Department of Education

Region IX, Zamboanga Peninsula

Division of Zamboanga City
Tolosa National High School
Tolosa, Zamboanga City

Understanding Culture, Society and Politics

Name: __________________________________ Score: ______________

Grade & Section: ___________________ Date: ______________
Activity 2.2 ECONOMIC INSTITUITION

Reflection: Please answer the following question before accomplishing this activity.
Q: If you have been given something, is it expected for you to return the favor? Why or Why not?
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CONCEPT NOTES

“Economics and politics are each social institution’s, a major scope of social life, or societal
subsystem, organized to meet human need” (Macionis, 2006).

ECONOMIC INSTITUTIONS
Economy is a social institution that organizes the production, distribution and consumption of goods,
and services are the resources that individual, groups, organizations and nations need to survive
(Hughes & Kroehler, 2009)
Thus, economic institution is any establishment whose activities have bearing of society, whether
these institution’s are business or not. It also refers to a network of commercial organizations (such as
manufacturers, producers, wholesalers, retailers, and buyers) who generate, distribute, and purchase
goods and services).

HOW ARE ECONOMIC INSTITUTIONS FORMED?

Institutions are developed in two ways: either informally through repeated interactions between
individuals or organizations that establish expected norms of behavior; or else formally through
deliberate design. In the latter case, it might be an initiative from private enterprise or civil society.

DISTRIBUTION/ EXCHANGE OF GOODS

The movement of resources or goods from where they are found or produced to where they will be
used is referred to as distribution (Crapo, 2002). While transfer of goods between individuals or groups
is termed as exchange.

RECIPROCITY
In which two individuals or groups pass goods back and forth, with the aim of helping someone in
need by sharing goods with him or her; creating, maintaining, or strengthening social relationships;
obtaining goods for oneself.
Reciprocity refers to the giving and taking objects without the use of money or other media of
exchange. Equally defines reciprocity as the system of exchange in which goods or services
passed from one individual or group to another as a gift without the need for explicit contracting
for specific payments.

a. General Reciprocity
where there is no expectation of immediate exchange for the given gifts. People are
motivated by the sense of obligations towards the welfare of the others like when parents of a
simple family provide goods and services to the children even though children may not
reciprocate in kind.

b. Balance Reciprocity
between persons who lack a sense of kinship or obligation to help one another with no
expectation of return, but who each have something that the other would like to have,
balanced reciprocity is likely to occur, in which a return gift is expected within the relatively
short time.
 c. Negative Reciprocity
when an individual or group in reciprocal exchange system attempts to get more that what it
gives. Negative Reciprocity may take exchange through deceit in bargaining or outright theft
because the profit motive precedes over generosity.

TASK 1: Give at least one real-life scenario for the following types of reciprocity.

General Reciprocity Balance Reciprocity Negative Reciprocity

REDISTRIBUTION
In which members of an organized group contribute goods or money into a common pol of fund;
a central authority usually has the privilege and responsibility to make decisions about the goods
or money later will be reallocated among the group as a whole.
In which good are sold for money, which in turn is used to purchase other goods, with the ultimate
goal of acquiring more money and accumulating more goods.

TASK 2: Picture Analysis

Q: What does the picture above suggest? How is it related to redistribution?

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MARKET TRANSACTIONS
Considered as the major economic fore in the industrialized societies of the world, market is a
place where direct exchanges of commodities occur, It also refers to a group of buyers and sellers
of a particular commodity.

Q: How does a market transaction happen in our society, specifically in Zamboanga City? (Cite an
example)

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Q: What would happen if there will be no market transactions in a society?

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 Department of Education
Region IX, Zamboanga Peninsula
Division of Zamboanga City
Tolosa National High School
Tolosa, Zamboanga City

Understanding Culture, Society and Politics

Name: __________________________________ Score: ______________

Grade & Section: ___________________ Date: ______________
Activity 2.3 NONSTATE INSTITUTIONS

CONCEPT NOTES

NONSTATE INSTITUTIONS
These 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 for their progress.

There are different non-state institutions that operate in society.

1. BANKS AND CORPORATIONS

Banks and corporations are two of the important economic institutions. The establishment authorized
by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary
in financial transactions and provide other financial services to its customers are called banks.

Corporations as an organization with legal existence including rights and liabilities, apart from those
of its members. The modern economy is said to be dominated by large corporations which provide
them extensive power.

