Financial situation of the United Nations: Difference between revisions

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The Secretary-General reports on the '''financial situation of the United Nations''' twice a year under the agenda item "Improving the financial situation of the United Nations".  
The Secretary-General reports on the '''financial situation of the United Nations''' twice a year under the agenda item "Improving the financial situation of the United Nations".  
== General Assembly resolutions ==
The General Assembly has adopted resolutions on several occasions in response to challenges experienced with the financing situation of the United Nations, titled either '''Improving the financial situation of the Organization''' or '''Current financial crisis and financial emergency of the United Nations'''.
{| class="wikitable sortable"
|-
! General Assembly resolution !! Date !! ACABQ report !! SG report !! notes
|-
| [https://undocs.org/A/RES/76/272 76/272] || 29 June 2022 || [https://undocs.org/A/76/7/ADD.29 A/76/7/Add.29] || [https://undocs.org/A/76/429 A/76/429] || Proposed further measures to deal with continuing liquidity challenges exacerbated by the COVID-19 pandemic
|-
| [https://undocs.org/A/RES/73/307 73/307] || 3 July 2019 || [https://undocs.org/A/73/891 A/73/891] || [https://undocs.org/A/73/809 A/73/809] || Proposed measures under the programme and peacekeeping budgets to address worsening liquidity challenges in the Secretariat
|-
| [https://undocs.org/A/RES/48/220 48/220] || 23 December 1993 || || [https://undocs.org/A/48/503 A/48/503] and [https://undocs.org/A/48/503/Add.1 Add.1]; [https://undocs.org/A/48/565 A/48/565] and [https://undocs.org/A/48/565/Corr.1 Corr.1] || Consideration of the report of the Independent Advisory Group on United Nations Financing
|-
| [https://undocs.org/A/RES/47/215 47/215] || 23 December 1992 || [https://undocs.org/A/46/765 A/46/765] and [https://undocs.org/A/47/565 A/47/565] || [https://undocs.org/A/46/600 A/46/600], [https://undocs.org/A/46/600/Add.1 Add.1], [https://undocs.org/A/46/600/Add.2 Add.2], [https://undocs.org/A/46/600/Add.3 Add.3], and [https://undocs.org/A/C.5/47/13 A/C.5/47.13] ||
|-
| [https://undocs.org/A/RES/45/236 45/236 A and B] || 21 December 1990 || [https://undocs.org/A/45/860 A/45/860] || [https://undocs.org/A/45/830 A/45/830] and [https://undocs.org/A/C.5/45/17 A/C.5/45/17] ||
|-
| [https://undocs.org/A/RES/44/195 44/195 A and B] || 21 December 1989 || [https://undocs.org/A/44/873 A/44/873] || [https://undocs.org/A/44/857 A/44/857] and [https://undocs.org/A/44/857/Corr.1 Corr.1] ||
|-
| [https://undocs.org/A/RES/43/215 43/215] || 21 December 1988 || || [https://undocs.org/A/43/932 A/43/932] ||
|-
| [https://undocs.org/A/RES/42/212 42/212] || 21 December 1987 || [https://undocs.org/A/42/861 A/42/861] || [https://undocs.org/A/42/841 A/42/841] ||
|}


