Theme 1.

INSTITUTIONAL ENVIRONMENT OF INTERNATIONAL BUSINESS

1.1. International organizations in the system of regulation of international

economic relations
Regulation of international economic relations (IER) in modern conditions is
carried out on the basis of international treaties, decisions of interstate economic
conferences, international customs and decisions of international organizations. The
peculiarity of the latter is that they are both subjects of international economic relations
(on a par with individuals, legal entities and states), and part of the mechanism for
regulating these relations.
The objective need to regulate foreign economic relations between countries
stems from the growing interdependence and interconnection of national economies
and the corresponding intensification of the development of economic relations
between countries; inconsistencies in the national legislation of different countries,
which requires the creation of such a mechanism for regulating international economic
relations that would ensure balanced coordination of national legal regimes.
The main tasks of international regulation of the MEVat the present stage there
are:
• ensuring the stable development of the world economy;
• development of cooperation between countries in various forms;
• elimination of discrimination in trade and economic relations between
countries;
• promotion of private entrepreneurship;
• agreement and coordination of macroeconomic policies of states.
The MEV regulatory mechanism has two interconnected levels: national and
international. (Fig. 1.1).
National levelcorresponds to the system of state (government) actions aimed at
regulating foreign economic relations.
The elements of regulation of international economic relations at the national
level are:
 - management principles as fundamental rules characterizing a certain
"ideology" of the approach to international relations in the economic sphere;
- institutional and legal structures as a set of international and national norms,
rules, customs and agreements regulating cooperation;
- management tools and methodsas a set of specific measures to influence
individual processes, such as exchange rates, subsidies, customs tariffs, quotas and
licenses for export and import, a system for setting prices for goods and services for
international exchange, etc.

MEV regulation mechanism

National level - International level -

system of state (government) system of coordination of
actions aimed at regulating foreign economic policies of
foreign economic relations countries and individual
actions that require collective
international regulation

Main elements: Objects of coordination:

• management principles;
• institutional and legal
structures;
• management tools and
methods
• objectives;
• information;
• tools of economic policy;
• time, scale and forms of
carrying out specific
events, actions

Fig. 1.1. Mechanism of regulation of international economic relations

International levelcorresponds to the system of coordination of foreign

economic policies of countries and individual actions that require collective
international regulation.
The coordination of economic actions is understood as the process of agreeing
certain parameters of national economic policies of MEV subjects with the aim of
regulatory influence on global economic, regional or functional relations. Objects of
coordination:
 goals (agreement of common, joint, competing, interdependent goals);
 information (exchange, disclosure, storage, etc.);
 tools of economic policy;
 time, scale and forms of carrying out specific events, actions.
Coordination can be:
1. Depending on the number of parties involved in the agreement:
- bilateral (bilateral) - agreements and arrangements between two subjects of
MEV, which are reached through direct negotiations between partners;
- multilateral: ensures the agreement of various aspects of international
economic activity by at least three subjects from different countries.
2. Depending on the means of implementation:
- discrete: on the basis of agreement, which is achieved by taking so-called
discrete (one-time, separate) measures to achieve a common goal without creating
special permanent institutions;
- institutional: based on the agreement of the actions of states on the basis of a
certain international institution, that is, using already established laws, rules, norms,
customs and practices, organizational structures ("international institutions").

1.2. The history of the emergence and stages of development of international

organizations

The first international intergovernmental organizations as one of the stable forms

of regulation of international relations appeared relatively recently - in the middle of
the 19th century. However, their emergence was preceded by a rather long process of
development of international communication, during which objective public needs
were formed for the creation of special international bodies that would regulate
increasingly complex multilateral relations between states in various spheres of
activity. Conditionally, five main stages of the emergence and development of
international organizations can be distinguished:
 1. The era of slave states.
2. The period of feudal fragmentation.
3. The era of great geographical discoveries, industrial revolutions and the
formation of the world market.
4. The period between the First and Second World Wars.
5. Modern stage.
The era of slave states. Back in IV-VI century. B.C. in ancient Greece, there
were two types of international institutions: the Symmachia and the Amphictyony.
Symmachias are unions (coalitions) of states that had common military and political
goals. Amphictyonia were religio-political unions of tribes and cities with a common
sanctuary, treasury, and rules for conducting wars.
The period of feudal fragmentationis characterized by the fact that associations
of constantly warring states were formed primarily during the emergence of a threat
from a stronger common enemy (for example, the Polovtsy and Mongol-Tatars for
feudal Russia).
At the same time, trade unions began to appear on the world stage. An example
of such a trade union is one of the most famous unions of this type: the Hanseatic
League, which existed from the 14th to the 17th centuries. It included the North
German cities of Lübeck, Stralsund, Rostock, Wismar, Hamburg, and others. Cities -
members of the union tried to concentrate all intermediary trade between Western,
Northern and Eastern Europe. They had their own army and navy, which allowed them
to protect their own commercial interests and even wage wars with other states. The
Hanseatic League had trade offices in Novgorod, Pskov, Smolensk, Kaunas, Bergen,
Stockholm, Bruges, London, etc.
The third stage of developmentis characterized by the emergence of a number
of organizations that already had the features of modern international institutions: the
presence of agreed goals, a permanent body, work procedures, etc.
Some Western authors trace the history of interstate organizations back to the
so-called Holy Union, created by Russian Tsar Alexander I, Austrian Emperor Franz I
and Prussian King Friedrich Wilhelm III in September 1815 after the fall of Napoleon
I's empire.
 Sometimes specialists give primacy to the Central Commission of Shipping on
the Rhine, which was organized by the Congress of Vienna in 1814-1815, and began
to work on a permanent basis since 1831.
It is obvious that the needs of international business have historically been the
root cause of the development of international organizations, as evidenced by the
annals of the creation of the main ones: 1814 - the Central Commission of Shipping on
the Rhine; 1865 - International Telegraph Union; 1875 - International Weights and
Measures Committee; 1883 - International Union for the Protection of Industrial
Property Rights; 1890 - International Union for the Publication of Customs Tariffs;
1919 - International Organization of Entrepreneurs; 1920 - International Chamber of
Commerce; 1926 - International Organization for Standardization, etc.
Steady growth in the number of international organizations since the middle of
the 19th century. connected with the development of communication, transport
network, finance, international trade. At this time, such organizations as the Danube
Commission (1856), the Universal Postal Union (1874), the European Conference on
Passenger Train Timetables (1874), the International Telegraph Union (1875), the
International Union for the Protection of Industrial Property (1883) appear ) etc.
The period between the First and Second World Warsmarked by the appearance
of the world's first international organization of a universal type with broad (non-
specialized) competence - the League of Nations. Created in 1919 at the initiative of
American President Wilson, the League of Nations was:
- an international organization;
- association of governments;
- a method of organizing international life.
The modern stage of development of the Ministry of Defensestarts from 1945.
It has the following features:
 increasing the influence of international organizations on international
life, in particular economic;
 strengthening the role of non-governmental organizations in solving world
problems (through a system of consultations);
  the emergence and more than 50 years of successful functioning of a
universal organization of a global type - the United Nations;
 formation of other functional organizations of a global type - the
International Monetary Fund, the International Bank for Reconstruction and
Development, the General Agreement on Tariffs and Trade; World Trade
Organization;
 formation of a network of international organizations of a supranational
type, which institutionally ensure the activity of regional integration groups;
 strengthening the position of the UN due to the creation of a system of
"specialized institutions" consisting of sixteen intergovernmental organizations;
 expanding the sphere of activity of international organizations;
 a significant increase in the number of both intergovernmental and non-
governmental international organizations.
A characteristic feature of the modern stage of development of international
organizations is the expansion of their competence and the complexity of the structure. The
total number of international organizations is approaching 5,000, of which more than 400
are intergovernmental. Organizations of the economic direction make up the largest share -
more than 50% of all interstate organizations. Of the non-state ones, most of them are based
in commerce and industry, as well as in health care and medicine systems.

1.3. The essence of a modern international organization

Regarding the essence of the international organization, there are two approaches
among specialists: narrowed (institutional) and expanded. According to the first
interpretation, an international organization is a stable institution of multilateral
international relations, which is created by at least three parties (states) and has goals,
competences and permanent bodies agreed by the participants, as well as other specific
political and organizational norms (statute, procedure, membership , decision-making
procedure).
If we proceed from the definition itself, as well as from international legal norms,
membership in international organizations is determined by the following criteria:
  association of multinational parties (states, legal entities and individuals);
 agreed, common, permanent goals;
 availability of an international founding document;
 permanent organizational institutions;
 political and organizational norms;
 legal equality of participants;
 compliance of the goals of creation and activity with generally recognized
principles and norms of international law.
At the same time, all international organizations are different, and the elements
that distinguish one from another are: sphere of activity, goals, nature of competence,
organizational structure, membership, procedural aspects.
Representatives of the second approach claim that an international organization
is any group or association that, in its activities, goes beyond the borders of one country
and has a permanent structure of bodies. Such an expanded interpretation suggests the
classification of transnational corporations, so-called "revolutionary groups" and even
criminal groups as international organizations.
In addition, in Western literature, the term "international institution" is often
used in three meanings:
- international conference (congress);
- international commission (committee);
- international organization.
All these institutions, of course, have a generic commonality: an international
sphere of activity, an international nature of competence, and an appropriate
mechanism for regulating international relations. And they differ in their place and
legal status in the system of international relations. International conferences and
international commissions, as a rule, are not subjects of international law, but
international organizations are.
International conferencesare temporary international bodies whose activities are
not regulated by international legal norms due to the lack of international legal
personality. The work of conferences is structured according to its own rules of
procedure and regulated by temporary organizational structures.
 International commissions and committeesare usually created on the basis of an
international agreement, their activity is permanent, they create certain mechanisms to
ensure it, and therefore more than conferences, they are similar to international
organizations.

1.4. Types of modern international organizations

The problems of classification of international organizations are connected not

so much with their large number, but with the existence of many different features by
which classification is possible.
International organizations can be distinguished according to at least three basic
criteria: membership of states, geographical coverage, competence. In addition, the
characteristics can be supplemented with signs of legal status, nature of activity, period
of operation and procedure for joining the organization. (Table 1.2)
Its role and place in the system of international relations depends on the
characteristics (characteristics) of the organization.
Membership of states is recognized as the most important criterion for the
classification of international organizations, according to which organizations are
divided into interstate (MDO) and non-state (NGO).
Table 1.2.
CLASSIFICATION OF INTERNATIONAL ORGANIZATIONS
Classification criteria Types of international organizations
Membership of states 1) interstate (intergovernmental) 2) non-state 3) mixed
Geographic coverage 1) global (worldwide) 2) regional 3) subregional
Competence (functional coverage, 1) universal (general competence) 2) special (narrow
focus) competence)
Nature of powers (legal status) 1) international 2) supranational
1) regulatory 2) control 3) coordination and information 4)
Nature of activity
advisory
Period of operation 1) temporary 2) permanent
Procedure for joining the open closed
organization

