UN’s Cost-Cutting Mergers Come Under Scrutiny While Search for Locations Worldwide Continues

By Thalif Deen
UNITED NATIONS, Oct 10 2025 – Faced with a severe liquidity crisis and a hostile Trump administration, the UN continues to merge some of its multiple agencies, and move them out of New York, relocating to Europe, Africa, Asia and the Middle East.

Perhaps the first two agencies to be merged will be UN Women (created in 2010) and the UN Population Fund (created in 1967), with some staffers moved to Bonn and others to Nairobi.

And the UN Children’s Fund (UNICEF) may be next in line bound to Nairobi.

The UN is also considering several potential mergers primarily to reduce costs and improve effectiveness, including merging the UN AIDS agency (UNAIDS) into the World Health Organization (WHO), consolidating the UN Office for Project Services (UNOPS) with the UN Development Programme (UNDP), and restructuring the Department of Peace Operations (DPO) and Department of Political and Peacebuilding Affairs (DPPA).

“Externally, there has been enthusiastic reception of members of the UN family like UN-Women (but also UNFPA and UNICEF) relocating global functions to Nairobi and Bonn,” according to a UN report.

The new locations may also include Bangkok, Doha, Dubai and Istanbul.

Addressing the 80th UN General Assembly sessions last month, the President of Turkiye Recep Tayyip Erdogan offered Istanbul as a new relocation site describing the Turkish city as “an excellent UN hub”.

The UN’s cash crisis, prompting mergers and relocations, has been triggered by $2.8 billion in unpaid U.S. dues, both for regular and peacekeeping budgets. And, as of last week, only 139 out of 193 countries have paid their dues in full, with 54 countries in arrears.

Asked for an update on the move to Nairobi, UN Spokesperson Stephane Dujarric told reporters October 3, the UN complex in Nairobi is growing.

“The last time I was there, there was construction. It’s been expanding for some time. I think a number of agencies are already looking at moving. A lot of it will also depend on the budget, and decisions by Member States”.

Asked about the offer of Istanbul, he said, the relocation of posts from a number of more traditional UN headquarter cities to others is something that is being looked at, something that has already happened.

“Istanbul is already home to a number of regional hubs for various UN organizations. So, it is something we’re continuously evaluating.”

Kul Gautam. a former Deputy Executive Director of UNICEF and Assistant Secretary-General of the United Nations, told IPS UNICEF has launched its own “Future Focus Initiative” to increase the organization’s agility, efficiency, and effectiveness in response to declining funding.

The initiative includes significant budget cuts at headquarters and regional offices, staff relocation to lower-cost locations, and the consolidation of some regional offices.

As part of this exercise, he said, UNICEF’s core budget at Headquarters and Regional Offices will be cut by 25%, and about 70% of Headquarters staff will be relocated to lower-cost duty stations like Bangkok, Nairobi, and perhaps even Doha, Dubai, and Istanbul that are closer to most UNICEF field offices.

“Such redeployment of staff can help streamline operations and reduce operating costs”.

A major original mission of many specialized UN agencies, funds, and programmes, Gautam pointed out, was to provide specialized technical expertise that was not readily available in developing countries.

“Considering that many developing countries now have highly skilled professionals (many of whom migrate to high-income countries in search of better prospects), UN offices should seriously consider employing more national professionals in developing countries at considerably lower emoluments than very high-cost expatriates from the Global North”.

Decades ago, he recalled, UNICEF pioneered the practice of employing a fairly large number of national professionals in its country offices.

“All UN agencies should now consider emulating UNICEF’s example, and UNICEF itself should expand this practice, while retaining the basic international nature of the organization”, said Gautam, author of ‘Global Citizen from Gulmi: My Journey from the Hills of Nepal to the Halls of United Nations’.

While bureaucracies and vested interests of staff in the Secretariat of various organizations are partly responsible for the proliferation of the mandates and overly complex and convoluted reports, Member States need to restrain their demands and appetite for unduly detailed and unnecessarily frequent reports.

With the advent of AI, there is an opportunity now to consolidate and shorten these reports drastically.

