RESOLUTION LFC 222

FORUM: LEGAL & FINANCE COMMITTEE

QUESTION OF: Measures to ensure the financing of UN agencies by member states

SUBMITTED BY: Arab League

CO-SUBMITTERS:Bangladesh, Canada, Peru, St. Vincent & the Grenadines, India, Viet nam, DR Congo, Ethiopia, Greece, Kazakhstan, Venezuela, Ukraine.

STATUSApproved

THE LEGAL AND FINANCE COMMITTEE,

Guided by the purposes and principles of the Charter of the United Nations, specifically Article 19, which states “A Member of the United Nations which is in arrears in the payment of its financial contributions to the Organisation shall have no vote in the General Assembly if the amount of its arrears equals or exceeds the amount of the contributions due from it for the preceding two full years. The General Assembly may, nevertheless, permit such a member to vote if it is satisfied that the failure to pay is due to conditions beyond the control of the Member”,

Recognising the United Nations is one of the most powerful non-profit organisations in the world, meaning it allocates its earnings to its services to member states,

Deeply disturbed by the fact that 64 out of the 193 members of the UN have not paid their dues which creates a financial crisis for the organisation,

Alarmed by the fact that some member states cannot afford to pay their contributions, despite the UN’s custom procedure to determine the amount of funds required from member states in order to avoid hurting their economies,

Noting the absence of a correlation between member states who fund the most and those who need the most funds,

Fully aware that Secretary General Guterres has expressed sadness at the ineffectiveness of the UN’s policy to revoke a member’s vote from the General Assembly if they have not paid their debts for two years,

Bearing in mind that all nations in the world experienced an average reduction of 5-10% in their economies due to the COVID-19 pandemic,

  1. Suggests the establishment of a three-step system to detect the cause of unpaid contributions and ensure payments of debts by member states:
    1. to communicate the amount due to the member state’s government, alongside the demand for a response in 3 days and an indication of their plan for payment within 14 days
    2. to coordinate advisory team visits with representatives from the International Monetary Fund and/or the World Bank to the member state for the duration of two months in order to:
      1. inspect the member state for special circumstances including but not limited to, civil war, threats of war, economic depression, severe cases of national lockdown 
      2. report whether aforementioned special circumstances are present in the member state in question to the UN
      3. legally deliver the files for the initiation of step three, to the government of said member state should there be an absence of special circumstances 
    3. to deliver a warning to the member states to whom these special circumstances do not apply to pay their debts in full, or in previously agreed upon instalments, or face a trial at the Security Council and/or the International Court of Justice:
      1. for More Economically Developed Countries (MEDCs), the agreed upon period of time should be around 100 days
      2. for Less Economically Developed Countries (LEDCs), the agreed upon period of time should be no more than 200 days;
  2. Strongly recommends that the UN reassess all member states’ budgetary contributions due to the economic damage from the ongoing pandemic as many nations suffered an economic reduction of approximately between 5-10%, this reassessment will include:
    1. prioritising budgetary reassessments for LEDCs  
    2. subsequent budgetary reassessment for MEDCs
    3. increasing the maximum funding percentage of a member state from 22% to 25%, to ensure that the countries who are able to pay, can further assist the UN agencies in their efforts, however no one member state must pay the 25% without another member state doing the same, to ensure that the UN is not run, sponsored or controlled by one member state alone;
  3. Supports gathering the UN’s Fifth Committee (Administrative & Budgetary) via an online event in late May 2021, giving delegations three months time to prepare, in order to determine the percentage (if any) of voluntary funds each member state is willing to contribute:
    1. under the shared goals of:
      1. assisting the UN economically in its current financial crisis
      2. preventing further impairment of UN operations around the world
      3. providing for loans to member states that were unable to pay their contributions to the UN because of special circumstances including but not limited to war, economic collapse, and COVID-19
    2. with the goal of negotiating the total amount needed from each member state in the event that some member states are unable to pay;
  4. Encourages member states, according to their ability, to further donate:
    1. to a specific destination including but not limited to the general budget, Security Council, UNESCO
    2. the Secretariat for onward transfer to the desired location;
  5. Requests that member states restructure contributions in a way that:
    1. raises the nominal amount of funds expected by those member states who:
      1. are not experiencing a period of economic recession larger than 6%, usually understood to mean two or more consecutive quarters of decline in nominal Gross Domestic Product
      2. do not have a national poverty rate exceeding 25% of their population
      3. do not have a national unemployment rate exceeding 20% of their workforce
      4. are not officially at war
      5. have not declared a state of emergency
    2. lowers the nominal amount of funds expected by those member states who:
      1. are experiencing a period of economic recession larger than 6%, usually understood to mean two or more consecutive quarters of decline in nominal Gross Domestic Product
      2. have a national poverty rate exceeding 25% of their population
      3. have a national unemployment rate exceeding 20% of their workforce
      4. are officially at war
      5. have declared a state of emergency
    3. initiates a monitoring process of a year to track the UN’s operations with reduced funds to:
      1. resume this system if the limited funds can be managed well enough to perform prioritised operations by the UN
      2. gather the Fifth Committee once more after the monitoring process is over to reevaluate and reallocate funds if the limited funds do not reach UN’s financial requirements for operations
    4. focuses on areas that require immediate action such as human rights and conflict mediation to:
      1. prevent future crises such as countries with the ability, who do not wish to pay their dues
      2. fund the peacekeeping missions and other such agencies within their countries so that the UN can focus their efforts on member states who are suffering to a greater degree without suitable infrastructure to support the strain of COVID, other international or regional issues;
  6. Calls for a replacement of the existing UN funding system with a collection of funds using:
    1. an annual donation relative to each country’s individual GDP to be paid in order to maintain a voting membership in the United Nations
    2. a specific fee for each country based on that country’s GDP & GDP per capita, where:
      1. each country would pay a set amount based on their current economic position, to be assessed annually
      2. the fee would change with the country’s GDP & GDP per capita, and if these have increased for the country then their donation fee would increase as well
      3. the reverse of the preceding statement would also be applicable;
  7. Calls upon every member state to help fund the World Health Organization (WHO), in order to aid member states experiencing the severe impacts of the COVID-19 crisis to support projects put forward by WHO, authorized and approved by the General Assembly, that will aid all member states in multiple ways in the aftermath of the ongoing COVID-19 pandemic, to include but not limited to:
    1. emphasizing the significance of each member state’s collaboration with other UN organizations such as World Food Programme (WFP) and United Nations Development Programme (UNDP) to continue projects they are working on such as in Iraq or Mejoramiento Mercado Belen in Peru in COVID-19 safe methods
    2. prioritizing the accelerated distribution of vaccines in LEDCs as well healthcare workers in both MEDCs and LEDCs
    3. incentivizing member states that fund WHO more than the named amount by services such as faster distribution of vaccines
  8. Requests that member states cooperate and pay their required amounts toward the financing of the United Nations in order to create a global environment that allows for peace and easy accessibility to emergency response without the fear of underfunding.