UN Faces Strain: Impact of US Budget Cuts on Global Operations
The United Nations plans to reduce its $3.7 billion budget by 20% and cut 6,900 jobs due to financial issues predominantly driven by U.S. funding shortfalls. The organization's liquidity crisis is worsened by unpaid U.S. assessments and late contributions from China, alongside possible consolidation efforts.
The United Nations Secretariat is grappling with significant budget cuts, slated to reduce its $3.7 billion budget by 20%, resulting in the loss of approximately 6,900 jobs. This directive, issued amid a financial crisis, is heavily influenced by the United States' funding shortfalls, which annually account for nearly a quarter of the U.N.'s budget.
Much of the financial strain stems from the current U.S. administration's reduction in foreign aid and unpaid dues totaling $1.5 billion. However, the initiative for budget cuts, termed 'UN80', is also part of a broader effort to modernize the organization. Secretary General Antonio Guterres is exploring a wide-ranging overhaul that includes merging departments, reallocating resources, and increasing efficiency.
With more than 40% of the U.N.'s funding tied up with contributions from the U.S. and China, the liquidity crisis becomes more critical. As deliberations continue, the global impact of reduced funding on humanitarian programs remains a pressing concern, especially as upcoming U.N. budget adjustments aim to reflect the new financial realities.
(With inputs from agencies.)
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