Proposed programme budget 2018–2019: proposed increase in assessed contributions: report by the Director-General

SEVENTIETH WORLD HEALTH ASSEMBLY A70/INF./2 Provisional agenda item 11.2 10 April 2017 Proposed programme budget 2018–2019 Proposed increase in assessed contributions Report by the Director-General 1. At its twenty-fifth meeting, the Programme Budget and Administration Committee of the Executive Board recommended to the Executive Board that further discussions with the Secretariat take place on the Proposed programme budget 2018–2019, especially on the affordable level of assessed contributions, savings and efficiencies, prioritization of activities, impact of voluntary contributions, and resource mobilization. 1 This paper sets out the rationale for a proposed increase in assessed contributions. 2. The Director-General is proposing a 3% increase in assessed contributions for the Proposed programme budget 2018–2019, amounting to US$ 28 million. This is considerably less than the 10% increase originally proposed by the Director-General in the draft Proposed programme budget 2018–2019 that was presented to the Executive Board at its 140th session,2 which was based on the recommendations of the High-level Panel on the Global Response to Health Crises. 3 The reduced amount responds to concerns raised by several Member States during the Executive Board, including those that have already seen a significant increase in their contributions under the scale of assessments adopted by the Health Assembly 4 and would find it challenging to meet the additional contributions. The amounts that Member States would pay as assessed contributions if a 3% increase were to be adopted are shown in the Annex. The reduction in the amount requested has been offset by making further planned cost savings in category 6. 3. Although a 3% increase would be relatively small in relation to the overall programme budget, its adoption would be an acknowledgement of the need for an increase in assessed contributions at this time – the first increase since the biennium 2006–2007. Several Member States have emphasized that an increase in assessed contributions for the biennium 2018–2019 does not necessarily establish a precedent for future programme budgets, and Member States would need to reconsider any future requests on each occasion. 1 See document EB140/5. 2 Document EB140/36. 3 Available at http://www.un.org/News/dh/infocus/HLP/2016-02-05_Final_Report_Global_Response_to_Health_ Crises.pdf, accessed 30 March 2017. 4 See resolution WHA69.14 (2016). A70/INF./2 2 WHY IS WHO FUNDED IN PART BY ASSESSED CONTRIBUTIONS? 4. Since WHO was established in 1948, the programme budget has been financed, at least in part, by assessed contributions. In the early decades of WHO’s existence, assessed contributions constituted almost all the funding of WHO, with voluntary funds limited mainly to the special programmes established in the 1970s. It was not until the 1990s that voluntary contributions overtook assessed contributions in providing the majority of income. 5. The basis for using assessed contributions is the WHO Constitution, which states that the expenses of the Organization shall be apportioned among the Members in accordance with a scale to be fixed by the Health Assembly (Article 56). Assessed contributions therefore reflect the nature of WHO as an international multilateral organization, where membership comes with certain financial responsibilities. 