Forms and Functions of

State and Non-state

Institution
• A state is an organized political community acting under a
government and united by common set of laws.
• The concept of the state is different from the concept of
government. A 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.
• As a state, it consists of actors with varying interests and
assertions, social rules are implemented in the forms of laws.
The State intends to be a strong actor in the performance of the three important
political functions. The state, in full form,
• maintains control over violence in its domain
• allocates resources and rewards at its discretion, and
• stands as the major focus of identity for the large majority of the
people under its authority.
Elements of the States

Population
• It is the people who make the state. Population is essential for the
state. Without population there can be no State.
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.
Government
• It is the organization or machinery or agency of the State which
makes, implements, enforces, and adjudicates the laws of the
state.
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

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.
Theocracy is a government by divine guidance or by official who
are regarded as divinely guided.
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.
Roles of the States

• State provides security against external aggressions and war. For

this purpose, the state maintains an army.
• State ensures security against internal disturbances disorders and
crimes.
• For this purpose, the state maintains police.
• State legally grants and guarantees the rights of the people.
• The state issues and regulates currency and coinage.
• State undertakes steps for the creation of necessary conditions for
the socio-economic-politico-cultural development of the people.
• State grants citizenship and protects their interests and rights.
• State conducts foreign relations, foreign trade and economic
relations.
• 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.
a. Banks

• Bank is a financial institution licensed to provide several financial services to different

types of customers.
 Forms of Bank Description

Commercial Banks

 Financial deposit with security and convenience which could

be in the form of credit cards, debit cards, and check
 Provide business, individual, and personal loans, enabling
commercial banks to earn interest
 Serve as payment agents within and outside the country
through wire transfer
 Subjected to more regulations
Investment Banks

 Financial intermediaries that performs a variety of services for

businesses and some government § Issues securities to the
investing public
 Make markets, facilities, mergers, and other corporate
reorganizations
 Acts as brokers for institutional clients
 Under the supervision of regulatory bodies such as the
Securities and Exchange Commission
(SEC), FINRA, and the US Treasury
 Subjected to fewer regulations
b. 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.
 Common Types of Corporations
• 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.
Examples: HBO in partnership with International Rescue
Committee, Ford Motors and Lynda.com.
• 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.
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

 Checks out the big names of MNCs that are already exist in
the Philippines:
§ §
§ Google § HSBC
§
§ Viber §
§ Citibank
§
§ Palo Alto Networks §
§ Maersk
Procter and Gamble Hewlett Packard
Thomson Reuters Coca Cola Far East
Accenture Deutsche Bank
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.
There are several common types of co-ops,
including cooperatives owned and operated by:
• The people working there (worker cooperatives);
• The people buying the co-op’s goods or services (consumer
cooperatives)
• The people collaborating to process and market their products
• (producer cooperatives); and
• Groups uniting to enhance their purchasing power (purchasing
cooperatives)
Cooperatives play a critical role in building
community wealth for several key reasons:
• They often provide quality goods and services to areas that have
been shunned by traditional businesses because they are deemed
less profitable
• They typically invest in local communities
• Since most cooperative members are local residents, business
profits remain and circulate in the community
• Cooperative membership builds social networks and strengthens
social cohesion which are essential elements of a strong, healthy
communities by connecting diverse community residents
• Purchasing cooperatives help small, local businesses remains
competitive within markets dominated by large, national retailers
• Worker cooperatives create quality, empowering jobs for
• community members
•
d. Trade Unions/Labor Unions
• Trade Unions are organizations formed by workers from related
fields that work for common interest of its members.
• The purpose of these unions is to look into the grievances of
wagers and present a collective voice in front of the management.
Functions of Trade Unions:
• Advocating for fairness and equality for workers’ compensations
• Securing better working conditions for workers
• Trade Unions will organize strikes and demonstrations on behalf of worker
demands
• Fight for social welfare for workers
• Promote and advocate for education and proper training for workers
• Advocate and fight the government for legislative protections of the workers
• Promote and advocate for organizational growth and stability
• Trade Unions acts as representatives of workers in national and international
forums
• Involved in collective bargaining agreements and disputes with management to
settle any conditions on employment
• Advising management on correct personnel policies and procedures
• 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.
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.
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.
• 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.
Interrelationship of Government and Non-
state Institutions
• Integration among these two institutions may take place to
achieve precise solution towards development
• Conflict and tension may also arise because one could exceed the
other in terms of societal control and influences (Penninx, 2013)