US Has Good Cause to Seek Reductions in Contributions to UN

First Phase Digital

March 20, 2017 – At a time when the United Nations is seeking funds to address massive humanitarian crises in Yemen, South Sudan and Somalia, reports that the Trump administration is seeking to cut its funding to the world body by up to half are particularly unwelcome.

The United States is by far the biggest contributor to the UN system, contributing 22 percent to the regular budget and also 28 percent to the peacekeeping budget. That it is a permanent member of the Security Council and that the UN headquarters is hosted in New York City go some way towards the US getting its money’s worth (the economic benefit to New York City from the UN is some $3.3 billion per year).

In truth, the UN is divided into two classes: the veto-wielding permanent members of the Security Council, and all others, and it is the P5 who rule the roost at UN headquarters. The top jobs are divvied up among the five and they have the power to influence hiring and firing (witness last week’s ‘resignation’ of the secretary-general of ESCWA after angering Washington with a report that said Israeli treatment of Palestinians amounted to apartheid).

As researcher Cedric de Coning recently pointed out in a Twitter post, a fairer system of assessing dues would be for the permanent members of the Council to pay 10 percent each towards the regular budget, which would amount to about $1 billion each – a savings to the US of about $2 billion. Combined, the other four permanent members, Britain, France, China and Russia, pay less than 17%, with the UK and France paying some 6 percent, China, 3 percent and Russia less than two percent.

The UN could also make make life easier for itself and those it serves by imposing mandatory assessments to fund its aid programs, just as it does for the regular budget and the peacekeeping budget. Its dependence on voluntary contributions is not working and when crises emerge, as they constantly do, the UN is hamstrung by lack of money. But the UN also has to improve how it delivers aid and addresses crises. It can do this by continuing to focus on resilience and helping fragile countries increase local capacity.

The UN is vital but it is also a poorly managed bureaucratic labyrinth with some 30 funds, programs and agencies all vying for money and influence and oftentimes operating with overlapping mandates and duplicate efforts, wasting precious resources.

If the UN wants the new US administration to take it seriously then it must get serious about becoming more transparent on how its money is spent and shutting programs that are simply redundant or not working.

– Denis Fitzgerald
On Twitter @denisfitz

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Only Two of 15 Security Council Members Have Paid 2015 Dues

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Feb. 25, 2015 – New Zealand and France are the only two members of the Security Council to have paid their 2015 United Nations dues so far this year.

Permanent members Britain, China, Russia and the United States have still to pay along with nine of the ten non-permanent countries on the Council.

Neither France nor New Zealand made their payments by the end of January, the UN’s official dues deadline, with Paris paying its $151 million share and Auckland, $6 million, earlier this month, according to information from the UN Committee on Contributions.

The Dominican Republic was the first country to pay up – it’s assessed at $1.2 million annually, while 43 other countries have also made their payment, including Canada ($80 million), Bhutan ($27,000), and Algeria ($3.7 million).

The United States is the largest contributor to the UN’s regular budget (there is a separate peacekeeping budget). Washington is assessed at 22 percent of the $2.7 billion annual regular budget, or $654 million. It typically makes a large payment in the fourth quarter – the United States government’s fiscal year begins on Oct. 1st – but that payment is not nearly enough to clear its back debt which was some $1 billion as of late last year.

The next biggest contributors, Japan ($293 million), and Germany ($193 million), have also not yet paid their 2015 dues.

Some countries, such as Somalia, Guinea-Bissau and Comoros, are exempt from paying this year as the General Assembly decided that inability to pay is beyond their control.

Other countries, such as Yemen and Grenada, have lost their vote in the General Assembly because of a violation of Article 19 which states that a country will lose its vote if “the amount of its arrears equals or exceeds the amount of the contributions due from it for the preceding two full years.”

The 13 Security Council Members Still to Pay and Their Assessed Dues for 2015:

Permanent Members:
Britain: $140 Million
China: $139 Million
Russia: $66 Million
United States: $654 Million

Non-Permanent Members:
Angola: $271,357
Chad: $54,271
Chile: $9 Million
Jordan: $596,984
Lithuania: $1.9 Million
Malaysia: $7.6 Million
Nigeria: $2.4 Million
Spain: $80 Million
Venezuela: $17 Million

– Denis Fitzgerald
On Twitter @denisfitz

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