The principles of the UN Charter are the foundation of the Organization’s work—guiding its mission to promote peace, development, and human rights for all. Credit: UN Photo/Amanda Voisard
By Naïma Abdellaoui
GENEVA, Jul 3 2025 – Recent proposals to relocate UN operations to lower-cost duty stations ignore demonstrable economic patterns. Empirical evidence suggests that establishing UN hubs often triggers localized inflation, negating projected savings.
Case Study: UN Presence in Nairobi
While city-wide inflation is driven by national policies, population growth, infrastructure deficits and global shocks, the UN significantly increased rents and land prices in affluent Nairobi neighborhoods, creating enclaves of hyper-inflation for premium goods and services.
While most Nairobians struggle with costs tied to local realities, elites near UN hubs face Paris-level prices. UN operations inherently stimulate demand for premium housing, security, and bilingual services. Projected savings rarely materialize once market adjustments occur.
The Liquidity Crisis: Self-Inflicted and Avoidable
The Secretary-General’s 2023 definitive shift from biennial to annual budgets—contrary to historical practice—exacerbated cash-flow vulnerabilities.
This restructuring ignored the U.S. payment pattern (80% of contributions arrive in Q4), transforming manageable delays into systemic crises.
Result:
– Premature austerity measures (20% staff cuts) targeting high-experience personnel.
– Erosion of institutional capacity in critical areas (peacekeeping, humanitarian law).
Underutilized Charter Provisions: Article 6 and Article 19
The UN Charter provides robust tools to address fiscal noncompliance and political obstruction:
1. Article 19 (Voting Suspension):
Permits revocation of voting rights for members exceeding two years of arrears. This was applied 13 times (e.g., Libya 2021). Yet chronic non- or late-payers (notably the U.S., owing $1.3B) face no enforcement. (Article 19 A Member of the United Nations which is in arrears in the payment of its financial contributions to the Organization shall have no vote in the General Assembly if the amount of its arrears equals or exceeds the amount of the contributions due from it for the preceding two full years. (…))
2. Article 6 (Expulsion):
Allows expulsion of states “persistently violating” Charter principles. Historically unused despite patterns of withholding funds to exert political pressure. (Article 6 A Member of the United Nations which has persistently violated the principles contained in the present Charter may be expelled from the Organization by the General Assembly upon the recommendation of the Security Council).
Alternative Reform Pathways
Rather than relocating staff or dismantling entities, the UN could:
A. Leverage Geopolitical Counterweights
– Relocate HQ functions to Geneva as a deterrent against contribution withholding.
– Impact: New York stands to lose $3.3B/year in economic activity when the US assessed contribution amounts to only $1.3B/year.
B. Enforce Financial Accountability
– Convert arrears into sovereign debt under international law.
– Suspend veto rights for chronic non-payers (per Article 19).
C. Preserve Institutional Integrity
– Revert to biennial budgets to accommodate payment cycles and patterns.
– Include staff unions in reform design (e.g., UN80 Task Force).
The UN80 Paradox: Efficiency vs. Institutional Amnesia
Accelerated consolidation without stakeholder consultation risks:
– Operational Fragility: Loss of specialized expertise (e.g., conflict mediation, logistics).
– Legacy Erosion: Undermining 80 years of norms (human rights, humanitarian law).
Conclusion: A Call for Charter-Compliant Solutions
The UN’s viability hinges on using its existing legal tools—not on self-imposed austerity.
Member states (particularly G77+China and BRICS) could:
1. Demand enforcement of Article 19 against non-paying states.
2. Propose a GA Resolution 80/… (invoking Article 6) for states obstructing multilateralism.
3. Commission an independent audit of relocation cost assumptions.
The path to reform lies not in fragmenting the UN’s foundations, but in reclaiming the courage of its Charter.
IPS UN Bureau
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Excerpt:
Naïma Abdellaoui is a Concerned International Civil Servant and Staff Representative
Member of the Executive Bureau of UNOG Staff Union