SECRETARY-GENERAL, PRESENTING FIRST BUDGET PROPOSAL, REAFFIRMS COMMITMENT TO TRANSFORM ORGANIZATION INTO DYNAMIC INSTRUMENT

22 October 1997

Press Release
SG/SM/6369
GA/AB/3175

SECRETARY-GENERAL, PRESENTING FIRST BUDGET PROPOSAL, REAFFIRMS COMMITMENT TO TRANSFORM ORGANIZATION INTO DYNAMIC INSTRUMENT

19971022 Members Must Provide Assured Political and Financial Support

Following is the text of Secretary-General Kofi Annan's statement in presenting his 1998-1999 budget proposal to the Fifth Committee (Administrative and Budgetary) this afternoon:

As Chief Administrative Officer of the Organization, I am here to present to the General Assembly my proposed programme budget for the biennium 1998-1999. This is my first programme budget proposal as Secretary-General.

My presentation comes at a time when, as we heard during the general debate, the world is looking to the United Nations to revitalize itself so that it can better serve the needs of the international community in the new century.

And it comes at a time when the General Assembly, in informal plenary sessions, is deliberating on the comprehensive and far-reaching measures for organizational reforms that I submitted to Member States on 16 July -- a set of measures designed to achieve that revitalization.

I firmly believe that the very future of this Organization hangs in the balance. That is why I have urged Member States to move expeditiously to complete their consideration of the reform proposals at this session, and why you will soon be asked to give advice to the General Assembly on the financial implications of my proposed reforms.

This is the first programme budget proposal that falls within the medium- term plan for the period 1998-2001. The General Assembly has stipulated, among other things, that it should reflect a real level of resources well below that of the current biennium. As we all know, that budget was itself the subject of a significant reduction mandated by the Assembly.

The resources requested for the 1998-1999 biennium amount to $2,583 million. While this represents a reduction, in real terms, of $124 million, it has been possible to increase the resources earmarked for

economic and social development. Compared with the previous biennium, such allocations have risen by about $56 million.

The staffing table of 8,839 posts represents a net reduction of 1,182 posts. This number reflects the abolition of 865 posts, the transfer of posts as a result of net budgeting, conversions from temporary assistance to established posts and the proposed creation of new posts.

The distribution of resources has been guided by the priority areas identified in the medium-term plan, and by the level of resources in the budget outline approved by the General Assembly. As decided by the General Assembly, the proposed budget does not include provision for special missions that have no legislative mandates in 1998-1999. In formulating my proposals, efforts have been made to reduce administrative costs, to rationalize work programmes, to reorganize structures and to redistribute responsibilities and functions. Streamlining will continue, aided by automation and other technological innovations.

The programmatic and financial implications of the reform proposals appear in document A/52/303; they are primarily of an organizational and managerial nature and do not affect mandated activities. Once the General Assembly is ready to make its decisions on reform, this Committee will have to provide advice and recommendations on the implications of those decisions for the programme budget.

Implementation of the proposed programme budget and of the reform plan will not be possible unless the financial soundness of this Organization is restored. The current situation is precarious and debilitating. The United Nations must have the resources it needs to fulfil its potential.

This is a joint responsibility. I reiterate my commitment to ensuring that the Secretariat can respond to the challenges and concerns of all Member States. I am also committed to transforming the Organization into a dynamic and responsive instrument that upholds the highest standards of management, cost effectiveness and accountability. Member States, for their part, must deliver on their own obligation to provide continuous, predictable and assured political and financial support.

The Organization's future also depends on the quality and competence of its staff. My proposed human resources programme focuses on improved procedures for recruitment and placement that will provide better support to managers in the management of their staff resources. I am also proposing a 25 per cent increase in the resources for training. Staff development at all levels is an essential investment in the capacity of the Organization to improve, change and adapt.

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I wish to pause a moment to acknowledge with deep gratitude the dedication of United Nations staff around the world. Many have had to acquire new responsibilities and adapt to unfamiliar tasks, not as a logical step in career development but as a result of budget reductions and reorganization. Many work under difficult conditions in areas of conflict and strife. Many have risked or given their lives. The commitment of staff to the ideals of the Organization has been unwavering and their adjustment to uncertainties and new challenges has been commendable.

As both the Advisory Committee on Administrative and Budgetary Questions (ACABQ) and Committee for Programme and Coordination (CPC) have pointed out, the United Nations in recent years has faced almost constant change. Recurring waves of financial difficulties have been with us since 1987.

This has made the entire budget process -- from preparation and approval to implementation -- much more complex. The application of General Assembly resolution 41/213 and the Financial Regulations has come under severe pressure. The ACABQ, Fifth Committee and Secretariat alike have found it difficult to discharge their respective functions in an orderly fashion.

It is my hope that by the time the programme budget for 1998-1999 is approved and the General Assembly decides on the reform proposals, we shall leave the state of flux in which the Organization has been for too long.

It is time for stability. It is time to focus on substance, and on achieving our goals. It is time for all Member States to fulfil their legal obligations to the Organization and to one another.

With the support of Member States, the changes now taking place within the Organization can succeed in creating an effective, coherent instrument on which Member States can depend; to which the Member States can turn in time of crisis; and of which the Member States can be proud. In that positive spirit, I commend this budget for your approval.

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