QUARTER 2 – MODULE 7: FORMS AND FUNCTIONS OF STATE AND NON-STATE
INSTITUTIONS State and Non-State Institutions
Types of Legitimacy
Legitimacy is a value whereby something or someone is recognized and accepted as right and proper.
There are three types of legitimacy described by German sociologist Max Weber: traditional,
charismatic and rational-legal.
Traditional legitimacy - derived from the social customs and habits that emphasizes the history of the
authority of tradition.
Charismatic legitimacy – derives from the ideas and personal charisma of the leader.
Rational-legal legitimacy – derives from a system of institutional procedure, where government
institutions establish and enforce law and order in the public interest.
Forms of Legitimate Government
COMMUNISM – the legitimacy of a communist state derives from having won a civil war, revolution or
from having won an election such as presidency of Salvador Allende in Chile. Communist parties based
the arguments supporting the legitimacy of their rule and government upon scientific nature of
Marxism.
CONSTITUTIONALISM – the modern political concept of the constitutionalism establishes the law as
supreme over private will, by integrating nationalism, democracy, and limited government.
DEMOCRACY – In democracy, government legitimacy derives from the popular perception that the
elected government abides by the democratic principles in governing, and thus is legally accountable to
its people.
FASCISM – it based its political legitimacy upon the arguments of traditional authority. It is a political
system headed by a dictator in which the government controls of the people and opposition is not
permitted.
MONARCHY – the divine right of the king establishes legitimacy of the rule of the monarch; legitimacy
also derived from the popular perception and acceptance of monarch as the rightful ruler of the nation
or country.
State is an organized political community living under a single system of government. Often state
and government are used as synonyms. Both words refer to an organized political group that exercises
authority over a particular territory.
The term “state” can also refer to secular branches of government within a state, often as a
manner of contrasting them with churches and civilian institutions.
Non-state Institutions are establishments which are not owned and controlled by the government.
Some non-state institutions are for profit and others are for personal investments and for financial
help.
Banks and Corporations
Banks are places or institutions where people place or deposit their money or savings with
corresponding interest on a given period of time and, or assets for safekeeping. It is either owned by
the government or not. Example of bank owned by the government is the Bangko Sentral ng Pilipinas
while for non-government banks are Bank of Philippine Islands, Metrobank, Chinabank and etc.
Corporations are companies or groups of people authorized to act as a single entity and recognized
as such in law. Usually they are chartered in two kinds; whether or not they can issue stock and
whether or not they are for profit. Examples of government owned and controlled corporations are
Government Service Insurance System, PHILHEALTH and etc., while examples of non-state owned and
controlled corporations are SM Holdings Corporation, San Miguel Corporation and etc.
Cooperatives and Trade Unions
A cooperative is a legal entity owned and democratically controlled by its members. Members often
have a close association with the enterprise as producers or consumers of its products or services, or as
its employees. Examples of these are multi-purpose cooperatives.
Trade Union is an organization whose membership consist of workers and union leaders, united to
protect and promote their common interest. Example of this is the Trade Union Congress of the
Philippines (TUCP).
Transnational Advocacy Groups are fluid and open relationships among knowledgeable, committed
actors like Human Rights, Consumer Rights, Women’s Rights and etc. While development agency is an
organization committed or dedicated to distributing aid like USAID, AUSAID, JICA, Ducere Foundation
and Red Cross, International Organization is an organization with an international membership, scope
or presence which has two main types, the International Non-Governmental Organization (INGO) and
International Governmental Organization (IGO) or Intergovernmental Organizations.