CSP 02 Lesson 10: Economic Institutioms

Economy

Refers to the system which facilities the movement of goods and services from the production stage to distribution, and finally, to consumption.

Goods

Refer to all commodities such as food and clothing to luxury items as cars and jewelry.

Services

Refer to actions or activities done for an individual or a group.

The necessity to pay attention to the economy boils down to the basic principle that resources are

scarce. Be it the crops that provide us with food, the number of employees in a company, or the money we possess, resources need to be managed

Why do we need to study the economy?

Reciprocity

Generally refers to the value of giving an object, gift, or service in turn for something you received. From the perspective of attaining social gain, __________ is an obligation cultivating a culture of giving, receiving, and repaying gifts.

Generalized Reciprocity

Is giving without immediately expecting the corresponding return.

Balanced Reciprocity

Is giving while expecting an immediate return in the exchange.

Negative reciprocity

Happens when one of the parties tries to gain more of the exchange, thereby taking advantage of the other party.

The Potlatch and the Kula Ring

are exchange systems or traditions practiced by two different peoples. These cases seek to draw a picture of what happens during exchanges in non-market economies.

The potlatch

Chinook term which means

(Chinook term meaning "to give away") is a gift-giving ceremony practiced by the indigenous peoples in the Northwest Pacific Coast.

The Kula

(is a ceremonial exchange system practiced by the Trobriand islanders who move from one island to another in a clockwise or counterclockwise direction (hence forming the ring) depending on what they will trade for

Hunting and gathering

___________ in the earliest societies serve as the precursor of thel economic system. Until 11,000 or 12,000 years ago, humans foraged for food by hunting or fishing and gathering vegetation.

Agricultural economy

From hunting and gathering, the discovery and eventual reliance on ___________ drastically changed the people's means of survival and, by extent, their lifestyle. By knowing how to till the land, to store harvested crops, and to raise animals, people also learned to manage these resources.

Industrial Revolution

The second half of the 18th century until the early 19th century witnessed the industrial revolution marked by technological advancements that led to the rise of factories and _______ complexes. The ________ led to the centralization of labor with people from different towns and rural areas flocking to the cities to work in factories. One of the significant inventions in this era was the steam engine created by James Watt in 1765

Information Age/Post-Industrial Society

By the 20th century, another technological milestone was underway with the introduction of machine automation. As machines began to expand their capabilities in factories, the dependency on human labor dwindled in the manufacturing sector. This led to the emergence of the service and digital industries where the nature of work revolved around clerical or administrative tasks, field-specific professions, and management.

Fourth industrial revolution

In 2016, World Economic Forum founder and executive chairman Klaus Schwab declared that we are now entering the fourth industrial revolution - an economic stage integrating the physical, digital, and biological spheres. Springing from the information age, people now possess mobile phones, laptops, and other gadgets with immense computing power capable of processing information and connecting them with anyone in the world at very fast rates

Economic System

Is defined as the mechanism set by the state in allocating resources and in producing and distributing goods and services to the population.

Capitalism

The main trust of the capitalist system lies on the private ownership of the means of production (raw materials, tools, and machinery) which are considered as sources of wealth

Socialism

Is the opposite of the capitalist system wherein the means of production are instead collectively owned by the state.

Mixed Economy

Are those classified in between the capitalist and socialist economic systems. Most states are classified as mixed economies but there are two particular models implemented in Europe, Latin America, Asia: Welfare state and state capitalism

Welfare State

In Europe such as Germany, France, Belgium, Netherlands, and the Nordic countries generally implement a market-based economy with several state-initiated, socialized programs such as healthcare and education.

6.2 and 6.7

According to the 2018 Philippine Statistics Authority economic report, the economy grew by ___ in 2018 which was a few percentage points slower than the reported ____% GDP growth in 2017.

Non-state institution

Apart from the government, other institutions come into play in making the state economy work. These non-state institutions can come in different forms and perform different functions which affect the economy or policymaking of the state. This section provides a background on five non-state institutions and how they affect the economy and the state.

Banks

are financial institutions that have two main functions. First, banks collect cash deposits from customers in exchange for financial services.

Corporations

Are non-state institutions established by individuals or groups (called "shareholders") to conduct business activities.

Cooperatives

Are defined by the international Labor organizations (ILO) as "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".

Trades or labor union

Are defined by the ILO as "as a workers" organization constituted for the purpose of furthering and defending the interests of workers.

Transactional advocacy groups

Refer to a network of groups from different countries together on calling for solutions to social, political, and economic issues such as labor rights, indigenous peoples rights, right of women and children, and environmental conversation, among others.

International organizations

Are independent bodies that provide venue for democratic discussion of different states on certain issues

Development Agencies

Are established in order to assist in the recovery of different states from damages brought by natural

calamities or war.