== Reports and presentations ==
== Reports and presentations ==
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|-
|-
! Secretary-General's report !! Briefing to the Fifth Committee
! Secretary-General's report !! Briefing to the Fifth Committee
|-
| [https://undocs.org/A/78/524/Add.1 A/78/524/Add.1] || Briefing by the USG DMSPC, 10 May 2024 [https://estatements.unmeetings.org/estatements/11.0050/20240510150000000/6dPT39H2kHhh/yT46f83MM6dg_en.pdf Statement and presentation]
|-
| [https://undocs.org/A/78/524 A/78/524] || Briefing by the USG DMSPC, 9 October 2023 [https://estatements.unmeetings.org/estatements/11.0050/20231009100000000/LtH1mQEfTYoc/AG0Moye2JGq9_en.pdf Statement and presentation]
|-
| [https://undocs.org/A/77/530/Add.1 A/77/530/Add.1] || Briefing by the ASG Controller, 4 May 2023 [https://www.un.org/en/ga/fifth/77/statements/140_Financial_situation/C5_77_2r_ST_2023_05_04_140_Financial_situation_ASG_Controller.pdf Statement and presentation]
|-
| [https://undocs.org/A/77/530 A/77/530] || Briefing by the USG DMSPC, 13 October 2022 [https://www.un.org/en/ga/fifth/77/statements/140_Financial_situation/C5_77_0m_ST_2022_10_13_140_Financial_situation_USG_DMSPC_.pdf Statement and presentation]
|-
| [https://undocs.org/A/76/435/ADD.1 A/76/435/Add.1] || Briefing by the USG DMSPC, 5 May 2022 [https://www.un.org/en/ga/fifth/76/statements/140_Fin_Sit/C5_76_2r_ST_2022_05_05_Financial_situation_USG_DMSPC.pdf Statement and presentation]
|-
| [https://undocs.org/A/76/435 A/76/435] || Briefing by the USG DMSPC, 19 October 2021 [https://www.un.org/en/ga/fifth/76/statements/140_UN_Fin_situation/C5_76_0m_ST_2021_10_19_140_Financial_situation_USG_DMSPC.pdf Statement and presentation]
|-
| [https://undocs.org/A/75/387/Add.1 A/75/387/Add.1] || Briefing by the USG DMSPC, 7 May 2021 [https://www.un.org/en/ga/fifth/75/statements/143_Fin_Sit/C5_75_2r_ST_2021_05_07_Item_143_Financial_situation_USG_DMSPC.pdf Statement and presentation]
|-
| [https://undocs.org/A/75/387 A/75/387] || Briefing by the USG DMSPC, 8 October 2020 [https://www.un.org/en/ga/fifth/75/statements/143_Fin_Sit/C5_75_0m_ST_2020_10_08_Item_143_Financial_Situation_USG_DMSPC.pdf Statement and presentation]
|-
| [https://undocs.org/A/74/501/Add.1 A/74/501/Add.1] || Briefing by the USG DMSPC, 7 May 2020 [https://www.un.org/en/ga/fifth/74/statements/137.%20Financial%20situation/C5_74_2r_ST_2020_05_07_Item_137_Financial_Situation_USG_DMSPC_Rev.1.pdf Statement and presentation]
|-
| [https://undocs.org/A/74/501 A/74/501] || Briefing by the USG DMSPC, 11 October 2019 [https://www.un.org/en/ga/fifth/74/statements/137.%20Financial%20situation/C5_74_0m_ST_2019_10_11_Item_137_Financial_Situation_USG_DMSPC.pdf Statement and presentation]
|-
| [https://undocs.org/A/73/443/Add.1 A/73/443/Add.1]<ref>See also [https://undocs.org/A/73/809 A/73/809]</ref> || Briefing by the USG DMSPC, 7 May 2019 [https://www.un.org/en/ga/fifth/73/statements/138.%20Financial%20Situation/C5_73_2r_ST_2019_05_07_Item_138_Financial%20Situation_USG%20DMSPC.pdf Statement and Presentation]
|-
|-
| [https://undocs.org/a/73/443 A/73/443] || Briefing by the USG DM, 16 October 2018: [https://www.un.org/en/ga/contributions/Statement%20October%202018.pdf Statement] [https://www.un.org/en/ga/contributions/Presentation%20Oct%202018.pps Presentation]
| [https://undocs.org/a/73/443 A/73/443] || Briefing by the USG DM, 16 October 2018: [https://www.un.org/en/ga/contributions/Statement%20October%202018.pdf Statement] [https://www.un.org/en/ga/contributions/Presentation%20Oct%202018.pps Presentation]
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|}
|}


== Financial crises ==
== History ==
At times, exceptional measures have had to be taken to address cash shortfalls resulting from unpaid assessments. Some of the most notable financial crises are described below.  
In 1946, the General Assembly established a [[working capital fund]] as a mechanism to provide a cash reserve to tide the Organization over temporary periods of cash shortage pending the receipt of assessed contributions.
 
However, available mechanisms such as the working capital fund have not always been sufficient to meet liquidity requirements of the Secretariat. As such, exceptional measures have on a number of occasions had to be taken to address cash shortfalls resulting from unpaid assessments. Some of the most notable instances are described below.
 
