UNIT 12: Non-State Institutions

Table of Contents
Introduction 3
Essential Questions 4
Learning Targets 4
Lesson 1: Non-State Institutions: Banks and Corporations 5
Starting Out 5
Learn about It! 5
History Maker 11
Check Your Understanding 12
Putting Value 13
Lesson 2: Non-State Institutions: Cooperatives and Trade Unions 13
Starting Out 14
Learn about It! 14
History Maker 19
Check Your Understanding 20
Putting Value 21
Lesson 3: Non-State Institutions: Transnational Advocacy Groups 21
Starting Out 22
Learn about It! 22
History Maker 27
Check Your Understanding 27
Putting Value 28
Lesson 4: Non-State Institutions: Development Agencies 29
Starting Out 29
Learn about It! 30
History Maker 33

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Check Your Understanding 33
Putting Value 35
Lesson 5: Non-State Institutions: International Organizations 35
Starting Out 35
Learn about It! 36
History Maker 40
Check Your Understanding 41
Putting Value 42
Real-world Challenge 43
Society and I: Self- Check 46
Wrap Up 46
Bibliography 48
Answers to Check Your Understanding 50
Glossary 51

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GRADE 11/12 |Understanding Culture, Society and Politics
UNIT 12

Non-State Institutions
The structural-functionalist perspective tells us that every part of the society performs a
specific function. These structures can be likened as different organs in an organism that
plays a role for the continuous operation of the whole organism itself. This perspective
recognizes that every societal structure and institution is important for the maintenance of
harmony and success in every society. Aside from these structures and institutions such as
the government, education, and church, there are other institutions that operate outside the
borders of any state. Nevertheless, they function to contribute to the overall goal of every
society.

Fig. 1. Different States across the Globe

Pixabay.com. Accessed February 14, 2018. https://www.pexels.com/photo/atlas-continent-country-creativity-269850/

It is undeniable that every country, developed or developing, is dealing with a myriad of

different societal issues. These issues may include poverty, hunger, unemployment, or
illiteracy. In developing countries such as the Philippines, these issues are more conspicuous
and severe. It is then the responsibility of the state or the government to attend to these
issues and make actions to improve the conditions of people in the society. Even with its
power, one government cannot do it alone; it is important to seek help from other institutions
that are more equipped to respond to the different issues of the state. In this unit, we explore

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these institutions as we try to answer these following essential questions.

• What is the significance of banks and corporations in the economic

development of a state?
• How do cooperatives and trade unions contribute to the social and
economic growth of workers and community members?
• How is the power of information and ideas used to influence states
and state behavior?
• In what way do development agencies promote development in
different states?
• How do different states create cooperation among each other to
promote their common interests?

Learning Targets
In this unit, you should be able to differentiate functions of non-state institutions in society.

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Lesson 1: Non-State Institutions: Banks
and Corporations
The economy of a state is one indication of its level of development. This is the reason why
the government constantly seeks to engage in investments and businesses that would
influence the economic growth of the country. In this lesson, two non-state institutions that
directly or indirectly affect a state’s economic growth will be discussed.

Starting Out

On a piece of paper, list down all the products and services that you are grateful for. They can
be any material, like school supplies or gadgets. They can also be services like communication
and transportation. After listing everything, think about the companies behind the goods and
services that you wrote on your paper. Are they private companies or services from the
government? Reflect on the following questions after naming the companies:

• What is the significance of these companies in my life?

• Do these companies have a bigger role in the society?

Learn about It!

Non-State Institutions

Non-state institutions are groups and organizations which operate outside the support of
any state or government. They are referred to be ‘stateless’ since they are considered to be
independent of any state, although, they usually collaborate with the government in
implementing projects. Non-state institutions assume different functions and focus on a
specific objective. In general, they develop certain services needed by members of the society

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for their progress.

Non-state institutions are groups and organizations which operate outside the
support of any state or government.

There are different non-state institutions that operate in society. Two of them are banks and
corporations.

Banks

The term ‘bank’ has no single definition for many authors have provided their own definition
of it. For the purposes of uniformity, we define a bank as a financial institution licensed to
provide several financial services to different types of customers. Banks are in operation
mainly for their deposit and lending function. Customers are allowed to deposit their money
to banks which grow through an interest rate. Banks also provide loans, at a higher interest
rate, to customers who need money either for personal consumption or for investment and
businesses. This process of taking in deposits and lending them to customers in need is called
financial intermediation. This means that the bank serves as a connecting link between its
depositors and borrowers of money.

Banks also act as a custodian of customer’s money, which help guarantee the safety of each
deposit. When a person puts his money in a bank, the amount given is maintained in a
deposit or savings account which prevents the risk of theft and robbery. Certain types of bank
accounts also make it possible for customers to withdraw money as needed. This ensures a
more secured transaction of funds.

Some secondary functions of a bank include money remittance, which make it easier for
people to send money from one place to another. This holds importance especially for
overseas Filipino workers (OFWs) who provide financial assistance to their families in the

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Philippines. Most banks also accept payments to house and other utilities such as electricity
and water utility. This function of the bank eases the transaction of its customers with utility
companies. Other bank functions include currency exchange, allowing customers to convert
foreign currencies to another currency they need and safety deposit boxes, which provides
customers a safe place to keep their priced possessions (e.g. gold, silver, or jewelries).

Can you think of any other functions of a bank? How is it significant to you and your
family?

Due to the countless services that banks provide, there are types of bank which only specialize
in a specific bank function. However, there is no clear line categorizing banks to a classification
since one bank may engage itself in several functions. In this case, a specific bank can be
classified into two or more bank types. Some of the most common types of banks are as
follows:

• A retail bank is a type of bank that focuses on consumers or the general public as its
customers. One’s personal bank account, like checking and savings account, are usually
in a retail bank. Retail banks can be considered to be the most common and
widespread of all the types of banks.
• A commercial bank also provides the same services as a retail bank; however, it
focuses on businesses and businessmen as its main customers. Commercial banks
provide short term loans for businessmen to be used for investment purposes.
• An investment or an industrial bank provide medium and long-term loans and
deposits to business industries.
• Agricultural banks, as the name suggests, caters to the financial needs of farmers and
the farming industry. They provide short-term and long-term loans to facilitate
agricultural activities. Loans from this type of bank is used for buying seeds, fertilizers,
land, or any materials needed for farming. An agricultural country such as the
Philippines is unsurprisingly abundant of agricultural banks. Examples of which are the

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Agricultural Bank of the Philippines and Land Bank of the Philippines.
• The central bank is the main financial institution in a country since it supervises the
monetary system in the country. It functions as a regulating institution to all other
banks in a country and it issues all the bank notes (or money bills) and coins of the
country in which it operates. The Bangko Sentral ng Pilipinas is the central bank of the
Philippines. A central bank is the only banking institution established through a special
law of the government, which makes the government of great influence to its central
bank.

