek permission to use these materials from
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ownership over them.
Published by the Department of Education
OIC- Schools Division Superintendent: Dr. Neri C. Ojastro
Assistant Schools Division Superintendent: Dr. Edmark Ian L. Cabio

Development Team of the Learning Module

Writer: Gwenda M. Alforque

Evaluators: Pelagio R. Caet, Marina Gilsa L. Castillon, Roxanne Mae L. Pal-ing, Rosalie C. Castillon,
Jerson R. Tumapon, Caroline D. Cayongcong, Cecil C. Saplot, Sheila Mae Juliana O. Villas

Management Team: Dr. Marlou S. Maglinao


CID- Chief

Arlene M. Buhian
Printed by: ____________________
Education Program Supervisor (Araling Panlipunan)
Department of Education-Region VII,Central Visayas, Division of Siquijor
Edesa T. Calvadores
Education Program Supervisor (LRMS)

Office address: Larena,Siquijor


Telephone No.: (035) 377-2034-2038
E-mail Address: deped.siquijor@deped.gov.ph

3
What I need to know
Society consists of social structure and social institutions that are
governed by norms and values. Each individual in a society has specific roles
and functions that are meant to achieve equilibrium. For society to continue
to exist and develop, state and non-state institutions co-exist. The practice of
human rights is considered a privilege of every individual in human society,
and is ideally and believed to be distributed equally.
The creation of state and non-state institutions became more relevant
in the advent of globalization and urbanization, as these two institutions
presented the capacity to create diverse impact ranging from social, cultural,
economic, and up to the political.
At the end of this module, you shall be able:
➢ Explain the forms and functions of state and non-state institutions

What I know
Pre-test
Directions: Read each item carefully. Write your answer in your notebook.

I. Enumeration
List the items asked in each number.
1. 4 examples of non-state institutions
2. 2 example of state institutions
3. 3 kinds of financial institutions
4. 3 roles of trade unions
5. 2 categories of NGO’s
6. 2 elements of national security

What’s in
Have you heard of your parents talking about going to the bank to save,
withdraw or loan some amount of money? How do you think does this bank
affect you as an individual or your family?

4
What’s new
Do you think state and non-state institutions affect the lives of people
in the society?

What is it
STATE AND NON-STATE INSTITUTIONS
How can you differentiate state and non-state institutions? What are
their functions in human society? Weber defines state as “a human
community that claims the monopoly of the legitimate use of physical force
within a given territory” (Shandra, 2007). This definition reflects the inevitable
existence of the government, civil service, and police in every society. State
Institutions Supporting Constitutional Democracy Chapter 9, defined state
institutions as independent subject only to the Constitution and the law, and
they must be impartial and must exercise their powers and perform their
functions without fear, favour or prejudice. These institutions are accountable
to the National Assembly and must report on their activities and the
performance of their functions to the Assembly. No person or organ of state
may interfere with the functioning of these institutions. Other branches of
state, through legislative and other measures, must assist and protect these
institutions to ensure the independence, impartiality, dignity and
effectiveness of these institutions. Examples of state institutions are
government hospitals, public schools, the Supreme Court and other
government funded institutions. On the other hand, non-state institutions are
not related to the components of the state. Although states possess the official
political power in a given territory, the capacity of nonstate institutions to
affect the political and economic trajectory of a society cannot be discounted.
These nonstate institutions include the following: banks and
corporations, cooperatives and trade unions, transnational advocacy groups,
and development agencies and international l organizations. These nonstate
institutions are equally capable of influencing policy formation and
implementation.

5
Banks and Corporation

There are several financial institutions that aid people in terms of


money and investments. In these institutions, everything is associated,
related, and linked to money and financial transactions. They cater to
different types of people and organizations. Financial institutions may be
categorized into major forms such as commercial banks, investment banks,
insurance companies, brokerages, and corporations. See table 1.