=== 1960s ===
Disagreements over the legal obligation to [[peacekeeping financing|finance peacekeeping]] missions prompted the General Assembly take a number of measures, including:
* Adoption of [https://undocs.org/A/RES/1731(XVI) resolution 1731 (XVI)] requesting an advisory opinion from the International Court of Justice on the interpretation of Article 17 of the United Nations Charter (see [https://www.icj-cij.org/en/case/49/summaries Certain Expenses of the United Nations]);
* Adoption of [https://undocs.org/a/res/2006(XIX) resolution 2006(XIX)] establishing the [[Special Committee on Peacekeeping Operations#Financial crisis|Special Committee on Peacekeeping Operations]], with a mandate "to undertake as soon as possible a comprehensive review of the whole question of peace-keeping operations in all their aspects, including ways of overcoming the present financial difficulties of the Organization"<ref>[https://undocs.org/A/5916 A/5961] Second report of the Special Committee on Peace-keeping Operations; reached consensus "that the financial difficulties of the Organization should be resolved through voluntary contributions by Member States, with the highly-developed countries making substantial contributions".</ref>;
* Adoption of [https://undocs.org/a/res/2049(xx) resolution 2049(XX)] establishing the ''Ad Hoc'' Committee of Experts to Examine the Finances of the United Nations and the Specialized Agencies<ref>[https://undocs.org/A/6343 A/6343] Second report of the ''Ad Hoc'' Committee of Experts to Examine the Finances of the United Nations and the Specialized Agencies</ref>; and
* Creation of a [[special account]] to record voluntary contributions pursuant to paragraph 4 of [https://undocs.org/a/res/2053(XX) resolution 2053A (XX)]<ref>[https://undocs.org/a/pv.1331 A/PV.1331] General Assembly, 1331st meeting (19th Session), 1 September 1965, 3 PM</ref>.


In the 1960s, disagreements over the legal obligation to finance peacekeeping missions prompted a request for an advisory opinion from the International Court of Justice on the interpretation of Article 17 of the United Nations Charter and the establishment of the [[Special Committee on Peacekeeping Operations#Financial crisis|Special Committee on Peacekeeping Operations]].
=== 1970s ===
By 1970, a dire cash liquidity situation prompted the General Assembly to take further measures, including:
* Initiative of the President of the General Assembly for the 25th session to convene informal discussions with the four major contributors<ref>[https://undocs.org/a/8497 A/8497 Letter dated 10 December 1971 from the Permanent Representative of Norway addressed to the Secretary-General]</ref>;
* Establishment of a Special Committee on the Financial Situation of the United Nations<ref>[https://undocs.org/a/pv.2031 A/PV/2031] General Assembly, 2031st meeting (26th Session), 22 December 1971, 10:30 AM</ref>, as proposed by the President of the General Assembly for the 26th session<ref>A/8635 Note by the President of the General Assembly (18 December 1971)</ref>;
* Adoption of [https://undocs.org/a/res/3049(XXVII) resolution 3049A (XXVII)] establishing a [[special account]]—to be merged with the special account previously established—to address, through voluntary contributions, past financial difficulties and the short-term deficit, on the basis ofthe report of the Special Committee<ref>[https://undocs.org/A/8729(SUPP) A/8729] Report of the Special Committee on the Financial Situation of the United Nations</ref>; and
* Adoption of [https://undocs.org/a/res/3538(xxx) 3538(XXX)] establishing the Negotiating Committee on the Financial Emergency of the United Nations<ref>[https://undocs.org/A/31/37 A/31/37] Report of the Negotiating Committee on the Financial Emergency of the United Nations; this Committee was established in response to the statement of the Secretary-General to the Fifth Committee on 25 September 1975 (A/C.5/1685) and it considered the report of the Secretary-General on financial problems of the United Nations (A/C.5/1730).</ref>, which was unable to reach agreement on any recommendations<ref>General Assembly [https://undocs.org/a/res/32/104 resolution 32/104]</ref>.  


