Senior High School

Understanding Culture,
Society, and Politics
Quarter 2 – Module 7:
Forms and Functions of State and Non-
state Institutions
UCSP – Senior High School
Quarter 2 – Module 7: Forms and Functions of State and Non-state Institutions
First Edition, 2020

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 Senior High School

Understanding Culture,
Society, and Politics
Quarter 2 – Module 7:
Forms and Functions of State and Non-
state Institutions
Introductory Message
For the facilitator:
Welcome to the Understanding Society, Culture, and Politics Alternative
Delivery Mode (ADM) Module on Explaining the Forms and Functions of State
and Non-state Institutions.

This module was carefully designed, developed and reviewed by experts

from Tagum City Division to assist you, the parents, or facilitator in helping
the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and
independent learning activities at their own pace and time. Furthermore, this
also aims to help learners acquire the needed 21st century skills while taking
into consideration their needs and circumstances.

As a facilitator, you are expected to orient the learners on how to use

this module. You also need to keep track of the learner’s progress while
allowing them to manage their own learning. Furthermore, you are expected
to encourage and assist the learners as they do the task included in the
module.

For the learner:

Welcome to the Understanding Society, Culture, and Politics Alternative
Delivery Mode (ADM) Module on Explaining the Forms and Functions of State
and Non-state Institutions.

This module was intended for you as learners. The activities and
discussions herein are for you to develop the stated competency. As you
journey through this module, please take your time and pace to accomplish
the needed tasks. You are encouraged to read instructions and directions
comprehensively for you to follow what to do and what to finish.

This learning resource is methodological (meaning, series of activities

and readings need to be done for you to acquire the competency on this
module). This module is easily organized for you to follow. Likewise, you are
encouraged to focus yourself on an activity intended for the day to manage
your time and learning well. Should there be confusions and difficulties, you
may reach your facilitator to ask for it.

Best of learning ahead!

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 Let Us Learn!

Lesson
Forms and Functions of State
1 and Non-state Institutions

At the end of your journey in this lesson, you are expected to achieve the
following objectives:

1. Explain the forms and functions of state and non-state

institutions.
Specifically:
a. Differentiate state and non-state institutions;
b. Identify the forms and functions of state institutions;
c. Determine the forms and functions of non-state institutions;
d. Point out examples of state and non-state institutions; and
e. Realize the value of these institutions in a country.
Day 1

Let Us Try!
This is an initial assessment on your knowledge about the topic.
This is not yet graded. You have just to be honest if you know
the answers or not on the questions below.

I. Choose the letter that corresponds your answer in each item

below.
1. This institution is controlled by the government.
a. State institution
b. Social institution
c. Religious institution
d. Non-state institution

2. This institution is not managed by the government (independent).

a. State institution
b. Social institution
c. Religious institution
d. Non-state institution

3. In times of disaster, some development agencies offer help and relief

to affected countries. What category of development agency is this?
a. Medical aid
b. Foreign aid

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 c. Humanitarian aid
d. Food and supply aid

4. This institution allows the people to deposit and save their money with
corresponding interest.
a. Banks
b. Cooperatives
c. Corporations
d. Lending institutions

5. Which of the following is NOT a cluster of government owned and

controlled corporations (GOCCs)?
a. Cluster A- Financial Institutions
b. Cluster B- Public Utilities, Industrial, Area Development,
c. Cluster C- Cultural, Social, Scientific
d. Cluster D- International Organizations

II. Classify if the following institutions are State Institution (SI) or Non-
state Institution (NSI). Write your answer on the space before the
number.
_____________6. International Conferences of the Red Cross
_____________7. Northern Davao Electric Cooperative
_____________8. National Housing Authority
_____________9. Jollibee Corporations
_____________10. Development Bank of the Philippines
_____________11. Bangko Sentral ng Pilipinas
_____________12. United Nations
_____________13. Cultural Center of the Philippines
_____________14. Green Cross International
_____________15. National Food Authority

Let Us Study
Take a look on the two different institutions in the country
below.

