SOCIAL AND POLITICAL STRUCTURES: POLITICAL ORGANIZATIONS

In a classroom setting, what are the functions of the elected class officers? Do you believe that their existence is needed for the m
aintenance of order in the class? Find out the answers in this lesson!

SOCIAL AND POLITICAL STRUCTURES

Social and political structures are both constructs formed as a result of large scale ties and relations in society. Social structure, in a general
sense, refers to patterned institutions or groups in society where people work, act, and live together.
Examples: Social class and social institutions like the government and legal community, LGBT community, and professional community
The political structure, on the other hand, is used to call on the institutions and political entity organized in agreement with regulations, laws,
and norms of society or of the entity itself. A society based on political structure may follow totalitarianism, authoritarianism, or democracy.

TYPES OF POLITICAL ORGANIZATION

There are four recognized types of political organizations. They are bands, tribes, chiefdoms, and states.

Band
The band is the most traditional and smallest type of political organization. Familial ties connect a band. Politically independent, a band usually
does not recognize the formal government. There are no written codes or laws. There is no organized group of leaders. This is the result of their
tendency and nature of moving from one place to another in search of food or shelter.

Tribes
Tribes are traditional societies comprised of people or group of people connected by social, religious, ancestral, or cultural ties. Bigger than a
band, tribes are usually settled in one place and do not rely on hunting and gathering but on agriculture for subsistence. Just like bands, tribes do not
observe formal governments.

Bands and tribes are egalitarian societies. This means that they see people of the same age and gender as equals. For instructions and
decision, they rely on group consensus.

Chiefdom
Chiefdom, unlike tribal societies, is a permanent and formal government. Chiefdoms are formal political organizations in a traditional society
based on kinship or the leadership of selected families.

State
A state is a formal political organization in a modern or industrial society regarded as an organized community under a government.
Characteristics of a state include owning a certain territory, having a particular group of people to lead it, a group of people to take administrative roles,
and freedom from external or foreign control.

Explore!
Why does society need an authority figure? What type of leadership or leaders should people have to achieve maximum success in maintaining peace
and order?

Try it!
Give at least three political organizations. Write their objectives and projects in society.

What do you think?

Imagine the world without political organizations. What do you see?
What can we expect from people or from a society which works and operates without the supervision of a political organization?

Keypoints
 Social structure refers to patterned institutions or groups in society where people work, act, and live together.
 Political structure is used to call the institutions and political entities organized in accordance with regulations, laws, and norms of society or of
the entities themselves.
 Political organizations are entities in a society formed for administrative or political functions.
 A band is a group of nomadic people connected by familial ties.
 Tribes are traditional societies comprised of people or groups of people connected by social, religious, ancestral, or cultural ties.
 Chiefdoms are a formal political organization in a traditional society based on kinship or the leadership of selected families.
 A state is a formal political organization in a modern or industrial society regarded as an organized community under a government.
 ECONOMIC INSTITUTIONS: RECIPROCITY

If you have been given something, is it expected for you to return the favor? Why or why not? Find out the answer in this lesson!

ECONOMIC INSTITUTIONS
The term 'economic institutions' refers to:
 a network of commercial organizations that determine how goods and services are produced, generated, distributed, and purchased
Examples: producers, manufacturers, retailers, wholesalers, buyers
 the particular agencies or foundations devoted to the gathering or studying of economic data, or authorized with the job of supplying goods and
services that are necessary to the economy of a country
Examples: the Philippine Bureau of Internal Revenue, the U.S. Federal Reserve, the National Bureau of Economic Research
 the popular and thriving arrangements and structures that are part of culture or society
Examples: competitive markets, the banking system, a system of property rights

RECIPROCITY
1. What is reciprocity?
In Sociology, it is defined as the system of voluntary exchange among individuals based on the understanding that the giving of favor by one
will be reciprocated in the future either to the giver or to someone else.

Example: Filipinos practice utang na loob. This act is part of our culture. When a person shows you an act of kindness, it is a must for Filipinos to return
the favor.

In Economics, it is defined as an exchange of equal advantages.

Example: Japan and Philippines made an economic agreement to remove traveling restrictions to flourish the tourism of both countries.

2. What are the types of reciprocity?

a. Generalized
Generalized reciprocity is giving something without the anticipation of an instant return.
Example: When a friend gave you a birthday gift, it is not expected that you will also give that friend a gift in return on the same day, although it is
anticipated that you will give him a gift or token sometime in the future or when his birthday comes.

b. Balanced
Balanced reciprocity is giving out of something with the anticipation of immediate return.
Example: When you get something from the store and walks out without paying for the goods, you will be stopped by shop employees because
you have not reciprocated with money the goods that you picked from the store.

c. Negative
Negative reciprocity occurs when the exchange of something already involves taking advantage of someone or the situation. Most of the time,
this type of exchange involves trickery, intimidation, or hard bargaining.

Example: Province X has no source of electricity for a long time. X Electric Company made an agreement with the officials of the province to provide
them with power supply. In exchange, the whole area should not entertain any other electric company to offer the same services to them.

ECONOMIC INSTITUTIONS, RECIPROCITY, AND THE IMPACTS ON THE GLOBAL COMMUNITY

Economic institutions involve activities such as producing, generating, distributing, and purchasing goods and services. These activities have
an impact on the global community. See the illustration.