In the 1980s, the United States, under the Reagan Administration, began the practice of "deferred payment" in which the contributions for a particular calendar year would be met by funds requested for following fiscal year.<ref>[https://crsreports.congress.gov/product/pdf/R/R45206 U.S. Funding to the United Nations System: Overview and Selected Policy Issues] (Congressional Research Service report)</ref> In addition, the adoption of U.S. legislation popularly known as the Kassebaum-Solomon Amendment in the mid-1980s required the reduction of the United States contribution to the [[programme budget|regular budget]] to be reduced to 20 per cent unless major financial contributors such as the United States were afforded a greater say in the budget process. <ref>[https://www.everycrsreport.com/reports/RL33848.html United Nations Reform: Background and Issues for Congress] (Congressional Research Service report)</ref> The Secretary-General adopted a number of measures to address the expected cash shortfall, including a hiring freeze<ref>[http://undocs.org/st/sgb/217 ST/SGB/217] The Financial Situation of the Organization</ref>. In parallel, the General Assembly adopted [https://undocs.org/a/res/40/237 resolution 40/237] of 18 December 1985 establishing the Group of High-Level Intergovernmental Experts (popularly known as the Group of 18), which issued a report ([https://undocs.org/a/41/49(supp) A/41/49]) which led to the adoption of [https://undocs.org/a/res/41/213 resolution 41/213], which in turn led to the introduction of consensus-based decision-making in the Fifth Committee.  
=== 1980s ===
In the 1980s, the United States, under the Reagan Administration, began the practice of "deferred payment" in which the contributions for a particular calendar year would be met by funds requested for following fiscal year.<ref>[https://crsreports.congress.gov/product/pdf/R/R45206 U.S. Funding to the United Nations System: Overview and Selected Policy Issues] (Congressional Research Service report)</ref> In addition, the adoption of U.S. legislation popularly known as the Kassebaum-Solomon Amendment in the mid-1980s required the reduction of the United States contribution to the [[programme budget|regular budget]] to be reduced to 20 per cent unless major financial contributors such as the United States were afforded a greater say in the budget process. <ref>[https://www.everycrsreport.com/reports/RL33848.html United Nations Reform: Background and Issues for Congress] (Congressional Research Service report)</ref>.  


In the mid-1990s, late payment of assessments and the peacekeeping budget process also contributed to a precarious financial situation, with $3.7 billion in unpaid assessments in 1994. This prompted the Secretary-General to take a number of unilateral measures, including another hiring freeze, suspension of new consultancies, and limitations to overtime and travel<ref>[http://undocs.org/st/sgb/278 ST/SGB/278] The Financial Situation of the Organization</ref>. Following an appeal by the Secretary-General to the General Assembly<ref>[https://undocs.org/a/49/pv.28 A/49/PV.28] General Assembly, 49th Session, 28th Meeting: Wednesday, 12 October 1994, 10 AM</ref>, the General Assembly adopted [https://undocs.org/a/res/49/143 resolution 49/143] establishing a High-level Open-ended Working Group on the Financial Situation of the United Nations<ref>[http://undocs.org/A/50/43(supp) A/50/43] Report of the High-level Open-ended Working Group on the Financial Situation of the United Nations</ref>. The General Assembly also adopted [https://undocs.org/a/res/49/233 resolution 49/233] on 23 December 1994 which, inter alia, changed the process for consideration of [[peacekeeping financing|peacekeeping budgets]] and established the current 1 July-30 June peacekeeping financial period.
The Secretary-General adopted a number of measures to address the expected cash shortfall, including a hiring freeze<ref>[http://undocs.org/st/sgb/215 ST/SGB/215], [http://undocs.org/st/sgb/217 ST/SGB/217] and [https://undocs.org/ST/SGB/222 ST/SGB/222] The Financial Situation of the Organization; see also [https://undocs.ort/st/ic/86/17 ST/IC/86/17]</ref>;
In parallel, the General Assembly adopted [https://undocs.org/a/res/40/237 resolution 40/237] of 18 December 1985 establishing the Group of High-Level Intergovernmental Experts (popularly known as the Group of 18), which issued a report ([https://undocs.org/a/41/49(supp) A/41/49]) which led to the adoption of [https://undocs.org/a/res/41/213 resolution 41/213]<ref>[https://undocs.org/A/40/PV.121 A/40/PV.121] General Assembly, 40th session, 121st meeting, Wednesday 18 December 1986, 10 AM</ref>, which in turn led to the introduction of [[consensus]]-based decision-making in the Fifth Committee<ref>General Assembly resolution [https://undocs.org/a/res/49/143 49/143]</ref>.  


