U.N. financial "crisis" caused by nonpayment of assessed contributions

The Group of 77 has consistently maintained the position that the current crisis of payments facing the United Nations is the direct consequence of the nonpayment of substantial arrears and overdue contributions by some major contributors. Viable solutions to the financial situation can emerge only when Member States take concrete actions to clear their arrears and pay their future assessed contributions in full, on time and without conditions or benchmarks, in accordance with article 17 of the Charter.

The Group has carefully examined the question of the perceived linkage between the current financial situation and the methodology of the scale of assessments, and has come to the conclusion that the crisis of payments has not been caused by the scale of assessments. Revisions to the current methodology will not solve this crisis of payment since it will neither change the aggregate level of revenues available to the Organization nor guarantee payment of assessed contributions promptly and in full in the future.

The Member States of the Group of 77, which is collectively among the largest contributors to the peace-keeping efforts of the United Nations through the provision of troops and equipment, has in effect been financing the UN outlays as an indirect consequence of delays in payments by some major contributors of their assessed contributions.