State
Institutions Non-state
Institutions

What differences can you make on these two? Do they serve the same,
different, or shared functions to the welfare of the people? Let us find out.

STATE INSTITUTIONS (or government owned and controlled

corporations ‘GOCCs’) are institutions supposed to address market failures
and correct imperfections. These market failures exist when the allocation of

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goods and services of the free market are not efficient and leads to economic
loss of value. This is why some corporations are installed (charted by special
law) to protect the economy and the public interest of the people. Shown below
are the groups of GOCCs:
Cluster B- Public
Utilities, Industrial,
Cluster A- Financial Area Development, Cluster C- Social,
Institutions Agricultural, Cultural, Scientific
Trading,
Promotional

Cluster A- Financial Institutions are institutions which the government

directly or indirectly owns majority of the capital stock.

Examples:

Bangko Sentral ng Pilipinas (BSP)

It functions as the Philippines’ central monetary
authority. Primarily, the BSP is tasked to provide policy
directions in the areas of money, banking and credit.

Development Bank of the Philippines (DBP)

It provides development banking, financing,
management and remittance services to the agricultural
and industrial enterprises in the country.

Landbank of the Philippines (LBP)

It is the official depository of government funds of the
Philippines. Besides, the LBP is socially mandated to
spur countryside development throughout the country.

Cluster B- Public Utilities, Industrial, Area Development, Agricultural,

Trading, Promotional

Examples:
Light Rail Transit Authority (LTRA)
This is a public transport operator responsible for the
construction, operation and maintenance of the Manila
LRT system in the Philippines.

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 National Housing Authority (NHA)
The institution is tasked to develop and implement a
comprehensive and integrated housing program,
housing development and resettlement for the Filipino
people.

National Food Authority (NFA)

The institution is responsible for ensuring the food
security of the Philippines and the stability of supply
and price of the staple-grain-rice.

Cluster C- Social, Cultural, Scientific

Examples:

Philippine Rice Research Institute (PhilRice)

The institution is a government corporate entity tasked
to undertake national rice research program, with goals
of creating competitive and sustainable rice industry,
improving the income of rice farmers, and expanding
opportunities in rural areas.

Cultural Center of the Philippines (CCP)

The is a government owned and controlled corporation
established to preserve, develop and promote arts and
culture in the Philippines. It is the most comprehensive
and authoritative source of information on Philippine
art and culture.

Philippine Charity Sweepstakes Office (PCSO)

The is a government owned and controlled corporation
mandated to raise funds for health programs, medical
assistance and services and charities of national
characters. The raised collections go to the President’s
Presidential Social Fund to improve the country’s social
welfare.

NON-STATE INSTITUTIONS are institutions and establishments

which are not owned and controlled by the government. These institutions are
free from the interference of any government actions (with the exception of
relevant laws). These establishments vary from their purposes such as for
profit, nonprofit, personal investment, or for financial help. The list below
shows the forms of non-state institutions.

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1. BANKS and CORPORATIONS
Depository of Savings
Banks are places or institutions
where people place or deposit
their money for savings with Payment System
corresponding interest on a given
period of time and, or assets for
safekeeping. Loans to People and
Companies

Can you name some banks found in your locality? Name them now!

Corporation is a company or group of people authorized to act as single

entity (legally a person) and recognized as such in law.

Stock and Non-stock For-profit and Not-for-profit

a) Stock corporation-issue a) For-profit aims to earn for

and share stocks profit and concerned with own
interests
b) Non-stock corporation- does
not issue shares of stock b) Not-for-profit does not earn
profit for owners and concerned
with the public interest
What popular fast food restaurants have you dined with? They are
corporations! What about the internet service and signal providers of your
smartphones? They are also companies that fall on corporations!

