UN BUDGET: SECRETARIAT RESPONDS TO MEMBERS'

UNCLAS USUN NEW YORK 001028 SIPDIS E.O. 12958: N/A TAGS: ABUD AFIN AORC KUNR UNGA SUBJECT: UN BUDGET: SECRETARIAT RESPONDS TO MEMBERS' CONCERNS ABOUT EFFICIENCY MEASURES ¶1. Summary. At the request of the Group of 77 and China, Secretariat officials on November 3 appeared before the Fifth Committee to answer questions about the Secretary-General's plan to identify efficiency savings in preparation for the UN's proposed budget for 2010-2011. The planned 30-minute discussion stretched to three hours as delegations repeatedly criticized the Secretariat for the savings proposal and its failure to inform Member States about it. According to Mr. Kim Won-soo, Deputy Chief of Staff for the Secretary-General, program managers were asked to identify savings in their program amounting to two percent that would be presented in the budget outline for 2010-2011 and such savings would be available for reallocation to higher priority activities. Amb. Kim noted that the figure of two percent is not a fixed requirement, but is instead a target. Several delegations, including Egypt, Cuba, and Brazil, questioned how this could be done without negatively affecting implementation of existing mandates. They also suggested that any efficiency savings realized should be placed in the Development Account, in accordance with relevant resolutions. Delegates from Canada, the United States, Japan, and France (EU) expressed support for the Secretary-General's efforts, while other delegates used the opportunity to complain about such things as recently installed fire doors, reduced air conditioning, and the UN's agreements with NATO. End summary. ¶2. Most questions concerned the perceived two percent budget cut and the lack of transparency surrounding the announcement to the press before Member States were notified of the proposal. Kim explained that Secretary-General Ban Ki-moon told the press of the idea when asked a specific question by a member of the media. The Secretariat did not feel that this was a major issue because the process was an internal exercise for the purpose of preparing a budget outline that will be presented to Member States later this session. The proposal is not for the 2008-2009 budget, but will affect the 2010-2011 proposed budget. The Secretary-General has asked senior officials to find ways to increase efficiency with the goal of completing 100 percent of the mandates with 98 percent of the resources at their disposal, leaving the remaining two percent for allocation to new proposals or initiatives. He also noted that Member States will be asked to match the Secretariat's efforts by providing additional resources for such new proposals or initiatives. He acknowledged the concern of Member States and added that these actions will be completed in a transparent manner. ¶3. Along with delegates from Canada, Japan, and France, the United States delegate expressed support for the effort. The United States delegate shared the concern expressed by other Members States regarding the lack of communication on this matter. However, the United States delegate stated that the Secretary-General had the authority and responsibility to seek to identify such efficiencies and present proposals based on his efforts to Member States for their consideration and action. The US delegate noted, in response to the comments of the G-77 Member States, that there may be other established opportunities for reviewing existing mandates for this purpose. However, the US delegate added that in view of proposed increase in the regular budget of some 25 percent and the global financial crisis, it made sense for the Secretary-General to request his managers at this time to again review their mandates. ¶4. Delegations were clearly irritated that the press was informed about this development before Member States and expressed concern about rumors circulating throughout the organization. Most delegations seemed to enter the meeting expecting to hear the announcement of a two percent budget cut, which could result in an unauthorized realignment of priorities throughout the Organization. Some countries, such as Chile, Costa Rica, Cuba, Egypt, and Venezuela questioned the fate of the development account and their desire that it not be made a low priority issue. Among other things, they asked how the Secretariat came up with the number of 2 percent; what was meant by the term "efficiency"; and what outcomes were expected from this exercise. ¶5. Amb. Kim explained that this action on the budget was a result of several factors: a request by Member States to exercise budget discipline; new demands on the budget; and the global financial crisis. The Deputy Chief of Staff responded to the queries of delegations by explaining that Member States would have the sole authority to approve any proposal presented to them by the Secretariat. This proposal would be comprised of the recommendations of senior executive officials on ways to increase efficiency and carry out all of the mandates within existing resources. He explained that the Secretariat had not prejudged the responses of the officials and could not predict what the proposal would look like in its finished state. Kim ensured Member States that they would have the last word on the matter and that the process would be carried out properly and transparently. ¶6. While Member States had caught the attention of senior Secretariat officials, they also used up conference service time complaining about other issues. For instance, the delegate from Singapore brought up the issue of vacant posts that Member States had been assessed for. The Syrian delegate inquired about the UN's non-legally binding agreement signed with NATO. The delegate from Guatemala wanted to know why the chief of UN Safety and Security was still in his position after the Secretary-General accepted his resignation following the bombing of the UN compound in Algiers. The Russian delegate criticized the Secretariat for reducing air conditioning during the summer in a symbolic effort to reduce the UN's carbon footprint. The delegates from Nicaragua and Costa Rica expressed (once again) their dislike of the fire doors that were installed to comply with local fire codes. Under Secretary-General for Management Angela Kane and UN Controller Jun Yamazaki patiently tried to answer these and other questions. Many questions will be answered in writing and delivered at a later date. Khalilzad