A Closer Look at Corporations

If you try to think of companies and businesses you know, it is possible that some of them are
corporations, since corporations are one of the most commonly known non-state institutions.
A corporation is an organization, created by a group of people known as shareholders, which
is legally recognized to act as a single person in carrying out certain goals and objectives. As a
‘legal person’, a corporation is mandated to enjoy the rights, privileges, and responsibilities of
an individual. Using its own name, a corporation has the right to enter into contracts, to hire
employees, and to loan and borrow money. It is also authorized to have its own assets. Any
corporation-owned property belongs to the corporation itself and not to the owners of the
corporation. Like most individuals, a corporation is also obligated to pay taxes. This non-state
institution is created to operate businesses and to pursue a common objective, may it be
profit-oriented or not. Although, many corporations are usually set up for profit.

It is important to take note that a corporation is a distinct and separate entity from the people
who own it. This enables the corporation to have powers and liabilities of its own. Any debt of
the corporation is the responsibility of only the corporation itself; shareholders cannot be
personally held accountable for these debts. This feature also enables the corporation to sue
and be sued in behalf of its name. Any lawsuits directed to the corporation is solely the
responsibility of the corporation itself and not of its owners.

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Can you think of an example of a corporation? What is the goal of this corporation?

There are different types of corporations that are classified based on specific factors like the
corporation’s purpose, manner of taxation, and number of shareholders.

• A business corporation is created to operate and to generate profit. Companies like

McDonald’s and Starbucks are examples of a business corporation.
• A non-profit corporation is established with a purpose of serving the public rather
than pursuing profits.
• A corporation whose income is taxed through the corporation itself is a C-corporation.
• An S-corporation is taxed through its shareholders. An S-corporation can only have
less than 100 shareholders, unlike a C-corporation which can have an unlimited
number of shareholders.

Banks, Corporations and their Social Implications

Banks and corporations both play a part in the economic growth of society. As mentioned
earlier, financial intermediation in a bank allows the institution to issue loans to borrowing
customers (individual or group) who need money for their investment, at a higher interest
rate. This loan will, then, facilitate businesses and investments. In short, loans from the bank
will keep businesses going. Continued operation of businesses leads to greater chances of
generating more income for the business and increasing employment. More income would
entail more savings to be deposited in a bank which will be used to lend to future customers.
In this case, it can be seen that the bank plays a role in facilitating the cycle of expediting
investments and generating more income and savings.

Corporations also contribute to society and its economic growth. For one, many business
corporations are set to provide a myriad of products and services that help people in different

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ways. These products and services would not, however, be possible if not with the help of
several workers employed by these corporations. In this scenario, it is, then, unquestionable
that as corporations make innovations that help us in every aspect of our lives, they also
create millions of job opportunities for people. Both shareholders and employees will benefit
from their income, which will in turn contribute to the economic growth of society in general.

However, most perspectives on business suggest that the main concern of business
corporations is to only generate profits, even at the expense of environmental and social
degradation. This is most definitely present in developing countries such as the Philippines, in
which raw materials and human resources are exploited by foreign and local business
corporations. It is, then, important that corporations must evolve in terms of their role in
making sustainable development a possibility. Recent research studies suggest that business
corporations employ their resources to create initiatives in helping reduce environmental
degradation. Some also work with the government and non-government organization to
promote sustainable development and social welfare.

Due to its abundant natural resources, the Philippines has become a hotspot for
foreign corporations to perform mining operations within the country. Although mining
operations contribute to economic growth, there were also negative effects such as
destruction of the environment and exploitation of human resources through cheap
labor. What is your stand on this issue? Should we allow foreign companies to operate
in our country? If yes, can you think of ways to help mitigate the negative effects of
such operations to the people and environment?

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Fig. 2. Bill Gates
Accessed February 14, 2018.
https://commons.wikimedia.org/wiki/Bill_Gates#/media/File:Bill_Gates_in_WEF,_2007.jpg
Bill Gates is one of the brilliant entrepreneurs who established the world’s most
successful software business. Together with his business partner Paul Allen, they
were able to dominate the market through their innovations in technology. In time,
his company has become one of the largest corporation in the world.

Although Bill Gates had already contributed greatly to the development of the world
through his technological innovations, he did not stop there and still worked by co-
founding the Bill & Melinda Gates Foundation. This foundation aims to alleviate
poverty and increase access to educational opportunities and technologies, in
America.

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Check Your Understanding

A. Fill in the blanks with the correct answer.

1. Institutions and organizations which operate outside the support of any state or
government is called _____________________.
2. A financial institution which provide several functions such as accepting deposits and
issuing loans to borrowing customers is termed as _____________________.
3. The process of taking in deposits and lending these deposits to customers in need is
called _____________________.
4. A corporation which is created to generate profit is termed as _____________________.
5. The most common type of bank that has the general public as its main customers is
_____________________.

B. What is the relationship of Bangko Sentral ng Pilipinas to commercial banks?

_________________________________________________________________________________________________
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C. Discuss the advantages and disadvantages of having corporations operating in the

Philippines.
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Putting Value

Look for a partner and discuss about the value and importance of banks and corporations to
your lives in the society. Are you satisfied about the contribution of these non-state institution
to the development of your country? If not, can you suggest ways on how these non-state
institutions can help contribute more to the economic growth and social progress of the
Philippines?

Lesson 2: Non-State Institutions:

Cooperatives and Trade Unions
Employment and job opportunities are determinants of a state’s social progress. It is even
part of the universal human rights for individuals to be able to develop not only socially and
culturally, but also economically. This right is strengthened by other rights that protect
workers and laborers. In line with this, there are non-state institutions that protect these
rights, while also promoting economic development of the community in general.

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Starting Out

Rallies and labor protests become increasingly rampant in the Philippines, every first of May
(Labor Day). Many workers and activists come together to express their demands and
complaints to the administration about their working conditions. Issues like the increase of
minimum wage and the end of contractualization are raised and demanded by labor unions
and other groups which represent several workers and laborers in different industries.

Keeping the situation in mind, what do you think is the significance of labor unions? Are they
important to the development of a state? What are other groups and institutions that
promote the development of workers and their communities?

Learn about It!

Cooperatives

According to the International Labor Organization (ILO), a cooperative is “an autonomous

association of persons united voluntarily to meet their common economic, social, and cultural
needs and aspirations, through a jointly owned and democratically controlled enterprise”.
Members of a cooperative usually joins together in order to achieve a specific objective, an
objective which usually benefits the members of the organization itself. In short, cooperatives
are mainly structured to benefit its members and to satisfy its members’ needs. In a
cooperative, the people who use its products or services are the same people who own and
control the organization. Cooperatives exist among different industries and are composed of
different types of people, may it be farmers, consumers, or workers.

