NAM’s principles position on Financial Situation and Arrangement of the United Nations

The United Nations and all its agencies and funds spend about $30 billion each year or about $4 for each of the world’s inhabitants. This is a very small sum compared to most government budgets and it is less than three percent of the world’s military spending. Yet for nearly two decades, the UN has faced financial difficulties and it has been forced to cut back on important programs in all areas, even as new mandates have arisen.
The Non-Aligned Movement has remained concerned at the financial situation of the UN as result of the failure on the part of some Member States, especially major contributing States, to meet their assessed contributions in full, on time and without conditions, in accordance with the Charter and relevant General Assembly resolutions.
NAM has reiterated that that it remains crucial to ensure that all decisions on the priority-setting of the UN are adopted in an inclusive and transparent manner in the intergovernmental bodies, in full compliance with General Assembly resolutions, and that the Organization should be provided with the resources needed for the full and effective implementation of all mandated programmes and activities as well as those required to guarantee the quality of services needed for the functioning of its inter-governmental machinery. The movement is firm on the stand that principle of capacity to pay of Member States should remain as the fundamental criterion in the apportionment of the expenses of the Organization.
Peacekeeping Finance represents a large part of the UN budget, with a US$7.06 billion annual budget for the period from 1 July 2011 to 30 June 2012. The Peacekeeping Budget pays for UN peacekeeping operations all over the world. The budget is financed through assessments of all UN member states, based on the scale of assessments for the Regular Budget.
But the five permanent members of the Security Council, who approve all peacekeeping operations, pay a surcharge on top of their regular assessments. The developing countries of the global South get a discount on their rates. As the largest collective voice promoting the interest of the developing countries in the international order, NAM firmly believes that the general principles governing the financing of UN peacekeeping operations, as set out in the relevant General Assembly resolutions, should be adhered to.
A proper balance should be struck between the level and urgency with which peacekeeping activities are funded on the one hand, and availability of resources needed for full implementation of all mandated programmes and activities by the General Assembly, in particular in the area of development, on the other.
The principled position of the movement states that the existing reporting procedures on budget and financial cycle should be maintained and the role of the Member States in programme evaluation of the Organization should be strengthened. In this regard, reaffirm the functions of the Committee on Program and Coordination (CPC), as the main subsidiary organ of ECOSOC and the General Assembly for planning, programming, monitoring, evaluation and coordination and its vital role in program design by ensuring that the Secretariat accurately interprets and translates legislative mandates into programs and sub-programs. The movement has stressed that the level of resources to be approved by the General Assembly must be commensurate with all mandated programmes and activities in order to ensure their full and effective implementation.
They also reaffirmed the priorities of the Organization as approved by the General Assembly and the need for the Secretary-General to fully reflect these priorities when presenting proposed programme budgets. Keeping the interests of the developing nations in mind with respect to the financing of the UN, NAM has stood firm on its stand that the core elements of the current methodology of the scale of assessments, such as base period, Gross National Income, conversion rates, low per capita income adjustment, gradient, floor, ceiling for Least Developed Countries and debt stock adjustment must be kept intact and are not negotiable. Further, in this regard, NAM has urged all UN Member States in arrears, in particular the major contributing States, to settle their outstanding dues without further delay and to pay their future assessments in full, on time and without imposing preconditions in accordance with the Charter and relevant General Assembly resolutions, mindful at the same time of the special situation faced by some developing countries that hamper their ability to pay their assessed contributions.

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