Message-ID: <Pine.3.89.9602061359.A24018-0100000@sparc> Date: Tue, 6 Feb 1996 13:14:39 -0400 From: Mike Gurstein <mailto:mgurst@SPARC.UCCB.NS.CA> Subject: NGO group trying to save UN from bankruptcy (fwd) To: Multiple recipients of list DEVEL-L <mailto:DEVEL-L@AMERICAN.EDU>
---------- Forwarded message ---------- Date: Tue, 6 Feb 1996 10:13:52 -0500 From: Victoria Holt <mailto:tholt@local.clw.org> To: mailto:UNReform@chatsubo.com Subject: NGO group trying to save UN from bankruptcyMike --
Thought this attached article would be of interest. Regarding the current financial crisis at the United Nations, Joseph Connor, Under Secretary General for Admnistration and Management, gave a thorough press briefing on 23 January 1995 describing the situation. His office should have the transcript available. I have a copy of an unofficial record of his comments which I could fax to people, stating the figures. Among his points, as stated in the UN record, Connor said:
-- In 1995, the percentage payment by all Member States had dropped to 92.7 percent from about 100 percent, and the US rate of payment had fallen to 47% of its dues. In effect the US had paid as if its assessment rate was not 25% but 12%. A similar situation applied to peacekeeping. In contrast to 1993 & 1994 when the UN received about 90% of all peacekeeping dues, the amount received in 1995 had dropped to 86%. The US portion had paid its 1995 peacekeeping dues as if it had been assessed at 14%, instead of 31%.
-- The status of contributions at the end of 1995, Mr. Connor said, showed that overdue amounts continue to rise. As of 31 December 1995, Member States' upaid dues owed totalled almost $2.3 billion, compared with $1.8 billion at the end of 1994. Of that sum, $564 million was related to the regular budget, compared to $480 million a year earlier, and $1.7 billion was related to peacekeeping missions, compared to $1.3 billion at the end of the previous year. More than $1.2 billion was owed by the US: $414.4 million for the regular budget and $816.4 million for peacekeeping.
-- By 31 December 1995, only 94 Member States had paid up regular budget dues, with 22 paying nothing.
-- According to the Under Secretary General, the current status of unpaid contributions was that total unpaid dues had reached $3.3 billion: $1.6 billion for the regular budget, $1.7 billion for peacekeeping missions and $4.9 million for the International Tribunals for the former Yugoslavia and Rwanda. "The cash situation at the end of 1995 is now precarious, heading for the brink," he stressed.
-- After exhausting the Working Capital Fund and the Special Account, he went on, it had become necessary to borrow continually from peacekeeping accounts to finance the regular budget from early August to the end of 1995. As of 31 December, $176 million had been borrowed that way. After the borrowing for the regular budget, the cash balance of peacekeeping accounts totatlled $744 million as of that day. The balance had accrued as it related to future mandates and cecause the UN had not paid the $1 billion it owed to about 80 Member States for troop and equipment.
(that's part of four pages!) >
>
>Copyright
>
>INTER PRESS SERVICE INTERNATIONAL NEWS
>
>THURSDAY FEBRUARY 1, 1996
>
>
>UNITED NATIONS: GRASSROOTS COALITION CAMPAIGNS TO SAVE U.N.
>
>
> UNITED NATIONS, Feb. 1 (IPS) -- A coalition of more than 30
>international non-governmental organizations (NGOs) is urging the
>United Nations to hold an special emergency session of the General
>Assembly to save the world body from bankruptcy.
>
> Jim Paul, of the New York-based Global Policy Forum, told IPS
>that there is a need for urgent action to resolve "the deepening
>crisis."
>
> "If we want to prevent the shutdown of the United Nations by
>April, we need to act now," he said.
>
> The speculation here is that the United Nations may not only
>furlough some of its staff but also temporarily close down
>operations by March or April if it runs out of cash reserves.
>
> Paul said the NGO coalition has launched a global campaign
>urging political and spiritual leaders, parliamentarians, and
>grassroots organizations to press their respective governments to
>pay their dues and keep the world body afloat.
>
> "It is time for us to throw some cold water in the face of the
>international community," Paul said.
>
> The NGO coalition includes Earth Action, the World Federalist
>Movement, the Coalition for a Strong U.N., World Council of
>Churches and Peace Action.
>
> Secretary-General Boutros Boutros-Ghali has already urged U.N.
>member states to call a special session of the General Assembly to
>discuss the crisis and seek both short- and long-term solutions to
>the ongoing cash crunch.
>
> The proposal is under consideration by a 185-member Working
>Group on Finances currently holding closed-door sessions here.
>
> Paul said the shortage of cash is not only crippling the world
>body but also keeping it from carrying out its essential tasks.
>
> "Diplomatic initiatives for peace cannot proceed, human rights
>monitors cannot deploy and emergency humanitarian efforts are
>blocked," he pointed out.
>
> "We will not accept the ruin of the organization that embodies
>our hope for the common future of humanity," he added.
>
> Criticizing the pile-up of U.S. debt, Paul said: "The world's
>richest country, host to U.N. headquarters, is pushing the United
>Nations to the brink of disaster."
>
> As the financially-ailing world body battles for survival,
>Boutros-Ghali is due to make a major policy statement Feb. 7
>spelling out rigid austerity measures and heavy cost-cutting to
>enable the world body to stay alive.
>
> The financial crisis has been caused by the non-payment of dues
>amounting to a hefty $3.3 billion. Of this, $1.6 billion was for
>the regular budget, $1.7 billion for peacekeeping and $4.9 million
>was for the International War Crimes Tribunals for the former
>Yugoslavia and Rwanda.
>
> The biggest single defaulter is the United States which owes the
>world body about $1.2 billion. At the same time, Washington is also
>the single biggest contributor to the world body paying about 25
>per cent both to the regular budget and the peacekeeping budget.
>
> "Cash receipts from the United States are very important to the
>Organization because of the level of assessment the U.S. bears,"
>Joseph Connor, Under-Secretary-General for Administration and
>Management said last month.
>
> But the U.S. is not the only member state in arrears, he said.
>As of December last year, only 94 of the 185 member states had paid
>up regular budget dues, with 22 paying nothing.
>
> Asked when the United Nations "would go over the brink," Connor
>said he was not prepared to answer that question at this time.
>
> "You die when you are not liquid, and that's our problem,"
>Connor said, "Cash flow is, in many respects, more important than
>any other aspect of financial management. You keep alive if you can
>keep the cash circulating," he added.
>
> The United Nations last year announced several cost-cutting
>measures, including a freeze on hiring, restrictions on travel and
>meetings, and the elimination of consultants.
>
> In December the General Assembly approved a $2.6 billion budget
>for 1996-1997. "For the first time, we had a budget cast in terms
>of zero nominal growth," Connor said.
>
> But the 185-member General Assembly has asked Boutros-Ghali to
>prepare a plan to achieve about $200 million in savings in
>1996-1997 in order to stay within the approved budget.
>
>
>
>
>DFax Reference 960205.039
>
Victoria K. Holt Director, Project on Peacekeeping & the United Nations Council for a Livable World Education Fund 110 Maryland Avenue, NE Suite 409 Washington, DC 20002 (202) 543-4100 fax: 543-6297 e-mail: mailto:tholt@clw.org web site: http://www.clw.org/pub/clw/un/unpeace.html