Learning Guide #7 - Political and Economic Institutions Flashcards
is the study of resources, the kind, how they are produced, and used. It also determines how money is used in buying resources.
Economics
economy is a social institution that organizes the _____ of goods and services.
production, distribution, and consumption
refers to the system of production, distribution, and consumption of goods and services
economy
3 types of resources
natural resource
human resource
capital resource
is anything we get from nature that we can use, like water, trees, sunlight, or minerals.
natural resource
people who work for an organization and the department responsible for managing things like hiring, training, employee benefits, and workplace policies.
Human resource
is something made by people and used to produce goods or services. Examples include tools, machines, buildings, and equipment.
capital resource
Produce or make something
Production
2 types of production
Tangible
Intangible
Can be seen or touch (Product)
Tangible
Can’t be seen or touch (Service)
Intangible
Money is a very important part of the tradings and transactions of the modern world but it doesn’t always existed.
Bartering
The ones who buy and use resources
Consumers
Is any establishment who have bearing on society, whether this institution business or not.
is a system or organization that plays a key role in managing and shaping economic activities in a society. These institutions set the rules, norms, and practices that guide how people produce, trade, and distribute goods and services.
Economic institution
‘Institutions are ‘repetitive patterns of interaction through which society undertakes certain functions.’
King 1976
‘Essentially, institutions are durable systems of established and embedded social rules and conventions that structure social interactions’
(Hodgson 2001 p.295)
research program focuses on exploring how institutions and policies can promote economic growth that specifically benefits poor populations.The program investigates the role of institutional frameworks, governance, and policy interventions in creating equitable and sustainable economic development.
Institutions, Policies, and Pro-Poor Growth (IPPG)
Based on the IPPG paper, what are the three sets of functions that are performed by economic institutions?
- ESTABLISHING AND PROTECTING PROPERTY RIGHTS
- FACILITATING TRANSACTIONS
- PERMITTING ECONOMIC CO-OPERATION AND ORGANIZATION
What are the two ways on how economic institutions formed?
Informal and formal
is through repeated interaction between individual or organization
refers to rules, systems, or practices that guide economic activities but are not officially recognized or regulated by the government. These institutions often operate based on traditions, social norms, or personal agreements rather than formal laws.
informal
is through deliberate design.
refers to organizations, rules, or systems that are officially recognized, regulated, and enforced by laws or governments. These institutions operate within a structured framework and follow legal guidelines to conduct economic activities.
formal
movement of resources from where they are found or produced
refers to how resources, wealth, goods, and services are shared among people in a society.
Distribution
transfer of goods between individuals or groups.
is the process of giving something you have, like money, goods, or services, to get something you need or want in return. It’s how people trade to satisfy their needs and wants.
Exchange
What are the three system of distribution?
Reciprocity
Redistribution
Market Transactions
the system of exchange in which goods or services passed from one individual or group to another as gifts without the need for explicit contracting for a specific payment.
in simple terms means “give and take” or “you help me, and I’ll help you.” It’s when people do something for each other with the expectation that the favor will be returned, either directly or indirectly.
Reciprocity
Who equally defines reciprocity as the system of exchange in which goods or services passed from one individual or group to another as gifts without the need for explicit contracting for a specific payment
Crapo (1997
3 types of reciprocity
Generalized
Balanced
Negative
who proposed the 3 types of reciprocity
Marshall Sahlins
no expectation of immediate exchange for the given gifts, it is by the sense of obligation
generalized reciprocity
return gift is expected within a relatively short time, to maintain good relations
Balance reciprocity
it is for personal gain
Negative reciprocity
An exchange system wherein commodities are contributed by all members of a social group to a common pool from which they are often distributed to where they will be used.
is the process of taking resources, like money or goods, from one group of people and giving them to others, usually to help reduce inequality.
Redistribution
is a place where direct exchanges of commodities occur. It also refers to a group of buyers (groups that determines the demand of the product) and sellers (a group which determines the supply of the product) of a particular commodity (Liwanag et al, 2014)
is a place where direct exchanges of commodities occur. It also refers to a group of buyers (groups that determines the demand of the product) and sellers (a group which determines the supply of the product) of a particular commodity (Liwanag et al, 2014)
Market
Market exchange requires
(1) some object used as the medium of exchange
(2) a rate at which goods exchange for money, i.e. price
(3) parties to exchange who have alternative buyers or sellers and are free to make the best deal they can, i.e. prices determine by supply and demand.
may occur freely in any society but in a most developed society where large numbers of people are involved, marketplaces are found convenient to carry out the exchange.
may involve goods, services, information, currency, or any combination of these that pass from one party to another.
is when goods or services are bought and sold in exchange for money or something else of value.
Market the transaction
Peoples and Bailey state the requirements to perform a market exchange, what are those?
