ECONOMIC

INSTITUTION
Group #6
ICT –

Group Members:
*Regachuelo Rod, lorenz
*Reforma,Aaron

Submitted To:
Miriam Entines
Economic Institutions
An economic institution provides the distribution of goods and
services to the members of the society. There have five parts of
essential for the economic system to function accurately. These are
production system, a service system, distribution system, consumers
system and a system of exchange.
The most important function of an economic institution is the production
and distribution of goods and services. It also influences the culture and affects
social stratification.

Reciprocity (Cultural Anthropology)

Reciprocity refers to the non-market exchange of goods or labor
ranging from direct barter to forms of gift exchange where a return is
eventually expected as in the exchange of birthday gifts. Reciprocity
is said to be the basis of most non-market exchange.
 When the exchange is delayed, it creates both a relationship as
well as an obligation for a return some forms of reciprocity can
establish hierarchy if the debt is not repaid. Some forms of reciprocity
are thus closely related to redistribution, where goods and services are
collected by a central figure for eventual distribution to followers.

Transfer
Transfer may involve an exchange of funds when it involves a
change in ownership, such as when an investor sells a real estate
holding. In this case, there is a transfer of title from the seller to the
buyer and a simultaneous transfer of funds, equal to the negotiated
price, from the buyer to the seller.
A transfer of funds from one account to another, where both
accounts are held by the same individual, Examples of such transfer
would be funds transferred from a checking account to a savings
account that offers higher rates of interest or from a savings account
to an IRA.

Redistribution (Cultural Anthropology)

Redistribution refers to a system of economic exchange
involving the centralized collection of goods from members of a
group followed by the distribution of those goods among those
members. It is a form of reciprocity.
Redistribution of property therefore occurs where properties are
allocated back to individuals or groups within society either through
the provision or public serices or directly through welfare benefits.

Market Transaction
 Market transactions provide the basic data used by number
crunchers at the National Economic Development Authority to begin
the estimation of GDP.

Market
An actual or nominal place where forces of demand and supply
operate, and where buyers and sellers interact to trade goods, services,
or contracts or instruments, for money or barter is called a market.
Markets include mechanisms or means for:
(1) communicating the price information,
(2) determining price of the traded item,
(3) facilitating deals and transaction, and
(4) Effecting distribution.
The market for a particular item is made up of existing and potential
customers who need it and have the ability and willingness to pay for
it.

A market is one of the many varieties of systems, institutions,

procedures, social relations and infrastructures whereby parties
engage in exchange. Markets facilitate trade and enable the
distribution and allocation of resources in a society. A market emerges
more or less spontaneously or may be constructed deliberately by
human interaction in order to enable the exchange of rights of
services and goods.

A market is a group of buyers and sellers, where buyers

determine the demand and sellers determine the supply, together with
the means whereby they exchange their goods or services. Other types
of markets and various organizational structures to assist there
functions, the nature of business transactions could be used to define
different markets.
State
State is an organized political community living under a single
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. States may or may not be
sovereign. For example, federated states that are members of a federal
union have only partial sovereignty, but are, nonetheless, states. The
term “state” can also refer to the secular branches of government
within a state, often as a manner of contrasting them with churches
and civilian institutions.
The first states arose about 5,500 years ago in conjunction with
the rapid growth of urban canters, the invention of writing, and the
codification of new forms of religion. Over time a variety of different
forms developed, employing a variety of justifications for their
existence. In the 21st century the modern nation-state is the
predominant form os state to which people are subject.

Non-state Institutions
These are establishments which are not owned and controlled by
the government. Some non-state institutions are for profit and others
are non-profits and some are for personal investments and for
financial help.

Banks and Corporations

Banks are places or institution where people place or deposit
their money or savings with corresponding interest on a given period
of time and, or asserts for safekeeping.
Bank play an important role as an intermediary, or go-between, in the
financial system.
There are there main functions of banks:
1. Banks are depository of savings.
2. Banks are largely responsible for the payments system.
3. Banks issue loans to both people and companies.

Corporations
A corporations is a company or group of people authorized to act as
a single entity and recognized as such in law. Corporation is a legal
entity created under state law and is designed to generate a profit.
Corporations come in many different types but are usually divided by
the law of the jurisdiction where they are chartered into two kinds:

1. Whether or not they can issue stock

2. Whether or not they are for profit.
Ownership of the corporation is through stock, and owners of
stock are referred to as “non-stock” corporations. Considered the
owners of the corporation are those who have obtained membership in
the corporation, and are referred as a “members” of the corporation.

Corporations chartered in regions where they are distinguished

by whether they are allowed to be for profit or not are referred to as
“for profit” and “not-for-profit” corporations, respectively.

There is some overlap between stock/non-stock and for profit

/not-for-profit in that not-for-profit corporations are always non-stock
as well. Profit Corporation is almost always a stock corporation, but
some for profit corporations may choose to be non-stock.

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.
 Cooperatives often share their earnings with the membership as
dividends, which are divided among the members according to their
participation in the enterprise, such as patronage,

Cooperatives play a critical role in building community wealth

for several key reasons:
1. They often provide quality goods and services to areas that have
been shunned by traditional business because they are deemed less
profitable markets.

