UN: Developing countries yesterday rejected a United Nations budget deal which had been backed by wealthy nations and was aimed at ending an impasse over UN management reforms, but negotiations were continuing
The European Union, Russia and a UN grouping known as Juscanz - comprising Japan, the United States, Canada, Australia and New Zealand - have signed up to a budget compromise which would limit funding for UN programmes to just six months, while negotiations continued on reforms.
But the 133 developing nations known as the Group of 77 opposed the plan, insisting on enough UN funding for nine months, which could delay implementation of reforms until the General Assembly's next session in September. The 191-nation assembly must approve a budget plan by December 31st or trigger a shutdown of the UN.
British ambassador Emyr Jones Parry, chief negotiator for the EU, called the six-month plan, which caps UN spending at $950 million (€802 million), a "good budget for the UN as a whole".
Group of 77 members had argued that the reforms could take up to nine months to complete, and were seeking a $1.35 billion spending cap.
Secretary General Kofi Annan wants the reform process completed well ahead of the next General Assembly in September, his chief of staff Mark Malloch Brown told reporters yesterday.
Rich countries and Mr Annan are pushing hard for management reforms, following extensive allegations of corruption and mismanagement at the world body, particularly in its handling of the oil-for-food programme in Iraq.
The US, the EU and others want to ensure that the budget leaves room for the crucial decisions on reform, which will not be taken until early in the new year.
But poor nations have dug in their heels, fearing that the changes would dilute their influence over UN programmes and priorities by weakening the role of the General Assembly, where each member has a vote and no nation has a veto.
US ambassador John Bolton said that countries whose dues payments covered almost 85 per cent of the regular UN budget were now backing the compromise.
Some US lawmakers have threatened to slash Washington's UN dues payments, which make up nearly a quarter of the regular budget, if the reforms are not agreed. - (Reuters)