In the late 2010s, deepening liquidity problems and cash constraints prompted the Secretary-General to issue an additional report on the financial situation ([https://undocs.org/a/73/809 A/73/809]) containing proposals to address the challenges faced in both the regular and peacekeeping budgets.
=== 1990s ===
In the mid-1990s, late payment of assessments and the imposition of a 25% cap by Congress in 1994 on U.S. contributions to peacekeeping operations<ref>Section 404 of P.L. 103-236</ref>  contributed to a precarious financial situation, with $3.7 billion in unpaid assessments in 1994. This prompted the Secretary-General to take a number of unilateral measures, including another hiring freeze, suspension of new consultancies, and limitations to overtime and travel<ref>[http://undocs.org/st/sgb/278 ST/SGB/278] The Financial Situation of the Organization</ref>.
 
Following an appeal by the Secretary-General to the General Assembly<ref>[https://undocs.org/a/49/pv.28 A/49/PV.28] General Assembly, 49th Session, 28th Meeting: Wednesday, 12 October 1994, 10 AM</ref>, the General Assembly adopted [https://undocs.org/a/res/49/143 resolution 49/143] establishing a High-level Open-ended Working Group on the Financial Situation of the United Nations<ref>[http://undocs.org/A/50/43(supp) A/50/43] and [https://undocs.org/A/51/43(supp) A/51/43] Report of the High-level Open-ended Working Group on the Financial Situation of the United Nations</ref>. The General Assembly also adopted [https://undocs.org/a/res/49/233 resolution 49/233] on 23 December 1994 which, inter alia, changed the process for consideration of [[peacekeeping financing|peacekeeping budgets]] and established the current 1 July-30 June peacekeeping financial period.
 
=== 2010s ===
In the late 2010s, deepening liquidity problems and cash constraints prompted the Secretary-General to submit proposals to the General Assembly to address the challenges faced in both the regular and peacekeeping budgets in an additional report on the financial situation ([https://undocs.org/A/73/809 A/73/809]). The General Assembly adopted a number of the peacekeeping-related proposals in its [https://undocs.org/a/res/73/307 resolution 73/307].


== See also ==
== See also ==
* [[Article 19]]
* [[Peacekeeping financing]]
* [[Programme budget]]
* [[Scale of assessments]]
* [[Scale of assessments]]
* [[Peacekeeping scale of assessments]]
* [[Peacekeeping scale of assessments]]
* [[Article 19]]
* [https://www.un.org/en/ga/contributions/financial.shtml Financial Situation of the United Nations] (from Committee on Contributions website)
* [https://www.un.org/en/ga/contributions/financial.shtml Financial Situation of the United Nations] (from Committee on Contributions website)


Latest revision as of 16:24, 11 May 2024

The Secretary-General reports on the financial situation of the United Nations twice a year under the agenda item "Improving the financial situation of the United Nations".

General Assembly resolutions

The General Assembly has adopted resolutions on several occasions in response to challenges experienced with the financing situation of the United Nations, titled either Improving the financial situation of the Organization or Current financial crisis and financial emergency of the United Nations.

General Assembly resolution Date ACABQ report SG report notes
76/272 29 June 2022 A/76/7/Add.29 A/76/429 Proposed further measures to deal with continuing liquidity challenges exacerbated by the COVID-19 pandemic
73/307 3 July 2019 A/73/891 A/73/809 Proposed measures under the programme and peacekeeping budgets to address worsening liquidity challenges in the Secretariat
48/220 23 December 1993 A/48/503 and Add.1; A/48/565 and Corr.1 Consideration of the report of the Independent Advisory Group on United Nations Financing
47/215 23 December 1992 A/46/765 and A/47/565 A/46/600, Add.1, Add.2, Add.3, and A/C.5/47.13
45/236 A and B 21 December 1990 A/45/860 A/45/830 and A/C.5/45/17
44/195 A and B 21 December 1989 A/44/873 A/44/857 and Corr.1
43/215 21 December 1988 A/43/932
42/212 21 December 1987 A/42/861 A/42/841

Reports and presentations

The Fifth Committee considers the regular reports of the Secretary-General and receives closed briefings from the Secretariat on the status of contributions under the regular budget and peacekeeping budgets and the cash flow situation of the Secretariat. This biannual briefing takes place early in the main and second resumed sessions. The briefing is followed one week later by general discussion during which delegations have the opportunity to make statements on the financial situation.

