'Financial collapse imminent': UN chief warns after US funding cuts

UN programmes worldwide face growing risk after the United States, the organisation's largest contributor, cut voluntary funding and withheld mandatory payments

The United Nations (UN) is facing an “imminent financial collapse” due to unpaid contributions from member states and a budget rule that forces the global body to return unspent money, Secretary-General Antonio Guterres has said, according to Reuters. He further warned that the world body could run out of funds by July this year. 

Why the UN is facing a funding crisis

“The crisis is deepening, threatening programme delivery and risking financial collapse. And the situation will deteriorate further in the near future,” Guterres said in a letter to ambassadors dated January 28.

 

The organisation’s programmes across the world face a potential threat after the United States, its largest contributor, cut voluntary funding and withheld mandatory payments for regular and peacekeeping budgets. Guterres noted that several member states have formally announced they will not pay assessed contributions, which fund a large portion of the UN’s regular budget.

 

 

“Either all Member States honour their obligations to pay in full and on time – or Member States must fundamentally overhaul our financial rules to prevent an imminent financial collapse,” he added.

How US policy changes are affecting UN agencies

Earlier this month, US President Donald Trump signed an executive order suspending American support for 66 groups, agencies and commissions. Many of the targets are UN-related agencies, commissions and advisory panels that focus on climate, labour, migration and other issues the Trump administration has categorised as catering to diversity, equity and inclusion (DEI) and “woke” initiatives.  (With inputs from Reuters.)