There are several principles that uniquely characterize this non-state institution. It is an

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essential characteristic of a cooperative that its owners and financers are also the people who
use the cooperative. Meaning, in a typical cooperative, the customers are also the ones who
own the organization. These members or users are also the ones who have control over the
cooperative. They have the power to elect a board of directors which will handle the overall
operation of the organization. Users or customers of a cooperative are also the ones who
benefit from it. To have a clearer grasp of these principles characterizing cooperatives, let us
look at an example of a consumer cooperative.

Fig. 3. Supermarket owned by a Cooperative

Gregory, Ed. October 10, 2014. https://www.pexels.com/photo/food-healthy-vegetables-potatoes-5205/

The function of a consumer cooperative is to provide products and commodities needed by

people. A consumer cooperative may put up a supermarket to satisfy this necessity for certain
products. The people that serve as primary customers of the supermarket are usually the
people who created the cooperative itself. They created the cooperative because they needed
an organization that would meet their specific objective. Since these customers are the
financers and owners of the cooperative, they also have the power and control to elect their
board of directors through a democratic election (i.e. one vote per member). The board is
expected to spearhead the general operation of the supermarket. Although non-members of
the cooperative can also shop and be customers in the said supermarket, only cooperative
members are entitled to benefits and profits of the organization. Assuming that the
supermarket generated a profitable income, the cooperative must distribute this profit to its
customers who are also members and owners of the association. Benefits from such profits

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can be monetary in form or discounts to products sold.

The International Cooperative Alliance also came up with seven principles to characterize a
cooperative. These principles are as follows: (a) voluntary and open membership, (b)
democratic member control, (c) member economic participation, (d) autonomy and
independence, (e) education, training and information, (f) cooperation among cooperatives,
and (g) concern for the community.

There are several types of cooperatives, depending on its specific function and purpose.

• A credit cooperative provides financial services to its members, including securing

savings and creating funds to be used for issuing loans.
• A consumer cooperative operates mainly to obtain and distribute products and
commodities to its customers, both members and non-members.
• Producer cooperatives aids those in the sector of production, either agricultural or
industrial. A subtype of a producer cooperative is agricultural cooperatives which help
producers or farmers in marketing their crops as well as in purchasing supplies needed
for further production.
• A service cooperative (or a worker cooperative) concentrates on helping workers in
the service-oriented occupations (i.e. health care, transportation, labor) by creating
employment opportunities and other benefits to its members.
• A multi-purpose cooperative undertakes two or more functions of different
cooperatives. For example, multi-purpose cooperative could act as a consumer
cooperative and establish a supermarket. At the same time, it could also provide
financial services like a credit cooperative.

Are you aware of any type of cooperative in your community? What do you think is
its contribution to community members and to the community at large?

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Cooperatives are viewed as an important mechanism for the improvement of people’s lives,
especially for those who live in communities which are relatively neglected by the state or
other companies. Through cooperation among members, cooperatives become able to
provide goods and services that are needed in the community. In addition, cooperatives also
create job opportunities and generate income for community members. Participation in a
cooperative also strengthens social cohesion among people in the community, resulting to
more activities that will further improve the lives of not only the members of cooperatives but
also other members of the community.

Trade Unions

Part of the universal human rights of every individual is his right to organize and form
associations that would protect his rights as a worker; the embodiment of this right is trade
unions. A trade union or labor union is an organization with a membership composed of
workers or employees from related fields, which aim to represent the interests and rights of
its members, both in the workplace and in the society. While an individual has the capacity to
demand better conditions from his employer, trade unions recognize that a unity of several
employees would act as a more powerful tool in advancing these interests. This is how trade
unions became the voice of the workers to the management; they serve as link between
employees and their employers. Trade unions work to improve certain issues like wage
adjustment, good working environment, and rewards and other benefits.

A trade union is a non-state institution composed of workers as its members, which

aim to protect and improve workers’ interests in the workplace.

As the representative of workers to the management, it is a function of trade unions to

understand the demands and complaints of workers and raise these new demands to
employers. These demands are then discussed through collective bargaining which is the
process of negotiation between workers and employers, to arrive at an agreement about

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terms and conditions of employment. This agreement may include negotiations of pay,
working conditions and hours of work, promotions and termination, benefits, and
professional development (e.g. workshops and seminars). Also included in a trade union’s
functions is to enforce these terms of employment that was agreed upon in a collective
bargaining. Trade unions also have the ability to back up and support individual employees in
their personal grievances. For example, a factory worker who is a victim of sexual harassment
in the workplace can ask for the help of the trade union in filing her case against the
wrongdoer.

There are different types of trade unions according to its members.

• A general union represents workers with a range of jobs and skills, from different
industries and companies. An example of this type of union is a trade union of drivers,
janitors and office workers.
• Industrial unions are composed of workers from one particular industry, across
different levels of the hierarchy. A trade union of all employees who work in the mining
industry (with different levels and positions) is an example of an industrial union.
• A craft union seeks to represent skilled workers doing the same work who may be
employed in different industries. A craft union of carpenters is one example.
• A white-collar union is composed of professionals doing similar jobs across different
industries. A trade union of teachers and professors is an example of a white-collar
union.

Although there are many types of trade unions, these classifications still perform the same
functions expected from a trade union. In addition, a trade union may not only be limited to a
particular company. There are unions in the Philippines which are composed of several
workers from different companies.

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In 2017, the Philippines experienced several transport strikes organized by transport
group to protest certain issues like the ‘jeepney phase-out’, and transportation fare
increase. In your opinion, what could be the role of labor unions in these protests? Can
you think of other ways a labor union can do in order to meet the demands of jeepney
drivers?

The ACDI Multipurpose Cooperative is one of the largest cooperatives in the Philippines. It is
estimated to have an asset of 12 Billion pesos in 2014. It is also awarded as the Gawad
Parangal Most Outstanding Large Scale Category by the Cooperative Development Authority in
2015.

Bulk of the cooperative’s membership is stakeholders from the Armed Forces of the Philippines
(AFP). These include the military in active service, retirees, the reserved force, and civilian
employees of the military. They operate to contribute to sustainable growth, people
empowerment, social development, and nation building.

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Check Your Understanding

A. Fill in the blanks with the correct answer.

1. An independent organization created mainly to benefit its members and to satisfy its
members’ needs is called _____________________.
2. A non-state institution composed of workers and employees that aims to improve
working conditions of workers is termed as _____________________.
3. The on-going process of negotiation between representatives of the labor union and
representatives of the management, aiming to arrive at an agreement about conditions
of employment is called _____________________.
4. The type of cooperative that provides financial services like securing savings and issuing
loans is a _____________________.
5. A classification of trade union which represents workers with a range of jobs and skills,
from different industries and companies is termed as _____________________.

B. Compare trade unions and cooperatives. What are their differences and similarities? Write
your answer in a venn diagram below.

