International organization

An international organization, also known as an intergovernmental organization (IGO) or an international institution, is an organization that is established by a treaty or other type of instrument governed by international law that possesses its own legal personality, such as the United Nations, the Council of Europe, African Union, Mercosur and BRICS. International organizations are composed of primarily member states, but may also include other entities, such as other international organizations, firms, and nongovernmental organizations. Additionally, entities may hold observer status.

Within the international relations literature, international organizations facilitate cooperation between states by reducing transaction costs, providing information, making commitments more credible, establishing focal points for coordination, facilitating the principle of reciprocity, extending the shadow of the future, and enabling interlinkages of issues, which raises the cost of noncompliance. States may comply with the decisions of international organizations, even when they do not want to, for rational cost-benefit calculations (to reap concrete rewards of future cooperation and avoid punishment) and normative reasons (social learning and socialization).

International organizations vary in terms of: inclusive or exclusive membership; broad or narrow scope; equal or unequal control by members; precision and flexibility of rules; hard or soft obligations; and delegation of power to the international organization. Examples of international organizations include UN General Assembly, World Trade Organization, African Development Bank, UN Economic and Social Council, UN Security Council, Asian Development Bank, International Bank for Reconstruction and Development, International Monetary Fund, International Finance Corporation, Inter-American Development Bank, and United Nations Environment Programme.

Scottish law professor James Lorimer has been credited with coining the term "international organization" in a 1871 article in the Revue de Droit International et de Legislation Compare. Lorimer use the term frequently in his two-volume Institutes of the Law of Nations (1883, 1884). Other early uses of the term were by law professor Walther Schucking in works published in 1907, 1908 and 1909, and by political science professor Paul S. Reinsch in 1911. In 1935, Pitman B. Potter defined international organization as "an association or union of nations established or recognized by them for the purpose of realizing a common end". He distinguished between bilateral and multilateral organizations on one end and customary or conventional organizations on the other end. In his 1922 book An Introduction to the Study of International Organization, Potter argued that international organization was distinct from "international intercourse" (all relations between states), "international law" (which lacks enforcement) and world government.

International Organizations are sometimes referred to as intergovernmental organizations (IGOs), to clarify the distinction from international non-governmental organizations (INGOs), which are non-governmental organizations (NGOs) that operate internationally. These include international nonprofit organizations such as the World Organization of the Scout Movement, International Committee of the Red Cross and Médecins Sans Frontières, as well as lobby groups that represent the interests of multinational corporations.

IGOs are established by a treaty that acts as a charter creating the group. Treaties are formed when lawful representatives (governments) of several states go through a ratification process, providing the IGO with an international legal personality. Intergovernmental organizations are an important aspect of public international law.

Intergovernmental organizations in a legal sense should be distinguished from simple groupings or coalitions of states, such as the G7 or the Quartet. Such groups or associations have not been founded by a constituent document and exist only as task groups. Intergovernmental organizations must also be distinguished from treaties. Many treaties (such as the North American Free Trade Agreement, or the General Agreement on Tariffs and Trade before the establishment of the World Trade Organization) do not establish an independent secretariat and instead rely on the parties for their administration, for example by setting up a joint committee. Other treaties have established an administrative apparatus which was not deemed to have been granted binding legal authority. The broader concept wherein relations among three or more states are organized according to certain principles they hold in common is multilateralism.

An early prominent example of an international organization is the Congress of Vienna of 1814–1815, which was an international diplomatic conference to reconstitute the European political order after the downfall of the French Emperor Napoleon. States then became the main decision makers who preferred to maintain their sovereignty as of 1648 at the Westphalian treaty that closed the 30 Years' War in Europe.