module 10 – nonstate institutions

Pre-test: True or False – Write True if the said statement is true, and write False if the statement is false, on a
one-half cross-wised sheet of yellow pad paper.

1. Nonstate institutions, are institutions not related to the components of the state.
2. Trade unions and cooperatives are organizations comprising workers and laborers with common goals,
purposes, and interests.
3. Development agencies cater societal issues and problems are not concentrated in a certain society or
within a specific area only.
4. Development agencies are organizations with specific aims and goals.
5. The central role of international organizations is essentially to provide support and assistance through
organized framework to international cooperation.
6. NGOs are non-profit, often voluntary organizations that carry a broad range of social development
functions with and on behalf of people.
7. Local security is a state or condition where our most cherished values and beliefs, our democratic way of
life, our institutions of governance and our unity, welfare and well-being as a nation and people are
permanently protected and continuous enhanced.
8. Social development is one of the goals of every society.
9. The practice of human rights is considered a privilege of every individual in human society, and is
ideally and believed to be distributed equally.
10. Any society that undergoes social development is expected to move upward or attain progress.

Lesson 1 – Nonstate Institutions

 module 10 – nonstate institutions

Society consists of social structures and social institutions that are governed by norms and values. Each
individual in a society has specific roles and functions that are means to achieve societal equilibrium. The
practice of human rights is considered a privilege of every individual in human society, and is ideally and
believed to be distributed equally.

How can you differentiate between state and nonstate institutions? What are their functions in human
society?

Weber defines state as “a human community that claims the monopoly of the legitimate use of physical
force within a given territory” (Shandra, 2007).

On the other hand, nonstate institutions, are institutions not related to the components of the state. These
institutions function with minimal intervention from state institutions. Although states possess the official
political power in a given territory, the capacity of nonstate institutions to affect the political and economic
trajectory of a society cannot be discounted.

These nonstate institutions include the following:

1. Banks and corporations – there are several financial institutions that aid people in terms of money
and investments. In these institutions, everything is associated, related and linked to money and
financial transactions. They cater to different types of people and organizations. Financial
institutions may be categorized into major forms such as commercial banks, investment banks,
insurance companies, brokerages, and corporations.

Financial Institution Description

1. Commercial Banks
2. Investment Banks
3. Insurance Companies
4. Brokerages
5. Investment companies or
corporations
 Financial deposit with security and convenience which could be
in the form of credit card, debit card 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
 Subjected to more regulations
 Financial intermediaries that perform a variety of services for
businesses and some governments
 Issue securities to the investing public
 Make markets, facilitate mergers, and other corporate
reorganizations
 Act as a broker for institutional clients
 Under the supervision of regulatory bodies such as the Securities
and Exchange Commission, FINRA and the US Treasury
 Subjected to fewer regulations
 Aid individuals and companies in terms of risk management and
wealth preservation
 Capable of earning profit and paying claims, through their large
number of insurances
 Intermediaries in the transaction between buyers and sellers for
the purpose of security
 Commission-based earnings
 Help individuals invest funds or money with other investors to
manage portfolios of security
 Purchase securities indirectly through a package product such as
a mutual fund

2. Cooperatives and trade unions – trade unions and cooperatives have the primary role of promoting
labor welfare and good industrial relations. Trade unions and cooperatives are organizations
comprising workers and laborers with common goals, purposes, and interests. They mostly concern
employment relations, decency and welfare.
 module 10 – nonstate institutions

Role Description
1. Political  Can be powerful and influential in creating political impact
 Can be in conflict with other parties due to large number of members with
common interests that are different from other union’s interest
2. Market  Reactive because of preoccupied economic aims that concern employment
salaries, wages, and inflation, rates and rights (macro and micro economic
policies)
3. Regulatory  Influential in determining and improving job qualities and standards to
regulate employment functions
4. Democratizing  Promote rights to economic democracy and participation to industrial
democracy
5. Service  Promote the welfare of members through various initiatives and
partnerships with different organizations that provide service to them
6. Enhancement  Concerned for potential development and member’s improvement
7. Welfare  Multifunctional institutions, conforming more to the idea of the trade
union as being part of a movement.

3. Transnational Advocacy Groups – societal issues and problems are not concentrated in a certain
society or within a specific area only. It may also be extended across borders and countries. Most of
these issues have something to do with international policies that are not responsive to contemporary
issues.

4. Development Agencies – are organizations with specific aims and goals. The common denominator
among these organizations is the term development. These agencies concentrate on the growth,
progression and advancement of specific societal concerns, which can be infrastructure or social
institutions.

there are two major types of organizations that are considered as development agencies: international
organizations and the non-government organizations or NGOs.

5. International Organizations – Coppee (2011) stated that one of the important roles of international
organizations is to translate agreed-upon values into rights and obligations. The central role of
international organizations is essentially to provide support and assistance through organized
framework to international cooperation. The cooperation aims to be developed across several
institutions over time.

6. Nongovernment Organizations (NGOs) – mostly working in limited territories, they are often
characterized by their intensive collaboration with local stakeholders to improve their beneficiaries’
conditions. NGOs are non-profit, often voluntary organizations that carry a broad range of social
development functions with and on behalf of people.

