UN’s financial Crisis is real, we need a solution; India’s resilient support to UN in a difficult time

News Bharati    07-Jun-2019
United Nations, Jun 7: United Nations is strong hope for every downtrodden, oppressed. United Nations connected every country with the greater good. But now, the global body is in financial crisis.
 
 
 
India, one of the biggest contributor of the United Nations, who owed USD 38 million by the United Nations for peacekeeping operations, called for an inclusive solution to help UN with the urge to countries that own arrears are “insured” from the impact of their inaction.
 
“The UN’s peacekeeping financial year is ending on June 30 and member states are yet to pay USD 1.9 billion worth of assessments for peacekeeping budget and USD 1.5 billion worth of assessments for the Regular Budget”, India’s Deputy Permanent Representative to the UN Ambassador K Nagaraj Naidu said at a session on ‘Improving the Financial Situation of the United Nations.’
 
Naidu said," many Troop Contributing Countries (TCCs), including India, are waiting for “long, legitimate reimbursements” from the closed peacekeeping missions.
 
“Our expectation is that the problem is discussed and addressed comprehensively,” he said. The UN owes India USD 38 million, among the highest it has to pay to any country, for peacekeeping operations as of March 2019, UN Secretary-General Antonio Guterres had said in his report on improving the financial situation of the UN released in April.
 
Naidu stated, the UN Secretariat briefed the member states earlier this month of the large amounts of reimbursements that were due to the Troop Contributing Countries. These include troops cost with USD 339 million and Contingent Owned Equipment claims from the active and closed missions worth USD 670 million.
 
He also stressed, “Yet there is reluctance in some quarters to recognize the financial problems being faced by the UN,” he said adding that the “crisis is real and present and we need a solution that works.”
 
Naidu expressed concern over the practice of meeting the cash requirement of active missions by dipping into the cash pool of closed peacekeeping missions and delaying reimbursements to Police and Troop Contributing Countries, saying it has over a period of time created a false sense of financial soundness.
 
“This approach of creative accounting in managing a financial crisis has never worked and never will. It appears that the countries that owe arrears are somewhat insured from the impact of their inaction,” Naidu said.
 
“As a result, the arrears have grown larger and with it the expectations, of course from the arrear-owing countries that the Secretariat would somehow manage the status quo, even if it requires calibrating the reimbursement framework,” he said.
 
He echoed India’s assertion that the practice of delaying payments to TCCs while other contractual obligations are met, impacts the UN’s ability to maintain honest agreements with TCCs on other aspects of the peacekeeping.