Some of the object used as a medium exchange
A rate of goods exchange for money
Parties exchange who have alternative buyer or seller and free to make the best deal for them
is a political organization that possesses sovereign jurisdiction within define territory and exercises its power through a set of a permanent institution.
State
are social institutions that are constructed in culturally specific ways
Market
The state is the institution whose functions are carried out by the government. Its primary functions are maintenance of peace and order and the regulation and control of the lives of the people as well as addressing the needs of the citizenry to a certain degree of social order
(Panopio, 1994).
are common to democratic states which recognize the participation of the public in the political process that directly affect the citizen’s lives.
broadly defined as international actors who are largely or completely autonomous from the state, emanating from civil society, market economy or political opportunities.
NON STATE INSTITUTIONS
Non state institutions are also known as
non-state actors
Types of Non-State institutions
Banks and Corporations
is a financial institution licensed to provide several financial services to different types of customers. _____ are in operation mainly for their deposit and lending function.
Bank
Customers are allowed to deposit their money to banks which grow through an ____
interest rate
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.
Corporation
A corporation is an organization, created by a group of people known as
Shareholders
As a ‘____’, 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, hire employees, and to loan and borrow money. It is also authorized to have its own assets.
legal person
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”
cooperative
According to the _____, a cooperative is “an autonomous association of persons united voluntarily to meet their common _____, through a jointly-owned and democratically-controlled enterprise”
International Labor Organization (ILO)
economic, social, and cultural needs and aspirations
Who said Cooperatives are people-centered enterprises owned, controlled, and run by and for their members to realize their common economic, social, and cultural needs and aspirations
Guy Ryder, ILO Director-General, International Day of Cooperatives 2015
DIFFERENT TYPES OF COOPERATIVES
1 Credit cooperative
2 Consumer Cooperative
3 Producers’ cooperative-
4 Marketing cooperative
5 Service cooperative
6 Multi-purpose cooperative-
7 Advocacy Cooperative
8 Agrarian reform cooperative-
9 Cooperative bank
10 Education cooperative
promotes and undertakes savings and lending services among its members. The financial co-ops were initially based on consumer co-ops offering financial services to their members.
Credit cooperative
aims to procure and distribute commodities to members and non-members. This is one of the best-known forms of cooperatives. They are owned and controlled by the people that buy the products and services sold, managed, or distributed by the co-ops.
Consumer cooperative
were one of the first kinds of Cooperatives developed to explore and provide solutions to the farmers’ production in the early 1880s. members provide the co-op with the same production that the co-op markets in a processed or value-added form. Undertakes joint production whether agricultural or industrial.
Producers’ cooperative-
engages in the supply of production inputs to members and markets their products.
Marketing cooperative
engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional and other services.
Service cooperative
combines two or more of the business activities of these different types of cooperatives.
Multi-purpose cooperative
is a primary cooperative that promotes and advocates cooperativism.
Advocacy Cooperative
is organized by marginal farmers. Covered by agrarian reform.
Agrarian reform cooperative
is one organized for the primary purpose of providing a wide range of financial services.
Cooperative bank
is organized for the primary purpose of owning and operating licensed educational institutions
Education cooperative
They are free-flowing and free relationship among knowledgeable and committed actors that aim to pursue some political, social or cultural goals.
TRANSNATIONAL ADVOCACY GROUPS
Below are examples of transnational advocacy networks. (D’Anieri, 2012):
Medicins Sans Frontiers (Doctors Without Borders)
Greenpeace
group of doctors that helps in providing medical support to areas that struck by disaster or wars.
Medicins Sans Frontiers (Doctors Without Borders)
organizes activist across the globe to lobby governments for stronger policies to protect the environment.
Greenpeace
are independent organizations shaped by public and private institutions with aim of implementing strategies of shared territorial development, with particular emphasis on favoring access to the most marginal potions of a population to opportunities of income and decent employment. (ILO, 2003)
Development agencies
Different elements of the Development Agency the activity identified by the Organization of Economic Cooperation and Development (OECD)
Economic roles
Leadership Roles
Governance and co-ordination roles
Implementation roles
where Development Agencies seek to build markets within their territories. These roles include the Development Agency acting in risk and cost-sharing manner using entrepreneurial approaches.
Economic 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 coalesce.
Leadership roles
where the Development Agency helps to facilitate Practical co-ordination towards the pursuit of the development strategy.
Governance and co-ordination roles
where the Development Agency can assemble dedicated and capable Teams to focus solely on pursuing the development strategy.
Implementation roles
which are institutions that set rules for nations and provide venues for diplomacy.
International Organizations
There are two types of international organizations
International Governmental Organizations (IGOs)
International Nongovernmental Organizations (INGOs or, more commonly, NGOs)
