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The UN General Assembly approved an increase of about 5 percent to cover the UN’s regular operations in 2012-13 at the end of December 2012, raising the two-year budget to $5.4 billion. At the same time, the assembly approved new rates that all UN members pay for the regular budget.
As newly emerging economies, China, Russia, Brazil and India agreed to hefty increases of their UN dues. According to the new rates, China will pay an extra 61 percent in UN fees, taking its share of the budget from 3.19 to 5.15 percent. It will overtake Canada and Italy to become the sixth biggest UN contributor.
Upgrading international status
The large increase of payments will undoubtedly constitute a heavy burden for China, as its economy has not been immune to the severe impact brought on by the global financial crisis and the ensuing European debt crisis. Since the share is set according to China’s growing capability, the nation is willing to accept the new rate and fulfill its corresponding international responsibilities.
The continuing rapid development of China has given the international community higher expectations regarding China’s assumed responsibility for UN contributions. However, though China has become the second largest world economy, its percapita GDP still ranks behind 100 countries in the world. Therefore, it is reasonable and fair for China to continue receiving the preferential policy rate intended for “low percapita countries.”Given the fact that China remains a developing country, it would be one-sided if the international community exaggerates the country’s international responsibilities based simply on its GDP.
During the assessment of member states’ dues proposed by the Fifth Committee(Administrative and Budgetary) of the UN General Assembly, China and other emerging countries firmly supported the principle of respective capabilities. Chinese Deputy Permanent Representative to the UN Wang Min said the scale of assessments of the UN must be formulated strictly in accordance with respective capabilities of each country. Determining a country’s capacity to pay requires a comprehensive and integrated perspective that takes into account both the gross national income and, more importantly, the per-capita income of the country. While the former is the basis, the latter is the decisive factor.
Given the differences among countries in terms of size, development stage, level of economic growth and wealth owned by nationals, it is only natural that different countries have varying capacities to pay. With developing countries constrained by a weak economic foundation and the onerous task of poverty eradication, it is fair to say that they are leagues behind developed countries in terms of overall living standards. Ignoring per-capita income and using only gross national income to measure the actual capacity to pay is partial and unfair.
A population of 150 million in China lives under the UN-set poverty line. Chinese representatives to the UN appealed that the country’s capacity to pay should be evaluated in an objective and reasonable way and should not be separated from the nation’s conditions and the overall international economic environment.
A proper increase of China’s UN payment at this time is reasonable. It is the embodiment of the country’s growing financial capacity due to the fast growing economy and the enhanced comprehensive national strength.
In fact, with the continuous promotion of China’s comprehensive national strength since the introduction of the reform and opening-up policy at the end of the 1970s, the country’s UN payment share has continuously risen—significantly more so since the beginning of the 21st century. Since then, China’s UN payment share has increased from 0.995 percent before 2000 to 5.15 percent. The number is expected to rise after 2015.
The increase of China’s UN fees would be conducive to promoting its international status, image and influence. Chinese Foreign Ministry spokeswoman Hua Chunying said the increasing share shows that China is a responsible power. As its payment share is above 5 percent, critical voices accusing China of paying “too little” UN fees as a permanent member of the UN Security Council will be weakened. The number of Chinese employees in UN organizations will increase, which will help to bolster the voice of China.
Global contribution
As the world’s most universal, representative and authoritative international inter-governmental organization, the UN is one of the most important platforms to promote multilateral cooperation, playing an irreplaceable role in international affairs. Under the new situation, the international community widely anticipates that the UN could be more active in maintaining world peace, promoting common development and strengthening international cooperation. Therefore, stable and sustainable financial support is a major guarantee for the normal operation of the UN and its larger role. UN member states should pay their assessed contributions timely and in full so as to ensure the normal operation of the UN and the smooth implementation of its missions. However, some countries often violate their obligations and default their UN fees deliberately, particularly the United States. As the world’s premier power, the United States should naturally contribute the largest share of UN fees. After the adjustment, the United States’ share for the regular budget will remain unchanged at 22 percent, still the highest in the world. But its actions of payment default and coercing the UN through such defaults often results in financial disorder.
China is a country that abides by the principles of credit and has always fulfilled its obligation to pay UN fees. The increase of China’s payment share is surely a piece of good news for the fiscal outlook of the UN, especially considering that it never ties its payment to any political preconditions.
China’s increased financial contribution to the UN will have a more positive influence and further allow it to promote peace, development and cooperation of the world. It is conducive to the practice of multilateralism and the UN’s central role in world affairs.
Based on a report of the Fifth Committee of UN General Assembly in 2012, the ratio of financial contributions of many member of the Group of 77 and emerging economies including China to the UN will undergo a large increase in the next three years. In sharp contrast, contributions by developed countries will decline sharply. Emerging markets continue to rise collectively and lead the economic growth of the world while developed countries are mired in a slow recovery. The situation reflects the new pattern within the UN featuring the rise of developing countries and the decline of developed countries, which is starkly demonstrated by the UN payment adjustment.
The Chinese economy is expected to continue its rapid growth in the next decade. By 2020, it is very possible that China could double its 2010 GDP and per-capita income for both urban and rural residents. By then, China’s capability for UN payment and its payment share would also increase.
