ucsp

module 2
Forms and Functions of
Non-state Institution
 The forms and functions of non-state
institutions
At the end of the lesson, you are expected to:
1. identify the characteristics of non-state institutions;
2. explain the different forms and functions of non-state
institutions;
3. evaluate the roles and impact of non-state institutions to
the society; and
4. appreciate the importance of non-state institutions to the
people, the country, or the world.
NAME THAT LOGO!
 NAME THAT LOGO!

UNITED NATIONS
 NAME THAT LOGO!

UNITED NATIONS LAND BANK OF THE

PHILIPPINES
NAME THAT LOGO!
 NAME THAT LOGO!

METROBANK
 NAME THAT LOGO!

METROBANK PETRON
NAME THAT LOGO!
 NAME THAT LOGO!

SMART CORP
 NAME THAT LOGO!

SMART CORP DAVAO LIGHT

 Non-state Institutions

Governments have put up different institutions

that provide services for its people's welfare,
such as public works, military and police forces,
education, transportation, public works, health
services, and other departments and agencies.
 Forms of Non-state Institutions 

Non-state institutions intended to promote the country’s economy

A.Banks
B.Corporations
C.Cooperatives
D.Labor/Trade Unions
 Forms of Non-state Institutions 

A.Banks

Banking institutions are companies, corporations, or associations,

or any lawful organizations approved by the government which is
engaged in the lending of funds acquired from the general
population through the receipt of deposits and the sale of bonds or
obligations of any kind (Jimenez 2017, 174).
 Forms of Non-state Institutions 

In our country, Bangko Sentral ng Pilipinas or BSP has the sole authority
in monitoring and compiling various indicators on the Philippine banking
system and classified banks according to the following:

• Universal and commercial banks are banking institutions that grant

short term loans and varieties of banking services. This represents the
largest group, resource-wise, of financial institutions in the country.
Universal banks offer services, which are wholesale banking, retail
banking, and investment banking.
 Forms of Non-state Institutions 

These are the largest universal and

commercial banks in the country by total
assets as of December 2019: Top 10 Best
Banks in the Philippines as to Assets
 Forms of Non-state Institutions 

2. The thrift banking system – These are banks

specializing in offering savings accounts and home
mortgages for clients. These are sometimes referred to as
Savings and Loan Associations (S&Ls). They accumulate
savings from depositors, and then invest it.
 Forms of Non-state Institutions 

3. Rural and Cooperative Banks- These are the most

well-known type of banks in the rural communities.
Their role is to promote and expand the rural economy
in an orderly and effective manner by providing the
people in the rural communities with basic financial
services.
 Forms of Non-state Institutions 

B. Corporations
Corporations are legal entities that are independent and distinct
from their owners. Corporations enjoy most of the rights and
responsibilities that people have; they can enter agreements, loan
and borrow money, sue and be sued, recruit workers, own assets,
and pay taxes. These may be non-profit organizations engaged in
activities for the public good; municipal corporations, such as cities
or towns; or private corporations organized to profit (Kenton, 2020).
 Ph i l i p p i n e s To p 5
C om p a n i e s L i st b y
Ma rk e t C a p a s o n Ja n u a ry
1, 2020
 Forms of Non-state Institutions 

C. Cooperatives
These financial institutions promote and undertake savings and
lending services among their members. These generate common pool
of funds to provide financial assistance and other related financial
services to their members. Furthermore, each member has a fair share
of the risks and benefits of his/her financial undertaking by the agreed
cooperative principles, rules, or regulations (Jimenez 2017,177).
 Forms of Non-state Institutions 

