A failed state is perceived as a state that has failed to meet the essential needs, functions, conditions and responsibilities of a sovereign government. Indicators of a failed state are distinguished as loss of power, loss of regulation and control over its territory, corrosion of authority in decision-making and resolutions, incompetence in the administration of national services, such as education, security or governance, and lack to collaborate with other states as a full representative of the international community. All of these factors are upheavals that result in fractious violence and extreme poverty spilling over into a failed state. The recent Fund for Peace index ranks failed states. Last year, in 2013, the top sixteen failed states were Somalia, Congo (DR), Sudan, South Sudan, Chad, Yemen, Afghanistan, Haiti, Central African Republic, Zimbabwe, Iraq, Ivory Coast, Pakistan, Guinea Bissau and Nigeria. A failed state is classified as unfortunate, precarious, or intentional. An example of an unfortunate state is Somalia. This country is incapable of formulating and implementing its own policy, therefore it is considered a collapsed state. There is no central form of government and no effective policy that governs its population. The intentional state fuels violence between a self-governing territory and its perceived enemy. Pakistan is a good example of how clear and consistent policies have been maintained across the country; however there are ungoverned regions in the Pashtun badlands along the border with Afghanistan. A source states that "the country's military leaders have made a strategic choice to allow the Pashtuns to govern themselves, in order to be able to better use them against their presumed adversaries". The region is known… halfway through the paper… to have an approach that advocates for a guaranteed security through respect for power sharing between competing groups within failed states. The United States and the United Nations seem convinced that international peace and security depend on the exclusive presence of independent states capable of controlling their territories, supervising their societies and fulfilling their global obligations. Failed states generate negative externalities within the international system by harming and abusing their national population or by allowing terrorist and corrupt criminal ventures to operate on their country's territory. Interventions in the interests of malfunctioning states detract from fundamental sovereignty, these interferences can advance the importance of border concerns by using nation states as a constructive unit in the organization of international affairs and law.
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