2. COOPERATIVE AND TRADE UNIONS

The Cooperative Development Authority (CDA), the lead government agency mandated by virtue
of Republic Act no. 9520 (Philippine Cooperatives, defines cooperatives as an autonomous and duly
registered association of persons, with a common bond of interest, who have voluntarily joined
together to achieve their social, economic, and cultural needs.

a. Credit Cooperative
promotes and undertakes savings and lending services among its members. It generates a
common pool of funds in order to provide financial assistance and other related financial
services to its members for productive and provident purposes.

b. Consumer Cooperative
aims to procure and distribute commodities to member and non-member.

c. Producer Cooperative
- undertakes joint production whether agricultural of industrial. It is formed and operated by its
members to undertake the production and processing of raw material or goods produce by its
members into finished or processed products for sale by the cooperative to it members and
non-member.

d. Marketing Cooperative
engages in the supply of production inputs to members and market their products.

e. Service Cooperative
engages in medical and dental care, hospitalization, transportation, insurance, housing, labor,
electric light and power, communication, professional and other services;

f. Multi-Purposes Cooperative
combines two or more of the business activities of these different types of cooperative;
 g. Advocacy Cooperative
is a primary cooperative which promotes and advocated cooperativism among its members
and the public through socially-oriented projects, education and training, research and
communication, and other similar activities to reach out to its intended beneficiaries;

h. Agrarian reform cooperative

- is organized by marginal farmers majority of which are agrarian reform beneficiaries for the
purpose of developing an appropriate systems of land tenure land development, land
consolidation or land management in areas covered by agrarian reform;

i. Cooperative Bank
is one organized by the primary purpose of providing a wide range of financial services to
cooperatives and their members;

j. Education Cooperative
is an organized for the primary purpose of owning and operating licensed educational
institutions, notwithstanding the provisions of Republic Act No. 9155, otherwise known as the
Governance of Basic Education Act of 2001

TASK 1: Give at least one example of each of the types of cooperative. (Preferably those that can be
found in our community)

COOPERATIVE Examples:
a. Credit Cooperative
b. Consumer Cooperative
c. Producer Cooperative
d. Marketing Cooperative
e. Service Cooperative
f. Multi-Purposes Cooperative
g. Advocacy Cooperative
h. Agrarian reform cooperative
i. Cooperative Bank
j. Education Cooperative

TRADE UNION
Similar with the function of cooperatives, trade union, a combinations or association of men
employed in the same trade, (usually a manual or mechanical trade), are united for the purpose of
regulating the customs and standards of their trade, fixing prices or hours of labors.

TRANSNATIONAL ADVOCACY GROUPS

The transnational advocacy group (or networks) has begun its growing importance not only in
particular countries but as well in international politics.

1. Medicins Sans Frontieres (Doctors Without Borders) organizes international teams of doctors to
provides medical help in areas struck by disaster or war.
2. Greenpeace organize activities across the globe to lobby for stronger policies to protect the
environment.
3. Human Rights Watch monitors human rights abuses around the worlds and publicize in order to
put pressure on the governments.

DEVELOPMENT AGENCIES
Economic Development Agencies can be defined as independent organizations, shaped by the
public and private institutions, with the aim of implementing strategies of shared territorial
development, with particular emphasis on favoring access for the most marginal portions of a
population to opportunity of income and decent employment. (ILO,2003)
 1. Economic Roles
where Development Agencies seek to build markets within their territories. These roles include the
Development Agency acting in a risk and cost sharing manner using entrepreneurial
approaches.

2. Leadership Roles
where the development Agency plays a key role in fostering a long term plan and vision for the
territory, galvanizing the interests of multiple leaders and setting out a new future around which
resources can unite.

3. Governance and co-ordination roles

where the development agency helps to facilitate practical co-ordination towards the pursuit of
the development strategy, helping to overcome the limitations of fragmented multiple
jurisdictions and responsibilities in the public sector, and providing a means for practical
engagement with the private and civic sectors.

4. Implementation roles
where the Development agency can assemble dedicated \and capable teams to focus solely
on pursuing the development strategy. This will involve complex project management and
finance skills business/investor facing services and the ability to design and use new tools quickly.

INTERNATIONAL ORGANIZATIONS
Because of Information technologies, international organizations are expected to increase in number
and importance, their economic, cultural and environmental goals cannot just be contained in its
national borders which could unsurprisingly obtain the power and recognition that nations used to
enjoy.

International Organizations are organizations formed by governments to help them pursue

collaborative activity; a type of non-state actor.

Sociologists classify international organization into two principal types; international government
organizations (IGOs) which are composed of national governments and international non-
governmental organizations (INGO’s) that consist of private organizations.

TASK 2: Research at least one example of a Non-governmental organization (NGO) in the Philippines.
Describe what the chosen NGO does in the community.

Non-governmental Organization: _________________________