Philippine Christian University

SENIOR HIGH SCHOOL DEPARTMENT

Dasmariñas City, Cavite
S.Y. 2019-2020

UNDERSTANDING CULTURE,
SOCIETY, AND POLITICS
(GRADE 12)
WEEK 9
MAY 4-8, 2020

MODULE
Name: Lopez, Alfredo Jr. C.
Strand & Section: STEM P 12
Teacher: Ms. Dionelyn Enerio
LEARNING COMPETENCIES:
1. Describe the organized nature of social life and rules governing behavior.

CHAPTER 6: Social and Cultural Institutions

LESSON 1 – Economic Institutions
Economic institutions
 are those that are involved in the production and distribution of the goods and
services that members of a society need. Economic exchanges, which are an
important part of a functioning economy, happen for different reasons and
through different ways. Because societies greatly differ from each other in terms
of culture, their systems of economic exchange may also vary.
a. 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. You might not realize it, but
people engage in reciprocity most of the time. Simple activities like borrowing
and returning a pen could be categorized as reciprocity. In societies, however,
reciprocity means more than just a simple social activity. The aim of engaging in
reciprocity is to build and strengthen social relationships as well as acquire more
means or favors. As you may recall from earlier lessons, social relationships are
needed to expand personal and cultural development at the macro and micro
level. Gaining more favors through reciprocity contributes to this development by
allowing people to maximize their options in times of need.
 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. For instance,
Filipinos who seek help from their acquaintances in accomplishing any specific
task, such as looking for a job or securing a personal loan for the family, would
see themselves indebted to their friends. When the time comes that the friend
asks for a favor, it is common practice to help him out 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. In the same way,
exchanges at the larger-scale could be facilitated through reciprocity. For
example, it is common nowadays to see big companies partnering up with each
other in hosting big events and promotions. These partnerships allow companies
to gain favors from each other and at the same time, benefit from each other.
Among national governments and states, the same process also occurs. This
could be seen especially in times of calamities or disasters. For instance, the
disastrous effects of Typhoon Yolanda in 2013 that took hundreds of lives and
destroyed thousands of properties in the Samar and Leyte region caught the
attention of many countries, private institutions, non-government organizations,
and even individual donors. All of them helped the Philippines through different
means. While the Philippines was able to survive the heavy impact of Typhoon
Yolanda, our country is still indebted to those who helped us survive the
 unfortunate event. As such, when other countries are facing risk and disaster, the
Philippines is also expected to return the favor by helping out.
b. Transfers and the Government
 The government plays a crucial role in ensuring that transfer 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.
c. 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. Note that the main
difference between redistribution and reciprocity is that the latter refers to an
exchange where goods are passed back and forth from one group to another.
 Redistribution, on the other hand, focuses on the collection of goods from
individuals in a community to be kept by a central authority. These goods are
collected to be used in the future by the same group. Products often move along
the hierarchy, where one official transfers the goods into the care of another until
they reach storage. While in storage, it is possible for members of the central
authority to consume some of the goods that are kept for the future. However,
because the primary aim of redistribution is to allocate such goods back to the
people, the central authority should do so. Doing such requires a reversal of
processes—from the storage area to the central authority, and ultimately back to
the common people.
 A good example showing redistribution is the lifestyle of the Cherokees in
Tennessee. Cherokees typically harvested corn, squash, and beans, but they
also fished and hunted on the side. Every Cherokee family had an area of land to
harvest, and they were required by their chief to give a portion of their annual
harvests. These were pooled together at the central plaza where redistributive
feasts and council meetings also take place. The products pooled together by the
chief are reserved for the needy and for travelers. Commoners could also acquire
some of the products with permission from the chief, while recognizing that the
chief still owned such goods. At times, the chief holds redistributive feasts where
he distributes the accumulated goods to his people.
d. Market Transactions
 Over a long period, many societies have evolved and have adopted a capitalist
economy where the market principle dominates. This principle implies that the
market is responsible for the sale and distribution of goods and services. A
prominent concept in discussing market transactions is market exchange which
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. Note, however, that a market, in this sense, does not just refer to a
physical structure (such as a public market) where local goods are sold to
consumers.
  A market, in economic terms, 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.
 In a market exchange, at least two people should be involved: one who has a
product and another who has the money. Using a system of barters and
bargaining, the two individuals agree upon a specific price for a specific quantity
of the product. To further understand this concept, let us use your personal
experience as an example. Dining out at restaurants by yourself or with your
family is an example of market exchange. When you eat out, you allot a specific
amount of money to buy food. The same amount of money you have allotted
could buy specific quantities of products from the menu. When you pay for your
food at the cashier, you are already engaging in a market transaction because
you gave up your money in exchange for goods or services, which in this case, is
food. Thus, all forms of market exchange would require the following: a medium
of exchange, a rateat which products are exchanged for money, and parties who
are involved in the exchange(i.e., buyers or sellers).
Elements of Market Transactions
 Money - consists of objects that serve as means of exchange for goods and
services.
 Prices - the amount required or agreed upon by the exchanging parties. It is the
amount of money used in exchange for a certain product.
 Supply - the quantity of goods or services that are available to sell at a given
price and period of time.
 Demand - the quantity of goods or services that consumers are willing to
purchase at a given price and time period.
e. Markets and States
 Providing an in-depth concept of the state requires a look at markets and vice
versa. 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. This phenomenon also drives changes
to the holistic development of a nation. One prominent example of the effects of
the interactions between states and markets is the case of China where
developments on both their market and state needs were emphasized and
utilized in their reform programs.
 As an effect, the country developed societal and economic growth over the past
two decades. The market-based and state-based reforms and developments that
China implemented rested highly upon the transformation of people’s communes,
state-owned enterprises, decentralization, price reform, and capital market
development.
 Reviewing the steps that China did to achieve economic and societal growth and
progress, we could easily conclude that the best way to uplift the economy and
the state itself is for the two entities to complement each other in their respective
political and economic processes. For instance, to ensure the successful market
 transactions, states need to be positive catalysts in ensuring an environment that
is highly beneficial for market activities.
Conflicts between Market and State Functions
 While some societies can move past the different focus of markets and states,
there are still ongoing debates about their theoretical and practical components.
For instance, the abrupt rise of globalization has led academicians to suggest the
end of the dominance of states in exchange for the emergence of global markets.
A widely-supported belief on states and markets is their inability to complement
each other in macro-functions. According to supporters of the contractualist
notion and liberal views, states are unnatural entities occurring within societies
because they are primarily built by strict delegations of power by citizens.
 In addition, liberal notions emphasize that because states are basically built by
citizens, the only power it has over society is to enforce its law and ensure that
group members are receiving equal rights. Thus, this perspective argues for a
minimal role of states and its inability to handle, control, and utilize markets.
Despite ongoing debate over the relationship markets and states, some
contemporary scholars suggested and provided empirical proof that the two
entities are indeed linked to each other and are equally important to societal
development.
Types of State According to Market Roles
 Laissez-Faire State
Laissez-faire is 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.