2. COOPERATIVES and TRADE UNIONS

Cooperative is a legal entity owned and democratically
controlled by its members. The members may be the
employees, producers, and consumers of products and
services. They share profits and benefits through dividends
and patronage according to their capital shareholdings. The
purpose of cooperatives is established by its members (but
usually to business profits or economic outcomes). However,
it also holds values of honest dealing, integrity, fairness, and
social responsibility.
The Cooperative Development Authority of the Philippines
is the government agency that promotes viability and growth
of cooperatives in the country as instruments of equity, social
justice and economic development.

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What cooperatives existed in your locality or community? They can be found
also in your school canteens or other major groups. Ask your parents if they
subscribed to it too.

Trade Union is an organization whose membership

consists of workers and union leaders, united to
protect and promote their common interests.
Types:
1. Company union- represents the interests of only
one company
2. General /Industrial union- represents the interests
of workers from several companies
3. Craft union- represents the skilled workers (e.g.
carpentry, welding)
Purposes:
1. Negotiate wages and working conditions
2. Regulate relations between workers and employers
3. Raise new demands on behalf of its members
4. Help settle their grievances

Example:
The Trade Union Congress of the Philippines (TUCP), with 480,000
members, is the biggest confederation of labor federations in the Philippines
both in membership and in number of Collective Bargaining Agreements. It
was founded on December 14, 1975 by 23 labor federations which saw the
necessity and importance of uniting themselves into a strong and dynamic
labor center.

3. TRANSNATIONAL ADVOCACY GROUPS

They are self-organized advocacy groups or networks undertaking

voluntary actions across state borders in pursuit of what they deem
public interest.
Their goal is to give the powerless (e.g. poor, women, marginalized
indigenous peoples, consumers, politically vulnerable, etc.) a voice in
domestic and international lawmaking.
Entities that participate in transnational advocacy groups include
non-government organizations, nonstate actors, foundations, social
movements, religious organizations, etc.

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Example:

E-Net Philippines is a national network of civil society organizations

advances education rights of all Filipinos. E-Net is committed to expand and
strengthen people’s participation in pushing for education reforms and
developing alternative learning systems with special concern for the
marginalized, excluded and vulnerable sectors (MEVS).
Advocacies
• Equitable and Inclusive Quality Education and Lifelong Learning for All
• Right to Education
• Positive Discipline
• Governance in Education
• Education Financing

4. DEVELOPMENT AGENCIES

Development Agencies are organizations

committed and dedicated to distributing aid.
Forms:
> Within Government
> Between Government
> Private voluntary organizations

Categories:
>Humanitarian Aid- Helping countries in times
of natural disasters, like sending emergency relief
operations and efforts
>Development/Foreign Aid- Helping countries
to sustainable living, especially poverty reduction.

Example:

International Conferences of the Red Cross is an independent, neutral

organization ensuring humanitarian protection and assistance for victims of
armed conflict and other situations of violence. It takes action in response to
emergencies and at the same time promotes respect for international
humanitarian law and its implementation in national law.

5. INTERNATIONAL ORGANIZATIONS

These are organizations with an international membership, scope or

presence. It includes members from more than one nation.

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 Main Types:
1. International Non-Governmental Organizations (INGOs): non-
government organizations that operate internationally. They are non-
profit organizations.
Green Cross International responds to the combined
Example: challenges of security, poverty, and environmental
degradation to ensure a sustainable and secure future.

2. Intergovernmental or International Governmental

Organizations (IGOs): organizations that are made up primarily by
sovereign states
The(member
Unitedstates.
Nations is an intergovernmental
organization that aims to maintain international peace
Example:
and security, develop friendly relations among nations,
achieve international cooperation, and be a center for
harmonizing the actions of the nations. Philippines is a
member state to this IGO.

Day 2

Let Us Practice
Contrast the following important terms in our lesson. Write your
answer on each shape spaces.

State Institutions Non-state Institutions

Corporations Banks

Humanitarian Aid Foreign Aid

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Day 3

Let Us Practice More

I. List as many banks as you can that you found in your town/city.
Classify them if they are a government financial institution or a
private bank. Write your answers here inside the box.

