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UNDERSTANDING CULTURE,
SOCIETY AND POLITICS
Semester I/II - Week 6
Forms and Functions of State
and Non-State Institutions

CONTEXTUALIZED LEARNING ACTIVITY SHEETS

SCHOOLS DIVISION OF PUERTO PRINCESA CITY
UNDERSTANDING CULTURE, SOCIETY AND POLITICS – Grade 12
Contextualized Learning Activity Sheets (CLAS)
Semester I/II - Week 6: Forms and Functions of State and Non-State Institutions
First Edition, 2020

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Lesson
Forms and Functions of State
and Non-State Institutions
MELC: Explain the forms and functions of state and non-state institutions.

Objectives: 1. Define state and non-state institutions.

2. Differentiate state and non-state institutions.
3. Explain the forms and functions of state and non-state institutions.

Let’s Explore and Discover

Bbbfffffffffffffffffffffffffdfdfd
Unlocking Dificulties:
The States is the highest form of human
association. It is necessary because it comes
State is an organized political
into existence out of the basic needs of life. It
community living under a single
continues to remain for the sake of good life.
system of government. Often state
According to Woodrow Wilson, “State is a
and government are used as
people organized for law within a definite
synonyms. Both words refer to an
territory. Aristotle defined the state as a
organized political group that
“union of families and villages having for its
exercises authority over a particular
end a perfect and self-sufficing life by which it
territory.
meant a happy and good life”.

The state is an institution whose functions are carried out by the government. Its
primary functions are maintenance of peace and order and the regulation and control of
the lives of the people as well as addressing the needs of the citizenry to a certain degree
of social order (Panopio, 1994). But there are various needs and services of the people
which cannot be provided immediately by the government due to limited
funds/resources.

Welfare of State
Under this system, the welfare and well-being of its citizens is the responsibility of
the state. Such a government is envolved in citizens lives at every level. The most of the
modern democratic countries are welfare state. The welfare state is a society in which an
assured minimum standard of living and opportunity becomes the possession of every
citizen.

Characteristics of Welfare State

1. Ensure Social Security- It is a mixed economy, where a combination of capitalistic
and socialisticfeatures exists, and which the government plays a dominant role in
controlling the economic activities and social welfare of the people.
2. Socialistic in Nature- It is based on the principles of equality and is keen to provide
equal opportunity to all. It also aims to ensure equitable distribution of wealth.
3. Controls over all the economic activities- In a welfare state, all the private
enterprises are regulated by the government.

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Features of the Welfare State:
1. Universal programs in health, education, and a few income benefits and social
services.
2. Social insurance programs for employment and retirement.
3. Targeted programs for peoples’ welfare.
4. Tax levels, tax expenditures measures.
5. Private occupational benefits.
6. Charitable and nonprofit community activities.
7. Family relationships and support others.

Functions of State:
Internal Functions External Function

 Protective Function  Defense and Security

 Legal Order  Armed forces
 Protection of Human Rights and  Defense Infrastructure
freedom  Participation in Military
Alliances
 Regulative Function  Foreign Policy and International
 Economic Relations Cooperation
 Financial Relations  To maintain diplomatic
 Tax Relations relations with other
 Social Relations countries
 Cultural Relations

The main functions are maintaining law, order and stability, resolving various
kinds of disputes through the legal system, providing common defence, and looking out
for the welfare of the population in ways that are beyond the means of the individual,
such as implementing public health measures, providing mass education and
underwriting expensive medical research.

(Source: “The Myth of the Welfare State,” books.google.com, accessed September 22,
2020, https://tinyurl.com/y6m2lhxx.)

Non-state Institutions, from the World Bank (WB) perspectives, also termed as
non-government organizations or NGOs, refers to groups and institutions that are entirely
or largely independent from the government and characterized primarily by humanitarian
and cooperative rather than commercial activities. Specially, it refers to private
organizations that pursue activities to relieve suffering, promote the interest of the poor,
protect the environment or undertake community development.

Furthermore, these are people and organizations that participate in international

affairs and relations, but are not affiliated with any state or nation. They are referred to
be independent of any state, although, they usually collaborate with the govrnment 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.

(Source: “The Rise of Non-State Actors in Global Governance,” acuns.org, accessed

September 22, 2020, https://tinyurl.com/y2ef5ys3.)

There are different non-state institutions that operate in society:

A. Banks And Corporation D. Development Agencies
B. Cooperatives And Trade Unions E. International Organization
C. Transnational Advocacy

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A. BANKS AND CORPORATION
Banks and Corporations are two of the important economic institutions. The
establishment authorized by a government to accept deposits, pay interest, clear checks,
make loans, act as an intermediatry in financial transactions and provide other financial
services to its customers are called banks.

