Saturday, February 20, 2010

A cartel is a formal (explicit) agreement among competing firms. It is a formal organization of producers that agree to coordinate prices, marketing and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products. Cartel members may agree on such matters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common sales agencies, and the division of profits or combination of these. The aim of such collusion is to increase individual members' profits by reducing competition. Competition laws forbid cartels. Identifying and breaking up cartels is an important part of the competition policy in most countries, although proving the existence of a cartel is rarely easy, as firms are usually not so careless as to put agreements to collude on paper.Several economic studies and legal decisions of antitrust authorities have found that the median price increase achieved by cartels in the last 200 years is around 25%. Private international cartels (those with participants from two or more nations) had an average price increase of 28%, whereas domestic cartels averaged 18%. Fewer than 10% of all cartels in the sample failed to raise market prices.

The term cartel came up for alliances of enterprises round about 1880 in Germany The name was imported into the Anglosphere during the 1930s. Before this, other, less precise terms were common to denominate cartels, for instance: association, combination, combine or pool.In the 1940s the name cartel got an Anti-German bias, being the economic system of the enemy. Cartels were the structure the American Anti-Trust-campaign struggled to ban globally.

Private vs public cartel

A distinction is sometimes drawn between public and private cartels, though there is no evidence that Public Cartels are less harmful to the general good, and being Government backed they are much more effective and hence potentially harmful. In the case of public cartels, the government may establish and enforce the rules relating to prices, output and other such matters. Export cartels and shipping conferences are examples of public cartels, as well as labor unions. In many countries, depression cartels have been permitted in industries deemed to be requiring price and production stability and/or to permit rationalization of industry structure and excess capacity. In Japan for example, such arrangements have been permitted in the steel, aluminum smelting, ship building and various chemical industries. Public cartels were also permitted in the United States during the Great Depression in the 1930s and continued to exist for some time after World War II in industries such as coal mining and oil production. Cartels have also played an extensive role in the German economy during the inter-war period. Internationalcommodity agreements covering products such as coffee, sugar, tin and more recently oil (OPEC) are examples of international cartels with publicly entailed agreements between different national governments. Crisis cartels have also been organized by governments for various industries or products in different countries in order to fix prices and ration production and distribution in periods of acute shortages.

In contrast, private cartels entail an agreement on terms and conditions from which the members derive mutual advantage but that are not known or likely to be detected by outside parties. Private cartels in most jurisdictions are viewed as being illegal and in violation of antitrust laws.


Sunday, January 17, 2010

The international Law(Organs of UN)

Trusteeship

Status
The Trusteeship Council suspended operation on 1 November 1994, with the independence of Palau, the last remaining United Nations trust territory, on 1 October 1994. By a resolution adopted on 25 May 1994, the Council amended its rules of procedure to drop the obligation to meet annually and agreed to meet as occasion required -- by its decision or the decision of its President, or at the request of a majority of its members or the General Assembly or the Security Council.
Background
In setting up an International Trusteeship System, the Charter established the Trusteeship Council as one of the main organs of the United Nations and assigned to it the task of supervising the administration of Trust Territories placed under the Trusteeship System. Major goals of the System were to promote the advancement of the inhabitants of Trust Territories and their progressive development towards self-government or independence. The Trusteeship Council is made up of the five permanent members of the Security Council --China, France, Russian Federation, United Kingdom and United States. The aims of the Trusteeship System have been fulfilled to such an extent that all Trust Territories have attained self-government or independence, either as separate States or by joining neighboring independent countries.
Functions and powers
Under the Charter, the Trusteeship Council is authorized to examine and discuss reports from the Administering Authority on the political, economic, social and educational advancement of the peoples of Trust Territories and, in consultation with the Administering Authority, to examine petitions from and undertake periodic and other special missions to Trust Territories.


