The United Nations Conference on Trade and Development (UNCTAD), a key agency helping developing countries navigate the global economy, is bracing for significant budget cuts. Secretary-General Rebeca Grynspan expressed deep concerns over how these reductions might hamper the agency’s ability to support nations in need, especially as global economic challenges intensify.
“This is painful. There’s no way to disguise this,” Grynspan said. “We haven’t cut that number of posts ever in one budget. It really will constrain the organization and the things that we can do.”
For the 2026 budget, UNCTAD has proposed cutting 70 positions out of a total workforce of 500, which includes consultants and around 400 permanent staff. These cuts come at a time when demand for UNCTAD’s services is growing, as countries seek guidance on trade issues and the impacts of global tariffs.
The broader United Nations is also facing financial strains, leading to a push for efficiency and cost reductions across various agencies. The UN Secretariat is preparing to reduce its $3.7 billion budget by 20%, with 75 agencies and departments submitting proposals for cuts.
“What worries me the most is the possibility to respond to countries in their needs fast enough,” Grynspan added. As part of a task force on UN reforms aimed at improving efficiency, she is involved in discussions on better collaboration among the UN’s development agencies.
The final decision on UNCTAD’s budget will be made by the UN Secretariat and member states in September. Meanwhile, the UN office in Geneva is considering leaving the historic Palais Wilson, a move that underscores the depth of the financial challenges facing the organization.
These developments raise concerns about the future of international support for developing nations. As global economic uncertainties persist, the need for cooperation and assistance becomes ever more critical.