Financial Institution Description


1. Commercial banks • Financial deposit with security and
convenience which could be in the form of
credit card, debit card, and check
• Provide business, individual, and personal
loans, enabling commercial banks to earn
interest
• Serve as payment agents within and outside
the country through wire transfer
• Subjected to more regulations
2. Investment banks • Financial intermediaries that perform a
variety of services for business and some
governments
• Issue securities to the investing public
• Make markets, facilitate mergers, and other
corporate reorganizations
• Act as a broker for institutional clients
• Under the supervision of regulatory bodies
such as the Securities and Exchange
Commission, FINRA, and the US Treasury
• Subjected to fewer regulations
3. Insurance • Aid individuals and companies in terms of
companies risk management and wealth preservation
• Capable of earning profit and paying claims,
through their large number of insurances
4. Brokerages • Intermediaries in the transaction between
buyers and sellers for the purpose of security
• Commission-based earnings
5. Investment • Help individuals invest funds or money with
companies or other investors to manage portfolios of
corporations security
• Purchase securities indirectly through a
package product such as a mutual fund

Table 1 provides the summary points for each type of financial


institution together with its descriptions and major functions. In general,
financial institutions cater to people and firms, possibly generating a
significant impact to society. The two most well-known financial institutions
that are actively shaping the socioeconomic development of the Philippines

6
are the World Bank and the Asian Development Bank. They have been
providing financial aid to the Philippine government and various non-
governmental organizations (NGOs) to facilitate their developmental
objectives.
A corporation is a company or group of people authorized to act as a
single entity (legally as a person) and recognized as such in law. Early
incorporated entities were established by charter (i.e. by an ad hoc act granted
by monarch or passes by a parliament or legislature). Corporation is a legal
entity created under state law and is designed to generate a jurisdiction where
they are chartered into two kinds:
1) Whether or not they can issue stock
2) Whether or not they are for profit

Where the local law distinguishes corporations by ability to issue stock,


corporations allowed to do so are referred to as “stock corporations”.
Ownership of the corporation is through stock, and owners of stock are
referred to as “stockholders”. Corporations not allowed to issue stock are
referred to as “non-stock” corporations. Considered the owners of the
corporation are those who have obtained membership in the corporation, and
are referred to as “members” of the corporation.
Corporations chartered in regions where they are distinguished by
whether they are allowed to be for profit or not are referred to as “for profit”
or “not-for-profit” corporations, respectively.
There is some overlap between stock/non-stock and for profit/not-for-
profit corporations in that not-for-profit corporations are always a non-stock
as well. Profit corporation is almost always a stock corporation, but some for
profit corporations may choose to be non-stock.
Registered corporations have legal personality and are owned by
shareholders whose liability is limited to their investment. Shareholders do
not typically actively manage a corporation; shareholders instead elect or
appoint a board of directors to control the corporation in fiduciary capacity.

What I have learned


Directions: Answer the following questions. Write your answers on your
notebook.
1. How do insurance companies differ from investment companies?
2. How do banks interact with the state?
3. What is the difference between nonstate from a state institution?

Trade unions

Trade unions and cooperatives have the primary role of promoting labor
welfare and good industrial relations.

7
Trade unions and cooperatives are organizations comprising workers
and laborers with common goals, purposes, and interests. They mostly
concern employment relations, decency, and welfare.
Trade unions is an organization whose membership consists of
workers and union leaders, united to protect and promote their common
interests. A trade union may be:
a) A company union that represents interests of only one company and
may not have a connection with other unions. Also called house
union, a company union is often a bogus one and is generally illegal.
b) A general union that represents workers from several companies in
the same industry, also called an industrial union.
c) A craft union that represents skilled workers in a particular field
such as carpentry or welding.