Secretary-General's report Briefing to the Fifth Committee
A/78/524/Add.1 Briefing by the USG DMSPC, 10 May 2024 Statement and presentation
A/78/524 Briefing by the USG DMSPC, 9 October 2023 Statement and presentation
A/77/530/Add.1 Briefing by the ASG Controller, 4 May 2023 Statement and presentation
A/77/530 Briefing by the USG DMSPC, 13 October 2022 Statement and presentation
A/76/435/Add.1 Briefing by the USG DMSPC, 5 May 2022 Statement and presentation
A/76/435 Briefing by the USG DMSPC, 19 October 2021 Statement and presentation
A/75/387/Add.1 Briefing by the USG DMSPC, 7 May 2021 Statement and presentation
A/75/387 Briefing by the USG DMSPC, 8 October 2020 Statement and presentation
A/74/501/Add.1 Briefing by the USG DMSPC, 7 May 2020 Statement and presentation
A/74/501 Briefing by the USG DMSPC, 11 October 2019 Statement and presentation
A/73/443/Add.1[1] Briefing by the USG DMSPC, 7 May 2019 Statement and Presentation
A/73/443 Briefing by the USG DM, 16 October 2018: Statement Presentation
A/72/522/Add.1 Briefing by the USG DM, 11 May 2018: Statement Presentation
A/72/522 Briefing by the USG DM, 9 October 2017: Statement Presentation Addendum
A/71/440/Add.1 Briefing by the USG DM, 3 May 2017: Statement Presentation
A/71/440 Briefing by the Controller, 5 October 2016: Statement Presentation
A/70/443/Add.1 Briefing by the USG DM, 4 May 2016: Statement Presentation
A/70/443 Briefing by the USG DM, 15 October 2015: Statement Presentation
A/69/520/Add.1 and Corr.1 Briefing by the USG DM, 6 May 2015: Statement Presentation
A/69/520 Briefing by the USG DM, 9 October 2014: Statement Presentation
A/68/524/Add.1 Briefing by the USG DM, 6 May 2014: Statement Presentation
A/68/524 Briefing by the USG DM, 9 October 2013: Statement Presentation
A/67/522/Add.1 Briefing by the USG DM, 10 May 2013: Statement Presentation
A/67/522 Briefing by the USG DM, 11 October 2012: Statement Presentation
A/66/521/Add.1 Briefing by the USG DM, 14 May 2012: Statement Presentation
A/66/521 Briefing by the USG DM, 11 October 2011: Statement Presentation
A/65/519/Add.1 Briefing by the USG DM, 12 May 2011: Statement Presentation
A/65/519 Briefing by the USG DM, 12 October 2010: Statement Presentation
A/65/497/Add.1 Briefing by the USG DM, 7 May 2010: Statement Presentation
A/64/497 Briefing by the USG DM, 16 October 2009: Presentation
A/63/514/Add.1 Briefing by the USG DM, 15 May 2009: Presentation
A/63/514 Briefing by the USG DM, 27 October 2008: Presentation
A/62/539/Add.1 Briefing by the Controller, 9 May 2008: Presentation

History

In 1946, the General Assembly established a working capital fund as a mechanism to provide a cash reserve to tide the Organization over temporary periods of cash shortage pending the receipt of assessed contributions.

However, available mechanisms such as the working capital fund have not always been sufficient to meet liquidity requirements of the Secretariat. As such, exceptional measures have on a number of occasions had to be taken to address cash shortfalls resulting from unpaid assessments. Some of the most notable instances are described below.

1960s

Disagreements over the legal obligation to finance peacekeeping missions prompted the General Assembly take a number of measures, including:

1970s

By 1970, a dire cash liquidity situation prompted the General Assembly to take further measures, including:

  • Initiative of the President of the General Assembly for the 25th session to convene informal discussions with the four major contributors[5];
  • Establishment of a Special Committee on the Financial Situation of the United Nations[6], as proposed by the President of the General Assembly for the 26th session[7];
  • Adoption of resolution 3049A (XXVII) establishing a special account—to be merged with the special account previously established—to address, through voluntary contributions, past financial difficulties and the short-term deficit, on the basis ofthe report of the Special Committee[8]; and
  • Adoption of 3538(XXX) establishing the Negotiating Committee on the Financial Emergency of the United Nations[9], which was unable to reach agreement on any recommendations[10].