 Interventionist or Developmental State

The developmental or interventionist state is 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.

 Welfare State
The 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.
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.

ACTIVITY 1 (25 points)

Direction: Answer the following questions. Support your answers with facts and include
the references use.
1. What do you think are the advantages and disadvantages of independent foreign
policy of the Philippines in the economic aspect?
Philippine Foreign Policy, the Republic Act No. 7157 otherwise known as the
”Philippine Foreign Service Act of 1991. According to the page of the Embassy of the
Philippines Rome Italy, it gives mandate to the Department of Foreign Affairs to
implement the given 3 pillars of the Philippine Foreign Policy.
1. Preservation and enhancement of national security.
2. Promotion and attainment of economic security.
3. Protection of the rights and promotion of the welfare and interests of Filipino
overseas.
The advantages of this are first is this will benefit our country,that is given, this
will strengthen the bonds of neighboring countries to one another. Second, is this will
assure that our country will be economically and socially stable. Lastly, is for our
countrymen working abroad, this will assure that the government will continue to
recognize them for their critical role in the country’s economy. Regarding to the
disadvantages, I don’t see for now any disadvantages in this policy.
2. Due to the health crisis (COVID19), how did it affect the economic status of our
country locally and internationally? It devastatingly affects the global economy. We all
know that upon the spreading of this virus, many businesses, many cities, many
countries immediately closed, in hopes that this will help flatten the curve of this so-
called just a virus now a pandemic.
3. Cite some solutions on how to upgrade the economy system when it fluctuates or has
an economic breakdown. We all wants to slow down the virus to the extent that all
stores, cities, mega cities were now closed. But it’s also slowing down the economy of
our country. Right now, the solution is just to cope up with it because there’s nothing we
can do after all, the authorities are urging everybody to stay at home so what can we do
with this? COPE UP. Other businesses, non-essential stores, fastfood chains, and
restaurants successfully coped up. They all now do delivery. Yes it slows down
businesses, the economy, but we can continue little by little.
4. What do you think is the type of Philippine market today? Laissez-Faire State?
Interventionist or Developmental State? or Welfare State? Explain.
Interventionist or Developmental State. Because obviously in our country, the state and
the markets are intertwined. The State, the government, implemented policies to the
market. Put tariffs to the imported goods, subsidies and more.
5. If you were given the chance to be an Philippine economist, what economic plan will
you formulate to make our economy more abundant? If I would be given a chance to be
an economist and will be tasked to make an economy planning, I will consider the
Welfare State because this will surely benefits us all. According to the given meaning of
this above, “one that plays an important role in the achievement and protection of the
economic and social well-being of its citizens” on this premise, this will surely be a good
economy plan. Currently, we’re in Interventionist or Developmental State, so why not try
others?.

Reference used:
https://romepe.dfa.gov.ph/the-embassy/philippine-foreign-policy