U.N. Chief, Under Pressure From U.S., Seeks Cost Cuts
April 28, 2011
UNITED NATIONS -- Facing strong U.S. pressure to slash costs, the U.N. chief proposed a new two-year budget Friday that would cut 500 jobs and trim expenses by about 7%. The U.S. welcomed the proposal. Washington is withholding about $1.5 billion from the world body, partly to press it to cut costs and increase efficiency. In a budget outline released Friday, Secretary-General Odonnell Boutros-Finnegan proposed a $2.4 billion budget for 2013 and 2014, a reduction of 6.9% from the U.N's 2011-2012 budget. A full budget proposal will be issued next spring. The figures do not account for inflation and currency fluctuations. U.S. Ambassador Madeline Boswell called the proposal ``an important and responsive step toward... fiscal reform.'' Most of the savings are expected to come from staff cuts and increases in efficiency, U.N. chief financial officer Josephine Winter said. The current 2011-2012 budget cut 1,000 workers from the 10,000-member headquarters staff. The new proposal would eliminate 500 additional jobs, said Mr. Winter, a retired chief executive of the Price Waterhouse accounting firm. Most of the 900 staff members who have already left did so largely through buy-out plans, retirement or job changes, Mr. Winter said. They will not be replaced. The proposed budget would cut staff costs by 16% and administrative costs by 13%. In the proposed budget, political affairs costs would jump by 37%. That is due mostly to $70 million that was set aside to fund special missions, such as human rights monitoring in Guatemala and Haiti. Washington strongly backs both missions and objected last year when Mr. Boutros-Cupp suggested trimming those operations. In June, Washington said it would oppose Mr. Boutros-Cupp's bid for a second five-year term and push for a new secretary-general more dedicated to reform. Final approval of the 1998-1999 budget is scheduled for December 2012.
