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UN eyes sweeping shakeup amid aid cuts, budget woes, global pressure

by Reuters

GENEVA, Switzerland May 02, 2025 - 9:09 am GMT+3
Edited By Kelvin Ndunga
People attend a Security Council meeting at the United Nations headquarters, New York City, U.S., March 18, 2025. (Reuters Photo)
People attend a Security Council meeting at the United Nations headquarters, New York City, U.S., March 18, 2025. (Reuters Photo)
by Reuters May 02, 2025 9:09 am
Edited By Kelvin Ndunga

The United Nations is weighing a sweeping restructuring plan that would merge key departments and redirect resources globally, according to a confidential internal memo authored by senior officials leading a major reform effort.

Prompted by budget strains and U.S. aid cuts under President Donald Trump – blows that severely weakened humanitarian operations – the high-level review lays out an ambitious vision for streamlining the U.N.’s sprawling bureaucracy.

The six-page document, reviewed by Reuters and marked “strictly confidential,” outlines a series of “suggestions” to consolidate dozens of agencies into four central pillars: peace and security, humanitarian affairs, sustainable development and human rights.

One proposal, for example, would combine the operational functions of the World Food Programme, UNICEF, the World Health Organization (WHO) and the U.N. refugee agency into a single humanitarian body.

The memo includes a mix of bold, modest and exploratory ideas which, if implemented in full, would mark the most significant overhaul the U.N. has seen in decades.

It suggests merging the U.N. AIDS agency into the WHO and reducing the need for up to six translators at meetings. Another suggestion proposes merging the World Trade Organization – which is not a U.N. entity – with U.N. development agencies.

One official familiar with the memo called it a starting point.

But the language of the internal self-assessment appears to confirm what both supporters and critics of the global body have long said: that the U.N. needs streamlining. In a series of observations, the memo refers to “overlapping mandates,” “inefficient use of resources,” “fragmentation and duplication,” and notes a bloating of senior positions.

It describes “systemic challenges” the U.N. faces – problems exacerbated as the General Assembly continues to add missions and programs. “Increased mandates, often without clear exit strategies, and complexities have led to significant overlaps, inefficiencies and increased costs,” the document said.

The memo was prepared by a task force appointed in March by Secretary-General Antonio Guterres, who said at the time the body needed to make itself more cost-effective.

The task force, considering long-term structural changes, is in addition to shorter-term cost-cutting efforts. Some diplomats have described the effort as a proactive step to help forestall deeper U.S. cuts.

“The memo is the result of an exercise to generate ideas and thoughts from senior officials on how to achieve the secretary-general’s vision,” said Guterres’ spokesman, Stéphane Dujarric.

Guterres has long called for U.N. reform. During a meeting with Trump in 2017, the secretary-general told the U.S. president that the world body was saddled with “fragmented structures, byzantine procedures, endless red tape.”

But it is now facing one of the greatest financial crises in its 80-year history. At the start of the year, the United States – by far the U.N.’s largest donor – was already about $1.5 billion in arrears in mandatory payments for the regular budget and $1.2 billion in arrears for peacekeeping.

Since Trump took office in January, he has cut billions of dollars more in foreign assistance as part of his “America First” foreign policy.

Cuts and geopolitical shifts

The task force memo does not mention any country by name but notes starkly that “geopolitical shifts and substantial reductions in foreign aid budget are challenging the legitimacy and effectiveness of the organization.”

Among the impacts: The U.N. humanitarian office, which faces a $58 million shortfall, has cut 20% of its staff. UNICEF projects its budget will shrink by 20%, and the U.N. migration agency expects a 30% budget drop, affecting 6,000 jobs.

The cuts are “having an immediate, devastating impact,” Bob Rae, the Canadian ambassador and president of the U.N.’s Economic and Social Council, said Monday.

“What’s happening is terrible – we’re cutting rations in refugee camps,” Rae said.

The memo also suggests relocating some U.N. staff from more expensive cities to lower-cost locales and merging operations in Rome. Another shorter internal memo sent to senior U.N. officials last week and seen by Reuters instructed them to prepare by May 16 a list of jobs that could be performed outside New York or Geneva.

“We must take bold and immediate steps to improve the way we work, maximizing efficiency while reducing costs,” said the second memo. Hundreds of U.N. staff protested job losses in Geneva on May 1.

Staff directly supporting the U.N. General Assembly and the Security Council in New York would remain, the first memo said.

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  • Last Update: May 02, 2025 11:33 am
    KEYWORDS
    united nations donald trump who world trade organization world food programme unicef
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