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Many countries do not pay their contributions – or do not pay them on time. Now the financial situation is getting worse.
The UN has never been able to live on a large scale. The $3.6 billion that will be used to finance the General Secretariat in 2024 is remarkably small for a global organization with countless fields of activity and 193 member states.
The real problem, however, is that many states do not pay their contributions – or do not pay them on time. UN Secretary General António Guterres complains about this again and again.
Liquidity crisis at the UN
In 2023, just 152 countries have paid their mandatory contributions in full. So far this year, only 98 have done so, including Switzerland.
The UN is therefore in a serious liquidity crisis, which is forcing Guterres to take extraordinary measures. They go so far that he sees the work and also the reform of the UN at risk.
The UN headquarters in New York, Vienna, Nairobi and, last but not least, the largest in terms of staff in Geneva are affected. UN sub-organizations that have their own budgets are not affected.
A foretaste of what the austerity measures mean was already given in Geneva over Christmas and New Year. At that time, the Palais des Nations was completely closed. However, this was during three weeks in which there was little going on on the international stage anyway.
Jacket in the office – for cold days
But from the second half of April onwards, the restrictions will affect full operations. Entire buildings are temporarily closed and employees have to move closer together in others, as Kira Kruglikova explains. She is the administrative director of the UN in Geneva.
Legend:
UN Secretary General António Guterres (on screen) has long complained about the lack of payment practices in many countries. Now we have to save money on heating and lighting in Geneva.
Keystone/Salvatore di Nolfi
The opening times will also be restricted. The offices and meeting rooms will only be open from 8 a.m. to 7 p.m. for an indefinite period of time.
The exterior lighting of the historic buildings is reduced to a minimum, escalators only run during major events, and heating and cooling are turned down. Kruglikova recommends that UN staff bring jackets on cool days.
This is intended to save 42 percent of infrastructure costs in Geneva – or 15 million francs. This affects energy costs, security, cleaning and material procurement. Vacancies will be postponed.
At least the wages of today’s employees are secured, emphasizes Kruglikova. “At least for now.”
US Republicans block payments
The UN does not have many levers to increase the payment discipline of the member countries. There are no plans to exclude states from the world organization.
On the other hand, Article 19 of the UN Charter states that countries that do not pay their contributions for at least two years lose the right to vote in the General Assembly. This is currently the case in Venezuela, Ecuador and Afghanistan.
What is far more serious, however, is that some of the most important contributors are seriously in arrears with their contributions, for example the USA. Under former Presidents George W. Bush and Donald Trump, they signaled fundamental criticism of the UN. Under the current US President Joe Biden, who supports the UN, Parliament is blocking the funds.
This is now forcing the United Nations to make drastic austerity measures.