International intergovernmental organizations- is an association of states

created on the basis of an international agreement, organized into a system of
permanent bodies, having a defined and agreed goal, international legal personality and
founded in accordance with the norms of international law.
International non-governmental organizations- organizationally organized
according to common or close social, political, economic, ideological, professional and
other interests of the association of various public groups from different countries.
Another important criterion for the classification of organizations is
geographical coverage. Global, regional and subregional organizations are
distinguished by it:
• global- these are organizations whose members are representatives of all
(or almost all) countries or regions of the world.
• regional- these are organizations in which a large number of
representatives of a certain region participate in their work;
• subregional- organizations formed from representatives of a small
number of one or different regions (Central European Initiative, Black Sea Economic
Cooperation Organization).
It is common among non-specialists to think that intergovernmental
organizations necessarily have a global character. In fact, only a third of all
intergovernmental organizations can be classified as truly global. Most of the interstate
organizations are regional, subregional and even bilateral organizations. It should be
noted that regionalism has historically been the most important factor influencing the
emergence and development of these organizations. This is due to the fact that at the
regional level more intensive ties between neighboring countries are objectively
formed, the need and possibility of creating customs unions and military alliances
arises. In addition, the costs of participating in regional organizations are generally
lower than in global ones.
Not all countries are equally represented in the system of intergovernmental
organizations. The smallest number of intergovernmental organizations was created in
Asia, Africa and Latin America, which is explained both by the relative youth of these
states and by insufficient financial capabilities. The twenty countries participating in
the largest number of interstate organizations include all the countries of Western
Europe, North America, and Australia. The system of non-governmental organizations
has similar characteristics. Only a fourth of the 4,000 modern non-governmental
organizations have a global character, approximately 25% of non-governmental
organizations are located in the European region, which is certainly related to the
development of the EU.
Regarding competence, that is, functional orientation, organizations are divided
into universal and special.
Universal:organizations that cover a wide range of relations between members
(economic, political, cultural, etc.); they are multi-purpose institutions.
Special:organizations that have limited goals, created for cooperation in one
field (for example, labor, health care, civil aviation, etc.) or cover a certain field of
activity (politics, science, culture, religion, etc.).
According to the nature of powers, all international organizations are divided
into international and supranational.
International organizationsis a confederal type formation. Confederation - a
form of government in which the states included in the confederation fully retain their
independence, have their own bodies of state power and management; to coordinate
actions to achieve a common goal, they create special joint bodies.
Supranational organizations -it is a federal type entity. A federation is a form
of government in which the states included in the federation have their own
constitutions, legislative, executive and judicial bodies, as well as supranational
authorities to solve common problems.
Depending on the terms of operation specified in the founding documents,
organizations are divided into temporary and permanent ones. The concept of
"temporary" should be taken conditionally: many international organizations are based
on agreements for a period of 10-20 years, which can be extended according to the
organization's procedure. On the other hand, if no plenary session has taken place
within 10 years, the organization is considered to have ceased to exist.
According to the order of entry, international organizations are divided into
open, which any state can become a member at its own discretion, and closed, which
can accept a new member only with the consent of the founders and compliance with
certain other conditions.
 QUESTIONS FOR SELF-CONTROL
1. Justify the necessity and task of regulation of international economic relations.
2. What elements and levels does the mechanism of regulation of international
economic relations have?
3. Explain the essence and features of bilateral and multilateral coordination of
economic actions in international relations? Give examples.
4. Explain the essence and features of discrete and institutional coordination of
economic actions in international relations? Give examples.
5. Name and describe the main stages of the emergence and development of
international organizations.
 Theme 2.
MECHANISM OF FUNCTIONING OF INTERNATIONAL
ORGANIZATIONS

2.1. Legal norms and principles of functioning of

international organizations
International organizations are subjects of international law.
International law, in particular international economic law, is a set of
principles and norms that regulate relations between its subjects.
The regulatory framework consists of rights and obligations of
international law. Norms of international law outline the "limits of what
is permitted" in international relations, establish specific rules of
conduct for subjects, including international organizations.
International legal norms are formed on the basis of agreements
between participants in international relations. If the agreement is
officially declared by the subjects, then such a norm is called
contractual; if the norm is not declared, but they mean it and do not
deny it, then it is called an international custom.
The sources of formation of the normative basis of the activities of
international organizations include:
- international agreements (contracts);
- decisions of international organizations and conferences;
- international customs;
- international codes of conduct.
International agreements are bilateral and multilateral,
depending on the number of participants. Of course, treaties on the
basis of which international organizations are formed are multilateral.
Norms and principles governing international relations are established
in international treaties (agreements). Contracts are divided into
general and specific.
 In general contracts, norms recognized as universal, calculated
for a long time, are implemented. Most of the treaties related to
international organizations are general in nature. As for specific
agreements, they are usually concluded between two states and have a
short-term nature.
International customs - these are norms that are formed as a
result of long-term practice of international relations. Customs can be
established on the basis of resolutions of international judicial
organizations (for example, the International Court of Justice of the
United Nations), official statements of heads of states or governments,
national legislation of states. The custom is defined by all participants
of international treaties, so to speak, "silently" as something that does
not require additional discussions. For example, the norm is accepted
as a custom: all states have sovereignty over their natural resources.
International legal norms may be formed as a result of decisions
of international organizations or conferences. Decisions can be
mandatory or advisory in nature. Depending on the nature of decisions,
"soft law" (recommendation decisions) or "hard law" (hard law) -
mandatory decisions are defined.
Sometimes the recommendations represent a whole summary, a
system of norms that determine the actions of subjects of international
relations in one or another sphere. Such norms are called international
codes of conduct. They systematize the rules of behavior of organization
members in international cooperation in a certain field of relations. For
example, norms for the regulation of transportation by the merchant
fleet, the code of conduct of transnational corporations, the code of
conduct of states in the transfer of high technologies, etc., have been
developed. Usually, codes of conduct are developed by organizations of
the UN system.
In addition to contractual and customary norms, the principles of
international law play an important role in the legal regulation of the
activities of international organizations. The principles are interpreted
as norms that are binding for all participants of international
organizations. Principles are divided into general and special.
The law of an international organization is an organically
interconnected set of legal principles and norms that ensure the
organization's existence and activity.
Sources of international organization law is:
- statutes or agreements on their creation;
- agreements regarding regulations, rules of procedure;
- separate acts establishing the status of personnel;
- agreements with the governments of host countries;
- agreements with other international organizations.
Legal norms related to the activities of international organizations
are conventionally divided into the following groups:
1. "Domestic law" ("own law") – norms that regulate the activities
of international organizations themselves and determine the nature,
functions and legal status of various categories of personnel, regulate
the procedure for solving property, financial and other issues (Fig. 2.1).

" Internal Law"

Rules of The status of Agreements with the Financial

procedure of the staff government of the issues
host country

Fig. 2.1. Issues regulated by the "internal law" of an international

organization

Procedure rulesregulate: conditions and procedure for entry and

exit from the organization; organizational structure; functions, rights
and duties of bodies of different levels; procedure, methods and
technical techniques of decision-making; document management, etc.
 Staff statusdetermines the following issues: legal status of
personnel, labor relations, living conditions, guarantees, privileges and
immunities.
Agreements with the government of the host countryin the part of
the organization's internal regime, they relate to the terms of
accreditation and staff status.
Financial issues, namely the sources of budget formation, the
methodology for calculating the amounts of contributions of the
organization's members, directions for using the budget, the procedure
for making decisions on financial issues, etc. - this is the financial part
of "internal law".
2. "Foreign law" - norms that fix the place of an international
organization in the general system of international relations and ensure
its status in specific conditions of residence, relations with states and
other international and national organizations. (Fig. 2.2.)

"Foreign Law"

Relations with other

international Relations with the Міжнародне
institutions host country приватне право

Fig. 2.2. Issues regulated by the "external law" of an international

organization

Relations with other international institutionsrelate to a wide

variety of organizational, financial, political, and legal issues provided
for by the statutes of international organizations and later agreements
and arrangements.
Relations with the host country (in terms of external law) relate to
the regime of stay, activities of the headquarters, privileges and
immunities of the organization as a whole.
 International private lawregulates issues of: acquisition of real
estate (including land) and movable property, acquisition of property
and material values from other international organizations; conclusion
of contracts for works, rental of vehicles, etc.; opening and using bank
accounts, obtaining loans; participation in court cases, other aspects.
3. Part of the legal norms that form the legal basis of the activity
of an international organization can be norms that ensure the
participation of other international organizations in their formation
(this applies primarily to non-governmental organizations and the UN).

2.2. Organizational and functional structure of international

organizations
The founding document of any international organization is its
Charter - a document that defines the goals and principles of the
activity of this organization. All members of the organization must
comply with the main provisions of the Charter in their actions.
Each international organization defines its goals, sphere of
competence, functions, organizational structure, decision-making
mechanism and their implementation.
Usually, the goals of international organizations are divided into
main and subordinate. The main goal (goal) of the organization
determines what, in fact, its founders decided to unite for. Subordinate
goals specify the main goal, more clearly defining the scope of the
organization's activities.
The goals of organizations largely define the scope of its
competence.
Competence of the organization is an object, a field of subject
activity, a range of problems that it will deal with. In addition, the
concept of competence includes a set of powers that the organization is
given to perform its functions.
 Depending on the range of problems they deal with, international
organizations are divided into:
- organizations of general competence - are familiar with a large
number of spheres of international activity - economic, political,
cultural, ecological, social, etc.
- organizations of special competence - have a narrower range and
more specific areas of activity.
Based on the goals and competence of the organization, its
functions are determined.
Functions of an international organization is considered an
external manifestation of its activity in the performance of its tasks.
The organization can perform its functions within the defined
competence. The functions are:
- the main ones - consist in determining the conformity of the
interests of the organization's participants with its goals. They are
closely related to the content of the organization's competence;
- regulatory - consist in the development of standards of behavior
of members of the organization, methods and forms of achieving goals,
as well as in the regulation of relations with other subjects of
international law;
- coordinating - consist in coordinating the interests and actions
of the organization's participants. This is especially important for
international organizations of a universal nature, with wide areas of
activity, a large number of members and a variety of goals;
- controlling - consists in monitoring the implementation of the
organization's decisions, as well as the development of the situation in
the field of its activity (monitoring);
- operational - consist in the performance of specific work of the
organization in accordance with its goals and competence.
Organizational structure is a set of interconnected management
bodies (structural divisions) of an international organization that is
able to ensure the functioning of this organization and the performance
of its main functions. Separate management bodies are formed
precisely to perform certain functions. Each structural division of the
organization has a clearly defined competence of its activity. The
organizational structure is characterized by hierarchy and
subordination, that is, higher, executive, auxiliary, etc. bodies are
defined.
The bodies of the international organization can be classified
according to various criteria.
Functionally management bodies are divided into:
- higher (main) bodies recognize the most important spheres
of activity of the international organization, make decisions on the most
important issues, and these decisions are final. The higher body
determines the general policy of the organization, its principles;
considers budgetary and financial issues; has the right to revise and
supplement the charter; makes decisions regarding the admission of
new members to the organization or exclusion from its composition.
However, higher bodies do not perform operational functions. Most
often, the composition of higher bodies includes representatives of all
states, and then such a body is called plenary;
- executive bodies implement decisions and resolutions adopted
by higher and some other bodies. They perform operational functions
and (with some exceptions) do not engage in law-making activities;
- administrative bodies also deal with the performance of current
functions. But their rank is inferior to the rank of executive bodies.
Administrative bodies are engaged in day-to-day organizational work,
which is mainly aimed at the internal affairs of the organization. Most
often, these functions are performed by the secretariat. Its scope
includes preparation of documentation for holding conferences and
meetings; organization and conduct of negotiations between the
organization and other subjects of international law; organization of
technical assistance to member states; material and technical support
of the organization.
Although the secretariat occupies a subordinate place in the
organizational structure, it is often headed by the person who is at the
top of the hierarchical pyramid and is its main representative in
international relations. In the UN, this role is performed by the
Secretary General. But despite his undeniable authority, the Secretary
General is accountable for his actions to the UN General Assembly. The
position of Secretary General is also in some other organizations, for
example, in the World Tourism Organization, OECD, OPEC, etc.:
- international courts - specific control bodies. They not only
resolve disputes between members of organizations, but also monitor
compliance with norms and principles of behavior written in the
statute;
- auxiliary organs - as a rule, each such organ performs a single,
clearly defined function;
In addition to the functional one, there are other criteria for the
classification of bodies of international organizations. Based on the
nature of membership, the following are distinguished:
intergovernmental, interparliamentary bodies, bodies consisting of
individuals in their personal capacity, bodies consisting of national
committees and groups.

