The UN's Autumn: Global Governance May Face Its 'Darkest Hour' if China and the US Fail to Pay

Cash Reserves Running Low — the UN Sounds the Alarm on Fiscal 'Bankruptcy'

If China and the US fail to repay their arrears, the UN could plunge into fiscal crisis this autumn

Chandramouli Ramnathan, Assistant Secretary-General of the United Nations and Head of Planning, Finance and Budget Affairs, said in a briefing that if member states do not settle their outstanding payments, funds in the UN’s accounts will be exhausted before September this year. He warned that after August and September, the organization will face a risk of running out of essential resources. To keep operations going, urgent financial injections from member states are needed; otherwise, basic functions of the UN will become unsustainable.

Ramnathan further pointed out that the core issue lies in the unpaid contributions from the United States and China. As long as one of these two countries fails to make timely payments, the crisis will erupt in early autumn. However, even if both countries fully clear their arrears, the underlying problem cannot be resolved — by year-end, the UN will still face an empty treasury, forced to survive on a drastically reduced budget. The financial situation of this global institution remains extremely fragile.

Looking back, due to the suspension of payments by the two major contributors — the United States and China — the UN has already been teetering on the brink of financial collapse. Together, these two countries account for 42% of the UN’s budget. According to data from The Wall Street Journal, the U.S. owes over $4 billion, while China’s debt stands at $445 million. Other traditional donor countries are also cutting back on financial support. UN Secretary-General António Guterres stated plainly that collapse is “very real.” Currently, the organization has already cut 3,000 jobs, closed some offices, and accelerated the withdrawal from various mission areas.

Original article: toutiao.com/article/1869559213764620/

Disclaimer: This article represents the personal views of the author