This document provides information on political structures and economic institutions in society. It discusses centralized political systems like chiefdoms and states, and different types of authority. It also examines non-state actors including banks, corporations, cooperatives, advocacy groups, and development agencies. The document outlines patterns of distribution like reciprocity, redistribution, and market exchange. It describes the primary, secondary and tertiary economic sectors and market transactions such as purchases, loans, and bank accounts. Finally, it defines the market and state and how they work in society.

1. UNDERSTANDING CULTURE, SOCIETY
AND POLITICS
Prepared by: Ms. Cherrylyn T. MAGANO, LPT.

2. REVIEW!
1. What are the groups included in the primary?
2. What are the groups included in the secondary?
3. Differentiate endogamy and exogamy.

3. JUMBLED LETTERS
1. KREAMT
2. RICPORECITY

4. Organizing Society Part II

5. Political Structures
 Political Structures or institution is defined as the organized way in which
power is distributed and decisions are made within society. The German
sociologist Max Weber considers power as the likelihood of achieving desired
ends despite resistance from others.
 Power, therefore, is fundamental in the normal functioning of society as
expressed in terms of force- may it be physical or psychological.
 Force may or may not produce compliance but oftentimes does so by
including fear or in extreme cases terror.
 Authority is defined as the power widely perceived as legitimate rather than
coercive.

7. CENTRALIZED POLITICAL SYSTEM
 In large societies, authority and power are assigned to an individual (chief) or
a body of individuals (state). It was through centralized societies that
inequality was first practiced because of social stratification.
 Two prominent examples of centralized political systems are chiefdoms and
states.

8. Chiefdom
 In a chiefdom, power and authority are bestowed to the chief because he is
the highest-ranking individual.
 Apart from ensuring the unity of all the members of the community, it is also
the chief who oversees all economic activities in his or her area of
responsibilities.

9. The State and Types of Authority
 A state exists in a society with a large population that resides in a bounded
territory, stratified into different social classes, and subjected to a formal
government that creates and implements laws to promote social order
(Haviland, Prins, Walrath, and McBride, 2008).
 Authority can be categorized into three types: traditional, rational-legal, and
charismatic.

13. Non-State Actors
 Non-state actors refer to “entities other than a nation-state, including
multinational corporations, non-governmental organizations (NGOs), and
international non-government organizations, that plays a role in international
politics (Magstadt 2013:4391)."
 This entity is both present in international organizations and unconventional
settings.

14. Other non-state Actors
 Non-state actors also include banks and corporations, cooperatives and trade
unions, translational advocacy of society, and development agencies.
 These groups contributed to the development of society and some extent
enriched culture.

15. A. Banks and Corporations.
 According to the online newspaper The Guardian, the word bank is rooted in
the Latin meaning “bench,” referring to the Roman forum where money
lenders went to hang out.
 Both ancient and modern bankers rely on the confidence of people to trust
their ability to acquire “good credit risks from the bad and deposit money with
them in return from interest”.

16. B. Cooperatives and Trade Unions.
 According to the article titled “Cooperatives: A Short History,” cooperatives
“are organizations of people who have the same needs.”
 As an organization, cooperatives give importance to democratic processes
such as voting systems, the participation of members in decision-making, and
equal sharing of work and benefits.

17. C. Transnational Advocacy Groups
 According to authors Margaret E. Keck and Kathryn Sikkink, translational
advocacy networks or groups “are networks of activist, distinguishable largely
by the centrality of principled ideas or values in motivating their information.”

18. D. Development Agencies.
A development agency performs four key roles.
 First, the development agency performs an economic role. It helps build
markets and encourages entrepreneurial activities in countries.
 Second, it performs leadership roles; it provides long-term plans for
countries.
 Third, it helps coordinate development plans and strategies among
stakeholders, such as government, private sectors, and civic sectors.
 Fourth, a development agency can also implement development strategies
or projects.

19. ECONOMIC INSTITUTIONS
 Aside from acquiring their basic needs, such as food, water, and sex, people
aspire for goods and services that can only be attained through collective
effort.
 This makes the economic activity a significant part of life because it
influences the size and complexity of society and the character of its cultural
and social life.

