The United Nations is at risk of an ‘imminent financial collapse,’ Secretary-General Antonio Guterres has warned member states. In a letter seen by Reuters, Guterres cited unpaid fees and a budget rule that forces the global body to return unspent money as key factors contributing to the crisis. This stark warning comes as the organisation’s main contributor, the United States, is retreating from multilateralism.
Guterres stated that the crisis is ‘deepening, threatening program delivery and risking financial collapse’ and expects the situation to deteriorate further. He noted that some member states have formally announced their decisions not to honour assessed contributions, which finance a significant share of the approved regular budget. Under UN rules, contributions depend on the size of each member state’s economy, with the US accounting for 22% of the core budget and China accounting for 20%.
Founded in 1945, the UN comprises 193 member states and works to maintain international peace and security, promote human rights, foster social and economic development, and coordinate humanitarian aid. Guterres highlighted that by the end of 2023, outstanding dues had reached a record $1.57 billion. He urged all member states to honour their obligations to pay in full and on time, or to fundamentally overhaul the financial rules to prevent an imminent financial collapse.
Guterres warned that the organisation could run out of cash by July. He described a rule requiring the global body to credit back hundreds of millions of dollars in unspent dues to states each year as an antiquated problem. ‘In other words, we are trapped in a Kafkaesque cycle expected to give back cash that does not exist,’ said Guterres.
