World Federalists of Canada
Return to Main Menu
Email Us
Membership Form

Citizens speak out against United Nations Financial Crisis

The following text reflects the contents of the October, 1998 World
Federalists of Canada Issues Action Briefing Paper #43. This paper was sent
by regular mail, along with supporting 'how to' and background information,
to members of the WFC governing Council and participants in the Issues
Action Program. If you would like to receive the background information or
are interested in organizing a Vigil Event, please contact the national
office of the World Federalists of Canada.

Summary Statement

The United Nations is now into the third year of the worst financial crisis
in the organization's history. The U.S. government is responsible for 60 %
of the UN's debt. While most governments seem content to just muddle
through and wait for the storm clouds in Washington to blow over, a growing
chorus of the world's citizens are saying "Enough is enough!"

In January 1997, newly elected UN Secretary-General Kofi Annan traveled to
Washington to meet members of the Clinton administration and the U.S.
Congress. President Clinton said then that the UN is critical for peace and
progress, but it needs reform. "That is why last year I believed so
strongly that the United Nations needed new leadership. . . . I am very
pleased that the UN chose Kofi Annan for the job. . . . The U.S. can't lead
the UN if it doesn't pay up, and, provided that there is real reform, the
U.S. funds will come through."

Since then, the UN has undergone sweeping reforms. But the U.S. still does
not pay. U.S. funding for the UN remains tied up in political knots with
other unrelated issues on Capitol Hill.

As of August 31, 1998, the total of all outstanding debts to the UN stood
at $2.6 billion ($843 million for the regular UN budget and 1,815 million
for the peacekeeping budget). U.S. arrears, ($569 million for the regular
UN budget and 1,041 million for the peacekeeping budget) now stand at $1.6
billion, accounting for over half of the UN's total shortfall.

In March of this year, UN Secretary-General Kofi Annan wrote in an article
published in the New York Times, "When I became Secretary General in
January 1997, I pledged that I would revitalize the role of the United
Nations and undertake top-to-bottom organizational reforms. I have kept my
pledge. Yet the United Nations, for all practical purposes, remains in a
state of bankruptcy. Our doors are kept open only because other countries
in essence provide interest-free loans to cover largely American-created
shortfalls -- not only NATO allies like Britain, France, Italy and Canada,
but also developing countries like Pakistan and even Fiji."

More and more of the world's citizens are dissatisfied with this state of
affairs. Many will take actions in their community to demonstrate their
support for the UN. This October 23, on the eve of United Nations Day,
concerned citizens around the world will protest the financial crisis by
participating in the Third Worldwide Vigil for the United Nations.
Money shortages are nothing new at the United Nations. The problem has
plagued the Organization since its founding in 1945. However, the magnitude
of the problem is now greater than at any point in its history.

States fail to pay their dues for a variety of reasons ranging from
budgetary technicalities to poverty. Most problematic is the withholding of
dues as a pressure tactic, to make a political point.


What about Canada?

An effective UN has always been in Canada's national interest. Canada pays
its UN dues on time, in full and without conditions.

Beyond occasionally encouraging others to pay up and support the UN, there
is more that states like Canada can and should do. Canada should support
the development of measures which would generate alternative, independent
and reliable funding for the UN. In particular, Canada should call for a
formal study of alternative funding by a UN Group of Experts, or initiate
consideration of the idea in Canada and then submit the resulting report
for formal consideration by the UN General Assembly.

Numerous proposals for alternative funding for the UN have been made by
economists, international non-governmental organizations and UN member
states. These include a wide range of measures for taxing the international
economy or levying taxes or license fees for uses of the global commons.
Many are designed to advance other desirable goals, such as the
much-discussed 'Tobin tax' (which would stabilize the international
monetary system), or a tax on excessive uses of fossil fuels (which would
help reduce global warming).

Such a study would not only explore the political feasibility of
alternative funding proposals. The act of calling for and carrying out such
a study would serve a political purpose. States like Canada, which
genuinely want the UN to work, would demonstrate that they are not willing
to stand idly by while others ignore their treaty obligations and withhold
UN dues.


Recommended Action

Canada should be encouraged to declare its support for the development of
sources of reliable funding for the UN, independent of and in addition to
state contributions.

The best way for Canadian individuals and organizations to support this
issue now is through participation in the Third Worldwide Vigil for the
United Nations. Additional background materials are included with this
Briefing Paper. Further materials can be obtained from the Global Policy
Forum, c/o 777 UN Plaza, Suite 7G, New York, NY, 10017, U.S.A., or through
the Forum's excellent web site (www.globalpolicy.org).

If you can't organize a vigil, it's nevertheless important to do something,
anything in your community to demonstrate your displeasure at the ongoing
underfunding of the UN. Even a small contribution makes a difference.

Remember that you are part of a worldwide process. It's very important that
your activity is reported to the Canadian sponsoring organizations, World
Federalists of Canada and United Nations Association in Canada.

This paper was prepared by Fergus Watt at the WFC national office with
files from Global Policy Forum.

World Federalists of Canada
207 - 145 Spruce St.
Ottawa K1R 6P1
CANADA

Tel: (613) 232-0647
E-mail: wfcnat@web.net
Web site: http://www.web.net/~wfcnat/WFC.html

Citizens speak out against United Nations Financial Crisis
Issues Action
Briefing Paper No. 43
October, 1998



World Federalists of Canada
Return to Main Menu
Email Us
Membership Form