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C. Evaluate the roles and function of trade unions and cooperatives to the overall
development of a country.
_________________________________________________________________________________________________
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_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________

Putting Value

Can you imagine a society without trade unions and cooperatives? Think about it for a while
and try to come up with possible outcomes resulting from it. What would become of our
workers and their families if there are no trade unions to represent them? What would
happen to the development of small communities with the absence of cooperatives? Reflect
on these and decide whether these non-state institutions are indeed important or not.

Lesson 3: Non-State Institutions:

Transnational Advocacy Groups
As mentioned earlier, there are several societal issues in every country; and states are
expected to respond to these issues. However, due to different reasons, there may come a
time when a state neglects certain issues that affect the lives of people in the society. In this
case, certain groups use the power of information to express state issues that need to be
heard. A specific type of non-state institution performs this function in one or more country.

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Starting Out

In your class, form three groups with approximately equal members. Select a representative
for your group. This representative will be the one to pick a societal issue you will be depicting
in a tableau. Without using any words, you have to make the audience (your classmates),
understand which issue you are portraying. There are 4 possible scenarios to choose from—
hunger and food scarcity, environmental degradation, lack of health care, and human rights
violation in wars. Once you picked a scenario, you will be given 3-5 minutes to talk about your
tableau. After which, each group will present their work to the class. Following the activity,
students must answer and reflect on the following questions:

• What are the actors showing in the scenario?

• Are these scenarios happening in the real world?
• If yes, is there a need to depict these issues and make people aware about it? Why?
• How can you use the power of communication to increase awareness about these
issues?

Discuss your answers either within your own group or with the whole class.

Learn about It!

Defining Transnational Advocacy Groups

To have a general understanding of what a transnational advocacy group is, it is better to first
individually define terms that make of it. The word ‘transnational’ denotes something that
goes beyond one’s national borders. ‘Advocacy’ can be defined as issues or causes that are
being defended or supported by a certain group of people known as advocates. A ‘group’, as
you were familiarized in previous lessons, is generally defined as a collection of individuals
with significant relations among each other. Combining these terms and definitions, we may

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define a transnational advocacy group as a collection of actors (individuals or groups)
characterized by their fluid and open relations with each other, united by their commitment to
work on and defend certain issues and causes that are relevant across several nations. They
“use the power of information, ideas, and strategies to influence the value context within
which states make policies”.

A transnational advocacy group is a network of actors who have open relations with
each other. It is organized and united by members’ shared commitment to certain
transnational issues.

Transnational advocacy groups are also referred to as “transnational advocacy networks” due
to the nature of actors’ connection with each other. As discussed in a previous lesson,
networks are a web of weak social ties among groups and individuals. This definition may also
apply to the relationship of actors in a transnational advocacy group. Actors in the group can
be a combination of advocates and activists, non-government organizations, foundations,
church, media, politicians, or corporate business actors. Their relationships are not highly
structured and crystallized but they are loosely organized and connected as they share values
and exchange information about certain issues which they are committed to promote. The
word ‘transnational’ characterize this network of actors since members of a transnational
advocacy group come from different nations involved. In addition, the term ‘transnational’
also illustrates the group’s involvement to certain ‘trans-sovereign’ issues— issues that exist in
multiple countries. These issues include human rights, women’s rights, environmental
protection, and indigenous peoples’ rights.

Emergence of Transnational Advocacy Groups

The rise of transnational advocacy groups is sometimes rooted in conflicts between a state
and its members. It is not new information that governments are the supposed primary

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advocates of issues and causes experienced by state members. However, there are cases
wherein governments themselves commit actions against these issues (e.g. human rights
violations). In these instances, local advocacy groups connect with international ones in order
to help them influence the behavior of the state or government. In their research, Margaret
Keck and Kathryn Sikkink termed this characteristic of a transnational advocacy group as the
“boomerang pattern of influence.”

Fig. 3. Graphic Representation of the Boomerang Pattern of Influence

The boomerang pattern of influence happens when conflict about certain issues (e.g.
human rights), between the state and its members forces domestic advocacy groups to look
for allies in the international arena, in order to promote such issues and facilitate change
regarding the government’s behavior towards that issue. The link with international advocacy
groups amplify the demands of domestic groups which then echoes back to the state itself,
pressuring the government to make actions in support of these demands. This connection
between domestic advocacy groups and their international counterparts forms the very
essence of a transnational advocacy group. In the Philippine context, the boomerang pattern
of influence may be illustrated when human rights advocacy groups seek for the help of
international human rights groups to emphatically relay the issue of human rights violations
to the Philippine government and influence them to act on the issue.

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Functions and Strategies

The main function of a transnational advocacy group is the creation and development of
advocacies and campaigns about certain causes, issues, ideas, values and beliefs. These
campaigns aim to motivate changes in policies, which are necessary for the betterment of
people involved. Since this non-state institution do not have inherent power to make instant
policy changes in the state, they use, instead, the power of information dissemination,
together with other strategies, to influence state actors who are in legitimate position to
create such changes.

Keck and Sikkink named four tactics used by transnational advocacy groups to influence the
state’s behavior and policy making. These are information politics, symbolic politics, leverage
politics, and accountability politics. First, information politics is the ability to produce and
circulate accurate and credible ideas and information to persuade people and motivate them
to take action. Transnational advocacy groups do these through campaigns and other ways of
communication. Symbolic politics is the ability of the group to interpret and use symbols or
stories in such a way that it would emphasize the issue at hand. They provide explanations
about an event and connects it to the specific cause. For example, the death and extinction of
certain animal species may be used by environmental advocacy groups to raise awareness
about environmental degradation. Leverage politics enables transnational advocacy groups
to use some form of leverage, to tap and influence target actors that are powerful enough to
institute policy changes. These powerful actors may come from the government, larger
institutions (e.g. World Bank), or even corporate business owners. Lastly, accountability
politics happens as transnational advocacy groups convince state actors to change their
position about certain issues, and persuades them further to act upon their verbal support
about certain issues. Advocacy groups can use their power of information to expose the
discrepancy between an actor’s words and his action. Let’s take for example, a senator who
verbally expressed his support about protecting indigenous peoples’ rights. In this scenario,
the senator has confirmed his position about the issue, but he does not make any concrete
actions in support of the cause. Because of this, advocacy groups may point out to the public,
the inconsistency between the senator’s words and his actions (or lack thereof). This will then
push the senator be true to his word and translate them into concrete operations.

25
Fig. 4. A Farmer
Man Watering the Plant During Daytime. Accessed February 14, 2018. https://www.pexels.com/photo/man-
watering-the-plant-during-daytime-162637/

One issue in the Philippines is the predicament with which farmers constantly
experience. Aside from the generally difficult work of farming, this marginalized
sector of our society encounters injustices such as low income from their produce. If
you are an advocate of farmers’ rights, how will you help these farmers using any of
the four strategies employed by transnational advocacy groups?

Indeed, transnational advocacy groups performs an important function not only domestically,
but also internationally. They serve as catalysts for change, necessary to achieve
improvements toward state policies and practices which will lead to the betterment of all
members in the society.

