Mr. Chair,

1. I have the honour to speak on behalf of the Group of 77 and China on agenda item 139: Review of efficiency: Management Reform- Shifting the management paradigm in the United Nations: Funding Model for the Department of Management Strategy, Policy and Compliance and the Department of Operational Support.

2. At the outset, the Group wishes to thank the Secretariat for introducing the report of the Secretary-General contained in document A/74/761. We also thank Mr. Abdallah Bachar Bong, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) for introducing its related report, contained in document A/74/7/Add.32.

Mr. Chair,

4. The Group of 77 and China reaffirm its commitment to the reform agenda of the Secretary-General, to which we have given our support and played a central role, in particular to the management reform. Transparent dialogue, faithful engagement and respect for different viewpoints and positions have guided the long and ongoing process of changing and modernizing some managerial aspects of the Organization. As we proceed further and deeper into this process, it is of utmost importance that we keep these guiding principles in mind.

5. The Group firmly believes in the established inter-governmental processes of consultations and decision making. Decisions obtained through the established inter-governmental processes are the ultimate source of legitimacy of the reform process. It reflects the collaborative efforts between developed and developing countries in considering the Secretary-General’s proposals to reach an agreement. It reaffirms our unity in advancing the important project of making the United Nations more fit for purpose to meet the challenges of today.

6. For that reason, the current proposal of the Secretary-General for a new funding model for DMSPC and DOS will be thoroughly studied by the Group of 77 and China. It is important that the implications of such major changes be understood in their entirety and, for that matter, what is not covered by the report is as relevant as what is covered.

7. As addressed by the ACABQ in its report, a few notable omissions in the proposal for the new funding model might render the report less comprehensive. The Group would like to better understand, for instance, why that particular methodology was chosen to apportion the relative weight of each funding source, and why some elements were left out of the preliminary model of calculation. Also, the actual expected impact on the assessments of Member States from the decision to modify the current model is another variable that must be thoroughly disclosed prior to the informal consultations. Further, it is important to note that the new model would entail further changes to the budget documents, even before all the changes established by the new annual presentation have been fully digested by the membership.

8. As stated by the Secretary-General in his report, the current funding mechanism does have shortcomings that must be considered. Important inter-governmental mandates may be overlooked, such as the strict separation of funds emanating from the regular budget and the support account, as decided by the General Assembly in its resolution 49/250. The Group is not convinced whether Resolution 72/266B introduced an actual discharge from that paramount limitation, and if so, to what extent. In order to make a truly informed decision, the Group of 77 and China believe that Member States must be presented with every detail of every option available, as well as their potential impact.

9. In conclusion, the Group of 77 and China would like to assure you of our continued commitment to work constructively with all delegations and to engage in productive deliberations on this item in order to reach a positive outcome in a timely manner.

I thank you, Mr. Chair.