TRANSCRIPT OF PRESS CONFERENCE BY SECRETARY-GENERAL KOFI ANNAN AT UNITED NATIONS HEADQUARTERS ON 17 MARCH

Press Release
SG/SM/6183

TRANSCRIPT OF PRESS CONFERENCE BY SECRETARY-GENERAL KOFI ANNAN AT UNITED NATIONS HEADQUARTERS ON 17 MARCH

FRED ECKHARD, Spokesman for the Secretary-General: The Secretary- General has a brief presentation for you on the latest steps in his efforts at United Nations reform. He will take your questions afterwards, and following that Maurice Strong, the Executive Coordinator on United Nations Reform, will brief you in detail and respond to your questions in full. Mr. Secretary- General?

SECRETARY-GENERAL: Thank you very much, Fred. Good morning. I am pleased to be with you today, and to be able to announce some of the managerial initiatives which I am going to take today. I think I made it clear from the beginning that I was approaching it on a two-track basis: track 1 covering actions and initiatives that I can take under my own authority; and track 2 dealing with longer-term and strategic issues which only the Member States can decide.

I consider reform a powerful tool for strengthening the Organization, and not an end in itself. The management reform measures I have indicated are designed to help transform the Organization into a more effective instrument and for serving the international community. These improvements will be accomplished -— and in a manner that revitalizes the spirit and commitment of the staff and renews confidence in the future of the Organization.

I believe that after 50 years of existence this institution that we call the United Nations has brought immeasurable good into the world. Looking at the institution today, I am proud of what we accomplish every day in every one of our posts. But I am also convinced that through these reforms we can do even more good, even more efficiently, in this era of challenge and expectation, by revering our heritage, by embracing our current initiatives and by reshaping our United Nations. I feel certain that we can continue to fulfil our mandates as we move into the next millennium.

Today I have 10 points to propose to you, and they are all within track 1. I think you have on the board the first steps that I have taken; these were announced about six weeks ago. I have appointed an Executive Committee which is made up of all the Under-Secretaries-General and Heads of programmes and funds. We meet regularly under my chairmanship to harmonize our activities, to share information and to take collective decisions.

We have also established in this area what I call the Executive Committees, which is empowerment of the Departments. Here, I have grouped together 30 United Nations entities into four areas, covering: economic and social; developmental operations; humanitarian affairs; and peace and security. They meet regularly to coordinate and harmonize the activities, take decisions and refer to me those decisions that they think I should take. And so by grouping 30 units into four, they are required to cooperate and to work together.

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That is also a powerful message for the rest of the Organization and for the Secretariat, not only here at Headquarters but down in the field. If those in the field realize that their Heads of departments and agencies are coordinating and sitting regularly in New York, they will begin to do the same in the field. On top of this card is the Executive Coordinator, Mr. Strong, whom most of you know. He is here, and after this interview, Mr. Strong will be available to give you further background briefing. He is a key man in this effort. Although I am leading the effort, Mr. Strong is here to assist me in coordinating the reform effort and to ensure that our efforts are comprehensive and that every part of the Organization is involved in that effort. Before I get to the next step, I will turn to the measures I am announcing today. The first is the budget. I intend to submit a 1999-1998 budget that will be $123 million less than the current one -— $123 million cut. Concerning staffing levels, my budget submission will indicate a cut of 1,000 posts. Turning to item 3, administrative costs, it has been determined that 38 per cent of our budget goes to administrative costs. I believe this is too high and have instructed that measures be taken to reduce that percentage by a third by the year 2001, freeing up additional resources for economic development. Four, improved United Nations integration at the country and field level. Here I have decided that the position of United Nations Resident Coordinator as my representative in the field must be strengthened and enhanced, that he should be the team leader at the country level, and that all the United Nations agencies operating on the ground should come together and prepare a country programme in coordination with the Government concerned and play their role in implementing their respective components of the programme they have thus elaborated. I would also push ahead with common premises for the United Nations in all the countries concerned. This will require them to work daily to coordinate their efforts, and it would also permit us to take advantage of common staff cuts and pooling of efforts, which would also release additional funds for the field. The next item concerns the consolidation of the economic and social departments. At present, we have three departments in the economic and social area. I believe that it is essential to bring them together to consolidate our efforts in the economic and social field. I have decided, therefore, to integrate these three departments into one. Some of the activities of the third department, Department for Development Support and Management Services, will also be redistributed to the other departments.