26
Margaret Keck is a professor of comparative politics, Latin American Politics, and
Environmental Politics. She is also an author of a number of publications including
“Practical Authority: Agency and Institutional Change in Brazillian Water Politics” with
Rebecca Abers, and Greening Brazil: Environmental Activism in State and Society with
Kathryn Hochstetler. She has always focused her research on topics such as activism
and organization. Together with Kathryn Sikkink, she wrote “Transnational Advocacy
Networks in International and Regional Politics”, a research relaying the roles and
functions of transnational advocacy networks. In her work with Sikkink, Margaret Keck
described the boomerang pattern of influence of transnational advocacy networks.

Check Your Understanding

A. Fill in the blanks with the correct answer.

1. The non-state institution characterized by fluid and open relationships among actors who
are united by their commitment to certain issues and causes is called _____________________.
2. A characteristic of a transnational advocacy group that occurs when a domestic group
seeks help in the international arena, in order to promote further a specific cause and
influence the state’s or government’s behavior is termed as _____________________.
3. The main purpose and the first tactic used by a transnational advocacy group is
_____________________.
4. The ability to use symbols and events to emphasize certain causes and persuade people
to take action is called _____________________.
5. When an advocacy group exposes the inconsistency of a state actor’s words and
behaviors in order to persuade him to make concrete actions, it employs the tactic called
_____________________.

27
B. Give a concrete example which apply the concept of the boomerang pattern of influence in
the Philippine context.
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________

C. Which among the 4 strategies employed by transnational advocacy groups do you think is
the most effective? What is your reason behind your answer?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________

Putting Value

Form a group with at least 4-5 members per group. In your group, discuss about the protests
and rallies that you either heard from the news or on the internet. Take turns to share what
you know about the protests organized by your fellow Filipinos. Also, discuss about the
possible harm and risks of doing those protests. In spite of the dangers you talked about, why
do you think Filipinos are still motivated to do these rallies? How will it improve their lives?
Share your answers with your group and reflect on them.

28
Lesson 4: Non-State Institutions:
Development Agencies
In the previous lesson, we learn about transnational advocacy groups, a non-state institution
whose specific function is to create campaigns and advocacies about certain transnational
issues. However, the work of some non-state institutions does not stop with information and
awareness; some even go to the extent of supporting certain development projects through
funding or actual implementation. In this lesson, we discuss about this type of non-state
institution, development agencies.

Starting Out

Choose a partner and discuss about societal issues in the Philippines that you aware of. In a
piece of paper, list down at least 5 issues you have talked about. Try to be as specific and
concrete as you can. After writing everything, ranked them in terms of which among these
issues should be prioritized and responded immediately. Rank them from 1, being the most
important, and so on. Once you’ve finished, try to come up with ways on how to respond to
the issue you considered to be of utmost importance. Then, discuss and answer the following
questions below.

• What is your reason for choosing your number 1 issue to be of utmost importance?
• Why is there a need to respond to these issues in the society?
• Do you believe that there are ways to successfully manage these issues?
• Which individuals or groups of people (organization), do you think, should be involved
in the response towards such issues?

29
Learn about It!

Development Agencies

The establishment of development agencies can be found in history. In the Second World War,
many countries had been grounds for attacks and bombings which resulted to crises such as
starvation and food scarcity, among others. Because of these, many European countries saw
the need for the creation of an organization that would attend to the crises brought about by
the war. Development agencies were formed as a response to crises like war damage and
industrial decline. In some countries, such agencies were established with the hope of
stimulating economic development, post- war.

Development agencies have come a long way since they were first established, as thousands
of them are currently operating within the globe. Nonetheless, there is still no solid formula to
create this type of non-state institution since different development agencies across the world
have a range of specific functions and roles. This lack of common understanding about
development agencies makes it more difficult to define it. In general, we refer to
development agencies as groups or entities that are tasked and committed to pursue certain
developmental agendas of a state. They are an institution that provides help in support of a
state’s economic growth and social progress.

A development agency is an organization, local or international, which is committed in

pursuing specific developmental agendas of a state.

These groups may operate locally or internationally. They also vary in size, scale, and function.
Some may only concentrate their services on a specific region of a country, while others may
operate in many countries, providing services to several regions of different states. Some may

30
focus on a specific developmental agenda, while others may immerse themselves and operate
in more than one aspect of state development. For example, there may be developmental
agencies which focus only on economic growth by providing employment opportunities to
those in need. On the other hand, some developmental agencies may branch out more and
respond to more than one developmental issues about economic growth (e.g. employment,
income generation, and education) and social progress (e.g. food security and health care).

Development agencies are mostly perceived to work often in developing countries— those
which are considered relatively poor and in need of support and assistance to promote their
own economic and social development. However, there are also cases wherein such
organizations are formed to aid in the continuous progress of already developed countries. In
these cases, development agencies act as instruments in promoting economic
competitiveness and increased productivity of the developed state. This is done through
different programs and strategies.

How do you compare development agencies and national governments in terms of

their functions and roles towards development of their state? Is it necessary to
establish such agencies to aid for state development?

In general, these agencies participate in different projects that contribute positively to the
development of a recipient country. They usually work within a local development system,
which means that they collaborate with other organizations and corporations in a state to
implement such projects. They may also work directly or indirectly with the local government,
national or municipal, depending on the specific region in which they operate. These
partnerships with other key actors provide greater chances of success in their programs.
The formation of development agencies may be initiated by the public (i.e. government), or
private sector (i.e. donors), and it may also be established through the combined efforts of
both. Regardless, all development agencies are created not for profit, although, at times, they
may act like a corporate business enterprise, due to the nature of some of their tasks (e.g.

31
financing local investments, creating employment) and their organizational structure.

Roles of Development Agencies

As mentioned earlier, development agencies have a range of tasks. It is, however, important
to note that it is up to the organization to decide which among the wide array of tasks they will
pursue. Normally, specific tasks of a development agency are dependent on the aspect of
development it focuses on. In a research commissioned by the Organisation for Economic Co-
operation and Development (OECD), the roles of development agencies may include (a)
strategic roles, such as coordinating with local actors and international donors, monitoring the
local economy, and strategic planning for economic and local development; (b) asset and
investment roles, such as land and property management, funding and investing in local
development projects, income generation, and provision of grants or donations for other
organizations; (c) innovation, enterprise, skills, and employment roles, which include
workforce and skills development, employment creation, and support of small and medium
scale businesses; (d) promotional roles, like foreign investment promotions and project
management; and (e) capacity building roles which include providing technical assistance to
other local development organizations and informing them of good practices and models.

32
Fig. 5. Asian Development Bank Logo
Accessed February 14, 2018. https://upload.wikimedia.org/wikipedia/commons/5/52/New_ADB.PNG

One of the development agencies present in the Philippines is the Asian

Development Bank (ADB). It aims to help developing countries and provide services
and programs in order to reduce poverty and facilitate economic growth. Among the
tasks of ADB are issuing loans, grants, and providing technical assistance to other
development organizations and businesses. They focus on certain areas of
development such as infrastructures (e.g. transport, urban development, energy, and
water), environment, regional cooperation and integration, education, and finance.

