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SG/SM/5920

SECRETARY-GENERAL ELABORATES ON ORGANIZATION'S REFORM IN STATEMENT TO GROUP ON STRENGTHENING OF UN SYSTEM

11 March 1996


Press Release
SG/SM/5920


SECRETARY-GENERAL ELABORATES ON ORGANIZATION'S REFORM IN STATEMENT TO GROUP ON STRENGTHENING OF UN SYSTEM

19960311 Following is the text of the statement delivered by Secretary-General Boutros Boutros-Ghali today to the Intergovernmental Working Group on the Strengthening of the United Nations System:

I greatly appreciate the opportunity to address this Working Group as part of a dialogue that I hope we will continue in the months ahead.

The task before you -- and the other Working Groups of the General Assembly charged with various aspects of reform and restructuring -- is a crucial one. It is, in the words of the heads of State and government who gathered in New York to mark the fiftieth anniversary, "to give to the twenty- first century a United Nations equipped, financed and structured to serve effectively the peoples for which it was established".

The challenge is, in the first instance, political. The process must be driven by substantive rather than procedural considerations.

For 50 years, the peoples of the United Nations have sought progress through their world Organization. Today's United Nations is the product of generations of work by dedicated men and women. It is the practical manifestation of a dream of universal solidarity and progress for all peoples.

Today, the process of globalization is accelerating. The forces of fragmentation are at the same time intensifying. These phenomena, and the new opportunities and new global problems they are creating, make the need for an effective United Nations greater than ever.

Our agenda -- containing conflicts, redressing inequalities, combating poverty -- is crucial. The United Nations will be increasingly important in addressing this agenda. But change is needed because we have learned that:

-- we must be clear about our priorities; -- we must shape our missions to our means; -- we must not spread ourselves too thin; and -- we must act not only on the symptoms but also on the root causes of problems.

Change should be perceived: not as an imposition, not as compromising Charter objectives, not as affecting basic directions, but as adapting structures and methods to the new global environment we have helped bring about, and in light of the lessons we have learned in the process.

To be effective, reform must be rooted in consensus on the role of the Organization and its priorities in this new global environment. I believe such a consensus is beginning to emerge.

In the political and security area, the process of reflection, to which I sought to contribute through An Agenda for Peace, and the supplement I issued in January 1995, appears to be gaining momentum.

In the economic and social area, the continuum of major global conferences is forging a new consensus on global challenges and the role of the United Nations in addressing them. These conferences are giving impetus to the intergovernmental discussions on An Agenda for Development, under the aegis of the General Assembly.

Building on this emerging vision for a United Nations of the future, I want to share with you my assessment of the situation as I see it.

We need a streamlined, more coherent and responsive Secretariat. It must possess the highest standards of efficiency, competence and integrity. It must be structured to provide the most integrated and effective support possible to Member States and the intergovernmental machinery.

We need intergovernmental machinery that is less fragmented, better able to affect global forces and more open to civil society. It should operate consistently at the political level which ultimately shapes all areas of the Organization's mandate.

And we need an Organization in which all principal Organs function in the balance and harmony envisioned by the Charter. This means an Organization with a clear sense of its comparative advantages and priorities, conscious of the linkages among all dimensions of its mission, and where tasks and means, mandates and resources, are effectively matched.

How do we go forward on all of these fronts?

A look at the record will reveal that significant reforms have been taking place within the Secretariat over the past four years. Advancing and managing this process of change has been a key objective since I took office.

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Early in 1992 I initiated a process of consolidating related Secretariat functions and activities. This reduced the number of high-level posts by 23 per cent, from 48 to 37.

I pursued this effort to create a simpler structure and clearer lines of responsibility in the reorganization which I proposed to the General Assembly in 1993. In the political area, the diffused structures existing at that time were simplified and reorganized in two Departments: political affairs and peace-keeping operations. Reorganization in the economic and social area enhanced the capacity of the Secretariat for data gathering and analysis. Integration of economic and social work enhanced the coherence of substantive support to the intergovernmental machinery. And the technical cooperation work of the Secretariat was reoriented to become more focused.

In both the political and the economic and social areas, the reorganization was built around basic Secretariat functions, rather than the evolving structures of the intergovernmental machinery. It was designed to facilitate further streamlining and consolidation in the future.

The reorganization did not affect the basic structure of United Nations programmes and funds. It did, however, unlike previous restructuring exercises, involve relocating offices between United Nations centres in order to consolidate related activities or to create new synergies among them.

During this period, the General Assembly took the initiative to establish new high-level posts in priority areas such as the Under-Secretary- General for Humanitarian Affairs and the High Commissioner for Human Rights. Notwithstanding these additions, such posts now number 33 per cent less than 10 years ago.

The dramatic increase in peace-keeping and other United Nations operations has required the services of a number of special envoys or representatives. To minimize the establishment of high-level posts, I have endeavoured to make term appointments so that these posts do not, as often happened in the past, become part of the basic Secretariat structure.

