L4: NON-STATE INSTITUTIONS

NON-STATE INSTITUTIONS

1. ==Banks and Corporations==    * A bank is a financial institution that deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits and it lends money to those who need it.

Role of Banks - plays an important role as an intermediary, or go-between, in the financial system.

3 Main Functions of Banks

1. Banks are where people can safely deposit their savings, which banks then pay interest on. If there were no banks, people would have to store and protect their savings themselves, which would involve major risks.
2. Banks are largely responsible for the payment system. Electronic payments are becoming more important as people use less cash. This means that banks are processing more card payments, transfers, direct debits, etc. every day.
3. Banks issue loans to both people and companies. Without banks, it would be very hard for people to buy a home or start a business, or for companies to make investments, for example.

Corporation - a company or group of people authorized to act as a single entity and recognize as such in law. Early incorporated entities were established by charter. Most jurisdictions now allow the creation of new corporations through registration.

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2. ==Cooperatives and Trade Unions==

• Trade Union - an organization made up of members (a membership-based organization and its membership must be made up mainly of workers. One of a trade union’s main aims is to protect and advance the interest of its members in the workplace.
• For example. Trade Union Congress of the Philippines

2. ==Transnational Advocacy Groups==

• Advocated and advocacy groups represent a wide range of categories and support several issues listed on worldadvocacy.com. The Advocacy Institute, a US-based global organization, for example, is dedicated to strengthening the capacity of political, social, and economic justice advocates to influence and change public policy.
• For example. United Nations

2. ==Development Agencies==

• Economic Development Agencies - every state and many local governments have economic development agencies dedicated to assisting new and established businesses to start, grow, and succeed.

2. ==Non- Government Organizations (NGOs)==

• A non-government organization (NGO) is a not-for-profit organization that is independent of states and international government organizations. They are usually founded by donations but some avoid formal funding altogether and are run primarily by volunteers.

Roles of Non-Government Organization

1. Development and Operation of Infrastructure

• Community-based organizations (CBOs) and cooperatives can acquire, subdivide, and develop land, construct housing, provide infrastructure, and operate and maintain infrastructure such as wells or public toilets and solid waste collection services.

1. Supporting Innovation, Demonstration, and Pilot Projects

• NGOs have the advantage of selecting particular places for innovative projects and specifying in advance the length of time in which they’ll be supporting the project - overcoming some of the shortcomings that governments face in this respect.

1. Facilitating Communication

• NGOs interpersonal methods of communication, and study the right entry points whereby they gain the trust of the community they seek the benefit.

1. Technical Assistance and Training

• Training institutions and NGOs can develop technical assistance and training capacity and use them to assist both CBOs and governments

1. Research, Monitoring, and Evaluation

• Innovative activities need to be carefully documented and shared - effective participatory monitoring would permit the sharing of results with the people themselves as well as with the project staff.

1. Advocacy for and with the Poor

• In some cases, NGOs become spokespersons or ombudsmen for the poor and attempt to influence government policies and programs on their behalf. This may be done through a variety of means ranging from demonstration and pilot projects to participation in public forums and the formulation of government policy and plans, to publicizing research results and case studies of the poor.

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