Check Your Understanding

A. Fill in the blanks with the correct answer.

1. The non-state institution which generally refers to a local or international organization
which is committed to pursue specific developmental agenda of the state is called
_____________________.
2. The first wave of the emergence of development agencies occurred as a response to the
damages caused by the _____________________.
3. Development agencies mainly operate to promote _____________________ and

33
_____________________.
4. The organization who conducted a research and listed five general roles of a
development agency is the _____________________.
5. Development agencies are mostly expected to work in _____________________.

B. Can you distinguish development agencies from a transnational advocacy group? What is
their difference and what makes a development agency unique from other non-state
institutions?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________

C. Evaluate how development agencies affect the lives of people in your country.
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________

34
Putting Value

From what you have learned in this lesson, how important is the work of development
agencies to its recipient states? Create an artwork that depicts the important contributions of
development agencies to the lives of Filipinos.

Lesson 5: Non-State Institutions:

International Organizations
We now live in a world wherein national borders of states come to a blur. This phenomenon
brought about by globalization has paved way for a more inclusive and more prominent
international relations among different states. As a result, some non-state institutions are
established to govern this relationship. These are international organizations.

Starting Out

Looking back at the Second World War, many countries had participated or compelled to
participate in the war. The dispute between the allied and the axis powers resulted to intense
damage in several countries. Human rights, which was not yet a popular concept that time,
had been violated as many citizens, men and women, children and adults, were maltreated,
tortured or even killed. Since the damage was widespread in scope as several countries
participated, there might be difficulty in deciding which countries are accountable for such
crimes.

35
Fig. 6. Military in the War
June 8, 2016. Soldier in Camouflage Shirt. https://www.pexels.com/photo/soldier-in-camouflage-shirt-163347/

In the past, and in the present, wherein accountability is difficult to achieve due to the
transnational nature of the crime, how can we know who to blame? Who has the authority to
act on these international issues? Who can serve as an independent body to track and
monitor the behavior of different countries, from the outside?

Learn about It!

International Organization

The word international organization is an umbrella term used to refer to institutions

established by three or more states as voluntary members, formed through a formal
agreement or treaty, in order to promote cooperation and coordination among them.
Members of an international organization work together for the development and
management of their common interests. The main feature and characteristic of an
international organization which distinguishes it from other non-state institutions, is that its
membership is entirely composed of national states or governments. These member states
give power to the international organization which gives the institution some degree of
authority to manage and govern the same member states. International organizations tend to
focus on different agendas. The decision of what agendas to pursue by an organization
exclusively depends on the interests of its members. Some agendas may be economic (e.g.
finance and investments), humanitarian (e.g. human welfare, human rights), or environmental

36
(e.g. global warming, climate change, biodiversity) in nature.

An international organization is a non-state institution formed by a formal agreement

among three or more state members, in order to facilitate cooperation among them
and promote their common interests.

There are different types of international organizations. Generally, they can be categorized
into two namely international governmental organizations (or intergovernmental
organizations), and supranational organizations. Both categories have the same
characteristics mentioned above, however, they differ in terms of the degree of power given
by its members. An intergovernmental organization is a more common type of
international organization. In this category, member states do not surrender supreme power
to the organization itself. This means that the decisions of the institution still depend on all of
its members who have the capacity to vote, one vote per state. Intergovernmental
organizations illustrate global governance which means that regulation and coordination of
the states are only backed by shared goals and not by a formal and legal authority. As a
consequence, decisions and agreements made by the organization are not enforceable,
meaning, state members still has the power to choose whether to follow such decisions or
not, and the intergovernmental organization does not have enough power to force its
members to follow every decisions and agreements it comes up with.

The United Nations (UN) is inarguably the greatest example and the largest among
intergovernmental organizations. As of 2017, it is claimed to have a membership of 193 states.
It is composed of six main organs or departments. These are the General Assembly, the
democratic department of UN wherein every state is included and has one vote per state,
regardless of how developed a country is; the Security Council; the Economic and Social
Council (ECOSOC); the Trusteeship Council; the Secretariat; and the International Court of
Justice. The UN utilizes its funds through engagement in several agendas across different
member states. Some of the commonly known UN agencies in the Philippines include the

37
United Nations Children’s Fund (UNICEF), United Nations Development Programme (UNDP),
and other specialized agencies like the World Health Organization (WHO). These agencies
work with other international and local organizations to implement programs in a wide array
of agendas which include children’s welfare, global health, economic and cultural
development, environmental protection, relief operations, and other social services.

In rare but possible cases, state members can give sovereignty or a controlling power over the
international organization in which they are a part of. This category of international
organization is what referred to as a supranational organization. With a certain degree of
power and independence over its state members, supranational organizations have the
capacity to enforce decisions with which all members must obey. Failure to cooperate with
such decisions may result to investigations and consequences. The European Union, an
international organization of European countries, is currently the only international
organization with some degree of supranational power. Aspects controlled by the
supranational body that is the European Union include, economic policy, social policy,
immigration, education, and economic and political integration among its members.
Regardless of a supranational organization’s power, membership in this type of international
organization remains to be voluntary and states have the power to withdraw their
membership.

If you have the power to decide, which among the types of international organization
would you want the Philippines to be a part of? Why?

Significance of International Organizations

International organizations provide an avenue for different countries and states to connect.
This connection among countries help form international laws, norms, and ideas, which in
turn strengthen the relationship among member states. These norms also serve as guides on
ho

38
w to regulate and manage these member states. Through the development of these norms,
states are guided in their actions both locally and internationally. Due to the presence of an
independent international institution, issues that are present across different national
borders will be addressed and recognized. There will be a body to monitor actions of member
states and investigate those actions against humanity (e.g. human rights violation). In the end,
we can claim that international organizations have been embedded in the lives of people, as
they perform multiple functions— tasks that aim to improve the lives of people by pursuing
different development agendas.

The “Brexit” has been a hot issue in the international world in the past year. It is the
voting of the United Kingdom to withdraw its membership from the European Union.
This is because majority of people in the UK disagree with the policy of the European
Union about accepting refugees from Middle Eastern countries. The UK believed that
it is already not advantageous for their country to further be a part of the European
Union. Do you agree with the decision of the United Kingdom to defer its
membership? Based on the situation, can you think of disadvantages of being a
member of a supranational organization?

39
Fig. 7. Antonio Guterres
.Accessed February 28, 2018. https://commons.wikimedia.org/wiki/File:Ant%C3%B3nio_Guterres_2013-
pdf_norma-optimiertl.pdf

Antόnio Guterres is the ninth Secretary-General of the United Nations, who have
been in the office since January 2017. He was the Prime Minister of Portugal from
1995 to 2002 and was also the UN High Commissioner for Refugees from June 2005
to December 2015. Having exposed to vulnerable people and refugees from war
inflicted countries, Gutteres guaranteed to make human dignity as the core of his
work in the UN. He wishes to serve as a peace agent, a bridge-builder and promoter
of reform and innovation.

