UN chief calls for major reforms to cut costs and improve efficiency

Amid financial strain and growing global challenges, UN Secretary-General António Guterres is pushing for wide-ranging structural reforms to enhance the world body’s effectiveness.

Briefing Member States in New York on Monday Mr. Guterres outlined wide-ranging effort to revamp how the UN system operates – cutting costs, streamlining operations, and modernizing its approach to peace and security, development and human rights.

“These are times of peril,” he said, “but they are also times of profound opportunity and obligation. The mission of the United Nations is more urgent than ever.”

Three main objectives

Launched in March, the UN80 Initiative centres on three priorities: enhancing operational efficiency, assessing how mandates – or key tasks – from Member States are implemented, and exploring structural reforms across the UN system.

The conclusions will be reflected in revised estimates for the 2026 budget in September this year, with additional changes that require more detailed analysis presented in the proposal for the 2027 budget.

‘Meaningful’ budget reductions

Mr. Guterres said the changes are expected to yield “meaningful reductions” in the overall budget. For example, the departments for political and peacekeeping affairs could see a 20 per cent reduction in staff by eliminating duplication.

This level of reduction, he said, could serve as a benchmark across the UN system – while also considering unique factors for each department.

Additional examples include consolidating all counter-terrorism work within the main Office of Counter-Terrorism (UNOCT), ending building leases and relocating posts away from expensive “duty stations” where cost of living is high.

“There might be immediate, one-off costs involved in relocating staff and providing potential termination packages,” he said, “but by moving posts from high-cost locations, we can reduce our commercial footprint in those cities and reduce our post and non-post costs.”

Efficiencies and upgrades

The first workstream focuses on efficiencies and improvements, developing a new model that improves consolidation, looks at centralising services, relocating to cheaper locations, and expanding the use of automation and digital platforms.

Mr. Guterres said departments the UN’s headquarters in New York and Geneva have been asked to review whether some teams can be relocated to lower-cost duty stations, reduced or abolished.

Reviewing mandates

The second workstream involves a review of how existing mandates are being carried out – not the mandates themselves, which are the purview of Member States only.

A preliminary review identified more than 3,600 unique mandates for the Secretariat alone. A full and more detailed analysis is now underway.

Mr. Guterres emphasised that the sheer number of mandates – and the bureaucracy needed to implement them – places a particular burden on smaller Member States with limited resources.

“Based on this work, Member States may wish to consider the opportunity to conduct themselves a review of the mandates,” he added.

Structural change

The third workstream – focused on structural reform – is already underway, Mr. Guterres said.

Nearly 50 initial submissions have already been received from senior UN officials, reflecting what Mr. Guterres described as “a high level of ambition and creativity.”

Key work areas have been identified for review. These include peace and security, development, human rights, humanitarian, training and research and specialised agencies.

Not an answer to liquidity crisis

Mr. Guterres also touched on the UN dire cashflow situation, noting that the initiative “is not an answer” to the months-long liquidity crisis but by being more cost effective, it should help limit the impact.

“The liquidity crisis is caused by one simple fact – the arrears,” he said, adding that structural reform is not the answer to a fundamental failure by some Member States to pay what they owe on time to meet running costs.

Unpaid dues

According to information provided by the UN Controller to the General Assembly’s Fifth Committee (Administrative and Budgetary), only $1.8 billion has been received against the $3.5 billion regular budget assessments for 2025 – a shortfall of around 50 per cent.

As of 30 April, unpaid assessments stood at $2.4 billion, with the United States owing about $1.5 billion, China ($597 million), Russia ($72 million), Saudi Arabia ($42 million), Mexico ($38 million), and Venezuela ($38 million). An additional $137 million is yet to be paid by other Member States.

For the peacekeeping budget (which runs on a July-June cycle), including prior-period arrears, the unpaid amount totals $2.7 billion. For the International Tribunals, total contribution outstanding was $79 million as of 30 April.

Close consultation

The Secretary-General told Member States he would be consulting with them  closely and regularly on the cash crisis and needed reforms, seeking guidance  and presenting concrete proposals for countries to act on.

UN staff members and their representatives are being consulted and listened to, he added: “Our concern is to be humane and professional in dealing with any aspect of the required restructuring.”

In conclusion, he highlighted that the UN80 Initiative is a “significant opportunity” to strengthen the UN system and deliver for those who depend on it.

In response to the suggestion that the UN should focus on just the one key pillar of peace and security, he said it would be wrong to ditch development and human rights – all three are essential he underscored.

“Let us seize this momentum with urgency and determination, and work together to build the strongest and most effective United Nations for today and tomorrow.”