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Towards Common Understanding on Management Reform

Statement by Ambassador Zalmay Khalilzad, U.S. Permanent Representative

By Zalmay Khalilzad

April 8, 2008

Mr. President,

I wish to express our appreciation to you for organizing this thematic debate on management reform.  We believe that the three subjects that you have identified for particular focus during the debate are timely and critical to the success of the United Nations in achieving its goals and objectives so important to Member States and to millions around the world who directly depend on the Organization.  In my presentation today, I will focus primarily on the subject of planning and the budgetary process of the Organization, although I will also touch briefly on the two other subjects:  the mandate cycle and management of human resources.

The Budgetary Process

Mr. President, we need to reform the way we are dealing with the budget.  The immediate reason is what has happened with the 2008-2009 budget. Initially, the Secretary General submitted a proposed budget of $4.39 billion, which he subsequently increased to $4.6 billion.  However, at the same time, the Secretariat identified some one billion dollars in additional "add ons".  These "add ons", if ultimately approved, would have resulted in an increase of some 25 percent from the 2006-2007 biennium budget -- the largest increase and the largest budget in the history of the UN.  In the end, the General Assembly made a number of cuts and deferred action on a number of significant items, bringing the "initial" budget for the biennium down to $4.17 billion - the same level as the 2006-2007 budget.

While Member States took different positions on various aspects of the budget, there were several concerns:  First, the piecemeal way in which it was presented and considered.  This approach prevented Member States from having the opportunity to weigh the proposals contained in the budget as a whole and engage in any meaningful process of priority setting.  We are now confronted with proposals totaling some one billion dollars in additional costs that we are required to consider in the Main session of the 63rd General Assembly next Fall. 

Having acted on the initial budget last Fall, our capacity to rationalize among the various proposals in the budget is limited to those that will be before us in the Fall.  With few rules to guide us in dealing with the one billion dollars in “add-ons,” we must try to set priorities and determine what is absolutely essential.  We will do our best, but Member States will need help from the Secretariat.  For example, consistent with existing provisions regarding the budget process for dealing with new proposals, we would urge the Secretary General to propose off-sets as one of the means for financing new or expanded activities not involving matters of peace and security.

Second, the lack of discipline in the proposed budget process which threatened such unprecedented growth. 

Mr. President, for future budgets, we believe that more improvements are possible, and we are buoyed by the possibilities that might flow from this thematic debate.  Initially, we would like the Secretary-General to issue a budget outline for 2010-2011 that reflects a fully funded budget without informally identifying additional “add-ons” to be addressed later in the biennium.  We would also like to see implemented existing provisions in the budget process approved by the General Assembly that call upon the Secretary General to make proposals for savings or reductions when introducing proposals for new spending after the adoption of the budget.  Like any fiscally responsible public or private entity, unrestrained budget growth is not sustainable unless reductions or savings are also part of the budgeting process.

Because the issue of UN management reform is so important to the future of this institution, the is grateful to the four member states – , , , and – for their timely and excellent contribution to our discussions.  The ideas that they have generated provide food for thought and many go to the very heart of the issues under discussion.  For example, we believe that the idea for improving evaluation and accountability are worthy of our consideration.  Without good information about the performance of mandated activities, it is extremely difficult for Member States to decide whether and how to extend or terminate these mandates.  In addition, their ideas for training staff and the delegates of member states on good budgeting practices and the latest evaluation tools also are worthy of our consideration.  And while accountability is often seen as a negative function, we believe it is equally important to recognize positive achievements disclosed through an effective evaluation process.  In short, the United States welcomes the ideas generated by these four Member States and looks forward to discussing those and other ideas with our colleagues.

Mr. President, never before has the well-being of so many people depended on the United Nations.  And because the UN’s work is so important and to sustain support for the UN budget with member states, we must act strongly to prevent corruption, mismanagement, and abuse.  If we do not, we would be squandering scarce resources and undermine the UN’s reputation and credibility.  We are all responsible for providing the world with a UN that is capable of tackling the world’s most pressing problems without losing sight of our responsibilities of sound budget and management practices.  We must all support initiatives throughout the UN system to improve management, transparency, and ethics practices so that the UN is more effective and more accountable.

Mandate Cycle

Mr. President, my government believes that mandate review is one of the most important of the reforms agreed upon at the 2005 Summit of World Leaders.  We, like others, believe that mandate review offers the opportunity to eliminate obsolete, overlapping or redundant mandates and make the Organization more efficient and effective.  We are frustrated with the lack of significant progress in conducting this review since that Summit.

Nonetheless, the continues to believe that a meaningful mandate review process is important as the Organization enters the 21st century.  In this respect, we welcome and support the renewed efforts of the Co-Chairs’ of the Informal Plenary, and , to substantively and constructively address mandate review.   My delegation reiterates the importance it attaches to the efforts of the Co-Chairs to obtain information from the Secretariat on how they implement and execute activities under their mandates, and whether these activities are redundant or inefficient.  My delegation also supports the efforts of the Co-Chairs to acquire budgetary and financial information from the Secretariat.  This information is critical for meaningful evaluation, review, and analysis of mandates.  We believe that the Secretariat could, and should, be more forthcoming in providing such information.

Mr. President, my delegation looks forward to working with the Co-Chairs and other Member States in making progress on this important matter.

Human Resources Management

In our statements related to the 2005 Outcome Document and in our statements before the Fifth Committee, the has consistently recognized the need for human resources management reform and has supported measures to improve the way the United Nations manages its most valuable resource -- people.  Human resources management comprises many elements and the Secretary General has proposed changes in a number of them.  However, the most important outstanding proposals relate to streamlining the system of contractual arrangements, harmonizing conditions of service, and increasing the effectiveness of UN field missions.  The is optimistic that progress will be made on these important elements of human resources management.

Management reform is vital for making sure that the UN is as effective and efficient as possible to serve people of the world.  Mr. President, we thank you for calling for this thematic debate on this important issue.  We hope that it will provide new ideas and perspectives on how best to manage and govern this vital institution.