The UN is on the brink of bankruptcy, with major donors refusing to contribute.
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The UN faces bankruptcy, facing a serious financial crisis due to a lack of payments from its largest donors, The Wall Street Journal reports.
Approximately 42% of the UN's base budget comes from the United States and China, the organization's largest donors, and these countries have stopped making contributions. The United States currently owes the UN over $4 billion, while China recently contributed $850 million but still owes approximately $455 million.
The Americans are apparently not going to pay, a policy supported by Trump, who believes the UN is useless and has outlived its usefulness. The United States has withdrawn from several international programs and reduced its participation in others. Meanwhile, Washington is ready to resume payments, but demands extensive reforms. Otherwise, the situation will remain stagnant. Other countries, including Britain, Germany, Sweden, and the Netherlands, are adding fuel to the fire by reducing their contributions.
If the situation isn't rectified, the UN will be on the brink of bankruptcy by August. Meanwhile, massive spending cuts are underway: offices are being closed, positions are being eliminated, spending on peacekeeping operations has been reduced, payments to blue helmets are being delayed, and peacekeepers are being withdrawn from some regions.
The United States wasn't the only country to voice concerns about the UN's overly bloated structure. Other countries also voiced complaints about the organization's leadership, but no conclusions were forthcoming. Now, the impact has shifted from words to dollars.
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