Bureaucrats and diplomats at the United Nations are scrambling to adjust to the new Trump administration. One thing seems certain. The Obama days of wine and roses for the UN are over. The Trump administration is reportedly laying the groundwork for cuts of at least 50% to U.S. funding for United Nations programs. U.S. diplomats warned key UN member states to “expect a big financial restraint” on American spending at the UN at a meeting earlier this month in New York City, according to sources cited by Foreign Policy.
The United States spent nearly $10 billion in total on the United Nations in 2015 alone, based on available data. This includes U.S. payment of 22 % of the UN’s regular budget and about 28.5% of its peacekeeping budget, which together add up to over $3 billion annually. The U.S. has contributed billions of dollars more in voluntary donations to various UN agencies, programs and flash humanitarian appeals. Based on available 2015 data, cutting just the U.S. voluntary contributions by 40 % would save about $2.7 billion a year.
It has been estimated that the U.S.’s mandatory assessment for funding of the UN’s regular budget is more than that of 176 other UN member states combined. The 56 member states of the Organization of Islamic Cooperation are estimated to have constituted approximately 8.6% of global production in 2015. However, they only paid 5.6% of the UN’s regular budget and 2.4% of the UN’s peacekeeping budget.
United Nations mandatory assessed budget funding is based on the socialist formula of “from each according to his ability, to each according to his need.” The starting point is to calculate each member state’s mandatory budget assessments based on the proportion of each member state’s gross national product in comparison to the global gross national product. However, that is only the starting point. Many “less developed” nations’ assessments are then adjusted downward through manipulative concessions such as a debt burden discount and a low per capita income discount. Wealthier nations find themselves having to make up the shortfalls.
The United States is bearing an unfair burden in the funding of the United Nations. Yet the U.S. has only one vote out of 193 member states in the General Assembly when it comes to approval of the final budget for which it pays the lion’s share. This redistributionist practice must end and give way to more equitable sharing of mandatory assessments so that all member states have some real skin in the game.
The UN is also way overdue for a major overhaul, including significant cuts in its bloated budgets.For example, UN bureaucrats based in New York have been receiving net remuneration (i.e., take-home salary) at a level about 25% higher than that of their U.S. equivalents, according to the International Civil Service Commission. There are highly generous benefits that the UN provides its staff on top of that. UN salaries and benefits need to be frozen, or even rolled back, to eliminate any differential that still remains with what comparable U.S. civil servants receive, as a condition for continued U.S. funding.
The UN’s aid agencies are cumbersome and non-transparent. One independent study published a few years ago concluded that “many of the UN agencies have an extremely bad record on transparency” and are “among the least accountable aid agencies.” UN agencies also carry heavy overhead costs, which reduce the amount of contributions from donor countries going directly to those who need the assistance. The United Nations Development Program (UNDP) and United Nations Population Fund “actually spend more on administrative costs than aid disbursements (129% and 125%, respectively),” according to the study. The UNDP also has the highest salary/aid ratio at 100 percent. Perhaps for that reason, the UNDP’s transparency record is particularly bad.