2. They typically invest in local communities. For example, many

rural cooperative utilities finance community infrastructure projects,
make equity investments in local businesses, make grants to
neighbourhood non-profits, and sponsor a range of community-
focused events.
3. Since most cooperative members are local residents, business
profits remain and circulate within the community.
4. Cooperative membership builds social networks and strengthens
social cohesion, which are essential elements of strong, healthy
communities, by connecting diverse community residents.
5. Purchasing cooperatives, in particular, help small, local
businesses remain competitive within markets dominated by large,
national retailers.
6. Worker cooperatives, in particular, create quality, empowering
jobs for community members.
7. Cooperatives are typically based on the cooperative values of
“self-help, self-responsibility, democracy and equality, equity and
solidarity” and the seven cooperative principles:
(1) Voluntary and open membership
(2) Democratic member control
(3) Economic participation by members
(4) Autonomy and independence
(5) Education, training and information
(6) Cooperation among cooperatives
(7) Concern for community
Cooperatives are dedicated to the values of openness, social
responsibility and caring for others. Such legal entities have a range
of social characteristics. Economic benefits are distributed
proportionally to each member's level of participation in the
cooperative, for instance, by a dividend on sales or purchases, rather
than according to capital invested. Cooperatives may be classified as
either worker, consumer, producer, purchasing or housing
cooperatives.

Trade Unions
Trade Union is an organization whose membership consists of
workers and union leaders, united to protect and promote their
common interests. A trade union may be:

1. A company union that represents interests 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.
2. A general union that represents workers from several companies
in the same industry. This is also called industrial union.
3. A craft union that represents skilled workers in a particular field
such as carpentry or welding.
The principal purposes of a labour union are to:
1. negotiate wages and working condition terms,
2. regulate relations between workers (its members) and the
employer,
3. take collective action to enforce the terms of collective
bargaining,
4. raise new demands on behalf of its members, and
5. Help settle their grievances.

The TUCP
 The Trade Union Congress of the Philippines, with 1.2 million
members, in the biggest confederation of labour federations in the
Philippines. It was founded on December 14, 1975 by 23 labour
federations which saw the necessity and importance go writing
themselves into a strong and dynamic labour centre. Today, the TUCP,
as the most representative labour canter in the country, is composed of
almost 30 federations with members in all sectors and industries
including government employees. It also has members coming from
associations/organizations of groups from the OFWs, informal sector,
drivers, urban poor, youth groups, cooperatives, alliances, coalitions
and other civil society groups.

Transnational Advocacy Groups

Transnational advocacy groups/networks are fluid and open
relationship among knowledgeable, committed actors. They differ
from other types of networks in that they existto promote principled
causes, ideas and values. They exist to change international policy as
well as make these changes real in the day-to-day lives of ordinary
people.
Their goal is to give otherwise powerless constituencies: (the
impoverished, women, the politically vulnerable, consumers,
disorganized populations) a voice in domestic and international law
making.

Examples of the kinds of issues that motivate advocacy networks

include:
1. Humans rights,
2. Consumer rights,
3. Women's rights,
4. Environmental issue,
5. International peace,
There are, of course, other issue and causes. But what these
groups share, and what and what makes them influential, is their
ability to develop connections and relationships with other like-
minded groups across borders and to use these relationships to change
the course of national and international policy and action.
Importance of Transnational Advocacy Groups
Many other networks of individuals and organizations exist and
have a great deal of influence on international law and policy:
bankers, accountants, government agency officials, judges, attorneys-
and the list go on.

What makes transnational advocacy networks so important is

their advocacy. They campaign on behalf of principled causes, sets of
values and ideas, vulnerable constituencies or environments. Where
international dialogue and policy making might otherwise be open
only to military or economic powers, advocacy groups open this arena
to the voices and cocerns of groups outside the political arena. In
other words, transnational advocacy networks provided a voice for
civil society in the otherwise closed field of international politics.
Transnational advocacy networks open a democratic space within an
elite arena.

Who participates in transnational advocacy groups?

Who participates in transnational advocacy networks? There is no
single list, but the major actors often included:
1. National and international nongovernmental organizations
(NGOs),
2. Local social movements,
3. Foundations,
4. The media,
5. Religious organizations, trade unions and consumer
organizations,
6. Intellectuals and scholars,
7. Agencies within international and regional intergovernmental
organizations,
8. Parts of executive or parliamentary branches of governments,

These varied actors form visible ties and mutually understood

roles. They work on multiple fronts, using different methods. They
seek not merely to influence, but to change the very terms and values
of international policy and practice.

Development Agencies
A development agency is an organization committed/dedicated
to distributing aid. Many professional aid organisations exist, both
within government between governments as multilateral donors and
as private voluntary organizations or non-governmental organizations.
The International Committee of the Red Cross is 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 and
development aid, aimed at helping countries to achieve long-term
sustainable economic growth, with the aim of achieving poverty
reduction.
Development aid is a universal issue. Efforts may be constantly
increasing at the national level, but funds allocated to international
and regional institutions are also clearly important.

International Organizations
An international organizations is an organization with an
international membership, scope, or presence. There are two main
types:
1. International Non-governmental Organizations:
2. Intergovernmental organizations
The first and oldest intergovernmental organization is the
Central Commission for Navigation on the Rhine, created in 1815 by
the Congress of Vienna.
The rolled of international organizations are the following:
1. helping to set the international agenda,
2. mediating political bargaining,
3. Providing the place for political initiatives and acting as
catalysts for coalition formation.