Quarter 2

Understanding Culture, Society &

Politics

Forms and Functions of State and

Non-state Institution

Specific Objectives:
1. Identify the different forms and functions of state and non-state
institutions;
2. Describe each form of state and non-state institutions;
3. Explain how state and non-state institutions function.
 Pretest
Direction: Carefully read each item. Write the letter of
the best answer. Use separate sheets for your answers.

1. What form of business governed on the principle of one member, one

vote?
A. Cooperatives C. States
B. Corporation D. Unions
2. What organization of the state which makes, implements, enforces, and
adjudicates the law?
A. Cooperatives C. Government
B. Corporation D. Trade Unions
3. What institution that allows people deposit their money for safe
keeping and interests?
A. Banks C. Corporation
B. Cooperatives D. Lending Company
4. What institution is made up of individuals, shareholders or
stockholders who engage to business?
A. Banks C. Corporation
B. Cooperatives D. Trade Unions
5. What type of corporation that are formed to generate revenues and
provide returns to their shareholders?
A. For-Profit C. Trade Groups
B. Not-for Profit D. Union Groups
6. What type of corporation that operates under the category of
charitable organization?
A. For-Profit C. Trade Groups
B. Not-for Profit D. Union Groups
7. What business organization that extends production and sales into
several countries?
A. International Government Organization C. Multinational
Corporations
B. International Organization D. Transnational Groups
8. What organization is formed by workers for common interests of their co-
workers?
A. Banks C. Corporation
B. Cooperatives D. Trade Groups
9. What organization whose activities transcend to national boundaries to
facilitates cooperation?
A. International Organization C. Trade Unions
B. Multinational Corporations D. Union Groups
10. What form of government in which supreme power is absolutely
lodged with an individual?
A. Democracy C. Oligarchy
B. Monarchy D. Theocracy

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Jumpstart

Accomplish the activity below. This will help you understand the lesson. Have fun
and good luck!

Activity 1: Unscramble the Letters

Direction: Unscramble the letters to identity the concepts being described.

Scramble Letters Description Answe

r
An organized
A T E S T political community
acting under a
government and
united by common
set of laws
A form of business
operation that
declares the business
R A N I O T R O as a separate entity
C guided by a group of
officers known as the
Board of Directors.
The governing body
R N V E G O T E
of the state or nation
N M
A financial
institution licensed to
S K A B N provide several
financial services to
different types of
customers.
Organizations
formed by workers
D E T R A O N from related fields
U N I that work for
common interest of
its members
Businesses
T I V E S O O C P governed on the
E R A principle of one
member, one vote

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 Discover

State
At the time of the initial development of the modern human
rights system,
States were the dominant actors in the international arena.
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 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.
The concept 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.
As a state, it consists of actors with varying interests and
assertions, social rules are implemented in the forms of laws. These laws
are created to manage the interaction among individuals and between the
individuals and the state. As a citizen of a country, an individual is
subjected to the legal norms in the territory. These norms may include
paying taxes, rendering military services, and contributing to the political
life in the society.
The State intends to be a strong actor in the performance of the three
important political functions. The state, in full form,
1. maintains control over violence in its domain
2. allocates resources and rewards at its discretion, and
3. stands as the major focus of identity for the large majority of the
people under its authority.

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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.
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.
3. Government
It is the organization or machinery or agency of the State which
makes, implements, enforces, and adjudicates the laws of the
state.
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.
Monarchy is a form of government in which supreme
power is absolutely lodged with an individual, who is the head of
the state, often 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

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 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

Non-state Institutions
Non-state institutions are people and/ or organization that participate
in international affairs and relations but are not affiliated with any state or
nation.
These non-state institutions include the following: bank and
corporations, cooperatives and trade unions, transnational advocacy
groups, and development agencies and international organizations. These
non-state institutions are equally capable of influencing policy formation
and implementation.
a. Banks

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 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.