A.1. Bank is defined as financial instituitions that accept deposits from citizens and
pay interest in return. Banks also provide loans, at a higher interest rate, to customers
who need money either for personal consumption or for invesment and business.
Furthermore, banks also act as a custodian of customer’s money, which help guarantee
the safety of each deposit. The types of Banks are as follows:
is a type of bank that focuses on consumers or the general public as
Retail Bank its customers. Retail banks can be considered to be the most common
and widespread of all the types of banks.
focuses on businesses and businessmen as its main customers.
Commercial Commercial banks provide short term loans for businessmen to be
Bank used for investment purposes.
Industrial provides medium and long-term loans and deposits to business
Bank industries.
the name suggests, caters to the financial needs of farmers and the
farming industry. They provide short-term and long-term loans to
Agricultural facilitate agricultural activities. Loans from this type of bank are used
Banks for buying seeds, fertilizers, land, or any materials needed for farming.
An agricultural country such as the Philippines is unsurprisingly
abundant of agricultural banks.

(Source: “Banks,” socialstudieshelp.com, accessed on September 23, 2020,

http://www.socialstudieshelp.com/Eco_Bank_Types.htm.)

A.2. 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. The types of coporations are as follows:

Business is created to operate and to generate profit. Companies like

Corporation McDonald’s and Starbucks are examples of a business corporation.
Non-Profit is established with a purpose of serving the public rather than
Corporation pursuing profits.
C-Corporation income is taxed through the corporation itself
taxed through its shareholders. An S-corporation can only have less
S-Corporation than 100 shareholders, unlike a C-corporation which can

B. COOPERATIVES AND TRADE UNIONS

B.1. Cooperative is a duly registered association of persons, with a common bond of
interest, who have voluntarily joined together to achieve a lawful common social or
economic and making equitable contributions to the capital requirements and accepting
a fair share of the risks and benefits of the undertaking in accordance with university
accepted cooperative principles (Article 3, Republic Act 36938). A cooperative is a legal
entity owned and democratically controlled by its members.

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 The following are some the types of cooperatives:
Credit Thrift among its members and creates funds in order to grant loans.
cooperative
Consumer aims to procure and distribute commodities to members and non-
cooperative members.
Producers’ Undertakes joint production(agriculture or industrial.
cooperative
Marketing engages in the supply of production inputs to members and markets
cooperatives their products.
engages in medical and dental care, hospitalization, transportation,
Service
insurance, housing, labor, electric light and power, communication,
cooperative
professional and other services.
Multi- purpose combines two (2) or more of the business activities of these different
cooperatives types of cooperatives.
is a primary cooperatives which promotes and advocates
cooperativism among its members and the public through socially-
Advocacy oriented projects, education and training, research and
cooperatives
communication, and other similar activities to reach outbits
intended beneficiaries.
is organized by marginals farmers majority of which are agrarian
Agrarian
beneficiaries for the purpose of developing an appropriate system of
reform
land tenure, land development, land consolidation or land
cooperative
management in areas covered by agrarian reform.
Cooperative is one organized for the primary purpose of providing a wide range
bank of financial services to cooperatives and their members.
is organized for the primary purpose of owning and operating
Education licensed educational institutions, not with standing the provisions
cooperatives of Republic Act No. 9155, otherwise known as the Governance of
Basic Education Act of 2001.

B.2. Trade Union It works to help workers like fairness of pay, good working
environment, hours of work and benefits. A trade union may be:
company union represent interest of only one company and may not have any
connection with other unions. Also called house union, a company
union is often a bogus one and is generally illegal.
general union represents workers from several companies in the same industry.
This is also called industrial union.
craft union represents skilled workers in particular field such as carpentry or
welding.

C. TRASNATIONAL ADVOCACY GROUPS

Transnational Advocacy groups/network are fluid and relationship among
knowledgeable, committed actors (individual and organizations). These relationships
span nation-state boundaries. They differ from other types of network in that they exist
to change international policy as well as make these changes real in the day-to-day lives
of ordinary people.

