May 8, 2022 by
Dan Mitchell
Compared to international bureaucracies such as the IMF and OECD, the United Nations has very little power to impose bad policy. But that does not mean it should be immune from criticism. There’s an
anti-market ideology at the UN and I have specifically condemned the
bureaucrats for sloppy and misguided work on taxes (here and here), poverty (here and here), and guns (here and here).
Needless to say, there’s also a lot of waste and corruption at the UN.
I wrote about that topic back in 2017, so let’s take a follow-up look at how our tax money is being spent.
Let’s start with a just-released report in the New York Times. Written by David Fahrenthold and Farnaz Fassihi, it is a depressing snapshot of how money is squandered by insiders at the bureaucracy.
At the United Nations, two officials had a
problem. The little-known agency they ran found itself with an extra
$61 million, and they didn’t know what to do with it. Then they met a
man at a party. Now, they have $25 million less. …experienced diplomats
entrusted tens of millions of dollars…to a British businessman after
meeting him at the party.
They also gave his daughter $3 million to produce a pop song, a video
game and a website promoting awareness of environmental threats… Things
did not go well. …U.N. auditors said the man’s businesses defaulted on
more than $22 million in loans — all money meant to aid the developing
world…diplomats and former U.N. officials say the tale also demonstrates
what critics say is a serious problem with the U.N.: a culture of
impunity among some top leaders, who wield huge budgets with little
outside oversight. …The top official at the Office for Project Services,
Grete Faremo of Norway, remains in her post.
Some of the previous scandals at the UN have involved more than money.
Kathryn Snowdon’s 2018 report in the Huffington Post is very disturbing.
Charity workers from 15 international aid organisations
have been implicated in a sex-for-food scandal at refugee camps in west
Africa, according to a new leaked report…
The 84-page document…identified more than 40 aid organisations “whose
workers are alleged to be in sexually exploitative relationships with
refugee children”. …Researchers spoke to 1,500 people, and said claims
against 67 people were passed to senior UNHCR officials, but…none were
prosecuted.
Some readers may wonder if the UN’s failures are the result of inadequate funding.
Hardly. As explained in National Review by Brett Schaefer, the bureaucracy is adept at playing games to ensure it always has plenty of cash.
Between 1960 and 2016, there have only been two times
when an initially approved U.N. regular budget was lower than the
preceding budget. …the U.N. General Assembly approved a $285 million (5
percent) cut in the two-year regular UN budget for 2018-2019, U.N.
watchers took notice,
but cautioned that…the U.N. adjusts its two-year budget at the
mid-point to account for new expenditures and expenses. …Not only did
the “cut” announced by the U.S. Mission to the United Nations…disappear,
but the regular budget is actually $130 million higher than the final
budget for 2016-2017. …this outcome is typical. …In 2012, the Obama
administration bragged that the agreed-upon budget was “the first
U.N. regular budget since 1998 – and only the second in the last 50
years – that has gone down in comparison to the previous budget’s actual
expense.” The 2012 budget, however, also ended up being significantly
higher than the initial budget after mid-biennium additions.
Here’s a chart from the article showing overall spending on the left
axis, along with the additional spending that sneaks in during the
mid-point of the budget cycle.

Brett explains there is a tiny bit of good news.
…the U.N. regular budget will shift to an annual budget
starting in 2020. …This change will help, but will not cure the
fundamental problem.
I confess, by the way, that I have no idea if that change actually happened.
But I feel confident in predicting that the UN’s budget has gone up rather than down.
Last but not least, even Richard Haass of the Council on Foreign
Relations concedes the United Nations has a dubious track record. Here
are some passages from his 2020 article published by Project Syndicate.
The United Nations has fallen far short of its goals to
“maintain international peace and security,” “develop friendly relations
among nations’’ and “achieve international cooperation in solving
international problems.” …The
UN Security Council, the most important component of the UN system, has
made itself largely irrelevant. …The organization’s own shortcomings
haven’t helped: a spoils system that puts too many people in important
positions for reasons other than competence, lack of accountability, and
hypocrisy (such as when countries that ignore human rights sit on a UN
body meant to uphold them).
I’ll close with the observation that I’ve met plenty of nice and sincere people when participating in programs at the United Nations.
But the understanding of economic policy at the UN is utterly abysmal. Until and unless that statist mindset is eliminated, giving more money to the bureaucracy would be rewarding the pursuit of bad policy.
P.S. Maybe international bureaucrats would have a better understanding of economic policy if they weren’t exempt from the income tax.
P.P.S. The United Nations almost surely wastes the talents of some very capable people.