Emerging Economies to Contribute More to UN Budget
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A group of emerging economic powers including China have agreed to increase their contribution to the United Nation’s coffers as countries such as Britain, Germany and Japan reel from the effects of the global financial crisis.
A group of emerging economic powers including China have agreed to increase their contribution to the United Nation’s coffers as countries such as Britain, Germany and Japan reel from the effects of the global financial crisis.
The United Nations General Assembly has approved a budget increase of approximately 5 percent to $5.4 billion for the year 2013. More than half of the $243.3 million increase is due to additional costs for some of the 33 special UN political missions which include UN envoys for Syria, Yemen, Libya and Sudan-South Sudan, as well as other large-scale operations in Afghanistan and Iraq.
While the budget is not large by global standards, diplomats say the revised budget contributions is a reflection of the world’s changing economic fortunes.
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As part of the budget deal, China will pay an extra 61 percent in UN fees, taking its share of the budget from 3.2 to 5.1 percent – overtaking Canada and Italy to being the sixth biggest UN contributor.
BRIC nations and other countries with growing economies will also have to pay an increased share while European Union contributions will drop.
In particular, Brazil has agreed to an 82 percent hike in payments, taking its contribution to 2.9 percent of the budget instead of 1.6 percent. India’s payments will increase 24 percent, taking its budget share from 0.5 to 0.66 percent. Russia’s payments will go up by 52 percent.
Germany’s share of the budget will fall from 8.0 to 7.1 percent, France from 6.1 to 5.6 percent and Britain from 6.6 to 5.18 percent.
An unnamed diplomat told the AFP:
[quote] This is a start brought on by the economic crisis in Europe, but there will have to be more changes eventually. [/quote]
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UN contributions are worked out according to a country’s share of global gross national income (GNI). As the world’s largest economy, the United States accounts for 24.2 percent of global GNI but its UN contributions are pegged at 22 percent.
US deputy ambassador Joseph Torsella said the United States “is pleased by the significant progress we were able to achieve toward advancing fiscal discipline during a period of significant global financial difficulty and setting the United Nations on the path of increased efficiency.”
The 2012 – 2013 budget also includes a first-ever pay freeze for New York-based staff for six months, and Torsella said the United States will try to extend it because “it is important that member states finally recognize that ‘business as usual’ cannot continue in the current financial climate.”
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