Forms and

Functions of
State and Non-
state Institution
Understanding Culture,
Society & Politics Module 7:
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.
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.
Market exchange
Market exchange is the primary form of
economic subsistence of a state wherein
standardized currencies are being used to
exchange commodities.
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
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 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