A cooperative is a legal entity owned and democratically controlled by


its members. Members often have a close association with the enterprise as
producers or consumers of its products or services, or as its employees.
Cooperatives often share their earnings with the membership as
dividends, which are divided among the members according to their
participation in the enterprise, such as patronage, instead of according to the
value of their capital shareholdings.
Cooperatives play a critical role in building community wealth for
several key reasons:
1) They often provide quality goods and services to areas that have been
shunned by traditional business because they are deemed less profitable
markets.
2) They typically invest in local communities. For example, many rural
cooperative utilities finance community infrastructure projects, make
equity investments in local businesses, make grants to neighborhood
nonprofits, and sponsor a range of community-focused events.
3) Since most cooperative members are local residents, business profits
remain and circulate within the community.
4) Cooperative membership builds social networks and strengthens social
cohesion, which are essential elements of strong, healthy communities, by
connecting diverse community residents.
5) Purchasing cooperatives, in particular, help small, local business remain
competitive within the markets dominated by large, national retailers.
6) Workers cooperatives, in particular, create quality, empowering jobs for
community members.
7) Cooperatives are typically based on the cooperative values of “self-help,
self-responsibility, democracy and equality, equity and solidarity” and the
seven cooperative principles:
✓ Voluntary and open membership
✓ Democratic member control
✓ Economic participation by members
✓ Autonomy and independence
✓ Education, training and information
✓ Cooperation among cooperatives
✓ Concern for community

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Cooperatives are dedicated to the values of openness, social
responsibility and caring for others. Such legal entities have a range of social
characteristics. Membership is open. Economic benefits are distributed
equally to members level of participation in the capital invested. Cooperatives
may be classified as either worker, consumer, producer, purchasing or
housing cooperatives.

Table 2 presents the major societal roles of trade unions and


cooperatives.
Role Description
1. Political ➢ Can be powerful and influential in creating political
impact
➢ Can be in conflict with other parties due to large
number of members with common interests that are
different from other union’s interest
2. Market ➢ Reactive because of pre-occupied economic aims
that concern employment salaries, wages, and
inflation rates and rights (macro and micro
economic policies)
3. Regulatory ➢ Influential in determining and improving job
qualities and standards to regulate employment
functions
4. Democratizing ➢ Promote rights to economic democracy and
participation to industrial democracy
5. Service ➢ Promote the welfare of members through various
initiatives and partnerships with different
organizations that provide service to them
6. Enhancement ➢ Concerned for potential development and member’s
improvement
7. Welfare ➢ Multifunctional institutions, conforming more to the
idea of the trade union as being part of a movement

Transnational Advocacy Groups

Societal issues and problems are not concentrated in a certain society


or within a specific area only. It may also be extended across borders and
countries. Most of these issues have something to do with international
policies that are not responsive to contemporary issues. Keck and Sikkink
(1998) argue that international law-making undergoes changes and have been
more concerned of public issues. These changes were brought about by the
rapid growth of transnational advocacy networks that constantly influence
the policy making in a country by sponsoring advocacy campaigns publicizing
social issues.
The pressure that transnational advocacy groups (TAGs) create in state
institutions, and at times to the general public, creates a negative image.
Evans (2008) argue that “transnational networks and corporations are
considered as bad guys whereas the non-government organizations are the
good guys.” This is despite the fact that NGOs are highly interrelated with
TAGs. Transnational actors could be categorized into local social movements,

9
foundations, media, religious organizations, scholars, international agencies,
and regional intergovernmental organizations (Keck and Sikkink,1998).
What do you think are the issues being catered by TAGs? Human rights,
consumers’ rights, women’s rights, international peace, and environmental
issues are mostly the concerns of these groups. Transnational networks can be
very influential because of their broad scope and wide connections. These
networks have specific roles to partake that can be achieved through effective
measures, case-specific methods, and activities. The very essence of
transitional groups is the formation and development of their advocacies and
campaigns that represent certain principled causes, ideas, values and beliefs.
TAGs serve as international catalysts for change, aiming to achieve
international changes toward policies and practices.

Who participates in transnational advocacy groups?

Who participates in transnational advocacy networks? There is no


single list, but the major actors often include:
1. National and international nongovernmental organizations
2. Local social movements
3. Foundations
4. The media
5. Religious organizations, trade unions and consumer organizations
6. Intellectuals and scholars
7. Agencies within international and regional intergovernmental
organizations
8. Parts of executive or parliamentary branches of governments

Development Agencies

Development agencies are organizations with specific aims and goals.


