On Tuesday (30), the UN General Assembly approved a temporary reform that modifies the system under which the organization automatically refunded or offset part of member states’ budget contributions, even when those funds had not been deposited.
The measure, which will be in effect for a four-year trial period, aims to strengthen the organization’s financial stability amid persistent liquidity pressures, as well as to avoid accounting adjustments that would reduce the actual availability of resources for United Nations (UN) operations, particularly peacekeeping missions.
General Assembly President Annalena Baerbock stated in a press release that this decision prevents “the imminent financial collapse of the UN” by “modernizing a 75-year-old obsolete financial rule that has long undermined the organization’s stability.”
Baerbock added that the measure will have concrete effects on the ground, noting that “more than $900 million earmarked for peacekeeping operations will no longer have to be credited to member states, helping to protect civilians and maintain the cessation of hostilities.”
UN Secretary-General António Guterres also welcomed the decision, noting that it will allow for “more stable management” of resources.
“This decision will allow us to manage resources in a more predictable and responsible manner and improve the implementation of mandates,” he said.
Guterres emphasized that the reform is “essential for operational continuity, especially for peacekeeping operations,” adding that it will benefit his successor—who will be appointed later this year—by eliminating the obligation to return funds that, in many cases, “had not even been received.”
