The Effects Of Financial Functions Of The United Nations

Improved Essays
The main problem facing the UN, despite the issues with Veto powers, Peace Keeping, and the Americans, is the organizations financial situation. It has been forced to begin a lengthy restructuring to make it more cost effective due to the lack of funds it is encountering. In a recent UN report entitled, “Renewing the United Nations: A Programme for Reform” the UN officials began to address this problem. The report outlined the course which will be taken in order to balance the budget. Since the organization itself is completely reliant upon the money it receives from it’s members it is almost helpless in its hopes to move forward. The only way of punishing members who do not pay is to kick them out of the organization and cut off the …show more content…
II. Effects of Financial Problems on Peace Keeping

The most noted function of the United Nations is, without a doubt, the

peace keeping missions that help to promote, and create, world peace in

countries that are currently at war. United Nations peacekeepers have seen

extensive action in places such as Korea, Bosnia-Herzegovina, and Somalia.

Despite the proud history of this renowned institution, it is currently suffering

because of the lack of finances, not due to overspending or high costs but,

like its counterparts in the Secretariat, because of the shortfall of funds

created when member states fail to pay their UN dues.

When you look at the statistics the Peace keeping is actually very

cheap. The $1.4 billion in costs last year20, may seem relatively high, but

once you consider that this total would have amounted to only 1% of the

American military budget and .2% of world military spending21 you can really

see just how efficient these forces are.

The United Nations itself does not have an actual army. It relies
…show more content…
To make matters worse for the peace keepers, due to the impoverished

fiscal situation of the UN, money has been taken out of the peace keeping

budget just to cover the UN’s regular expenses.27 This further hinders the

UN’s ability to pay back the countries who have donated men and equipment

to this noble cause. Without the funds that are required this important

program will remain in jeopardy.

III. Veto Powers

To truly understand the UN’s financial crisis, you have to understand

the way in which money is collected for the organization. Member states are

accessed a share of the budget based on their national incomes, and their

overall ability to pay this bill. Pay rates for UN members range from the

minimum of a .01% or $106, 508 donation, which is currently being

contributed by 98 countries, to a 25% donation.28

For this reason, most of the money comes out of industrialized

countries such as the United States, Germany, and Japan. If you look at per

capita donations you would see that the 4 Scandinavian countries as well as

many developing countries rank near the top. The average American paid

just $1.11 for the UN, while the average San Marinian paid over $4 for the

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