Legends:
 blue: economic institutions
 red: activities of economic institutions
 yellow: global community
 The activities with economic institutions play vital roles in shaping and maintaining the stability of world community. If one system fails to do its
activity, there will be an imbalance that will highly affect the whole community.

Practical Application

Reciprocity always necessitates adequacy of responses but does not mean that it should be of the same amount or volume. More than
economic gain, reciprocity is more of a social benefit. We have to make use of this principle to bring us closer to our neighbors, friends, family, and loved
ones.

Explore!
Think of at least three scenarios or situations where generalized reciprocity can be applied.

Try it!
Compare and contrast generalized from balanced reciprocity. Give examples for each.

What do you think?

How does negative reciprocity affect the activities of different economic institutions? What do you think will be the impact of these on the global
community?

Keypoints
 Generally, economic institutions refer to the network of commercial organizations that determine how goods and services are produced, generated,
distributed, and purchased.
 In sociology, reciprocity is defined as the system of voluntary exchanges among individuals based on the understanding that the giving of favor by one
will be reciprocated in the future either to the giver or to someone else.
 In economics, reciprocity is defined as an exchange of equal advantages.
 There are three types of reciprocity: general, balanced, and negative.
 The activities of economic institutions play vital roles in shaping and maintaining the stability of the global community.
 More than economic gain, reciprocity is more of a social benefit.
 ECONOMIC INSTITUTIONS: TRANSFERS

Are you aware of the different kinds of goods and services that private and government sectors provide for the people? Does the present
government provide more goods and services than it did in the past? How does the government redistribute more income? Find out the answers in this
lesson!
ECONOMIC INSTITUTIONS
The term 'economic institutions' refers to:
 a network of commercial organizations that determine how goods and services are produced, generated, distributed, and purchased
Examples: producers, manufacturers, retailers, wholesalers, buyers
 the particular agencies or foundations devoted to the gathering or studying of economic data, or authorized with the job of supplying goods and
services that are necessary to the economy of a country
Examples: the Philippine Bureau of Internal Revenue, the U.S. Federal Reserve, the National Bureau of Economic Research
 the popular and thriving arrangements and structures that are part of culture or society
Examples: competitive markets, the banking system, a system of property rights
THE FUNCTIONS OF ECONOMIC INSTITUTIONS
The economy of a particular country like the Philippines is composed of different institutions that play a significant role in providing the needs of
the people. These institutions perform economic activities that start from production to distribution of goods and services to the people. Here are some of
the functions of economic institutions in society:
 Enhance development through financial services
 Provide business opportunity to people by financing and loans
 Fund research projects aimed at improving the lives of the individuals in the society
TRANSFERS
In economics, transfer or transfer payment is a redistribution of income or resources in the market system. It refers to payments or transactions
where there is no value added to the economy. There is no additional production of goods and services but just a transfer of money from private hands
to government.
Examples: Taxes, Social security, Private pension benefits, Housing, Health care
Transfer payments can originate from either government or business sources. Business transfer payments include corporate gifts to non-profit
institutions, payments for personal injury, and taxes paid by domestic corporations to foreign governments. Far more important, both, in terms and policy
significance, are transfer payments originating from government sources.
HOW TRANSFERS WORK IN THE GOVERNMENT
The government as an economic institution also provides commercial goods to the people in the form of public services and transfer payments.
In the Philippines, the government is allocating a huge amount of money to finance different programs like education, infrastructures, health, and
defense.
Among the government agencies that received the highest allocations are:
 the Department of Education (DepEd) with PhP 411.905 billion,
 the Department of Public Works and Highways (DPWH) with PhP 384.287 billion, and
 the Department of Interior and Local Government (DILG) with Php 124.229 billion
In the United States, transfers are payments made to individuals by the federal government through different social benefit programs. In Canada,
transfers are payments made to all provinces and territories by the federal government.
ECONOMIC INSTITUTIONS, TRANSFERS, AND THE IMPACT ON THE GLOBAL ECONOMY
Transfer as an activity of every economic institution, such as the industry, finance, and services, distribute part of their income or profit to
provide essential services and assistance to some segments of society, especially the underprivileged, to help uplift their living conditions without
expecting anything in return. To help you analyze statement above, look at the diagram shown:
 In the circular flow of the economy, households and firms pay taxes to the government. In return, the government distributes transfers in the
form of services to the household and subsidies to the firms. The activities of the household, markets, businesses, government, or financial institutions
as economic systems have a great impact on the global economy because they provide goods and services needed by people not only of a particular
country but also by the world community. The stability of a country's economy has a direct impact on the global community for it determines its ability to
provide the needs of its people. It also contributes to the stability of the world.

Explore!
Imagine that the Philippine government is doing its job in solving the rampant problem of smuggling. More taxes are collected, and local and
foreign industries are protected. In the end, more effective and efficient services are provided to the people. How do you connect this scenario to the
lesson?

Try it!
If you become a wealthy individual who is willing to share part of your fortune to others, which among the basic needs (food, housing,
education, health) will be your priority? Justify your answer.

What do you think?

Why are there many Filipino families who still do not have access to essential goods and services to support their everyday living?

Keypoints
 Economic institutions are sectors of the economy that provide goods and services to the people.
 One of the activities of different economic institutions of a particular country is to provide transfers.
 A transfer or transfer payment is a redistribution of income or resources in the market system.
 The circular flow of economy helps explain the interrelationship of different sectors of the economy.
 Government and private enterprises play major roles in the world economy.
 The activities of the economic institutions of a particular country have a great impact on the global community.