Identifier
Created
Classification
Origin
08USUNNEWYORK133
2008-02-13 16:39:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
USUN New York
Cable title:  

62ND UNGA/FIFTH COMMITTEE: CONTINUING TO PURSUE

Tags:  AORC UUNR UNGA 
pdf how-to read a cable
VZCZCXYZ0005
OO RUEHWEB

DE RUCNDT #0133/01 0441639
ZNR UUUUU ZZH
O 131639Z FEB 08
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3721
INFO RUEHXX/GENEVA IO MISSIONS COLLECTIVE PRIORITY
UNCLAS USUN NEW YORK 000133 

SIPDIS

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: AORC UUNR UNGA
SUBJECT: 62ND UNGA/FIFTH COMMITTEE: CONTINUING TO PURSUE
THE UN MANAGEMENT REFORM AGENDA WHILE RATIONALIZING THE UN
BUDGET

REF: USUN 10

UNCLAS USUN NEW YORK 000133

SIPDIS

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: AORC UUNR UNGA
SUBJECT: 62ND UNGA/FIFTH COMMITTEE: CONTINUING TO PURSUE
THE UN MANAGEMENT REFORM AGENDA WHILE RATIONALIZING THE UN
BUDGET

REF: USUN 10


1. (U) This is a guidance request - see para 9.


2. (SBU) SUMMARY: The first resumed session of the Fifth
Committee is scheduled to begin on 4 March. The most
important items on the agenda relate to UN management reform
proposals. These include proposals relating to the proposed
new IT system; establishment of an
accountability/results-based management (RBM)/enterprise risk
management (ERM) system; human resources management and
procurement reforms; as well as a revised proposal for
restructuring of the UN Department of Political Affairs
(DPA). In addition the SYG has indicated that he will at
this session introduce a proposal for restructuring the UN
Department of Economic and Social Affairs (DESA) and related
development programs and activities, which would include
UNCTAD and the Regional Commissions. While we have been
pressing since the September 2005 World Summit for
implementation of reforms to improve accountability,
transparency, and efficiency in UN activities, we also face
the equally important imperative, in light the initial
2008-2009 biennium UN budget (reftel),of ensuring a
disciplined approach to the UN budget, including reasonable
restraint of the growth in the present and future budgets.
In this aspect, we are also concerned about reports that
there could be efforts to transfer funding for activities
traditionally financed from the regular budget to the
peacekeeping budget, increasing the cost for the USG, for
example in regard to SPMs. In order to meet these two
objectives, USUN proposes that, in upcoming Fifth Committee
discussions, the USG pursue progress on the reforms
identified by the World Summit while deferring action to
later this year or next on reforms that would entail
substantial budget increases, including the new proposals of
the SYG to restructure DPA and DESA. END SUMMARY.

PRELIMINARY AGENDA FOR
RESUMED SESSION - PROPOSED
ADD-ONS TO THE BUDGET
--------------


3. (SBU) Although the Fifth Committee Executive Secretary
has not as yet distributed a draft program of work for the
Committee's March resumed session, preliminary indications
from the Fifth Committee Bureau suggest that agenda items
will likely include, inter alia, proposals relating to:

a. accountability/results-based management (RBM)/enterprise

risk management (ERM);
b. reform of the information and communications technology
system;
c. human resources management;
d. the UN procurement system;
e. OIOS' investigations function;
f. construction of the UN integrated compound in Baghdad;
g. DPA restructuring; and,
h. DESA restructuring.


4. (SBU) Most of these items relate to reforms approved at
the 2005 World Summit that remain to be implemented (e.g.
para 3, a-e). Several of these have the potential to involve
substantial increases to the approved budget (e.g. para 3, b
and c). Others are new proposals (e.g. para 3, g and h) that
have substantial budgeting implications. Replacing the
current IT system with a next-generation system may
necessitate expenditures of more than $100 million. Human
resources reform could involve expenses of $31 million for
the regular budget, and far more for the support account.
The expenses for restructuring DPA, already have been
calculated at $21 million for the current 2008-09 biennium,
with even higher costs projected for future years, $34
million per year. The DESA proposal by far has the greatest
potential for increasing the budget. It involves development
activities that the G-77 has consistently argued should be
greatly expanded. The current budget for those activities is
some $750 million.

NEED TO RATIONALIZE THE
BUDGET AND HOLD DOWN COSTS
--------------


5. (SBU) During the Fall 2007 Fifth Committee negotiations
on the proposed 2008-2009 UN biennium budget, culminating inQmber 22 "no" vote, USUN underscored the need to bring
discipline to the budget process and to exercise fiscal
restraint in the growth of the budget. The 2008/2009 budget
of $4.17 billion already represents a 10 percent increase
from the initial appropriation of $3.79 billion originally



approved for the 2006/2007 budget.


6. (SBU) It is in light of these efforts to rationalize the
UN budget and contain costs that we must consider a strategy
for the March resumed session. USUN believes the best
approach, given our continued budgetary concerns, would be to
pursue those proposals that would not entail significant new
costs, such as accountability
framework/results-based/enterprise risk management system,
OIOS enhancement, and procurement, while opposing and/or
postponing action on other more costly proposals such as the
DPA and DESA. The proposal to defer action on costly
proposals met with widespread support at the Main Session.
Based on preliminary consultations with key WEOG and G-77
Member States, USUN believes such a strategy has good
prospects for succeeding in the March resumed session.


7. (SBU) Initially, it appears that the principal proposal
for implementing ICT reform won't be ready to address until
the May resumed session, leaving only the more limited
proposal for some kind of backup disaster system. The human
resources proposals are more difficult, especially since the
G-77 apparently desire some progress on this reform.
However, because the proposal is divided into two parts -
streamlining contracts and harmonizing conditions of service
- there is a good opportunity of limiting action at this
session to the less far reaching and costly part -
streamlining contracts. While the revised DPA proposal of
the SYG has improved on the previous proposal as the ACABQ
report on the proposal indicates, it continues to raise some
serious issues. More importantly, there is concern among a
number of WEOG members that support for the proposal
generally would likely provoke a demand by the G-77 for some
action on the forthcoming DESA proposal. The DESA proposal
has potential for an enormous increase in the budget,
dwarfing the DPA and other proposals, but will not likely be
in sufficient shape to act upon definitively at this session.
Nonetheless, USUN is concerned that support for action on
DPA proposal would provoke the G-77 to seek some framework
resolution approving restructuring on DESA and related
entities. Such a framework agreement would generally commit
the Organization to favorable action on an ambiguous but
potentially costly proposal with significant elements that
we are likely to oppose down the line. The only practical
approach to maintaining fiscal restraint is to defer both DPA
and DESA until the end of this GA (September) or possibly
later. Finally, we would oppose any effort to substitute
funding presently provided under the regular budget to the
peacekeeping budget.


8. (SBU) Concerning the remaining large cost proposal -- the
$180 million needed to complete the integrated UN
headquarters compound in Baghdad -- USUN understands that
this proposal may again be postponed. In any event, it would
be critical to making timely progress on this matter to
convince the Government of Iraq to at least pay half if not
all the costs required.

GUIDANCE REQUEST
--------------


9. (SBU) USUN seeks Department approval to proceed with the
above strategy.
WOLFF