Understanding Culture, Society & Politics

Forms and Functions of State and Non-state

Institution

STATE
At the time of the initial development of the modern human rights system, States were the dominant
actors in the international arena. A state is an organized political community acting under a government and
united by common set of laws. It uses absolute power in directing the path of a society. It also uses complete
political coerciveness, which may come in the form of armed forces personnel, stricter laws, and rigid
government policies in order to attain its societal goals and objectives.

Market exchange is the primary form of economic subsistence of a state wherein standardized
currencies are being used to exchange commodities. States differ in sovereignty, governance, geography, and
interests. It may be classified as sovereign if they are not dependent on, or subject to, any other power or
state. Other states are subject to external sovereignty where ultimate sovereignty lies another state.

The concept of the state is different from the concept of government. A government is the particular
group of people that controls the state at a given time. In other words, governments are the means through
which the state power us employed like applying the rule of law.

The concept of the state is also different from the concept of a nation, which refers to a large
geographical area and the people therein who perceives themselves as having a common identity. The state is
a political geopolitical entity; the nation is a cultural or ethnic entity.

As a state, it consists of actors with varying interests and assertions, social rules are implemented in the forms
of laws. These laws are created to manage the interaction among individuals and between the individuals and
the state. As a citizen of a country, an individual is subjected to the legal norms in the territory. These
norms may include paying taxes, rendering military services, and contributing to the political life in the society.

The State intends to be a strong actor in the performance of the three important political functions. The state, in
full form:

1. maintains control over violence in its domain

2. allocates resources and rewards at its discretion, and
3. stands as the major focus of identity for the large majority of the people under its authority.

ELEMENTS OF THE STATES

1. Population
It is the people who make the state. Population is essential for the state. Without population there can
be no State.

2. Territory
There can be no state without a fixed territory. People need territory to live and organize themselves
socially and politically. It may be remembered that the territory of the states includes land, water and airspace.

3. Government
It is the organization or machinery or agency of the State which makes, implements, enforces, and
adjudicates the laws of the state.
4. Sovereignty
It is the most exclusive elements of State. Without sovereignty no state can exist. State has the
exclusive title and prerogative to exercise supreme power over all its people and territory. It is the basis which
the State regulates all aspects of the life of the people living in its territory.

FORMS OF STATES

States come in a variety of forms that vary on who holds power, how positions of leadership are
obtained, and how authority is maintained. These are:

a. Authoritarian Government

Authoritarian governments differ in who holds power and in how control they assume over those who
govern. An example of this type is Monarchy.

Monarchy is a form of government in which supreme power is absolutely lodged with an individual, who is the
head of the state, often for life or until abdication. The person who heads a monarchy is called a monarch.
Some monarchs hold unlimited political powers while many constitutional monarchies, such as the United
Kingdom and Thailand. Currently, 44 nations in the world have monarchs as head of state.

Totalitarianism is a political system that strives to regulate nearly every aspect of public and private life. It
theoretically permits no individual freedom and that seeks to subordinate all aspects of individual life to the
authority of the state. Modern examples of totalitarian states include the Soviet Union under Joseph Stalin,
Nazi Germany under Adolf Hitler, the People’s Republic of China under Mao Zedong, and North Korea under
the Kim Dynasty.

b. Oligarchic Government

An oligarchy is a form of government in which power effectively rests with a small-elite segment of
society distinguished by royalty, wealth, family, military, or religious hegemony. An oligarchy does not have one
clear ruler, but several powerful people who rule. One common example is theocracy.

Theocracy is a government by divine guidance or by official who are regarded as divinely guided. Leaders are
members of the clergy, and the state’s legal system is based on religious law. Contemporary examples of
theocracies include Saudi Arabia, Iran, and the Vatican.

c. Democratic Government

Democracy is a form of government in which the right to governs is held by the majority of citizens
within a country or a state. The two principles of democracy are that all citizens have equal access to power
and that all citizens enjoy universally recognized freedoms and liberties. People can either become country
leaders through electoral process or elect leaders who represent the core values and beliefs. There are 99
democratic nations globally. Examples of democratic nations are Philippines, Norway, New Zealand, United
States of America, Canada, Columbia, Italy, and South Africa.

