Global Policy Forum

Chronology of the UN Financial Situation: 1994

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August 19, 1994: The Clinton Administration claims a victory in Congress with a $1.2 billion appropriation to pay for the US peacekeeping costs at the UN. After overcoming many legislative difficulties, the bills passes, providing for $670 million in supplemental funds for fiscal 1994 and $533.3 million for fiscal 1995, which begins October 1. Congress also appropriates $287.3 million in funding for the UN regular budget. The administration has been unable to persuade Congress to tap into the US military budget to pay for peacekeeping operations. And Congress has imposed conditions on the appropriations: 20% of the regular budget and half of the peacekeeping appropriation are to be withheld pending certification that the UN appoints an Inspector General to combat waste and fraud.

August 31, 1994: Beset by deepening financial problems and with steadily-rising costs for peacekeeping missions, the UN has $3.25 billion in outstanding assessments at the end of August, a record amount . The UN has cash balances of $325 million and it owes $1.725 billion -- $1 billion to states for peacekeeping and other services; $325 million to states for past budgetary surpluses; and $400 million to vendors and suppliers. [SG statement, 12 October, 1994] The situation, though serious, is somewhat mitigated by the fact that the US government is expected to pay more than $1 billion in outstanding assessments by year's end.

September 26, 1994: US President Bill Clinton speaks to the General Assembly and announces that the U.S. will pay $1.2 billion to meet its current dues and catch up on arrears.

October 12, 1994: Three weeks before the US election, the Secretary General issues a statement on UN finance, referring to the UN's financial position as "precarious." He says: "Financial flexibility is non-existent. Cash resources cannot be marshaled in amounts sufficient to respond to needs--present or possible. The situation imperils the capability of the United Nations to perform the very functions for which it was created." ["Ensuring a Viable Financial Basis for the Organization"]

November 29, 1994: In light of the critical financial situation, the General Assembly sets up an Expert Working Group to examine the UN's scale of assessments and propose possible changes, as part of wider discussions about reform of the UN's financial system.

December 23, 1994: The General Assembly establishes a High Level Open-Ended Working Group on the Financial Situation of the United Nations.

December 31, 1994: At the end of the year, the UN is owed $1.8 billion by member states -- $480 million for the regular budget and $1.3 billion for peacekeeping operations. The US owes by far the most to the regular budget, but because of large Russian arrears in peacekeeping the US is second to Russia in overall arrears ($469 million vs. $507 million).

 

 

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