2.3. Decision-making in international organizations

The term "decision of an international organization" has a general
meaning, and its essence and specific legal form (resolution,
recommendation, decision, resolution, conclusion, appeal, etc.) are
usually disclosed in the statutes of organizations.
For example, the OECD (Organization for Economic Cooperation
and Development) makes three types of decisions:
 - resolutions that are binding on members of the organization,
with the exception of states that abstained from voting, and states
whose national constitutions do not allow the adoption of this
resolution;
- recommendations that are advisory in nature;
- resolutions - in the form of an appeal to the country
(international organization) or informative document.
There are four legal forms of decisions in the EU:
- directives (obliging countries regarding the final result, but
giving the opportunity to independently choose the ways and means of
achieving it);
- proposals (mandatory for all member countries),
- decisions (mandatory for countries that have expressed interest
in them);
- recommendations are not binding.
In addition, the decisions of international organizations can be
classified according to the following criteria: legal force, addressee,
geographical orientation, method of their adoption and the scope of
issues to which the decision belongs (Fig. 2.3).
Decision-making is one of the most important stages of an
international organization's activity. The decision-making process can
have a fundamentally different nature in intergovernmental and non-
governmental organizations, international institutions of different
political and functional orientations.
 Fig. 2.3. Types of decisions of international organizations

The practice of international organizations shows that the main

stages of the decision-making procedure are:
- posing a question;
- consideration of the issue and development of a solution;
- decision making (voting, consensus).
At the stage of posing a question, a proposal for discussion and
decision-making by one of the bodies of the international organization
can be made:
- a member of an international organization;
- a group of members of this organization;
- another body of this international organization;
- by another intergovernmental or non-governmental
international organization (at the same time, non-governmental
organizations, unlike intergovernmental organizations, are granted
such a right on the basis of a unilateral decision of the
intergovernmental organization).
Initiatives or proposals, the result of which is the adoption of a
decision, can be submitted in the following forms:
- a proposal to discuss the issue and make a decision (that is,
without having a ready-made draft decision);
- submission of a ready draft decision.
It should be noted that ready draft decisions are very rarely
submitted to one or another body of an intergovernmental organization
by another intergovernmental institution and almost never by a non-
governmental one. It is assumed that the body of the international
organization, which is authorized to make a decision, must
independently prepare such a project.
Consideration of the issue and development of a solution -
the most important, and sometimes the longest stage, which is
organized and fully responsible for its effectiveness by the body of the
international organization that develops the draft decision. This stage
is also objectively divided into several interconnected stages:
- presentation (clarification) of the positions of participating
countries or members of the organization;
- search for mutually acceptable solutions using the mechanism
of official and unofficial meetings, consultations, discussions,
discussions, etc.;
- creation of auxiliary bodies for the preparation of the draft
decision (working and editorial groups);
- transfer of the draft decision to the body that will make the
decision for preliminary review and approval.
Decision making procedure is formed on the basis of the chosen
method and technical decision-making technique. In the practice of
international organizations, there are four methods of decision-making:
unanimous, majority (by the majority of votes), consensus, method of
"weighted" votes (Fig. 2.4).
In a general sense, unanimity is a positive vote of all without
exception for the proposed decision. In the charters of international
organizations, this method is specified, which led to the emergence of
the concepts of "absolute unanimity", "relative unanimity", "qualified"
unanimity and "unanimity of interested parties (members)".

Fig. 2.4. Decision-making methods in international organizations

Absolute unanimity - positive vote of all members of the

international organization. At the same time, the decision cannot be
made if one of the members of the organization was absent or abstained
from voting.
Relative unanimity - positive voting of the members of the
international organization, for which the votes of those who
abstained are not taken into account when determining the voting
results (the decision can be taken unanimously even by the votes of
the minority).
"Qualified" unanimity (unanimity of great powers) - the principle
of voting in the UN Security Council, which provides for the unanimity
of not all members of the Council, but only its permanent members -
Russia, the USA, France, Great Britain and China.
Unanimity of interested parties - positive voting only of
interested parties, i.e. those who are directly affected by this issue.
Majority method, that is, decision-making by majority vote, also
has varieties:
- absolute (simple) majority - decision-making by an absolute
majority of 50% of votes plus one vote from the total number of
members of the organization, or 50% of votes plus one vote from the
total number of those present participating in the vote;
- "qualified" majority - decision-making by a qualified majority (for
example, two-thirds) of the votes specified by the organization's charter.
When using the majority method, the consequences of the vote for
the minority must be discussed - the obligation to carry out these
decisions or the possibility to act independently.
Consensus method decision-making appeared in the practice of
primarily non-governmental international organizations in the mid-60s.
To date, there is still no unified view of what "consensus" is. This is
explained by the fact that consensus has various forms and the content
often coincides with such concepts as "without voting", "without
discussion", "unanimously". Most often, consensus is understood as
such a method of development and decision-making, when there are no
objections from at least one member of the organization against the
adoption of a specific act or document. So, the consensus is:
1) the process of reaching a joint decision through the
development of a pre-agreed view;
 2) the decision-making procedure without voting and in the
absence of formally filed objections in most cases.
"Weighted" voting - a method of decision-making in which the
members of the organization have an unequal number of votes
depending on the indicators (criteria) specified in the charter:
participation in the financing of the organization, economic potential,
volume of foreign trade, etc.
One and the same international organization can use different
methods depending on the degree of agreement of the participants'
positions.
According to experts, the decision-making methods used in
international organizations are divided as follows: majority and
consensus - 72%, unanimity - 15%, "weighted" voting - 13%. The most
traditional and widespread in modern international organizations is the
majority method.
The decision-making process ends with a procedure after which
the decision is legally accepted or rejected. Special technical decision-
making procedures are used for this (Fig. 2.5).
 Fig. 2.5. Technical methods of decision-making in international
organizations

Acclamation (lat. acclamatio — cry, exclamation) — acceptance

or rejection of a decision without voting, based on the reaction of the
participants (exclamations, remarks, etc.). This technical technique is
used in the committees of the UN General Assembly, in many non-
governmental organizations.
Voting as the process of identifying an opinion (attitude) when
solving issues in international organizations is simple and
straightforward. Simple voting (that is, without fixing the position of
the voting party) can be conducted secretly or openly. Simple secret
voting, based on the use of anonymous questionnaires, allows you to
completely keep the position of a member of the organization on this
issue a secret. In the results of a simple open vote, it is also not fixed
which member of the organization belongs to "for" or "against". A simple
open vote by a show of hands or by standing is used to resolve any
issues, unless the statute provides otherwise or none of the
representatives of the member states requires a roll-call vote.
Roll call voting, as a rule, is conducted in the following cases: to
resolve disputed issues; to resolve issues of a fundamental nature; to
exert moral pressure on the other party.
The roll-call voting technique is as follows:
1. The sequence of voting is determined. Roll-call voting takes
place in alphabetical order of the names of the participating countries,
starting with the country that is determined by drawing lots. The order
of names is built according to the alphabet of the official language of
the organization, and if several official languages are approved in the
organization, then an additional lottery is held to determine the
language.
 2. Each member of the organization (participating countries) is
called, and its representative answers "yes", "no" or "abstain". The
answers are recorded in the documents of the meeting.
3. Voting results are summed up and the final decision is
announced.
Postal voting-involves receiving written answers to previously sent
questionnaire letters. This technique is usually used by non-
governmental organizations and small organizations in developing
countries.
Consensus as a technical decision-making technique consists of
the following actions: the agreed text of the document is read aloud, the
absence of objections is noted, the decision is declared accepted.
 2.4. International employees
The term "international officials" means a set of persons entrusted
with the task of ensuring the functioning of international organizations.
Their professional activity is dedicated to an international goal in
nature, and they are subject to a special legal regime. The most well-
known is the definition of an international official as a person who, on
the basis of an intergovernmental agreement and under the control of
these states or this body, is entrusted by representatives of several
states or a body acting on their behalf to perform certain functions
permanently and on the basis of special legal rules in the common
interests of all these states.
So, the status of an international employee is determined by three
main features:
- stay in the service of the international administration, which is
subordinated not to one state, but to a set of member states;
- activities aimed at achieving goals and in the name of the
interests of the international community as a whole; territorially limited
competence does not contradict the concept of an international
employee;
- working in an international organization full-time and on a
permanent basis, fully giving one's strength and abilities to perform the
functions assigned to him (technical experts, members of arbitration
commissions, administrative tribunals, conciliation commissions are
not international employees).
When characterizing the status of an international employee, one
should take into account such aspects as appointment, status, duties
and rights (Fig. 2.6).
The right to appoint international employees belongs only to a
specific international organization and is usually exercised by its
general secretary or director. Governments directly participate in the
process of appointing international officials only of high rank (members
of international courts, general secretaries, etc.).

Fig. 2.6. Elements of the status of an international employee

Selection of international employees is conducted taking into

account two basic principles:
- the presence of appropriate personal traits (ability to work,
competence, conscientiousness, etc.);
- necessity balanced regional representation.
Legal status of an international employee can be determined
either on the basis of the contract drawn up between him and the
organization, or on the basis of the personnel status approved by the
organization. The last method is adopted in the UN and the EU. The
legal status actually regulates the structure and level of
responsibilities of the rights of an international employee.
The main duties of an international employee consist of the
following: perform assigned functions and concentrate all efforts on
work; not to participate in activities incompatible with the status of an
international employee; protect professional secrecy; act tactfully, with
the necessary restraint; refrain from participating in political activities;
not to consult or receive recommendations (instructions) from any
government or authority.
 Among the rights of an international employee can be mentioned:
receiving a salary, financial assistance, pension; use of tax privileges;
guaranteed legal protection through a system of independent
administrative tribunals.

QUESTIONS FOR SELF-CONTROL

1. Describe the sources of formation of the normative basis of
international organizations.
2. Define the law of an international organization and name and
describe its sources.
3. What issues does "domestic law" regulate? Give examples.
4. What issues does "foreign law" regulate? Give examples.
5. Consider the charter of a specific international organization and
characterize it as the main founding document of this organization.
 Theme 3.
INTERNATIONAL INTERGOVERNMENTAL ECONOMIC
ORGANIZATIONS
3.1. The essence and types of intergovernmental organizations

The essence of international intergovernmental organizations is determined by

the official participation of states and governments in their activities, as well as the
importance of the tasks that these organizations are called to solve. States today
participate in international organizations in order to rationally solve practical problems
that cannot be solved by the efforts of one country, to effectively combine the potentials
of interested parties. However, when a problem arises, the first step for governments is
not to create an organization, but to try to resolve the situation through treaties or
informal ad hoc agreements, which are known to be much cheaper. But if the problem
will arise periodically or will require permanent settlement, then there is a need to
create an organization. At the same time, it should be noted that intergovernmental
organizations are not always an instrument of cooperation. Sometimes they represent
a forum for resolving conflicts and interstate disagreements.
Governments, as a rule, consider membership in international organizations as
one of the main means of implementing their foreign policy program, because:
- in the structure of the ministries of foreign affairs of all countries, there are
departments that deal with issues of cooperation with international organizations;
- membership fees to intergovernmental organizations are a separate (and
increasingly significant) item of state spending on foreign policy;
- special permanent representations of states have been established at many
intergovernmental organizations.
Participation in international organizations, in turn, imposes defined and
officially recorded obligations on states, and in some cases makes decisions made by
the organization binding on them. In addition, two types of interstate economic
organizations can be distinguished depending on the breadth of their competence -
general economic and sectoral.
 General economic organizationsaimed at establishing coordination and
cooperation of countries to solve a wide range of sometimes not only economic, but
also political, socio-cultural, environmental and other problems.
The orientation of branch organizations is much narrower - the coordination of
international economic cooperation in a separate industry or field of activity.
As a rule, states are more inclined to cooperate with intergovernmental
organizations that have a narrow functional orientation and clearly defined goals than
with organizations of a broad profile.
The most influential among intergovernmental organizations of a general
economic nature are the European Union (EU), the Organization for Economic
Cooperation and Development (OECD), the League of Arab States (LAA), the
Economic Community of West African States (ECOWAS), the Latin American
Economic System (LAES), the Association of Southeast Asian Nations of Asia
(ASEAN), Asia-Pacific Economic Cooperation (APEC), etc.
Among the sectoral economic organizations, those that promote international
cooperation in the field of industrial development and construction are distinguished -
the United Nations Industrial Development Organization (UNIDO), the Organization
of the Petroleum Exporting Countries (OPEC), the European Atomic Energy
Community (Euratom), the European Union of Coal and Steel (EUCS), International
Bauxite Association (IAB), International Tin Council (ICO); in the field of agriculture
and processing industry - Food and Agricultural Organization of the United Nations
(FAO), International Fund for Agricultural Development (IFAD); in the field of
transport and means of communication - the International Civil Aviation Organization
(ICAO), the International Maritime Organization (IMO), the Organization of Railway
Cooperation (ORC), the European Conference of Ministers of Transport (ECMT), the
European Space Agency (ESA), the Universal Postal Union ( Air Force), International
Telecommunication Union (ITU), Arab Postal Union (APU); in the field of finance and
credit - International Monetary Fund (IMF), International Bank for Reconstruction and
Development (IBRD), African Development Bank (AFDB), Bank for International
Settlements (BIS); in the field of international trade - World Trade Organization
(WTO), European Free Trade Association (EFTA), General Agreement on Tariffs and
Trade (GATT).