There are different types of cooperatives in the Philippines, and these

are:

a. Credit Cooperative – is a financial institution owned and controlled

by its members that promote and undertakes savings and lending
services.
b. Consumer’s Cooperative – frequently appears as retail outlet
possessed and worked by the consumers, for example, food co-ops.
 Forms of Non-state Institutions 

c. Producer’s Cooperative – is a joint production undertaking of all members

where they processed products from raw materials to produce goods for sale
by the cooperative to its members and nonmembers or their chosen market.
d. Marketing Cooperative – focuses on supplying goods or production inputs
to members and marketing their products.
e. Service Cooperative – concerns giving services such as medical and dental
care, hospitalization, transportation, insurance, housing, labor, electric light
and power, communication, professional and other services.
 Forms of Non-state Institutions 

f. Multipurpose Cooperative – is a combination of two or more of the

forms of different types of cooperatives. Example of this is Panabo
Multi-Purpose Cooperative (PMPC).
g. Advocacy Cooperative – is a cooperative focused on advocating
cooperativism among its members and the public through
sociallyoriented projects, education and training, research and
communication, and other activities to reach out to its intended
beneficiaries.
 Forms of Non-state Institutions 

h. Agrarian Reform Cooperative – intends to develop an appropriate

system of land tenure, land development, land consolidation and land
management which is organized by marginal farmers who are agrarian
reform beneficiaries.
i. Cooperative Bank – is a cooperative that aims to provide wide range
of financial services to its members
j. Dairy Cooperative – has members that are engaged in fresh milk
products which may be possessed or marketed as dairy products.
 Forms of Non-state Institutions 

k. Education cooperative – is organized to own and operate licensed

educational institutions without going beyond what is stipulated in RA No.
9155 known as the Governance of Basic Education Act of 2001
l. Electric Cooperative – has the purpose of managing the generation and
utilization of renewable energy sources and the acquisition and operation
of sub-transmission or distribution to household members.
m. Fishermen Cooperative – is organized by fishermen members in
localities whose products either as fresh or processed products.
 Forms of Non-state Institutions 

n. Housing Cooperative – is a cooperative that aims to provide or

assist members who actively participate in the housing savings
program to have access to housing provisions.
o. Insurance Cooperative – aims to venture into the business of
insuring life and property of cooperative and their members.
p. Water Service Cooperative – is organized to manage water systems'
distribution and operation to distribute potable waters to its members
and their households.
 Forms of Non-state Institutions 

q. Worker’s Cooperative – is organized by workers who are workers,

aiming to provide employment and business opportunities to its
members.
r. Other types of cooperatives as may be determined by the
Cooperative Development Authority (CDA)*
 Forms of Non-state Institutions 

D. Labor/Trade Unions
These are membership-based organizations created
by workers and their leaders who are united to
promote, protect their common interest and welfare
in their workplace.
1. Negotiate agreements with employers on their wage/salary
and working conditions
2. Deliberate significant changes to the workplace
3. Discuss members’ concern towards their employers
4. Escort members in disciplinary and grievance meetings
5. Provide legal and financial provisions for members
6. Raise concerns and demands for the members such as free
health and insurance benefits, and the like
7. Take collective action to enforce the agreed terms with
employers (Jimenez 2017, 178)
• Collective Bargaining- is the process of negotiating the terms or
conditions of employment such as working conditions, rules in the
workplace, retirement and health benefits, wage/salary and bonus, and
the like between an employer and organization of workers.
• Redundancy- refers to an employee's dismissal from his/her job by the
employer to reduce the workforce. If you are being made redundant,
you are entitled to receive redundancy pay.
 Other Non-state Institutions 

The following below are non-state institutions that are

noneconomic.
A. Transnational Advocacy Groups

Transnational advocacy groups are organized to promote

and advocate principled causes, ideas, and values that aim
to bring change to ordinary people's daily lives.
 Importance of Transnational Advocacy Groups
a. They serve as voices of civil societies and of groups outside the political arena.
b. They promote more comprehensive opportunities for dialogue on human rights
issues, cultural and environmental concerns, and others across borders.
c. Through mobilization of information in support of a cause, they
can influence international policy, actions, or practices.
d. They create activities among themselves to forward their
principled cause and make it happen.
 B. International Organizations
These are created after an international agreement between
countries or organizations and become institutions that provide
avenues for diplomatic agreement, rules, and activities among
nations. International organizations can be categorized into two:
International Governmental Organizations (IGOs) and
International Nongovernmental Organizations (INGOs or,more
commonly, NGOs).
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