UN faces worst cash shortage, operations and staff salaries impacted

The deficit of $230 million is said to be the biggest in a decade.

0
144

It is reported that the United Nations (UN) is facing a liquidity crisis, with only 70 per cent of the members having paid their contributions. The intergovernmental organisation may not be able to pay all the salaries and entitlements of its employees. Its work and reforms will also be affected as October will witness what will probably be the biggest deficit in the UN in ten years—$230 million.

It is rather shocking that the international body whose main task is to ensure that all the member nations are protected and their interests are served, is itself facing a financial crisis. The global economic crisis has deeply impacted the very body that works towards achieving international peace and security.

Although efforts have been on since January, 2019, to cut costs and reduce expenditure, operations in New York, Geneva, Vienna and Nairobi as well as the regional commissions will bear the brunt. The backup reserves that were delved into will also run out soon.

The Secretary General has conveyed that temporary measures and steps will have to be taken to be able to pay the staff’s salaries and entitlements. Meanwhile, all conferences and meetings will be put off for the time being. Also, efforts are on to reduce services and save energy. Officials have been asked to cut down on travel or avoid trips unless absolutely essential.

The member states have also been requested to pay up their contributions on time and also increase their contributions.

Comment on the Article

Please enter your comment!
Please enter your name here