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Budget And Financial Issues Of The United States

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BUDGET AND FINANCIAL ISSUES At its formation, the UN had inherited financial problems from its predecessor – the League of Nations (McDermott, 2000). Seventy years down the lane, financial problems have been at the core of the UN activities in peacekeeping missions. Thus, the issue of budgetary crisis with regards to financing old and new peacekeeping operations continue to persist. According to McDermott (2000), peacekeeping “have been both the making and near breaking of the organization.” On one hand, peacekeeping expansion from traditional peacekeeping to peacekeeping and now peacebuilding have contributed to the exponential growth of the organization. On the other hand, the spread out of peacekeeping increases cost and have overly …show more content…

As peacekeeping missions are organized on adhoc basis, each peacekeeping mission budget is authorized separately, and member states are assessed per mission. It is interesting to point out that the peacekeeping budget allocation since its creation has always been far more than the regular budget of the UN as a whole (McDermott, 2000). To demonstrate this, according to McDermott (2000), “the budgeted expenditures of the UN in 1994 reached $8.3 billion, of which $1.3 billion went to regular budget; $3.3 billion to peacekeeping operations; and the remaining $3.7 billion on operational activities and programs supported by voluntary contributions.” As noted in Article 17 of the charter, the expenses of the organization shall be borne by member states and approved by the General Assembly (UN charter). However, the charter does not point out the scale of contributions from member states. The system evolved over years with formulas that determine contributions based on the capacity of countries to pay. As a result of the special role played by the five permanent members of the Security Council, the system allocates to them a very high percentage (McDermott, 2000). In December 2000, the General Assembly reaffirmed this with resolution A/RES/55/235. (UNGA, 2015). The system therefore categorizes member states into groups: A, B, C and D, for scaled of assessed contributions. Category A

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