It is estimated that the trend of China’s UN payment increase will continue for quite some time in the future. If the trend continues, it would not be long before the country becomes the second largest UN contributor. It naturally follows that China will play a much greater role as a responsible global power.
As newly emerging economies, China, Russia, Brazil and India agreed to hefty increases of their UN dues. According to the new rates, China will pay an extra 61 percent in UN fees, taking its share of the budget from 3.19 to 5.15 percent. It will overtake Canada and Italy to become the sixth biggest UN contributor.
Upgrading international status
The large increase of payments will undoubtedly constitute a heavy burden for China, as its economy has not been immune to the severe impact brought on by the global financial crisis and the ensuing European debt crisis. Since the share is set according to China’s growing capability, the nation is willing to accept the new rate and fulfill its corresponding international responsibilities.
The continuing rapid development of China has given the international community higher expectations regarding China’s assumed responsibility for UN contributions. However, though China has become the second largest world economy, its percapita GDP still ranks behind 100 countries in the world. Therefore, it is reasonable and fair for China to continue receiving the preferential policy rate intended for “low percapita countries.”Given the fact that China remains a developing country, it would be one-sided if the international community exaggerates the country’s international responsibilities based simply on its GDP.
During the assessment of member states’ dues proposed by the Fifth Committee(Administrative and Budgetary) of the UN General Assembly, China and other emerging countries firmly supported the principle of respective capabilities. Chinese Deputy Permanent Representative to the UN Wang Min said the scale of assessments of the UN must be formulated strictly in accordance with respective capabilities of each country. Determining a country’s capacity to pay requires a comprehensive and integrated perspective that takes into account both the gross national income and, more importantly, the per-capita income of the country. While the former is the basis, the latter is the decisive factor.
Given the differences among countries in terms of size, development stage, level of economic growth and wealth owned by nationals, it is only natural that different countries have varying capacities to pay. With developing countries constrained by a weak economic foundation and the onerous task of poverty eradication, it is fair to say that they are leagues behind developed countries in terms of overall living standards. Ignoring per-capita income and using only gross national income to measure the actual capacity to pay is partial and unfair.
A population of 150 million in China lives under the UN-set poverty line. Chinese representatives to the UN appealed that the country’s capacity to pay should be evaluated in an objective and reasonable way and should not be separated from the nation’s conditions and the overall international economic environment.
A proper increase of China’s UN payment at this time is reasonable. It is the embodiment of the country’s growing financial capacity due to the fast growing economy and the enhanced comprehensive national strength.
In fact, with the continuous promotion of China’s comprehensive national strength since the introduction of the reform and opening-up policy at the end of the 1970s, the country’s UN payment share has continuously risen—significantly more so since the beginning of the 21st century. Since then, China’s UN payment share has increased from 0.995 percent before 2000 to 5.15 percent. The number is expected to rise after 2015.
The increase of China’s UN fees would be conducive to promoting its international status, image and influence. Chinese Foreign Ministry spokeswoman Hua Chunying said the increasing share shows that China is a responsible power. As its payment share is above 5 percent, critical voices accusing China of paying “too little” UN fees as a permanent member of the UN Security Council will be weakened. The number of Chinese employees in UN organizations will increase, which will help to bolster the voice of China.
Global contribution
As the world’s most universal, representative and authoritative international inter-governmental organization, the UN is one of the most important platforms to promote multilateral cooperation, playing an irreplaceable role in international affairs. Under the new situation, the international community widely anticipates that the UN could be more active in maintaining world peace, promoting common development and strengthening international cooperation. Therefore, stable and sustainable financial support is a major guarantee for the normal operation of the UN and its larger role. UN member states should pay their assessed contributions timely and in full so as to ensure the normal operation of the UN and the smooth implementation of its missions. However, some countries often violate their obligations and default their UN fees deliberately, particularly the United States. As the world’s premier power, the United States should naturally contribute the largest share of UN fees. After the adjustment, the United States’ share for the regular budget will remain unchanged at 22 percent, still the highest in the world. But its actions of payment default and coercing the UN through such defaults often results in financial disorder.
China is a country that abides by the principles of credit and has always fulfilled its obligation to pay UN fees. The increase of China’s payment share is surely a piece of good news for the fiscal outlook of the UN, especially considering that it never ties its payment to any political preconditions.
China’s increased financial contribution to the UN will have a more positive influence and further allow it to promote peace, development and cooperation of the world. It is conducive to the practice of multilateralism and the UN’s central role in world affairs.
Based on a report of the Fifth Committee of UN General Assembly in 2012, the ratio of financial contributions of many member of the Group of 77 and emerging economies including China to the UN will undergo a large increase in the next three years. In sharp contrast, contributions by developed countries will decline sharply. Emerging markets continue to rise collectively and lead the economic growth of the world while developed countries are mired in a slow recovery. The situation reflects the new pattern within the UN featuring the rise of developing countries and the decline of developed countries, which is starkly demonstrated by the UN payment adjustment.
The Chinese economy is expected to continue its rapid growth in the next decade. By 2020, it is very possible that China could double its 2010 GDP and per-capita income for both urban and rural residents. By then, China’s capability for UN payment and its payment share would also increase.
It is estimated that the trend of China’s UN payment increase will continue for quite some time in the future. If the trend continues, it would not be long before the country becomes the second largest UN contributor. It naturally follows that China will play a much greater role as a responsible global power.