Category Description
1. Community Represent voices of people from different communities, and act as bridge
associations between members of the communities and government.
2. Policy advocacy Have local, national, and international levels of participation; serve as
groups catalysts for collective action among poor persons in societies,
unaccustomed to such behavior.
3. Service provider Have national and international levels of participation; serve remote areas
intermediaries and communities especially those who fail to receive government
programs; seek fund through income generating activities which are mostly
nonprofit.
4. Contractors Involved in sponsored projects as consultants to government agencies or to
international financial institutions that gain no profit at all.
5. Cooperatives Protect and provide economic benefits to the needy; are formed when a task
cannot be done on the individual level, such as obtaining credit.
Lesson 2 – Interrelationship of Government and Nonstate Institutions
 module 10 – nonstate institutions
Government plays a vital role in human society because it is expected that its effort and initiatives must
be aligned with public welfare and service. Personal interest must be the least concern of the bureaucracy to
ensure good will and avoid societal dysfunction. Failure to perform bureaucratic functions will lead to different
forms of conflict among societies.

The ideal relationship of government and nonstate institutions is one that is on equal footing in
addressing social issues. Government rules society according to existing norms and values in the form of laws
and policies. This reflects how powerful a government institution can be.

Accordingly, if nonstate institutions interfere with the governing body, two possible things can happen.

1. Integration among these two institutions may take place to achieve precise solution towards
development.
2. Conflict and tension may also arise because one could exceed the other in terms of societal
control and influences.

2.1 – Economic Alliance

In a continuously globalizing world, interdependence among states in procuring commodities

and services is inevitable. The lack of supply in one country can be addressed by another country that
has a surplus of which, as raw materials become scarcer and more difficult to procure, economic alliance
presents itself as one of the solutions. This aims to promote economic improvement and, at the same
time, resolve issues concerning closed economies.

The main objective of economic alliance is to produce economic policies that lead to economic
diversity and growth.

The ASEAN Economic Community (AEC) is one of the more recent examples of economic
alliances formed by countries to promote economic stability and sustainability in their region. In the
AEC, citizens of participating countries are expected to have easier employment access within the
region.

2.2 – National Security

National security is a state or condition where our most cherished values and beliefs, our democratic
way of life, our institutions of governance and our unity, welfare and well-being as a nation and
people are permanently protected and continuous enhanced.

Element Description
1. Sociopolitical Regardless of social differences, societal harmony must be achieved
stability and maintained through the effort of the government, public, and
other institutions.
2. Territorial This refers to the permanent inviolability of our national territory and
integrity its effective control by the government and the state.

Protection from illegal incursions and resource exploitation must be

maintained.
3. Economic Economic equality must prevail considering public interest, dignity,
solidarity and and labor’s welfare.
strength
4. Ecological This refers to the conservation of the environment through initiatives
balance and sustainable development.
5. Cultural This refers to the common set of norms and values rooted from
cohesiveness cultural ethics.
6. Moral-spiritual There should be national cooperation guided by common deeds,
consensus goals, and objectives.
7. External peace Society must be free from threat, violence, war and hostility.
With the growing political clout of several countries, the concept of an all-sovereign state become
threatened. This also poses risks on the maintenance of national security.
 module 10 – nonstate institutions
2.3 – Disaster Mitigation and Risk Reduction

One of the areas where nonstate institutions are actively involved in is disaster response. There
has been an observed increase in weather variability that has caused climate-induced disasters in
human population. This is often associated to Climate Change.

Key elements of Disaster Risk Management

The first step in DRR is the identification or assessment of risks. It involves monitoring,
identifying risk and analyzing vulnerability.

Followed by the prevention and mitigation process, management will set up plans and actions
toward these risks and disasters.

Then warning and notice are provided to the public, which includes evacuation and emergency
planning.

Last, the adaptation, or recovery stage takes place, wherein rehabilitation, reconstruction, and
rescue services happen.

2.4 – Social Development

Social development is one of the goals of every society. Any society that undergoes social
development is expected to move upward or attain progress. Social development entails
productivity, better efficiency, accomplishment, and innovations.

The pursuit of public health equity, or equal access to health systems, is one of the primary foci
of international organizations such as the United Nations Development Programme (UNDP) and
World Health Organization (WHO). Human rights and social justice is the focus of organizations
such as Amnesty International, Save the Children and International Justice Mission. All of these
examples highlight the clamor for social development.

Evaluation: True or False – Write True if the said statement is true, and write False if the statement is false,
on a one-half cross-wised sheet of yellow pad paper.
 module 10 – nonstate institutions

1. Nonstate institutions, are institutions not related to the components of the state.
2. Trade unions and cooperatives are organizations comprising workers and laborers with common goals,
purposes, and interests.
3. Development agencies cater societal issues and problems are not concentrated in a certain society or
within a specific area only.
4. Development agencies are organizations with specific aims and goals.
5. The central role of international organizations is essentially to provide support and assistance through
organized framework to international cooperation.
6. NGOs are non-profit, often voluntary organizations that carry a broad range of social development
functions with and on behalf of people.
7. Local security is a state or condition where our most cherished values and beliefs, our democratic way of
life, our institutions of governance and our unity, welfare and well-being as a nation and people are
permanently protected and continuous enhanced.
8. Social development is one of the goals of every society.
9. The practice of human rights is considered a privilege of every individual in human society, and is
ideally and believed to be distributed equally.
10. Any society that undergoes social development is expected to move upward or attain progress.

Essay: For ten points, write what have you learned about this weekly topic that we have on this interactive
module.

Some Notes:

1. Post-test will be recorded and the instructor will collect your answers.
2. Activities will also be recorded and the instructor will collect your exercises.

Bibliography/References:

Internet Connection, Wikipedia

Understanding Culture, Society and Politics by DIWA Publishing

Maria Carinnes P. Alejandria-Gonzalez, Author