Understanding Culture, Society and

Politics
NOTES/HANDOUTS
WEEK 10
PART 2
TOPIC: NONSTATE INSTITUTIONS
WHAT IS NONSTATE INSTITUTIONS?
Non-state institutions or also called non-state actors is broadly defined as international actors who are
largely or completely autonomous from the state, emanating from civil society, market economy or
political opportunities.

Non – state actors (NSA) are entities that participate or act in international relations. They are
organizations with sufficient power to influence and cause a change even though they do not belong to
any established institution of a state.

The admission of non-state actors into international relations theory conflicts with the assumptions of
realism and other black box theories of international relations, which argue that interactions between
states are the main relationships of interest in studying international events.

Because of globalization, the following non-state institutions currently play important roles in
international relations.

 Banks and corporations

 Cooperatives and Trade Unions
 Transnational Advocacy groups
 Development agencies
 International organizations
 International organizations
 International non-governmental organizations
 Intergovernmental organizations

BANKS
A Bank is a financial institution that accepts deposits from the public and creates credit.

CORPORATIONS
A corporation is a legal entity that is separate and distinct from its owners. Corporations enjoy
most of the rights and responsibilities that an individual possesses; that is a corporation has the
right to enter into contracts, loan and borrow money, hire employees, own assets and pay
taxes.

COMMERCIAL/RETAIL BANK
Concerned with managing withdrawals and deposits as well as supplying short-term loans to
individuals and small business. (Examples: Landbank/BDO)

INVESTMENT BANKS
Focus on providing services such as underwriting and corporate reorganization to institutional
clients. (Example: BPI investment Funds)

INSURANCE AND COMPANIES

offers insurance policies to the public, either by selling directly to an individual or through
another source such as an employee's benefit plan. An insurance company is usually comprised
of multiple insurance agents. An insurance company can specialize in one type of insurance,
such as life insurance, health insurance, or auto insurance, or offer multiple types of insurance.

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(Examples: McDonalds, P&G, WorldVision, Robinsons Banks, Petron, Bank of China)

COOPERATIVES
Jointly owned enterprise engaging in the production or distribution of goods or the supplying of
services, operated by its members for their mutual benefit, typically organized by consumers or
farmers.

TRADE UNIONS
Also called as labor unions. These organization of workers who have come together to achieve
common goals such as protecting the integrity of its trade, improving safety standards,
achieving higher pay and benefits such as health care and retirement, increasing the number of
employees, and better working conditions.

TRANSNATIONAL ADVOCACY GROUPS

Organizations which are dedicated into influencing political, economic, social and institutional
decisions beyond countries' borders.

DEVELOPMENTAL AGENCIES
Independent organizations, shaped by public and private institutions, whose goal is to help
develop and support economic growth within a specified city, region or state by providing
necessary resources and assistance especially for the most marginal portions of a population so
that they may have opportunities of income and decent employment.

INTERNATIONAL ORGANIZATIONS
Organization with an international membership, scope, or presence.

INSURANCE AND COMPANIES

offers insurance policies to the public, either by selling directly to an individual or through
another source such as an employee's benefit plan. An insurance company is usually comprised
of multiple insurance agents. An insurance company can specialize in one type of insurance,
such as life insurance, health insurance, or auto insurance, or offer multiple types of insurance.
(Examples: USAA, ALLstate, MetLife, Liberty Mutual)

2|UNDERSTANDING CULTURE, SOCIETY AND POLITICS. ALC-SHS