Lesson 1: Forms and Functions of State and Non-state Institution

State
 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 cohesiveness, 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
 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.

Elements of the States

1. Population -It is the people who make the state. Population is essential for the state. Withou t 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 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 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.

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.

Non-state 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 non-state institutions are equally capable of influencing policy formation and implementation.

A. Bank
 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.

Major Form of Bans and their Description

Form 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

Investment Bank  Financial intermediaries that performs a variety of services for businesses and some
government
 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

The two most well-known financial institutions that are actively shaping the socio- economic 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 craftsmanship, Apple
Corporation as one of the famous tech companies, Amazon Corporation founded by Jeff Bezos is the world’s
leading eCommerce and innovation company.
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.

Checks out the big names of MNCs that are already exist in the Philippines

 Google
 Viber
 Palo Alto Networks
 Procter and Gamble
 Thomson Reuters
 Accenture
 HSBC
 Citibank
 Maersk
 Hewlett Packard
 Coca Cola Far East
 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).

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.

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. Th 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.