State and Non-State

Institutions
State
 Any state in the world formulates its own
government agency to achieve the needs of its
people.

 However, in most democratic society, the state

government allows business individuals,
corporations, and non-profit organizations to
deliver goods and services for the citizens (De
Leon 2008).
Institution
 It is composed of a formal rules, informal
norms, or agreed upon understanding that
constraint and prescribe political actors’
behavior and interaction with one another.

 Itsmain function is to keep society in order and

implement specific tasks assigned to them.
State Institutions
 Institutionsthat have state functions and are
established to govern the state including all
other agencies, bureaus, and offices.
 State Institutions: 3 Branches of the
Government
 Office of the President (Executive)
 Office of the Vice-President
 Congress of the Philippines (Legislative)
- Senate
- House of Representatives
 Supreme Court of the Philippines (Judicial)
State Institutions under the office of the
President
 Metropolitan Manila Development Authority
 Philippine Statistics Authority
Constitutional Commissions
 Commission on Human Rights
 Commission on Audit
 Commission on Elections
 Civil Service Commission

Local Government Units

National Government Agencies (DILG, DAR, DA,

DOH, DEPED, etc.)
Government owned or controlled
corporations
Government Service Insurance System
PAG-IBIG
National Housing Authority
Social Security System
Non-State Institutions
 “Non-State Actors”
 A group of people or organization that
participates in international affairs and relations
but is not affiliate with any state or nation.
 non-state institutions: non-governmental
organizations operating to satisfy many of our
short-term and long-term, small-scale and large-
scale, and tangible and intangible demands (De
Leon 2008).
Non-state institutions include the following:

 Banks
 Corporations
 Trade unions
 Cooperatives
 Development agencies
 Civil organizations
 Transnational advocacy groups.
Banks
 help us keep our money, avail different kinds of
loan, and exchange currencies. The accumulated
money of the bank is invested to some projects to
gain profit; this is how banks pay their workers and
depositors’ interest depending on the agreed terms.

 Moreover, banks help the country by providing

financial assistance to those entrepreneurs who
wanted to create or expand their business. By doing
so, they also provide job opportunities among local
citizens.
Banks
 The central bank is the main financial institution in
a country since it supervises the monetary system in
the country. It functions as a regulating institution
to all other banks in a country and it issues all the
bank notes (or money bills) and coins of the country
in which it operates.

 The Bangko Sentral ng Pilipinas is the central bank

of the Philippines. A central bank is the only
banking institution established through a special
law of the government, which makes the
government of great influence to its central bank.
Banks: Function
1. Banks also provide loans, at a higher interest rate,
to customers who need money either for personal
consumption or for investment and businesses.
 This process of taking in deposits and lending them
to customers in need is called financial
intermediation. This means that the bank serves as
a connecting link between its depositors and
borrowers of money.
Banks: Function
2. Banks also act as a custodian of customer’s money,
which help guarantee the safety of each deposit.
When a person puts his money in a bank, the amount
given is maintained in a deposit or savings account
which prevents the risk of theft and robbery. Certain
types of bank accounts also make it possible for
customers to withdraw money as needed. Certain
types of bank accounts also make it possible for
customers to withdraw money as needed.
Banks: Function
3. Money remittance makes it easier for people to
send money from one place to another. This holds
importance especially for overseas Filipino workers
(OFWs) who provide financial assistance to their
families in the Philippines.

4. Most banks also accept payments to house and

other utilities such as electricity and water utility.
This function of the bank eases the transaction of its
customers with utility companies.
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Common types of banks
1. A retail bank is a type of bank that focuses on
consumers or the general public as its customers.
One’s personal bank account, like checking and
savings account, are usually in a retail bank. Retail
banks can be considered to be the most common
and widespread of all the types of banks.

 Examples: Landbank, Metrobank, Bank of the

Philippine Islands (BPI), Philippine National Bank
(PNB), Union Bank of the Philippines
Common types of banks
2. A commercial bank also provides the same services as
a retail bank; however, it focuses on businesses and
businessmen as its main customers. Commercial banks
provide short term loans for businessmen to be used for
investment purposes.

Examples: Asia United Bank, East West Banking

Corporation, Rizal Commercial Banking Corporation
(RCBC), Security Bank
Common types of banks
3. An investment or an industrial bank provide
medium and long-term loans and deposits to
business industries.

Examples: Development Bank of the Philippines

(DBP), Philippine National Bank (PNB) Capital and
Investment Corporation
Common types of banks
4. Agricultural banks, as the name suggests, caters
to the financial needs of farmers and the farming
industry. They provide short-term and long-term
loans to facilitate agricultural activities. Loans from
this type of bank is used for buying seeds,
fertilizers, land, or any materials needed for
farming.