These measures have been accompanied by the development of a comprehensive management plan aimed at enhanced performance, greater productivity and increased cost-effectiveness. The plan is designed to create a new management culture conducive to innovation and change. It strengthens the management of human resources, technology and the Organization's cost structure.

By incorporating important efficiency gains, I was able to propose a programme budget for the 1996-1997 biennium which represented a significant reduction compared with previous budgets, including a reduction of some 200

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posts. The total number of staff is now 17 per cent smaller than it was 10 years ago.

I am currently examining ways to make the significant additional reductions required by the General Assembly. As I indicated in my statement to the working group on financing, this will involve staff reductions and reductions in non-staff costs. Spending will be reduced by more cost- effective ways of implementing mandates, by rationalizing work programmes and by technological innovations. An Efficiency Board, chaired by the Under- Secretary-General for Administration and Management, is working to identify further opportunities for reducing costs. The Office of Internal Oversight Services is contributing to more effective and efficient programme management.

Today, even the harshest critics of the United Nations must acknowledge that serious Secretariat reform is well under way.

Carrying this process forward will require mutually supporting actions by the Secretary-General and the Member States. We must be clear as to where the main responsibilities lie. We must be clear about where the main leverage for positive change can be found. And we must be clear about the main obstacles to progress.

The first and greatest obstacle is the financial crisis. The statement I made to the high-level group on the financial situation describes the magnitude of the situation. The facts and figures are well known to all.

Day-to-day management of the cash-flow crisis is diverting attention and resources that instead should be devoted to the efficient management of the Organization and to carrying forward the reform effort.

Consolidation and integration are key not only to greater effectiveness, but also to greater efficiency and savings. But reform cannot ultimately succeed unless it is rooted in a predictable and assured financial basis. Unless a comprehensive solution is found, the progress already made on many fronts will be jeopardized.

Another major obstacle is the complexity and rigidity of the budgetary process. Programme budgeting should be, for both Member States and the Secretary-General, a key instrument for priority-setting, for adapting the Organization to changing requirements. It should serve to match agreed tasks with the requisite resources. It should be one of our principal means of managing change.

But as currently functioning, the process does not provide an effective instrument for policy direction and management for either the Secretary- General or Member States. I believe we must simplify the process and ensure a

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genuine policy discussion on the budget that addresses both programmatic and resource aspects.

The budget process needs to be more flexible. This is essential if I am to be able to make the best use of the staff at my disposal. Once the size of the staffing table is decided upon, I need the flexibility to redeploy staff among domains of activity, subject, of course, to effective ex-post facto controls. When I took office, I experimented -- successfully, I thought -- with utilizing a limited number of vacancies to redeploy posts on a short-term basis to meet priority or unexpected needs. But I was unable to get the latitude from the General Assembly needed to continue this practice. Subsequent developments, including growing budgetary constraints, have made the need for such flexibility even more pressing.

A fundamental obstacle to further rationalization is the multiplicity of separate programmes and funds in the economic, social and humanitarian sectors.

According to the original conception of the Charter, the responsibilities of the Organization in these sectors were to be carried out primarily through coordination vis-à-vis the specialized agencies. The General Assembly established separate programmes and funds in response to a perceived need for additional instruments to fulfil the economic and social responsibilities of the Organization. In most cases, these programmes were called to address inter-sectoral issues, thus supplementing the sectoral-based structure of the specialized agencies.

These programmes have been a source of strength and vitality for the Organization. They have diversified the sources of funding for development work. Their sheer number, however, has created, over time, definite problems in terms of policy coherence, and the span of control of the Secretary- General.

We must preserve the advantages sought by the Assembly in establishing these programmes, while at the same time correcting the policy coordination problems that have arisen.

Another key issue in advancing the reform agenda is the capacity of the intergovernmental machinery to provide clear and coherent policy direction.

There is a need for better balance in the functioning, responsibilities and authority of the Security Council, the General Assembly and the Economic and Social Council, as required by the Charter. The Advisory Committee on Administrative and Budgetary Questions (ACABQ) and the Fifth Committee also should seek a more effective relationship.

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The General Assembly is the symbol of the universality of the Organization. I see the Assembly performing on a continuing basis the role that the special world conferences have been playing in recent years. I see the Assembly addressing comprehensively, and at the highest political level, the major global issues facing the international community. I see the Assembly fostering national and international commitments. The Assembly's role should be one of synthesis and overall policy assessment and coordination vis-à-vis the membership, as well as the United Nations system. The length of its agenda and its committee structure and procedures are increasingly proving to be impediments to the effective performance of this role.