6. Assessed contributions provide the type of funding that is necessary for an organization with mission-critical functions that rely on long-term, predictable financing and that could be seriously compromised by dependence on voluntary funding. Much of the work of WHO is programmatic in nature, rather than being project-based. Examples include disease surveillance, building core capacities under the International Health Regulations (2005), and the work of the governing bodies. Such functions may not require full financing with assessed contributions, but voluntary contributions usually play a complementary rather than a primary role. Details of which categories, programme areas and offices are supported by assessed contributions in the current and past bienniums are available on the WHO programme budget web portal. 1 7. A third rationale for funding by assessed contributions is that much of the normative, standard- setting work of WHO requires a degree of independence from the funding source, to ensure that there is no potential for conflicts of interest. WHY ARE ASSESSED CONTRIBUTIONS SO VALUABLE AS A FUNDING SOURCE? 8. Assessed contributions provide the highest-quality funding for WHO, as they are – uniquely – fully flexible, and can be allocated to any type of work. All other sources of funding have some limitations on their use, including core voluntary contributions, which are not used for category 6 activities, due to the requirements of OECD Development Assistance Committee funding. 9. The financing dialogues have contributed to a significant increase in the predictability of voluntary contributions, but there has not yet been any improvement in the alignment of such funds, and several programme areas have consistently been under-resourced, such as noncommunicable diseases. The non-earmarking of assessed contributions means that the Director-General can allocate these funds throughout the biennium in a strategic and timely manner to ensure alignment of funding across the programme budget in its entirety. This enables the Organization to fulfil the mandate provided by the Health Assembly to implement the programme budget as a whole, and not just the elements funded by assessed contributions, as was the case in the past. Approval of the programme budget in its entirety since the biennium 2014–2015 was made possible by the accompanying decision of the Health Assembly to no longer appropriate assessed contributions to specific categories. 2 This 1 See http://extranet.who.int/programmebudget/, accessed 30 March 2017. 2 Resolution WHA66.2 (2013). A70/INF./2 3 means that a relatively small volume of assessed contributions can leverage effective use of much larger amounts of voluntary contributions, even if these are relatively highly specified. WHY IS AN INCREASE IN ASSESSED CONTRIBUTIONS NEEDED, AND WHAT WILL THE ORGANIZATION NOT BE ABLE TO DO IF NO INCREASE IS ADOPTED? 