The United Nations (UN) is an intergovernmental organization that aims to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a center for harmonizing the actions of nations. As an international organization, the UN requires financial contributions from its member states in order to function. But who exactly provides funding for the UN, and how much do they contribute? In this article, we’ll take a closer look at UN funding sources and contributions.
Overview of UN Funding
The UN receives funding from two primary sources:
- Assessed contributions – These are mandatory payments made by UN member states to finance the regular budget and special peacekeeping operations budget of the UN. Rates are based on a country’s capacity to pay, which takes into account factors like population and gross national income (GNI).
- Voluntary contributions – These are additional funds provided by member states, intergovernmental organizations, private sector organizations, foundations and individuals to finance UN programs, funds and specialized agencies.
The majority of UN funding comes from assessed contributions by member states. In 2019, assessed contributions accounted for around $2.85 billion, while voluntary contributions totaled $15.79 billion. However, the reliance on voluntary funding has been increasing over the past two decades. In 1998, assessed contributions made up 39% of all UN revenue, compared to just 15% in 2018.
Assessed Contributions
The UN General Assembly approves the organization’s regular and peacekeeping budgets every two years. The regular budget covers UN activities like international governance, peace and security, human rights, humanitarian work, legal activities and public information. The separate peacekeeping budget goes towards political, humanitarian, and military operations in conflict areas around the world.
To fund these two budgets, the UN levies assessed contributions on member states. Here are some key things to know:
- Contribution rates are based on a country’s capacity to pay, factoring in population and GNI.
- The General Assembly approves a scale of assessments that sets each member’s contribution rate.
- The five permanent UN Security Council members – United States, China, Russia, France, United Kingdom – shoulder the highest contribution rates.
- The regular budget has a maximum assessment rate of 22%, while the peacekeeping rate cap is 25%. The US contribution rate is currently 22% for both.
- The minimum regular budget contribution rate is 0.001%, which applies to over 50 of the poorest nations.
- Rates are adjusted every 3 years based on changes in GNI and other factors.
In total, the UNaims to raise around $3.3 billion in assessed contributions every year from its 193 member states. However, the actual revenue is often lower because countries delay payments or sometimes fail to pay their full assessments. Arrears and late payments have been an ongoing issue for the UN.
Top Contributors of Assessed Contributions
Due to the scale of assessments formula, wealthy developed nations pay the lion’s share of assessed contributions to the UN’s regular and peacekeeping budgets.
Here are the top 10 providers of assessed contributions for 2019:
| Member State | Contribution (US$ millions) |
|---|---|
| United States | 1,042 |
| China | 536 |
| Japan | 335 |
| Germany | 299 |
| United Kingdom | 253 |
| France | 230 |
| Brazil | 201 |
| Italy | 171 |
| Russia | 146 |
| Canada | 129 |
The United States contributed the most at over $1 billion in 2019. The 10 countries in the table above accounted for nearly 50% of all assessed contributions that year.
Meanwhile, many lower income and developing nations pay the minimum 0.001% assessment for the regular budget. For example, 47 nations including Afghanistan, Haiti and Somalia paid just $6,684 each in 2019. Overall, low-income countries have limited financial responsibility for UN funding compared to wealthier nations.
Voluntary Contributions
In addition to assessed funding, the UN receives significant voluntary contributions every year. These funds come from:
- Member states, to support particular UN programs and agencies
- Intergovernmental organizations like regional development banks
- Private foundations and major donors
- Corporations, charities, and other private sources
Voluntary contributions can be earmarked for specific activities and allow donors more control over how funds are used. The money often goes towards humanitarian relief, development aid, technical assistance and norm-setting activities across the UN system.
Top Voluntary Donors
The United States provides the most voluntary funding to the UN by a large margin. In 2019, the US contributed over $7.3 billion in voluntary contributions, accounting for more than 46% of all funding in this category.
The top 10 voluntary donors in 2019 were:
| Donor | Contribution (US$ millions) |
|---|---|
| United States | 7,338 |
| United Kingdom | 1,157 |
| Germany | 857 |
| European Union | 482 |
| Sweden | 377 |
| Japan | 362 |
| Netherlands | 353 |
| Norway | 343 |
| Canada | 318 |
| Switzerland | 289 |
Similar to assessed contributions, voluntary contributions are dominated by wealthy Western nations. However, a few large developing countries also make the top 25, including Saudi Arabia, India, Turkey and South Korea.
Private philanthropies provide sizable voluntary support as well. For example, the Bill & Melinda Gates Foundation contributed over $250 million in 2019, mainly towards health initiatives like vaccines, nutrition and sanitation.
UN Agency Funding
Along with its main organs like the General Assembly and Secretariat, the UN also encompasses numerous funds, programs, specialized agencies and other entities focused on particular policy areas.
These agencies receive a significant portion of the voluntary contributions, allowing donors to target specific issues. In 2019, six major UN funds and programs accounted for over $8 billion in voluntary funding:
- UN Development Programme (UNDP)
- UN Children’s Fund (UNICEF)
- World Food Programme (WFP)
- UN Refugee Agency (UNHCR)
- World Health Organization (WHO)
- UN Population Fund (UNFPA)
Examples of other major UN organizations funded through voluntary contributions include:
- UN Environment Programme (UNEP)
- UN Human Settlements Programme (UN-HABITAT)
- Office for the Coordination of Humanitarian Affairs (OCHA)
- UN Women
- World Food Programme (WFP)
- International Atomic Energy Agency (IAEA)
Allowing donors to target priority issues and agencies provides more flexibility. However, this voluntary funding structure also makes parts of the UN system vulnerable if certain donors reduce contributions due to political or budget changes.
Funding Shortfalls and Arrears
Despite assessed contributions being mandatory, shortfalls still occur due to late payments and unpaid dues. As of early 2022, UN member states owed nearly $855 million in outstanding payments just for the regular budget and peacekeeping operations:
- United States – $459 million in arrears, mainly for peacekeeping
- Brazil – $143 million outstanding
- Argentina – $51 million outstanding
- Mexico – $36 million outstanding
- Iran – $27 million outstanding
Persistent arrears can create major cash flow and liquidity problems for the UN. Voluntary contributions have also failed to keep up with increased demands in recent years.
Due to funding shortfalls, the UN has had to cut programs and limit hiring. Secretary General Antonio Guterres has warned of growing financial problems and called for increased funding from member states.
Reforming UN Funding
There have been various proposals over the years to reform UN funding to make it more sustainable and efficient:
- Expanding the donor base – Reduce reliance on a handful of large donors by bringing in more member states
- New pooled funding mechanisms – Have member states contribute to collective, multi-year funds instead of individual agencies and projects
- Dynamic scale of assessments – Frequently adjust assessments to reflect economic changes rather than waiting 3 years
- Better budget prioritization – Focus resources on core UN functions and cut outdated or duplicative programs
However, most major reforms require agreement by member states and the UN has historically faced challenges in building consensus around budgetary changes.
Conclusion
In summary, the UN receives the majority of its funding from assessed contributions made by member states and voluntary contributions from nations, organizations and philanthropies. Wealthy developed countries shoulder most of the assessed contribution burden. For voluntary funding, the US and other Western nations also dominate as the top donors.
Dependence on a limited donor base makes UN funding precarious. Budget shortfalls are common due to late payments and underfunded mandates. Without better management of existing resources and expansion of funding sources, financial instability seems likely to persist.