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Next is the streamlining of technical support for the intergovernmental bodies. I believe that it is possible to improve and strengthen the way we service intergovernmental machinery. I have therefore decided to create a new department of General Assembly Affairs and Conference Services. This, I hope, will strengthen the services we provide to Member States and introduce coherence, quality and efficiency of services that we provide to intergovernmental bodies.

The next item I will announce today concerns the Department of Public Information, and I am sure you all are very interested in this one. I intend to reorient the work of the Department of Public Information. The Department of Public Information, as it now exists, will be transformed into a new Office of Communications and Media Services to strengthen the capacity to provide relevant and timely communication services to Governments, media and civil society.

The next item on the list is the consolidation of administrative, financial, personnel, procurement and other services. These are areas that I believe may benefit from common services by pooling our efforts. When I refer to common services it does not mean I am taking anything from the managers. I have indicated I will delegate authority to managers, but in some instances, by creating a common service, one is able to give them much more economic and effective support for their work. We will try and see to what extent we can consolidate all the different offices which exist within the United Nations and its programmes and funds for procurement, personnel, financial and other services to see if we cannot all gain from consolidation.

Now the code of conduct. We heard a great deal about this and we have created a new code of conduct which I have asked the staff to review and to comment on. We are consulting the staff, as good managers, and once we have the staff comments we will put this to the Member States for approval in the course of the next few months.

The final item on this list is a reduction of documentation. I think we produce far too much paper in this Organization and I am determined that we should reduce it. I have set an immediate target of 25 per cent reduction by the end of 1998. I think we can do further reductions and I will press on. I think most of you are also concerned with the volume of paper you have to go through. I once jokingly said that I sometimes worry that this building will sink under the weight of the paper it generates. So I am happy to be able to do something about that.

This is a part of track 1. It is not excluded that between now and July I will make other announcements and take other initiatives in the managerial and organizational area. We will then continue to work on track 2. The work has already begun where we will give longer-term proposals to the Member States. That report in July will include a summary of all the actions I have

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taken from January until then and give proposals to Member States on the big issues that they will have to pronounce themselves on. This will include the mission of the United Nations -— what we should be doing, what the core activities would be -— and I hope that we will get clear support and signals from the Member States. Once we get that we will begin again to reorient the work of the Organization to focus on those core activities.

I will now take your questions and then Mr. Strong will be available.

QUESTION: Thank you Mr. Secretary-General. On behalf of the United Nations Correspondents' Association (UNCA) I would like to welcome you here and wish you the best of luck on your reform steps.

I have a two-part question. Reform. There is an impression that this is very much a prerequisite by the North, whereas in effect the reform of the United Nations is just as good for the South. Are you satisfied with the level of involving the South in this process, governmental and otherwise? My second point is on your code of conduct. Do you have in mind accountability, and in what shape?

SECRETARY-GENERAL: I think the reform is welcomed by all Member States, North and South, if we define the objective as an attempt to make the United Nations a leaner, efficient, more effective and more relevant Organization to serve better the interests of Member States. I have had the opportunity, since my appointment, to consult, I would say, all the Member States in the five regional groups -— in large groups and in small groups -— and they are all for reform, but the right kind of reform.

My hope and trust is that they -— both North and South -— will support the package I put forward today. Obviously, not everybody will like all the proposals I put forward. I consider them comprehensive, fair and competent, although they are only part of the package that I will be putting forward over the course of the year. But I think when it comes to reforming an organization like ours, it is one of those situations where we should all remember what Ben Bella once said: We should all be prepared to die a little and give a little to allow things to move forward. And I am sure that this will happen in this case.

