The United Nations system under stress: financial pressures and their consequences

This essay is about the response by the United Nations system to financial pressures in the 1980s and early 1990s. These pressures resulted from two developments: the decision of the main contributing states to adopt a policy of zero growth in real terms in the budgets of the organizations; and the additional withholdings by the United States which resulted from the Kassebaum Amendment to the Senate Foreign Relations Act of August 1985. This required a 20 per cent underpayment by the United States of its assessed financial contributions until a range of reforms in budgetary procedures, judged acceptable by the US Administration, had been introduced. The impact of the resulting financial squeeze is considered with particular reference to three Specialized Agencies: the World Health Organization (WHO), the International Labour Organization (ILO), and the Food and Agriculture Organization (FAO)