International organization

An international organization, also known as an international institution or intergovernmental organization (IGO), is an association of states established by a treaty or other type of instrument governed by international law to pursue the common aim of its member states. An IGO possesses its own legal personality separate from its member states and can enter into legally binding agreements with other IGOs or with other states. The United Nations (UN), the Council of Europe, the African Union, the Organization of American States (OAS), the North Atlantic Treaty Organization (NATO), Mercosur, and BRICS are examples of IGOs. International organizations are composed of primarily member states, but may also include other entities, such as other international organizations, commmercial firms, and nongovernmental organizations. Additionally, entities may hold observer status. Under international law, although treaties are typically between states, intergovernmental organizations also have the capacity to enter into treaties. The traditional view was that only states were subjects of international law, but with the founding of the United Nations, that view expanded to include intergovernmental organizations.

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. Other examples of international organizations include the UN General Assembly, the World Trade Organization, the African Development Bank, the UN Economic and Social Council, the UN Security Council, the Asian Development Bank, the International Bank for Reconstruction and Development, the International Monetary Fund, the International Finance Corporation, the Inter-American Development Bank, and the United Nations Environment Programme.