As regards the code of conduct, yes, it deals with accountability, it deals with financial disclosure by senior officials, and it also deals with the question of the highest levels of conduct and professionalism.

QUESTION: Regarding the consolidation of the three economic and social departments: It was tried in your predecessor's time, and it did not work. How is it going to be different this time? Who is going to lead the effort?

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SECRETARY-GENERAL: First of all, I was not too involved with what my predecessor did at that time, so I cannot comment on how it was done. On this occasion, we have undertaken intensive consultation and analysis of what needs to be done and why it has to be done. We have not only analysed it and consulted extensively; we have also come up with a timetable and a scheme for implementing the decision. It is not going to be done in a rushed manner. It is going to be managed. Change has to be managed and we will manage the process. It is hard, thought-out analysis and consultation which have lead to this decision, and I am convinced that with the effort and thinking that went into it, we are going in the right direction, we are taking the right decision, and I can assure you that I have no intention of coming back a year or six months from now and recreating three departments or two departments. We have given it a lot of thought, and I think it will stand the test of time.

QUESTION: Who will head it?

SECRETARY-GENERAL: I will come back to you on that later. I had not intended to make personnel announcements. I think that when we confuse the personnel with the organizational structure sometimes the discussions get distorted. So you will hear about the personnel aspects of this later.

QUESTION: You say that 1,000 posts will be cut. How will those cuts be distributed over the various departments and what portion of those posts are already vacant?

SECRETARY-GENERAL: I think that as we prepare the next budget, we will be strongly guided by the priorities established by the Member States, and we will distribute the resources of the Organization in accordance with the priorities set by the Member States. And so the cuts and the resources assigned to departments are not going to be done across the board, which is really a blunt way of doing it. There has to be some analysis and some priority setting.

We have quite a lot of vacancies already. We have about 1,000 posts, and probably more. And I do not intend to fill them. I intend to cut them. I will propose that they be reduced. Of course the decision is up to the Member States. But in making this proposal, I will be able to convince the Member States that we are restructuring and streamlining ourselves so we can do more with less, or the same with less. And, therefore, the programmatic aspects of our work will not suffer unduly.

QUESTION: Can you tell us how you are going to reorient the Department of Public Information? My concern is for a small, beneficial office of the Department of Public Information. Are we going to lose it?

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SECRETARY-GENERAL: No, I think there will be extensive consultations with Member States and with groups like UNCA as to how we go about this reform. It is not anything we are going to do in a hasty manner and create a counterproductive situation. The objective is to make us more effective and more relevant, and as I said, to provide better service to the media, civil society and others. And so, in effect, if we do it well we will strengthen our cooperation with you and you will get better service from the Organization.

QUESTION: I imagine your critics in the United States Congress are going to want more than 1,000 jobs cut. What is your response to that? And also, how does the plan by the United States to pay the $900 million only if they see progress affect all of this planning?

SECRETARY-GENERAL: If they are going to want more than 1,000 posts cut, I cannot comment on that. From where I stand, you can only make these cuts after serious analysis, consultations and review of what needs to be done and what mandates the Organization has. If they want to cut more than 1,000 posts, I really cannot comment, because I do not know the analysis, the thinking and the rationale behind any such position.

But this is a serious proposal. It has been analysed, it has been discussed and we know that it will not gut the Organization. And after all, the purpose of the reform is to make the United Nations a much more efficient, much more effective Organization better able to serve the Member States. And at this stage, any demand for deeper cuts I do not think would be wise, in accordance with our analysis.

QUESTION: Is the debt of $900 million holding that back?

SECRETARY-GENERAL: I have always been optimistic that the money will come. I think the President and the Administration are committed to paying what they owe and I think there is a large number of Congressmen and Congresswomen who also want to pay. I think a large number of American citizens are embarrassed that their Government owes. They are not happy and impressed to see their Government described as the largest deadbeat by small and poor countries.

So I think there is lots of goodwill out there to pay. The Congress has said they would pay if there is reform. I think you can see from this morning that we are giving them reform. Reform is good for the Organization. Member States want reform. What the United Nations wants is what the United States wants. We will deliver and I hope that they will also deliver their part of the bargain.

