Could a Common Administrative Platform Enhance UN Efficiency and Cut Costs?
Synopsis
Key Takeaways
- Common administrative platform proposed for efficiency.
- Initial implementation in New York and Bangkok.
- Expected savings of $24.5 million annually from 2028.
- Payroll processing to be centralized across three major centers.
- 2026 budget to be reduced by 15.1%.
On December 2, the United Nations (UN) saw a significant proposal from Secretary-General Antonio Guterres. He suggested establishing a common administrative platform aimed at delivering administrative services to various UN Secretariat entities situated at different duty stations, all in an effort to enhance efficiency and reduce costs throughout the UN system.
This initiative is set to commence at the New York and Bangkok stations, as Guterres presented a revised estimates report regarding the proposed program budget for 2026 and the support account for peacekeeping operations for the 2025/26 period, as noted by the Xinhua news agency.
Guterres emphasized, “This represents a considerable improvement of our efficiency, putting together what is done separately by different entities with naturally much more costs.”
In addition, he outlined plans for consolidating payroll processing into a single global team across three centers: UN Headquarters, the Regional Service Centre in Entebbe, and the United Nations Office in Nairobi.
Furthermore, Guterres advocated for a systematic review by entities in New York and Geneva to identify functions that could be performed more effectively at lower-cost duty stations.
He stated, “This is part of a broader strategy to reduce our commercial footprint and achieve a long-term cost reduction.”
Since 2017, the UN Secretariat has successfully saved $126 million by terminating commercial leases in New York. Further consolidations, including the termination of leases in two buildings by late 2027, are expected to yield an additional annual savings of $24.5 million from 2028.
The report also included Guterres' proposal to decrease the United Nations’ 2026 regular budget to $3.238 billion, representing a 15.1% reduction compared to the 2025 appropriation, alongside a proposed staffing cut to 11,594 posts, marking an 18.8% decrease from the previous year.