International body contemplates staff reductions and potential budget decreases by 20 percent.
The United Nations is contemplating a significant reduction of its staff by approximately 6,900 positions and a 20% decrease in its $3.7 billion annual budget, according to an internal memo obtained by Reuters. This review, aimed at enhancing the UN's purpose and supporting 21st-century multilateralism, is partly due to financial constraints and reductions in contributions from major donors.
One of the primary reasons behind these cuts is the liquidity crisis faced by the UN, with member states not always paying their dues on time. Another significant factor is the decrease in contributions from major donors, notably the United States, which historically accounts for nearly a quarter of the world organization's annual budget. This reduction in funding has been further exacerbated by recent U.S. policies, such as halting funding for certain UN initiatives.
UN Controller Chandramouli Ramanathan requests UN staff to submit detailed proposals for cost-cutting measures by June 13. Potential solutions being considered include the reduction or merger of individual UN departments, the relocation of UN sites to more cost-effective cities, and operating with greater efficiency to maintain its crucial roles in peacekeeping and humanitarian assistance.
UN Secretary-General Antonio Guterres emphasizes that these changes will undoubtedly involve uncomfortable and challenging decisions, warning that avoiding them could lead to a dead-end. He is keen on focusing the UN's efforts on its core functions, adapting to the changing global landscape.
In addition, the global Official Development Assistance (ODA) is predicted to decline from $213 billion in 2023 to $140 billion by 2025, impacting UN programs that rely heavily on external funding. This reduction in aid further tightens the financial squeeze on the organization.
The job cuts are expected to take effect on January 1, 2026. It remains to be seen how these changes will impact the efficiency and effectiveness of the United Nations in its mission to reduce human suffering and create a better life for all.
The United Nations' employment policy may undergo significant alterations as part of the 20% budget reduction, potentially affecting over 6,900 positions. In the midst of financial constraints and reduced contributions, the UN is reconsidering its community policy, with cost-cutting measures being proposed, such as departmental reductions or mergers and relocations to more cost-effective cities.
In light of the anticipated decrease in global Official Development Assistance, UN programs heavily reliant on external funding may face challenges, further exacerbating the financial squeeze on the organization and prompting the need for greater business efficiency to maintain crucial roles in peacekeeping and humanitarian assistance.