Examples of the kinds of issues that motivate advocacy networks include:

1. Human rights
2. Consumer rights
3. Women’s rights
4. Environmental issues,
5. International peace.

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D. DEVELOPMENT AGENCIES
A Development Agency is an organization committed/dedicated to distributing aid.
It refers to an agency whose goal is to help develop and support economic growth within
a specified city, region or state by providing necessary resources and assistance. Their
purpose is to promote economic growth and development in the areas they serve.
International Committee of the Red Cross id the world’s oldest humanitarian organization
and is unique in being mandated by international treaty to uphold the Geneva
Conventions.

Aid can be subdivided into two categories: humanitarian aid (emergency relief efforts,
e.g. in response to natural disasters), and development aid (or foreign aid), aimed at
helping countries to achieve long-term sustainable economic growth, with the aim of
achieving poverty reduction.

Four different elements of Development Agency activity are identified by Organization

of Economic Cooperation and Development (OECD):
1. Economic Roles – where Development Agencies seek to build markets within their
territories. This involves interdiating with investment, assets, infrastructure, land,
property, finance, planning, and marketing/promotion.
2. Leadership Roles – where the Development Agencies plays a key role in fostering a
long term plan and vision for the territory, galvanizing the interests of multiple leaders
and setting out a new future around which resources can unite.
3. Governance and Coordination Roles –facilitate practical co- ordination towards the
pursuit of the development strategy, helping to overcome the limitation of fragmented
multiple jurisdiction and responsibilities in the public sector, and providing a means
for practical engagement with the private and civic sectors. In this role the
Development Agency is the chief practical mechanism for co-ordination muliti-lateral
action.
4. Implementation Roles – where the Development Agency can assemble dedicated
and capable teams to focus solely on puruing the development strategy. This will
involve comple project management and finance skills, business/ investor facing
service, and the ability to design and use new tools quickly. This is a case of
addressing capacity constraints in the public sector.

E. International Organization
The word 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. There two main types:
International Non- Non-governmental organizations (NGOs) that operate
government internationally. These include international non-profit
Organizations organizations and worldwide companies such as the Wrold
(INGOs) Organization of the Scout Movement, International
Committee of the Red Cross and MEdecins Sans Frontieres.
Intergovernmental The type of organization most closely associated with the term
Organizations or ‘international organization’, these are organizations that are
International made up primarily of sovereign states (referred to as member
Governmental state). Notable example include United Nation (UN).
Organizations (IGOs)

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 Let’s Practice

Activity 1
Directions: Fill in the blanks with correct words listed inside the box below to complete
the sentence.

Humanitarian aid Service Cooperative

Non-state Institution Transnational Advocacy
C-corporation

1. It engages in medical and dental care, hospitalization, transportation, insurance,

housing, labor, electric light and power, communication, professional and other
services. This type of cooperative is called ________________________.

2. ________________________ refers to groups and institutions that are entirely or

largely independent from the government and characterized primarily by
humanitarian and cooperative rather than commercial activities.

3. In this type of corporation, income is taxed through the corporation itself. It is

called _________________________.

4. ____________________ groups/ network are fluid and relationship among

knowledgeable, committed actors (individual and organizations).

5. Aid given by Development Agencies can be subdivided into two categories:

____________________ (emergency relief efforts, e.g. in response to natural
disasters), and development aid (or foreign aid).

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 Activity 2

Directions: Read and understand each statement and choose the corresponding
concept about non-state institution in the box below. Write the letter of
the correct answer before the number.

A. International Governmental B. Cooperative Bank

Organizations (IGOS)
C. Transnational Advocacy Group D. Advocacy Cooperatives
E. Development Agencies F. Trade Union
G. Cooperative H. International Organization
I. Marketing Cooperatives J. Banks
K. Corporation L.

________1. Defined as financial instituitions that accept deposits from citizens and pay
interestin return. It has intrepreneurial nature thus, profit driven entities.

________2. It is an organization whose membership consists of workers and union leaders,

united to protect and promote their common interests.

________3. An organization committed/dedicated ton distributing aid. It refers to an

agency whose goal is to help develop and support economic growth within a
specified city, region or state by providing necessary resources and assistance.

________4. The type of organization most closely associated with the term ‘international
organization’, these are organizations that are made up primarily of sovereign
states

________5. Primary cooperatives which promotes and advocates cooperativism among its
members and the public through socially-oriented projects, education and
training, research and communication, and other similar activities to reach
outbits intended beneficiaries.

________6. It is a legal entity owned and democratically controlled by its members.

________7. Groups/ network are fluid and relationship among knowledgeable, committed
actors (individual and organizations). These relationships span nation-state
boundaries.

________8. Is an umbrella term used to refer to institutions established by three or more

states as voluntary members, formed through umbrela formal agreement or
treaty, in order to promote cooperation and coordination among them.

