International agencies

An international organization, also known as an intergovernmental organization (IGO) or an international institution, is an organization that is established by a treaty or other type of instrument governed by international law that possesses its own legal personality, such as the United Nations, the Council of Europe, African Union, Mercosur and BRICS. International organizations are composed of primarily member states, but may also include other entities, such as other international organizations, firms, and nongovernmental organizations. Additionally, entities may hold observer status. Within the international relations literature, international organizations facilitate cooperation between states by reducing transaction costs, providing information, making commitments more credible, establishing focal points for coordination, facilitating the principle of reciprocity, extending the shadow of the future, and enabling interlinkages of issues, which raises the cost of noncompliance. States may comply with the decisions of international organizations, even when they do not want to, for rational cost-benefit calculations (to reap concrete rewards of future cooperation and avoid punishment) and normative reasons (social learning and socialization). International organizations vary in terms of: inclusive or exclusive membership; broad or narrow scope; equal or unequal control by members; precision and flexibility of rules; hard or soft obligations; and delegation of power to the international organization. Examples of international organizations include UN General Assembly, World Trade Organization, African Development Bank, UN Economic and Social Council, UN Security Council, Asian Development Bank, International Bank for Reconstruction and Development, International Monetary Fund, International Finance Corporation, Inter-American Development Bank, and United Nations Environment Programme.