20. Patterns of Distribution and Exchange of
Material Goods
 Reciprocity is a transaction between two socially equal parties concerning
goods or services that are estimated to be of equal value.
 More than economic, these transactions signify social ties being created or
strengthened by the gesture of gift-giving (Haviland, Prins, Walrath, and
McBride 2008).
 Reciprocity has three types: generalized reciprocity, balanced reciprocity, and
negative reciprocity.

21. Generalized Reciprocity
 This is undertaken by closely related people; this type of reciprocity is more of
a gesture that expresses personal relationships than economic transactions
(Kottak, 2000).
 For instance, the reciprocity between parents and children.
 In the Philippines, children express generalized reciprocity to their parents by
graduating from college and fulfilling the wishes of their parents.

22. Balanced Reciprocity
 This is a transaction between two distantly related people; the giver expects
something in return, although it does not have to be done immediately.
 Examples are business transactions between two companies or a certain
company sponsors a particular activity of an organization or groups in
exchange for promotion and publicity.

23. Negative Reciprocity
 This transaction is undertaken with people who are considered outsiders of
the group. The transactions are based on distrust because there is no
personal relationship between one party to the other.
 In this form of transaction, people try to profits as much as possible and pay
the least amount as possible; also, often, deceitful means are practiced to
gain profit (Kottak,2000).

24. Redistribution
 All produce from the community is sent to the center where they are stored,
counted, and later on, distributed back to the people.
 It is usually the chief of the community who is in charge of the processes.

25. Market Exchange
• The price of the exchange of goods and services is supposedly dictated by
the rules of supply and demand; however, personal loyalties and moral
values intervene in price determination most of the time (Haviland, Prins,
Walrath, and McBride, 2008).

26. Major Economic Sectors
 The economy is composed of three major sectors; primary sector, secondary
sector, and tertiary sector.
 The primary sector involves the gathering or extracting of undeveloped resources; for
example, fishing, mining, forestry, and agriculture.
 This sector is also the main producer or supplier of raw materials.
 The secondary sectors turn the raw materials produced by the primary sector into
manufactured goods; for example, houses, furniture, automobiles, and canned goods.
 The tertiary sector provides services to the community; for example, medicine,
teaching, and broadcasting.

27.  The aforementioned sectors work together in the economy both
independently and interdependently.
 They operate independently based on the nature and demand of their group.
Nonetheless, the three sectors also function interdependently because the
raw materials produced by the primary sector are also manufactured into
goods by the secondary sector.
 In turn, the tertiary sector, which purchased the goods, also provides services
to both primary and secondary sectors.
 For example, the public school teachers serve as an educator of students,
who are also the children of factory workers that make canned goods
(sardines) and fisherfolks from Zamboanga.

28. Market Transaction
 Market transactions are the system of exchange in a market.
 It is when goods and services are traded amongst individuals within their
market and society.
 Also called financial transactions, buyers and sellers exchange with one
another items value like information, goods, services, and money.
 Some examples of market transactions are done through purchases, loans,
mortgages, and bank accounts.

29. Purchases
 This type of transaction is the most common amongst all kind of transactions,
a buyer and seller interact with one another to exchange goods for an
amount of money.

30. Loans
 A more complicated version of Purchases, a loan is a sum of money that a
person may borrow.
 The borrowed money will then be returned to where the person loaned it from
with added interest.
 According to Peavler (n,d.), loans are money advanced to a business with an
interest the charge that must be paid and returned in the future.

31. Bank Accounts
 One more way of a transaction is through your bank accounts.
 Also known as "transaction account", these types of accounts are deposit
accounts held in a bank or any other financial institution that allow individuals
available access to money through cash withdrawals, checks, and debit.

32. Market and State
 To first understand how The Market and The State Work in a society, we must
first define what these are.
 The Market is seen a system of private ownership and enterprise that acts
based on their own private and self-interest. A more common way of viewing
The Market is how we view Capitalism.
 According to Schmalensee (2013), each participant and individual in The
Market act based on their pursuit of happiness; they make decisions based
on the achievement of their own goals.