The Political and Economic Needs of Non-profit Institutions in a State

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States play a role in establishing institutions to manage their activities. Different units serve different purposes to attain political and economic development. In a globalized world, states also collaborate with other countries to enhance their work.

Contemporary states have embraced a system of governance that allows for co-existence of democratic and civil institutions in a country for better and quality service delivery. It has become essential for governments to have what is described as public institutions with mandate to work in the interest of the state. The popularity of hybrid governance is evident in the daily utterances at national and international forums on political and economic dimensions undertaken by countries around the world. With entrenched globalization, where governance and businesses are converging, the need to have appropriate institutions in place to help the implementation of the agenda of a state is essential for the development of a given country (Jordana & Levi-Faur, 2004). Furthermore, states are establishing regulatory frameworks and adapting institutional arrangements within the design that allows them to accomplish the purpose for which they are formed. In the hybrid management of political and economic dimensions of a state, the need for non-profit organizations is vital for the establishment of key institutions with the responsibility of supplying the public with goods and services while also promoting the social and cultural needs of the people at the global level.

Institutions to Support Political and Economic Growth of the New Government

Most states are based on "distinctive model of regulation that is a hybrid of state and non-state actors" (Graz, 2006, p. 231). Different institutions are essential when it comes to supporting the attainment of democracy in contemporary states. As such, new governments are urged to form government-related institutions with the responsibility of maintaining political and economic stability in the country. As noted by Graz (2006), "The role of non-state actors is a key issue; they cooperate across borders to establish rules and standards widely accepted as legitimate by agents not involved in their definition" (p. 231).. This implies that non-profit institutions established by state's laws are involved in promoting rules and standards in the state with the aim of achieving stability in terms of politics and economics. The following institutions will play a crucial role in enhancing the political and economic development of the new government within the framework of a globalised world where the occurrences in one country may reverberate across the region or the entire world.




These are essential institutions with the responsibility to maintain civil rights by ensuring that emerging cases in political and economic spheres of the country are handled according to the existing laws. Courts are hallmark institutions in a democratic state that offers an assurance that the citizens can access justice in a court of law (Petit, 2006). They are independent institutions run on public tax but which are not expected to turn profits to the government.

The Police

The police unit is an essential non-profit institution in any democracy because of the need to have social order. The police is responsible for the maintenance of social law and order in a country. It is natural that some people will cause harm to the property or other people residing in a society or community. The state, as a society of different people, must have a functional police unit responsible for ensuring that social law and order are maintained. The police also offer security and protection to political, social, and economic institutions in the country. The new government requires the services of the police to provide assurance to the governed citizens that they are safe against criminal elements or foreigners who may want to impede their property.

Commercial Banks

A central commercial bank is an essential institution in the regulation and control of the commercial activities in a country. There can be no economic success of a newly formed government if it is not able to form regulations on economic activities of different companies that operate in the country. The central bank is responsible for ensuring monetary policy and regulations that reinforce the collection of taxes which are essential for the successful operation of a government. As stated by Helleiner & Pickel (2005), any state, as it exists in the globalized world, has the mandate to centralize "monetary emission in conjunction with private agents". This function of the state is now achieved through a central bank which acts as a monetary regulator on behalf of the state.

National Human Rights Commission

There can be no democratic state without the adherence to human rights by the people. Human rights commissions are common in many modern states and are responsible for upholding the dignity of the governed citizens (Beck, 1998). The need for a human rights commission is underlined by the fact that new states are faced with many issues emerging from the struggles of the people to attain self-governance and independence. Human rights commission as a governmental non-profit institution is normally anchored in the constitution of the country (Burnham, 1990). This institution will help redress and correct the mistakes that may have occurred in the past and bring closure to the people who were affected by these mistakes. It allows for justice and reconciliation to prevail among the people of the same nationality.

The Military

Almost all governments in the world have military as a symbol of self-rule and independence. The military is an essential institution in a contemporary state that provides security from internal and external threats. It is built on the assumptions that a state may have a potential enemy who can pose a danger to the peaceful existence of the nation (Vogel & Kagan, 2004). By having a military unit in place, the state can ensure protection of the citizens from any attack. The military is also a symbol of power and self-governance, which are important for the continuity of the nation.

The Parliament

In most countries, the parliament is responsible for creating laws that are used in governance. The state is a growing entity, and in a globalized world where new demands are emerging, laws must also change to reflect arising demands. The parliament regularly enacts laws that govern the political and economic activities in the country (Taylor, 2005). Members of the parliament are elected by the people for a given period of time. The parliament is an important unit in the contemporary governance practices, because all other non-profit institutions of the state are founded on the laws formed by the parliament (Beck, 1998). The parliament will be formed under the consultation of the people and also through the international practice.

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Possible Challenges and How to Overcome Them

In creating the above institutions, the state might encounter a number of challenges. The first one is a lack of political and economic goodwill from critics who might have wanted to be in power. Positive criticisms are good, but where they disrupt the progress of the state, they may derail the establishment of the state (Taylor, 2005). This challenge can be overcome by ensuring a wider consultation with every concerned person before forming the structure. Another roadblock is finance. A new state is just being formed and there are no structures to collect the tax or create laws for financing public functions. Financial resources are likely to present a challenge to the implementation of the structures of the government. As argued by Burnham (2006), "viewing national states as political nodes in the global flow of capital, it is possible to avoid both the Smithian bias introduced by focusing uncritically on the market and the mistakes of orthodox IPE which treat state and market as independent variables". The solution is to partner with other friendly states to support the new government with financial aid which can be paid later when the state becomes fully functional. One more roadblock could be divergent political and economic interests which can threaten the implementation of the agreements in creating the state structures. The lack of common political, social, and economic goodwill can hamper the progress of implementing governance structures in a newly created government.

Another challenge will be establishing diplomatic relationships with other countries. In the modern globalized world no state can survive in isolation underlying the importance appear cooperation with other countries at commercial and political levels. The challenge might come during the selection of the first countries where diplomatic relations may be established (Gonzales, 2007). The complexity of non-profit structures and organizations involved in self-governance actions is evident in the pursuit of socio-economic and political functions of newly formed states. Newly formed democracies are not inclined to influence a new relationship with the political class, but rather focus on the provision of effective services to the people. The relationship of non-profit institutions should not be secretly constituted or based on strict confrontational approach, but rather on subsidiary and complimentary functions of the state (Helleiner & Pickel, 2005). The potential to bring about change in a new democracy is founded on implicit or explicit consent of the governed people instead of forceful and coercive compliance to what the state wants. The symbiotic relationship between the state and non-profit institutions forms the ground on which good governance is based.

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