Is the world on an economic meltdown? It may seem so, because, if the United Nations chief says, then there is something to be analyzed taking a step back. There may not be enough money for the United Nations to clear their short term dues including salary. UN Secretary-General Antonio Guterres warned on Tuesday. The general told the 193 member U.N. General Assembly’s budget committee that if there were no corrective measures taken at the nick of time by him then there would have been some disastrous consequences which would result in the liquidity crisis.
The US is the largest contributor that is responsible for 22% of more than $3.3 billion regular budget for 2019, this budget is utilized in paying for the works including in political, humanitarian, disarmament, economic & social affairs, and communications. The secretary also quoted “this month, we will reach the deepest deficit of the decade. We risk entering November without enough cash to cover payrolls, our works and reforms are at risk”.
Washington owes approximately roughly about $381 million for the previous regular budgets and $674 million for the upcoming budget. The US president Mr. Trump said that Washington shoulders a burden that is unfair on the part of the members of the United Nations. The UN secretary had to implement cost-cutting modes for damage control for cash leak with curbing unnecessary travels, vacant posts cannot be filled, and some meetings may be canceled or deferred. One of the main cause of concern is the UN peacekeeping missions which has a spate budget but which may adversely get affected and jeopardize many high octane missions worldwide. The US is a larger contributing member to the peacekeeping budget with 28% coming from it these years but has pledged to pay only 25% with the changing stance of the Trump government. The UN has said that its peacekeeping operations cost less than half of 1% of the world’s military expenditures.
The global economic slowdown is an alarm bell for economies especially emerging economies like India and China. The slowdown will have a cascading effect on the overall global price determination of the most powerful currency which is the US dollar. This may also bring a tectonic shift in the global economic powerhouse and the world may see a better alternative to China being the only contender to it. United Nations are on the verge of something that is unheard of since its inception, and going forward we may have to answer more questions of what is to come.
