The United States currently owes the UN over $4 billion, while China owes about $455 million.
United Nations / © Associated Press
The United Nations is facing the threat of financial collapse due to delayed contributions from the US and China, the organization’s two largest donors, who account for approximately 42% of its core budget.
This is reported by The Wall Street Journal.
According to the publication, the United States currently owes the UN over $4 billion, and China owes about $455 million, despite a recent transfer of $850 million by Beijing.
Against this backdrop, UN Secretary-General António Guterres has warned that the organization is effectively engaged in a “race to bankruptcy” and could run out of funds by mid-August.
“This is a very real prospect,” Guterres stressed.
Due to the acute funding deficit, the UN has already begun implementing a large-scale austerity program. Specifically, the organization is closing some offices, reducing around 3,000 positions in the secretariat, cutting expenses for translation services, and reducing funding for peacekeeping operations.
Furthermore, the UN has accelerated the withdrawal of peacekeeping contingents from several regions, including the Democratic Republic of Congo, and is delaying payments to countries providing military personnel for “blue helmet” missions, such as Nepal and Bangladesh.
The situation is complicated by the specifics of the organization’s financial model. The UN is not authorized to take out loans to cover deficits, and a significant portion of its expenses—around 70%—is allocated to staff remuneration. Meanwhile, member states continue to expand the number of programs and mandates of the organization, which currently total about 40,000.
According to the publication, Washington attributes the funding cuts to its desire to enhance the effectiveness of international structures. US State Department representative Michael Descombes stated at the UN Security Council that the United States advocates for “prioritizing clarity and results over inefficiency and empty words.”
China, in turn, has declared its readiness to fulfill its financial obligations to the organization.
The Wall Street Journal also notes that the financial pressure on the UN is increasing due to reduced contributions from other traditional donors, including the United Kingdom, Germany, Sweden, and the Netherlands.
Against the backdrop of growing arrears from major contributors and declining international support, UN leadership warns that without additional funding, the organization could face its most severe budget crisis in decades.
Recall that Israel may cease cooperation with the office of UN Secretary-General António Guterres following the appearance of Israeli security forces in the organization’s annual report on sexual violence in conflict zones.
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