3.2. Main functions of intergovernmental organizations

International intergovernmental organizations perform certain functions, that is,

a set of actions and activity processes aimed at the implementation of the organization's
tasks. The main function of any intergovernmental organization is to search and
identify areas of common interests of member countries, as well as to achieve their
agreement on joint tasks and actions. In addition, each international organization
performs certain special functions: regulatory, operative, control, informative,
consultative, which reveal its essence, forms of its work, specifics of activity and
priority tasks.
Regulatory function- establishment of certain standards, norms, rules of
behavior for states, international organizations or their personnel, which have moral,
political or legal significance.
Operational function- this is the implementation by the personnel of the
organization with the help of the means it possesses, of the decisions made of an
executive nature. A type of operational function is control - identifying the actual state
of affairs in the organization's spheres of activity and comparing it with standards that
are reflected in the founding documents or acts of the organization's own bodies. With
regard to member countries of the organization, the control function can be carried out
in two ways:
1) collection and processing of information ("soft" international control);
2) on-site inspection.
Information functionrelated to providing members of the organization with
pre-arranged information in the form of statistical summaries, comments, thematic or
industry reviews, annual reports, etc. Collection, processing, systematization,
preservation and provision of information is one of the most important spheres of
activity of any organization.
 Advisory functionprovides for the creation of a mechanism for providing
members of the organization with advisory services on issues of the organization's
activities (for example, a system of annual, special and periodic consultations of the
International Monetary Fund).
The member states of the international organization directly participate in the
implementation of the regulatory and control function, and the international
organization itself participates in the implementation of the operational function.
The functions of international intergovernmental organizations mentioned above
are interdependent and interconnected. They must be carried out in strict accordance
with the statutory principles of the organization's activities, as well as the competence
of its structural units.

3.3. Procedure for formation of international intergovernmental

organizations

An international interstate organization is created on the basis of an agreed

expression of will of the states, recorded either in an international treaty (agreement)
or in a decision of an already existing organization. The procedure for creating an
international organization consists of:
- adoption of the founding document;
- formation of the structure of the organization;
- convocation of the main body.
The existence of an international organization most often begins with the
conclusion of an agreement and the adoption of a founding document, which has a
different name in different organizations, for example, the Charter (UN), Convention
(WIPO), etc. As a rule, for this, an international conference is convened, at which the
text of the founding document of the organization is developed and adopted. The date
of creation of the organization is considered the date when this document entered into
force.
The second method of formation of an international organization, which is
based on the adoption of a decision of another international organization, involves
the agreed manifestation of the will of the states through voting for the founding
resolution, which enters into force from the moment of its adoption. This method is
used by the UN, in particular, during the creation of autonomous organizations with
the status of an auxiliary body of the General Assembly (UNCTAD - 1964, UNDP -
1965).
The constitutive documents of international organizations define their
competence, that is, the object or sphere of activity, and the powers necessary to
perform tasks.
The formation of the structure of an international organization is carried out by
specially formed preparatory bodies on the basis of a separate international agreement
or an appendix to the charter of the organization being created, or on the basis of a
resolution of another international organization. These documents determine the
composition of the preparatory body, its competence and functions, which consist in
the development of draft rules of procedure of the future bodies of the organization,
the establishment of headquarters, the preparation of the agenda for the main bodies,
the preparation of documents and recommendations related to the agenda, etc. This is
how UNESCO, FAO, IAEA and other international organizations were created.
The convening of the main bodies and the start of functioning complete the
process of creating an international organization.
States that are not members of the international organization can send their
observers to participate in the work of the organization's bodies, if this is allowed by
its rules, and create missions of permanent observers.
Termination of the existence of the organizationalso takes place through the
agreed expression of will of the member states, which is carried out on the basis of the
signing of the protocol on dissolution (Warsaw Treaty - protocol on dissolution of June
1, 1991, REV - protocol on dissolution of the organization of June 28, 1991).
The financial resources of the international organization consist mainly of
contributions from member states and are spent on common needs.
The set of bodies of the international organization, which makes up its
organizational structure, is created on the basis of the founding document of the
international organization and is given the appropriate competence, powers and
functions. For each body, the appropriate internal structure, composition, decision-
making procedure is determined, and its legal status is determined in the founding
documents.
Intergovernmentalthe bodies consist of representatives of member states who
have the authority to act on behalf of their governments. Inter-parliamentary bodies
consist of members who are either elected by the population of member countries
through general direct elections (the European Parliament) or appointed by national
parliaments (the Parliamentary Assembly of the Council of Europe). Administrative
bodies consist of officials who are in the service of an international organization and
are subordinate only to it. Arbitration, judicial bodies and committees of experts consist
of persons - specialists, who are given certain powers.

3.4. Organizational structure of international intergovernmental

organizations

Modern intergovernmental organizations have a rather complex organizational

structure, depending on the goals and scope of activities. At the same time, almost all
of them have three types of bodies in their structure: higher, executive and
administrative. Committees, commissions and legal bodies can also work in the
structure of some (Table 3.1.)
 Table 3.1
Characteristics of bodies of the intergovernmental organization
The most
Type of The principle of Nature of
common Competence
organs formation activity
names
Higher On an equal Assembly General policy of the Sessional
footing Session organization and its principles
Conference Review of the charter —
membership in the organization
Formation of
executivebodiesElection of the
chairmanReview of
reportsBudget policyIssues of
activity
executive On the basis of BoardDirector Control over the Constant
representation ate implementation of decisions of
CommissionC higher bodies
ommittee You prepare
meetingsDevelopment of the
budget
Questions about personnel
Administrat Geographic Secretariat Representation in external Constant
ive representation relations Publications
Qualification Development of reports
Committees Geographic Solving a specific problem Temporary
, representation Permanent
commission Qualification
s
Legal CourtTribunal Resolution of various types of Constant
bodies Arbitration conflicts

Higher bodieshave a sessional nature of activity and are formed on an equal

basis, that is, from representatives of all member states. Meeting, as a rule, once or
twice a year, representatives of countries decide on the following issues: admission and
exclusion from the organization, as well as suspension of membership in it; formation
of executive bodies and election of their heads; review and decision-making regarding
the purpose of the activity; consideration of relevant reports; establishing the principles
of budget formation and use; review of statutory documents and activity strategy.
Executive bodies, which have a permanent nature of activity, must ensure the
continuity of the organization's work between meetings of higher bodies by monitoring
the implementation of decisions of higher bodies, preparing decisions for the next
session, resolving budget issues, personnel issues. They are formed by higher bodies
by electing to them representatives of all (EU, ASEAN, etc.) or a certain number (IMF,
IBRD, etc.) of member states.
The criteria for the formation of these bodies are fair geographical
representation, the size of the financial contribution, specific interests, etc.
Administrative bodies (secretariats)must cover the activities of the organization
in the mass media, organize conferences, congresses and other events, compile reports,
and publish the organization's documents. Secretariats have their own internal
structure: senior officials, specialists and service personnel.

QUESTIONS FOR SELF-CONTROL

1.Define an intergovernmental organization. What is the difference between

intergovernmental and non-governmental international organizations.
2. What types of interstate economic organizations do you know? Describe them
and give examples.
3. Reveal the main functions of interstate international organizations.
4. Describe the procedure for creating an international intergovernmental
organization.
5. What is the nature of activity, principles of formation and competence of
higher bodies of intergovernmental organizations? Name the most common names of
these organs.
 Theme 4.

INTERNATIONAL NON-GOVERNMENTAL ECONOMIC

ORGANIZATIONS

4.1. The essence and types of international non-governmental organizations

The Economic and Social Council of the United Nations gives the following
definition of an international non-governmental organization: "Any international
organization not created on the basis of an intergovernmental agreement." Constituent
documents of non-governmental organizations are not international agreements and are
not regulated by international public law. Therefore, international non-governmental
organizations are subjects of private international law. At the same time, like
intergovernmental organizations, they have their own institutional and contractual
mechanism, thanks to which they exert an appropriate influence on economic, political
and other international relations.
Most international non-governmental economic organizations have charters as
founding documents, which reflect the goals and principles of activity, membership
issues, the composition and competence of structural units, the procedure for making
decisions and their types, budgetary issues, forms and directions of activity, etc. But
not all non-governmental organizations have such a charter.
Members of international non-governmental organizations, in contrast to
interstate ones in which representatives of governments participate, are private
individuals (individual membership), national organizations (collective membership)
or both at the same time (individual and collective membership). Most NGOs have
collective members — national associations, national groups, national professional
organizations, etc. Some organizations also include representatives of states, but they
have a special status, and the essence of a non-governmental organization does not
change from this.
The vast majority of decisions of non-governmental organizations have the
character of non-binding recommendations on issues that are within the competence of
the organization. Only "internal" decisions (financial, procedural, organizational,
disciplinary, etc.) are mandatory. Regardless of the degree of their legal obligation for
members, the acts of non-governmental organizations do not have international legal
significance.
The budgets of non-governmental organizations are formed mainly at the
expense of membership fees, the amounts of which are determined by the governing
bodies of these organizations according to special scales. Additional sources of funding
can be private donations, financial support from various foundations, governments, and
other international organizations.
International non-governmental economic organizations can be divided into the
following groups:
• general economic — European Society for the Study
of public opinion and market conditions (ESOMAR); International Chamber of
Commerce (ICC); Union of International Fairs (USF); International Center for
Wholesale Trade;
• industry — International Conference of Electricity Producers,
European Committee for the Production of Textile Equipment, International Center for
Chemical Fertilizers, European Furniture Union, International Association for the
Production of Dairy Products, World Association of Travel Agencies, etc.;
• cooperative — International Cooperative Alliance (ICA), Caribbean
Cooperative Confederation, Scandinavian Cooperative Wholesale Society, etc.;
• public organizations that study economic and social issues, the
International Association of Economic Sciences (IEA), the International Statistical
Institute, the International Council for the Study of Population Problems, the
International Committee for the Scientific Organization of Labor in Agriculture, the
International Institute for the Study of the Economic Life of Society.
Although intergovernmental and non-governmental organizations have different
orientations, the unifying point for these two types of organizations is the presence of
a set of interests that go beyond national borders. If intergovernmental organizations
are a bridge between governments, then non-governmental organizations are a bridge
between peoples. In general, intergovernmental organizations are recognized as
important subjects of international relations, regardless of the fact that they tend to
express the narrow interests of national governments. Of course, such organizations as
the International Confederation of Accordionists or the World Federation of Tailors do
not influence international affairs. Instead, such non-governmental organizations as the
association of environmental defenders "Greenpeace", revolutionary groups, such as
the "Palestine Liberation Organization", exert a significant influence on world events,
The growing role of non-governmental organizations in international relations is
confirmed by the following trends in their development:
- constant growth of the number (1945 - 862, 1955 - 985, 1965 - 1995, 1975 -
2470 and 1990 - almost 4000, currently - more than 8000 non-governmental
organizations);
- strengthening cooperation in solving not individual, but global problems of
modern international relations;
- increasing the level and scale of interaction with international
intergovernmental organizations, especially with the institutions of the UN system;
 - the formation of a broader, less nationally limited worldview in the participants
of non-governmental organizations, which is commonly called "international
socialization";
- strengthening the independence and authority of these organizations, which
leads to a certain competition in forms and methods of activity with intergovernmental
organizations and governments of individual countries.
However, non-governmental economic organizations currently still play a
secondary, supporting role in the coordination of international economic cooperation;
have limited financial resources, a relatively small number of personnel.