The Secretariat

The Secretariat — an international staff working in duty stations around the world — carries out the diverse day-to-day work of the Organization. It services the other principal organs of the United Nations and administers the programmes and policies laid down by them. At its head is the Secretary-General, who is appointed by the General Assembly on the recommendation of the Security Council for a five-year, renewable term.
The duties carried out by the Secretariat are as varied as the problems dealt with by the United Nations. These range from administering peacekeeping operations to mediating international disputes, from surveying economic and social trends and problems to preparing studies on human rights and sustainable development. Secretariat staff also inform the world's communications media about the work of the United Nations; organize international conferences on issues of worldwide concern; and interpret speeches and translate documents into the Organization's official languages.
As of 30 June 2009, the Secretariat had some 40,000 staff members around the world1.
As international civil servants, staff members and the Secretary-General answer to the United Nations alone for their activities, and take an oath not to seek or receive instructions from any Government or outside authority. Under the Charter, each Member State undertakes to respect the exclusively international character of the responsibilities of the Secretary-General and the staff and to refrain from seeking to influence them improperly in the discharge of their duties.
The United Nations, while headquartered in New York, maintains a significant presence in Addis Ababa, Bangkok, Beirut, Geneva, Nairobi, Santiago and Vienna, and has offices all over the world.

Tuesday, January 12, 2010

How United Nation Came Into existence

The name "United Nations", coined by United States President Franklin D. Roosevelt, was first used in the "Declaration by United Nations" of 1 January 1942, during the Second World War, when representatives of 26 nations pledged their Governments to continue fighting together against the Axis Powers.
States first established international organizations to cooperate on specific matters. The International Telecommunication Union was founded in 1865 as the International Telegraph Union, and the Universal Postal Union was established in 1874. Both are now United Nations specialized agencies.
In 1899, the International Peace Conference was held in The Hague to elaborate instruments for settling crises peacefully, preventing wars and codifying rules of warfare. It adopted the Convention for the Pacific Settlement of International Disputes and established the Permanent Court of Arbitration, which began work in 1902.
The forerunner of the United Nations was the League of Nations, an organization conceived in similar circumstances during the First World War, and established in 1919 under the Treaty of Versailles "to promote international cooperation and to achieve peace and security." The International Labour Organization was also created under the Treaty of Versailles as an affiliated agency of the League. The League of Nations ceased its activities after failing to prevent the Second World War.
In 1945, representatives of 50 countries met in San Francisco at the United Nations Conference on International Organization to draw up the United Nations Charter. Those delegates deliberated on the basis of proposals worked out by the representatives of China, the Soviet Union, the United Kingdom and the United States at Dumbarton Oaks, United States in August-October 1944. The Charter was signed on 26 June 1945 by the representatives of the 50 countries. Poland, which was not represented at the Conference, signed it later and became one of the original 51 Member States.
The United Nations officially came into existence on 24 October 1945, when the Charter had been ratified by China, France, the Soviet Union, the United Kingdom, and the United States and by a majority of other signatories. United Nations Day is celebrated on 24 October each year.

The UN system is often referred to as a "family" of organizations. The charter of the UN, signed in San Francisco on 26 June 1945, defined six main organs of the new world body, each with specific tasks and functions. However, because it was impossible to foresee all the demands that might be made on the organization, provision was made for extending its capacities as the need arose. Thus, three of the main organs are specifically empowered to establish "such subsidiary organs" as may be considered necessary for the performance of their functions. In addition, Article 57 of the charter provides that the various specialized agencies established by intergovernmental agreement and having international responsibilities in economic, social, cultural, educational, health, and related fields "shall be brought into relationship" with the UN. Since the signing of the charter, the UN has established numerous subsidiary organs and has entered into relationship with various independent organizations. Reproduced opposite is a chart showing the various organs and bodies within the UN system.
For assistance in interpreting the chart, a brief survey of the UN's main organs, the different categories of subsidiary organs, and the related agencies is given below. A detailed description of the functioning of each of the main organs and an account of the work of selected subsidiary organs are contained in later chapters of the first section of this volume. The structure and work of the UN specialized and technical agencies are described in the second section.