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GOOD DAY
CLASS
 ECONOMIC
INSTITUTIONS
 What is Economy?
— All societies have an economy which can be viewed as a
social institution organized around production, consumption and
distribution of goods and services. It operates in generally
predictable manner.
INSTITUTION
Is a Durable system to established and
embedded social rules that create a
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structure for social interaction

ECONOMIC
INSTITUTION
Are the Formal and informal rules
that organize the economic flow and
activity of a society
 Economic institution are tasked to answer
the following question;

Add a main point Add a main point Add a main point

What Goods and services How should these Goods and For whom should the Goods
should be produced? services be produced? and services be produced?
 Other
Function and
Aspect of
Economics
 Is a Form of Gift exchange between

1.RECIPROCITY two parties where in return is

expected after product or gift
giving.

a. Economic Gain
two things Occur during the b. Social Gain
exchanging products.
Forms of Receprocity
The three forms of reciprocity were identified by anthropologist Marshall
Sahlins. These forms of reciprocity are collectively known as
Sahlins’Typology.

1. Generalized Reciprocity
2. Balanced Reciprocity
3. Negative Reciprocity
1. General Reciprocity

Generalized reciprocity is the exchange of

goods and services without a definite
time frame of when the favor should be
returned. Individuals giving out the favors
do not expect to receive anything back.
Such activity is commonly done among
small groups or societies.
 2. Balanced Reciprocity
The exchange occurs between groups or
individuals with the donor expecting to receive
something of equal or similar value. There is
no bargaining between two parties, and the
exchange of Goods occurs at a particular rate
set upon by the groups. There is pressure to
give back the favors at a specific point in time.
Balanced reciprocity demands timely
reciprocation that when favors are not received
by the donor, they could refuse to continue
giving out the favor.
3. Negative Reciprocity

This happens when group try to

maximize their gains while giving
as little as possible. They are
motivated by the desire to
acquire a large number of goods
using minimal resources.
 Transfer/government
transfer/transfer
payment
Example:
Transfer Are payment that are
made without any Good
or service being
received in return
 Is the Process of
transferring Income
and wealth- be it in
the form of money, Example:
Redistribution physical property and
from one individual Taxation, Land
to another individual.
Reform and Charity
 MARKET
A Market, in economic terms,
refers to a bigger setting where
buyers or sellers simultaneously
trade or exchange goods or
services. Markets could imply a
global setting where states
engage in market transactions to
exchange goods or services
 In a market exchange, at least two
people should be involved: one who has a
product and other who has the money.
Using a system of barters and bargaining,
the two individuals agree upon a specific
price for a specific quantity of the product.
thus, all forms of market exchange
would require the following: a medium of
exchange, a rate at which products are
exchanged for money, and parties who are
involved in the exchange(i.e.,buyers or
sellers)
Elements of market transactions
In understanding market transactions, it is
important to also familiarize yourself with the
elements that make up market exchanges.
Note that these elements are also important in
balancing the economy.
ELEMENTS DESCRIPTION:

a.Money- It consists of objects that serve as means of exchange for

goods and services.
b.Prices- It is the amount required or agreed upon by the exchanging
parties. It is the amount used in exchange for a certain product
c.Supply- It refers to the quantity of goods or services that are available
to sell at a given price in a period of time.
d.Demand- It refers to the quantity of goods or services that consumers
are willing to purchase at a given price and time period.
s Supply Demand Price
Supply Demand Price
The State (Government)need to foster
MARKET AND
economic growth to provide a good standard
of living to its citizens. At the same time,
STATE
markets exist because of the economic
activities done by the state. As such, we
could easily conclude that markets and
states are dependent on each other.
This interaction between states and
markets opens up the field of international
political economy.
Types of state according to Market Roles
Relationship between the state and market vary in terms
of degree of interdependence. The State plays different
roles in relation to the market. There are at least three
types of states depending on their role or relationship
to the market, namely:

2. The Interventionist
1. The Laissez- 3. The Welfare state
or Developmental
faire state
state
1.Laissez-Faire State
is derived from French words that mean “to
leave alone”. According to the principle of
laissez-faire, the economy functions best when
the government does not intervene through
regulations, subsidies, privileges, and other
types of intervention. The laissez-faire state,
therefore, completely does not have any role in
managing the market.
2. Interventionist or Development State
The Developmental or interventionist state is a
state that intervenes in the market and sets the
direction and pace of economic that will bring
about economic development.

Developmental states implement polices such as

subsidies, protection of tariffs and local
industries, and prioritization of some industries
over others.
3. Welfare State
The Welfare state is one that plays an important
role in the achievement and protection of the
economic and social well-being of its citizens. In
contrast to the developmental state, the welfare
state’s involvement is aimed at achieving a good
quality of life for the citizens, rather that merely
driving economic development.
 Non state institution
— Are people and or organizations that participate in
international affairs and relations but are not affiliated with any
state or nation.
Banks
❖The most basic form and sign of
a society’s financial status is the
status of its bank.
❖There are many role of the bank
but the most basic role it has is
the regulation of the flow the
society’s flow of money.
corporations

❖ Is known as a body of people acting as a single

entity
❖ It is created by the group of share holders who have
ownership of the corporation.
❖ Corporations usually set up to create profit to and
provide return for its shareholders.
COOPERATIVES
❖ Are associations owned by people who
voluntarily cooperate with each other under the
influence of their social, economic and cultural
benefits.
❖ These cooperatives are typically owned by not-
profit communities and business alike
❖ Cooperative were created mainly for human to
organized a mutual benefits for each other.
Trade unions
❖ Were organized by workers to share in a mutual
benefit between members.
❖ It is also called labor unions
❖ Are organizations composed of workers and
laborers who band together to protect the
integrity of their trade, improved safety
standards of their work and achieved higher
salary.
❖ A trades union’s goal is to improve the working
condition of a country’s labor force.
 TRANSNATIONAL
ADVOCACY GROUPS
ADVOCACY
Is an idea from an individual or group which aims to influence a
political, economic and social decision.
❖ Transnational advocacy network includes actors working together
internationally in an issue.
❖ Advocacy groups have spread information in support of a cause
across boarders-creating a transnational advocacy group- there is
a short to change how international policies and practices are
made.
❖ Transnational advocacy groups movement and main goal is to
challenge how the international playing field is being run.
Development agencies

❖Economic development agencies are

described to be independent organizations
s

that aim to implement strategic ways of

developing territories and societies.
❖Usually molded by public and private
institutions.
❖Developing agencies are organizations that
simple wish to improve the current
standpoint of a certain society.
International organizations
❖ A typical organizations promotes enhances
and ensures its members through
advocacies and state actions.

❖ This goal on a national organizations may

also be used to describe the goals of an
international organization.
Two main types of
international
organizations
1.International Nongovernment
organization
❖ Is typically a non-government organizations
(NGO)that operates in the international playing field.

❖ A well known example of an NGO is the international

committee of the red cross- their ideologist and
advocacies are advertised worldwide.
2. Intergovernmental organization
❖ Is most commonly known as an international
governmental organization.

❖ Example is the UNITED NATIONS wherein different

states meet and coordinate with one another on how
they want the global system flow.
 Thank you
for listening
class!
References: https://www.slideshare.net/angelitamontilla/socialization-121090315
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