Module V·Article I·~2 min read
The UN System and Its Specialized Agencies
International Organizations and Institutions
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Fundamentals of the UN System
The UN (United Nations) was founded in 1945 after World War II. 193 member states. Headquarters: New York, Geneva, Vienna, Nairobi.
Goals of the UN (Charter, 1945):
- Maintenance of international peace and security
- Development of friendly relations among nations
- Promotion of international cooperation in solving global problems
- Encouragement of respect for human rights
Main Bodies of the UN
Security Council
Composition: 15 members: 5 permanent (USA, Russia, China, United Kingdom, France) + 10 non-permanent.
Veto power: Any permanent member can block any decision. This leads to paralysis of the Council in the event of geopolitical contradictions between permanent members.
Powers: Only the UN Security Council is authorized to sanction military operations and impose binding sanctions (Article 41). UN sanctions against Iran, North Korea, Libya are examples.
For business: UN sanctions are binding on all member states. This is the minimum level of sanctions compliance; national sanctions (USA, EU) are often broader.
General Assembly
192 members, principle of "one country — one vote." In most cases, decisions are recommendatory (resolutions). They do not have binding legal force.
Global agenda: Adoption of the Sustainable Development Goals (SDGs) in 2015 is a key outcome of the General Assembly's work.
Specialized UN Agencies Important for Business
ILO (International Labour Organization)
Founded in 1919. 187 member states.
ILO Conventions: International labor standards. States that have ratified a convention must align their national legislation accordingly.
Key conventions:
- No. 29 and No. 105: Prohibition of forced labor
- No. 87 and No. 98: Freedom of association and collective bargaining
- No. 138 and No. 182: Minimum age for employment, prohibition of the worst forms of child labor
For business: Supply chain due diligence increasingly requires compliance with ILO standards throughout the supply chain. EU Corporate Sustainability Due Diligence Directive (CSDDD) is a direct result.
WHO (World Health Organization)
Functions: Coordination of global health efforts, development of standards.
Significance for business:
- COVID-19 pandemic: WHO coordinated the global response (with limited success)
- Pharmaceutical industry: regulatory standards (GMP — Good Manufacturing Practice)
- Health emergency declarations: affect travel restrictions, trade
UNCTAD (United Nations Conference on Trade and Development)
Functions: Analysis of international trade and investment, support for developing countries.
Key publications: World Investment Report — annual analysis of global foreign direct investment (FDI).
UNCTAD and investment treaties: Led efforts to standardize Bilateral Investment Treaties (BIT).
UNIDO (UN Industrial Development Organization)
Promotion of industrial development, technology transfer, standardization.
UN Programs for Sustainable Development
UNDP (United Nations Development Programme): The largest UN development program. Operates in 170 countries. For business: partnerships with UNDP as a tool for Impact Investment and CSR.
UN Global Compact: Voluntary initiative uniting 15,000+ companies from 160 countries. Participants commit to following 10 principles in the areas of human rights, labor, environment, anti-corruption. Reporting: Communication on Progress.
SDGs (Sustainable Development Goals): 17 goals adopted in 2015, for the period up to 2030. Companies are increasingly positioning their activities in terms of SDGs in ESG reporting.
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