Developing nations adopt resolution on UN reforms

The resolution, which called for several new reports on the reforms and insisted on prior review by the General Assembly of any changes to budget practices, was passed in a key budget committee with 108 in favour, 50 against and three abstentions.

The resolution was presented by South Africa on behalf of 132 developing nations -- the so-called Group of 77 -- and China, and was strongly opposed by the main contributors to the UN budget, including the United States, Japan, European countries, Canada, Australia, New Zealand, South Korea and Israel.

The outcome broke a 20-year tradition in the General Assembly's 5th committee of reaching decisions by consensus rather than by a vote.

At issue is what developing nations perceive as a bid by the US-led main contributors to transfer some of the oversight and budgetary powers from the 191-member General Assembly to the 15-member Security Council and the UN Secretariat.

Wealthy countries, which contribute 85 percent of the UN budget, argued that the text would block management reforms proposed by Secretary General Kofi Annan.

"The United States is committed to pursuing necessary management reforms to ensure that the United Nations remains an effective, efficient, transparent and accountable organisation," US ambassador John Bolton said. "As such the United States has joined with many other member states in voting no against the resolution."

"We believe in the right of every member state to have an equal say in the decision-making of this organisation. This right for us is not dependent on the financial contribution of member states to the budget of the organisation," said South African Ambassador Dumisani Kumalo said on behalf of the G-77.

"This is why we have been very vocal in wanting to protect the nature of this body and particularly the oversight role of the United Nations, especially the General Assembly," he added.

Through his spokesman, Annan expressed deep regret at the failure to reach consensus on his management reform proposals.

He urged member states "to seek to work together to rebuild the spirit of mutual trust that underpins consensus and is essential to the smooth functioning of the United Nations."

Speaking on behalf of the 25-member European Union, Austrian Ambassador Gerhard Pfanzelter expressed regret that his last-minute bid to seek a compromise with Kumalo to avert a divisive vote had failed.

"The EU expressed deep concern about tabling a proposal which is not based on consensus," he said.

France's UN envoy Jean-Marc de la Sabliere concurred, saying: "It is a sad day. This is also a victory for the radicals.