40
Check Your Understanding

A. Fill in the blanks with the correct answer.

1. An umbrella term used to refer to an institution formed by a formal agreement among
three of more state members, in order to facilitate cooperation among them and promote
their common interests is _____________________.
2. The category of international organization which do not have a supreme power over its
members is called _____________________.
3. A concept which refers to the regulation and coordination of states that are only backed
by shared goals and not by a formal or legal authority is termed as _____________________.
4. A type of international organization which possess a certain degree of controlling power
to enforce decisions and agreements for all member states to follow is
_____________________.
5. The one considered to be the largest intergovernmental organization, with more than
190 state members and pursues a wide a range of development agenda is the
_____________________.

B. Differentiate the two types of international organization— intergovernmental organization

and supranational organization. What are their similarities and differences?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________

41
C. What is the significance of having an international body to provide global governance
among state members? Provide concrete examples.
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________

Putting Value

In school or at home, try to research about different international organizations in which the
Philippines is a member. What are the specific agendas promoted by the international
organizations operating in the Philippines? Do you believe that these developmental agendas
are being implemented in your country? Try to look for these development projects in the
Philippines. Reflect on it and gauge the importance of these international organizations to the
overall development of the Philippines.

42
Real-world Challenge
Form 3-4 groups in your class. Read the paragraph below and perform the following tasks in
the GRASPS situation. Make sure to read the rubrics for the activity.

The members of the United Nations often hold different meetings to talk about specific issues
in the international community. Member states prepare their speeches addressing co-
members of the international organization. The UN also tries to be inclusive by inviting other
organizations and development agencies to relay their observations and data about specific
issues that are relevant to the agendas of the UN. Commonly, there are also individuals who
share their first-hand experience about a certain issue. Victims of sexual abuse, torture,
discrimination, or diseases often share stories of their experiences to UN meetings. These are
done to motivate member states to act on the issues at hand.

43
Goal:
• Your task is to create a simulation of a UN meeting.
• The goal is to inform your classmates about a specific issue or agenda you
have chosen.
• The challenge is to come up with a project proposal as a response to your
chosen issue.
(You can choose among the following issues: human rights violation,
environmental degradation, poverty, health care, and food scarcity. You can also
think of other issues you want to discuss.)

Role:
• You are leaders of the member states of the United Nations. You can also be
representatives of other organizations or victims of certain issues.
• You have been asked to discuss about the specific issue, present data or
stories of victims, and make a plan as to how to respond to the issue at hand.

Audience:
• The target audience is your classmates and your teacher.

Situation:
• The context you find yourself in is the United Nations Headquarters in New
York.

Product/Performance and Purpose:

• You will create a short presentation depicting a UN meeting about your chosen
issue.
• You need to develop concrete ways to respond to the issue. Collaborate with
other organizations in coming up with the project plan.

Standards & Criteria for Success:

• Your work will be judged by the following standards on the next page.

44
Criteria Beginning Developing Accomplished Score
(17-20 points)
(0-12 points) (13-16 points)

Content
(Focus on details are clearly
evident; it is clearly related
Presentation

to the topic.)

Organization
(Logical progression of
details; clear transitions
between ideas.

Conventions
(spelling, mechanics,
grammar and usage)

Team Work
(contributions from all
members to the fruition of
the work)
Task-specific

Audience Impact
(interesting presentation to
get the attention of
students)

Knowledge
(shows in-depth research
about the chosen issue and
in creating the project
proposal)

Total Score:

45
Society and I: Self-Check

Check I can…

Explain the meaning of non-state institutions

Differentiate the functions of different non-state institutions

Discuss different non-state institutions

Appreciate what I learned and see its application to the real world

Reflect

I find __________________________ the most interesting because ______________________.

I got ____ checks because _______________________________________________________.
I need to improve on _______________________because _____________________________.
I need to practice _________________________ because _____________________________.
I plan to _____________________________________________________________________ .

Wrap Up
● Different types of non-state institutions perform specific functions that aid the state in
its development.
● Banks and corporations operate and contribute to the economic growth of a state
through loans and investments that generate income.

46
● Trade unions protect rights and interests of workers and employees. They are the
representative of the employees to the management.
● Cooperatives are important mostly in small communities since it facilitates the
economic development of such communities through its various functions.
● Transnational advocacy groups do not have inherent political power to create policies,
but they use their power of information (e.g. campaigns and advocacies) to influence
state leaders to make policy changes.
● There is no definite formula as to what creates a development agency, but in general, it
performs certain tasks and roles that help states to meet their development agendas.
● International organizations serve as an independent body that regulates behaviors of
its state members. It facilitates coordination among state members in order to reach
their common national interests.

Non-State Institutions

Banks and Cooperatives and Transnational Development International

Corporations Trade Unions Advocacy Groups Agencies Organizations

Defining
Non- State Development International
Cooperatives Transnational
Institutions Agencies Organization
Advocacy Groups

Emergence of Roles of Significance of

Banks Trade Unions Transnational Development International
Advocacy Groups Agencies Organizations

A Closer Look at Functions and

Corporations Strategies

Banks,
Corporations and
their Social
Implications

47
Bibliography

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9, 2018. https://jlp-law.com/blog/cooperatives-in-the-philippines-an-introduction/.

“Corporation 101: The Role of Corporations and Corporate Governance”. Business Roundtable.
Accessed February 7, 2018. http://businessroundtable.org/resources/corporations-101-
the-role-of-corporations-and-corporate-governance.

Arora, Himanshu. 2017. “Banking in India: Definitions, Functions and Types of Banks”. Civils
Daily. Accessed February 8, 2018. http://www.civilsdaily.com/blog/banking-in-india-
definition-functions-and-types-of-banks/.

Asian Development Bank. Accessed February 13, 2018. https://www.adb.org/about/our-work.

“Bank Meaning and their Functions and Structure”. Bank 4 Study. Accessed February 8, 2018.
http://www.bank4study.com/2015/02/bank-meaning-and-their-functions.html.

Bruce, Steve and Steven Yearley. 2006. The Sage Dictionary of Sociology. London: SAGE
Publications Ltd.

“Cooperatives”. Community-Wealth.org. Accessed February 9, 2018. https://community-

wealth.org/strategies/panel/coops/index.html.

“Cooperatives”. International Labour Organization. Accessed February 9, 2018.

http://www.ilo.org/global/topics/cooperatives/lang--en/index.htm.

“Definition of ‘Trade Union’”. The Economic Times. Accessed February 9, 2018.

https://economictimes.indiatimes.com/definition/tradeunion.

