As UN turns 80, it seeks to cut costs in shadow of Trump uncertainty
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The United Nations, founded in October 1945, is facing a liquidity crisis for at least the seventh year in a row.
PHOTO: REUTERS
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NEW YORK – The United Nations will get a “facelift” as it turns 80 amid a cash crisis in 2025, seeking ways to improve efficiency and cut costs, senior UN officials said on March 12 – but do not liken it to the US effort by President Donald Trump.
“No Doge, no Musk,” said one official, speaking on condition of anonymity because of the sensitivity of the matter, referring to the Department of Government Efficiency – created by Mr Trump and spearheaded by Mr Elon Musk – which has made sweeping cuts to the US federal workforce
The aim of a task force established by UN Secretary-General Antonio Guterres would be to give the world body and its agencies, funds and programmes a “facelift”, said a second UN official, also speaking on condition of anonymity.
The officials acknowledged that Mr Trump’s return to office in January had added urgency and ambition to the efficiency effort.
Mr Trump said in February that the UN has “great potential and... we’ll continue to go along with it, but they got to get their act together”.
The UN pushed back at the time
“My objective is to move as soon as possible in areas where I have the authority – and to urge member states to consider the many decisions that rest with them,” Mr Guterres told reporters on March 12 when announcing his UN80 initiative.
“This goes far beyond the technical. Budgets at the United Nations are not just numbers on a balance sheet – they are a matter of life and death for millions around the world. We must ensure value for money while advancing shared values,” he said.
The move comes as the United Nations, founded in October 1945, faces a liquidity crisis for at least the seventh year in a row.
Not all 193 UN member states pay their mandatory regular dues in full or on time, Mr Guterres said.
Uncertainty
The regular budget for the United Nations in 2025 is US$3.7 billion (S$4.94 billion), which includes political, humanitarian, disarmament, economic, social affairs and communications work.
Contributions to most UN agencies, funds and programmes – such as the World Food Programme and children’s group Unicef – are voluntary.
The top two contributors to the regular budget, according to assessments agreed by the UN General Assembly, are the United States and China. Washington pays the maximum 22 per cent, while Beijing’s contribution rose 5 per cent in 2025 to 20 per cent.
However, China is now paying its dues at the end of the year – six months later than it once did.
The United States is in arrears, owing US$1.5 billion.
Washington last made a payment of US$275 million in November, under Mr Trump’s predecessor, Mr Joe Biden.
The second UN official said there was “a lot of uncertainty” with the budget in 2025.
China had assured the UN it would pay in full for 2025, but it was unclear when, while Washington was not yet in a position to indicate to the UN how much it would contribute, the official said.
“We have decided, between January and August, to be very prudent financially,” the official said.
As of March 7, 73 member states – just over one third – had paid their regular budget assessments in full.
Amid the cash crunch, the United Nations has reduced planned spending by up to 20 per cent and imposed a hiring freeze.
When asked about possible job cuts as a result of the UN80 efficiency effort, the official said: “At this point I can’t say. What I will say is that everything is on the table and nothing is off the table.” REUTERS
