Ingadóttir, Thordis --- "Financing International Institutions" [2011] ELECD 521; in Klabbers, Jan; Wallendahl, Åsa (eds), "Research Handbook on the Law of International Organizations" (Edward Elgar Publishing, 2011)

Book Title: Research Handbook on the Law of International Organizations

Editor(s): Klabbers, Jan; Wallendahl, Åsa

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781847201355

Section: Chapter 5

Section Title: Financing International Institutions

Author(s): Ingadóttir, Thordis

Number of pages: 24

Extract:

5 Financing international institutions
Thordis Ingadóttir



INTRODUCTION

Financing of international institutions is a subject of vast dimensions. And the
thrusting issues are not about nickel and dime, and proper house-keeping.
What is ultimately at stake is independence and function of international orga-
nizations: to what extent do finances control the constitutional mandates of
international organizations? The battle is waged on two fronts: firstly, between
member states, often with different interests and agendas; and secondly,
between member states and organizations, the latter being independent entities
in the international arena, while not enjoying financial autonomy. While inter-
national organizations have transformed into active international actors, bene-
fiting from a generous functional approach, cheered by own institutions such
as the International Court of Justice (ICJ) and European Court of Justice
(ECJ), member states have used financing channels to hold tight control. No
agenda, whether relating to core mandate or not, whether enjoying over-
whelming support or not, can be implemented without proper funding.
Member states are still bestowed with the power of the purse, both as organi-
zations' ultimate budget authority, and as their principal providers. In an envi-
ronment of majority voting and few avenues of challenge and accountability,
financing has served as a major control mechanism by member states.
Indeed, the history of international organizations is marked by debate on
financing. During their early days, the debate on the budget was marked by
arguments whether international organizations should be mere conference
machines and consulting places or whether they should ...