AS THE 50th anniversary of the UnitedNations (UN) culminated in lateOctober, the organization struggled toovercome its worst ever financial crisis.If the situation does not improve soon,the world body and its programmes cansuffer serious setbacks, senior UN Officials warn.
The VN has weathered financial difficulties in the past, but this year multiplc demands of increased operationsand programmes have hiked theexpenses, while income has nosedivedover the years.
By end August, only 64 memberstates - out of a total of 185 - hadpaid their total regular budget contributions. The total outstanding contributions is over us $3.7 billion. Thisincludes us $850 million earmarked forthe organization's regular budget. Therest, about us $2.9 billion slotted for theUN'S peacekeeping budget, skyrocketteddramatically in recent years, especiallyin its operation in former Yugoslavia -costing a mindblowing us $5 million aday.
On September 27, the New YorkTimes quoted the organization's highestranking financial officer as sa 'ying thatWorld bank loan was one of many ideasbeing explored "to lift from our shoulders the burden of debt".
Although the I JN has no capital base,and its rules do not allow borrowingcommercially or from external sources,the actually autonomous World Bank(wE) - technically a UN body - may beinterpreted as an acceptable source ofloans. "The crisis cannot be solvedunless we can borrow money," the NewYork Times quoted the uN SecretaryGeneral, Bonitos Boutros-Ghali. Butthe us opposes the idea, reiterating thatthe UN has no authority to borrow externally, and only sovereign governmentsborrowed from the we.
Whether the wB's own Board ofGovernors, where the its wields substantiai influence would take the same positions, remains to be seen. Ironically, theus currently owes the UN at least us $1.2billion in unpaid dues. It is the biggestdebtor partly because it is the biggestcontributor, representing 25 per cent ofthe LIN'S regular budget.
NGOS too have raised questionswhether the uN's independence andintegrity could be compromised if itbecomes indebted to the WB like the restof the developing world.
The UN Secretariat has recentlyimposed a series of restrictions for costslashes, including a freeze in recruitment at all levels, a ban on all new CODtracts, and cancellation of all officialtours. However, unless it receivesfinancial resources in the immec!future, more drastic steps would ha,be taken.
A high level working group onUN'S financial situation, appointethe General Assembly last year, tonised - in its recently published re- the need to review the assessnscales to apportion the organizati.expenses more fairly among merTstates as imminent.
Richard von Weizacker, forPresident of West Germany whochaired a group that studied the ifuture for two years, says that refornthe UN's bureaucracy would not cluthe organization's effectiveness as mas reforming the "will of the mem- the more important members".