Monday, 16 September 2019, +05:30
Space for Advertisement
World United Nations needs a solution that works

United Nations financial crisis needs a solution that works

United Nations Secretariat briefed the member states earlier this month of the large amounts of reimbursements that were due to the Troop Contributing Countries


: United Nations owes India $38 million for peacekeeping operations. In this scenario, India has called for a comprehensive solution to address the “real” facing the world body, saying countries that owe arrears are “insured” from the impact of their inaction.

The UN’s peacekeeping financial year is ending on 30 June and member states are yet to pay $1.9 billion worth of assessments for peacekeeping budget and $1.5 billion worth of assessments for the regular budget, India’s Deputy Permanent Representative to the UN Ambassador K Nagaraj Naidu said at a session on ‘Improving the Financial Situation of the United Nations.’

Naidu said many Troop Contributing Countries (TCCs), including India, are awaiting “long, legitimate reimbursements” from the closed peacekeeping missions.

“Our expectation is that the problem be discussed and addressed comprehensively, he said.

The UN owes India $38 million, among the highest it has to pay to any country, for peacekeeping operations as of March 2019, UN Secretary-General Antonio Guterres had said in his report on improving the financial situation of the UN released in April.

Naidu said the UN Secretariat briefed the member states earlier this month of the large amounts of reimbursements that were due to the Troop Contributing Countries.

These include troops cost with $339 million and Contingent Owned Equipment claims from the active and closed missions worth $670 million.

“Yet there is reluctance in some quarters to recognise the financial problems being faced by the UN,” he said adding that the crisis is real and present and we need a solution that works.

Naidu voiced concern over the practice of meeting the cash requirement of active missions by dipping into the cash pool of closed peacekeeping missions and delaying reimbursements to Police and Troop Contributing Countries, saying it has over a period of time created a false sense of financial soundness.

“This approach of creative accounting in managing a financial crisis has never worked and never will. It appears that the countries that owe arrears are somewhat insured from the impact of their inaction,” Naidu said.

“As a result, the arrears have grown larger and with it the expectations, of course from the arrear-owing countries that the Secretariat would somehow manage the status quo, even if it requires calibrating the reimbursement framework, he said.

He reiterated India’s assertion that the practice of delaying payments to TCCs while other contractual obligations are met, impacts the UN’s ability to maintain honest agreements with TCCs on other aspects of the peacekeeping.

While sufficient cash has been made available in the pool of closed peacekeeping mission accounts for reimbursing the Troop and Police Contributing Countries in accordance with the agreements signed with them, Naidu said this cash has been diverted to managing the liquidity crisis of the active peacekeeping missions and at times shortfall in the Regular Budget, thereby deferring resolution to the pressing problem.

He stressed that India believed a sustainable solution to the financial crisis would only emerge when member states begin to honour their budgetary obligations in full and on time.

“If member-states do not meet their budgetary obligations, then at least in the context of future peacekeeping operations we see two emerging situations one, where even with the available cash pool Troop Contributing Countries would not be reimbursed on time and two, missions will close with a cash deficit, without fully reimbursing the Troop and Police Contributing Countries.

In a sign of how dire the financial situation of the UN is, Guterres said this week he had contemplated selling his official four-story residence in New York when he took charge as the world organisation’s head to help resolve the deteriorating financial crisis facing the United Nations.

He had told the delegates at the Fifth Committee’s meeting on Improving the Financial Situation of the Organization’ that the first thing he did when he arrived in New York to assume charge as the UN Chief was to ask if he could sell the residence. I am not joking. It is a true story. I discovered that I couldn’t, because the residence can only be sold to the United States of America when we close the doors in New York. Obviously, it is not something that is not, hopefully, going to happen.

The United Nations owed more than $250 million to troop- and police-contributing countries at the end of 2018 and again at the end of the first quarter of 2019. This debt is likely to again exceed $400 million at the end of June 2019, similar to the situation at the end of June 2018, Guterres said.

Leave a Reply

Latest news

Khattar makes NRC election pitch before Haryana poll

While members of even the ruling coalition in Assam are unhappy with the way has panned out in their state, some BJP leaders are going around the country promising a similar exercise nationwide

Gangwar retracts: North Indians unemployable, he’d said

When recruiters arrive, they say the quality of candidates they are looking for is not in adequate supply in these areas, Union Minister of State (independent charge) for Labour and Santosh Gangwar had said in Bareilly on Saturday

Crude oil supply crisis in market for the first time due to attack on Saudi plant

Due to the drone attack by rebels, supply has decreased by 5.7 million barrels per day, which is 6% of the global supply

Bheto Bangali: Why And How You Identify One

A one-word translation for 'bheto' may be an exercise in futility; phrases like 'rice-influenced' or ‘rice-oriented’ do serve as literal translations while not quite bringing out the rich and diverse connotations of this one-word nomenclature used to describe the typical Bengali mentality, one that transcends diet and encompasses multiple aspects of life
- Advertisement -

Freight Equalisation Policy Crippled Bihar, Bengal, Odisha

The equalisation policy ensured that and Gujarat enjoyed hegemony in metal as well as while Bihar, Bengal and got an upper hand in none

Salman Khan gifted her no house, says Ranu Mondal

If Salman Khan had given me a house, he would have presented it to me in front of everyone: social media sensation-turned-singer Ranu Mondal

Must read

- Advertisement -

You might also likeRELATED
Recommended to you

%d bloggers like this: