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From
the Staff Committee 2015-2016 |
202-370-4645 |
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April 18th,
2016 |
SN-58/15-16 |
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Open Letter to Member States We the staff of the General Secretariat are convinced that the OAS
plays an essential role in the region in promoting the ideals enshrined in
the OAS Charter and working to achieve peace and security, strengthen
democracy and human rights, peacefully resolve disputes, resolve political,
legal, and economic problems, as well as foster economic, social, and
cultural development in the hemisphere. We the staff are also witness to the
negative effects that the current political process for adopting budget decisions
is having on the organization. Since 1995, we have observed the decrease in the real revenue
of the Secretariat, due to the slow and minute increase in quotas that member
states have approved to date. Between 1995 and 2015, quotas, which constitute
the principal sustenance of the Organization, have grown by approximately 10.5%.
In comparison, the increase of inflation that the Secretariat must defray has
risen 56% over the same period. This gap has negatively impacted both
staffing needs and the basic, vital services for the OAS. In addition to this drop in real revenue collected through quotas,
the General Secretariat has been forced to cope with late payments of annual
quotas. To date, member states are approximately US$20 million in arrears on
their quota payments through December 31, 2015 and payments totaling US$52.8
million remain pending for the 2016 budget. Since 1995 to date, the General
Secretariat has had to – on numerous occasions – overcome serious
challenges related to paying for basic services, due to lack of liquidity
(cash flow). This circumstance, added to the absence of a mechanism through which
member states can adjust their quotas based on inflation rates, translates
into a continuous and systematic reduction in staff. Total staff has
fallen from approximately 750 in 1995 to only 530 in 2016, a 30% reduction.
In terms of the type of funds used to pay for staff (Regular Fund, Specific
Funds, or Indirect Cost Recovery), the Regular Fund financed 709 staff in
1995 and only 389 in 2016. This is a 45% reduction in the positions
financed by the Regular Fund. It also bears noting that member states have authorized the use of
the Reserve Sub-fund to address liquidity problems on several occasions since
1995. This Sub-fund had a zero balance in 2011. Given this situation, the
member states approved internal loans to cover the Secretariat’s
operational deficit. To date, these loans amount to nearly US$16 million. In November 2015, the political process for adopting budget decisions
led member states to approve the 2016 Program-Budget, which calls for a
budget ceiling of US$84.3 million and a new structure for the Secretariat. In
January 2016, member states approved a US$ 864,000 budget to finance trust
positions in addition to the 4% authorized by the General Standards. In March
2016, member states instructed the General Secretariat to cut the budget
approved for 2016 by US$ 2 million and to draft a US$ 72 million budget for
2017. This measure represents a US$12 million reduction compared to the 2015
budget. Given that a large share of the Regular Fund is used to cover staff
costs, the measure adopted by member states could result in the elimination
of the equivalent of approximately 100 posts. The Secretary General is facing
a bleak outlook in which, within three months, he must slash the OAS budget
by several million dollars, cut programs, and lay off staff, unless member
states – the true owners of the organization – comply with the
agreements to which they committed as sovereign states. We, the staff, understand that the General Secretariat faces a
complex financial situation. Nonetheless, we are convinced that the member
states recognize the value of our organization for the people of the |
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