II. Interview your parents/guardians/relatives to where they deposit

and save their money. Is it through banking or through cooperatives?
Ask them why they chose such. Write the narrative of your interview
below.

Day 4

Let Us Remember
Complete the following sentence starters below with the lesson you
had. Express honest insight on this.

My new learning discovery is

___________________________________________________________________________
___________________________________________________________________________

I want to ask question/s about

___________________________________________________________________________
___________________________________________________________________________

I am interested to learn and read more about

___________________________________________________________________________
___________________________________________________________________________

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 Let Us Assess
Do not go back to the lesson anymore. This is to test whether you
have mastered and understood the lesson you had. You need to
be honest to yourself. Focus and try recalling your lesson.
I. Understand each item below and select the choice that corresponds
your answer.
1. These institutions address market failures (due to inefficient economic
activities in a country).
a. State institutions
b. Social institutions
c. Non-state institutions
d. Economic institutions

2. These institutions serve many purposes (for profit, for personal

investment, or for financial help) which are owned by private entities.
a. State institutions
b. Social institutions
c. Non-state institutions
d. Economic institutions

3. Which government financial institution is mandated to manage and

operate the monetary flow and services in the Philippines?
a. Bangko Sentral ng Pilipinas
b. Bank of the Philippine Islands
c. Land Bank of the Philippines
d. Development Bank of the Philippines

4. Which Cluster B state institution aims at ensuring the food security of

the Philippines?
a. National Food Authority
b. Bureau of Food and Drug
c. National Nutrition Council
d. Food and Drug Administration

5. Which Cluster B state institution implements housing resettlement for

the Filipino people?
a. National Housing Authority
b. Home Development Mutual Fund
c. Social Housing Finance Corporation
d. Housing and Urban Development Coordinating Council

6. Which Cluster C state institution improves the social welfare of the

Filipino people?
a. Social Security System
b. Philippine Offshore Gaming Operator

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 c. Philippine Charity Sweepstakes Office
d. Game Developers Association of the Philippines

7. Which of the following is NOT a function of a bank?

a. Payment system
b. Depository of savings
c. Print money for people
d. Loans to people and companies

8. Which type of corporation where it sells and shares stocks to the

corporation members?
a. Stock corporation
b. For-profit corporation
c. Non-stock corporation
d. Not-for-profit corporation

9. Which government agency monitors the cooperatives in the Philippines?

a. Philippine Cooperative Code
b. Cooperative Development Authority
c. Security and Exchange Commission
d. Office of Transportation Cooperatives

10. Which is NOT a purpose in forming trade unions?

a. Negotiate wages and working conditions
b. Raise new demands on behalf of its members
c. Regulate relations between workers and employers
d. Take over the government decisions and projects concerning labor

II. Tell whether each statement below is true or false. Write your answer
on the space before the number.

__________11. E-Net Philippines is a transnational advocacy group committed

to push educational reforms and development.
__________12. Development agencies can be within the government, between
government, or even private voluntary organizations.
__________13. Other countries help Philippines in times of disasters like
typhoon and earthquake. That is an example of foreign aid
development agency.
__________14. International Non-Governmental Organizations are for non-
profit purposes.
__________15. Philippines is not a member of United Nations.

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Day 5

Let Us Enhance

I. Complete the following organizer with terms that you learned

from this lesson.

Institutions

II. What non-government organizations do you know that helped improve

the living condition of your local community, or to the country? Share
the mission of this organization by writing it below. You may also draw
their organization logo.

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III. Are the state institutions (government) such those mentioned in this
lesson and some others you do know, perform their job well to the
Filipino people which is to uplift them and gain better service? Share
your insights then below.

Let Us Reflect
With government alone, a country or a state will find a hard time
improve its system and service for the welfare of the people. The role
of the state institutions is really to provide service and convenience to its
people. On the other hand, the non-state institutions are a major changer and
contributor to the system and services of a country. With these non-state
institutions, they address additional or compensate lacking efforts of the
government. However, if both institutions continue to uphold their mission
for the better system of services to the people, then this can be a key towards
a progressive country.

