UN membership appears polarized over the budgetary implications, the pace and the modalities of proposed UN Reforms.

Opposing some of the specific recommendations for UN management reform proposed in UN Secretary-General Kofi Annan’s report “Investing in the United Nations: For a Stronger Organization Worldwide,” the group of developing countries (G-77/China) submitted a draft resolution in the General Assembly’s Fifth (Budget) Committee calling for several further reports and studies to further justify the proposed reforms. The group also opposed budgetary procedures or financial regulations being implemented without the General Assembly’s prior review and approval, and strategic discussions being held in “meetings of manageable size” possibly through dividing up the workload of the Fifth Committee among select working groups of limited membership. The G-77/China prioritized instead the General Assembly’s oversight role for administrative and budgetary matters, with a view to ensuring full, effective and efficient implementation of all mandated programmes and activities and protecting the right of each Member State to have an equal say in UN decision-making regardless of financial contribution to the UN budget. The G-77/China proposal was opposed by several developed countries that feared a slow down of the whole UN reform process – including environmental governance reforms – and cautioned against “cherry-picking” among the Secretary-General’s interrelated proposals. Breaking a longstanding tradition of consensus decision-making, the Administrative and Budgetary (Fifth) Committee approved the resolution proposed by G-77/China by a vote of 108 countries in favor to 50 against with 3 abstentions on 29 April 2006. The resolution was adopted by the General Assembly on 8 May 2006, by a vote of 121 to 50 with two abstentions.
Developed countries that voted against the resolution collectively represent over 80% of budget contributions, thus giving rise to concerns that approval of the UN budget on 30 June 2006 will be tied to progress on management reforms. The Bush administration, for instance, has signaled it may block UN funding unless the organization carries out management reforms by June. Several observers considered that this budget vote has led to a polarization of UN Members’ positions not seen “since the 1970s” or the “invasion of Iraq.” Expressing regret about the vote, Secretary-General Annan urged States to work together to rebuild the spirit of mutual trust and remain committed to the principles of UN reform.
Links to further information
UN press release (April 2006)
UN press release (May 2006)
UN Secretary-General’s Statement
General Assembly Draft Resolution A/C.5/60/L.37
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