10. If the increase in assessed contributions is not approved, the Director-General will have reduced capacity to align funding with the programme budget and ensure delivery of results across all categories and programme areas. This will put pressure on specific programme areas that consistently receive a significant proportion of assessed contributions, for example leadership and governance, which received 17.8% of the assessed contributions in the biennium 2014–2015. WHAT STEPS IS WHO TAKING TO DEMONSTRATE EFFECTIVE STEWARDSHIP OF RESOURCES? 11. Reforms of the work of WHO implemented over the last 10 years are delivering results in terms of increased efficiency, accountability and transparency. An overview of the reforms that have contributed to more effective planning, financing, implementation and monitoring of the programme budget (see Figure 1) is provided on the WHO programme budget web portal. 1 Additional information on cost recovery mechanisms and value for money has also been provided to the Health Assembly. 2 1 Available at http://extranet.who.int/programmebudget/Documents/WHO%20delivering%20for%20Results_ background%20paper_DRAFT.pdf, accessed 30 March 2017. 2 See, respectively, documents A70/INF./5 and A70/INF./6. A70/INF./2 4 Figure 1. Interlinked aspects of WHO reform shaping the programme budget Setting priorities Monitoring and results Better definition of results Efficient and effective delivery and More realistic costing of results (i.e. outputs Strategic management of resources Financing and resource mobilization A70/INF./2 5 ANNEX ASSESSED CONTRIBUTIONS BY MEMBER STATE AND ASSOCIATE MEMBER, SHOWING 3% INCREASE IN TOTAL ASSESSED CONTRIBUTION FOR THE BIENNIUM 2018−2019 (US DOLLARS) With a 3% increase Change Assessed contributions in US$ Member State and Associate Member 2016 2017 2018 2019 2018 to 2016 2018 to 2017 Biennial assessment (net of Tax Equalization Fund) 929 000 000 956 870 000 Afghanistan 23 230 27 870 28 710 28 710 5 480 840 Albania 46 450 37 160 38 270 38 270 -8 180 1 110 Algeria 636 370 747 850 770 290 770 290 133 920 22 440 Andorra 37 160 27 870 28 710 28 710 -8 450 840 Angola 46 450 46 450 47 840 47 840 1 390 1 390 Antigua and Barbuda 9 290 9 290 9 570 9 570 280 280 Argentina 2 006 640 4 143 340 4 267 640 4 267 640 2 261 000 124 300 Armenia 32 520 27 870 28 710 28 710 -3 810 840 Australia 9 634 200 10 855 830 11 181 500 11 181 500 1 547 300 325 670 Austria 3 707 180 3 344 870 3 445 220 3 445 220 -261 960 100 350 Azerbaijan 185 800 278 700 287 060 287 060 101 260 8 360 Bahamas 78 970 65 030 66 980 66 980 -11 990 1 950 Bahrain 181 160 204 380 210 510 210 510 29 350 6 130 Bangladesh 46 450 46 450 47 840 47 840 1 390 1 390 Barbados 37 160 32 520 33 500 33 500 -3 660 980 Belarus 260 120 260 120 267 920 267 920 7 800 7 800 Belgium 4 636 180 4 111 290 4 234 630 4 234 630 -401 550 123 340 Belize 4 650 4 650 4 790 4 790 140 140 Benin 13 940 13 940 14 360 14 360 420 420 Bhutan 4 650 4 650 4 790 4 790 140 140 Bolivia (Plurinational State of) 41 810 55 740 57 410 57 410 15 600 1 670 Bosnia And Herzegovina 78 970 60 390 62 200 62 200 -16 770 1 810 Botswana 78 970 65 030 66 980 66 980 -11 990 1 950 Brazil 13 629 360 17 758 770 18 291 530 18 291 530 4 662 170 532 760 Brunei Darussalam 120 770 134 700 138 740 138 740 17 970 4 040 Bulgaria 218 320 209 030 215 300 215 300 -3 020 6 270 Burkina Faso 13 940 18 580 19 140 19 140 5 200 560 Burundi 4 650 4 650 4 790 4 790 140 140 Cabo Verde 4 