Table 1. Major forms of banks and their description

Forms of
Description
Bank
Commercial  Financial deposit with security and
Banks convenience which could be in the form
of credit cards, debit cards, 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
Investment  Financial intermediaries that performs
Banks a variety of services for 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 such as the Securities and
Exchange Commission (SEC), FINRA,
and the US Treasury
 Subjected to fewer regulations

The two most well-known financial institutions that are

actively shaping the socioeconomic development of the Philippines
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
development objectives.

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

7
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

A corporation can be created by a single shareholder or by
multiple shareholders who come together to pursue common goal. A
corporate can be formed as a for-profit or a non-for-profit entity.
 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 [Link].
 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 (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.

Table 1. The Good and bad Effects of MNCs

Good Effects Bad Effects

Introduce technology Offer ill-suited technology
Encourage economic Retard economic growth
growth
Encourage Cause dependency
interdependently
Elites learn to regulate Elites become compradors
Promotes human rights Harms human rights
Protect the environment Hurt the environment
Economic actors Political actors

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 Promote a cosmopolitan Damage national Culture
world
Source: Conway Henderson (1998)

Checks out the big names of MNCs that are already exist in the Philippines:

Google HSBC
Viber Citibank
Palo Alto Networks Maersk
Procter and Gamble Hewlett Packard
Thomson Reuters Coca Cola Far East
Accenture Deutsche Bank

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)

Cooperatives play a critical role in building community wealth

for several key reasons:
a. They often provide quality goods and services to areas that
have been shunned by traditional businesses because they
are deemed less profitable
b. They typically invest in local communities
c. Since most cooperative members are local residents,
business profits remain and circulate in the community
d. Cooperative membership builds social networks and
strengthens social cohesion which are essential elements
of a strong, healthy communities by connecting diverse
community residents
e. Purchasing cooperatives help small, local businesses
remains competitive within markets dominated by large,
national retailers
f. Worker cooperatives create quality, empowering jobs for
community members

9
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.

10
 The very essence of 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

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 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)

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 Explore

Mastering the lesson is our outmost priority. Below is an enrichment activity that will help you mast

Directions: Complete the table. Identify the non-state institutions and

describe its structure and functions.

Non-state Structure Functions

Institutions

13
 Deepen

The coronavirus COVID-19 pandemic is the defining global health

crisis of our time and the greatest challenge we have faced. The pandemic
is much more than health crisis but is also unprecedented socio-
economic crisis.
You are the Secretary of Department of Health (DOH) and tasked to
create or organize your own non-governmental organization that will address
the COVID-19 pandemic. To accomplish this task, create a simple
project proposal using the template below:

Name of the
Organization you will
organize.
Purpose of the
organization (Why do
you need to create your
organization)

Organizational
Structure
(Officers/Personnel)

Funding Sources
(Ways and means to
generate your
organization’s fund)

Organization’s
Projects and
Activities

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 Gauge

Directions: I. Multiple Choice. Carefully read each item. Write the letter
of the best answer. Use separate sheets for your answers.

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 non-state 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. Non-state 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

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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

II. TRUE or FALSE. Write True if the statement is correct and FALSE if
the statement is incorrect.

1. The state uses absolute power to attain societal goals and objectives.
2. Being a citizen of a state, everyone is entailing the enjoyment of
certain privileges that are called rights.
3. Investment Banks issues securities to the investing public.
4. Commercial Banks provide business and personal loans in orders to
earn interest.
5. Transnational Advocacy Groups serve as international catalysts for
change and development.
6. A cooperative has a primary role of promoting labor welfare.
7. Most trade unions aim to promote the practice of democracy among
societies.
8. The government plays a vital role in human society because it is
expected that its efforts and initiatives must be aligned with individual
welfare and service.
9. One of the most important roles of banks is to translate agreed-upon
values into rights and obligation.
10. World Bank is an example of trade union.

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