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QUESTION: On the question of accountability, one of the problems over the last few years has been that there have been lots of disciplinary cases against staff where the Administration has ignored the lower tribunal's finding of innocence and then pursued it right to the Administrative Tribunal, where the verdicts have been overturned. The Skylink people, for example; the recent Washington, D.C. information officer case; the Somalia case. In all of these, somebody has taken precipitant decisions against people, ignored all of the impartial tribunals and left it to the final stages before a costly verdict for the United Nations. Are you going to reform the internal justice system and make sure that its verdicts are speedily adhered to rather than dragging it out and fighting it right to the end? SECRETARY-GENERAL: I think that this is an Organization that should respect the rule of law. It is an Organization that should accept and respect our own internal legal procedures and practices. It is an Organization that should not condone the kinds of things you have referred to. As part of the new spirit of accountability, I would hope that that, too, will change. I know staff have often asked me: "What do you do to those managers who commit these errors and go on to have a career and sometimes get promoted?" I think that also ought to change and I trust you will see some changes in that area as well. QUESTION: With the cuts in the budget, the United Nations budget will perhaps fall below that of the New York Police Department. This Organization is servicing 185 countries. Do you think that, with the cuts in the budget and the reduction in staff which started several months ago -— and you are going to reduce again by more than 1,000 posts -— it will be good enough to keep the level of the servicing of this Organization? Secondly, with the budget reduction, are you going to change the ratio of the payments of the Member States? SECRETARY-GENERAL: Let me first say that the United Nations budget as it now stands is already lower than the budget of the New York Police Department. So, by streamlining it, yes, it will still be less. But still, the Member States do not pay. About 80 Member States owe. We often refer to the United Nations budget being "peanuts" and lower than the budget of the New York Police Department. I agree with you. Why, then, are Member States not paying? The weight we are putting on them is not onerous. I would hope that part of the reform that we are all discussing will be rededication by Member States to the ideals of the Organization and a commitment to pay their dues in full and on time. It should be an essential part of any reform that we are discussing here in this building.

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As far as the impact of the cuts on the activities is concerned, we have studied it and reviewed it and indicated that, with different work methods, further computerization and streamlining of our procedures, we should be able to deliver on mandates without negatively impacting on them because of the cuts.

QUESTION: Any views on the ratio of the scale of assessments?

SECRETARY-GENERAL: A fair assessment. In fact, there is a committee of Member States reviewing the scale of assessments. Obviously, if the budget is reduced everybody will pay a little less. But over and above that, there is a committee discussing the scale of assessments. There are indications that the United States may wish to reduce its contribution from 25 per cent to 20 per cent of the regular budget. But this is a discussion that they will have to hold with the other Member States, whom they have to convince.

QUESTION: On the staff reductions, what is the deadline? When would you have 1,000 fewer people? You mentioned that there are about 1,000 vacancies right now. Is that normal, or has there been a conscious effort not to fill posts? That would also suggest that this can, perhaps, be done without laying off anybody who is here right now. Is that what you have in mind?

SECRETARY-GENERAL: Let me say that, yes, there are about 1,000 vacancies. It was a deliberate policy to try to streamline the Organization. The next budget, which I will be putting forward to the Member States, will get to them next month, in April. The Member States will determine the level of the next budget, and the level of staffing, by December this year. So, as we move into the next budget period, 1998-1999, the budget of the United Nations will show 1,000 fewer posts. As I indicated, if the currency and inflationary figures hold, that will be $123 million less than we spent during the current biennium. And if I cut the assistant posts which are vacant, the impact on the staff will be minimal. I think the house has been perturbed for quite a long time. We will make the economy; we will streamline; we will eliminate the 1,000 posts, and then begin to train the staff who are on board; give them the skills they do not have; bring in, down the line, skills we do not have; and invest further in computerization.

QUESTION: The list does not include the question of raising the resources of the United Nations as a priority. Is it not a priority to try to get countries to pay, and raise funds in other ways, rather than, like the three first points, reduce, reduce, reduce?

