The United Nations' Money Problem: A Rule That Hurts More Than Helps

The United Nations is in a tough spot. It's trying to fix a weird rule that could force it to give back hundreds of millions of dollars to countries. This is happening while the U. N. is already dealing with a cash shortage.

The Problem

The U. N. has a rule that says if it doesn't spend money because countries pay late or not at all, it has to return that money. Next year, this could mean giving back nearly $300 million. That's a big chunk of the planned $3.2 billion budget.

"The U. N. is in a tight spot because it has to return money it never even got."

-- Tatiana Valovaya, U. N. office in Geneva

The Cash Crisis

The U. N. is already cutting its budget by 15% to save money. The main reason for the cash crisis is that the United States, one of the biggest contributors, hasn't paid its dues. Many are worried that the U. S. might not pay at all under President Donald Trump, who has criticized the U. N.

The Rule and Its Implications

The U. N. charges countries based on how big their economies are. The rule made sense when countries paid on time and in full. But as of mid-December, only 148 out of 193 member countries had paid their dues.

Secretary-General Antonio Guterres wants to pause this rule for now. He thinks the amount to be returned could rise to $600 million in 2027. He warns that this could lead the U. N. to bankruptcy.

The Expert's View

Ronny Patz, a U. N. finance expert, calls this a "runaway crisis." He says the U. N. might not be able to do its basic jobs, which would affect everything it does.