Understanding

Culture, Society
& Politics
Module 7:
Forms and
Functions of
State and Non-
state Institution
Specific Objectives:

a. identify the different forms and functions of

state and non-state institutions;
b. describe each form of state and non-state
institutions;
c. explain how state and non-state institutions
function.
Scramble Letters Description Answer
ATEST An organized political community acting
under a government and united by common set
of laws
A form of business operation that declares
RANIOTROC the business as a separate entity guided by
a group of officers known as the
Board of Directors.
RNVEGOTENM The governing body of the state or nation
A financial institution licensed to provide
SKABN several financial services to different types
of customers.
Organizations formed by workers from
DETRA O N U N I related fields that work for
common interest of its members
Businesses governed on the principle of
TIVESOOCPERA
one member, one vote
STATE

 A state is an organized political community acting under a

government and united by common set of laws. It uses
absolute power in directing the path of a society. It also
uses complete political coerciveness, which may come in
the form of armed forces personnel, stricter laws, and rigid
government policies in order to attain its societal goals and
objectives.
Market exchange

Market exchange is the primary form

of economic subsistence of a state
wherein standardized currencies are being
used to exchange commodities.
 States differ in sovereignty, governance, geography,
and interests. It may be classified as sovereign if they
are not dependent on, or subject to, any other power
or state. Other states are subject to external
sovereignty where ultimate sovereignty lies another
state.
 Theconcept of the state is different from the concept
of government. A government is the particular group of
people that controls the state at a given time. In other
words, governments are the means through which the state
power us employed like applying the rule of law.
 The concept of the state is also different from the concept
of a nation, which refers to a large geographical area and
the people therein who perceives themselves as having a
common identity. The state is a political geopolitical
entity; the nation is a cultural or ethnic entity.
Elements of the States

1. Population
It is the people who make the state. Population is
essential for the state. Without population there
can be no State.
Elements of the States

2. Territory
There can be no state without a fixed territory.
People need territory to live and organize
themselves socially and politically. It may be
remembered that the territory of the states
includes land, water and airspace.
Elements of the States

3. Government
It is the organization or machinery or agency of
the State which makes, implements, enforces, and
adjudicates the laws of the state.
Elements of the States

4. Sovereignty
It is the most exclusive elements of State. Without
sovereignty no state can exist. State has the
exclusive title and prerogative to exercise supreme
power over all its people and territory. It is
the basis which the State regulates all aspects of
the life of the people living in its territory.
Forms of States
States come in a variety of forms that vary on who holds power, how positions of
leadership are obtained, and how authority is maintained. These are:

a. Authoritarian Government
Authoritarian governments differ in who holds power and in how control they
assume over those who govern. An example of this type is Monarchy.
Forms of States
Monarchy is a form of government in which supreme power is for life or until
abdication. The person who heads a monarchy is called a monarch. Some monarchs
hold unlimited political powers while many constitutional monarchies, such as
the United Kingdom and Thailand. Currently, 44 nations in the world have
monarchs as head of state.
Totalitarianism is a political system that strives to regulate nearly every aspect of
public and private life. It theoretically permits no individual freedom and that seeks to
subordinate all aspects of individual life to the authority of the state. Modern examples
of totalitarian states include the Soviet Union under Joseph Stalin, Nazi Germany
under Adolf Hitler, the People’s Republic of China under Mao Zedong, and North
Korea under the Kim Dynasty.
b. Oligarchic Government
An oligarchy is a form of government in which power effectively rests with a small-
elite segment of society distinguished by royalty, wealth, family, military, or
religious hegemony. An oligarchy does not have one clear ruler, but several
powerful people who rule. One common example is theocracy.

