UNGA 5TH COMMITTEE REVIEWS 2010-2011 BUDGET: G77

UNCLAS USUN NEW YORK 001014

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: AORC KUNR PREL UNGA
SUBJECT: UNGA 5TH COMMITTEE REVIEWS 2010-2011 BUDGET: G77
AND OTHERS RAIL AGAINST SPM FUNDING INCLUSION IN THE
REGULAR BUDGET AND DEPRIORITIZATION OF DEVELOPMENT


1. (U) SUMMARY: On October 29, the Secretary General
introduced his 2010-2011 proposed budget in a formal meeting
of the Fifth Committee which continued Friday, October 30th.
Developing countries called for increased funds to address
poverty and to reach targeted spending goals on development.
Many of the same countries attacked the inclusion of Special
Political Missions (SPMs) in the regular budget, rejected
arguments to cut spending in the wake of the financial
crisis, and maintained that efficiency should not necessarily
imply budget cuts. The E.U., CANZ, Japan, Mexico and several
others provided a counter-balance urging delegates to control
costs, particularly during the financial crisis. Several
countries railed against the steep increases in SPM funding
in recent years and suggested that SPMs be placed in a
separate account apart from the regular budget (this idea was
proposed earlier this year by the Secretary General in
informal consultations with Member States on reforming the UN
budget process). Ambassador Rice delivered the U.S.
statement and stressed the need to allocate UN resources to
the highest priority programs. She reminded the audience that
the U.S. considers SPMs a critical piece of the regular
budget. In addition to the Secretary General, the following
34 countries addressed the Committee: Sudan on behalf of the
G-77, Sweden on behalf of the EU, Mexico on behalf of the Rio
Group and in its national capacity, Australia on behalf of
CANZ, Angola, Switzerland, China, Senegal, the United States,
Morocco, Norway, Cuba, Thailand, the Republic of Korea,
Russia, Nicaragua, Japan, Singapore, Brazil, Iran, Indonesia,
Cameroon, Pakistan, Algeria, Bangladesh, Egypt, Syria,
Turkey, Venezuela, Tanzania, Zambia, India, Argentina,
Vietnam. END SUMMARY.


2. (U) SECRETARY GENERAL INTRODUCES BUDGET: Secretary General
Ban Ki Moon asserted that the preparation of the budget had
"my full involvement from the strategic framework to the
budget outline" and claimed the proposals "reflect the
priorities identified by the General Assembly." Ban Ki Moon
outlined three priorities: ending micromanagement,
consolidating the number of budget fascicles, and finding an
"alternative funding mechanism" for SPMs. He also stressed
the importance of funding ICT projects, implementing the
Enterprise Resource Planning system, and the need to take the
impact of the global financial crisis into consideration.


3. (U) ACAQB VOICES RESERVATIONS ON SPM FUNDING AND LACK OF
INFORMATION: The Chairman of the Advisory Committee on
Administrative and Budgetary Questions (ACABQ) addressed
shortcoming in the budget and noted concern that "a number of
requirements that have been or will be addressed in separate
reports" had not been included in the proposed budget. Some
attention was devoted to addressing staffing needs with the
ACABQ noting that "no entity in the United Nations
Secretariat has a true picture of actual vacancies." The
Chairman called for a review of the plans for new facilities
and maintenance and seeks more information on "major
management initiatives and structural changes."


4. (SBU) G77/CHINA URGE TRANSPARENCY AND A FOCUS ON
DEVELOPMENT: Sudan , speaking on behalf of the G77, voiced
concern over "efforts to restrain the growth of the budget,"
suggesting that the financial crisis is a "flawed argument"
to advocate slashing budgets. Sudan stressed the importance
of funding developing-world initiatives and called the
proposed budget "unbalanced to the detriment of development
related activities." Sudan urged delegates to correct a
double-standard between the "privileged" mandates, which
receive a "constant flow of resources from assessed
contributions or voluntary assistance by donor countries"
versus the "neglected" mandates that are typically
"scrambling for a few crumbs of the regular budget." The
G77/China are concerned over the portion of the regular
budget dedicated to SPMs and "will not allow priority
activities funded by the regular budget to be jeopardized by
the aforementioned increase in SPMs." (NOTE: China
specicially told the U.S. delegation that they oppose moving
the SPM's to the regular budget) Sudan warned delegates away
from "working out deals in small groups," calling the process
disruptive and contributing to "mistrust and polarization."