650 4 650 4 790 4 790 140 140 Cambodia 18 580 18 580 19 140 19 140 560 560 Cameroon 55 740 46 450 47 840 47 840 -7 900 1 390 Canada 13 861 605 13 568 505 13 975 560 13 975 560 113 955 407 055 Central African Republic 4 650 4 650 4 790 4 790 140 140 Chad 9 290 23 230 23 930 23 930 14 640 700 Chile 1 551 430 1 853 350 1 908 950 1 908 950 357 520 55 600 China 23 914 320 36 793 970 37 897 790 37 897 790 13 983 470 1 103 820 Colombia 1 203 060 1 495 690 1 540 560 1 540 560 337 500 44 870 Comoros 4 650 4 650 4 790 4 790 140 140 Congo 23 230 27 870 28 710 28 710 5 480 840 Cook Islands 4 650 4 650 4 790 4 790 140 140 Costa Rica 176 510 218 320 224 870 224 870 48 360 6 550 Côte D’ivoire 51 100 41 810 43 060 43 060 -8 040 1 250 Croatia 585 270 459 860 473 660 473 660 -111 610 13 800 Cuba 320 510 301 920 310 980 310 980 -9 530 9 060 Cyprus 218 320 199 740 205 730 205 730 -12 590 5 990 A70/INF./2 Annex 6 With a 3% increase Change Assessed contributions in US$ Member State and Associate Member 2016 2017 2018 2019 2018 to 2016 2018 to 2017 Czech Republic 1 792 970 1 597 880 1 645 820 1 645 820 -147 150 47 940 Democratic People’s Republic of Korea 27 870 23 230 23 930 23 930 -3 940 700 Democratic Republic of the Congo 13 940 37 160 38 270 38 270 24 330 1 110 Denmark 3 135 380 2 712 680 2 794 060 2 794 060 -341 320 81 380 Djibouti 4 650 4 650 4 790 4 790 140 140 Dominica 4 650 4 650 4 790 4 790 140 140 Dominican Republic 209 030 213 670 220 080 220 080 11 050 6 410 Ecuador 204 380 311 210 320 550 320 550 116 170 9 340 Egypt 622 430 706 040 727 220 727 220 104 790 21 180 El Salvador 74 320 65 030 66 980 66 980 -7 340 1 950 Equatorial Guinea 46 450 46 450 47 840 47 840 1 390 1 390 Eritrea 4 650 4 650 4 790 4 790 140 140 Estonia 185 800 176 510 181 810 181 810 -3 990 5 300 Ethiopia 46 450 46 450 47 840 47 840 1 390 1 390 Fiji 13 940 13 940 14 360 14 360 420 420 Finland 2 410 760 2 118 120 2 181 660 2 181 660 -229 100 63 540 France 28 163 070 24 752 260 25 494 830 25 494 830 -2 668 240 742 570 Gabon 92 900 78 970 81 340 81 340 -11 560 2 370 Gambia 4 650 4 650 4 790 4 790 140 140 Georgia 32 520 37 160 38 270 38 270 5 750 1 110 Germany 33 172 630 29 677 840 30 568 180 30 568 180 -2 604 450 890 340 Ghana 65 030 74 320 76 550 76 550 11 520 2 230 Greece 2 963 510 2 187 800 2 253 430 2 253 430 -710 080 65 630 Grenada 4 650 4 650 4 790 4 790 140 140 Guatemala 125 420 130 060 133 960 133 960 8 540 3 900 Guinea 4 650 9 290 9 570 9 570 4 920 280 Guinea-Bissau 4 650 4 650 4 790 4 790 140 140 Guyana 4 650 9 290 9 570 9 570 4 920 280 Haiti 13 940 13 940 14 360 14 360 420 420 Honduras 37 160 37 160 38 270 38 270 1 110 1 110 Hungary 1 235 570 747 850 770 290 770 290 -465 280 22 440 Iceland 125 420 106 830 110 030 110 030 -15 390 3 200 India 3 093 570 3 423 370 3 526 070 3 526 070 432 500 102 700 Indonesia 1 607 170 2 341 080 2 411 310 2 411 310 804 140 70 230 Iran (Islamic Republic of) 1 653 620 2 187 800 2 253 430 2 253 430 599 810 65 630 Iraq 315 860 599 210 617 190 617 190 301 330 17 980 Ireland 1 941 610 1 556 080 1 602 760 1 602 760 -338 850 46 680 Israel 1 839 420 1 997 350 2 057 270 2 057 270 217 850 59 920 Italy 20 662 360 17 410 390 17 932 700 17 932 700 -2 729 660 522 310 Jamaica 51 100 41 810 43 060 43 060 -8 040 1 250 Japan 50 322 850 44 964 440 46 313 370 46 313 370 -4 009 480 1 348 930 Jordan 102 190 92 900 95 690 95 690 -6 500 2 790 Kazakhstan 562 050 887 200 913 820 913 820 351 770 26 620 Kenya 60 390 83 610 86 120 86 120 25 730 2 510 Kiribati 4 650 4 650 4 790 4 790 140 140 Kuwait 1 268 090 1 323 820 1 363 530 1 363 530 95 440 39 710 Kyrgyzstan 9 290 9 290 9 570 9 570 280 280 Lao People’s Democratic Republic 9 290 13 930 14 350 14 350 5 060 420 Latvia 218 320 232 250 239 220 239 220 20 900 6 970 Lebanon 195 090 213 670 220 080 220 080 24 990 6 410 Lesotho 4 650 4 650 4 790 4 790 140 140 Liberia 4 650 4 650 4 790 4 790 140 140 Libya 659 590 580 630 598 050 598 050 -61 540 17 420 Lithuania 339 090 334 440 344 470 344 470 5 380 10 030 Luxembourg 376 250 297 280 306 200 306 200 -70 050 8 920 Annex A70/INF./2 7 With a 3% increase Change Assessed contributions in US$ Member State and Associate Member 2016 2017 2018 2019 2018 to 2016 2018 to 2017 Madagascar 13 940 13 940 14 360 14 360 420 420 Malawi 9 290 9 290 9 570 9 570 280 280 Malaysia 1 305 250 1 495 690 1 540 560 1 540 560 235 310 44 870 Maldives 4 650 9 290 9 570 9 570 4 920 280 Mali 18 580 13 930 14 350 14 350 -4 230 420 Malta 74 320 74 320 76 550 76 550 2 230 2 230 Marshall Islands 4 650 4 650 4 790 4 790 140 140 Mauritania 9 290 9 290 9 570 9 570 280 280 Mauritius 60 390 55 740 57 410 57 410 -2 980 1 670 Mexico 8 556 560 6 666 040 6 866 020 6 866 020 -1 690 540 199 980 Micronesia (Federated States of) 4 650 4 650 4 790 4 790 140 140 Monaco 55 740 46 450 47 840 47 840 -7 900 1 390 Mongolia 13 940 23 230 23 930 23 930 9 990 700 Montenegro 23 230 18 580 19 140 19 140 -4 090 560 Morocco 287 990 250 830 258 350 258 350 -29 640 7 520 Mozambique 13 940 18 580 19 140 19 140 5 200 560 Myanmar 46 450 46 450 47 840 47 840 1 390 1 390 Namibia 46 450 46 450 47 840 47 840 1 390 1 390 Nauru 4 650 4 650 4 790 4 790 140 140 Nepal 27 870 27 870 28 710 28 710 840 840 Netherlands 7 683 300 6 884 360 7 090 890 7 090 890 -592 410 206 530 New Zealand 1 175 190 1 244 860 1 282 210 1 282 210 107 020 37 350 Nicaragua 13 940 18 580 19 140 19 140 5 200 560 Niger 9 290 9 290 9 570 9 570 280 280 Nigeria 418 050 970 810 999 930 999 930 581 880 29 120 Niue 4 650 4 650 4 790 4 790 140 140 Norway 3 953 360 3 944 070 4 062 390 4 062 390 109 030 118 320 Oman 473 790 524 890 540 640 540 640 66 850 15 750 Pakistan 394 830 431 985 444 940 444 940 50 110 12 955 Palau 4 650 4 650 4 790 4 790 140 140 Panama 120 770 157 930 162 670 162 670 41 900 4 740 Papua New Guinea 18 580 18 580 19 140 19 140 560 560 Paraguay 46 450 65 030 66 980 66 980 20 530 1 950 Peru 543 470 631 720 650 670 650 670 107 200 18 950 Philippines 715 330 766 430 789 420 789 420 74 090 22 990 Poland 4 278 510 3 906 910 4 024 120 4 024 120 -254 390 117 210 Portugal 2 185 714 1 804 820 1 858 960 1 858 960 -326 754 54 140 Puerto Rico 4 650 4 650 4 790 4 790 140 140 Qatar 970 810 1 249 510 1 287 000 1 287 000 316 190 37 490 Republic of Korea 9 262 600 9 471 620 9 755 770 9 755 770 493 170 284 150 Republic of Moldova 13 940 18 580 19 140 19 140 5 200 560 Romania 1 049 770 854 680 880 320 880 320 -169 450 25 640 Russian Federation 11 325 440 14 344 690 14 775 020 14 775 020 3 449 580 430 330 Rwanda 9 290 9 290 9 570 9 570 280 280 Saint Kitts and Nevis 4 650 4 650 4 790 4 790 140 140 Saint Lucia 4 650 4 650 