MODULE: 11

NON - STATE
INSTITUTIONS
WHAT IS NON STATE INSTITUTION?
• Society consists of social institutions that are
governed by norms and each values. Each
individual in a society has specific roles and
functions that are meant to achieve societal
equilibrium.

• In 2008, the Universal Declaration of Human

Rights marked its 60th anniversary, celebrating
the fundamental rights and independence of
human society.
• How can u differentiate between state and
non state institutions?

• What are the functions in human society?

• Weber define state as “a human community
that claims monopoly of legitimate used of
physical force within a given territory”
• This definition reflects the inevitable existence
of the government, civil service , and police in
every society.
• On other hand, nonstate institutions are
institutions not related to the components of
state.
• The nonstate institutions include the following
banks and corporations, cooperatives and
trade unions, transational advocacy groups,
and development agencies and international
organization.
• These nonstate institutions are equally capable
of influencing policy formation and
implementation.
• By succeeding sections of this module we discuss the
elements of nonstate institutions in relation to their
background, features and functions.
Because of globalization, the following non-state
institutions currently play important roles in
international relations;

• BANKS AND CORPORATIONS

• COOPERATIVES AND TRADE UNIONS
• TRANSNATIONAL ADVOCACY GROUPS
• DEVELOPMENT AGENCIES
• INTERNATIONAL ORGANIZATIONS
• INTERNATIONAL NONGOVERNMENTAL ORGANIZATIONS
• INTERGOVERNMENTAL ORGANIZATIONS
BANKS AND CORPORATIONS
 Financial Institution Description

1. Commercial Banks
• Financial deposit with security and convenience
which could be in the form of credit card, debit and
check
• Provide business, individual, and personal loans,
enabling commercial bank to earn interest
• Serve as payment agents within and outside the
country through wire transfer
• Subjected to more regulations.
2. Investment Banks

• Financial intermediaries that perform a variety of

sevice for business and some governments

• Issue securities to the investing public

• Make markets, facilitate mergers, and other
corporate reorganizations
• Act as a broker for institutional clients
• Under the supervision of regulatory bodies such as
the Securities and Exchange Commission, FINRA, and
the US Treasury
• Subjective to fewer regulations
 Financial Institution Description

3. Insurance
companies
• Aid individuals and companies in terms of
risk management and wealth preservation
• Capable of earning profit and paying
claims, through their large number of
insurance
4. Brokerages
• Intermediaries in the transaction between
buyers and sellers for the purpose of
security
• Commission-based earnings

5. Investment • Help individuals invest funds or money with

companies or other investors to manage portfolios of
corporations security
• Purchase securities indirectly through a
package product such as a mutual fund
COOPERATIVE AND TRADE
UNIONS
• Trade unions and cooperatives have the primary role of
promoting labor welfare and good industrial relations. Trade
unions and cooperatives are organizations comprising
workers and laborers with common goals, purposes, and
interest. They mostly concern employment, relations,
descency, and welfare.
 Role Description

1. Political
• Can be powerful and influential in creating
political impact
• Can be conflict with other parties due to large
number of members with common interests that
are different from other union’s interest.
2. Market
• Reactive because of preoccupied economic
aims that concern employment salaries, wages
and inflation rates and rights (macro and micro
economic policies)
3. Regulatory
• Influential in determining and improving job
qualities and standards to regulate employment
functions.
4. Democratizing
• Promote rights to economic democracy and
participation to industrial democracy
 Role Description

5.Service

• Promote the welfare of members through various

initiatives and partnerships with different
organizations that provide service to them.

6.Enchancement

• Concerned for potential development and

member’s improvement.

7. Welfare

• Multifunctional institutions, conforming more to

the idea of the trade union as being part of a
movement
TRANSNATIONAL ADVOCACY
GROUP
• Advocacy is an activity by an individual or group that aims to
influence decisions within political, economic, and social systems
and institutions. Advocacy can include many activities that a
person or organization undertakes including media
campaigns, public speaking, commissioning and publishing
research or conducting exit poll or the filing of an amicus brief.
• Lobbying (often by lobby groups) is a form of advocacy where a
direct approach is made to legislators on an issue which plays a
significant role in modern politics. Research has started to address
how advocacy groups in the United States and Canada are using
social media to facilitate civic engagement and collective
action.
DEVELOPMENT AGENCIES
• Development agencies 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 societal concerns, which can
be infrastructure or social institutions.
 TWO MAJOR TYPES OF
ORGANIZATIONS
•INTERNATIONAL ORGANIZATIONS

•NON GOVERNMENT ORGANIZATIONS

INTERNATIONAL ORGANIZATIONS
• COPEE (2O11) Started that “one of the important roles of
international organizations is to translate agreed-cupon
values into rights and obligations.”

• The central role of organizations is essentially to provide

support and assistance through organized framework to
international cooperation.
NON-GOVERNMENT
ORGANIZATIONS
• The term 'NGO' is not always used consistently. In some countries the term NGO is
applied to an organization that in another country would be called an NPO (non-
profit organization), and vice versa. Political parties and trade unions are considered
NGOs only in some countries. There are many different classifications of NGO in use.

• The most common focus is on "orientation" and "level of operation". An NGO's

orientation refers to the type of activities it takes on. These activities might include
human rights, environmental, improving health, or development work. An NGO's
level of operation indicates the scale at which an organization works, such as local,
regional, national, or international.

• THE WORLD BANK (1989) PROVIDES A CLASSIC CATEGORIZATION OF NGO’s. SEE

TABLE 11.3
 Category Description
1. Community • Represent voices of people from different
associations communities, and act as bridge between
members of the communities and government
2. Policy • Have local, national, and international levels of
advocacy group participation; serve as catalysts for collective
action among poor persons in societies
unaccustomed to such behavior
3. Service • Have national and international levels of
provider participation; serve remote areas and
intermediaries communities especially those who fail to receive
government programs; seek fund through income
generating activities which are mostly non profit
4. Contractors • Involved in sponsored projects as consultants to
government agencies or to international financial
institutions that gain non profit at all
5. Cooperatives • Protect and provide economic benefits to the
needy ; are formed when a task cannot be done
on the individual level, such as obtaining credit.
INTERGOVERMENTAL
ORGANIZATION
•CREATED BY: RECHIE
QUIJANO
• An intergovernmental organization or international governmental organization (IGO)
is an organization composed primarily of sovereign states (referred to as member
states), or of other intergovernmental organizations. Intergovernmental organizations
are called international organizations, although that term may also
include international non-governmental organization such as international nonprofit
organizations or multinational corporations.
• Intergovernmental organizations are an important aspect of public international
law. IGOs are established by a treaty that acts as a charter creating the group.
Treaties are formed when lawful representatives (governments) of several states go
through a ratificationprocess, providing the IGO with an international legal
personality.
• Intergovernmental organizations in a legal sense should be distinguished from simple
groupings or coalitions of states, such as the G7 or the Quartet. Such groups or
associations have not been founded by a constituent document and exist only
as task groups.