REFORM OF ORGANIZATION IS WELL ON ITS WAY, SECRETARY-GENERAL TELLS ASSEMBLY AS IT RESUMES DISCUSSING REFORM PROPOSALS
Press Release
GA/9403
REFORM OF ORGANIZATION IS WELL ON ITS WAY, SECRETARY-GENERAL TELLS ASSEMBLY AS IT RESUMES DISCUSSING REFORM PROPOSALS
19980427 The Secretary-General told the General Assembly this morning that reform of the Organization was well on its way, as it resumed consideration of measures and proposals for United Nations reform. He said the net result of reform efforts was as it should be: a more productive and effective Organization, together with a renewed emphasis on economic, social and development activities, the very heart of the mission.He said that the United Nations was being transformed, not as an end in itself, but as a means to carry out its mission of peace, development and human rights. That transformation was not undertaken to please any particular constituency, but to be better able to meet the needs of the world's people and of Member States. That process was not a luxury or a gimmick, and it was not an imposition. Indeed, "reform is our survival and our future", he added.
Briefly reviewing the report and notes on some of his proposals before the Assembly, he said the convening of a Millennium Assembly would articulate a vision for the United Nations in the new century; time-limits or "sunset" provisions would help end the built-in bias towards institutional inertia; a development dividend would channel savings generated by administrative efficiencies towards investments that benefitted developing countries; and ensuring the predictability and security of core resources for development would be essential to increase the efficiency of United Nations funds and programmes, and avert discontinuities.
The documents were requested by the Assembly when it adopted, last December, a resolution on "Renewing the United Nations: a programme for reform".
The General Assembly President, Hennadiy Udovenko (Ukraine), said no one in the Assembly could seriously question the need to continue the reform of the United Nations. Over the recent months, the reform process had become not only an integral part of the daily life of the Organization but also of its individuals. By engaging in the process, Members were striving to make a more effective United Nations. The Organization must continue to undergo changes, but only those changes which enjoyed the universal support of Member States and served collective needs could be successful.
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Several speakers voiced their support for the proposals, but differed in how to approach them. The representative of Colombia, speaking on behalf of the Joint Coordinating Committee of the Non-Aligned Movement and the "Group of 77" developing countries and China, said the plenary setting was not suitable for the in-depth discussion needed on proposals for long-term changes. Working groups would provide the setting for a focused and orderly discussion that would save time, while ensuring proper elaboration and negotiation. Such an open-ended format guaranteed transparency by allowing the full participation of all delegations.
The representative of the United States said that the task today was to continue the momentum for reform. The plenary informal negotiations had been successful and could continue to serve the Assembly well as it considered the remaining reform recommendations.
Before concluding the meeting, the Assembly decided to include an item on "Financing of the United Nations Mission in the Central African Republic" in the agenda of its fifty-second session, and to allocate it to its Fifth Committee (Administrative and Budgetary).
Also this morning the Assembly was informed that El Salvador and Haiti had made the necessary payments to reduce their arrears below the amount specified under Article 19 of the Charter. By that Article, a Member State which is in arrears in the payment of its financial contributions to the Organization shall have no vote in the Assembly if the amount equals or exceeds the contributions due for the preceding two full years.
Statements this morning were also made by the representatives of the United Kingdom (for the European Union and associated States), China, India, Japan, Norway, Algeria, Pakistan, Russian Federation, Canada and the Republic of Korea.
The Assembly will meet at 3 p.m. today in the new format of informal consultations of the plenary to continue its discussion on reform. It will meet again in a formal plenary at a date to be announced.
Assembly Work Programme
The General Assembly met this morning to resume consideration of measures and proposals for United Nations reform. It had before it a report of and several notes by the Secretary-General, submitted in response to requests made in Assembly resolution 52/12 B of 19 December 1997, on the following: the revolving credit fund; a new system of core resources for development; utilization of the Development Account; a new concept of trusteeship; a Millennium Assembly; time-limits of new initiatives ("sunset" provisions); and the impact of implementation of pilot projects on budgetary practices and procedures.
The report on the proposed revolving credit fund (document A/52/822) explains that the Fund would be established on an indefinite basis and at an initial level of up to $1 billion, through voluntary contributions or any other means of financing suggested by Member States. It would relieve cash flow pressures on the United Nations through temporary advances against unpaid assessed contributions. It would enable the Secretary-General to finance, on a recourse basis, any future balances of unpaid assessed contributions of Member States, and for which pledges to pay by a certain date have been made. It is proposed that the advance from the Fund would be used for outstanding amounts of at least $250,000.
The proposal is prompted by the Organization's recurrent financial crises in which large growing arrears of payments depletes financial reserves and causes the Secretary-General to borrow from peacekeeping accounts to meet regular budget requirements. The precarious financial situation also diverts attention from its substantive work and undermines reform efforts. The Fund would constitute a major addition to the financial arrangements of the Organization.
