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UN: Evolving Charter 2 Spring 2013 Professor OMalley.

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1 UN: Evolving Charter 2 Spring 2013 Professor OMalley

2 Financial Crisis at the UN Begins during Suez Crisis – Soviet Union, Eastern European states and Arab states say aggressors should pay Congo mission 1960-1964 is a huge expense – Soviet Union and France refuse to pay as mission not authorized by the Security Council under Chapter VII UN has to issue bonds and borrow against future assessments

3 Finances (cont) In 1965, GA sets up account for voluntary contributions – (hat in hand begging) States begin to prorate or target their assessments so that 1/3 of UN members not paid in full by 2000 Article 19 says state can lose its vote for not paying (but rarely used against strong states) US sets Goldberg Reservation in response to Soviets not paying dues – US can make exceptions to its dues assessments as well

4 Finances (cont) US unwillingness to pay a problem: US the biggest contributor so it matters Regular budget shortfall Peacekeeping budget shortfall International criminal tribunals shortfall Targeted agencies for non-payment Targeted NGOs for working with agencies on non-payment list Ideological reasoning must prominent *UN is captive to its members political and ideological goals!

5 Finances (cont) Capacity to pay as funding standard – subject to interpretation, debate and political controversy Scale of assessment based on ceilings and floors – percentages that payments cannot go above or below (artificially set) Assessment discounted based on poverty level – so even if GDP large, GDP/capita can discount the assessment Political wrangling over percentage to pay (ex: Japan)

6 Finances (cont) UN depends on its members paying assessed dues and making voluntary contributions: States can be good global citizens by paying more States can contribute money instead of personnel to peacekeeping Big powers in control – can make or alleviate a budget crisis States want to get recognized and receive more voting power for their financing (Japan and Spain?) UN sometimes has to ask wealthy private donors for money (embarrassing!)

7 UN Reform Begins with Reagan and Perez de Cuellar: Reagan appointees upset and shift in GA to Third World bloc – consider a world without the UN Reagan cancels funding for UNESCO (Goldberg Res.) Reagan unilaterally drops US UN dues from 25% to 20% US passes Kassenbaum Amendment – cuts payments to UN organs until their staffs are cut significantly Perez de Cuellar opens the Joint Inspection Unity (JIU) books to the US General Accounting Office (GAO) – GAO says accounting is a mess and reports lack value UNESCO will reform based on US preferences – upsets many delegations

8 UN Reform (cont) Thornburgh Report – calls for an inspector generals office to root out waste, fraud and abuse Volcker-Ogata Report – calls for peacekeeping dues to be charged against national defense budgets Boutros-Ghalis Agenda for Peace report – calls for military forces placed at UN disposal for rapid reaction Boutros-Ghali cant survive Somalia, Rwanda, antipathy in the US and low financing, so eventually US vetoes his second term

9 Reform Revolution and Annan Four factors drive UN reform at end of millennium: 1.US govt demands for change 2.The long-term financial crisis 3.Expansion of UN obligations, esp. peacekeeping after the end of the Cold War 4.Election of a reform-oriented, activist secretary-general

10 Annans Major Admin Reforms Senior Management Group (SMG) – four thematic groups headed by aids of Annan Appointment of deputy secretary-general Ombudsman Decentralized decision-making in country under one UN flag – UNs country resident coordinator responsible for presence, performance and oversight Chief Executives Board (CEB) of 28 UN system organizations – to cut down on waste and contradiction in effort Cuts staff and admin costs

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