SECRETARY-GENERAL: I made a reference to that. That is why I said that payment of obligations to the Organization is an essential part of the reform. And I think you are going to see that very much as part of track 2, when we put together our detailed and comprehensive package. This is only part of the

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effort. This is not a comprehensive package. It is part of track 1; there will be a further track 1 announcement. And then, in track 2 in July, when we do the comprehensive package, some of the things you are not seeing here today will be there. QUESTION: Mr. Secretary-General, while you propose the reduction of the staffing level here in the Secretariat, you are proposing to improve United Nations integration at the country level. Does the second step entail any budgetary posts? SECRETARY-GENERAL: I think I have explained why we can cut 1,000 posts and why we can do it without impacting negatively on the programmes. And I have referred to our activities at the country level, where we would hope to be able to consolidate our efforts and pool our efforts on the ground to have a greater impact. If additional resources are needed in the field in the programmes, and the funds to get the work done on the ground, this will be determined by analysis of the programmes that have to be implemented. I do not think I can say off the cuff that the field will require and should get additional resources. It will depend on programmes and what they have to do. I will take two more questions. I have been talking a lot today: I just came from the General Assembly's Fifth Committee (Administrative and Budgetary), so do excuse me. QUESTION: Something of a clarification, then a sort of housekeeping question. You mentioned the media services. A lot of the information coming out of the building most rapidly comes out of the optical disk system (ODS). There have apparently been a lot of complaints from non-governmental organizations that access to them is going to be provided at a cost of something like $1,000 a month. I do not know whether that stuff is available to the press, but can you give us some idea. The problem with this is that, down the line there is some concern that information that is made available on the Internet for free will not be accessible, or that certain agencies will not put information on the Internet, but they will put it on the optical disk. The basic question is, are we all going to start having to pay for information we get from the United Nations in a timely manner? SECRETARY-GENERAL: I do not think our intention is to make things even a bit more difficult or a bit more expensive for you. I think everybody is excited: every time I turn around, they say, "We got 2 million hits this week. We got 3 million hits on the Internet!" I think the intention is very much to go that route: to simplify your lives and to simplify and enhance our capacity to get the news out. So I am not sure that the intention will be to go via optical disk and create more financial costs or difficulties for you. But as I have indicated on this -— and I think that Mr. Strong will be talking to you further -— we are going to have further consultations, and everybody in the group will be set up to implement the transformation of the Department of Public Information (DPI).

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QUESTION: Just a clarification on the staff cuts. Last year, your predecessor tried to forcibly remove people from posts in this building, and the General Assembly basically sent them back upstairs and said, "Forget it". Do you have the power to undertake the kind of staff cuts that he tried, or are there limitations on what you can do in terms of reducing staff here in the building?

SECRETARY-GENERAL: We can make the cuts; we can make the changes. But I would also have to respect the rule of the General Assembly and the Member States. In any organization, change has to be managed, and part of that management process is touching base with all the stakeholders and all those who can make your reform proposals unravel. That is also one of the reasons why I have taken considerable time to consult extensively with Member States and with the Staff Council to make sure that they all understand what I am doing, and hopefully to get them to embrace our programme for reform and work with me in implementing it. I think we have a solid proposal; we have a bold proposal. We are going to manage the change, and we will get it done.

QUESTION: Mr. Secretary-General, you mentioned that you had already proposed a reduction of 25 per cent of paperwork here in the United Nations. There is an estimate that per month there is a production of even 1 million photocopies in the International Criminal Tribunal for the Former Yugoslavia in The Hague. You have been there; have you proposed something that would confirm your decision to stay on the track of reform even in that field?

SECRETARY-GENERAL: I did not go to The Hague, to the Tribunal, to discuss paper reduction, so I am afraid I did not go into that. I discussed much more substantive and political issues, and the viability of the Tribunal, and how we can make it more effective and how we get the indicted to the court so that they can do their work. But I am sure that the decision to reduce 25 per cent is not lost on any entity within the United Nations.

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