4.2. Organizational structures and forms of activity of non-governmental

economic organizations
Economic non-governmental organizations, which differ in their goals and
composition, forms and methods of activity, and functional orientation, have a fairly
similar system of governing bodies, which consists of the following main types: higher,
executive, administrative.
higher authorities, as in intergovernmental organizations, solve the most
important issues of the organization's activities. The main form of work of these bodies,
which have a representative nature, is holding sessions in the terms determined by the
statute.
Executive bodies ensure the organization's work in the period between sessions
of higher bodies, monitor the implementation of decisions, prepare the next sessions.
They are formed by the higher bodies of the non-governmental organization and hold
their meetings several times a year.
Administrative bodies conduct current affairs of the organization: solve
organizational issues, represent the organization in external relations, organize
document circulation, are responsible for office management, publication of necessary
documents and materials, etc.
Some international non-governmental organizations create on a permanent or
temporary basis committees, commissions, groups of experts or regional branches as
auxiliary bodies to solve certain tasks.
Among the modern forms of activity of international non-governmental
organizations, the following can be mentioned: adoption of resolutions; organization
of events (congresses, conferences, seminars, symposia, meetings to discuss current
issues); conducting research work; participation in events organized by
intergovernmental organizations; publication of informational materials; organization
of training and advanced training courses.
 Adoption of resolutions by the bodies of non-governmental organizations is one
of the main forms of activity, although these decisions are of a recommendatory nature.
Prepared and adopted resolutions, projects, charters, declarations are often used by
governments or intergovernmental organizations to develop relevant documents.
Organization of events. Congresses, conferences, seminars, etc. are forums
where current problems of international relations are discussed, and the attitude of
national organizations and individual participants to them is revealed. Governments
also use such meetings to express their position on a certain issue in the greetings
(messages) of the heads of state and government.
Conducting an experimental study work (collection of information on
economic problems and its processing, preparation of reports, development of
recommendations), publication and distribution of newsletters, reviews, other materials
— implementation of informational and advisory functions of some organizations.
Participation in events organized by intergovernmental organizations,- this
is a feature of the modern development of non-governmental organizations, evidence
of their authority and influence, further improvement of the institutional structure of
regulation of global economic relations. This gives non-governmental organizations
the opportunity to exert an additional influence on the course of some processes in the
world economy, to influence the decisions of intergovernmental organizations, to
receive additional financial funds from the latter for the implementation of joint
projects. And such cooperation gives intergovernmental organizations the opportunity
to receive additional information from independent sources, to involve highly qualified
specialists and experts of non-governmental associations in working on joint projects,
to use the forms of work of the partner organization to achieve a common goal.
The legal basis of the mechanism of interaction of non-governmental and
intergovernmental organizations is the relevant provisions of the statutes of the latter.
Thus, according to the charter, the Economic and Social Council of the United Nations,
having direct relations with more than 600 non-governmental organizations, gives
them consultative status under the Council and divides them into three categories:
1 category: organizations whose competence includes most types of activities of
the Council itself;
2nd category: organizations of special competence in certain spheres of activity
of the Council;
3 category (register): organizations that, if necessary, can contribute to the
activities of the Council, its subsidiary bodies or other UN organizations.
Some regional intergovernmental organizations have similar mechanisms of
interaction with non-governmental organizations. Obtaining consultative status
depends on the international authority of a non-governmental organization, interest in
cooperation with it, and provides an opportunity to send observers to meetings of
intergovernmental institutions, consult, participate in the discussion of issues, make
statements, propose issues for the agenda, and conduct joint events.
Almost all non-governmental organizations are trying to obtain consultative
status with the relevant intergovernmental organizations. In addition, certain forms of
cooperation and interaction exist between non-governmental organizations.
Publication of informational and analytical materials - a form of work that,
along with conducting research activities, involves the regular publication of
magazines, brochures, statistical guides, and newspapers. Thus, the Association for
International Studies publishes the "Quarterly Journal of International Studies", the
Atlantic Institute of International Relations - the journal "Atlantic Reports", the World
Association for the Study of Public Opinion - the quarterly newsletter "Herald", etc.
Organization of training and advanced training courses - this form of activity
is characteristic of organizations whose statutes state the purpose of spreading certain
knowledge among the population of all countries. For example, the Vienna Institute
for Development and the International Association of Economic Sciences carry out
educational programs, and the International Cooperative Alliance organizes
educational trips for cooperators to familiarize themselves with the development of
cooperation in other countries.
 4.3. Activities of the main non-governmental economic organizations
1. The European Society for the Study of Public Opinion and Marketing
Research (ESOMAR) is an information and research center established in 1948 in
Amsterdam, which has now turned into the most authoritative organization in the
world, which promotes the development of marketing activities of companies and the
conduct of marketing research. ESOMAR is a legal entity and has no commercial
interests, the structure of the society's budget consists of: membership fees (60%),
income from holding congresses and seminars (17%), interest on deposits in banks,
proceeds from the sale of its own publications, income from advertisers ( 23 %).
The purpose of ESOMAR's activity is to establish contacts between marketers of
companies from different countries, to spread the most effective methods of marketing
research, as well as to establish and observe ethical norms and rules of marketing activity.
Only marketing specialists can be members of the organization. Membership is individual
and paid. In the total number of members (almost 3000), marketing consultants - 66%,
service customers - 34%.
The main form of activity of ESOMAR is the holding of annual congresses, at
which 30-40 reports on the study of the most effective methods of marketing activities
of firms are heard. Seminars are held 5-6 times a year on more specific issues. Both
members of the organization and representatives of other countries and continents
participate in the work of congresses and seminars.
The highest body of the organization is the congress (convened annually), the
executive body is the council, headed by the president, who acts as an official representative
in relations with other organizations. Current management is carried out by the secretariat.
ECOMAR publishes the journal "European Research" (6 times a year), materials of
congresses and seminars, the "ECOMAR handbook" on international national marketing
organizations and terminological dictionaries on marketing.
Members of ESOMAR from Ukraine are managers of some firms engaged in
marketing research, namely - Kyiv International Institute of Sociology, Socis-Gallup
International, USM, "International Consulting and Information".
2. International Association of Economic Sciences - a union of national
associations of economists, created in 1950 at the initiative of UNESCO. The purpose
of the organization is to spread economic knowledge, expand personal contacts and
improve mutual understanding between scientists of different countries through the
organization of scientific conferences and congresses, conducting joint or parallel
research. The charter provides only collective membership of national scientific
associations or committees, and private individuals can participate in the work of
conferences.
 The governing bodies of the organization are the council and the executive
committee. The council consists of representatives of national associations, with a
three-year term of president elected, and determines the general policy of the
organization. The executive committee (president, vice-president, treasurer, nine board
members) manages the organization between sessions and holds executive committee
meetings annually. To prepare conferences and develop programs, the executive
committee creates committees with three to five specialists. The secretariat is located
in Paris.
3. International Cooperative Alliance (ICA) - founded in 1895 in London by
representatives of the cooperative movement of 14 countries: Australia, Austria-
Hungary, Argentina, Belgium, Great Britain, Denmark, India, Italy, the Netherlands,
Russia, Serbia, the USA, France and Switzerland. The initiators of the creation of the
alliance were supporters of the so-called Christian socialism in the cooperative
movement - Great Britain and France, who considered cooperation as a means of
establishing social peace.
Modern goals, declared by the statute, - promotion of the development of
cooperation in all countries; promotion of the principles and methods of the cooperative
movement, protection and representation of its interests; establishment and
development of mutual contacts, cooperation between cooperatives of different
countries. The alliance includes almost 170 national and 7 international cooperative
organizations.
The main forms of the alliance's activity are the organization of congresses,
holding meetings, seminars, participation in the activities of the UN and its specialized
institutions, events of intergovernmental organizations.
The governing bodies of the MKA are the congress, the central committee, and
the executive committee. The Congress, which convenes once every four years, defines
policy and develops a program of activities. The Central Committee serves as the
representative governing body between congresses, elects the president, two vice-
presidents, members of the executive committee and appoints the director. The
executive committee manages the activities of the alliance between meetings of the
central committee. The current work is managed by the secretariat. The headquarters
of МКА is located in London.
4. The European Business Congress (EBC) is an international socio-political
non-governmental organization that unites enterprises, associations and unions of
entrepreneurs of the member countries of the Organization for Security and
Cooperation in Europe (OSCE). The EDC was created on December 8-9, 1997 in Bonn
(Germany) at the founding conference of political figures, businessmen and bankers
from 37 OSCE countries. According to the organizers, the EDC should play the role of
a forum for discussing topical issues of the development of pan-European economic
cooperation and supporting a constructive dialogue of the most influential
representatives of the business world of the OSCE region with the governments of the
Organization's member countries. The idea of creating an EDC was actively supported
by such companies as Siemens, Rurgas, Deutsche Bank, Credit Lyonnais, Gas de
France, etc.
For the first time, the idea of creating an organization that would promote
economic cooperation, the formation of optimal conditions for dialogue between
political and business circles of the OSCE countries, between OSCE bodies and
business representatives of countries with transition economies, was first heard at the
Budapest OSCE Summit in December 1994. During subsequent OSCE economic
forums (Prague, June 7-9, 1995; Geneva, January 22-23, 1996, Prague, March 1996)
this idea was supported by their participants. On October 30, 1996, a "round table" was
held in Vienna with the participation of business circles of nineteen OSCE countries,
at which a decision was made to hold in the second half of 1997 a founding conference
on the issue of creating a European Business Congress.
According to the Statute, the members of the EDC can be enterprises, unions and
associations of enterprises, as well as their partners from OSCE participating countries
that recognize the OSCE Statute. Each OSCE country can be represented in the EDC
by no more than ten members. The statute provides for the possibility of associate
membership. Associate members are granted the rights and obligations stipulated by
the Statute, with the exception of the right to vote at sessions of the General Assembly
and to be elected to the governing bodies of the UDC. Quantitative restrictions do not
apply to associate members, who pay 50% of the entry and membership fees,
respectively.
According to the Charter, the goals of the EDC are: promoting economic
cooperation in the OSCE region and economic development of the OSCE participating
states, creating optimal conditions for dialogue between political and business circles,
as well as protecting the rights and legitimate interests of its members and providing
them with assistance in order to improve the efficiency of their activities .
The priority areas of activity of EDK are defined as: legislation, banking and
financial spheres, energy, ecology and health care, information and communications,
business security.
Duties of the EDC are:
- assistance in the adoption of legislative acts and international agreements
that meet the interests of enterprises, participation in the development of drafts of
relevant acts and agreements;
- representation of the interests of enterprises in the OSCE, government
bodies, international organizations, participation in sessions, forums and other
events held by them;
 - cooperation with government, state, commercial and other institutions and
organizations at the international and regional levels;
- assistance in providing optimal conditions for establishing personal contacts,
holding business meetings and effective exchange of information between
representatives of business circles;
- assistance to its members in the consolidation of resources for the
implementation of large economic projects;
- organization of conferences, symposia, seminars on current problems of
business activity and implementation of information and publishing activities.
The fundamental difference of the EDC from other numerous international
public non-governmental structures operating in the OSCE region is that it unites direct
market participants.
5. The Club of Rome is an association of scientists, public figures and
representatives of the world's business circles who are engaged in the study of global
problems. It was created in 1968 on the initiative of a group of scientists who
participated in an international meeting in Rome. The activities of the club are carried
out mainly through the organization of research, the topics of which include a wide
range of issues (currency problems, the new international economic order, natural
resources, ecology, etc.). The results of research are made public in the form of so-
called reports of the Club of Rome, in the discussion of which its members participate.
For example, the book of Bohdan Gavrylyshyn, a member of the board of the club,
"Guidelines for the Future" (reports to the Club of Rome, 1979) is well known to
international specialists in Ukraine.
The Club of Rome has neither full-time academic staff, nor its own charter, nor
its printed body. The governing body is the executive committee, which annually
organizes club meetings in different cities of the world. The club's secretariat is located
in Rome.
6. The Dakar Club - an association of representatives of the social, political and
business circles of African and Western European countries - was founded in 1974 in
Dakar (Senegal).
The Dakar Club is an informal forum for discussions and joint search by
development specialists for solutions to international economic problems, especially in
the field of industrial development of African countries and their relations with
industrially developed countries.
Club membership is individual. An initiative committee (eight members) was
created to manage the activities of the club between sessions. The president of the club,
who is elected for three years, is a member of this committee. The headquarters is
located in Dakar.
 4.4. International non-governmental economic organizations
Importance of international non-governmental organizations. The
Economic and Social Council of the United Nations gives the following definition of
an international non-governmental organization: "Any international organization not
created on the basis of an intergovernmental agreement." Constituent documents of
non-governmental organizations are not international agreements and are not regulated
by international public law. International non-governmental organizations are subjects
of private international law. At the same time, like intergovernmental organizations,
they have their own institutional and contractual mechanism, exerting an appropriate
influence on economic, political and other international relations.
International non-governmental organizations is an association of national
organizations, unions, groups and individuals based on non-governmental
agreements. Therefore, the state is not responsible for activities of its citizens or
social groups in such organizations. However, some non-governmental organizations
have a significant influence on the development of world events and, in particular, on
international economic relations.
Most international non-governmental economic organizations have charters as
founding documents, which reflect the goals and principles of activity, membership
issues, the composition and competence of structural units, the procedure for making
decisions and their types, budgetary issues, forms and directions of activity.
Members international non-governmental organizations, in contrast to interstate
ones in which government representatives participate, are private individuals
(individual membership), organizations (collective membership) or private individuals
and organizations at the same time (individual and collective membership). Most
NGOs have collective members - national associations, national groups, national
professional organizations, etc. Some organizations also include representatives of
states.
International non-governmental organizations are organizations promoting
development and cooperation in a wide range of international relations: in politics,
economy, culture, scientific technical activity. Today, there are more than 4,000
international non-governmental organizations in the world. International non-
governmental organizations do not set themselves the goal of obtaining profit and
function at the expense of the contributions of their members.
Most of the decisions of non-governmental organizations have the character of
non-binding recommendations on issues that are within the competence of the
organization. Only "internal" decisions (financial, procedural, organizational,
disciplinary, etc.) are mandatory. Regardless of the degree of their legal obligation for
members, the acts of non-governmental organizations do not have international legal
significance.
Budgets of non-governmental organizations are formed mainly at the expense of
membership fees, the amounts of which are determined by the governing bodies of these
organizations according to special scales. Additional sources of funding can be private
donations, financial support from various foundations, governments, and other
international organizations.
International Organizations maintain close ties with the UN and
intergovernmental organizations.
According to UN resolutions, international on-governmental organizations can
participate in the preparation of its conferences, in the development of resolutions.
Non-governmental organizations have consultative status with some international
regional organizations. Thus, under the Council of Europe, 350 non-governmental
organizations have this status1.
Cooperation between non-governmental organizations and interstate
organizations is carried out in the following main areas:
• provision of information about their activities and distribution of
information received from intergovernmental organizations;