Examples: Agribank, Landbank

Corporation
 Since a corporation is associated with various
industries, it needs a huge work force to run and
operate. This provides job opportunities to
number of workers in the country and thus
lessen the problem of poverty.
Corporation

 is owned by a group of people, but has a separate

legal identity (the owners of a corporation are not
responsible for its own debts). Corporations offer
stocks (determines level of ownership), as well as
bonds (allows one to earn interest). These generate
large amounts of capital, which is needed for
growth (Contreras et al. 2016). Some well-known
corporations are San Miguel Corporation, Accenture,
and Shell.
Corporation
 Any corporation-owned property belongs to the
corporation itself and not to the owners of the
corporation. Like most individuals, a corporation is
also obligated to pay taxes. This non-state
institution is created to operate businesses and to
pursue a common objective, may it be profit-
oriented or not. Although, many corporations are
usually set up for profit. It is important to take note
that a corporation is a distinct and separate entity
from the people who own it.
There are different types of corporations that are
classified based on specific factors like the
corporation’s purpose, and number of shareholders.

 A business corporation is created to operate and to

generate profit. Companies like McDonald’s and Starbucks
are examples of a business corporation.

 A non-profit corporation is established with a purpose of

serving the public rather than pursuing profits.
Example: Gawad Kalinga
 Trade Union
> There are some entrepreneurs who are only after for profit, 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. Collectively, they

raise issues such as low salary, lack of compensation, etc. to the
management that sometimes ends up with work “stoppage” or
strike until the demands of both sides are met. (Contreras et al.
2016).

 Trade unions are created to protect the labor force of the country.
Workers are essential to the creation of goods and services for the
citizenry.
The Trade Union Congress of the
Philippines (TUCP), with 480,000
members, is the biggest confederation of
labor federations in the Philippines both in
membership and in number of Collective
Bargaining Agreements.
The Federation of Free Workers (FFW) is
a national trade union center in the
Philippines. The FFW is affiliated with
the International Trade Union
Confederation
Cooperatives

 are made up of people with common interest who agreed to

work together for easy, safe, and affordable access to
commodities, loans, and other services.

 They are created to help and empower one another with a

minimum help from the government (Contreras et al. 2016).
Farmers’ cooperatives and teachers’ cooperatives are
common examples.
Cooperatives

 are made up of people with common interest who agreed to

work together for easy, safe, and affordable access to
commodities, loans, and other services.

 They are created to help and empower one another with a

minimum help from the government (Contreras et al. 2016).
Farmers’ cooperatives and teachers’ cooperatives are
common examples.
There are several types of cooperatives, depending on its
specific function and purpose.
1. A credit cooperative provides financial services to its
members, including securing savings and creating funds to be
used for issuing loans.
Examples: Camsur Multi Purpose Cooperative, Baao Parish
Multipurpose Cooperative, Bicol Alternative Credit & Savings
Cooperative

2. A service cooperative (or a worker cooperative) concentrates

on helping workers in the service-oriented occupations (i.e.
health care, transportation, labor) by creating employment
opportunities and other benefits to its members.
 Examples: Naga Imaging Center Cooperative (NICC), Bicol
Cardiovascular Diagnostic Cooperative, PISTTON (Pinag-Isang
Samahan Tsuper Trisekel Operator sa Naga) Development,
Organ Camarines Sur Naga Taxi Transport Cooperative, Naga
City Farmers Producers Cooperative
Development Agencies
 Development agencies work as a bank that provides
financial assistance to 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.

 These promote progress by engaging in projects, policy-

making, and dialogue (Contreras et al. 2016). Some
countries with active agencies in the Philippines are Japan
(JICA), Canada (CIDA), and U.S.A. (USAID). Those providing
financial assistance include the Asian Development Bank
(ADB).
Development Agencies
 Japan International Cooperation Agency – achieving
sustainable economic growth, overcoming vulnerability, and
peace and development in Mindanao.
 Canada International Development Agency – strengthening
small and medium sized enterprises, and providing skills
training to help people get jobs—assists developing countries
and their citizens to lift themselves out of poverty
 United States Agency for International Development –
provides humanitarian assistance, reduce poverty,
strengthen democratic governance, advance economic
opportunities, and help achieve progress beyond programs
 Civil Organizations
 include academic institutions, research teams, mass media,
religious organizations, and people’s organizations. They
provide facts about the life’s various realities to influence
policy-making (Contreras et al. 2016).
 These organizations are created to expose the conditions of
the marginalized sector of the society by using mass media
as its platform as they raise critical issues to the
government.
Transnational advocacy groups

 influence the government to take action on matters

commonly neglected. A group maybe a national or an
international organization that promotes and advocates
progress and development related to particular issues of the
society. (Contreras, et al., 2016). Greenpeace and Human
Rights Watch are some examples.