Article shared by Kul Gautam
Thank you, Switzerland.
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Summary
Switzerland has announced a CHF 269 million ($329 million) investment to reinforce Geneva’s position as a global diplomatic hub, amid increasing financial strain on international organisations and growing competition from other host cities. The funds will be allocated over the period 2025 to 2029, with CHF 130.4 million requiring parliamentary approval later this year—a 5% increase over the previous cycle. An additional CHF 21.5 million has already been approved for urgent measures.
The investment reflects Switzerland’s strategic interest in maintaining Geneva’s central role in global governance. With over 40 major international organisations based there—including the UN, WHO, and WTO—Geneva faces rising cost pressures and declining donor contributions, prompting fears of budget cuts, staff reductions, and possible relocations.
Quotes
“Switzerland will invest not out of nostalgia, but because it is an investment in the future of a world order based on the rule of law and humanity.” — Ignazio Cassis, Swiss Foreign Minister
“This has intensified somewhat at the moment because of the cost pressures.” — Juerg Lauber, Head of Switzerland’s Mission to the UN in Geneva
Admire your spirit. Wish other OECD countries would be as enlightened and generous as Switzerland.
Summary
Switzerland has announced a CHF 269 million ($329 million) investment to reinforce Geneva’s position as a global diplomatic hub, amid increasing financial strain on international organisations and growing competition from other host cities. The funds will be allocated over the period 2025 to 2029, with CHF 130.4 million requiring parliamentary approval later this year—a 5% increase over the previous cycle. An additional CHF 21.5 million has already been approved for urgent measures.
The investment reflects Switzerland’s strategic interest in maintaining Geneva’s central role in global governance. With over 40 major international organisations based there—including the UN, WHO, and WTO—Geneva faces rising cost pressures and declining donor contributions, prompting fears of budget cuts, staff reductions, and possible relocations.
Quotes
“Switzerland will invest not out of nostalgia, but because it is an investment in the future of a world order based on the rule of law and humanity.” — Ignazio Cassis, Swiss Foreign Minister
“This has intensified somewhat at the moment because of the cost pressures.” — Juerg Lauber, Head of Switzerland’s Mission to the UN in Geneva
Let us not fool ourselves. Geneva is making tons of money from the presence of the UN and UN organizations.
ReplyDeleteThe post adjustment of more than 1600 UN staff working in Geneva, at a multiplier of 85, easily tops 100 million USD per year. As this is post adjustment, this and much more is calculated to be spent by UN staff in Geneva. It doesn’t include rental subsidy. Nor the office costs, conference services, per diems of visiting luminaries and so forth at another (very conservatively estimated) 100 million USD annually – all going into the Geneva and Swiss economy. This is big business for Geneva and Switzerland.
The Swiss investment is not an investment in the future of a world order, but an investment to secure future economic returns for Geneva and Switzerland from the development aid industry.
Let’s appreciate what the Swiss Government is hoping to do unlike what the mad man is doing to the UN in the US without going into RS/PA and per diem etc. In any case similar expenses will be incurred regardless of whether based in Geneva. New York or Elsewhere.
DeleteDo think again. The Swiss money is for renovation and upgrading real estate, and deferral of loans that UN agencies have taken for real property. The share of development aid (paid for by mostly western donor countries and national committees) going into Geneva and Switzerland (instead of going into developing countries) is much larger than the outlay of Switzerland for the renovation. This investment is to incentivize UN agencies to not move to less costly locations. See here (click)
DeleteConsidering that much of the UN expenditure in Geneva is development aid, it would be fair if that money would be spent in a developing country.