“Extension: What are International Organizations”. EU Learning. Accessed January 13, 2017.
https://carleton.ca/ces/eulearning/?p=282.

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Elwell, Frank W. Glossary of the Social Sciences. Oklahoma: Rogers State University.

Encyclopædia Britannica. Accessed February 9, 2018. http://www.britannica.com.

Investopedia. Accessed February 7, 2018. https://www.investopedia.com.

Keck, Margaret E. and Kathryn Sikkink. 1999. Transnational Advocacy Networks in International
and Regional Politics. Oxford: Blackwell Publishers.

Macionis, John. 2012. Sociology. 14th ed. Boston: Pearson Education Inc.

McGlinchey, S., ed. 2017. International Relations. England: E-International Relations Publishing

Mountford, D. 2009. Organising for Local Development: The Role of Local Development Agencies.
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www.oecd.org/dataoecd/54/41/44682618.pdf?contentld=446.

Pritchard, Justin. 2017. “Get Up to Speed on the Most Common Types of Banks”. The Balance.
Accessed February 8, 2018. https://www.thebalance.com/types-of-banks-315214.

Serafeim, George, E. Kaiser, J. Linder, I. Naranjo, K. Nguyen-Taylor and John Streur. 2015. The
Role of the Corporation Society: Implications for Investors. Boston: Eaton Vance
Distributors Inc.

“Trade Union”. Business Dictionary. Accessed February 9, 2018.

http://www/businessdictionary.com/definition/trade-union.html.

“Types of Corporations”. Legal Match. Accessed February 7, 2018.

https://www.legalmatch.com/law-library/article/types-of-corporations.html.

“Types of Trade Union”. S-Cool. Accessed February 9, 2018. https://www.s-cool.co.uk/a-

level/business-studies/people-in-the-workplace/revise-it/trade-unions.

US Legal. Accessed February 7, 2018. https://uslegal.com.

49
“What is Cooperative”. University of California Cooperative Extension. Accessed February 9, 2018.
http://sfp.ucdavis.edu/cooperatives/what_is/.

“What is a Cooperative”. Co-opLaw.Org: an e-resource library. Accessed February 9, 2018.

http://www.co-oplaw.org/co-op-basics/what-are-cooperatives/.

Answers to Check Your Understanding

Lesson 1: Non- State Institutions: Banks and Corporations
Part A.
1. non- state institutions
2. bank
3. financial intermediation
4. business corporation
5. retail bank

Lesson 2: Non- State Institutions: Cooperatives and Trade Unions

Part A
1. cooperative
2. trade union/ labor union
3. collective bargaining
4. credit cooperative
5. general union

Lesson 3: Non- State Institutions: Transnational Advocacy Groups

Part A
1. transnational advocacy groups
2. boomerang pattern of influence
3. information politics

50
4. symbolic politics
5. accountability politics

Lesson 4: Non- State Institutions: Development Agencies

Part A
1. development agency
2. Second World War
3. economic growth/ social progress
4. Organisation for Economic Co- Operation and Development
5. developing countries

Lesson 5: Non- State Institutions: International Organizations

Part A
1. international organization
2. international governmental organization/ intergovernmental organization
3. global governance
4. supranational organization
5. United Nations (UN)

Glossary
Accountability Politics – happens as transnational advocacy groups convince state actors to
change their position about certain issues, and persuades them further to act upon their
verbal support about certain issues
Agricultural Bank – a type of bank that caters to the financial needs of farmers and the
farming industry
Bank – a financial institution licensed to provide several financial services to its different types
of customers
Business Corporation – a corporation created to operate and generate profit
Boomerang Pattern of Influence – a characteristic of a transnational advocacy group that
occurs when conflict about certain issues (e.g. human rights, etc), between the state and its
members forces domestic advocacy groups to look for allies in the international arena, in

51
order to promote such issues and facilitate change regarding the government’s behavior
towards that issue
C- Corporation – a corporation whose income is taxed through the corporation itself; contrast
with S-corporation
Central Bank – the main financial institution in a country as it supervises the monetary
system in the country and regulates operations of other banks
Collective Bargaining – the process of negotiation between workers and employers, to arrive
at an agreement about terms and conditions of employment
Commercial Bank – a type of bank that focuses on businesses and businessmen as its main
customers
Consumer Cooperative – operates mainly to obtain and distribute products and
commodities to its customers, both members and non-members
Cooperative – “an autonomous association of persons united voluntarily to meet their
common economic, social, and cultural needs and aspirations, through a jointly owned and
democratically controlled enterprise” (International Labour Organization)
Corporation – an organization, created by a group of people known as shareholders, which is
legally recognized to act as a single person in carrying out certain goals and objectives
Craft Union – seeks to represent skilled workers doing the same work who may be employed
in different industries
Credit Cooperative – provides financial services to its members, including securing savings
and creating funds to be used for issuing loans
Development Agency – an organization, local or international, which is committed in
pursuing specific developmental agendas of a state
Financial Intermediation – process of taking in deposits from customers and lending them
to customers in need through loans
General Union – represents workers with a range of jobs and skills, from different industries
and companies
Global Governance– the regulation and coordination of states that are only backed by shared
goals and not by a formal and legal authority
Industrial Bank – a bank that provides medium and long-term loans and deposits to
business industries; also called an investment bank
Industrial Union – composed of workers from one particular industry, across different levels
of the hierarchy
Information Politics – the ability to produce and circulate accurate and credible ideas and
information to persuade people and motivate them to take action
Intergovernmental Organization – a type of international organization which do not have a
controlling power over its member states

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International Organization – a non-state institution formed by a formal agreement among
three or more state members, in order to facilitate cooperation among them and promote
their common interests.
Leverage Politics – enables transnational advocacy groups to use some form of leverage, to
tap and influence target actors that are powerful enough to institute policy changes
Multi- Purpose Cooperative – undertakes two or more functions of different cooperatives
Non- Profit Corporation – established with a purpose of serving the public rather than
pursuing profits
Non-State Institutions – groups and organizations which operate outside the support of any
state or government
Producer Cooperative – aids those in the sector of production, either agricultural or
industrial
Retail Bank – a type of bank that focuses on consumers or the general public as its
customers
S- Corporation – a corporation whose income is taxed through the its shareholders; contrast
with C- corporation
Service Cooperative – concentrates on helping workers in the service-oriented occupations
(i.e. health care, transportation, labor) by creating employment opportunities and other
benefits to its members
Supranational Organization – an international organization with sovereignty and controlling
power over its member states
Symbolic Politics – the ability of the group to interpret and use symbols or stories in such a
way that it would emphasize the issue at hand
Trade Union – non-state institution composed of workers as its members, which aim to
protect and improve workers’ interests in the workplace; also called labor unions
Transnational Advocacy Group – a network of actors who have an open relations within
each other, organized and united by their shared commitment to certain transnational issues.
White- Collar Union – composed of professionals doing similar jobs across different
industries

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