The report details some of the practical aspects of implementing the Fund. Under the procedures proposed, the Secretary-General would notify Member States of any new balance of unpaid assessed contributions if an assessment is unpaid 90 days after becoming due. If a Member State, in response, specifies in writing the future date of payment of unpaid assessments in such a legal form as to allow the Secretary-General to pledge the notification as security for an advance from the Fund, the Secretary- General could authorize an advance up to the amount of the unpaid assessed contributions in question. For using the Fund, that Member State will have to bear the opportunity cost of financing the advance -- that is, it would bear the "cost" of the interest lost by drawing against the Fund. The opportunity cost will be debited from any amounts owed to that State by the Organization for prior year surpluses. The surplus balances of Member States providing voluntary contributions to the Fund would receive a corresponding credit adjustment. In order to simplify the operation of the mechanism proposed for
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the Fund, it is proposed that authorized retained surpluses be consolidated in a retained surplus account.
The Secretary-General will return advances to the Fund as soon as payment pursuant to a pledge is received by the Organization, the report continues. When the financial situation of the Organization has improved sufficiently to handle the normal delays in payments of assessed contributions, the principal of all contributions will be returned to the donors together with the proportionate share of accrued interest earned by the revolving credit fund.
The Secretary-General states that the Assembly may wish to establish a revolving credit fund with the purposes and principles outlined in the report. It may also wish to approve the related revisions to the Financial Regulations and Rules of the United Nations, annexed to the report, and to authorize the Secretary-General to consolidate authorized retained surpluses in a retained surpluses account. Further, it may wish to take note of Member States' shares in currently authorized surpluses, as set out in an annex of the report, and decide that States' shares in future retained surpluses be allocated according to the effective scales of assessment in force for the budget year in question. In his note on core resources for development (document A/52/847), the Secretary-General states that as the demands placed on United Nations development cooperation have increased, it has become vitally important for core resources to be placed on a predictable, continuous and assured basis. It is therefore essential to devise new and more effective funding strategies and modalities to generate resources commensurate with the mandates and capacity of the United Nations system. While total funding for core and non- core (earmarked) resources has increased modestly in recent years, the share of core resources now constitutes less than half of the total.
The note highlights action by the United Nations Development Programme (UNDP), United Nations Population Fund (UNFPA), United Nations Children's Fund (UNICEF) and World Food Programme (WFP) on matters relating to funding strategy and financial policies.
The Secretary-General suggests that governing bodies of the United Nations development system further explore the ideas that have been raised previously to strengthen the voluntary system of contributions to United Nations operational activities for development. Renewed consideration might be given by Member States to making multi-year pledges, based on the best three-year average in the last 10 years. Member States would be free to increase or decrease its pledge by, for example, giving at least one-year's advance notice, thereby allowing governing bodies and executive heads to plan accordingly. In order to mitigate the effects of currency fluctuations, a system of maintaining commitments and payments at United States dollar level could be introduced. Member States could provide a firm timetable for
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payment of contributions or issue letters of credit or similar financial instruments, including promissory notes. As close to 90 per cent of core resources are provided by only 15 countries, new relationships with new potentially important donors need to be forged.
The note concludes that at the root of an effective funding modality lies a strong political commitment derived from a new partnership among Member States and with the executive heads of United Nations development bodies. Such a partnership is being forged. While there is active consideration among them of the funding question, it will be essential to achieve rapid and lasting solutions. The creation of a new funding modality requires a clear decision in favour of multilateralism and United Nations development cooperation. It should also be possible to place the current voluntary system on a more solid footing by exploring additional, innovative funding avenues. Among the proposals already advanced is greater access to private resources, which may offer interesting possibilities for supplementing an effective voluntary system.
The Secretary-General's note on utilization of the Development Account (document A/52/848) is submitted in response to a request by the General Assembly that he identify the sustainability of that initiative, as well as modalities of implementation, the specific purposes and the associated performance criteria for the use of such resources. As stated in his main reform report (document A/51/950), the overall programme objectives and direction for the Development Account would be agreed on by the General Assembly. The programming of such resources would focus on global, interregional and regional issues and on the premise that national development plans are addressed through other multilateral and bilateral programmes.
The note states that the proposal's underlying assumption is that any gains achieved as a result of productivity improvements, such as streamlining and simplification of processes and procedures, would become a permanent component of the Development Account. Over time, additional funds will be transferred from productivity gains until the Account reaches a level of $200 million. Each proposed programme budget will, therefore, include the amount approved for the Account in the previous programme budget. It would be supplemented by any additional productivity gains achieved during the prior biennium together with any further prospective productivity gains anticipated in the forthcoming biennium. Once the target level of transfer is attained, the Account will become sustainable through the existing budget appropriation process.
The Secretary-General envisages that the resources will be utilized in the following ways: to assist in the promotion of development of developing countries; to assist in the understanding by the international community of emerging challenges and persistent problems in global development by better analysis and better networking of experts, so as to promote an enhanced
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appreciation of global economic and social issues; and to assist developing countries in implementing global programmes and platforms of action, especially the follow-up to United Nations conferences.
According to the note, proposals concerning utilization of the Account should conform to the following general guidelines: the scope should be limited, confined to proposals that will show results within two bienniums; the focus should be well-defined and its success should not depend on additional funds from other resources; in the absence of support from the Development Account, the proposal would not be implemented and it should offer low-cost solutions and be able to generate other sources of finance or tie in with country-level operations undertaken by the United Nations system. It should also include a strong South-South cooperation content.
The report notes that as part of the regular budget, the Development Account will be governed by the same modalities and procedures. The Secretary-General will present his proposals for the utilization of the account funds for each biennium along with the budget proposals for that biennium. Specific projects would be implemented within the framework of the General Assembly's decisions on those proposals. For the programme budget for the biennium 1998-1999, an amount of $12.7 million has already been appropriated and proposals for its utilization will be submitted to the General Assembly. Because activities could extend beyond one biennium, appropriated funds could be treated as a multi-year project with any unexpected balance of appropriations carried forward to succeeding bienniums.
As previously stated in a related report of the Secretary-General (A/51/950/Add.5), the Under-Secretary-General for Economic and Social Affairs will serve as the Programme Manager for the Development Account and will oversee its implementation.
The Secretary-General's note on a new concept in trusteeship (document A/52/849) describes the proposal to reconstitute the Trusteeship Council as the forum through which Member States exercise their collective trusteeship for the integrity of the global environment and common areas such as the oceans, atmosphere and outer space. The Trusteeship Council could also serve to link the Organization and civil society in addressing areas of global concern, which require active contribution by public, private and voluntary sectors.
The Secretary-General states in his note that while a number of intergovernmental bodies and legal instruments have been put in place to address sustainable development and various aspects of the global environment and common areas, there is no high-level deliberative forum that could take a comprehensive, strategic and long-term view of global trends and provide policy guidance in those areas to the world community. A new high-level
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council with a well-defined mandate that does not create overlaps or conflicts with existing intergovernmental bodies could serve that purpose.
He states that the note is limited in scope in light of the task force he has set up to prepare proposals on environmental and human settlement areas. Chaired by the Executive Director of the United Nations Environment Programme (UNEP), the task force will have an opportunity to elaborate further on the proposals for a new concept of trusteeship, including preparation of proposals on reforming and strengthening the Organization's activities in the environmental and human settlement areas. They would be submitted to the Secretary-General and the Assembly at a later date.
In a note on a Millennium Assembly (document A/52/850), the Secretary- General recommends that the fifty-fifth session of the General Assembly be designated the Millennium Assembly and that a high-level segment, called the Millennium Summit, be devoted to in-depth consideration of the theme "The United Nations in the twenty-first century". A non-governmental Millennium Forum would be held in conjunction with the Assembly, and Member States could consider establishing a ministerial-level Special Commission to examine the relations among various component parts of the United Nations system.
The integration of the Millennium Summit into the regular Assembly session would facilitate the participation of Heads of State and Government while maximizing continuity in the Assembly's normal programme of work, the note states. The Millennium Summit would be asked to provide guidance to the Organization for meeting the challenges of the new century. To facilitate focused discussion and concrete decisions, the Secretary-General proposes to submit a report on the Assembly's theme by midsummer of the year 2000.
According to the note, the main sources for the report would include a series of informal events involving Member States and non-state actors convened in various regional centres around the world. It is hoped that such events would serve as a source of innovative ideas in the five core areas of United Nations work -- peace and security, economic and sound offers, development cooperation, humanitarian affairs and human rights. It would include a synthesis of the major substantive and institutional implications of prior events of the Organization as a whole. It would also draw on the results of consultations taking place within the Administrative Committee on Coordination (ACC) concerning the maximum use of the many complementarities and synergies that exist within the United Nations system.
The note finds that despite the built-in flexibility and the advantage of engaging a very broad range of constituencies of the decentralized United Nations system, it remains unclear whether the unity of purpose and coherence of action that is necessitated by the new challenges can be mustered within those arrangements. An intensive process of consultations has been initiated within the ACC to examine, among other issues, the impact of the reforms
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undertaken by each agency on the others and on their respective roles within the system as a whole.
In light of that process, the Secretary-General recommends in his note that the Millennium Assembly assess the extent to which a clearer division of labour is emerging. This assessment should help to determine whether the present constitutional framework governing the agencies and their relationships with the United Nation is sufficiently flexible to adapt and respond to future challenges. The establishment of a Special Commission to examine the constitutional framework should be viewed in that context. If the need exists, the Assembly may wish to establish such a Commission.
The note also defines the Secretary-General's proposal that non- governmental organizations and other civil society actors organize a Millennium Forum in connection with the Millennium Assembly. If the United Nations is to continue to play a vital role in the next century, it must benefit from the imagination and engage the support of the world's people.
A note on time-limits of new initiatives ("sunset" provisions) (document A/52/851/Corr.1) recommends that the General Assembly endorse the Secretary- General's proposal that each initiative involving new organizational structures and/or major commitments of funds be subjected to time-limits. The idea of specific time-limits, or "sunset" provisions, is intended to provide a specific time horizon for mandates, requiring explicit renewal by the General Assembly for their continuation. The purpose of "sunset" provisions is to strengthen the role and capacity of the Organization by focusing its efforts on activities that have continuing relevance, usefulness and effectiveness.
The note states that while current procedures exist for determining the continuing validity of legislative decisions, most mandated programmes and activities have not been subjected to specific time-limits. On the whole, there has been insufficient focus on the continuing relevance and effectiveness of such mandates. In addition, while there have been recommendations for the cancellation of certain activities owing to duplication, overlapping or rationalization, evaluation studies have not addressed the continuing validity of the programme itself.
The purpose of the sunset provision, therefore, is to obtain the agreement of Member States by establishing, at the time of adoption of mandates, specific time-limits for their implementation, the note states. Such a provision would require Member States and the Secretariat to focus on the results to be achieved within a particular time-frame, after which the new initiative would terminate. In essence, new initiatives would have "sunset" provisions for their termination unless otherwise determined. The determination of continuing relevance and usefulness would be undertaken
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within the context of current procedures for the approval of medium-term plan and programme budgets.
A note on the impact of implementation of pilot projects on budgetary practices and procedures (document A/52/852) recalls the Secretary-General's intention, as indicated in his main reform report, to take steps to delegate maximum authority to line managers for the management of human and financial resources. He has initiated pilot projects on such delegation, which will provide a practical context for greater delegation and flexibility within existing rules and regulations. A report on the implementation of the pilot project at the Economic Commission for Latin America and the Caribbean (ECLAC) will be submitted to the Commission at its twenty-seventh session for final approval.
The note also outlines the existing framework for the delegation of authority, responsibility and accountability. The General Assembly establishes the basic regulations for managing financial and human resources, and the Secretary-General implements them and amplifies rules for specific resource management purposes. Authority for the administration of financial resources is delegated to the Controller. Similarly, authority for the management of staff is delegated to the Assistant Secretary-General for Human Resources. Under the pilot project, further authority has been given to programme and line managers in several areas of human resources management. As requested by the General Assembly, the Secretary-General will submit a report on the subject at the fifty-third session.
The note concludes that it is within the Secretary-General's purview to delegate authority and responsibility to programme and line managers. Authority delegated in the context of implementing the pilot projects would not impact either the procedures or the Organization's existing Financial Regulations and Rules. As part of the management reform adopted by the General Assembly, it is the Secretary-General's intention to pursue delegation of authority as an instrument for management improvement. In the event of delegation beyond his authority, he will seek the Assembly's approval.
Statement by Assembly President
HENNADIY UDOVENKO (Ukraine), President of the General Assembly, said that the reform process initiated by the Secretary-General in March 1997 highlighted the determination of the United Nations and its constituents to review a wide range of issues related to the Organization. According to the provisions of the two consensus resolutions adopted under item 157 -- "United Nations reform: measures and proposals" -- on 12 November and 19 December of last year, the Secretary-General was requested to submit a number of reports and additional explanations related to different aspects of the reform proposals, including the revolving credit fund, the utilization of the Development Account and the Millennium Assembly.
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The new set of documents submitted by the Secretary-General posed a number of questions to the Assembly on how to proceed with their consideration, he said. It was hoped that the question of how to deal with the reports and notes presented should be one of the focal points of today's discussion. The adoption of the second resolution on United Nations reform represented not a "concluding stage", but a first step on the road to transformations in the Organization. New challenges were being faced by the Assembly to ensure continuity of the reform process and to give it new impetus at the intergovernmental level, which would permit the consideration of changes of a more fundamental nature.
Lack of substantial improvements to the Organization's financial situation could seriously undermine the credibility of the reform process and send a very strong negative message to the outside world and general public about the United Nations ability to adapt itself to a changing environment, he said. He hoped there was a clear understanding that the contributions to the Organization should be paid by Member States in full, on time and without condition, particularly by the largest contributor. He stressed that the issue of United Nations reform depended not only on political will of the membership, but also on sufficient funding. For reform to succeed, all Member States must assume their treaty obligations and ensure full payment of their assessments.
There was no-one in the Assembly who could seriously question the need to continue the reform of the United Nations, he said. Over the recent months, the reform process had become not only an integral part of the daily life of the Organization, but also of its individuals. By engaging in the process, Members were striving to make a more effective United Nations contribute better to efforts to build a safer, healthier and more just and prosperous world. The Organization must continue to undergo changes, however, only changes which enjoyed the universal support of Member States and served their collective needs could be successful.
Statement by Secretary-General
Secretary-General KOFI ANNAN said "we are well on our way", referring to the process of reform of the Organization. He was there today to facilitate the conclusion of the first phase of work in the area of reform.
The measures that fell within the prerogative of the Secretary-General had been largely implemented, he said. The work of the Secretariat in its main thematic areas was now being guided by Executive Committees. The Senior Management Group had also proven its worth quickly as the first systematic forum where the leaders of all United Nations departments, programmes and funds came together to develop policies and ensure managerial clarity. Its work would soon benefit from that of the Strategic Planning Unit, the first in-house "think tank", whose terms of reference he had just approved. The
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Organization's work in two major areas -- disarmament and humanitarian assistance -- had been given new focus and impetus.
If reform began at the top, it must prove itself on the ground, he said. In that regard, the United Nations Development Group had come into being, promising greater coordination and integration of the operational development activities. "United Nations Houses", or common premises, were being established to promote teamwork and efficiency, and within the next two years there should be as many as 50 United Nations Houses. In addition, significant progress had been made in devising Development Assistance Frameworks to support the common vision and objective of United Nations programmes and funds, as determined by host countries.
Continuing, he said that reform had reduced the budget and staff and consolidated some departments and activities, although it was far more than the sum of those or any other cuts. Furthermore, procedures and rules were being simplified, and administrative costs were being reduced. Common services were being extended and an electronic United Nations had become a reality. Above all else, a fundamental review of human resource management was under way. The net result was as it should be: a more productive and effective Organization, together with a renewed emphasis on economic, social and development activities, the very heart of its mission.
Next, he briefly reviewed the seven notes before the Assembly on a number of recommendations contained in his reform plan. The Millennium Assembly would articulate a vision for the United Nations in the new century, and propose system-wide institutional adaptations to enable the Organization to act on that vision. Time-limits or "sunset" provisions would help end the built-in bias towards institutional inertia that had afflicted the Organization for too long. A development dividend would channel savings generated by administrative efficiencies towards investments that benefited developing countries.
He said that ensuring more predictable and secure core resources for development was essential if United Nations funds and programmes were to increase efficiency, avert discontinuities and maintain trust and reliability. It would also lead to better planning and management oversight by the boards. The practical measures being recommended should be seen as first steps towards more effective funding modalities.
The Assembly would soon receive further elaborations of his proposal that the United Nations shift to a results-based budgeting, including departmental mock-ups illustrating how such a system would function, he said. Perhaps more than any other measure, that would give the Organization the flexibility and agility it needed in an era of rapid change, while at the same time enhancing both transparency and the Secretariat's accountability to Member States. He hoped those proposals would be adopted quickly by the
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Assembly plenary, before the end of the fifty-second session, in order to proceed with implementation.
The world had just seen, in the recent agreement between the United Nations and Iraq concerning weapons inspections, just how much a united and determined international community could achieve through the United Nations, he said. What it had done in Iraq through reason, diplomacy and political will could be done all across the United Nations agenda. The financial turmoil in Asia made the presence of an effective United Nations, as a unique tool of concerted action, more imperative than ever. In that connection, he was particularly impressed by the dialogue recently initiated at Headquarters between the Bretton Woods institutions and the Economic and Social Council.
He reiterated the fundamental point that the United Nations was being transformed, not as an end in itself, but as a means to carry out its mission of peace, development and human rights. That transformation was not undertaken to please any particular constituency, but to be better able to meet the needs of the world's people and of Member States. That process was not a luxury or a gimmick, and it was not an imposition. Indeed, "reform is our survival and our future", he said.
He then introduced Deputy Secretary-General Louise Frechette and said she would be responsible for revising and updating the reform agenda as the process evolved.
Sir JOHN WESTON (United Kingdom) spoke on behalf of the European Union, Bulgaria, Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Cyprus, Iceland and Liechtenstein. Expressing support for the idea of holding a Millennium Assembly, he said the millennium should be celebrated in a special and meaningful manner by the United Nations. He also welcomed the use of funds in the Development Account for programmes focusing on global, interregional and regional issues with emphasis on helping developing countries to implement commitments arising from United Nations conferences. The Account, however, should not be used for activities carried out under other programmes, and there was a need to be particularly careful to avoid duplication of the work of United Nations funds and programmes. There also should be some further clarification on how reporting to Member States on Development Account programmes would be carried out, and how programming monitoring and evaluation would be handled.
