Cash crunch continues as debt nears $3 billion: UN downsizes and looks for savings.

Under-Secretary-General for Administration and Management Joseph E. Connor, speaking at a news conference on 29 April, said that a week earlier, the United States--by a significant margin the UN's largest debtor--had approved a national budget that included $256 million ($122 million for the regular budget and $134 million for peace-keeping) more for the UN than the Organization had originally expected. However, Mr. Connor said, the appropriation actually represented late payments for the regular and peace-keeping 1995 budget assessments.

The Russian Federation--the second largest Member State debtor--had earlier announced it would pay $400 million in 1996, of which $46 million would cover its full payment for the 1996 regular budget.

While the cash crunch was expected to ease temporarily as Member States made payments in the coming months, Mr. Connor warned that the UN would be forced to dip into the peace-keeping accounts in August. Even with the projected payments, he forecast a negative cash balance of $200 million in the regular budget by year's end. The UN is precluded by its rules from borrowing from outside financial instrtutions.

While welcoming the latest commitments, Mr. Connor, a former Chairman of the accounting firm of Price Waterhouse, displayed some caution, saying that "promises are good, but cash is better".

Debt and downsizing 

The UN debt, which has been accumulating for a number of years, totalled $2.8 billion--$1.7 billion for peace-keeping and $1.1 billion for the regular budget--as of 30 April. The United States alone owes more than half: $1.5 billion in current and past debts for the regular budget and for peace-keeping operations. Russia owes $401 million; Ukraine holds the number three spot, racking up $245 million in debt.

Forced to borrow from its peace-keeping account, the UN is also falling farther behind in its payments to countries that contribute troops and equipment for peace-keeping operations. They are now owed close to $800 million.

Appropriations of $2.61 billion for the regular budget 1996-1997 were adopted on 23 December 1995 by the General Assembly (resolution 50/214). The Assembly, in approving the budget, requested that reductions amounting to $154 million be achieved during the biennium and Secretary-General Boutros Boutros-Ghali was asked to report back with proposals to achieve the necessary additional savings.

On 28 March, the Secretary-General said that an overall reduction of approximately $140 million had been found through changes in programme delivery and services, efficiency gains related to procedural simplification, and the vacating of 800 posts for the biennium (A/C.5/50/57). The additional requested savings appeared feasible through further improvements in efficiency and administrative procedures, and proposals in that regard would be submitted no later than the next Assembly session in September 1996. "The human and financial costs", he stressed, "should not be underestimated." 2(As of the end of April, 700 posts had been vacated, with a further 100 cuts expected soon.)

Strengthening the system

On 11 March, Secretary-General Boutros-Ghali called for a streamlined, more responsive Secretariat, as well as for a better balance in the functioning and responsibilities of the Security Council, the General Assembly and the Economic and Social Council, and for an Organization in which all the principal organs worked in a more balanced way. That would "go a long way towards advancing policy coordination throughout the system", he told the High-level Working Group on the Strengthening of the UN System.

"We must be clear about our priorities; we must shape our missions to our means; we must not spread ourselves too thin; and we must act not only on the symptoms, but also on the root causes of problems", the Secretary-General stressed. With the UN becoming increasingly important to efforts to contain conflicts, redress inequalities, and combat poverty, he considered change to be necessary.

Since taking office in 1992, Mr. Boutros-Ghali has initiated a series of reform and budget-cutting measures. These have included consolidating 13 offices into 3 departments, establishing accountability standards, strengthening managerial training, cutting the regular 1994-1995 and 1996-1997 budgets, supporting the appointment of an inspector-general for internal oversight, and over-seeing significant staff reductions.

Pool, letters show strong US public support for UN

A new poll conducted for the non-governmental United Nations Association of the United States of America (UNA-USA) by the respected Wirthlin Group has found strong support among the United States public for the UN.