• provision of consultations on matters within their competence to
other organizations, public groups and individuals;
• participation in the law-making process, development of draft
international agreements;
• monitoring compliance with the norms of international law,
especially in the field of human rights and environmental protection;
• creation of investigative commissions to investigate international
crimes.
International non-governmental economic organizations can be divided into the
following groups:
• general economic – European Society for the Study of Public Opinion
and Market Conditions (ESOMLR); International Chamber of Commerce (MTII);
Union of International Fairs (USF); International Center for Wholesale Trade;
• industry – International Conference of Electricity Producers, European
Committee for the Production of Textile Equipment, International Center for Chemical
Fertilizers, European Furniture Union, International Association for the Production of
Dairy Products, World Association of Travel Agencies, etc.;
• cooperative – International Cooperative Alliance (ICA), Caribbean
Cooperative Confederation, Scandinavian Cooperative Wholesale Society, etc.;
 • public organizations that study economic and social issues - the
International Association of Economic Sciences (IAS), the International Statistical
Institute, the International Council for the Study of Population Problems, the International
Committee for the Scientific Organization of Labor in Agriculture, the International
Institute for the Study of the Economic Life of Society.
Although intergovernmental and non-governmental organizations have different
orientations, the unifying point for these two types of organizations is the presence of a
set of interests that go beyondnational borders. If intergovernmental organizations are
a bridge between governments, then non-governmental organizations are a bridge
between peoples. In general, intergovernmental organizations are recognized as
important subjects of international relations, regardless of the fact that they tend to
express the narrow interests of national governments. Of course, such organizations as
the International Confederation of Accordionists or the World Federation of Tailors do
not influence international affairs. But such non-governmental organizations as the
Roman Catholic Church, the association of environmental defenders "Green Peace",
revolutionary groups such as the "Palestine Liberation Organization" exert a significant
influence on world events, primarily due to the independence of their actions and
assessments from governments.
Non-governmental organizations will play a decisive role in history, namely in
matters of economic well-being, social progress, peace and security. Governments must
lead and create the conditions, but they cannot and should not be the sole driver of progress.
The growing role of non-governmental organizations in international relations is confirmed
by the following development trends:
• constant growth of the number (1945 – 862, 1955 – 985, 1965 –
1995, 1975 – 2470 and 1990 – almost 4000 non-governmental organizations);
• strengthening cooperation in solving not individual, but global
problems of modern international relations;
• increasing the level and scope of interaction with international
intergovernmental organizations, especially with the institutions of the UN system;
• the formation of a broader, less nationally limited worldview in the
participants of non-governmental organizations, which is commonly called "international
socialization";
• strengthening the independence and authority of these organizations,
which leads to a certain competition in the forms and methods of activity with
intergovernmental organizations and governments of individual countries.
Today, non-governmental economic organizations play a secondary, auxiliary role
in the coordination of international economic cooperation; have limited financial resources,
a relatively small number of personnel.
 Economic non-governmental organizations have a fairly similar system of governing
bodies, which consists of the following main types: higher, executive, administrative.
higher authorities, as in intergovernmental organizations, solve the most
important issues of the organization's activities. The main form of work of these bodies,
which have a representative nature, is holding sessions in the terms determined by the
statute.
Executive bodies ensure the organization's work in the period between sessions
of higher bodies, monitor the implementation of decisions, prepare the next sessions.
They are formed by the higher bodies of the non-governmental organization and hold
their meetings several times a year.
Administrative bodies conduct current affairs of the organization: solve
organizational issues, represent the organization in external relations, organize document
circulation, are responsible for office management, publication of necessary documents
and materials, etc.
Some international non-governmental organizations create on a permanent or
temporary basis committees, commissions, groups of experts or regional branches as
auxiliary bodies to solve certain tasks.
Among the modern forms of activity of international non-governmental
organizations, the following can be named:
• adoption of resolutions;
• organization of events (congresses, conferences, seminars, symposia,
meetings to discuss current issues);
• conducting research work; participation in events organized by
intergovernmental organizations;
• publication of informational materials; organization of training and
advanced training courses.
Adoption of resolutions by the bodies of non-governmental organizations is one
of the main forms of activity, although these decisions are of a recommendatory nature.
Prepared and adopted resolutions, projects, charters, declarations are often used by
governments or intergovernmental organizations to develop relevant documents.
Organization of events. Congresses, conferences, seminars are forums where
current issues are discussed international relations, the attitude of national
organizations and individual participants towards them is revealed. Governments use
such meetings to express their position on a particular issue.
Conducting an experimental study work (collection of information on economic
problems and its processing, preparation of reports, development of
recommendations), publication and distribution of newsletters, reviews, other materials
— implementation of informational and advisory functions of some organizations.
 Participation in events organized by intergovernmental organizations, is a
feature of the modern development of non-governmental organizations, evidence of
their authority and influence, further improvement of the institutional structure of
regulation of global economic relations. This gives non-governmental organizations the
opportunity to exert an additional influence on the course of processes in the world
economy, to influence the decisions of intergovernmental organizations, to receive
additional financial funds from them for the implementation of joint projects. Such
cooperation gives intergovernmental organizations the opportunity to receive additional
information from independent sources, to involve highly qualified specialists and
experts of non-governmental associations in working on joint projects, to use the forms
of work of the partner organization to achieve a common goal.
The legal basis of the mechanism of interaction between non-governmental and
intergovernmental organizations is the relevant provisions of the statutes of
intergovernmental organizations. Thus, according to the charter, the Economic and Social
Council of the United Nations, having direct relations with more than 600 non-
governmental organizations, gives them consultative status under the Council and divides
them into three categories:
a. category – organizations whose competence includes most types of activities
of the Council itself;
b. category – organizations of special competence in certain spheres of activity of
the Council;
c. category (register) - organizations that, if necessary, can contribute to the
activities of the Council, its subsidiary bodies or other UN organizations.
Some regional intergovernmental organizations have similar mechanisms of
interaction with non-governmental organizations. Obtaining consultative status does
not depend on international authority government organization, interest in cooperation
with it and gives the opportunity to send observers to meetings of intergovernmental
institutions, consult, participate in the discussion of issues, make statements, propose
issues for the agenda, conduct joint events.
Almost all non-governmental organizations are trying to obtain consultative
status with the relevant intergovernmental organizations. In addition, certain forms of
cooperation and interaction exist between non-governmental organizations.
Publication of information and analytical materials — a form of work that, along
with conducting research, involves the regular publication of magazines, brochures,
statistical guides, and newspapers. Thus, the Association for International Studies
publishes the "Quarterly Journal of International Studies", the Atlantic Institute of
International Relations - the journal "Atlantic Reports", the World Association for the
Study of Public Opinion - the quarterly newsletter "Herald", etc.
 Organization of training and advanced training courses - this form of activity is
characteristic of organizations whose statutes state the purpose of spreading certain
knowledge among the population of all countries. For example, the Vienna Institute for
Development and the International Association of Economic Sciences carry out
educational programs, and the International Cooperative Alliance organizes educational
trips for cooperators to familiarize themselves with the development of cooperation in
other countries.
The oldest international non-governmental organizations were formed in the
19th century. Yes, one of the most famous and the most influential organizations, the
International Red Cross, was founded by the Swiss Henri Dunant in 1863, its purpose
was to provide humanitarian aid to prisoners of war, sick and wounded soldiers during
the war. Later, aid was extended to those affected by natural disasters in peacetime.
Initially, the Red Cross consisted, according to the idea of its organizer, only of the
Swiss, as representatives of a traditionally neutral state. But very soon Red Cross
centers appeared in many other countries. In regions dominated by Islam, they received
the name Red Crescent, in Iran - Red Lion and Sun. The Red Cross saved many people
from disease or starvation.
In 1899, the Inter-Parliamentary Union appeared, consisting of national groups
of parliament members who shared its goals. It was formed by pacifist
parliamentarians. The highest body of the Union is defined as the Conference; the
executive committee is located in Geneva. The main goal of the Inter-Parliamentary
Union is to promote peace and cooperation between states and prevent a world war.
The Union includes parliamentary groups from about 90 countries. As time has shown,
the work of this organization was not very effective.
After the Second World War, a rapid process of formation of international non-
governmental organizations began. Many of them arose as a pacifist reaction to the
horrors of war, such as the International Democratic Federation of Women (1945), the
International Organization of Journalists (1946), and the International Association of
Democratic Lawyers (1946).
In connection with the creation of the UN, the World Federation of UN Aid
Associations was established in 1946. It united national associations supporting the
UN.
Main goals of federations: coordination and promotion of the activities of
national associations supporting the UN, strengthening international cooperation and
mutual understanding between peoples.
The Federation has consultative status with ECOSOR and actively cooperates
with many UN bodies.
 The highest body of the Federation is the Plenary Assembly; the executive body
is the Executive Committee. Administrative and organizational work is carried out by
the Secretariat. About 70 states are included in the Federation association.
The World Federation advocates disarmament, strengthening of international
peace, development of cooperation between countries. Considerable attention is paid
to economic problems discussed within the framework of 00H.
International non-governmental economic organizations (NGOs) are the most
interesting for us. In 1895, the International Cooperative Alliance was formed, which
connects national and regional unions of cooperators. Its goals: development of the
cooperative movement, cooperation between cooperative organizations of different
countries. Has consultative status at ECOSOR. In 1920, the World Confederation of
Labor was founded; at first it was known as the International Confederation of
Christian Trade Unions, it received its current name in 1968. It has more than 15
million members. The main goal of the organization is to raise wages and improve the
working conditions of workers. The World Federation of Trade Unions was founded
in 1945; the total number of its members reaches 200 million people.
International non-governmental economic organizations are not easy to classify
due to their large number and diversity of their goals and functions. Conventionally,
they can be divided into two groups:
• international associations of entrepreneurs;
• international chambers of commerce and industry.
This group includes the majority of MNEO. Among them are the International
Cooperative Alliance, the Union of International Fairs, the World Council of Credit
Unions, the International Petroleum Association, the International League Against
Unfair Competition and others. Clubs should also be included in this group. In the post-
war period, when integration processes accelerated, organizations began to be formed
that united representatives of TNCs, big business, and politicians at both the global and
regional levels. These organizations communicate closely with groups "Seven", "Ten"
and others. Such non-governmental organizations include, in particular: the Tripartite
Commission, the European Business Congress, the International Association for the
Protection of Industrial Property, the Pacific Economic Council, the Pacific Economic
Cooperation Council, the Association of Financial Institutions in the Asia-Pacific
Region. Let's consider the most important non-governmental organizations of this
group.
Club of Rome. Club of Rome- association of scientists, public figures and
representatives of business circles of the world, who are engaged in the study of global
problems. Created in 1968. The activities of the club are carried out mainly through the
organization of research, the topics of which include a wide range of issues (currency
problems, the new international economic order, natural resources, ecology, etc.). The
results of research are made public in the form of so-called reports of the Club of Rome,
in the discussion of which its members participate. For example, the book of Bohdan
Havrylyshyn, a member of the board of the club, "Guidelines for the Future" (reports of
the Club of Rome, 1979) is well known to international specialists in Ukraine.
The sphere of his interests, despite economic and social issues, is ecology and
some areas of scientific and technical forecasting. Its appearance in 1968 is connected
with the name of the famous businessman, a member of the management of the
company "Fiat" Aurelio Peccei. As an educated person who cares about the future that
awaits humanity, he gathered around him 3 prominent European and American
scientists to solve urgent social problems. Later, the number of scientists reached 100,
and it was decided that the club should be limited to this number. On the basis of
interesting research, several works were published, which became an outstanding
phenomenon in the scientific world and society. Among them: "Humanity at a turning
point" by Mesarovych and Pestel, "The limit of growth" by Meadows and others. The
studies of the scientists of the Club of Rome proved the need for restrictions on
economic growth, because, according to their forecasts, the resource base of the
economy will be undermined, and humanity will face the inevitable threat of ecological
disaster.
Organizational work of Rome of the club is carried out by the Executive
Committee and the President. Today, the club includes 100 prominent representatives
of business circles, scientists, politicians and public figures from 52 countries of
Europe, Asia, America and Africa. 27 national club associations were formed. The
Club of Rome is not associated with political parties, social classes or certain
ideologies. Its members act in their personal capacity and do not represent the interests
of any state. The club does not have a permanent budget, as this would limit the
freedom of its activities.
The activities of the Club of Rome are aimed at carrying out studies of global
problems of our time with the aim of assisting politicians and the public in adopting
new attitudes and strategic directions and the further development of humanity.
The Club of Rome has neither full-time academic staff, nor its own charter, nor
its printed organ. The governing body is the executive committee, which annually
organizes meetings of the club in different cities of the world. The club's secretariat is
located in Rome.
Dakar club. Dakar Club– association of representatives of public, political and
business circles of African and Western European countries –was founded in 1974 in
Dakar (Senegal).
The Dakar Club is an unofficial forum for discussions and a joint search by
development specialists for ways to solve international economic problems, especially
in the field ofindustrial development of African countries and their relations with
industrially developed countries.
Club membership is individual. To guide activitiesthe club has created an
initiative committee (eight members) between sessions. The president of the club, who
is elected for three years, is a member of this committee. The headquarters is located
in Dakar.
Tripartite commission. The tripartite commission was formed in 1973 with the
participation of D. Rockefeller, the chairman of Chase Manhattan Bank. It unites about
300 representatives of large TNCs, political circles, economists from the USA, the EU
and Japan. The main goal of the commission is to promote close cooperation between
entrepreneurs of developed countries.
The governing body of the Tripartite Commission is the Executive Committee,
which consists of 35 members. The commission prepares reports with an analysis of
economic and political problems facing developed countries, develops
recommendations for solving specific problems. The proposals of the Commission are
sent to the governments of individual countries. It has a significant influence on the
government bodies of Western countries.
European Business Congress (EBC). The European Business Congress is an
international society on-political non-governmental organization that unites
enterprises, associations and unions of entrepreneurs of the member countries of the
Organization for Security and Cooperation in Europe (OSCE). The EDC was
established on December 8-9, 1997 in Bonn (Germany) at the founding conference of
political figures, businessmen and bankers from 37 OSCE countries. According to the
organizers, the EDC should play the role of a forum for discussing topical issues of the
development of pan-European economic cooperation and supporting a constructive
dialogue of the most influential representatives of the business world of the OSCE
region with the governments of the Organization's member countries. The idea of
creating an EDC was actively supported by such companies as Siemens, Rurgas,
Deutsche Bank, Credit Lyonnais, Gas de France, etc.
For the first time, the idea of creating an organization that would promote
economic cooperation, the formation of optimal conditions for dialogue between
political and business circles of the OSCE countries, between OSCE bodies and
business representatives of countries with transition economies, was first heard at the
Budapest OSCE Summit in December 1994. During subsequent OSCE economic
forums (Prague, June 7-9, 1995; Geneva, January 22-23, 1996, Prague, March 1996)
this idea was supported by their participants.
 According to the Statute, the members of the EDC can be enterprises, unions and
associations of enterprises, as well as their partners from the regionmember states of
the OSCE that recognize the OSCE Charter. Each OSCE country can be represented in
the EDC by no more than ten members. The statute provides for the possibility of
associate membership. Associate members are granted the rights and obligations
stipulated by the Statute, with the exception of the right to vote at the sessions of the
General Assembly and to be elected to the governing bodies of the EDC. Quantitative
restrictions do not apply to associate members, who pay 50% of the entry and
membership fees, respectively.
According to the Charter, the goals of the EDC are:

• promotion of economic cooperation in the OSCE region and economic

development of OSCE member states;
• creation of optimal conditions for dialogue between political and business
circles;
• protecting the rights and legitimate interests of its members and providing
them with assistance for the purpose of promotion improving the efficiency
of activity.
The priority areas of activity of the EDC are defined as: legislation, banking and
financial spheres, energy, ecology and health care, information and
communications, business security.
Duties of the EDC are:

• facilitating the adoption of legislative acts and international agreements

that meet the interests of enterprises, participation in the development of
drafts of relevant acts and agreements;
• representation of the interests of enterprises in the OSCE, government
bodies, international organizations, participation in sessions, forums and
other events held by them;
• cooperation with governmental, state, commercial and other institutions
and organizations at the international and regional levels;
• helping to ensure optimal conditions for establishing personal contacts,
holding business meetings and effective exchange of information between
representatives of business circles;
• assistance to its members in the consolidation of resources for the
implementation of large economic projects;
• organization of conferences, symposia, seminars on current problems of
entrepreneurial activity and implementation of information and publishing
activity
 The fundamental difference of the EDC from other numerous international
organizations of public non-governmental structures operating in the OSCE region is
that it unites direct market participants.
Pacific Economic Council (PEC). The Pacific Economic Council was founded
in 1967 by leading businessmen of the Pacific region.
The main goal is to promote the development of trade and investment through
open markets. PEC has more than 1,000 corporate members who are part of 17
membership committees located in various countries of the region (Australia, Hong
Kong, Canada, China, Colombia, Malaysia, Mexico, New Zealand, Peru, Russia,
Republic of Korea, SILA, Taiwan, Fiji, Philippines, Chile, Japan). Council members
are representatives of various branches of economic activity: agriculture and fishing;
airlines and aircraft construction; automotive industry; Banking; accounting; rent;
telecommunications; shipbuilding; advertising; universities and research institutions,
etc.
The organizational structure:
1. International President;
2. International treasurer;
3. International Secretariat;
4. Member committees (there are only 17 of them, each headed by the general
director).
The main function of PEC is to establish a constructive partnership between
business circles and government officials. PEC provides consultations to governments,
develops recommendations for them on current economic problems. Another function
is to assist individual members of the organization in accessing Pacific markets by
conducting informal meetings with potential partners.
PEC annually convenes the International General Meeting, which is attended by
about 800 leading businessmen, ministers and heads of state.
PEC has observer status in the Asia-Pacific Economic Cooperation (APEC),
where it acts as a "think tank". PEC also closely cooperates closely with the World
Trade Organization (WTO) and the Pacific Economic Cooperation Council (PEC).
Council for Pacific Economic Cooperation (CPEC)
The Pacific Economic Cooperation Council was created in 1980 on the
initiative of Australia and Japan. It unites business representatives, government
officials and research centers in the field of economics from 22 countries.
 For goals the organization has to determine ways of mobilizing funds for
development, expansion of business opportunities.
The association organizes conferences and forums for the exchange of
information on current economic problems, prepares analytical reviews, conducts
research on current economic problems, develops and implements educational
programs.
International Association of Economic Sciences. The International Association
of Economic Sciences is a union of national associations of economists, created in
1950. on the initiative of UNESCO. The purpose of the organization is to spread
economic knowledge, expand personal contacts and improve mutual understanding
between scientists of different countries through the organization of scientific
conferences and congresses, conducting joint or parallel research. The charter provides
only collective membership of national scientific associations or committees, and
private individuals can participate in the work of conferences.
The governing bodies of the organization are the council and the executive
committee. The council consists of representatives of national associations, with a
three-year term of president elected, and determines the general policy of the
organization. The executive committee (president, vice-president, treasurer, nine board
members) manages the organization between sessions and holds executive committee
meetings annually. To prepare conferences and develop programs, the executive
committee creates committees with three to five specialists. The secretariat is located
in Paris. The organization has consultative status with the UN ECOSOR (register),
UNESCO (category B).
International Cooperative Alliance (ICA). The International Cooperative
Alliance (ICA) was founded in 1895 in London by representatives of the
cooperative movement of 14 countries: Australia, Austria-Hungary, Argentina,
Belgium, Great Britainnia, Denmark, India, Italy, the Netherlands, Russia, Serbia, the
USA, France and Switzerland. The initiators of the creation of the alliance were
supporters of the so-called Christian socialism in the cooperative movement - Great
Britain and France, who considered cooperation as a means of establishing social
peace.
Modern goals, declared by the charter, are to promote the development of the
company operations in all countries; promotion of the principles and methods of the
cooperative movement, protection and representation of its interests; establishment and
development of mutual contacts, cooperation between cooperatives of different
countries. The alliance includes almost 170 national and 7 international cooperative
organizations.
 The main forms of the alliance's activity are the organization of congresses,
holding meetings, seminars, participation in the activities of the UN and its specialized
institutions, events of intergovernmental organizations.
The governing bodies of the IKA are the congress, the central committee, and the
executive committee. The Congress, which convenes once every four years, defines
policy and develops a program of activities. The Central Committee serves as the
representative governing body between congresses, elects the president, two vice-
presidents, members of the executive committee and appoints the director.The
executive committee manages the activities of the alliance between meetings of the
central committee. The current work is managed by the secretariat. The headquarters
of МКА is located in London.
The organization has consultative status with the UN ECOSOR, UNESCO, ILO,
UN Children's Fund, UNIDO, IAEA, UNCTAD.
International Olympic Committee (IOC). International Olympic Committee is
the highest coordinating and governing body of the modern Olympic movement. It
was created on June 23, 1894 at the International Congress convened in Paris to
discuss the current problems of physical education and sports at the initiative of the
French public figure and teacher, the founder of the modern Olympic movement, P.
de Coubertin. When the IOC was created in 1894, it included representatives of 12
states, which began work on the organization of National Olympic Committees
(NOCs) in their countries.
The charter document of the IOC is the Charter of the Olympic Games.
For any person or organization belonging to the Olympic movement in any
capacity, the Olympic Charter is a binding document. Decisions of the IOC based on
the provisions of the Olympic Charter are final, and any dispute concerning their
implementation or interpretation may be resolved exclusively by the IOC Executive
Committee and, in some cases, by the Court of Arbitration for Sport (CAS).
The headquarters of the Committee is located in Lausanne (Switzerland).
The official languages of the IOC are French and English. In addition,
simultaneous translation into German, Spanish, Russian and Arabic must be provided
at all sessions of the IOC. In the event of discrepancies between the French and English
texts of the Olympic Charter and other IOC documents, the French text shall prevail,
unless otherwise specified in writing.
The role of the IOC is to manage the development of the Olympic movement in
accordance with the provisions of the Olympic Charter. For this purpose, the IOC
performs the following functions:
 • encourages coordination, organization and development of sports and sports
competitions;
• in cooperation with international and sports organizations, provides support
and implementation of measures aimed at strengthening the unity of the
Olympic movement;
• cooperates with competent public, private and state organizations in order to
direct sports to the service of humanity;
• ensures the regular holding of the Olympic Games;
• participates in activities aimed at strengthening peace, protecting the rights
of members of the Olympic movement, fighting against any forms of
discrimination;
• actively supports the participation of women in sports at all levels and in all
structures, especially in the executive bodies of national and international
sports organizations, thus contributing to the observance of the principle of
tender equality;
• promotes and encourages compliance with sports ethics;
• directs efforts to ensure that the spirit of fair play prevails on sports grounds;
• controls the fight against doping in sports;
• takes measures to create safe working conditions for athletes;
• opposes any political and commercial abuse in sports;
• supports sports organizations and public management bodies in their
activities to ensure the social and professional future of athletes;
• supports the development of mass sports;
• ensures that the Olympic Games are held in conditions of environmental
protection;
• promotes the work of the International Olympic Academy (IOA).
At the initiative of representatives of socialist countries, the IOC has repeatedly
considered the general problems of international sports relations, the democratization
of the Olympic movement, and opposed political and racial discrimination in sports.
Thus, in 1968, the IOC gave the right to sports organizations of the GDR and the DPRK
to send independent national teams to the Olympic Games; prevented the South African
delegation from participating in the 1964 and 1968 Olympic Games and refused to
recognize the NOC of this country in 1970 (in connection with the apartheid policy).
In 1967, the IOC, on the proposal of the NOC of the USSR, adopted an appeal to
athletes of all countries to act in defense of peace.
Until 1930, the IOC periodically convened Olympic congresses to discuss the
problems of the Olympic movement (nine congresses were held). Subsequently, for 43
years, the Committee did not conduct them, seeking to preserve the monopoly
leadership of the Olympic movement. Under the influence of the progressive forces of
the international sports movement, in 1973 the tenth Olympic Congress was held in
Bulgaria with the participation of IOC members, NOC delegates and international
sports federations. The Congress adopted an appeal to the sportsmen to expand contacts
for the purpose of strengthening peace, spoke in favor of the active participation of the
NOC and international federations in solving the problems of world sports, and
identified the main ways of improving the Olympic movement.
By retaining all rights to the organization, marketing, radio and television
broadcasting of the Olympic Games, the IOC ensures the integrity and consistency of
this unique global event.
The main income of the Olympic movement comes from the sale of rights to
broadcast the Olympic Games, which are bought by radio and television networks.
However, the movement also receives significant funds through the worldwide
sponsorship program of Olympic partners, which includes multinational companies.
 4.5. Organizations for regulation in the social sphere
Key concepts: specificity of regulation in the social sphere; International Labor
Organization (ILO); International Labor Code; ILO conventions and
recommendations; International Labor Conference; United Nations Educational,
Scientific and Cultural Organization (UNESCO); UNESCO program; World Tourism
Organization (WTO).
This group includes quite a large number of organizations that have a clearly
defined social orientation of their activities. These are the International Labor
Organization (ILO), the United Nations Educational, Scientific and Cultural
Organization (UNESCO), the World Health Organization (WHO), the United Nations
Population Fund (UNFPA), the United Nations Center for Population points (Habitat),
the United Nations Children's Fund (UNICEF), the Development Fund for Women
(UNIFEM), the World Tourism Organization (WTO), etc.
Most of the organizations of this group belong to the UN system. Let's consider
the most famous and influential organizations.

