June 17: The US House of Representatives approved the controversial Hyde Act. The Act mandates cutting 50% of US dues to the UN unless the UN implements 39 reforms detailed in the Act by 2007. It also requires changing funding for several UN activities from an assessed to a voluntary basis, and prohibiting the expansion or creation of new peacekeeping missions until the UN member countries implement specific reforms (other than the 39 reforms).
April 7: While promoting the reform recommendations of his report "In Larger Freedom," Secretary General Kofi Annan drew attention to the fact that the UN allocates just 2 percent of its regular budget to its human rights program. Annan called for increased funding to the Office of the High Commissioner for Human Rights to "expand its conflict prevention and crisis response machinery."
April 6: To increase Washington's negotiating stance at the UN, the US Senate voted to decrease US payments to the UN peacekeeping budget. The Republican-backed measure will reduce the cap on the US share of peacekeeping costs from 27.1 percent of the total peacekeeping budget to 25 percent. Those senators who supported the plan hope it will augment Washington's bargaining power in promoting UN reform and lowering peacekeeping dues.
March 21: Secretary General Kofi Annan releases his report "In Larger Freedom: Towards Development, Security and Human Rights for All." While the report extensively covers UN reform, the report fails to mention UN's shortage of funds or how the UN will finance the reforms.
February 25: The state and city of New York agreed to supply a $1.2 billion federal loan to the United Nations to renovate its headquarters, despite some resistance from local politicians. UN Secretary General Kofi Annan sought independent advice on outside loan interest rates and determined that the UN cannot obtain a lower fixed rate than what the US has offered.
January 13: Despite the fact that Washington turned a blind eye to the illegal oil smuggling that took place under the Oil-for Food program, the US threatened to withhold funding to the UN if the organization does not fully comply with the Volcker investigation into the scandal.
