Forms and
Functions of Non-
State Institutions
MELC 7: Explain the forms and functions of state and
non-state institutions.
Presented by: Ms. Charisma T. Gredoña
At the end of this lesson, you are
expected to:
Identify non-state institutions.
Explain the forms and functions of non-state institutions.
Appraise the role of non-state institutions in our social life.
Logo identifier.
Non- State Institutions
- refers to institutions that are organized by private individuals or
groups for the purpose of providing services to the members of
society. These institutions are not controlled by the government but
are regulated through laws and statutes of the state.
- non-governmental organizations operating to satisfy many of our short-
term and long-term, small-scale and large-scale, and tangible and
intangible demands
- Non-state institutions include the following: banks, corporations, trade
unions, cooperatives, development agencies, civil organizations, and
transnational advocacy groups.
BANKS
regulate finances and the flow of
money
help us keep our money, avail
different kinds of loan, and
exchange currencies.
The accumulated money of the bank
is invested to some projects to gain
profit; this is how banks pay their
workers and depositors’ interest
depending on the agreed terms.
help the country by providing
financial assistance to those
entrepreneurs who wanted to
create or expand their business
Banking Institutions
The Bangko Sentral ng Pilipinas is
known as the banks of all banks in the
Philippines. It is the bank responsible
for the regulation, creation, and
management of monetary supply in the
country.
Types of Banks
Commercial banks
accept savings
deposits, check
deposits, and time
deposits.
Types of Banks
Thrift banks are categorized into stock savings and
loan associations, savings and mortgage banks, and
private development banks.
They consolidate the savings deposits of their
members into a fund from which their members can draw
loans with interest.
They also accept deposits from the public and provide
loans for small- and medium-scale enterprises.
Types of Banks
Rural banks cater
primarily to farmers
and small business
people, mostly in
rural areas.
CORPORATIONS
Groups of people, merchants, or traders who
are poling their resources and establishing
businesses to provide services and
employment.
owned by a group of people but has a separate
legal identity (the owners of a corporation are
not responsible for its own debts).
Corporations offer stocks (determines level of
ownership), as well as bonds (allows one to
earn interest).
Since a corporation is associated with various
industries, it needs a huge work force to run
and operate. This provides job opportunities to
number of workers in the country and thus
lessen the problem of poverty.
COOPERATIVES
are made up of people with
common interest who agreed to
work together for easy, safe, and
affordable access to commodities,
loans, and other services.
They are created to help and
empower one another with a
minimum help from the government
Farmers’ cooperatives and
teachers’ cooperatives are common
examples.
Types of Cooperatives
Credit cooperative Promotes thriftiness among its affiliates, and creates funds to
grant loans for productive endeavour of members
Consumer cooperative Procures and distributes commodities to members and non-
members
Producer cooperative Undertakes joint agricultural or industrial production
Marketing cooperative Participates in the supply of production inputs to constituents,
and markets their products
Service cooperative Engages in medical and dental care, hospitalization,
transportation, insurance, housing, labor, electric lights and power,
communication, and other services
TRADE UNIONS
Organizations established by the
working class to protect and
advance the rights of laborers or
workers
Trade unions are created to
protect the labor force of the
country. Workers are essential to
the creation of goods and services
for the citizenry.
In the Philippines, the Trade
Union Congress of the Philippines
has the largest membership.
TRANSNATIONAL
ADVOCACY GROUPS
provide help and support to
countries that are experiencing
problems related to their
advocacy and goals.
A group maybe a national or an
international organization that
promotes and advocates progress
and development related to
particular issues of the society.
DEVELOPMENT
AGENCIES
promote progress by engaging in
projects, policymaking, and dialogue
Those providing financial assistance
include the Asian Development Bank
(ADB).
Independent institutions that assist
countries in achieving their goals
toward development.
Provide financial aid to different
sectors (education, agriculture,
infrastructure development) in
exchange for future payments or
agreements.
CIVIL
ORGANIZATIONS
include academic institutions,
research teams, mass media,
religious organizations, and
people’s organizations.
Are created to expose the
conditions of the marginalized
sector of the society by using
mass media as its platform as
they raise critical issues to the
government.
INTERNATIONAL
ORGANIZATIONS
non-state institutions
that operate in different
countries.
It has branches in almost
all countries in the
world.
ACTIVITY
Activity 2: Situational Analysis
Imagine a construction worker earning minimum
wage with no additional benefits from the employer,
no security of tenure from his work, and can be
terminated any time of the day?
Process Questions:
1. What can cooperatives and trade unions do to improve his
condition?
2. If you were the employer, how would you adjust your job
policies in order to suit the needs of the employee?
Real-life Applications
What do you think will
happen if we do not have
non-state institutions?
Generalization
How do non-state
institutions help the
government in performing
its functions?
Quiz
Similarities and differences of State and Non-State
Institutions
STATE NON-STATE
INSTITUTION INSTITUTION
Performance Task
#1 - Brochure
Choose one (1) STATE and (1) NON-
STATE institution and create a three-
fold brochure to promote it.
You may use MS Publisher/Canva for
this activity.
Submission: May 12,2023 ,Friday.
Process Questions:
1. Can you identify the different types of non-state
institutions?
2. Who owned these institutions?
3. Does the government have power/control over
these institutions?
