Non Market Institution

Reciprocity, transfer, and redistribution are all considered as non market transactions since they
do not entail the exchange of cash for the rendering of service or provision of goods.
● Reciprocity exists when there is an exchange of goods or labor between individuals in a
community. This would include direct barter or simultaneous exchange of goods, or gift
exchange where the return for goods given or labor rendered is delayed.
● Transfer entails a redistribution of income that is not matched by the actual exchange of
goods and services.
● Redistribution can be considered as a combination of the features of transfer and
reciprocity, where the economic exchange involves the collection of goods from
members, the pooling of these goods, and then the redistribution of these goods among
the same members.
Market Institutions
A market system is a type of economic system that allows the free flow of goods between and
among private individuals and firms with very limited participation from the government.
The invisible hand integrates both the idea of self-interest and competition in the marketplace,
which brings about a socially optimum result even in the absence of government intervention.
A market is a mechanism and not necessarily a place that brings buyers and sellers together
for the desired transaction.
Prices serve as a signaling device to indicate the value of a good or service to both the buyers
and the sellers and guide their actions on whether they should buy or not or supply more or
less.
Specialization is another requirement for a market economy. Critical to the market economy is
the ability to produce goods and services efficiently. It is easier to produce goods more
efficiently with specialization.
Human specialization is called the division of labor. Specialization contributes to efficiency by
taking advantage of the differences in every person’s abilities.
Barter or the swapping of goods for goods is the traditional means of exchange.
The market transaction involves parties who sell their goods and services in exchange for
cash from consumers. A market economy is one where the production, distribution, and
consumption of goods and services operate through these forms of exchange.
A free-market economy is one where the price of a good or service is determined by the forces
of supply (the available level of products or services provided by producers or sellers) and
demand (the level of willingness of consumers to purchase).

State-Market Relationships
It is in this aspect that the state plays an important role in the market. The state, through the
government, comes in to regulate prices to protect the interest of the consuming public. Basic
commodities such as food are subject to price ceilings or maximum prices. The prices of
electricity and mobile services are subjected to government regulation, and bodies are
established to determine the price of these commodities.

● Labor is also considered a commodity, except that in this case, the sellers of the service
are the workers, while the consumers are the factories and the producers. • The state,
 through the government, comes in to regulate the prices of the service, which technically
is in the form of the wages the workers earn.
● The minimum wage, which is determined by regional wage, is below which no employer
would allow paying their workers.
● The state is a political body that exercises monopoly of violence or legitimate control
overuse of force within its territory.
● A command economy or a socialist economy happens when the government takes over
the functions of the market in producing and distributing essential goods and services. In
this system, instead of the market forces of supply and demand deciding on what to
produce, a command economy relies on a central government.
● Taxes are compulsory contributions to government coffers, normally levied on the
worker’s income, business profits, and consumption of goods and services, to raise
revenues for government spending.

Market and Economic Organization

Market and economic organizations include the corporate environmental users, such as
corporations that use the resource for profit, and not for subsistence. Also included in this
category are the financial institutions such as banks, both local and foreign or transnational,
which provide funds to finance the implementation of policy through the development projects
and programs by the government as well as the private sector.

● The bank is a financial institution that lends money to both public as well as private
organizations.
● Corporation refers to the aboard category of non-state organizations representing a
company or group of people that engage in a lawful activity about a public function, such
as the provision of good service to the larger society.
● A stock corporation is where ownership is through stockholders who own particular
shares.
● A Nonstock corporation is owned by members that join the organization.
● Cooperative or coop refers to an autonomous association whose membership is
voluntary towards the attainment of common economic, social, and cultural needs or
aspirations.
● A Trade or Labor Union refers to an organization of workers whose main objective is to
protect the welfare of its members. It does this by negotiating collectively with employers
for better compensation packages and benefits, improved safety standards, and better
working conditions.

Civil Society Organizations

Civil society organizations include the following:
● Academic and Science-Based Organizations – these include universities, schools,
and colleges; private polling firms; private think tanks and consultancy groups
● Mass Media – Print, radio, and television
● Religious Organization – organized religion seen in church and congregation and their
counterparts in Islam and other religions
 ● Nongovernmental Organization – third-party mediating organizations
● People’s Organization – grassroots-based organizations composed of people who are
really in the community and are directly involved.

International Organization
An international organization (an intergovernmental organization) is an organization established
by a treaty or other instrument governed by international law and possessing its own
international legal by personality, such as the United Nations, the World Health Organization,
and NATO.

Transnational Advocacy Group

Transnational advocacy organizations (TAOs) are defined as “self-organized advocacy groups
undertaking voluntary actions across state borders in pursuit of what they deem the wider public
interest.” Advocacy organizations are known by different names: non-state actors, NGOs,
transnational advocacy networks. It also refers to the collection of actors (individuals or groups)
characterized by their fluid and open relations with each other, united by their commitment to
work on and defend certain issues and causes that are relevant across several nations. They
“use the power of information, ideas, and strategies to influence the value context within which
states make policies”. Transnational advocacy groups are also referred to as “transnational
advocacy networks” due to the nature of actors’ connection with each other.

Development Agencies
Development agencies were formed as a response to crises like war damage and industrial
decline. In some countries, such agencies were established with the hope of stimulating
economic development, postwar. Development agencies have come a long way since they were
first established, as thousands of them are currently operating within the globe.