The strengthening of the Economic and Social Council has been a long- standing item on the reform agenda. It received special attention in the "Group of Seven" communique at Halifax and currently is being considered by two working groups. I see two priority requirements here: Ministerial participation, and increasing involvement of the new players on the global scene, in the high-level segment; and a decision to bring the reforms initiated so far in relation to operational activities a step further, so as to enable the Economic and Social Council to exercise an effective role of governance over all the operational funds and programmes of the Organization.

A related issue to be addressed is how best to provide -- in the General Assembly or the Economic and Social Council -- for the governance of the emergency relief activities of the United Nations, including its programmes and funds.

There is little doubt that the subsidiary machinery of both the General Assembly and the Economic and Social Council is in need of further serious streamlining. The current structure is not conducive to coherent policy development. Member States speak with different voices in different fora. And demands on the Secretariat for servicing and documentation often duplicate each other.

These reforms would provide a strong basis for further streamlining and consolidating secretariat structures. I consider it essential that the next steps to be taken in this direction should encompass not only the central Secretariat, but also the secretariats of the programmes and funds of the Organization.

Subject to progress in intergovernmental reform, a new framework built on previous restructuring and based on clear, Organization-wide clusters of activities is possible. Such clustering should serve to reduce the lines of reporting to the Secretary-General while at the same time preserving the institutional integrity of each programme and fund. It could also contribute to a further reduction of high-level posts throughout all secretariats.

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Clusters should be constructed from the bottom up. They should serve to eliminate, not add to, layers of bureaucracy. They should help do away with duplication in administrative support services and overlapping in programmes. They should serve to create critical masses of capacity and expertise for the Organization as a whole. The sphere of responsibility involved in each cluster should be manageable, and bridge basic dimensions of the functions of the Organization. Each must be built on a solid policy foundation.

The next programme budget, on which work will begin soon, can be the context for placing a new framework before the membership for review and approval.

Meanwhile, in order to move ahead promptly, I have directed that a number of management reviews directly relevant to this process be accelerated. Mr. Connor will provide you with details of these reviews.

Together with structural reform, a key requirement for a stronger and more effective Organization is a Secretariat with the highest standards of "efficiency, competence and integrity". There has been excessive, often ill- informed, criticism of the Secretariat. Frequently no distinction is made between the functions and responsibilities of the Secretariat and those of the other principal organs.

In fact, Member States have in the Secretariat a unique international civil service. Its geographic, ethnic, linguistic and cultural diversity cannot be matched by any other work force in the world. The overwhelming majority of United Nations staff are highly qualified, bring to the Organization a wealth of experience and diverse perspectives. And, in recent times, very small staffs in many parts of the Organization have taken on significant additional responsibilities, with little or no reinforcement.

As international civil servants, United Nations staff do not have the protection enjoyed by many national public service employees. Nor do they have the advantages of most diplomatic staff working for national Governments. My experience, and that of my colleagues in the Administrative Committee on Coordination (ACC), is that conditions of service are no longer competitive. The International Civil Service Commission has now concluded that they are not in accordance with the Noblemaire Principle. As Secretary-General, I need your support to ensure that conditions of service are such that we can continue to attract and retain highly qualified personnel.

Efforts at organizational reform will be successful only if accompanied by strong political support for the integrity and independence of the staff. Article 100 is highly relevant in this regard. In the same context, I reiterate my belief that the practice of national subsidies paid to some staff

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members is unethical and unacceptable. The highest standards of integrity should not be compromised, even by implication.

I believe that the Secretariat of the future must be comprised of a core international civil service -- which constitutes the independent heart of the Organization and provides experience and continuity -- and short-term staff with the particular skills needed for a certain time-frame or specific set of tasks. I have a strong commitment to training as a crucial component of improved management and performance. I need the support of Member States in supporting this critical investment for the future. In an Organization whose staff is its major asset, the quality and motivation of its personnel will be an important factor in effectiveness of the reform effort.

I am convinced that more coherent and streamlined central intergovernmental machinery, and a streamlined and better coordinated Organization, can go a long way towards advancing policy coordination throughout the system. At the same time, we all know that reform is on the agenda of virtually every agency of the system. I have recently intensified my personal contacts with the heads of the Bretton Woods institutions and the World Trade Organization, as well as with other executive heads. A key objective of these consultations, and of ongoing discussions in the ACC, is to ensure that these processes build on each other and result in a more effective and coherent United Nations system.

I believe that we can create a United Nations that is truly universal in its outlook, and more participatory in its methods. A United Nations with a clear mission and a well defined scope. An Organization whose operations are streamlined and efficient. An Organization whose approach is coherent, and whose activities are well coordinated. An Organization whose structures are responsive, and whose administration is flexible. An Organization whose objectives are concrete, and whose activities produce tangible results. An Organization whose financial basis is solid, and whose public and political support is secure.

For all of its imperfections, the United Nations has served humanity well in dangerous and difficult times. Let us now move forward in the spirit of partnership that is required, and in the shared belief that the future requires a strengthened United Nations system.

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For information media. Not an official record.