The common denominator among these organizations is the term
development. These agencies concentrate on the growth, progression, and
advancement of specific societal concerns, which can be infrastructure or
social institutions. Several sectors of the international community have issues
with development, as they believe that is laden with various social constructs
that revolve around postcolonial and hegemonic arguments.
For the purpose of this discussion, we will use the context of political
and economic development.
There are two major types of organizations that are considered as
development agencies international organizations and NGOs. What is the
difference between the two? Do these two have similarities?

International Organizations
An international organization is an organization with an international
membership, scope, or presence. Coppee (2011) stated that “one of the
important roles of international organizations is to translate agreed-upon
values into rights and obligations.” The central role of international
organizations is essentially to provide support assistance through organized
framework to international cooperation. This cooperation aims to be

10
developed across several institutions over time. The United Nations (UN) is a
premier example for this as it aims to

Achieve international cooperation in solving international problems of an


economic, social, cultural or humanitarian character, and in improving and
encouraging respect for human rights and for fundamental freedom for all
without distinction as to race, sex, language or religion (UN Charter).

International organizations concentrate mostly on the distribution of


equitable health and social development. Also, these organizations have
diverse networks that enable them to provide and exchange support across
different borders and localize their implementations of international policies.

There are two main types:


a. International Non-governmental Organizations (INGOs): non-
governmental organizations that operate internationally which include
non-profit organizations and worldwide companies such as the World
Organization of the Scout Movement, International Committee of the
Red Cross and Médecins Sans Frontières.
b. Intergovernmental organizations, also known as International
Governmental Organizations (IGOs): the type of organization most
closely associated with the term ‘international organization’, these are
organizations that are made up primarily of sovereign states (referred to as
member states).

The roles of international organizations are the following:


• Helping to set the international agenda,
• Mediating political bargaining,
• Providing place for political initiatives, and
• Acting as catalysts for coalition formation.

International organizations also define the salient issues and decide


which issues can be grouped together. IGOs often work closely with other
organizations, including NGOs (e.g., Greenpeace and Amnesty International),
which serve many of the same functions as their IGO counterparts and are
particularly useful for mobilizing public support, monitoring the effectiveness
of international aid, and providing information and expertise. Although many
of the thousands of NGOs direct their activities toward less developed
countries in Africa and Asia, some of which have authoritarian forms of
government most of these groups are based in developed states with pluralist
political systems. Only a small fraction of NGOs is international in scope,
though they have played an increasingly important roles in international
relations.

Nongovernment Organizations

Mostly working in limited territories, NGOs are often characterized by


their intensive collaboration with local stakeholders to improve their

11
beneficiaries’ conditions. Este (1992) defined NGOs as “those non-profit, often
voluntary, organizations that carry a broad range of social development
functions with and on behalf of people. The vast majority of these
organizations exists outside of government and, thus, their programs emanate
more from the expressed needs of people rather than from governments.”
Most NGOs aim to promote the practice of democracy among societies. These
organizations are independent, and they encourage participation from the
public. NGOs also aim to promote social change through their initiatives and
organizational methods.
Sometimes, NGOs seek partnership from some other institutions and
organizations to fund their projects and programs. Many NGOs have targeted
their efforts toward population groups that tend to be underserved by
governmental programs, including women, the aged, physically and mentally
disabled persons, the poor, and various social groups that have been
marginalized by virtue of race, religion, ethnicity, caste, and social class.

The World Bank (1989) provides a classic categorization of NGOs. See Table
3.

Category Description
Community Represent voices of people from different
associations communities, and act as bridge between members of
the communities and government
Policy advocacy Have local, national, and international levels of
groups participation; serve as catalysts for collective action
among poor persons in societies unaccustomed to
such behaviour
Service provider Have national and international levels of participation;
intermediaries serve remote areas and communities especially those
who fail to receive government programs; seek fund
through income generating activities which are mostly
non-profit
Contractors Involved in sponsored projects as consultants to
government agencies or to international financial
institutions that gain to profit at all
Cooperatives Protect and provide economic benefits to the needy;
are formed when a task cannot be done on the
individual level, such as obtaining credit (Cernea,
1988:13 – 4 Estes, 1992).