5. (U) E.U. REJECTS ABILITY TO FUND CURRENT PROPOSED BUDGET,
REFERENCING SCALES, AND CALLS FOR GREATER EFFICIENCY:
Sweden, speaking on behalf of the E.U. and associated
countries agreed that the "Organization should be provided
with the necessary resources to implement its mandates," but
added that given "this period of global financial crisis," it
is critical for resources to be used "in the most effective
and efficient way and that the same strict budgetary
discipline is applied." The E.U. expressed reluctance to fund
the current budget, which they note is $700 million more than
the proposal for the current biennium, and added that "the
European Union wants to stress clearly, this would be a very



substantial increase which is more than we, as the largest
contributor, are able to resource." The E.U. alluded to the
ongoing scales of assessment debate (reftel),calling for "a
fair and more balanced way to share the budgetary
responsibilities of the United Nations." The E.U. also
complained about the piecemeal fashion of the budget
presentation and stated that proposed budget "is not
complete."


6. (U) NO-GROWTH IS NO-GO FOR MANY: G77 members came out in
force against attempts to prevent the budget from growing.
Angola, on behalf of the Africa Group, stated that, "the
application of measures that lead to the realization of
zero-nominal growth in the budget of the Organization does
not augur well and may actually impede the effective
implementation of all the mandates given by member states."
Angola does not support the reliance of "extra-budgetary
resources", since those resources may not represent the
collective priorities of the UN. Morocco added that the
organization is being asked to take on more tasks, but cannot
do so with "stagnant budget levels, particularly in the areas
of economic and social development." Singapore agreed that
members have "every right to demand the efficient use of
resources and to stretch every dollar given to the
Organization," but quickly added that "we should not confuse
this entitlement with parsimony." Indonesia considers that
"zero budget growth just for the sake of no growth, as an aim
in and of itself, can hardly be perceived as an impressive
management strategy."


7. (U) JAPAN, ROK, RUSSIA, AND OTHERS JOIN CALL FOR FISCAL
DISCIPLINE: Several countries outside of the E.U. also called
for fiscal responsibility. The Republic of Korea commented
that "while adhering to strict financial discipline, the
Secretary General must also be selective and focused in
fulfilling the current mandates set by Member States" and
made clear that the Secretariat "should follow appropriate
financial discipline." Japan continued on the same theme,
expressing that "additional expenditures must be contained
within the previously agreed level of the contingency fund"
and suggesting that "new budgetary requirements should be met
first through redeployment." Russia stated that it will
continue to focus on results-based budgeting and underscored
the importance of enhancing effectiveness. Russia added that
the size of the budget is "a matter of concern, particularly
given the current economic recession." Turkey pointed out
that spending choices must be logical and well-matched to the
economic situation, but referred to the presented budget as
"reasonable."


8. (U) DEVELOPING COUNTRIES STRESS DIRE NEEDS: Singapore
noted that the "budget assigns less than a dollar to each of
the world,s inhabitants." Brazil also rejected the idea
that "human rights and development should be funded by
voluntary contributions" and urged members to "strengthen the
role, capacity, and effectiveness of the United Nations
Secretariat in the area of development." Bangladesh declared
that "it is unfortunate that the development account accounts
for only a meager 0.38% of the regular budget reflecting a
proportional decrease" and called on members to acknowledge
that "sustainable development is inextricably linked to peace
and security." Egypt stressed the need to fund development
measures in Africa and said the current budget shows an
"inequality concerning the allocation of the resources."
Nicaragua added that "development is still the Cinderella of
the regular budget" and claimed the imbalance reflects the
lack of a global vision. Iran referred to development as
"the cornerstone of this organization" and said the proposed
budget shows that the pillar is being de-prioritized.