Theocracy is a government by divine guidance or by official who are regarded as

divinely guided. Leaders are members of the clergy, and the state’s legal system is
based on religious law. Contemporary examples of theocracies include Saudi Arabia,
Iran, and the Vatican.
 c. Democratic Government
Democracy is a form of government in which the right to governs is
held by the majority of citizens within a country or a state. The two
principles of democracy are that all citizens have equal access to
power and that all citizens enjoy universally recognized freedoms and
liberties. People can either become country leaders through electoral
process or elect leaders who represent the core values and beliefs.
There are 99 democratic nations globally. Examples of democratic nations
are Philippines, Norway, New Zealand, United States of America, Canada, Columbia,
Italy, and South Africa.
Roles of the States
1. State provides security against external aggressions and war. For this
purpose, the state maintains an army.
2. State ensures security against internal disturbances disorders and crimes.
For this purpose, the state maintains police.
3. State legally grants and guarantees the rights of the people.
4. The state issues and regulates currency and coinage.
5. State undertakes steps for the creation of necessary conditions for the
socio-economic-politico-cultural development of the people.
6. State grants citizenship and protects their interests and rights.
7. State conducts foreign relations, foreign trade and economic relations.
8. State secures the goals of national interest in international relations
Nonstate Institutions
 Nonstate institutions are people and/ or organization that
participate in international affairs and relations but are not
affiliated with any state or nation.
 These nonstate institutions include the following: bank and
corporations, cooperatives and trade unions, transnational
advocacy groups, and development
 agencies and international organizations. These nonstate
institutions are equally capable of influencing policy formation
and implementation.
a. Banks
 A. Bank is a financial institution licensed to provide
several financial services to different types of customers.
Banks are in operation mainly for their deposits and
lending functions. Customers are allowed to deposit their
money to banks which grow through an interest rate.
Banks also provide loans, with an interest to customers
who need money either for personal consumption or for
investment and businesses. Banks may be categorized into
major forms such as commercial banks and investment
banks.
Forms of Bank Description
Commercial  Financial deposit with security and conveniencewhich could be in
Banks the form of credit cards, debit cards, and check
 Provide business, individual, and personalloans, enabling
commercial banks to earn interest
 Serve as payment agents within and outside the
country through wire transfer
 Subjected to more regulations

Investment  Financial intermediaries that performs a varietyof services for

Banks businesses and some government
 Issues securities to the investing public
 Make markets, facilities, mergers, and other
corporate reorganizations
 Acts as brokers for institutional clients
 Under the supervision of regulatory bodies suchas the Securities
and Exchange Commission (SEC), FINRA, and the US Treasury
 Subjected to fewer regulations
The two most well-known financial
institutions

 World Bank

 Asian Development Bank

b. Corporations
It is a form of business operation that declares the business as a separate
entity guided by a group of officers known as the Board of Directors. They
were created by individuals, stockholders or shareholders, with the
purpose of operating for profit. They have all legal rights of an individual,
except for the right to vote and certain limitations. They are given the right
to exist by the state that issues their charter. Corporation example Includes
General Motors Corporation an icon of American craftsmanship, Apple
Corporation as one of the famous tech companies, Amazon Corporation
founded by Jeff Bezos is the world’s leading ecommerce and innovation
company, Domino’s Pizza is a global food chain company delivering
quality food worldwide.
Common Types of Corporations

 For-profit entities form most corporations, and

they are formed to generate revenues and provide a
return to their shareholders, according to their percentage of
ownership in the corporation. Examples: HBO in
partnership with International Rescue Committee, Ford
Motors and Lynda.com.
Common Types of Corporations

 Not-for-profit entities operate under the category of charitable

organizations, which are dedicated to a particular social cause such as
educational, religious, scientific, or research purposes. Rather than
distribute revenues to shareholders, not-for-profit organizations use their
revenues to further their objectives. Human Rights Campaign is a very
impressive example of using Facebook profile photos to spread the word
far and wide about campaign. Greenpeace the environmental non-profit
that used GPS technology to inform the public about their cause.
Multinational Corporations

 Multinational Corporations (MNCs) are

business organization that extends ownership,
management, production, and sales activities
into several or more countries. MNCs are boon
to the economic growth and development of the
states
Good Effects Bad Effects
Introduce technology Offer ill-suited technology
Encourage economic growth Retard economic growth
Encourage interdependently Cause dependency
Elites learn to regulate Elites become compradors
Promotes human rights Harms human rights
Protect the environment Hurt the environment
Economic actors Political actors
Promote a cosmopolitan Damage national Culture
world
c. Cooperatives
 Cooperatives are people-centers enterprises owned, controlled and
run by and for their members to realize their common economic, social, and
cultural needs and aspirations.
 Cooperatives are businesses governed on the principle of one
member, one vote. There are several common types of co-ops, including
cooperatives owned and operated by:
a. The people working there (worker cooperatives);
b. The people buying the co-op’s goods or services (consumer cooperatives)
c. The people collaborating to process and market their products(producer
cooperatives); and
d. Groups uniting to enhance their purchasing power (purchasing cooperatives)
d. Trade Unions/Labor Unions
 Trade Unions are organizations formed by workers from related fields that work
for common interest of its members. They help workers in issues like fairness of
pay, good working environment, hours of work and benefits. They represent a
cluster of workers and provide a link between the management and workers.
 The purpose of these unions is to look into the grievances of wagers and present a
collective voice in front of the management. It acts as the medium of
communication between the workers and management. Among these trade unions
that exist in the Philippines are the Federation of Free Workers (FFW), Kilusang
Mayo Uno (KMU) and the Trade Union Congress of the Philippines (TUCP).
Functions of Trade Unions:

