their respective purposes.

Yet, most depositors choose state banks because

Lesson 2 Non-state Institutions the government itself backs it up, thus the possibility of bankruptcy is very
small. On the other hand, corporations or group of individuals manages non-
state banks. Although ensured by the government through the Bangko Sentral
ng Pilipinas, it is but only to a minimum extent. Like in the case of certain
NON-STATE INSTITUTIONS banks, when a bank declares bankruptcy, each depositor could only receive
Ideally, in a democratic country, major industries must be under the control only a portion of their deposit (Contreras et al. 2016). Examples of banks
of the state, like banks, petroleum, transportation, and communication because they include the Bank of the Philippine Islands, Metrobank, and Rizal Commercial
are vital in the economy of the country. However, in the recent years, the said Banking Corporation (RCBC).
industries are being sold to private entities to carry away the burden from its
operation and maintenance. Today, private corporations headed by executives 2. A corporation is owned by a group of people, but has a separate legal identity
controls the major industries in the country with very minimum government (the owners of a corporation are not responsible for its own debts).
supervision, most of these are petroleum (Shell, Caltex and Petron), Corporations offer stocks (determines level of ownership), as well as bonds
telecommunication (Smart, Globe and PLDT), transportation (Cebu Pacific and (allows one to earn interest). These generate large amounts of capital, which
Philippine Air Lines), etc. These entities significantly affect the lives of the people is needed for growth (Contreras et al. 2016). Some well-known corporations
either directly or indirectly (Baleña 2016). are San Miguel Corporation, Accenture, and Shell.

Meanwhile, corporations based on profit (ABS-CBN, GMA 7 and PTV 5) Since a corporation is associated with various industries, it needs a huge work
manage most television networks in the country. They are duty bound to serve the force to run and operate. This provides job opportunities to number of workers
public by giving current news and information but more so entertainment to attract in the country and thus lessen the problem of poverty.
viewers. The more viewers a station has, the more product advertisements coming
in, and thus the profit comes along. This is why television networks in the country 3. Trade unions. There are some entrepreneurs who are only after for profit,
are becoming antagonistic as shown in their publicity ratings. and they tend to maximize working hours and minimize wages as much as
possible. This is where the trade union steps in. They look after the well-being of the workers.
Moreover, if you wish to have a car but do not have the enough money to buy, Collectively, they raise issues such as low salary, lack of
one can find a bank that offers car loan arrangements. If one wishes to own a compensation, etc. to the management that sometimes ends up with work
business but hesitant to fail, he or she may consider the stock market and be a “stoppage” or strike until the demands of both sides are met. (Contreras et al.
shareholder in a corporation. If a worker wants a better compensation, he or she may 2016).
join and be part of a trade union. These are just some examples of non-state Trade unions are created to protect the labor force of the country. Workers are
institutions: non-governmental organizations operating to satisfy many of our essential to the creation of goods and services for the citizenry. In the
short-term and long-term, small-scale and large-scale, and tangible and intangible Philippines, the Trade Union Congress of the Philippines has the largest
demands (De Leon 2008). membership.

Non-state institutions include the following: banks, corporations, trade 4. Cooperatives are made up of people with common interest who agreed to work
unions, cooperatives, development agencies, civil organizations, and transnational together for easy, safe, and affordable access to commodities, loans, and other
advocacy groups. services. They are created to help and empower one another with a minimum
1.) Banks help us keep our money, avail different kinds of loan, and exchange help from the government (Contreras et al. 2016). Farmers’ cooperatives and
currencies. The accumulated money of the bank is invested to some projects teachers’ cooperatives are common examples.
to gain profit; this is how banks pay their workers and depositors’ interest
depending on the agreed terms. 5. Development agencies promote progress by engaging in projects, policy-
making, and dialogue (Contreras et al. 2016). Some countries with active
Moreover, banks help the country by providing financial assistance to those agencies in the Philippines are Japan (JICA), Canada (CIDA), and U.S.A.
entrepreneurs who wanted to create or expand their business. By doing so, (USAID). Those providing financial assistance include the Asian Development
they also provide job opportunities among local citizens. Bank (ADB).
Development agencies works as a bank that provides financial assistance to
Although there are state and non-state banks in the country, both types serve important projects. The creation of bridge that connects one province to
another, or road construction that helps ordinary farmers transport their
products may be put into reality through the help of these agencies.

