ECONOMIC AND NON STATE ORG

• Nonmarket Institutions


  • Reciprocity
  • Transfer
  • Redistribution
• Reciprocity


  Exists when there is an exchange of goods or labor between individuals in a community. This would include direct barter or simultaneous exchange of goods, or gift exchange where the return for goods given or labor rendered is delayed.
• Transfer


  Entails a redistribution of income that is not matched by actual exchange of goods and services. Examples: Donations and Financial Assistance.
• Redistribution


  Can be considered as combination of the features of transfer and reciprocity, where the economic exchange involves the collection of goods from members, the pooling of these goods, and then the redistribution of these good among the same members.
• Market Institutions


  • Market System
  • Invisible Hand
  • Market and Prices
  • Specialization
  • Barter
  • Money
• Market System


  Is a type of economic system that allows the free flow of goods between and among private individuals and firms with very limited participation from the government. Private individuals and firms own most of the factors of production like land and capital.
• Invisible Hand


  Integrates both the idea of self-interest and competition in the market place, which brings about a socially optimum result even in the absence of government intervention. The desire to maximize gains, both by the buyers and the sellers, leads them to actions that will bring about this goal.
• Market


  Is a mechanism and not necessarily a place which brings buyers and sellers together for a desired transaction.
• Prices


  Serve as signaling device to indicate the value of a good or service to both the buyers and the sellers and guide their actions on whether they should buy or not or supply more or less.
• Specialization


  Contributes to efficiency by taking advantage of the differences in each and every person's abilities. Saves time by allowing individuals to concentrate all their mental and physical faculties on a single task.
• Barter


  The swapping of goods for goods. The traditional means of exchange.
• Money


  Becomes a very convenient means of standardizing values pegged on goods and services.
• State-Market Relationships


  • Labor
  • Wages
  • Monetary Policy
  • Fiscal Policy
  • Command/Socialist Economy
  • Taxes
• Labor


  Labor is also considered a commodity. The sellers of the service are the workers, while the consumers are the factories and the producers. Is termed as producers good, since it is an input to the production of goods and services.
• Wages


  Money that is paid or received for work or services, as by the hour, day, or week. Workers Earn. Minimum wages sets by the government protects the workers from being paid low wages by their employers.
• Monetary Policy


  Keynesian Theory advocated for a reduction in interest rates so to encourage investors to borrow money and invest in business to spur production. Investment in business could also mean more employment opportunities that can spur consumer spending.
• Fiscal Policy


  Governments are encouraged to increase their public spending on infrastructures to further spur economic activity.
• Command/Socialist Economy


  Government takes over the functions of the market in producing and distributing essential goods and services.
• Taxes


  Are compulsory to government coffers, normally levied on the worker's income, business profits, and consumption of goods and services, in order to raise revenues for government spending.
• Organization and Institution


  • Organization
  • Institution
  • State Organizations
  • Nonstate Organization
• Organization


  Refers to a formally constituted entity, composed of individuals performing a set of functions for the achievement of a certain mandate, obligation, or task. Examples: Banks, Corporations, Development Agency
• Institution


  Refers to a structured domain of norms, rules, and practices that gives a sense of order to a specific set of relationship. Examples: Religion, Kinship and Family, Friendship
• State Organizations


  • Executive Branch
  • Legislative Branch
  • Judiciary
  • Armed forces and the Police
  • Constitutional Commissions
  • COA, CSC, COMELEC
  • Local Governments
• Nonstate Organization


  • Market/Economic Organizations
  • Civil Society Organizations
• Nonstate actors are organized political actors not directly connected to any established institutions or the state but pursuing aims that affect vital state interests.
• Market and Economic Organizations

  • Bank
  • Types of Banks
  • Corporation
  • Cooperative
• Bank


  Is a financial institutional that lends money both to public as well as private organizations. Government borrows money from banks to finance its development activities, while private companies and individuals borrow money to fund their investments or personal development.
• Types of Banks


  • Savings Banks
  • Commercial Banks
  • Industrial Development Banks
  • Land Development Banks
  • Federal / National Banks
  • Cooperative Banks
  • Exchange Banks
  • Private Banks
  • Internet Banks
  • Investment Banks
  • Merchant Banks
  • Universal Banks
  • Islamic Banks
• Corporation


  Refers to broad category of nonstate organizations representing a company or group of people that engages in a lawful activity in relation to a public function, such as the provision of a good or service to the larger society.
• Cooperative


  Refers to an autonomous association whose membership is voluntary toward the attainment of common economic, social and cultural needs or aspirations. It is owned by its members, and democratically operated.