________9. A type of cooperative that engages in the supply of production inputs to

members and markets their products.

________10. It is organized for the primary purpose of providing a wide range of financial
services to cooperatives and their members.

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 Let’s Do More
Activity 1

Directions: Based on the primary meaning of state and non-state institution, list
down the differences and similarities of the two in a venn diagram below.

STATE NON-STATE

Similarities

Differences Differences

Activity 2

Directions: Identify which of the non-state institutions does the following sub types,
principles and elements belong. Choose your answer from the
optionsbelow. Write the letter of your answer in the space provided before
the number.

A. Banks And Corporation D. Development Agencies

B. Cooperatives And Trade Unions E. International Organization
C. Transnational Advocacy

________1. Service Cooperative ________6. Environmental Issue

________2. Retail Bank ________7. Business Corporation
________3. IGOs ________8. Leadership Roles
________4. Human Rights ________9. General Union
________5. Cooperative Bank ________10. Economic Roles

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 Let’s Sum It Up

Directions: Fill in the graphic organizer ranking the five most relevant state and
non-state institution based on their functions and need of your
community.

Functions Why?

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 Let’s Assess

Directions: Read each item carefully and write the letter of the correct answer on the
space provided.

_______ 1. It is an established official organization having an important role in the life of a

country, such as bank, church or legislative, and humanly devised constrains
that structure political, economic, social interactions, stable, recurring patterns
of behavior is called?
A. Institution C. Non-state
B. State D. Non-Government organization

_______ 2. It is a political community that has sovereign jurisdiction over a clearly defined
territory and exercise authority through several institutions including the
government is called?
A. Institution C. Non-state
B. State D. Non-Government organization

_______ 3. It is an establishment which is not owned and controlled by the goverment, its
for profit and non-profits and some are for personal investment and for financial
help. Which is referred to?
A. Institution C. Non-state
B. State D. Non-Government organization

_______4. Which is not a state policy?

A. Giving peace and order and of the lives of the people.
B. Giving priority to the teaching of the English language.
C. Giving priority to education, science, teaching arts, culture and sports.
D. Giving protection and promotion of economic and social well-being of its
citizens.

_______ 5. What are the two important economic institutions?

A. Banks and Institution C. State and Banks
B. Banks and Corporations D. State and Non-state

_______ 6. Which of the following is an organization created by a group of people known

as shareholders, which are legally recognized to act as a single person in carrying
out certain goals and objectives?
A. Bank C. Corporation
B. Cooperative D. Trade Union

_______ 7. Which type of cooperative enables you to secure loans for productive and
provident purposes?
A. Credit Cooperatives C. Service Cooperative
B. Consumer Cooperative D. Producers’ Cooperative

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_______ 8. Your ”Paluwagan” evolves into a credit cooperative, your school canteen has
also become a cooperative. Which type of cooperative would that be?
A. Credit Cooperatives C. Service Cooperative
B. Consumer Cooperative D. Producers’ Cooperative

_______ 9. You came to the seminar venue by riding on a taxi. According to the taxi
driver, the company he is working with is managed by a transport cooperative.
Under which type of cooperative does this transport cooperative fall?
A. Credit Cooperatives C. Service Cooperative
B. Consumer Cooperative D. Producers’ Cooperative

_______ 10. The teachers of a school want to associate, they have their savings, and they
wanted to use the fund as soon as possible to grant loans to members to
capitalize and operate the school canteen. What type of cooperative will they
organize and register?
A. Credit Cooperatives C. Service Cooperative
B. Consumer Cooperative D. Producers’ Cooperative

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 Answer Key

Let’s Practice:
Activity 1
1. Service Cooperative
2. Non-state Institution
3. C. corporation
4. Transnational Advocacy
5. Humanitarian Aid

Activity 2
1. J 6. B
2. F 7. C
3. E 8. H
4. A 9. I
5. D 10. G

Let’s Do More:
Activity 1
*answers may vary

Activity 2
1. B 6. C
2. A 7. A
3. E 8. B
4. C 9. B
5. B 10.D

Let’s Sum It Up:

*answers may vary

Let’s Assess:
1. 2. 3. 4. 5.
6. 7. 8. 9. 10.

References
WEBSITES

Books.google.com. “The Myth of the Welfare State.” accessed September 22, 2020.
https://tinyurl.com/y6m2lhxx.

Acuns.org. “The Rise of Non-State Actors in Global Governance.” accessed September 22. 2020,
https://tinyurl.com/y2ef5ys3.

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