Lesson 24: Non-State Institutions

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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.

International and Transnational Organizations

International Organizations are institutions that aim to unite different

states toward a common good. On the other hand, transnational
organizations transcend boundaries and states to bring together people
and groups of different culture for a specific goal.

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There are significant number of international and transnational
organizations in the world. They can be in the form of a developmental
agency, advocacy groups, banks and corporations.

I. Development Agencies

The establishment of development agencies can be found in history. In

the Second World War,many countries had been grounds for attacks and
bombings which resulted to crises such as starvation and food scarcity,
among others.

Because of these, many European countries saw the need for the
creation of an organization that would attend to the crises brought
about by the war.

In general, we refer to development agencies 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.

United Nations

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ainable-development/

The United Nations is an international organization founded in 1945. It is

currently made up of 193 Member States.

The mission and work of the United Nations are guided by the purposes
and principles contained in its founding Charter.

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United Nations is committed to maintaining international peace and
security, developing friendly relations among nations and promoting
social progress, better living standards and human rights.

The Following are Some of the development agencies under the United
Nations:

1. United Nations Educational, Scientific, and Cultural Organization

(UNESCO)

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ce

UNESCO’s mission is to contribute to the building of a culture of peace,

the eradication of poverty, sustainable development and intercultural
dialogue through education, the sciences, culture, communication and
information.

UNESCO works to create the conditions for dialogue among civilizations,

cultures and peoples, based upon respect for commonly shared values.
It is through this dialogue that the world can achieve global visions of
sustainable development encompassing observance of human rights,
mutual respect and the alleviation of poverty, all of which are at the
heart of UNESCO’s mission and activities.

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UNESCO focuses on a set of objectives in the global priority areas
“Africa” and “Gender Equality”

And on a number of overarching objectives:

 Attaining quality education for all and lifelong learning

 Mobilizing science knowledge and policy for sustainable
development
 Addressing emerging social and ethical challenges
 Fostering cultural diversity, intercultural dialogue and a culture
of peace
 Building inclusive knowledge societies through information and
communication

2. United Nations Development Programme (UNDP)

UNDP works in about 170 countries and territories, helping to achieve

the eradication of poverty, and the reduction of inequalities and
exclusion.

We help countries to develop policies, leadership skills, partnering

abilities, institutional capabilities and build resilience in order to sustain
development results

UNDP advocates for change and connects countries to knowledge,

experience and resources to help people build a better life.

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3. United Nations Children’s Fund/International Children’s Emergency
Fund (UNICEF)

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e54da7e

It is a special program of the United Nations (UN) devoted to aiding

national efforts to improve the health, nutrition, education, and general
welfare of children.

UNICEF was created in 1946 to provide relief to children in countries

devastated by World War II. After 1950 the fund directed its efforts
toward general programs for the improvement of children’s welfare,
particularly in less-developed countries and in various emergency
situations.

UNICEF has concentrated much of its effort in areas in which relatively

small expenditures can have a significant impact on the lives of the most
disadvantaged children, such as the prevention and treatment of disease.
In keeping with this strategy, UNICEF supports immunization programs
for childhood diseases and programs to prevent the spread of HIV/AIDS;
it also provides funding for health services, educational facilities, and
other welfare services.

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II. Banks and Corporations

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Bank
The term ‘bank’ has no single definition for many authors have provided
their own definition of it. For the purposes of uniformity, we define a
bank 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.
Customers are allowed to deposit their money to banks which grow
through an interest rate. Banks also provide loans, at a higher interest
rate, to customers who need money either for personal consumption or
for investment and businesses.

This process of taking in deposits and lending them to customers in need

is called financial intermediation. This means that the bank serves as a
connecting link between its depositors and borrowers of money.

Corporation
A 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.

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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.

The Following are the biggest banks in the world:

1. International Monetary Funf (IMF)

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The IMF’s main goal is to ensure the stability of the international

monetary and financial system. It helps resolve crises, and works with its
member countries to promote growth and alleviate poverty.

It has three main tools at its disposal to carry out its mandate:
surveillance, technical assistance and training, and lending. These
functions are underpinned by the IMF’s research and statistics.

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IMF offers technical assistance and training to help member countries
strengthen their capacity to design and implement effective policies.
Technical assistance is offered in several areas, including fiscal policy,
monetary and exchange rate policies, banking and financial system
supervision and regulation, and statistics.

2. World Bank

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The World Bank is an international financial institution that provides

loans to the countries of the world for capital programs.

World Bank functions as as an international organization that fights

poverty by offering developmental assistance to middle-income and
low-income countries.

By giving loans and offering advice and training in both the private and
public sectors, the World Bank aims to eliminate poverty by helping
people help themselves. Under the World Bank Group, there are
complimentary institutions that aid in its goals to provide assistance.

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3. World Trade Organization (WTO)

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The World Trade Organization ( WTO ) is an intergovernmental

organization that regulates international trade.

The objectives of WTO includes:

 Enforcing rules for international trade

 Monitoring trade liberalization
 Resolving trade disputes (DSU)
 Increasing transparency of decision-making
 Corporate with other major international economic institutions
 Help developing countries benefit fully from the global trading
system

The decisions that are made at the WTO operates as a rule-base and it is
also a member driven organization. All major decisions are made by
membership as a whole.

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4. Asian Infrastructure Investment Bank (AIIB)

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The Asian Infrastructure Investment Bank (AIIB) is a multilateral

development bank with a mission to improve social and economic
outcomes in Asia.

The United Nations has addressed the launch of AIIB as having potential
for "scaling up financing for sustainable development" and to improve
the global economic governance.

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III. Multinational Companies

A multinational corporation is a corporate organization that owns or

controls production of goods or services in at least one country other
than its home country.

A multinational corporation or worldwide enterprise is a corporate

organization which owns or controls production of goods or services in
at least one country other than its home country.

Such companies have offices and/or factories in different countries and

usually have a centralized head office where they coordinate global
management. Very large multinationals have budgets that exceed those
of many small countries. Multinational corporations are sometimes
referred to as transnational, international or stateless corporations.

IV. Transnational Advocacy Groups

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: nonstate actors,
NGOs, transnational advocacy networks.

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Examples of Transnational Advocacy Groups are: Greenpeace, Oxfam
International, aand Amnesty International.

V. Cooperatives and Trade Unions

Cooperatives
It is an association which provides services on a nonprofit basis to its
members. It is an effective machine to foster economic growth under
the principle and values of cooperation, which is abundant in most rural
communities worldwide.

Cooperatives banks are owned by members (usually their customers)

rather than shareholders. As a result they prioritize maximizing customer
value over profits, and they typically focus on high street banking. To
achieve economies of scale while retaining their local roots and
accountability they often collaborate in networks to pool resources and
share services.

Labor Union
The term “Labor Union” is used to describe an organization of workers,
who have banded together officially to bargain with an employer to
obtain a contract specifying working conditions and compensation on
behalf of the workers themselves.

In the absence of a union, the company may negotiate wages and

benefits on an individual basis, or impose conditions and compensation
arbitrarily. This of course leaves the employee or worker, literally
powerless, as an individual has very little influence over the
management of a company. However, when all of the employees speak
through the Union, and bargain for their benefits, compensation, and
rights “collectively”, the workers increase their influence considerably.

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Photo from Philstar

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