Understanding

culture,society,
and politics

PREsented by: Forms and

GRoup 1 functions
of state
and non-
state
institution
Roles of
the States
The State provides security against both
external threats (army) and internal
disturbances (police).
The State grants and protects the rights of
the people, including citizenship.
The State issues and regulates currency to
manage the economy.
The State creates conditions for socio-
economic, political, and cultural
development.
The State manages foreign relations, trade,
and national interests internationally.
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.
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.
Table 1. Major forms of banks and their description
Forms of Bank Description

Financial deposit with security and

convenience which could be in the form of
credit cards, debit cards, and check
Provide business, individual, and personal
Commercial Banks loans, enabling commercial banks to earn
interest
Serve as payment agents within and outside
the country through wire transfer

Financial intermediaries that performs

a variety of services for businesses and
some government
Issues securities to the investing public
Investment Banks
Make markets, facilities, mergers, and
other corporate reorganizations
Acts as brokers for institutional
Corporations
It 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.
Common Types of Corporations
For-profit entities form most corporations,
A corporation can be and they are formed to generate revenues and
provide a return to their shareholders,
created by a single
according to their percentage of ownership in
shareholder or by the corporation.
multiple shareholders Not-for-profit entities operate under the
who come together to category of charitable organizations, which
pursue common goal. A are dedicated to a particular social cause
corporate can be such as educational, religious, scientific, or
formed as a for-profit research purposes. Rather than distribute
or a non-for-profit revenues to shareholders, not-for-profit
organizations use their revenues to further
entity.
their objectives.
 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.

Table 1. The Good and bad Effects of MNCs

Good Effects Bad Effects

Introduce technology Offer ill-suited technology

Encourage economic growth Retard economic growth

Encourage interdependently Cause dependency

Elites learn to regulate Elites become compradors

Promotes human rights Harms human rights

Protect the environment Hurt the environment

Economic actors Political actors

Promote a cosmopolitan world Damage national Culture

Cooperatives
A cooperative is an organization owned and
operated by a group of individuals who
share common goals, whether as workers,
consumers, producers, or buyers. Members
contribute resources, participate in
decision-making, and benefit from shared
profits or services.
 Consumer Cooperative
Worker Cooperative
An organization owned by its
A business owned and managed by
customers, who become
its workers, where each member
members by paying a fee and
shares labor, decision-making
gain benefits like discounts and
power, and profits equally
voting rights on store policies

Producer Cooperative Purchasing Cooperative

A group formed by producers— A cooperative where businesses
such as farmers or artisans— or individuals pool their buying
who collaborate to process, power to purchase goods in
market, and sell their products bulk at lower prices, increasing
collectively. savings and profit
Cooperatives play a critical role in building
community wealth for several key reasons:

a. They often provide quality goods c. Since most cooperative

and services to areas that have been members are local residents,
shunned by traditional businesses business profits remain and
because they are deemed less circulate in the community.
profitable.

b. They typically invest in local

communities
Trade unions/Labor Unions
Trade Unions are groups of workers from the same or related jobs
who join together to protect their rights and fight for their common
interests.
Make sure workers get fair pay.
Ensure safe and good working conditions.
Organize strikes or protests if workers’ needs are ignored.
Push for benefits and social welfare for workers.
Support education and training for workers.
Ask the government to pass laws that protect workers.
Help their organization stay strong and stable.
Represent workers in meetings locally and abroad.
Negotiate with management about salaries, benefits, and work
rules.
Give advice to management on treating workers fairly.
Handle complaints and problems between workers and management.
 Transnational Advocacy
Groups (TAGs)
are organizations that play an important
role in international and regional politics.
They help change the policies of multilateral
organizations and states, especially in areas
like human rights, environmental issues, peace,
and women’s rights. TAGs act as international
catalysts for change by forming advocacies
and campaigns that represent causes, ideas,
values, and beliefs.
Development Agencies
Development agencies are organizations, either
local or international, dedicated to promoting
sustainable development and improving the
quality of life in societies. They play an
essential role in assisting governments and
communities by implementing development
programs and policies that address social,
economic, and environmental challenges.
 Types of development
agencies

International organizations
• These are formal institutions created by treaties among
sovereign states to address global and regional issues that
require collective action. They help establish political
institutions where states can cooperate to achieve common
goals. They collect data, monitor trends, provide services (e.g.,
health, trade), and offer forums for negotiation and dispute
settlement.
 Types of development
agencies

Non-Government Organizations
(NGOs)

NGOs are independent from governments and focus on

specific social, cultural, political, or humanitarian
issues. They act as implementers, advocates, and
partners working at grassroots levels to provide aid,
promote human rights, influence public policy, and
mobilize communities.
THAnk you for listening!