 1. Advocating for fairness and equality for workers’ compensations

 2. Securing better working conditions for workers
 3. Trade Unions will organize strikes and demonstrations on behalf
 of worker demands
 4. Fight for social welfare for workers
 5. Promote and advocate for education and proper training for
 workers
 6. Advocate and fight the government for legislative protections of the
 workers
 7. Promote and advocate for organizational growth and stability
 8. Trade Unions acts as representatives of workers in national and
 international forums
 9. Involved in collective bargaining agreements and disputes with
 management to settle any conditions on employment
 10.Advising management on correct personnel policies and
 procedures
 11.Involved in collective and personal collective grievances between
 management and workers.
e. Transnational Advocacy Groups

 Transnational Advocacy Groups (TAGs) play an increasingly important role in

international and regional politics and have contributed to changing policies of
multilateral organizations and states. They are particularly visible in contentious
areas as human rights, environmental issues, international peace, and women’s rights.
They have specific roles to partake that can be achieved through effective
measures, case-specific methods, and activities.
 TAGs serve as international catalysts for change, aiming to achieve
 international changes towards policies and practices. The very essence TAGS is the
formation and development of their advocacies and campaigns
 that represent causes, ideas, values, and beliefs.
 Human Rights Watch and Amnesty are active in the human rights field. Oxfam and
Save children deal with humanitarian issues. Greenpeace and Friends of the Earth
represent environmental concerns.
f. Development Agencies

 Development Agencies have been established to develop the cooperation

between the public sector, private sector, and civil society. These 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 concerns, which can be
infrastructure or social institutions.
Types of Development Agencies:

 International Organization is an institution with

 membership drawn from two or more countries. Its activities transcend national boundaries as it facilitates
cooperation among its members in the performance of one or more tasks. The international organization
can be public or private. A public organization is an international government organization (IGO) with states
as its members. Prominent examples of IGOs are United Nations, the North Atlantic Treaty
Organization (NATO),
 International Monetary Fund (IMF), European Union (EU), Association of Southeast Asian Nations
(ASEAN), and World Health Organization (WHO). A private organization has a membership of individuals or
groups and is an international nongovernment organization (INGO) that originate for reasons other than
politics such as International Criminal Police Organization (Interpol). INGOs may lobby or work regularly with
the government and IGOs.
 Non-government Organization is a non-profit group that functions independently of any government. It serves the
social or political goals such as humanitarian and environmental causes. Most NGOs aim to promote the
practice of democracy among societies and social change through their initiatives and organizational
methods. 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.
Interrelationship of Government and Non-
state Institutions
 Government rules society. This reflects how powerful
government institution can be. If nonstate institutions interfere
with the governing body, two possible things can happen:
 1. Integration among these two institutions may take place to
achieve precise solution towards development
 2. Conflict and tension may also arise because one could exceed
the other in terms of societal control and influences (Penninx,
2013)
Assessment
1. What is the primary form of economic subsistence of a state?
A. Agriculture C. Foraging
B. Banking D. Market Exchange
2. What political term refers as a sovereign actor with a central government ruling
over population and territory?
A. Banks C. State
B. Government D. Trade Unions
3. What is the institution that membership is drawn from two or more countries?
A. Cooperatives C. International Government
B. International Organization D. Trade Unions
4. Which of the following organizations is NOT an example of IGOs?
A. International Monetary Fund C. North Atlantic Treaty Association
B. INTERPOL D. World Health Organization
5. What form of business operation declares the business as separate entity guided by
a group of officers known as the Board of Directors?
A. Cooperatives C. International Government
B. Corporation D. Trade Unions
6. What are the members of a public international organization?
A. Board of Directors C. Society
B. Private Business Owners D. States
7. What happens if the nonstate institutions interfere with the government?
A. Conflict and tensions may arise
B. Equal context of political and economic development
C. Equitable health and social development will be distributed
D. Nonstate Organization provides support and assistance through organized
frameworks
8. What licensed institution provides several financial services to different type of
customers to earn profits?
A. Banks C. State
B. Government D. Trade Unions
9. Which of the following functions is NOT a function of Trade Unions?
A. Fights for Social welfare for workers
B. Advocation for fairness and equality for workers’ compensations
C. Trade unions will organize strikes and demonstrations on behalf of worker demands
D.Support local and international groups to localize the implementation of
international policies
10. Which of the following statements is NOT a good effect of MNCs in a state?
A. Cause dependency
B. Introduce technology
C. Encourage interdependently
D. Encourage economic growth