The United Nations is now facing an issue every business and organization fears most: lack of funds. United Nations Secretary-General Antonio Guterres stated that the United Nations is at risk of running out of cash. In a letter, Mr. Guterres wrote that this is “caused primarily by the delayed contributions of Member States to the Regular Budget.” While the U.N. has experienced low cash flows in previous years, this one is more severe. The “cash flow has never been this low so early in the calendar year”, Mr. Guterres wrote also.
Member States by the end of June of this year have paid around $1.49 billion for the 2018 assessment. Iraq, Moldova, Japan, Lithuania and Mexico have given their contributions. That leaves the United Nations $810 million short with 81 states still needing to pay.
A spokesman for Mr. Guterres, Stéphane Dujarri, said be understood that some countries work on other fiscal timetables. However, delaying payments to the U.N. could have an impact on our ability to deliver mandates.” The U.N. is not very flexible regarding their budget and cash flow making this issue very problematic.
Mr. Guterres is looking at alternative methods of reducing costs without affecting the mission of the U.N. Many thought that the threat to cut funding on behalf of the Trump administration correlated to the lack of cash flow within the U.N. However, this does not seem to be so. The administration has yet to reduce or halt fundings to the United Nations.