6. Civil organizations include academic institutions, research teams, mass

These organizations are created to expose the conditions of the marginalized

7. Transnational advocacy groups influence the government to take action on

Direction: Read the following items carefully. Shade the circle that corresponds to
the letter of your answer. C. tito and tita
D. lolo and lola
1. Backed up by the government itself, this institution has less tendency to be 9. Helen is maltreated by her employer in Saudi Arabia where she works as a
bankrupt. In relation, this non-state institution can also be a state institution. Which domestic helper. What government agency must she seek help?
one is it? A. Department of Health
A. Banks B. Department of Interior and Local Government
B. Cooperatives C. Overseas Workers Welfare Administration
C. Corporations D. Department of Education
D. Trade unions 10. Former United States of America vice president Al Gore went to the country last
2. Non-state agencies like JICA, CIDA, and USAID provide financial assistance to 2017 to speak about the impacts of climate change. This kind of advocacy is the duty
particular projects of a country like building bridges or roads that are essential for provided by a non-state agency known as ____.
development. Which non-state institution provides this kind of aid? A. Bank
A. Banks B. Corporation
B. Corporation C. Civil organization
C. Civil organization D. Development agencies
D. Development agencies 11. Which of the following is NOT TRUE about non-state institutions?
3. There are various kinds of institutions in any society. Some are state-owned while A. Some are for profit while some are not.
some are not. Which of the following can be an example of a non-state institution? B. Some are foreign while some are local.
A. Armed Forces of the Philippines (AFP) C. They contribute a lot to the economy.
B. Banks D. They do not influence what the government does.
C. Local government 12. Non-state institutions are not directly connected to the government, but still play
D. Philippine executive government a significant role in performing state functions. Which of the following is LEAST likely
4. Non-state institutions from other countries can also have a big impact to the to be a classification of non-state institutions?
Philippines. What is the MOST expected function of these non-state institutions? A. Civil
A. Development B. Market
B. Investigations C. Political
C. Investments, finances D. Transnational
D. Reforms on economic and political practices 13. Non-state institutions function just like the government. In relation to
5. Non-state institutions are often seen as doing what the government also does. To government functions, what term BEST describes the function of non-state
set it apart from the government, which of the following terms BEST describes non- institutions?
state institutions? A. Band-aid
A. Involuntary B. Gap-filling
B. Locally-based C. Long-term
C. Non-governmental D. Replacement
D. Publicly and privately owned 14. Non-state institutions play a very important role in people’s daily lives. Which
6. Which non-state institution raises awareness on certain issues, such as Amnesty non-state institution helps people acquire money or property in order to start a
International for human rights violations? business?
A. Advocacy groups A. Banks
B. Civil organizations, e.g. religion B. Cooperatives
C. Civil organizations, e.g. research C. Corporations
D. Transnational development agencies D. Trade unions
7. Civil organizations come in many form. Which one is MOST expected to show the 15. If workers want to convince the government to end contractualization but the
realities of the daily living of ordinary members of society? government is not listening, which non-state institution will be able to gather workers
A. Law firms and force dialogue with the government?
B. Mass media A. Cooperative
C. Overseas research team B. Labor unions
D. People’s organizations in communities C. Rural and farmers’ banks
8. The state works as a family, it creates agencies to provide for the welfare of its D. Workers who are members of corporations
members. Meanwhile, non-state institutions work as _______________ to lessen the
burden of the state-government. Direction: Match each problem with the non-state institution that could solve the
A. parents issue. Write the letters of your choice on the blanks.
B. brothers and sisters
_____A. Medicines are very expensive in your local drugstores. and Employment (DOLE)
_____B. The sea is running out of fish because of dynamite fishing. C. Overseas Workers
_____C. You want to buy a house but will never have enough money for it. Welfare Administration
_____D. You work for 18 hours a day and you cannot take it any longer.
(OWWA)
_____E. Your community is always flooded and building a dam is needed.
D. Armed Forces of the
F G H I J Philippines (AFP)
Advocacy Bank Cooperative Development Trade E. Department of Health
Group Agency Union (DOH)
F. Department of Interior
Direction: Supply the missing letters to complete each word. and Local Government
(DILG)
G. Department of Public
Works and Highways
(DPWH)

MACHING TYPE
Direction: Match Column A with Column B, Write the letter of the correct answer
before the number.

_____1. An agency of the government that protects its territories and boundaries
_____2. A state agency that looks after municipalities and barangays
_____3. An agency of the government that ensures quality education
_____4. A state agency that creates public infrastructure like school buildings, roads,
and bridges
_____5. An agency of the government that looks after the welfare of Filipinos working overseas

A. Department of
Education (DepEd)
B. Department of Labor