ECONOMIC INSTITUTIONS

DANILO F. MARIBAO
PALIPARAN III SENIOR HIGH SCHOOL
DASMARINAS CITY, CAVITE
 Economic Institutions
• A company or an organization that
deals with money or with
managing the distribution of
money, goods, and services in an
economy.
• Examples are banks, government
organizations, and investment
funds
 Reciprocity
• In social psychology, reciprocity is
a social rule that says people should
repay, in kind, what another person has
provided for them; that is, people give
back (reciprocate) the kind of treatment
they have received from another.
• By virtue of the rule of reciprocity, people
are obligated to repay favors, gifts,
invitations, etc. in the future.
• This sense of future obligation
associated with reciprocity makes
it possible to build continuing
relationships and exchanges.
• Reciprocal actions of this nature
are important to social psychology
as they can help explain the
maintenance of social norms.
 Transfer
• 1. Banking: Moving funds among two
or more accounts held by the same or
different entities.
• 2. Real estate: Conveyance of title to
a property from the seller to
the buyer through a deed of transfer,
following payment of the price.
•
 Transfer
• 3. Securities trading: Delivery of
a stock (share) certificate by the
seller's broker to the buyer's
broker followed by conveyance of
the title by recording the change in
the stock (share) register.
 Redistribution
• In Economics
the theory, policy, or practice of
lessening or reducing inequalities
in income for example through
such measures like progressive
taxation and anti poverty programs.
 Market Transactions
• The exchange of goods and services
through a market. The set of market
transactions taking place in the
economy is most important in terms of
measuring gross domestic product
(GDP).
• Market transactions provide the basic
data used at the Bureau of Economic
Analysis to begin the estimation of
GDP.
 Market Transactions
• However, these data don't just want to
measure market transactions, their
goal is to measure economic
production.
• As such, they eliminate some market
transactions that do not involve
economic production,
• then add economic production that do
not involve market transactions.
 State-market relations
• call for a holistic view of the
relationship between the material
and relational dynamics of society,
• on the one hand, and between
these dynamics and institutional
dynamics on the other.
 State-market relations
• the state contains mechanisms that
are essential to the existence of
markets themselves, and these
mechanisms are not “natural” given.
• Economies are actually institutional
production systems wherein the
material density of the state both as
organization and administration is of
relevance.
 Non-state Institutions
• These are institutions that are
not controlled by the
government or by the State.
• Examples are banks,
corporations, private
institutions
 Trade Unions
• It refers to a voluntary association
of either employees or employer
or independent workers to protect
their interest and becomes an
instrument of defense against
exploitation and maltreatment.
 Cooperatives
• Firm owned, controlled, and operated
by a group of users for their own
benefit.
• Each member contributes equity
capital, and shares in the control of
the firm on the basis of one-member,
one-vote principle (and not in
proportion to his or her equity
contribution).
Transnational Advocacy Groups
• They are free flowing and open
relationships among
knowledgeable and committed
actors (individuals and
organizations).
• international organizations such
as the UN, and actors from the
corporate/business world.
Transnational Advocacy Groups
Transnational Advocacy Groups
• These networks are united by a
commitment to some practical,
usually "trans-sovereign" issue (an
issue that transcends across multiple
countries)
• ex: women's representation,
environmental sustainability, human
rights, etc.
 Development Agencies

• These are local or

international groups
committed to pursuing
specific developmental
agendas of the state.
 Examples of Development agencies
• African Development Bank (AfDB)
• Development Bank of Latin America (CAF)
• Asian Development Bank (ADB)
• Caribbean Development Bank (CDB)
• European Bank for Reconstruction and
Development (EBRD
• Inter-American Development Bank (IADB)
• International Bank for Reconstruction and
Development (IBRD; part of the World
Bank Group)
 International Organizations

• These are groups that

promote voluntary
cooperation among its
members.