UN, an NGO is a private, not-for-profit organization which is independent of government control and is not merely an opposition political party. The rapid development of the non-governmental sector occurred in Western countries as a result of the restructuring of the welfare state. Globalization of that process occurred after the fall of the communist system, and was an important part of the Washington Consensus. Twentieth-century globalization increased the importance of NGOs. International treaties and organizations, such as the World Trade Organization, focused on capitalist interests. To counterbalance this trend, NGOs emphasize humanitarian issues, development aid, and sustainable development. An example is the World Social Forum, a rival convention of the World Economic Forum held each January in Davos, Switzerland. The fifth World Social Forum, in Porto Alegre, Brazil in January 2005, was attended by representatives of over 1,000 NGOs. The 1992 Earth Summit in Rio de Janeiro, attended by about 2,400 representatives, was the first to demonstrate the power of international NGOs in environmental issues and sustainable development. Transnational NGO networking has become extensive. Legal status Although NGOs are subject to national laws and practices, four main groups may be found worldwide: Unincorporated and voluntary association Trusts, charities, and foundations Not-for-profit companies and co-operatives Entities formed (or registered) under special NGO or nonprofit laws The Council of Europe drafted the European Convention on the Recognition of the Legal Personality of International Non-Governmental Organisations in Strasbourg in 1986, creating a common legal basis for European NGOs. Article 11 of the European Convention on Human Rights protects the right to associate, which is fundamental for NGOs. Economic theory The question whether a public project should be owned by an NGO or by the government has been studied in economics using the tools of the incomplete contracting theory. According to this theory, not every detail of a relationship between decision makers can be contractually specified. Hence, in the future the parties will bargain with each other to adapt their relationship to changing circumstances. Ownership matters because it determines the parties’ willingness to make non-contractible investments. In the context of private firms, Hart (1995) has shown that the party with the more important investment task should be owner. Yet, Besley and Ghatak (2001) have argued that in the context of public projects the investment technology does not matter. Specifically, even when the government is the key investor, ownership by an NGO is optimal if