United Nations contemplates dismissing over 7000 staff members.
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United Nations to Implement Austerity Measures Following Financial Crisis
The United Nations is contemplating significant job cuts and budget reductions due to a severe financial crisis, in large part fueled by payment delays and funding reductions from key donor countries, including the United States.
The UN's budget, which totals $3.7 billion, is expected to be reduced by 20 percent, while as many as 6,900 jobs could be eliminated, according to an internal memorandum obtained by Reuters. Employees have been asked to submit detailed cost-saving proposals by June 13th.
The UN's financial predicament is partly driven by the United States, which typically contributes almost a quarter of the annual budget to the world organization. The Trump administration's policies have led to reduced funding for certain UN initiatives and payment delays.
The U.S. currently has an outstanding debt of $1.5 billion to the UN, but the current restructuring plans do not directly address this debt. The delays and debts further strain the UN's finances, necessitating drastic measures to ensure its sustainability.
In response to these challenges, the UN's "UN80" initiative, headed by Secretary-General António Guterres, aims to address the financial crisis through consolidation of overlapping mandates, merging of functions, and improving collaboration between UN agencies. Guterres warned that uncomfortable and difficult decisions lie ahead, and that a delayed response could lead to a dead end.
The need for restructuring is amplified by a changing global landscape and declining support from member states, which puts pressure on the UN to adapt and become more efficient. However, the implementation of these changes will face resistance from member states and UN entities that may see their mandates or staff positions threatened.
This tough fiscal situation comes at a time when the UN is facing "existential challenges" but is "needed more than ever," according to the Green politician Annalena Baerbock, who spoke in her application speech for the post of UN General Assembly President in May. Baerbock emphasized the need for strong financial and political pressure on the UN to navigate through these challenges.
- The European Union, along with the European Parliament, the Council, and the Commission, might need to reconsider their financial support for the United Nations, given the current financial crisis and the urgent need for restructuring.
- As the UN faces profound existential challenges, it is crucial for the general-news media to cover the ongoing business and political aspects of the community policy changes implemented by the UN, as these changes could significantly impact the future of international cooperation.
