UNDERSTANDING CULTURE,

SOCIETY AND POLITICS

Shanelle Trisha F. Olitoquit
 Learning Competency

Analyse economic organization and its

impacts on the lives of people in the society
traces kinship ties and social networks
(UCSP11/12HSOIIa-24)
4 PIC 1 WORD
Economic institutions

are those that are involved in the

production and distribution of the
goods and services that members of
a society need.
Goods are commodities ranging
from necessities to luxury items
Services are activities that benefits
others
 RECIPROCITY
refers to the voluntary giving or taking of objects without
the use of money in the hopes that, in the future, they
could be given back.
Reciprocity could take the form of barter, hospitality,
gift-giving, and sharing.
A good example of reciprocity is the Filipino culture of
utang na loob. This is an act of kindness or favor that is
expected to be given in return.
In our country, utang na loob is not mandated by any
law or legal document. It is, however, part of our
unique culture and identity as Filipinos.
 3 Forms of Reciprocity
1.GENERALIZED RECIPROCITY
the exchange of goods and services without a
definite time frame of when the favor should be
returned. In this form of reciprocity, individuals
giving out the favors do not expect to receive
anything back.
A good example of this is your relationship with
your family and closest friends.
 3 Forms of Reciprocity
2. BALANCED RECIPROCITY
exchange occurs between groups or individuals with the
donor expecting to receive something of equal or similar
value.
There is pressure to give back the favors at a specific point
in time. Unlike generalized reciprocity, balanced
reciprocity demands timely reciprocation that when
favors are not received by the donor, they could refuse to
continue giving out the favors.
 3 Forms of Reciprocity
3. NEGATIVE RECIPROCITY
groups try to maximize their gains while giving as little as
possible. This form is usually motivated by the desire to
acquire a large number of goods using minimal
resources.
Example: Gambling, stealing, bartering
,
 Transfers and the Government

Government Transfer/ Transfer payments/ Transfer

are a redistribution of wealth and income where no
goods or services are being given to the donor in return.
Among state societies, transfers are required payments
that could take form through the collection of taxes,
social services, pensions, housing, and healthcare.
 Redistribution
It occurs when individuals’
goods or services are pooled
together by a central authority to be used at a later time.
The central authority may refer to a regional collection
point, a storehouse, or the national capital.
 Transfers and the Government

in ensuring that transfer
The government plays a crucial role
payments are collected successfully from participating citizens
and institutions. In the government’s case, public goods are
provided to people through various programs and activities
that benefit its citizens.Among the different allocations of
transfer payments, governments usually give priority to
retirement and disability benefits, medical benefits,
unemployment insurance, and education and training.
Understanding Market Transactions
Market Exchange

refers to the organized process of sale and distribution at

money price. This would imply that for all forms of
transactions within a market, money is heavily utilized.
Market
refers to a bigger setting where buyers or sellers
simultaneously trade or exchange goods or services. Markets
could imply a global setting where states engage in market
transactions to exchange goods or services.
 Elements of Market Transactions
Money

It consists of objects that serve as means of

exchange for goods and services.
Prices
It is the amount required or agreed upon by the
exchanging parties. It is the amount of money
usedin exchange for a certain product.
 Elements of Market Transactions
Supply

It refers to the quantity of goods or services that are

available to sell at a given price and period of time.
Demand
It refers to the quantity of goods or services that
consumers are willing to purchase at a given price
and time period.
The Interaction of States and Markets

States need to foster economic growth to provide a good

standard of living to its citizens. At the same time, markets
exist because of the economic activities done by the state. As
such, we could easily conclude that markets and states are
dependent on each other. This interaction between states and
markets opens up the field of international political economy.
The Interaction of States and Markets

States need to foster economic growth to provide a good

standard of living to its citizens. At the same time, markets
exist because of the economic activities done by the state. As
such, we could easily conclude that markets and states are
dependent on each other. This interaction between states and
markets opens up the field of international political economy.
Types of State According to Market Roles

Laissez-Faire State
derived from French words that mean “to leave alone.”
According to the principle of laissez-faire, the economy
functions best when the government does not intervene
through regulations, subsidies, privileges, and other types of
intervention. The laissez-faire state, therefore, completely does
not have any role in managing the market.
Types of State According to Market Roles

Interventionist or Developmental State

a state that intervenes in the market and sets the direction and
pace of economic development. To bring about economic
development, developmental states implement policies, such
as subsidies, protection of tariffs and local industries, and
prioritization of some industries over others. In these types of
states, the state and the market are closely intertwined, and
their relationship is managed by a special bureau or
department that coordinates the developmental efforts of the
state on the economy.
Types of State According to Market Roles
Welfare State

is one that plays an important role in the achievement and

protection of the economic and social well-being of its citizens.
In contrast to the developmental state, the welfare state’s
involvement is aimed at achieving a good quality of life for the
citizens, rather than merely driving economic development.
Types of State According to Market Roles
Welfare State

Examples of programs of the welfare state are the provision of

health services, low-cost housing, and basic education. Within
the welfare state, the government itself is not the only actor
tasked with providing welfare. Businesses and organizations
may also contribute to providing welfare services. Various
forms of state-market relationships can bring about different
effects on the lives of the citizens in a country. Some states are a
combination of these types.