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 14
Let Us Enhance Let Us Assess
Part I 1. a
*Tier 1 2. c
State Institutions 3. a
Cluster A-Financial 4. a
Institution 5. a
Cluster B- 6. c
Development… 7. c
Cluster C-Cultural, 8. a
Scientific… 9. b
10. d
*Tier 2 11. true
Non-state Institutions 12. true
Banks & Corporations 13. false
Cooperatives & Trade 14. true
Unions 15. false
Transnational Advocacy
Group
Development Agencies
International
Organizations
Let Us Practice Let Us Try
a) State Institutions are 1. a
controlled by the 2. d
government 3. c
Non-state institutions 4. a
are owned by 5. d
b) Corporations are a 6. NSI
company or group of 7. NSI
people acting as one 8. SI
entity 9. NSI
Bank is a place where 10. SI
people deposit their 11. SI
money with interest. 12. NSI
c) Humanitarian aid is 13. SI
helping countries in 14. NSI
times of need 15. SI
Foreign aid is helping
countries for
sustainable living
Answer key to Activities
 References

Book

Atienza, M., Arugay, A., Franco, J., Quilala, D. & Rico R. Understanding Culture, Society,
and Politics for Senior High School. Philippines: C & E Publishing, Inc., 2016.

Baleña, E., Lucero, D. & Peralta, A. Understanding Culture, Society, and Politics for Senior
High School. Philippines: Educational Resources Corporation, 2016.

Department of Education. Understanding Culture, Society, and Politics Teacher’s

Guide. Philippines: Bureau of Learning Resources (DepEd-BLR), 2016.

E-resources:
(Links of the logos used as they appear in the lesson in sequence)

Bangko Sentral ng Pilipinas logo, accessed from https://upload.wikimedia.org/wikipedia

/commons/0/0b/Bangko_Sentral_ng_Pilipinas_%28BSP%29.svg on July 21,
2020.

Development Bank of the Philippines logo, accessed from https://en.wikipedia.org/wiki/

Development_Bank_of_the_Philippines#/media/File:DBP_company_logo.svg on
July 21, 2020.

Landbank of the Philippines logo, accessed from https://www.google.com.ph/url?sa=i&

url=https%3A%2F%2Fwww.landbank.com%2Fremittance%2Fcash-pickup-
locator&psig=AOvVaw3JRvS8asJiFcIlHHmlmrw8&ust=1592567577863000&sourc
e=images&cd=vfe&ved=0CAIQjRxqFwoTCID5j72ni-oCFQAAAAAdAAAAABAD on
July 21, 2020.

Light Rail Transit Authority logo, accessed from https://www.pngfind.com/mpng/hRoi

Tw_jpg-black-and-white-light-rail-transit-authority/ on July 21, 2020.

National Housing Authority logo, accessed from https://en.wikipedia.org/wiki/National

_Housing_Authority#/media/File:NHA_LOGO.jpg on July 21, 2020.

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National Food Authority logo, accessed from https://en.wikipedia.org/wiki/National_
Food_Authority_(Philippines)#/media/File:New-nfa-logo.png on July 21, 2020.

Philippine Rice Research Institute logo, accessed from https://www.pngitem.com/mid

dle/bmmRx_philrice-logo-graphic-design-hd-png-download/ on July 21, 2020.

Cultural Center of the Philippines logo, accessed from https://en.wikipedia.org/wiki/

Cultural_Center_of_the_Philippines#/media/File:CulturalCenterPH.svg on July 21,
2020.

Philippine Charity Sweepstakes Office logo, accessed from https://en.wikipedia.org/wiki

/Philippine_Charity_Sweepstakes_Office#/media/File:Philippine_Charity_Sweepst
akes_Office_(PCSO).svg on July 21, 2020.

For inquiries or feedback, please write or call:

Department of Education – Region XI

F. Torres St., Davao City

Telefax:

Email Address: lrms.regionxi@deped.gov.ph

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