USCP 5.2 (2 to 4 Political and leadership structure/ Economic Institutions/Nonstate institutions)

2. Political and leadership structure
a. Political organization
i. Bands
ii. Tribes
iii. Chiefdoms
iv. States and nations
b. Authority and legitimacy 
i. Traditional
ii. Charismatic
iii. Rational
reference: https://opinion.inquirer.net/85293/max-webers-3-types-of-authority

3. Economic Institutions
a. Reciprocity
b. Transfers
c. Redistribution
d. Market transactions
e. Markets and state

4. Nonstate institutions
a. Banks and corporations
b. Cooperatives and trade unions
c. Transnational advocacy groups
d. Development agencies
e. International organizations
https://www.slideshare.net/dan_maribao/dannymaribaolesson-9economicinstitutions

------------------------------------------------------------------------------------------------------------------------------
Political organization involves issues like allocation of political roles, levels of political integration, concentrations of power and authority, mechanisms of social control and resolving conflicts.

Types of Political Organizations

Band It is usually a very small, oftentimes nomadic (wandering) group that is connected by family ties and is politically independent.

Tribe It is a combination of smaller kin or non-kin groups, linked by a common culture, that usually acts like one.

Chiefdom A political unit headed by a chief, who holds power over more than one community group.

State community of persons more or less numerous, permanently occupying a definite portion of territory, having a government of their own to which the great body of inhabitants render obedience, and enjoying freedom from external control.

Nation is a group of people bound together by certain characteristics such as common social origin, language, customs, and traditions, and who believe that they are one and distinct from others.

What is the difference between State and Nation?

NATION	STATE
Ethnic concept	Political Concept
May or may not be controlled by external control (foreign countries)	Cannot be controlled by other countries
One race or origin	Consists of different races

Authority refers to accepted power—that is, the power that people agree to follow. People listen to authority figures because they feel that these individuals are worthy of respect. Generally speaking, people perceive the objectives and demands of an authority figure as reasonable and beneficial, or true.

The sociologist and philosopher Max Weber distinguishes three types of authority—charismatic, traditional and legal-rational—each of which corresponds to a brand of leadership that is operative in contemporary society

Charismatic authority points to an individual who possesses certain traits that make a leader extraordinary. This type of leader is not only capable of but actually possesses the superior power of charisma to rally diverse and conflict-prone people behind him. His power comes from the massive trust and almost unbreakable faith people put in him.

Traditional authority indicates the presence of a dominant personality. This leader is someone who depends on established tradition or order. While this leader is also a dominant personality, the prevailing order in society gives him the mandate to rule. This type of leadership, however, is reflective of everyday routine and conduct.

Legal-rational authority is one that is grounded in clearly defined laws. The obedience of people is not based on the capacity of any leader but on the legitimacy and competence that procedures and laws bestow upon persons in authority. Contemporary society depends on this type of rationalization, as the complexities of its problems require the emergence of a bureaucracy that embodies order and systematization.

All three forms exhibit a specific weakness or problem.

First, charismatic leadership can be problematic because it is somehow based on some form of a messianic promise of overhauling an unjust system. It is not impossible, however, to find such type of a leader, as history would show. Consider Mahatma Gandhi, Martin Luther King Jr., or Nelson Mandela. A charismatic leader holds the mission to unite his people amid adversity and differences in order to attain an almost insurmountable goal.

Second, traditional authority poses its particular difficulty insofar as it is based on some kind of dominant power. For Weber, all authority exhibits some form of domination. A traditional leader may rely on or even exploit prevailing practices. Traditional authority may suffer from a lack of moral regularity in the creation of legal standards.

Third, legal-rational authority makes manifest the power of the bureaucracy over the individual. In the exercise of authority, the administration of power, laws, and rules, including institutional duties and protocols, have control over individuals. While order and systematization are desirable, the bureaucracy may not be able to fully address the problems and concerns of everyone, as what the development of nation-states today suggests.

-------------------------------------------------------------------------------------------------------------------

Economic Institutions • A company or an organization that deals with money or with managing the distribution of money, goods, and services in an economy.

• Examples are banks, government organizations, and investment funds

Reciprocity • In social psychology, reciprocity is a social rule that says people should repay, in kind, what another person has provided for them; that is, people give back (reciprocate) the kind of treatment they have received from another. 

• By virtue of the rule of reciprocity, people are obligated to repay favors, gifts, invitations, etc. in the future.

Transfer 

1. Banking: Moving funds among two or more accounts held by the same or different entities. 

2. Real estate: Conveyance of title to a property from the seller to the buyer through a deed of transfer, following payment of the price.

3. Securities trading: Delivery of a stock (share) certificate by the seller's broker to the buyer's broker followed by conveyance of the title by recording the change in the stock (share) register.

Redistribution • In Economics the theory, policy, or practice of lessening or reducing inequalities in income for example through such measures like progressive taxation and anti-poverty programs.

Market Transactions • The exchange of goods and services through a market. The set of market transactions taking place in the economy is most important in terms of measuring gross domestic product (GDP).

Market transactions provide the basic data used at the Bureau of Economic Analysis to begin the estimation of GDP.

However, these data don't just want to measure market transactions, their goal is to measure economic production. • As such, they eliminate some market transactions that do not involve economic production, then add economic production that does not involve market transactions.

State-market relations • call for a holistic view of the relationship between the material and relational dynamics of society, on the one hand, and between these dynamics and institutional dynamics on the other.

the state contains mechanisms that are essential to the existence of markets themselves, and these mechanisms are not “natural” given. 

Economies are actually institutional production systems wherein the material density of the state both as organization and administration are of relevance.

Non-state Institutions • These are institutions that are not controlled by the government or by the State. • Examples are banks, corporations, private institutions

Trade Unions • It refers to a voluntary association of either employees or employer or independent workers to protect their interest and becomes an instrument of defense against exploitation and maltreatment.

Cooperatives • Firm owned, controlled, and operated by a group of users for their own benefit. • Each member contributes equity capital, and shares in the control of the firm on the basis of one-member, one-vote principle (and not in proportion to his or her equity contribution).

Transnational Advocacy Groups • They are free flowing and open relationships among knowledgeable and committed actors (individuals and organizations). international organizations such as the UN, and actors from the corporate/business world.

These networks are united by a commitment to some practical, usually "trans-sovereign" issue (an issue that transcends across multiple countries) • ex: women's representation, environmental sustainability, human rights, etc.

Development Agencies • These are local or international groups committed to pursuing specific developmental agendas of the state

Examples of Development agencies • African Development Bank (AfDB) • Development Bank of Latin America (CAF) • Asian Development Bank (ADB) • Caribbean Development Bank (CDB) • European Bank for Reconstruction and Development (EBRD • Inter-American Development Bank (IADB) • International Bank for Reconstruction and Development (IBRD; part of the World Bank Group)

International Organizations • These are groups that promote voluntary cooperation among its members.