The United Nations are in the worst financial crisis since many years. By the end of October, the reserves could be depleted. What’s next? Here are the most important questions and answers.
It is bad for the finances of the United Nations. UN Secretary-General, António Guterres, said in New York the “worst financial crisis for almost a decade”. At the end of October, the reserves could be depleted, warned the UN chief. Then the United Nations were no longer able to pay employees and suppliers.
UN Secretary-General António Guterres: Global activities could come to a standstill
Why is it the money?
The UN is mainly financed from the contributions of its member States. This must brace for the year 2019 with the budget of 3.3 billion dollars. So far, only 129 of the 193 member States, however, have their contributions paid – a total of about two billion dollars. The missing posts are now at the end of the year to bottlenecks.
Who owes the UN the most?
The amount of the contributions depends on the economic strength of a country. Currently, the United States are the largest donor. You deny that 22 percent of the budget. Currently, the government owes in Washington in the community approximately $ 380 million for the previous budget and approximately 670 million dollars for the budget in the current year, i.e. more than a billion dollars.
Why is the payment morale so bad?
Brazil, Iran, Israel, Mexico, South Korea, Saudi Arabia and Uruguay – all of them have not yet paid. But of course, the United Nations hope, particularly on the mammoth contribution of the United States. This is the moment to wait, however, is not unusual. For the fiscal year of USA starts in October – unlike, for example, in Germany or in the United Nations. Therefore, the U.S. government decided in the 1980s to pay their contributions until the autumn. “The UN, therefore, have always, in fact, this funding gap to the end of the year,” says the political scientist Ronny Patz. “You know, in principle, that the United States pay these large missed contributions but.”
Money worries at the UN headquarters in New York
Why is the financial shortage this year is so massive?
Good Question. Finally, the United Nations drive for months with a savings rate. According to António Guterres, the UN would have recognized the red pencil, and thus a higher deficit can be avoided. Only by saving measures for the smooth running of the General debate of the General Assembly and the climate summit had been secured in New York in September. Why is the budget still empty? The United Nations may take in the case of financial problems no credit. Another reason is the so-called Working Capital. This is a type of financial reserve, which can be used, if the liquidity of the United Nations is at risk. UN chief Guterres has repeatedly called for an increase in the Working capital, the increase in the household budget. “The member States, however reluctantly, because the free-floating funds are not set from the outset for anything,” says political scientist Ronny Patz.
Are threatened by the bottleneck, the blue helmet missions?
No, because currently, the liquidity Problem relates to the core budget, by, among other things, the employees in the Central New York and Geneva to be paid. The peace missions of the UN are funded from a separate pot.