Forms and Functions of

State and Non-state

Institution
REPORTER: GRECIA, RAMIREZ, NUÑEZ
Society consists of social structures and social institutions that are
governed by norms and values. Each individual in a society has
specific roles and functions that are meant to achieve balance in the
society. However, the pursuit of interests generates various
conflicts in the society. Competition over resources is often the
source of conflict. By the end of World War II, various
humanitarian issues and crises took place. More than 6 million was
displaced at the end of war. Faced with this large-scale of
humanitarian crisis, international community responded with
various measures including the establishment of the Office of the
United Nations High Commissioner for Refugees (UNHCR) in
1950.
The large-scale of human predicament show how human
rights are being violated by the institutional actors such as
government. This incidence leads to the creation of state and
nonstate institutions. These institutions became relevant in
the advent of globalization and urbanization.
After going through this module, you are expected to explain the different
form and functions of state and non-state institutions.
Specific Objectives:

a. identify the different forms and functions of state and non-state

institutions;

b. describe each form of state and non-state institutions;

c. explain how state and non-state institutions function.

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. 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.
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
COMMERCIAL BANKS INVESTMENT BANKS
 Financial deposit with security and Financial intermediaries that performs a
convenience which could be in the variety of services for businesses and some
form of credit cards, debit cards, and government
check Issues securities to the investing public
• Make markets, facilities, mergers, and other
 Provide business, individual, and corporate reorganizations
personal loans, enabling commercial • Acts as brokers for institutional clients
banks to earn interest • Under the supervision of regulatory bodies
 Serve as payment agents within and such as the Securities and Exchange
outside the country through wire Commission(SEC),FINRA, and the US
transfer Treasury
 • Subjected to fewer regulations
Subjected to more 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
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 craftsmanship, 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.
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
 Introduce technology
 Encourage economic growth
 Encourage interdependently
 Elites learn to regulate
 Promotes human rights
 Protect the environment
 Economic actors
 Promote a cosmopolitan world
Bad Effects
 Offer ill-suited technology
 Retard economic growth
 Cause dependency
 Elites become compradors
 Harms human rights
 Hurt the environment
 Political actors
 Damage national Culture
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 membership builds social networks and strengthens social cohesion
which are essential elements of a strong, healthy communities by connecting
diverse community residents
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.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)