Background on Antonio Guterres and His Role
Antonio Guterres, the current Secretary-General of the United Nations (UN), has been at the helm since 2017. As the ninth Secretary-General, he succeeded Ban Ki-moon and was elected by acclamation by the UN General Assembly. Guterres, a former Prime Minister of Portugal, brings extensive experience in international diplomacy and humanitarian efforts to his role.
UN Faces Chronic Liquidity Crisis
The UN has been grappling with a chronic liquidity crisis for several years, primarily due to some member states failing to pay their mandatory contributions to the regular budget in full or on time.
Key Contributing Factors
- Delayed or Insufficient Payments: Major contributors like the United States and China have been inconsistent with their payments, exacerbating the crisis.
- Policy Changes by the US Government: The administration of President Donald Trump has implemented policies that further strained the UN’s financial situation.
Proposed Budget Cuts by Guterres
In response to this ongoing crisis, Guterres proposed a 15% reduction in the UN’s budget for 2026, amounting to approximately $500 million. This proposal also includes eliminating around 19% of positions funded by these budgetary allocations.
Details of the Proposed Cuts
- Revised Budget: The revised budget stands at $3,238 million, resulting in the elimination of 2,681 positions.
- Impact Distribution: The cuts will affect the three pillars of the UN – peace and security, human rights, and sustainable development. Programs assisting the poorest countries will be particularly impacted.
- Personnel Adjustments: Some staff members may be relocated, others reassigned, and a few might face termination.
Reactions and Next Steps
Guterres informed UN staff that the impact of these changes will be distributed among the three pillars, with certain sectors, especially assistance programs for poorer nations, bearing the brunt. An initial relocation of around 200 personnel from Geneva and New York to more economical cities like Nairobi has been suggested.
The proposed budget will now be debated by member states prior to its anticipated adoption by the UN General Assembly before year-end.
Key Questions and Answers
- What is the proposed budget reduction? Guterres suggested a 15% cut, approximately $500 million, from the UN’s 2026 budget.
- How many jobs will be eliminated? Around 2,681 positions will be removed as part of this budget adjustment.
- Which UN areas will be affected? The cuts will impact the peace and security, human rights, and sustainable development pillars, with assistance programs for poorer nations bearing a significant burden.
- What are the reasons behind this crisis? The chronic liquidity crisis stems from some member states’ failure to pay their mandatory contributions in full or on time, compounded by policy changes from the US government under President Trump.
