Commission on Diocesan Schools

SAINT CHRISTOPHER ACADEMY

Central East #1, Bangar, La Union
Tel. No. (072) 619-6949
Email: [email protected]
Deped School ID: 400082 || ESC School ID: 0100068

Understanding Culture, Society, and Politics

Name:_______________________________________ Date:_____________
Grade and Section:______________________________ Score:___________

Forms and Functions of State and Non-state

Institution
Module

Society consists of social structures and social institutions that are governed by norms and values. Each
individual in a society has specific roles and functions that are meant to achieve balance in the society. However, the
pursuit of interests generates various conflicts in the society. Competition over resources is often the source of conflict.

By the end of World War II, various humanitarian issues and crises took place. More than 6 million was
displaced at the end of war. Faced with this large-scale of humanitarian crisis, international community responded with
various measures including the establishment of the Office of the United Nations High Commissioner for Refugees
(UNHCR) in 1950.

The large-scale of human predicament show how human rights are being violated by the institutional actors
such as government. This incidence leads to the creation of state and nonstate institutions. These institutions became
relevant in the advent of globalization and urbanization.

After going through this module, you are expected to explain the different form and functions of state and
non-state institutions.

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.

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.

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 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.

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 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.

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 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
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 Bank 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

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 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

Source: https://www.investopedia.com/ask/answers/061615/what-are-majorcategories-financial-institutions-
and-what-are-their-primary-roles.asp

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 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 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.

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 Lynda.com.
• 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 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
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 Economic actors Political actors
Promote a cosmopolitan world Damage national Culture
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)

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.
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 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)

Mastering the lesson is our outmost priority. Below is an

enrichment activity that will help you master the lesson. Good luck!

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 WORKSHEET 7
Understanding Culture, Society, and Politics
Name:__________________________________________ Date: _____________
Year & Section: _____________________________________ Score:

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 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

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.

Prepared by: Checked and Noted by:

Jonalyn D. Obina Ms. Jennifer B. Galuz
Subject Teacher OIC Principal
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