On the "sunset" provisions, he said he supported the proposal that any new initiative should be subjected to time-limits. In that regard, evaluation studies of programmes in the past had not addressed the question of the continuing validity of those programmes. Action should be taken to correct that problem. On the revolving credit fund, he said the European Union recognized the precarious financial situation and the consequent perpetual cash-flow problems faced by the United Nations, and it would consider the
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proposals in the Secretary-General's report. However, the fund could not be seen as a means of allowing, or encouraging, Member States to avoid their financial obligations as laid down in the Charter.
JULIO LONDONO-PAREDES (Colombia), on behalf of the Joint Coordinating Committee of the Non-Aligned Movement and the "Group of 77" developing countries and China, said, the study of issues concerning longer-term changes should be entrusted to a working group or subgroups of the General Assembly, because the plenary setting was not suitable for the in-depth discussion needed on those proposals. Discussion in working groups would provide the General Assembly with a commonly used mechanism to carry out a focused and orderly discussion that would save time while ensuring proper illustration and negotiation. Proposals under the longer-term changes should be discussed within the open-ended format, that guaranteed transparency by allowing the full participation of all delegations.
SHEN GUOFANG (China) said his delegation was in favour of the proposal to hold a Millennium Summit in the year 2000. To ensure its success, the Assembly should set up, at an early date, an open-ended preparatory committee to discuss and determine the various arrangements, as well as the agenda and documents for the Summit.
He said the process of reform must address the financial crisis engulfing the United Nations. The crisis had resulted solely from the arrears major contributors had refused to pay. The only fundamental way to ease the crisis was for the major contributors to pay their overdue contributions as soon as possible and without conditions. While the establishment of a revolving credit fund might help ease the crisis temporarily, it would not be a lasting solution. The fund might shift extra financial burdens to those Member States which made timely payment of their contributions. Proposals on revising the current Financial Rules and Regulations of the United Nations also deserved an in-depth study by the relevant committee.
BILL RICHARDSON (United States) said that his delegation heeded the Secretary-General's call for continued work towards the remaining reform recommendations and pledged its cooperation on behalf of a more effective and efficient Organization. The task today was to continue the momentum for the Secretary-General's reform package. The plenary setting had served that purpose well in affording consistently high-level participation, keeping negotiations from degenerating into overly detailed stalemates and sustaining the political momentum necessary for continued cooperation among reform's many participants. Plenary informal negotiations had been successful and could continue to serve the Assembly well as it considered the remaining reform recommendations.
Concerning some of the specific proposals, the United States had advocated a Development Account from the beginning, he said. Savings should
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go to new development programmes, but post-2002 support for those programmes, if merited, should come from additional savings or voluntary contributions. Regular budget sourcing should not be automatically expected. The United States felt strongly that the United Nations had accomplished its trusteeship objectives and that there was sufficient United Nations machinery to address environmental concerns. It, therefore, opposed refitting the Trusteeship Council to such ends.
He strongly supported the Secretary-General's view on sunset provisions; existing programmes should be so reviewed as well. The idea for a revolving credit fund for regular budget was not practicable, principally because no one had stated that they would contribute. It would be regrettable if that issue were to distract Member States from an otherwise productive negotiation. On core resources for development, he said, while he appreciated the continued call for voluntary contributions, of which the United States led, effective results in United Nations operations best attracted voluntary funding. Civil society could provide a vital new source. Furthermore, his Government's budgeting did not permit multi-year pledging.
He welcomed United Nations activity leveraging the symbolic value of the Millennium, in part to sustain the reform momentum. In that regard, the Millennium Assembly appeared to be a cost-effective approach within existing resources. Preliminary ideas for a Special Commission on the United Nations system, however, needed more review. The Secretary-General's delegation of financial and human resources authorities to line managers was within his prerogative. The United States supported such front-line accountability and trusted that it would discourage micro-management by Member States.
SATYABRATA PAL (India) said that, while he supported the reform initiatives, even a reformed United Nations would remain in financial crisis if assessed contributions were not paid in full, on time and without conditions. On the Development Account proposal, there was no assurance that mandated programmes of vital interest to developing countries could be fully executed within an arbitrary ceiling or that the Account could be maintained in the years to come. His delegation, however, welcomed the objectives of the Account, including the promotion of South-South cooperation. Discussions of the Account should continue to ensure that its objectives did not affect the conduct of other programmes or mandates of the United Nations.