INTERRELATIONSHIP OF GOVERNMENT AND NONSTATE


INSTITUTIONS

Government plays a vital role in human society because it is expected


that its effort and initiatives must be aligned with public welfare and service.

12
Personal interest must be the least concern of the bureaucracy to ensure good
will and avoid societal dysfunction. Failure to perform bureaucratic functions
will lead to different forms of conflict among societies.
How does the government relate to nonstate institutions? Governments
are faced with varying demands from its constituents. When governments are
unable to address such demands and their related issues, nonstate
institutions create responses to facilitate government intervention through
policy campaigns or even actual delivery of demanded services and products.
Presently, nonstate institutions have been empowered, allowing them to have
greater and wider participation in different societies. This paved the way to a
broader relationship with government institutions.
The ideal relationship of government and nonstate institutions is one
that is on equal footing in addressing social issues. Given the roles that these
institutions take, will these two institutions really equal? Government rules
society according to existing norms and values in the form of laws, rights, and
policies. This reflects how powerful a government institution can be.
Accordingly, if nonstate institutions interfere with the governing body, two
possible things can happen. First, integration among these two institutions
may take place to achieve precise solution towards development. Second,
conflict and tension may also arise because one could exceed the other in
terms of societal control and influences.

➢ Economic Alliance

In a continuously globalizing world, interdependence among states in


procuring commodities and services is inevitable. The lack of supply in one
country can be addressed by another country that has a surplus of which. As
raw materials become scarcer and more difficult to procure, economic alliance
presents itself as one of the solutions. This aims to promote economic
improvement and, at the same time, resolve issues concerning closed
economies.
The main objective of economic alliance is to produce economic policies
that lead to economic diversity and growth. The ASEAN Economic Community
(AEC) is one of the more recent examples of economic alliances formed by
countries to promote economic stability and sustainability in their region. In
AEC, citizens of participating countries are expected to have easier
employment access within the region. The transfer of commodities will also
be made cheaper through lowered tariff to promote intensive economic
linkages and free flow of goods.

What I have learned so far?


Directions: Answer the following questions. Write your answers in your
notebook.
1. How does globalization foster economic alliance among states?
2. How can non-state institutions affect the decisions of the
government?

13
3. What are the different types of non-governmental organizations?

➢ National security

National security is “a state or condition where our most cherished


values and beliefs, our democratic way of life, our institutions of governance
and our unity, welfare and well-being as nation and people are permanently
protected and continuously enhanced” (DLSU, 2011). This definition is one of
the many definitions attributed to national security.

What are the elements of national security? See Table 4.

Element Description
1. Sociopolitical ➢ Regardless of social differences, societal harmony
stability must be achieved and maintained through the
effort of the government, public, and other
institutions.
2. Territorial ➢ This refers to the permanent inviolability of our
integrity national territory and its effective control by the
government and the state.
➢ Protection from illegal incursions and resource
exploitation must be maintained.
3. Economic ➢ Economic equality must prevail considering
solidarity public interest, dignity, and labor’s welfare.
4. Ecological ➢ This refers to the conservation of the environment
balance through initiatives and sustainable development.
5. Cultural ➢ This refers to the common set of norms and
cohesiveness values rooted from cultural ethics.
6. Moral-spiritual ➢ There should be national cooperation guided by
consensus common deeds, goals, and objectives
7. External peace ➢ Society must be free from threat, violence, war,
and hostility.

With the growing political clout of several countries, the concept of an


all sovereign state becomes threatened. This also poses risks on the
maintenance of national security.

➢ Disaster Mitigation and Risk Reduction

One of the areas where non-state institutions are actively involved in is


disaster response. There has been an observed increase in weather variability
that has caused climate-induced disasters in human population. This is often
associated to climate change. The United Nations Office for Disaster Risk
Reduction (UNISDR) argues that “there is no such thing as a ‘natural’ disaster,
only natural hazards”.