International Labor Organization (ILO). The ILO was formed in 1919 as an

autonomous organization within the League of Nations; in 1946, it became a
specialized institution of the UN. It includes 170 member countries, including Ukraine.
The headquarters is located in Geneva. A feature of the ILO that distinguishes it from
other international organizations is that the representation of each member country
consists of three social strata: government officials, entrepreneurs, and workers.
The main goal of the ILO is to promote the establishment of social justice in the
field of labor, protect the interests of workers on the basis of social partnership, and
improve working conditions.
After World War II, the main goals and principles of the ILO were confirmed
and expanded in the Philadelphia Declaration, which emphasized broad cooperation
with developing countries.
In 1946, the ILO became the first specialized institution in the UN system. In
1969, in connection with the 50th anniversary of the ILO, the Nobel Peace Prize was
awarded.
The ILO has four main strategic goals:
♦ development and implementation of norms and principles in the field of work;
♦ creation of wider opportunities for women and men to ensure decent
employment;
♦ expansion of coverage and improvement of effectiveness of social protection
for all;
♦ strengthening the tripartite structure and supporting social dialogue.
Functions: regulatory activity; technical
 cooperation; preparation of research and publications.
Normative activity consists in the development of international Conventions and
recommendations on the regulation of working conditions, employment, profits, social
security and basic human rights and labor management. The development of standards
is the main activity of the ILO. The member state is obliged to regularly send to the
Organization reports on the implementation of its Conventions, as well as information
on the compliance of national legislation with ILO standards. Among the conventions,
the issues of wages, length of working day, social insurance, paid vacations,
employment services, labor inspection occupy an important place. ILO conventions
and recommendations make up the "International Labor Code", which is the basis for
regulating labor relations in member countries.
Conventions and recommendations of the ILO are acts of international legal
labor regulation. They are not international treaties and do not require ratification.
Conventions and recommendations represent an appeal to states with the desire to
include relevant norms in national legislation.
Conventions and recommendations of the ILO cover almost all issues in the field
of labor. These include some basic human rights, including freedom of association, the
right to organize, labor relations, employment policy, working conditions, social
security, occupational safety and health, employment and migrant rights.
The situation of migrants in general is one of the central problems that is in the
sphere of attention of the ILO. Even at the first session of the ILO General Conference
in 1919, the recommendation "On reciprocity in the sphere of relations with foreign
workers" was adopted. The rights of migrants are ensured by Convention No. 97 "On
Migrant Workers". According to this document, the member states of the ILO
undertake to act without discrimination based on nationality, race, religion or gender
and to provide no less favorable conditions for wages, working hours, and social
security than for their own citizens. Migrants must be provided with housing, have the
right to participate in collective agreements. Services provided to migrants by state
employment services are provided free of charge.
Convention No. 43 (adopted in 1975) emphasizes that ILO member states are
obliged to develop and implement a national policy aimed at promoting and
guaranteeing equality of opportunity in relation to work and employment, social
security for persons who are on legal grounds , both to migrants and to their family
members.
Technical cooperation consists in the development and implementation of
projects on various aspects of labor relations in member countries. The most relevant
project topics are: personnel training; employment and development; workforce
planning; labor market; working conditions and production environment; social
welfare; labor relations; labor education; rights of migrant workers; ILO and the
international trade union movement.
For the implementation of technical projects, the ILO sends experts and missions
to the respective countries.
The research activity of the ILO is manifested in the preparation of reviews of
the situation in the field of labor in individual countries and regions, in the analysis of
sectoral and regional labor problems; in the assessment of socio-economic
development trends. The ILO publishes reviews, issues bulletins on issues of labor
relations.
The organizational structure:
♦ International labor conference;
♦ Administrative Council;
♦ International Labor Office (Secretariat). The International Labor Conference
is the highest body. Each one the country is represented at its sessions by four
delegates: two - from the government, one - from entrepreneurs, one - from workers.
The conference develops conventions and recommendations on labor issues; in order
of control, considers the reports of states on the non-application of ratified conventions;
approves the organization's program and budget.
Within the tripartite structure of representatives, employers and workers are
social partners; The ILO promotes social dialogue between trade unions and employers
in the development of national policy on social and economic issues.
Every two years, the Conference adopts a two-year program of activities and a
budget of the ILO, which is financed by member states. The conference is also an
international forum where labor and social issues of global importance are discussed.
The administrative board is the executive body. It consists of 56 members (28 -
representatives of governments, 14 each - from entrepreneurs and workers). Out of the
total number, 10 places in the government group are reserved for the ten most
developed countries (including Russia).
The International Labor Office prepares documentation, collects and
disseminates information, conducts research, and organizes meetings.
The ILO secretariat, research center and publishing house are located in Geneva.
Administration and management are carried out through regional, regional and branch
offices, which exist in more than 40 countries. The Administrative Council and the
Bureau are assisted by tripartite committees covering the major branches of industry.
The Council and the Bureau also use the services of expert committees on the
following issues:
♦ professional training;
♦ management development;
♦ safety equipment and labor protection;
 ♦ labor relations;
♦ employee training
The member states of the ILO periodically hold regional meetings to study issues
related to the regulation of labor relations in certain regions.

United Nations Educational, Scientific and Cultural Organization -

UNESCO. UNESCO was founded in 1946. It includes 183 member states, including
Ukraine. In the mid-1980s, the United States and Great Britain left the organization,
accusing it of "excessive politicization." The headquarters is located in Paris.
The main goal of UNESCO is to contribute to the strengthening of peace and
security through the development of international cooperation in the field of education,
science and culture. Goals of the organization: to deepen understanding with the help
of mass media; to develop public education and spread culture; to preserve, deepen and
spread knowledge.
Functions of UNESCO: develop and implement social programs; to organize
world conferences on the problems of education, science and culture; protect historical
and cultural monuments; to make publications on issues of education and culture.
The development and implementation of programs is one of the main forms of
UNESCO's activity. The most important programs:
♦ illiteracy elimination program;
♦ technical assistance program;
♦ program "Science, technology and society";
♦ the program "Man and the Biosphere" (Map of Viozrpeghe - MAV);
♦ general program of information;
♦ international communication development program;
♦ program "Primary education for all";
♦ UNESCO translation program (translation of the most famous works of world
literature), etc.
UNESCO attaches great importance to the dissemination of information on
issues of education, science and culture. In 1978, the Declaration on the contribution
of the mass media to the strengthening of peace and the development of human rights
was adopted. A large group of developing countries and socialist countries accused
Western countries of "information imperialism and colonialism" and started a
campaign for the formation of a "new international information order". This was the
reason for the withdrawal of the United States and Great Britain from UNESCO; this
act had a negative impact on the activities of the organization, as it lost the members
who gave the largest contributions to its budget.
UNESCO's main areas of activity:
♦ upbringing;
 ♦ science;
♦ culture;
♦ communications;
♦ social sciences and development;
♦ peace and human rights.
Considerable work is carried out on the protection of historical and cultural
monuments; More than 300 monuments of world importance have been protected by
UNESCO, including "Sofia of Kyiv". Every two years, UNESCO compiles a list of
commemorative dates dedicated to outstanding persons and historical events in the
field of education, science, culture and communications.
Organizational structure of UNESCO:
♦ General Conference;
♦ Executive Council;
♦ National commissions;
♦ Regional offices;
♦ Secretariat.
The General Conference is the highest body of UNESCO, consisting of
representatives of all member countries with one vote each. The conference determines
the goals and program of UNESCO's activities, convenes intergovernmental
conferences on issues of education, natural sciences and humanities, dissemination of
general knowledge, elects the director general.
The Executive Council consists of 51 members who are elected according to the
principle of geographical justice (4 of them are for the countries of Eastern Europe).
Members of the Council should be persons competent in the field of art, literature,
science, education and dissemination of knowledge, each authoritative in their field.
The Executive Council prepares the agenda of the General Conference, develops the
budget, and implements the decisions adopted by the Conference.
The National Commissions coordinate the work of UNESCO with the relevant
governmental bodies of the member countries. They advise governments, inform the
public about UNESCO programs.
Regional offices (about 50 of them) maintain UNESCO's connection with the
regions to which member states are branched.
The secretariat carries out administrative work. It consists of departments:
education, natural sciences, social and humanitarian sciences, culture, communication,
information and informatics. The Secretariat is headed by the Director General.
International commissions on education, science and culture are subordinate to
UNESCO. Including:
♦ International commission on the history of scientific and cultural development
of mankind;
 ♦ International Oceanographic Commission;
♦ Commission on culture and development;
♦ International Commission on Education in the 21st Century.
The UNESCO Institute for Education operates in Hamburg.

Every month, the magazine "UNESCO Courier" is published, which contains, in

particular, a lot of interesting data about the culture of the peoples of the world.

World Tourism Organization - WTO. The World Tourism Organization was

founded in 1975; she became the heir to the "Official Tourism Promotion
Organizations" formed back in 1925. Has a special status in systems! UN. The
inclusion of WTO in the group of organizations of the social sphere is explained by the
fact that tourism is a form of people's recreation. The organization includes 130 active
members, among them there is no Ukraina yet. The headquarters is located in the
capital of Spain - Madrid.
The main goal of the WTO is to develop international tourism as a means of
promoting economic development, strengthening peace and understanding between
peoples. Special attention is paid to the development of tourism in developing
countries.
Functions of WTO:
♦ provision of consultants to member countries in the field of tourism (drafting
of plans and projects; development of technical and economic justifications; transfer
of technologies);
♦ cooperation between countries in the field of environmental protection;
♦ promotion of improving the quality of services in the field of tourism;
♦ personnel training for tourism business;
♦ information activities (collection, analysis and dissemination of information
on the development of tourism in countries and regions).
Organizational structure of the WTO:
♦ General Assembly;
♦ Executive Council;
♦ Secretariat.
The General Assembly is the highest body of the WTO, consisting of
representatives of full members of organizations. Discusses the most important
problems of the development of world tourism, adopts relevant resolutions, adopts
declarations, which contain the main ones! principles of tourist activity.
The Executive Board consists of 25 members. It analyzes the work of the WTO,
develops proposals for the General Assembly. The Council includes auxiliary bodies:
Technical Committee on Programs and Coordination; Budget and Finance Committee;
Promotion Committee; Statistical Committee; Committee of Experts on Security and
Protection of Tourists.
The Secretariat performs administrative functions. It is headed by the Secretary
General, who manages the work on the implementation of resolutions and decisions
adopted by the Assembly and the Council, submits reports and reports to the Council
on the activities of the WTO, draft programs and the budget.

QUESTIONS FOR SELF-CONTROL

1.Who can be a member of international non-governmental organizations?

Reveal the peculiarities of collective and individual membership in international non-
governmental organizations.
2.Define an international non-governmental organization. What is the difference
between intergovernmental and non-governmental international organizations?
3. What types of international non-governmental organizations do you know?
Give examples.
4. Reveal the peculiarities of budget formation of international non-
governmental organizations.
5. What is the nature of the decisions of international non-governmental
organizations? Discover their features.