ROLES OF THE STATES

1. State provides security against external aggressions and war. For this purpose, the state maintains an army.
2. State ensures security against internal disturbances disorders and crimes. For this purpose, the state
maintains police.
3. State legally grants and guarantees the rights of the people.
4. The state issues and regulates currency and coinage.
5. State undertakes steps for the creation of necessary conditions for the socio-economic-politico-cultural
development of the people.
6. State grants citizenship and protects their interests and rights.
7. State conducts foreign relations, foreign trade and economic relations.
8. State secures the goals of national interest in international relations

NONSTATE INSTITUTIONS

Nonstate institutions are people and/ or organization that participate in international affairs and relations but
are not affiliated with any state or nation. These nonstate institutions include the following: bank and
corporations, cooperatives and trade unions, transnational advocacy groups, and development agencies and
international organizations. These nonstate institutions are equally capable of influencing policy formation and
implementation.

a. Banks

Bank is a financial institution licensed to provide several financial services to different types of
customers. Banks are in operation mainly for their deposits and lending functions. Customers are allowed to
deposit their money to banks which grow through an interest rate. Banks also provide loans, with an interest to
customers who need money either for personal consumption or for investment and businesses. Banks may be
categorized into major forms such as commercial banks and investment banks.

MAJOR FORMS OF BANKS AND THEIR DESCRIPTION

Forms of Bank Description

 Financial deposit with security and convenience which
could be in the form of credit cards, debit cards, and
check
 Provide business, individual, and personal loans,
Commercial Banks
enabling commercial banks to earn interest
 Serve as payment agents within and outside the
country through wire transfer
 Subjected to more regulations
 Financial intermediaries that perform a variety of
services for businesses and some government
 Issues securities to the investing public
 Make markets, facilities, mergers, and other corporate
reorganizations
Investment Banks
 Acts as brokers for institutional clients
 Under the supervision of regulatory bodies such as the
Securities and Exchange Commission (SEC), FINRA,
and the US Treasury.
 Subjected to fewer regulations

The two most well-known financial institutions that are actively shaping the socioeconomic development
of the Philippines are the World Bank and the Asian Development Bank. They have been providing financial
aid to the Philippine government and various non-governmental organizations (NGOs) to facilitate their
development objectives.
 b. Corporations

It is a form of business operation that declares the business as a separate entity guided by a group of officers
known as the Board of Directors. They were created by individuals, stockholders or shareholders, with the
purpose of operating for profit. They have all legal rights of an individual, except for the right to vote and certain
limitations. They are given the right to exist by the state that issues their charter. Corporation example includes
General Motors Corporation an icon of American craftmanship, Apple Corporation as one of the famous tech
companies, Amazon Corporation founded by Jeff Bezos is the world’s leading eCommerce and innovation
company, Domino’s Pizza is a global food chain company
delivering quality food worldwide.

COMMON TYPES OF CORPORATIONS

A corporation can be created by a single shareholder or by multiple shareholders who come together to pursue
common goal. A corporate can be formed as a for-profit or a non-for-profit entity.

 For-profit entities form most corporations, and they are formed to generate revenues and provide a
return to their shareholders, according to their percentage of ownership in the corporation. Examples:
HBO in partnership with International Rescue Committee, Ford Motors and Lynda.com.

 Not-for-profit entities operate under the category of charitable organizations, which are dedicated to a
particular social cause such as educational, religious, scientific, or research purposes. Rather than
distribute revenues to shareholders, not-for-profit organizations use their revenues to further their
objectives. Human Rights Campaign is a very impressive example of using Facebook profile photos to
spread the word far and wide about campaign. Greenpeace the environmental non-profit that used
GPS technology to inform the public about their cause.

Multinational Corporations (MNCs) are business organization that extends ownership, management,
production, and sales activities into several or more countries. MNCs are boon to the economic growth and
development of the states.

THE GOOD AND BAD EFFECTS OF MNCS

Good Effects Bad Effects Good Effects Bad Effects

Introduce technology Offer ill-suited technology
Encourage economic growth Retard economic
growth
Encourage interdependently Cause dependency
Elites learn to regulate Elites become compradors
Promotes human rights Harms human rights
Protect the environment Hurt the environment
Economic actors’ Political actors
Promote a cosmopolitan world Damage national
Culture
Introduce technology Offer ill-suited technology
Encourage economic growth Retard economic
growth
Encourage interdependently Cause dependency
Elites learn to regulate Elites become compradors
Promotes human rights Harms human rights
Protect the environment Hurt the environment
Economic actors’ Political actors
Promote a cosmopolitan world Damage national
Culture

Checks out the big names of MNCs that are already exist in the Philippines:

 Google  HSBC
 Viber  Citibank
 Palo Alto Networks  Maersk
 Procter and Gamble  Hewlett Packard
 Thomson Reuters  Coca Cola Far East
 Accenture  Deutsche Bank
c. Cooperatives

