US Considers Delaying Cut Off of U.N. Funds 

May 26, 2005
The New York Times
Original Source: http://www.nytimes.com/reuters/world/international-un-reform-bolton.html
UNITED NATIONS (Reuters) - The United States is offering to delay until September its insistence that rich nations withhold funds from the U.N. budget unless management reforms are enacted, U.S. Ambassador John Bolton said on Thursday.
Under pressure from Bolton, U.N. members agreed in December to tie budgeting for the second half of this year, beginning on July 1, to changes in management practices. The move was aimed at pressuring developing nations into approving the reforms.
``We're not trying to provoke a crisis on June 30,'' Bolton told the Senate Foreign Relations Committee in Washington. ``And one thing that we're considering -- and we've discussed this in New York -- is extending for 90 days the expenditure cap.''
``In other words, to avoid a crisis, to show our good faith, to give us more time to negotiate, we would be prepared to extend the expenditure cap from June 30 roughly to September 30,'' Bolton said.
In December the 191-member U.N. General Assembly approved a two-year, $3.8 billion administrative budget with a $950 million spending cap for 2006. Rich nations contribute more than 80 percent of the U.N. budget.
Despite some progress on reforms, such as an ethics committee, a whistle-blower policy and a peace-building commission, Bolton told the committee, ``There has been some movement, but no real notable successes so far.''
The biggest setback was last month when developing nations succeeded in stalling U.N. Secretary General Kofi Annan's plans to overhaul management to give him more control in moving staff and programs.
Developing nations fear too many rich countries hold sway in the secretary-general's office and adopted a resolution with their objections in the General Assembly, which controls the budget.
Annan in March released a blueprint on overhauling the U.N. secretariat, in part an outcome of scandals in the now-defunct Iraqi oil-for-food program.
He sought greater financial oversight, simplified hiring and firing procedures, career planning, staff buyouts, a modern information system and flexibility in assigning staff. 
CONCERN IN CONGRESS
Bolton's statement came in response to comments by Sen. Paul Sarbanes, a Maryland Democrat, who said that the budget cap would affect salaries of U.N. peacekeeping officials and ''at some point you have to calculate whether it's going to impede some of these other major goals we have.''
Peacekeeping operations have a separate budget but many headquarters personnel would be affected by a budget cut.
Sen. Norm Coleman, a Minnesota Republican and a frequent critic of the world body, said, ``With each passing day, it becomes painfully clear the U.N. will impede any meaningful reform effort unless major donor states use their financial leverage.''
The United States is the largest single payer to the U.N. administrative budget with 22 percent. Japan pays nearly 20 percent and the European Union collectively pays 38 percent.
The 150 countries who voted for the resolution that restricted Annan's reforms pay only about 12 percent of the budget but overwhelmingly represent the world's population.