On UPT funding, 64 per cent of Americans believed the United States "should always pay its full dues to the UN on schedule", while just 28 per cent supported withholding dues to press other countries to accept reform proposals. Nearly half of all Americans believed their country's regular assessment to the UN should reflect its share of world income, while just over one third felt the assessment should be capped at a rate lower than the current 25 per cent.

Over half of the respondents believed the UN was doing a good job in trying to solve the problems it had to face, while about a third felt it was doing a poor job. The survey also found that "all other things being equal, if one candidate for President wanted to weaken the United Nations and another wanted to strengthen it", United States citizens would vote for the one who would strengthen it by a margin of 71 per cent to 19 per cent. A majority would also judge a Congressional candidate in part on UN issues.

At an 11 April press conference announcing the results, UNA-USA chairman John C. Whitehead, who served as Deputy Secretary of State under President Ronald Reagan, said the wide margins demonstrated that "there is almost overwhelming support of the United Nations from the American public". The survey of Americans 18 and older had a 3 per cent margin of error.

From grandparents to kids (and some pets), people reach out to UN

As if further proof of the strength of grass roots support for the UN were needed, ample evidence is pouring into the world Organization in the form of letters and checks from United States citizens and, increasingly, citizens of other Member States. From grandparents to children (and on behalf of a few pets), people are pitching in to make small but heartfelt monetary contributions to the UN at a time it faces its greatest financial crisis.

The phenomenon seems to have begun in October 1995 when American and other non-governmental organizations (NGOs) took the initiative in promoting full and timely payments of dues by Member States and in increasing public support and awareness of the UN.

UNA-USA chairman John Whitehead on 30 October wrote to Secretary-General Boutros Boutros-Ghali expressing his embarrassment at his Government's refusal to live up to its treaty obligation. He calculated that, with a total debt of $1.1 billion (since risen), every American citizen owed about $4.40. Citizens for Funding the UN (CFUN), another United States NGO, has launched a similar initiative, calling for "a massive outpouring of views directed to Congress and the President".

The Executive Committee of NGOs associated with the UN Department of Public Information, representing over 1,500 NGOs worldwide, also is asking for active participation by members in a drive for increasing public support through, among other actions, a letter writing campaign and the payment of symbolic amounts to the UN.

What began as a trickle has become a flood. In April alone, the UN received 572 checks. As of the end of that month, the total collected since the write-in campaigns began amounted to $16,120.41. The money, gratefully accepted, must be deposited, under UN rules, into a reserve fund on which the Secretary-General may draw to meet ongoing obligations. It does not reduce the amount owed by a Member State.

The following are some excerpts from a few of the always stirring, sometimes humorous letters:

"As a young person, living in today's world, I see the UN for what it is ... what President Kennedy called `our last, best chance for peace'. I hope that as my generation begins to make political choices and compete for offices, we Americans rededicate ourselves to fulfilling the vision set forth in the UN Charter. Thank you for you work and good luck in this difficult time."

"In honor of those United Nations employees who struggle so valiantly against hunger, poverty and war, please accept this humble offering of $44.00 on behalf of myself and my family."

"The enclosed is our contribution towards diminishing the shameful U.S. debt. It comes from Hilary, Debi and Roni (both born in India but now U.S. citizens) Smith along with Cupie and Kiddo the cats and Daisy the dog who is in all other respects not a model citizen but much loved never-the-less. We're extremely glad you're there."

"I am enclosing $4.40 for myself, $4.40for my dog Shagoluk (as suggested in the Times), and $25 for a childhood debt. Growing up in Manhattan in the 50s, I used to trick-or-treat for UNICEF on Halloween, like so many children. At the end of the evening I'd have a bunch of pennies. Being a sophisticated city kid, I rationalized that the UN didn't really need small change, and you couldn't mail pennies anyway. So I kept the money for candy. I figure that, by now, those years of pennies would have accumulated enough interest to be worth at least $25."

"Having lived in developing countries with my father, who worked for the UNDP (UN Development Programme), I have seen the impact that the UN can have on ordinary lives. It's a shame that the U.S. hasn't been supporting this worthy organization."