9. (U) CRITICISM OVER SPM SIZE AND INCLUSION IN RB: Singapore
led a chorus of countries against the current SPM funding
structure, and urged that "SPMs be considered as a separate
exercise during our deliberations on the proposed program
budget." India concurred, stating that "this increase in
budget for Special Political Missions, which is drawn on the
regular budget, gives the feeling that the regular budget is
growing rapidly." India connected the SPM increase on the
budget to the call for austerity measures and pointed out
that "the axe of austerity normally falls on
development-related issues. "


10. (U) MEXICO,S BALANCING ACT DEMANDS AUSTERITY AND
DEVELOPMENT: Mexico,s Undersecretary for Management and
Finance Julion Camarena Villasenor spoke on behalf of the Rio
Group, but concluded by speaking his national capacity.
Mexico engaged in a balancing act, calling for austerity
measures, while at the same time emphasizing the need for the
organization to help the most vulnerable. Villasenor urged
member countries to fund "those programs aimed at achieving
better life conditions for our peoples" and stressed the need



to support development initiatives such as the Economic
Commission for Latin America and the Caribbean (ECLAC).
Villasenor targeted SPM funding, noting that "the Group is
concerned about the considerable increase in financial
requirements for Special Political Missions, which are the
main cause of the budget growth." When speaking only for
Mexico, Villasenor noted that "Mexico is committed to an
austerity measure for public expenditures" and added that he
expects the Secretariat to find ways of managing the growth.
He stated firmly that the proposed program budget is
"unacceptable for Mexico."


11. (U) AMBASSADOR RICE CALLS SPMS "CRITICAL" AND URGES
PRIORITIZING RESOURCES: Ambassador Rice highlighted recent
U.S. payments that "dramatically reduced" our regular
budget and peacekeeping arrears and fully paid our 2009
peacekeeping assessments thus far. She said these payments
are critical to the "new chapter of international
cooperation" that the U.S. is spearheading. Rice explained
that the U.S. position on the budget is focused on endorsing
results-based budgeting, assuring that decisions reflect
value for money, and prioritizing commitments in order to
"determine appropriate priorities for today." Ambassador
Rice stressed this final point, adding that "resources
related to program activities based on prior UN priorities
must be eliminated or reduced ) unless their continuing
relevance and effectiveness can be clearly demonstrated." She
referred to SPMs as "critical priorities" and an "integral
component of the UN,s regular budget." Rice called on the
Secretary General to present a full "comprehensive and
transparent budget" as soon as possible and voiced "concern
that we continue to receive the budget in a piecemeal
manner." (Full text of Ambassador Rice,s remarks can be
found at:
http://usun.state.gov/briefing/statements/200 9/131074.htm)


12. (U) SUDAN/ANGOLA,S CRITISISM OF SYG,S ABSENCE IS
QUICKLY REBUKED BY UNDERSECRETARY KANE: Sudan and Angola each
spoke for a second time at the end of the formal meeting in
order to criticize the absence of the Secretary General from
the meeting. Sudan expressed "disappointment with the
Secretary General for not listening to one member speech on
his budget." Angola noted being "equally disappointed."
Angela Kane, Undersecretary for Management, admitted that she
was "a poor substitute for the Secretary General," but
quickly reminded delegates that the Secretary General had
been working to address a terrorist attack earlier in the
week in Kabul, Afghanistan that had killed 6 UN staff. She
said that the Secretary General had "fully planned to be
here" and added that given the Secretary General's priority
to the families of the victims and an emergency session on
safety being held at the same time as the budget meeting, the
decision not to attend "does not show any disrespect."
Rice