NON STATE

INSTITUTION
WHAT IS NON STATE INSTITUTION ?
 This are groups and
organizations which operate
outside the support of any state or
government.
 They are referred to be
‘stateless’ since they are
considered to be independent of
any state, although, they usually
collaborate with the government in
implementing projects.
 Non-state institutions
assume different functions and
focus on a specific objective. In
general, they develop certain
services needed by members of the
society for their progress.
THERE ARE DIFFERENT NON-STATE
INSTITUTIONS THAT OPERATE IN
SOCIETY.

Banks and Corporation

Cooperative and Trade Unions
Traditional Advocacy Group
Development Agencies
International Organization
BANKS
 Banks define as a financial
institution licensed to provide
several financial services to
different types of customers. Banks
are in operation mainly for their
deposit and lending function.
 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.
MOST COMMON TYPES
OF BANKS:
 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.
Commercial Bank is 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.
Investment / Industrial
Bank provide medium and long-
term loans and deposits to
business industries.
Agricultural Banks is a caters to
the financial needs of farmers and
the farming industry. They provide
short-term and long-term loans to
facilitate agricultural activities.
CORPORATION
Corporation is an organization,
created by a group of people
known as shareholders, which is
legally recognized to act as a single
person in carrying out certain goals
and objectives.
 As a ‘legal person’, a
corporation is mandated to enjoy
the rights, privileges, and
responsibilities of an individual.
Using its own name, a corporation
has the right to enter into contracts,
to hire employees, and to loan and
borrow money. It is also authorized
to have its own assets.
TYPES OF
CORPORATIONS:
Business corporation is created
to operate and to generate profit.
Companies like McDonald’s and
Starbucks are examples of a
business corporation.
Non-profit corporation is
established with a purpose of
serving the public rather than
pursuing profits.
C-corporation is a corporation
whose income is taxed through the
corporation.
S-corporation is taxed through its
shareholders. An S-corporation can
only have less than 100
shareholders, unlike C-corporation
which can have an unlimited
number of shareholders.
BANKS, CORPORATIONS AND THEIR
SOCIAL IMPLICATIONS
 Banks and corporations both
play a part in the economic growth of
society. As mentioned earlier, financial
intermediation in a bank allows the
institution to issue loans to borrowing
customers (individual or group) who
need money for their investment, at a
higher interest rate.
COOPERATIVES
 According to the
International Labor Organization
(ILO),it is “an autonomous
association of persons united
voluntarily to meet their common
economic, social, and cultural
needs and aspirations, through a
jointly owned and democratically
controlled enterprise”.
Cooperatives are mainly structured to
benefit its members and to satisfy its
members’ needs.
In a cooperative, the people who use its
products or services are the same
people who own and control the
organization.
Cooperatives exist among different
industries and are composed of
different types of people, may it be
farmers, consumers, or workers.
 There are several principles
that uniquely characterize this non-
state institution. It is an essential
characteristic of a cooperative that
its owners and financers are also
the people who use the
cooperative.
 In a typical cooperative, the
customers are also the ones who
own the organization. These
members or users are also the
ones who have control over the
cooperative.
The International Cooperative
Alliance principles:
voluntary and open membership
 democratic member control
member economic participation
autonomy and independence
education, training and information
cooperation among cooperatives
concern for the community.
TYPES OF
COOPERATIVES
Credit Cooperative - it provides
financial services to its members,
including securing savings and
creating funds to be used for
issuing loans.
Consumer Cooperative - It
operates mainly to obtain and
distribute products and
commodities to its customers, both
members and non-members.
Producer cooperatives - is an
aids those in the sector of
production, either agricultural or
industrial. A subtype of a producer
cooperative is agricultural
cooperatives which help producers
or farmers in marketing their crops
as well as in purchasing supplies
needed for further production.
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.
Multi-purpose Cooperative - it
undertakes two or more functions
of different cooperatives. For
example, multi-purpose
cooperative could act as a
consumer cooperative and
establish a supermarket. At the
same time, it could also provide
financial services like a credit