Gautam said: “Even the frequency of Board meetings is excessive. Currently, UNDP, UNICEF, UNFPA, UN Women, and WFP Boards meet three times each year. Cutting those Board meetings to twice a year would save many resources without compromising on the accountability of the agencies.”

Speaking of mergers, Dr Purnima Mane, former Deputy Executive Director (Programme) and UN Assistant-Secretary-General (ASG) at the UN Population Fund (UNFPA), told IPS it is not surprising that under the UN 80 restructuring plan, the UN is considering some major measures like merging some of its agencies like UNFPA and UN Women and moving some of their staff out of New York to other countries.

Streamlining might temporarily resolve the current liquidity crisis and the move away from New York would demonstrate moving towards decentralization – both laudable goals. However, in the current scenario these appear like short term steps mainly to cut costs without evidence of how they fit into an altered strategic vision for the UN, she said.

“How these steps are part of a bigger strategic approach to make the UN more effective in what it wishes to achieve is unclear. Cutbacks and mergers can provide short term relief but they also can obviously create problems of their own, such as losing out on the gains made over the years in the areas of work of these agencies and programs, all of which are critical to development.”

This will jeopardize the impact of the work of the programs and endanger the achievement of many critical global goals, said Dr Mane, former President and CEO of Pathfinder International.

In the case of merging UNFPA with UN Women, she pointed out, the argument has been made that merging the mandates of advancing gender equality as a whole, with strengthening reproductive health and rights of women, could in fact benefit women.

In theory this sounds great but the reality of the context and history of women’s issues calls that assumption into question.

In a political context in which Sexual and Reproductive Health and Rights (SRHR) issues are deeply contested and even opposed by some Member States, UNFPA’s work on those issues could be greatly diluted through the merger.

Prior commitments made by countries especially to SRHR risk receiving lower priority, in favor of some more politically acceptable though important areas that UN Women focuses on, such as women’s economic empowerment.

Also, a merger does not guarantee that the new merged organization would get anywhere close to the equivalent of what UNFPA and UN Women currently receive in resources, she warned.

The merger could result in deep cuts to resources assigned to gender issues overall, thereby depriving countries of the needed support on these issues, at a cost that ignores the laudable reasons why these agencies and programs were created as separate entities.

This is definitely a wake-up call to the two agencies to develop more strategic and effective ways to streamline and coordinate their work in ways that do not slow the progress made on issues that are central to gender equality and women, while also working on decentralizing their programs but the planned solution of merger is likely to be severely damaging for women and their status.

Speaking in an unofficial and personal capacity, Shihana Mohamed, a founding member and Coordinator of the United Nations Asia Network for Diversity and Inclusion (UN-ANDI), told IPS: UN Women was established to be a force multiplier—mainstreaming women’s rights across peace building, development, and human rights.

Yet today, she pointed out, it faces chronic underfunding, limited political influence, and a shrinking mandate.

“As a gender equality advocate, I fear that the potential merger of UN Women with UNFPA under the UN80 reform agenda could further dilute the UN Women’s distinct mandate”.

“If the merger is rushed or imposed from the top, decades of institutional knowledge, technical expertise, and trusted partnerships— built separately by UN Women and UNFPA—could be lost.”

It also risks sidelining UN Women’s policy leadership, weakening its accountability role, and shifting resources from structural change to service delivery. In short, it could turn a transformative agenda into a technocratic one, she argued.

Any restructuring must preserve UN Women’s distinct mandate. Member States must increase core funding for UN Women and support its integration across all UN agencies. Political backing must match rhetorical support, she said.

“The creation of UN Women was the culmination of years of negotiations among Member States and advocacy by the global women’s movement. Thus, the UN80 Task Force and other reform bodies must engage openly with all stakeholders”.

“ I also emphasize the need for meaningful consultation with feminist movements before making structural changes as they are the watchdogs and visionaries of global gender justice.

Decisions affecting UN Women’s future must be transparent, inclusive, and grounded in human rights—not just cost-efficiency,” said Mohamed, a US Public Voices Fellow with the OPED Project and Equality Now on Advancing the Rights of Women and Girls.

IPS UN Bureau Report

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