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United Nations Reform
BACKGROUND REPORT

Posted: September 9, 2005  

U.S. Uses Dues to Push Reform
Like a fed-up parent trying to coerce a child, the United States frequently uses what means it can to press for changes within the United Nations: money.

U.S. CapitalWith the United States' $440 million annual dues to the organization making up about 22 percent of the United Nations' budget, much is at stake when Congress threatens not to pay.

Congress has withheld a portion of U.S. dues several times over the last few decades in an effort to shrink the amount of dues owed in general or to prompt changes within the world body.

In June 2005, the House passed a bill tying the payment of future dues to the 60-year-old organization to a series of reforms it wants the United Nations to implement. Among the changes the bill is pushing for are a restructured U.N. budget, cutbacks in what the United States considers wasteful spending on conferences and public information, and stricter standards for membership to human rights bodies. Under the bill, if the reforms aren't completed within two years, the United Nations would get only half of the United States' dues.

The bill's passage by a 221-184 vote came amid strong objections from Bush administration officials, who argued the move would interfere with their ability to conduct foreign policy.

A similar, more lenient version of the bill has been introduced in the Senate, but the upper body has yet to vote on it.

If Congress follows through on the threat, it would renew what has been a consistent struggle between the legislative body and the United Nations over the paying of dues.

In the 1990s, as the United States emerged from the Cold War as the world's sole superpower, Congress frequently withheld significant portions of American dues. By the end of the decade, the United States owed more than $1 billion to the organization's general budget, in addition to hundreds of millions more to its peacekeeping budget. Mounting political and international pressure to pay the dues led to an agreement to reduce the American allocation to the organization in exchange for paying off some of its debt.

The Helms-Biden bill, passed in 1999, allocated repayment of much of the United States' debt to the organization in exchange for smaller future payments. The United States' allocation of the United Nations' general budget fell from 25 percent to 22 percent, a difference of tens of millions of dollars.

By September 2005, the United States still owed $569 million in past dues to the organization, including some $392 million to the peacekeeping budget, according to U.N. spokesman Ari Gaitanis.

The United States is not alone in withholding some of its U.N. dues. In recent years, as many as two-thirds of the United Nations' 191 member states have failed to pay their contributions in full.

The poorest member states pay as little as $20,000 a year in dues, or .001 percent of the United Nations' $2 billion general budget.

Besides the United States, of the 14 other top contributor countries to the United Nations, five others were behind in their payments in fall 2005 -- Japan, Spain, China, Korea and Brazil. Still, the United States' overall outstanding payments of $560 million from years past dwarfed the next highest total of $59 million (Brazil).

But this year, at least one country has threatened to follow the United States' and withhold part of their payment in hopes of forcing reforms at the world body.

Japan, which is vying for a permanent Security Council seat, in July 2005 raised the prospect of pushing for a reduction in how much it pays the United Nations if the country is not granted a permanent seat on the council, according to an Agence France-Presse report.

Japan, which sits on one of 10 two-year council seats, pays 19.5 percent of the U.N. budget, second only to the United States.

With or without the threat of non-payment hanging over its head, the United Nations is feeling the pressure to undergo a series of reforms and Secretary-General Kofi Annan has proposed many of the changes that are called for in the House bill passed in June.

That has led some to criticize the dues threat as potentially undermining a reform effort that is already underway.

"Nothing could be better calculated to infuriate the rest of the world and entrench the view that the United States is a bully rather than a partner in international efforts to address international problems," Ann Florini, a foreign affairs expert at the Brookings Institution, a Washington-based think tank, wrote in a June editorial.

However, the bill's chief sponsor in the House, Rep. Henry Hyde, R-Ill., said in June that the threat of withholding dues -- which he called "radical surgery" -- was necessary to keep the pressure on the United Nations to reform itself.

"Sometimes that's the only way to save the patient," said Hyde, chairman of the House International Relations Committee, according to the Washington Post.

-- By Josh Drobnyk, Online NewsHour

Main: U.N. Reform
REPORTS
Buildup to Reform
Annan's Proposal
Security Council Expansion
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Bolton as Ambassador
Paying Dues
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