cooperative.
TRADE UNIONS
 A trade union or labor
union is an organization with a
membership composed of workers
or employees from related fields,
which aim to represent the interests
and rights of its members, both in
the workplace and in the society.
TYPES OF TRADE
UNIONS
General Union - it represents
workers with a range of jobs and
skills, from different industries and
companies. An example of this type
of union is a trade union of drivers,
janitors and office workers.
Industrial Unions - are composed
of workers from one particular
industry, across different levels of
the hierarchy. A trade union of all
employees who work in the mining
industry (with different levels and
positions) is an example of an
industrial union.
Craft Union - it seeks to represent
skilled workers doing the same
work who may be employed in
different industries. A craft union of
carpenters is one example.
White-Collar Union - is composed
of professionals doing similar jobs
across different industries. A trade
union of teachers and professors is
an example of a white-collar union.
TRANSNATIONAL
ADVOCACY
GROUPS
 The word ‘transnational’
denotes something that goes beyond
one’s national borders. ‘Advocacy’ can
be defined as issues or causes that
are being defended or supported by a
certain group of people known as
advocates. A ‘group’, as you were
familiarized in previous lessons, is
generally defined as a collection of
individuals with significant relations
among each other.
 Transnational Advocacy
Group is a 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.
FUNCTION AND
STRATEGIES
The main function of a
transnational advocacy group is the
creation and development of
advocacies and campaigns about
certain causes, issues, ideas,
values and beliefs.
These campaigns aim to motivate
changes in policies, which are
necessary for the betterment of
people involved.
Since this non-state institution do
not have inherent power to make
instant policy changes in the state,
they use, instead, the power of
information dissemination, together
with other strategies, to influence
state actors who are in legitimate
position to create such changes.
KECK AND SIKKINK
FOUR TACTICS
Information Politics is the ability
to produce and circulate accurate
and credible ideas and information
to persuade people and motivate
them to take action.
Symbolic Politics is the ability of
the group to interpret and use
symbols or stories in such a way
that it would emphasize the issue at
hand. They provide explanations
about an event and connects it to
the specific cause.
Leverage Politics enables
transnational advocacy groups to
use some form of leverage, to tap
and influence target actors that are
powerful enough to institute policy
changes.
Accountability Politics happens
as transnational advocacy groups
convince state actors to change
their position about certain issues,
and persuades them further to act
upon their verbal support about
certain issues.
DEVELOPMENT
AGENCIES
Development Agencies refer as
groups or entities that are tasked
and committed to pursue certain
developmental agendas of a state.
They are an institution that provides
help in support of a state’s
economic growth and social
progress.
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,
post- war.
ROLES OF
DEVELOPMENT
AGENCIES
Organization for Economic
Cooperation and
Development (OECD)
A. Strategic roles such as
coordinating with local actors and
international donors, monitoring the
local economy, and strategic
planning for economic and local
development.
B. Asset and Investment roles
such as land and property
management, funding and
investing in local development
projects, income generation, and
provision of grants or donations for
other organizations.
C. Innovation, Enterprise, Skills,
and Employment roles which
include workforce and skills
development, employment creation,
and support of small and medium
scale businesses.
D. Promotional roles, like foreign
investment promotions and project
management.
E. Capacity Building roles which
include providing technical
assistance to other local
development organizations and
informing them of good practices
and models.
INTERNATIONAL
ORGANIZATION
 International organization is an
umbrella term used to refer to
institutions established by three or
more states as voluntary members,
formed through a formal agreement or
treaty, in order to promote cooperation
and coordination among them.
Members of an international
organization work together for the
development and management of their
common interests.
SIGNIFICANCE OF
INTERNATIONAL
ORGANIZATIONS
 International organizations
provide an avenue for different
countries and states to connect.
This connection among countries
help form international laws, norms,
and ideas, which in turn strengthen
the relationship among member
states. These norms also serve as
guides on how to regulate and
manage these member states.