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UN Faces Financial Crisis, Plans Job Cuts & Budget Slash

OpinionUN Faces Financial Crisis, Plans Job Cuts & Budget Slash

Mikey Smith, the Deputy Political Editor (Sunday) at the Mirror based in Westminster, reports on the significant discussions at the UN’s 80th anniversary, focusing on the war in Ukraine and the growing recognition of Palestinian statehood by various countries.

Aside from these pressing matters, an underlying narrative of financial strain surrounds the General Assembly in New York this week, with the UN facing severe monetary challenges. To mitigate this, the UN is unveiling the UN80 Initiative, aimed at restructuring and streamlining its operations to become more efficient and reduce redundancy.

In an effort to address its financial woes, the UN plans to slash its budget by 20% next year, resulting in the potential loss of 6,900 jobs, constituting about 20% of its workforce. While some argue that a leaner UN could enhance effectiveness by eliminating duplication and bureaucracy, others like Richard Gowan from the International Crisis Group caution that the restructuring ultimately means accomplishing less with fewer resources.

The financial strain on the UN is exacerbated by the substantial amount owed by member states, with the US accounting for a significant portion of the outstanding $2.4 billion in late or unpaid dues, totaling $1.5 billion. President Donald Trump’s administration’s decision to review and potentially cut off funding to the UN further complicates the organization’s financial predicament.

The US has already frozen funding to several UN initiatives, including those supporting Palestinian refugees, UN peacekeeping, UNICEF, and the UN Development Programme. Additionally, the US withdrawal from the Human Rights Council and the World Health Organization has added to the financial challenges facing these international bodies.

With global stability at a precarious juncture and the disruptive influence of the Trump administration, the UN finds itself in a precarious financial position, making it difficult for the organization to effectively carry out its peacekeeping and humanitarian missions.

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