He added that a new concept of the Trusteeship Council would require a change in the United Nations Charter. Any such change must be discussed in an open-ended and transparent manner, to allow all delegations and countries to effectively participate in and enrich the discussions. The success of the Millennium Assembly also could only be ensured through proper preparations, through a preparatory committee or an open-ended working group, to decide its agenda and outcome. On the question of constituting a special commission at
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the ministerial level to consider changes in the specialized agencies, he had some doubt on the need for such a commission.
YUKIO TAKASU (Japan) said his delegation attached great importance to the speedy implementation of the Development Account. For the period 1998- 1999, $13 million had been appropriated for the Account but not a single dollar had been spent as yet. In order to have funds available for projects that would benefit developing countries, it was necessary to reach agreement on the projects to which the funds would be allocated. He asked when a concrete proposal would be presented. In the present global economic climate, it was important for the United Nations to devise a new development strategy, which drew upon the experiences relevant within and outside of its forums. The Secretariat could tap resources from the Account to gather views from experts and organizations in exploring that issue. It could use the Account for a study on the establishment of a data-bank of technologies and to enhance developing countries' capabilities to conduct economic research and analysis. A certain level of savings should be appropriated to the Account at the time of adopting the programme budget, he added.
In order to ensure that the proposed Millennium Assembly was a success, it would be necessary to prepare for it adequately. It was hoped that the designation would reinvigorate the reform efforts that were under way, and promote United Nations reform in the political, economic, social and administrative areas in a balanced manner. The vital and growing importance of the global environment should not be confused with the fact that the Trusteeship Council had successfully fulfilled its mandate. Japan believed that the Council should be abolished, and that the global environment should be addressed by other United Nations bodies. His country supported the proposed sunset provisions. The continuation of activities that had lost their relevance and urgency in a changing international situation tended to waste precious time and resources of the United Nations.
A revolving credit fund was not necessary, as long as Member States fulfilled their Charter obligations to pay their assessments on time, in full and without conditions, he said. His delegation also questioned whether capitalization of the fund in the area of $1 billion was feasible. Budget surpluses were in principle to be returned to Member States, and Japan opposed the retention of all surpluses in reserve. The report on the impact of the implementation of pilot projects on budgetary practices and procedures was far short of being the comprehensive report requested by the Assembly.
Japan, as a strong supporter of the Organization's operational activities, was seriously concerned about the trend towards declining core resources, he said. In order to ensure the availability of necessary resources for operational activities of funds and programmes, it would be necessary to develop an overall funding strategy.
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OLE PETER KOLBY (Norway) said the Secretary-General's report on the Development Account expressed the essence of the purpose behind the reforms, freeing administrative resources for development purposes. Those resources must go to global, regional and national development efforts, particularly to helping developing countries follow up the commitments ensuing from United Nations conferences. The proposed Millennium Assembly was also welcome. However, it was somewhat disappointing that the proposal to establish a special commission to evaluate the institutional framework of the United Nations system had been "put on ice". The fundamental reform questions should be discussed as an integral part of the preparations leading up to the Millennium Assembly.
Norway further welcomed the proposal to establish sunset provisions on new initiatives, which were in everyone's interest, he said. The Secretary- General's initiative to delegate authority should lead to a more efficient, effective and transparent Organization. The clarification provided in the Secretary-General's note on pilot budgetary projects was welcome. Expressing deep concern about the decline in resources for development activities, he said a mode of financing to ensure a predictable and continuous supply of resources was clearly needed. In order to ensure fair burden sharing, negotiated pledges and assessed contributions should be considered. It was disturbing that only a handful of countries were providing the bulk of resources for United Nations development activities. Private donors could never assume the responsibility of governments. There was also a clear need for high-level review of global environmental problems.
ABDALLAH BAALI (Algeria) associated himself with the statement made by the representative of Colombia, on behalf of Non-Aligned Movement and the Group of 77 and China. The submission of the new reform documents of the Secretary-General constituted a new qualitative stage in the continuing and deepening reform process. They also reaffirmed the importance attached to restructuring and revitalizing the United Nations system.
Concerning some procedural aspects of those proposals, he said that the report on core resources for development should be sent to the Second Committee (Economic and Financial), the appropriate body for the review of such a proposal. Likewise, the Fifth Committee (Administrative and Budgetary) was the proper organ for studying the use of a Development Account. It could determine the viability and feasibility of certain sources of savings, as well as the durability of the release of possible other sources, while ensuring that the overall level of forthcoming budgets was not affected.
The proposal for a revolving credit fund and the impact of pilot projects on budgetary practices should also be sent to the Fifth Committee, he said. The establishment of the fund should be done in strict respect for the principles of the United Nations Charter, and within the rule that Member States must pay their assessed contribution in full, on time and without
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condition. He supported the proposal by the Joint Coordinating Committee of the Non-Aligned Movement and the Group of 77 and China to establish a working group of the General Assembly, open to all Member States, to study in a thorough and transparent manner the contents of those proposals.