1980s

In the 1980s, the United States, under the Reagan Administration, began the practice of "deferred payment" in which the contributions for a particular calendar year would be met by funds requested for following fiscal year.[11] In addition, the adoption of U.S. legislation popularly known as the Kassebaum-Solomon Amendment in the mid-1980s required the reduction of the United States contribution to the regular budget to be reduced to 20 per cent unless major financial contributors such as the United States were afforded a greater say in the budget process. [12].

The Secretary-General adopted a number of measures to address the expected cash shortfall, including a hiring freeze[13]; In parallel, the General Assembly adopted resolution 40/237 of 18 December 1985 establishing the Group of High-Level Intergovernmental Experts (popularly known as the Group of 18), which issued a report (A/41/49) which led to the adoption of resolution 41/213[14], which in turn led to the introduction of consensus-based decision-making in the Fifth Committee[15].

1990s

In the mid-1990s, late payment of assessments and the imposition of a 25% cap by Congress in 1994 on U.S. contributions to peacekeeping operations[16] contributed to a precarious financial situation, with $3.7 billion in unpaid assessments in 1994. This prompted the Secretary-General to take a number of unilateral measures, including another hiring freeze, suspension of new consultancies, and limitations to overtime and travel[17].

Following an appeal by the Secretary-General to the General Assembly[18], the General Assembly adopted resolution 49/143 establishing a High-level Open-ended Working Group on the Financial Situation of the United Nations[19]. The General Assembly also adopted resolution 49/233 on 23 December 1994 which, inter alia, changed the process for consideration of peacekeeping budgets and established the current 1 July-30 June peacekeeping financial period.

2010s

In the late 2010s, deepening liquidity problems and cash constraints prompted the Secretary-General to submit proposals to the General Assembly to address the challenges faced in both the regular and peacekeeping budgets in an additional report on the financial situation (A/73/809). The General Assembly adopted a number of the peacekeeping-related proposals in its resolution 73/307.

See also

References

  1. ↑ See also A/73/809
  2. ↑ A/5961 Second report of the Special Committee on Peace-keeping Operations; reached consensus "that the financial difficulties of the Organization should be resolved through voluntary contributions by Member States, with the highly-developed countries making substantial contributions".
  3. ↑ A/6343 Second report of the Ad Hoc Committee of Experts to Examine the Finances of the United Nations and the Specialized Agencies
  4. ↑ A/PV.1331 General Assembly, 1331st meeting (19th Session), 1 September 1965, 3 PM
  5. ↑ A/8497 Letter dated 10 December 1971 from the Permanent Representative of Norway addressed to the Secretary-General
  6. ↑ A/PV/2031 General Assembly, 2031st meeting (26th Session), 22 December 1971, 10:30 AM
  7. ↑ A/8635 Note by the President of the General Assembly (18 December 1971)
  8. ↑ A/8729 Report of the Special Committee on the Financial Situation of the United Nations
  9. ↑ A/31/37 Report of the Negotiating Committee on the Financial Emergency of the United Nations; this Committee was established in response to the statement of the Secretary-General to the Fifth Committee on 25 September 1975 (A/C.5/1685) and it considered the report of the Secretary-General on financial problems of the United Nations (A/C.5/1730).
  10. ↑ General Assembly resolution 32/104
  11. ↑ U.S. Funding to the United Nations System: Overview and Selected Policy Issues (Congressional Research Service report)
  12. ↑ United Nations Reform: Background and Issues for Congress (Congressional Research Service report)
  13. ↑ ST/SGB/215, ST/SGB/217 and ST/SGB/222 The Financial Situation of the Organization; see also ST/IC/86/17
  14. ↑ A/40/PV.121 General Assembly, 40th session, 121st meeting, Wednesday 18 December 1986, 10 AM
  15. ↑ General Assembly resolution 49/143
  16. ↑ Section 404 of P.L. 103-236
  17. ↑ ST/SGB/278 The Financial Situation of the Organization
  18. ↑ A/49/PV.28 General Assembly, 49th Session, 28th Meeting: Wednesday, 12 October 1994, 10 AM
  19. ↑ A/50/43 and A/51/43 Report of the High-level Open-ended Working Group on the Financial Situation of the United Nations
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