The United Nations is facing a severe financial crisis due to unpaid contributions and delayed payments from the United States and China.
According to the Wall Street Journal on May 30, the US and China, which together account for 42% of the UN's core budget, have delayed billions of dollars in payments, putting the organization at risk of bankruptcy.
UN Secretary-General António Guterres warned that the UN is "heading toward bankruptcy" and stated that the likelihood of a financial collapse is very high. If current trends continue, the UN is projected to run out of cash by mid-August, coinciding with the process of selecting Guterres's successor.
The US currently owes $4.284 billion, which includes $2.037 billion in regular budget arrears and $2.247 billion in peacekeeping budget arrears.
The administration of President Donald Trump has characterized the UN as a bloated and inefficient organization, insisting that it will only pay its dues after significant restructuring. The US has called for further staff reductions, cuts to business-class travel, and increased use of machine translation.
According to UN regulations, if a member state's arrears exceed the contributions for the previous two years, it loses its voting rights in the General Assembly. There are concerns that the US could lose its voting rights as early as 2027 if the arrears continue.
China, the second-largest contributor to the UN, is also exacerbating the financial crisis. Recently, during Foreign Minister Wang Yi's visit to the UN, China paid $844 million for peacekeeping costs but still owes $455 million.
The Wall Street Journal noted that while China presents itself as "effectively the largest financial contributor to the UN," it has delayed payments, worsening the UN's financial situation. Historically, China paid its dues within months at the beginning of each year, but since 2022, it has postponed payments until the end of the fiscal year.
Some experts interpret the unpaid dues and delayed payments from both the US and China as a means to pressure the UN to meet their political demands.
Jodi Herman, a senior director at the UN Foundation, stated, "The US is not paying its fair share of dues, and China has been exploiting the payment system for years."
The Wall Street Journal reported that China is leveraging its alliance with the Group of 77, a coalition of developing countries, to exert influence during UN budget discussions. It also pointed out that China provides minimal funding for UN humanitarian programs.
The UN's unique accounting rules are also contributing to the financial crisis. The UN refunds unspent funds based on member states' dues assessments by the end of the year. However, unpaid dues can also be treated as unspent budgets on the books, making them eligible for refunds.
This year alone, $299 million in non-existent cash has been recorded as refundable credits, with projections suggesting this could rise to $400 million next year.
Earlier this year, Guterres urged member states in a letter to reform these regulations, stating, "We are trapped in a Kafkaesque cycle of being asked to refund non-existent cash."
In response to the financial crisis, the UN has initiated significant austerity measures. It plans to cut 3,000 staff positions, reduce interpretation hours, and postpone maintenance of its New York headquarters.
Additionally, the UN is accelerating the withdrawal of peacekeeping forces from conflict zones in Africa, such as the Democratic Republic of the Congo, and is cutting peacekeeping budgets. Reimbursements to developing countries like Nepal and Bangladesh that have deployed troops for peacekeeping are also being delayed.
There are growing concerns within the UN that if cash shortages materialize, staff salaries could be halted, and food and security programs could be paralyzed.
* This article has been translated by AI.
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