KHALID AZIZ BABAR (Pakistan) said the financial crisis of the United Nations had led to serious difficulties both for the Organization itself and its Member States. The establishment of a revolving credit fund would not rid the Organization of its financial crisis. While it could provide some relief in the short-term, the solution to the problem lay in the payment of dues by all Members, especially those who were major contributors and had the capacity to pay their dues. His delegation was not sure whether the report on core resources for development offered any solutions to resolving the short-term problem of diminishing core resources for development. It was essential that adequate resources were available on a predictable, continuous and assured basis for that purpose. Concerning development activities, Pakistan supported the proposal that immediate and effective steps should be taken to achieve greater predictability through multi-year, voluntary pledges and that safeguards were needed against currency volatility. The developed countries should also meet the agreed target of 0.7 per cent of gross national product (GNP) for official development assistance (ODA) as soon as possible.
Regarding the utilization of the Development Account, his delegation found it difficult to understand how the Account could be maintained in light of the perpetual financial crisis of the Organization. The idea of a Development Account was certainly no solution for the development needs of the developing countries. The Organization was faced with an extraordinary situation in which money due to developing countries was being used to offset the crisis created by the non-payment of assessed contributions by major contributors. Far-reaching measures to address the immediate financial crisis of the United Nations and the development needs of the developing countries were needed. In both areas, far more radical steps were required.
Regarding time-limits of new initiatives, his delegation could not accept such provisions in missions which were already established, such as the United Nations Truce Supervision Organization (UNTSO) and the United Nations Military Observer Group in India and Pakistan (UNMOGIP), since the issues they were called upon to address had not yet been resolved.
NIKOLAI TCHOULKOV (Russian Federation) said that one way of assuring forward movement in the area of reform was securing the active and constructive support by Member States of all the initiatives, and making sure that those initiatives were balanced and reflected their varied interests. Given the need to thoroughly consider the documents before the Assembly, and given their specific and, in some cases, highly technical nature, it might be necessary to call on the expertise of the relevant Assembly committees. They could thoroughly study those ideas, and adjust them if necessary.
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While he would not now give a detailed assessment of documents, he sought more detailed information on a number of aspects. On core resources for development, for example, where and on what basis would savings be sought? While he also supported the proposal for sunset provisions, it would be useful to seek the views of other interested bodies, and consider extending the practice to current mandates. He still had some difficulty with the idea of establishing a revolving credit fund, which was basically a system of credits and penalties. That concept had not been thoroughly considered or agreed on, and no mention had been made of the need to take into account the failure to pay. He had additional questions about its implementation.
He also had some questions about the new concept of trusteeship. The Millennium Assembly should place appropriate emphasis on implementation, with a view to minimizing expenditures. His delegation would fully study the proposal on changes for core resources. It was important to stabilize the funding in the interest of recipient countries. Clearly, the question of ensuring adequate and predictable financing had to be resolved. Consideration could be given to expanding the practice of burden sharing and dipping into the private sector. The current work of UNDP/UNFPA, UNICEF and WFP on funding strategies was important work whose outcome should be taken into account when reviewing the relevant note of the Secretary-General. Also welcome was the useful information on the impact of pilot projects on budget practices.
He supported the emerging view on referring to the Second and Fifth Committees the reports on the revolving credit fund, the impact of pilot projects on budget, as well as the report on the Development Account. The other reports could be considered within the context of the General Assembly.
ROBERT R. FOWLER (Canada) said his country would not offer a substantial opinion until certain issues on the United Nations reform had been addressed. The General Assembly was the appropriate forum to deal with the reform process. Its policy guidance and administrative experience were the only way to guide the reform process to success.
CHANG BEOM CHO (Republic of Korea) said his country supported the Millennium Assembly and it would submit two or three proposals on a possible theme for the event at a later date. Given the diverse size and scope of the non-governmental organizations involved, further consideration should be given to the proposed Millennium Forum. His delegation was not convinced that it would be practical to establish the revolving credit fund through voluntary contributions.
It was very important to pursue international development cooperation to ensure higher standards of living, he said. Multi-year pledges for core resources might be difficult to implement because systems varied from country to county. His delegation supported the proposal on sunset provisions, as they were needed to implement initiatives in a more efficient manner. The new
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concept of trusteeship addressed issues related to the integrity of the global environment and was of paramount significance for the future of all mankind. The reconstitution of the Trusteeship Council, however, should be approached with utmost prudence.
The Assembly President, Mr. UDOVENKO (Ukraine), said the Assembly would proceed with its consideration of reform in open-ended informal consultations of the plenary.
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