Cooperatives are people-centers enterprises owned, controlled and run by and for their members to
realize their common economic, social, and cultural needs and aspirations.
Cooperatives are businesses governed on the principle of one
member, one vote. There are several common types of co-ops, including cooperatives owned and operated by:

a. The people working there (worker cooperatives);

b. The people buying the co-op’s goods or services (consumer cooperatives)
c. The people collaborating to process and market their products (producer cooperatives); and
d. Groups uniting to enhance their purchasing power (purchasing
cooperatives)

Cooperatives play a critical role in building community wealth for several key reasons:
a. They often provide quality goods and services to areas that have been shunned by traditional
businesses because they are deemed less profitable
b. They typically invest in local communities
c. Since most cooperative members are local residents, business profits remain and circulate in the
community
d. Cooperative membership builds social networks and strengthens social cohesion which are essential
elements of a strong, healthy communities by connecting diverse community residents
e. Purchasing cooperatives help small, local businesses remains competitive within markets dominated
by large, national retailers
f. Worker cooperatives create quality, empowering jobs for community members

d. Trade Unions/Labor Unions

Trade Unions are organizations formed by workers from related fields that work for common interest of
its members. They help workers in issues like fairness of pay, good working environment, hours of work and
benefits. They represent a cluster of workers and provide a link between the management and workers.

The purpose of these unions is to look into the grievances of wagers and present a collective voice in
front of the management. It acts as the medium of communication between the workers and management.
Among these trade unions that exist in the Philippines are the Federation of Free Workers (FFW), Kilusang
Mayo Uno (KMU) and the Trade Union Congress of the Philippines (TUCP).

FUNCTIONS OF TRADE UNIONS:

1. Advocating for fairness and equality for workers’ compensations

2. Securing better working conditions for workers
3. Trade Unions will organize strikes and demonstrations on behalf of worker demands
4. Fight for social welfare for workers
5. Promote and advocate for education and proper training for workers
6. Advocate and fight the government for legislative protections of the workers
7. Promote and advocate for organizational growth and stability
8. Trade Unions acts as representatives of workers in national and international forums
9. Involved in collective bargaining agreements and disputes with management to settle any conditions on
employment
10. Advising management on correct personnel policies and procedures
11. Involved in collective and personal collective grievances between management and workers.

e. Transnational Advocacy Groups

Transnational Advocacy Groups (TAGs) play an increasingly important role in international and regional
politics and have contributed to changing policies of multilateral organizations and states. They are particularly
visible in contentious areas as human rights, environmental issues, international peace, and women’s rights.
They have specific roles to partake that can be achieved through effective measures, case-specific methods,
and activities.
TAGs serve as international catalysts for change, aiming to achieve international changes towards
policies and practices. The very essence of TAGS is the formation and development of their advocacies and
campaigns that represent causes, ideas, values, and beliefs.
Human Rights Watch and Amnesty are active in the human rights field. Oxfam and Save children deal
with humanitarian issues. Greenpeace and Friends of the Earth represent environmental concerns.

f. Development Agencies

Development Agencies have been established to develop the cooperation between the public sector,
private sector, and civil society. These are organizations with specific aims and goals. The common
denominator among these organizations is the term development. These agencies concentrate on the growth,
progression, and advancement of specific concerns, which can be infrastructure or social institutions.

TYPES OF DEVELOPMENT AGENCIES:

 International Organization is an institution with membership drawn from two or more countries. Its
activities transcend national boundaries as it facilitates cooperation among its members in the
performance of one or more tasks. The international organization can be public or private. A public
organization is an international government organization (IGO) with states as its members. Prominent
examples of IGOs are United Nations, the North Atlantic Treaty Organization (NATO), International
Monetary Fund (IMF), European Union (EU), Association of Southeast Asian Nations (ASEAN), and
World Health Organization (WHO). A private organization has a membership of individuals or groups
and is an international nongovernment organization (INGO) that originate for reasons other than politics
such as International Criminal Police Organization (Interpol). INGOs may lobby or work regularly with
the government and IGOs.

 Non-government Organization is a non-profit group that functions independently of any government.

It serves the social or political goals such as humanitarian and environmental causes. Most NGOs aim
to promote the practice of democracy among societies and social change through their initiatives and
organizational methods. Many NGOs have targeted their efforts toward population groups that tend to
be underserved by governmental programs, including women, the aged, physically and mentally
disabled persons, the poor, and various social groups that have been marginalized by virtue of race,
religion, ethnicity, caste, and social class.

Interrelationship of Government and Non-state Institutions

Government rules society. This reflects how powerful government institution can be. If nonstate institutions
interfere with the governing body, two possible things can happen:

1. Integration among these two institutions may take place to achieve precise solution towards development
2. Conflict and tension may also arise because one could exceed the other in terms of societal control and
influences (Penninx, 2013)