Undersatanding, Society, and Politics

1. Forms and Functions of
State and Non-state
Institution
OFELMA R. AGUIMBAG

2. 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.

3. • STATE- is an organized political community acting under
a government and united by common set of laws.
• -uses absolute power in directing the path of a society.
• -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.

4. Important political functions
•1. maintains control over violence in its domain
•2. allocates resources and rewards at its discretion
•3. stands as the major focus of identity for the large
majority of the people under its authority.

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

6. Elements of the States
2. Territory
--- no state without a fixed territory.
--- live and organize themselves socially and
politically.
--- includes land, water and airspace.

7. Elements of the States
• 3. Government
---organization or machinery or agency of the State
---makes, implements, enforces, and adjudicates the
laws of the state.

8. Elements of the States
•4. Sovereignty
--- the most exclusive elements of State.
---without it no state can exist. State
---has the exclusive title and prerogative to exercise supreme
power over all its people and territory.
--- the basis which the State regulates all aspects of the life
of the people living in its territory.

9. Forms of States
a. Authoritarian Government
b. Oligarchic Government
c. Democratic Government

10. Forms of States
• a. Authoritarian Government
• differ in who holds power and in how control they assume over those who govern.
example :Monarchy.
•Monarchy -- 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.
• monarch (head of monarchy).
• 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.

11. Forms of States
• Totalitarianism
---is a political system that strives to regulate nearly every aspect of public and
private life.---- 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 :
-- the Soviet Union under Joseph Stalin, -- People’s Republic of China under
Mao Zedong
--Nazi Germany under Adolf Hitler -- North Korea under the Kim Dynasty

12. Forms of States
• b. Oligarchic Government
• -- 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.
• --does not have one clear 6 ruler, but several powerful people who rule.
• example is theocracy.
• Theocracy -- 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.
• examples of theocracies include:
• Saudi Arabia, Iran, and the Vatican.

13. Forms of States
• c. Democratic Government
• -- 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 :
• -- all citizens have equal access to power
• -- 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.

14. •There are 99 democratic nations globally.
•Examples of democratic nations :
•Philippines Norway New Zealand
United States of America Canada,
Columbia, Italy South
Africa.

15. 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.

16. Roles of the States
•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.

17. Roles of the States
•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

18. Nonstate Institutions
Nonstate institutions
--are people
-- organization that participate in international affairs and
relations.
--equally capable of influencing policy formation and
implementation.
. --not affiliated with any state or nation.

19. Examples of nonstate institution
1.bank and corporations
2.cooperatives and trade unions
3.transnational advocacy groups
4.development agencies and international organizations.

20. Nonstate Institutions
• a. Banks
--- financial institution licensed to provide several financial services to different
types of customers.
---operation mainly for their deposits and lending functions.
---allowed to deposit their money to banks which grow through an interest rate.
---provide loans, with an interest to customers who need money either for personal
consumption or for investment and businesses.
---categorized into major forms such as commercial banks and investment
banks.

21. Major forms of banks and their description
• Commercial Banks
• Financial deposit with security and 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

22. Major forms of banks and their description
• Investment Banks
• Financial intermediaries that performs 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

23. •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.

24. Nonstate Institutions
• b. Corporations
--business operation that declares the business as a separate
entity guided by a group of officers known as the Board of
Directors.
--created by individuals, stockholders or shareholders, with the
purpose of operating for profit.
--have all legal rights of an individual, except for the right to
vote and certain limitations.
--right to exist by the state that issues their charter.

25. Examples of corporation
• General Motors Corporation an icon of American craftmanship,
• 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.

26. 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.

27. 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.
• 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.

28. Common Types of 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

29. The Good and bad Effects of MNCs
• 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 world Damage national Culture

30. 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

31. Nonstate Institutions
•c. Cooperatives
•---centers enterprises owned, controlled and run by
and for their members to realize their common
economic, social, and cultural needs and aspirations.
---businesses governed on the principle of one
member, one vote.

32. Types of co-ops, including cooperatives
• 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

33. 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

34. • 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

35. Nonstate Institutions
• d. Trade Unions/Labor Unions
• are organizations formed by workers from related fields
that work for common interest of its members.
• help workers in issues like fairness of pay, good working
environment, hours of work and benefits.
• represent a cluster of workers and provide a link between
the management and workers.

36. Purpose of Trade Unions
• to look into the grievances of wagers and present a collective voice in front
of the management.
• acts as the medium of communication between the workers and
management. Among these
• Trade unions that exist in the Philippines are:
• Federation of Free Workers (FFW),
• Kilusang Mayo Uno (KMU)
• Trade Union Congress of the Philippines (TUCP).

37. 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

38. Functions of Trade Unions:
• 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.

39. Nonstate Institutions
• e. 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.
• visible in contentious areas as human rights, environmental issues, international peace,
and women’s rights.
• 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.

40. 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

41. Nonstate Institutions
• f. Development Agencies
• have been established to develop the cooperation between the public
sector, private sector, and civil society.
• organizations with specific aims and goals.
• common denominator among these organizations is the term
development.
• concentrate on the growth, progression, and advancement of specific
concerns, which can be infrastructure or social institutions.

42. Types of Development Agencies:
• International Organization
• an institution with membership drawn from two or more
countries.
• activities transcend national boundaries as it facilitates
cooperation among its members in the performance of one or
more tasks.
• international organization can be public or private.

43. Types of International Organization
• Public organization
• -- an international government organization (IGO) with states as its members.
• 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).
• 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

44. Types of Development Agencies:
• Non-government Organization
• non-profit group that functions independently of any government.
• 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

45. 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