4 790 4 790 140 140 Saint Vincent and the Grenadines 4 650 4 650 4 790 4 790 140 140 Samoa 4 650 4 650 4 790 4 790 140 140 San Marino 13 940 13 940 14 360 14 360 420 420 Sao Tome and Principe 4 650 4 650 4 790 4 790 140 140 Saudi Arabia 4 013 750 5 323 640 5 483 350 5 483 350 1 469 600 159 710 Senegal 27 870 23 230 23 930 23 930 -3 940 700 Serbia 185 800 148 640 153 100 153 100 -32 700 4 460 Seychelles 4 650 4 650 4 790 4 790 140 140 Sierra Leone 4 650 4 650 4 790 4 790 140 140 A70/INF./2 Annex 8 With a 3% increase Change Assessed contributions in US$ Member State and Associate Member 2016 2017 2018 2019 2018 to 2016 2018 to 2017 Singapore 1 783 680 2 076 320 2 138 610 2 138 610 354 930 62 290 Slovakia 794 300 743 200 765 500 765 500 -28 800 22 300 Slovenia 464 500 390 180 401 890 401 890 -62 610 11 710 Solomon Islands 4 650 4 650 4 790 4 790 140 140 Somalia 4 650 4 650 4 790 4 790 140 140 South Africa 1 727 940 1 690 780 1 741 500 1 741 500 13 560 50 720 South Sudan 18 580 13 930 14 350 14 350 -4 230 420 Spain 13 810 520 11 348 200 11 688 650 11 688 650 -2 121 870 340 450 Sri Lanka 116 130 143 990 148 310 148 310 32 180 4 320 Sudan 46 450 46 450 47 840 47 840 1 390 1 390 Suriname 18 580 27 870 28 710 28 710 10 130 840 Swaziland 13 940 9 290 9 570 9 570 -4 370 280 Sweden 4 459 670 4 441 090 4 574 320 4 574 320 114 650 133 230 Switzerland 4 863 780 5 295 770 5 454 640 5 454 640 590 860 158 870 Syrian Arab Republic 167 220 111 480 114 820 114 820 -52 400 3 340 Tajikistan 13 940 18 580 19 140 19 140 5 200 560 Thailand 1 110 160 1 351 690 1 392 240 1 392 240 282 080 40 550 The Former Yugoslav Republic of Macedonia 37 160 32 520 33 500 33 500 -3 660 980 Timor-Leste 9 290 13 930 14 350 14 350 5 060 420 Togo 4 650 4 650 4 790 4 790 140 140 Tokelau 4 650 4 650 4 790 4 790 140 140 Tonga 4 650 4 650 4 790 4 790 140 140 Trinidad And Tobago 204 380 157 930 162 670 162 670 -41 710 4 740 Tunisia 167 220 130 060 133 960 133 960 -33 260 3 900 Turkey 6 169 030 4 729 080 4 870 950 4 870 950 -1 298 080 141 870 Turkmenistan 88 260 120 770 124 390 124 390 36 130 3 620 Tuvalu 4 650 4 650 4 790 4 790 140 140 Uganda 27 870 41 810 43 060 43 060 15 190 1 250 Ukraine 459 860 478 440 492 790 492 790 32 930 14 350 United Arab Emirates 2 763 780 2 805 580 2 889 750 2 889 750 125 970 84 170 United Kingdom of Great Britain and Northern Ireland 24 058 300 20 731 580 21 353 530 21 353 530 -2 704 770 621 950 United Republic of Tanzania 41 810 46 450 47 840 47 840 6 030 1 390 United States of America 113 513 160 113 513 160 116 918 540 116 918 540 3 405 380 3 405 380 Uruguay 241 540 366 950 377 960 377 960 136 420 11 010 Uzbekistan 69 680 106 830 110 030 110 030 40 350 3 200 Vanuatu 4 650 4 650 4 790 4 790 140 140 Venezuela (Bolivarian Republic of) 2 912 420 2 652 300 2 731 870 2 731 870 -180 550 79 570 Viet Nam 195 090 269 410 277 490 277 490 82 400 8 080 Yemen 46 450 46 450 47 840 47 840 1 390 1 390 Zambia 27 870 32 520 33 500 33 500 5 630 980 Zimbabwe 9 290 18 580 19 140 19 140 9 850 560 Total 477 988 680 477 988 680 492 328 340 492 328 340 14 339 660 14 339 660 Less: Tax equalization adjustment (a) 26 977 360 27 786 680 Total per biennium 929 000 000 956 870 000 Increase for the biennium: 3% 0 27 870 000 (a) Amount to be deducted for tax equalization adjustment = = =