14
➢ Social Development

Social development is one of the goals of every society. Any society that
undergoes social development is expected to move upward or attain progress.
Social development entails productivity, better efficiency, accomplishment,
and innovations (Cleveland and Jacobs, 1999).
The pursuit of public health equity, or equal access to health systems,
is one of the primary foci of international organizations as the United Nations
Development Programme (UNDP) and World Health Organization. Human
rights and social justice are the focus of organizations such as Amnesty
International, Save the Children, and International Justice Mission. All of
these examples highlight the clamor for social development.
On one hand, the government continues to search for different ways to
achieve social development. On the other hand, nonstate institutions also
participate in promoting social development through their various initiatives
and advocacies relating to social welfare. Social development is a very long
process that requires proper strategic planning and operational planning.
This is not possible without the union of public, government, and other
institutions including non-state institutions that perform a great role not only
in social development but also in terms of social empowerment.

What I have learned


Directions:Write the key understanding you have taken from the module you
just successfully studied. (24 – points)

Rubrics:
Content – Expresses knowledge of the topic (8 points)
Organization – Concept is logically presented (8 points)
Presentation – Ideas/concepts are well presented and legible (8points)

What I can do
Directions: Read and do the activity in the box below. Write you answer in
your notebook. (24 points)
In a 500-word essay, evaluate the working relationship between the
Philippine state and the non-state institutions that helped during the
aftermath of Yolanda (Haiyan). Use concrete examples from news bulletins
and other reports to support your arguments. The main question that you

15
need to address is this: How effective was the collaboration of Philippine
government and non-state institutions in responding to the needs of the
survivors of Typhoon Yolanda?

Rubrics:
Criteria Rating Score
Content – Expresses knowledge of 2 4 6 8
the topic
Organization – Concept is logically 2 4 6 8
presented
Presentation – Ideas/concepts are 2 4 6 8
well presented and legible
Total

POST TEST
A. Knowledge
Directions: Identify the concept referred to by each item. Write your answer
in your notebook.
1. Defined by Weber as “a human community that claims the monopoly of
the legitimate use of physical force within a given territory”
2. A company or group of people authorized to act as a single entity (legally
as a person) and recognized as such in law
3. They provide business, individual, and personal loans, enabling
commercial banks to earn interest
4. It is a legal entity owned and democratically controlled by its members
5. These institutions are accountable to the National Assembly, and must
report on their activities and the performance of their functions to the
Assembly.
6. These are organizations with specific aims and goals with development as
the common goal

B. Enumeration
Directions: List the items asked in each number below.
7. Give 3 types of non-state institutions
8. Give the 3 interrelationships between the government and the non-state
institutions
C. Essay
Directions: Explain the following. Write your answer in your notebook. (4
points each)
9. Differentiate state and non-state institutions.

16
10. Choose two non-state institutions and differentiate their functions in
the society.
11. Explain the interrelationship of the government and non-state
institutions in attaining progress for the society.
12. Cite an example of an NGO that you know. How did this NGO help
your community?

Criteria Rating Score


Content – Expresses knowledge of 1 2 3 4
the topic
Organization – Concept is 1 2 3 4
logically presented
Presentation – Ideas/concepts are 1 2 3 4
well presented and legible
Total

17
ANSWER KEY
A.
1. State
2. Corporation
3. commercial banks
4. cooperative
5. State institutions
6. Development agencies

B.
7. cooperatives, trade unions, banks, transnational advocacy groups,
development agencies, international organizations non-government
organizations
8. economic alliance, disaster mitigation and risk reduction, social
development

18
References
Alejandria-Gonzalez, Maria Carinnes P., Understanding Culture Society and
Politics, Makati City: Diwa Learning Systems Inc, 2016
Baleña, Ederlina D., Dolores M. Lucero, Arnel M. Peralta, Understanding
Culture Society and Politics, Edcuational Resources Corporation, 2016

n.d. http://www.dlsu.edu.ph/offices/sps/rotc/pdf/ms1/threat-
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natlsecurity.pdf.

19

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