Poorer states vote to block Annan's UN reform plan

UN: A row over UN reforms could trigger a funding crisis, writes Denis Staunton in New York

UN: A row over UN reforms could trigger a funding crisis, writes Denis Staunton in New York

The United Nations general assembly has blocked a plan to give secretary general Kofi Annan more control of the UN's budget, opening the way for a bitter showdown between rich and poor countries next month.

A total of 121 countries, including most developing countries and China, voted to block the reform proposal, which would have moved budgetary control away from the general assembly, where each country has a vote, to a smaller group. A total of 50 countries voted in favour of the reform plan and two abstained.

"The suggestion was made that to reform the United Nations that some countries would not count and their voices would not count. We've corrected that and now we can get on with reforming the UN," said South Africa's ambassador, Dumisani Kumalo, chairman of the group of 77 non-aligned countries.

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A small number of rich countries that contribute 85 per cent of the UN's $2 billion annual budget argue that UN money is wasted, but poorer countries fear they will lose influence simply because they cannot afford to pay as much.

Last December the UN agreed to a $950 million spending cap for 2006 that could only be lifted if sufficient reforms were implemented. Member states will meet next month to decide if enough progress has been made, and the US and its allies could threaten to withhold their dues.

"It would be a debacle for the reform process and effectively could spell the end of the reform process. The terms of the budget cap are clear. We'll see what happens," US ambassador John Bolton said last month of yesterday's resolution.

Some UN diplomats fear that a confrontation over the budget could provide the US Congress with an excuse to withhold Washington's contribution to the UN.

UN member states were yesterday voting for a new Human Rights Council, another key innovation in Mr Annan's blueprint for reforming the UN.

The 47-nation council is designed to be tougher on abusers than its forerunner, the Human Rights Commission, and some of the worst human rights offenders - Zimbabwe, Libya, Sudan and Syria - are not seeking seats on the council.

However, the 64 countries hoping to be chosen include Cuba, Iran, Saudi Arabia and Pakistan.