September 17, 2004
On September 15th, the Senate Appropriations Committee approved its version of the fiscal year 2005 spending bill for the Departments of Commerce, Justice, State, and the federal judiciary, and reported the measure to the Senate for floor consideration. The bill, S. 2809, provides funding for U.S. financial obligations to forty-four international organizations, including the U.N. system, and peacekeeping. During its markup of the bill, the Committee cut both the Bush administration's request for assessed payments to international organizations, by $173.38 million, and for U.N. peacekeeping, by $76 million. The House passed its version of the commerce-justice-state appropriations bill (H.R. 4754) on October 8th, providing the President's full request for international organizations and peacekeeping.
Peacekeeping Dues Estimated At $1.3 Billion; Bill Provides $574 Million
S. 2809 includes $574 million for anticipated U.S. dues payments for U.N. peacekeeping operations, a reduction from the Administration's budget request of $650 million. In its report accompanying the bill (108-344), the Committee estimated that U.S. peacekeeping dues would total at least $1.35 billion next year. The Committee did not clarify in its report how it intended to compensate for the discrepancy between the $574 million provided in S. 2809 and the $1.35 billion in anticipated U.S. peacekeeping assessments. It did, however, criticize the long lifespan of some peacekeeping missions and noted: "In light of the explosive growth in the number of peacekeeping missions and the skyrocketing costs of providing troops and logistical support to those missions, the United Nations must identify ways to do more with less funding." The United States, as a permanent member of the Security Council, can veto the creation or expansion of any U.N. peacekeeping mission.
Committee Encourages Privatization of Peacekeeping Missions
The appropriations panel observed in its report that, "in some cases, private companies can carry out effective peacekeeping missions for a fraction of the funding the United Nations requires." The Committee stated that the "United Nations can no longer afford to ignore the potential cost-savings that private companies…offer." Noting that the U.N. has difficulty securing sufficient numbers of peacekeeping forces from member states, the Committee concluded, "At a minimum, such [private] companies should be utilized to supplement" traditional U.N. troops.
Would Adjust Cap on Peacekeeping Contributions
The bill includes language that would temporarily adjust a congressionally-mandated cap on U.S. peacekeeping payments for fiscal year 2005, enabling the United States to provide in full its U.N. peacekeeping assessment. The "cap", enacted in 1994, prevents the United States from providing any more than 25 percent of U.N. peacekeeping expenses. The United States is currently assessed approximately 27 percent of U.N. peacekeeping costs; the language would raise the cap to this level for FY2005 in an effort to forestall the accumulation of new arrears to the United Nations. In 2002, the cap was similarly adjusted, but only through the current fiscal year.
Bill Includes Funds to Secure Loan for Renovation of U.N. Headquarters
As approved by the Appropriations Committee, S. 2809 would provide just $1.02 billion for assessed contributions to international organizations -- $173.38 million less than the president's request of $1.19 billion. Within this amount, the Committee's report specifies the following distribution of funds: $70 million for the International Atomic Energy Agency (IAEA); $12.7 million for the International Civil Aviation Organization (ICAO); $1.35 million for the International Maritime Organization (IMO); and $1.1 million for the World Intellectual Property Organization (WIPO). In addition, $6 million is provided to cover the cost of securing a loan of up to $1.2 billion for the renovation of the U.N.'s headquarters complex. In the event that the United Nations declines the U.S. loan offer, the Committee recommends that they be provided to the United Nations Educational, Scientific, and Cultural Organization (UNESCO) for its Middle East programs.
Committee Wants Congressional Access to U.N. Oil for Food Documents
In its report, the Appropriations panel instructed the Bush Administration to call on the U.N. to release "all relevant documents" to U.S. congressional committees investigating allegations of mismanagement and corruption surrounding the humanitarian Oil for Food Program in Iraq. The Committee also urged the administration to use its influence to ensure that the Independent Inquiry Committee established by Secretary General Kofi Annan conducts its review of the program "in as rigorous a manner as possible" and releases a preliminary report within six months and a final report within 12 months of beginning its work.
Committee Concerned by U.S. Post-Conflict Capability, Praises Sierra Leone Court
The bill contains $1 million for the creation of a State Department office for managing the United States' civilian response to post-conflict situations overseas. The Committee remarked in its report that it was "concerned about the lack of capacity within U.S. civilian agencies to effectively prepare for and respond to post-conflict stabilization and reconstruction crises." The bill states that the new office will "monitor, develop, and coordinate U.S. capabilities to rapidly engage in stabilization and reconstruction activities in response to conflict or civil strife." Finally, the Committee expressed support for the Special Court for Sierra Leone, specifically its "resolve in indicting and prosecuting the leaders of neighboring countries who actively encouraged the conflict [in Sierra Leone] in order to control the output of Sierra Leone's diamond mines."
More General Articles on UN Finance
More Information on US Policy on UN Peacekeeping