WHO Faces Funding Shortfall Following US Decision, Announces Cost-Cutting Measures

WHO Faces Funding Shortfall Following US Decision, Announces Cost-Cutting Measures
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The World Health Organization (WHO) has announced a series of cost-cutting measures in response to financial constraints exacerbated by the recent funding withdrawal from the United States.

WHO Director-General Dr. Tedros Adhanom Ghebreyesus revealed that the organisation had already been facing financial difficulties due to economic struggles in member states, prompting internal efforts to mobilize resources and streamline expenditures.

The US, one of WHO’s largest donors, announced plans to cut its financial contributions, worsening an already fragile funding situation.

Historically, WHO has struggled with financial stability, relying heavily on voluntary contributions from member states and private donors.

The organisation has faced previous funding challenges, particularly during major global health crises such as the COVID-19 pandemic and Ebola outbreaks, when urgent responses required substantial resources.

Following the US decision, WHO has implemented immediate measures, including freezing recruitment except for critical positions, reducing travel expenses, renegotiating procurement contracts, and cutting capital investments.

These steps aim to safeguard WHO’s global health initiatives while ensuring that its workforce remains supported.

The funding crisis has reignited debates over WHO’s financial model, which has long been criticised for its dependence on a few key donors.

Unlike other UN agencies, WHO receives only a fraction of its budget from mandatory contributions, with the majority coming from voluntary donations that fluctuate based on political and economic considerations.

Dr. Tedros emphasised that WHO’s primary objective is to protect its personnel, who are at the forefront of promoting public health, responding to outbreaks, and delivering essential healthcare services worldwide.

He reaffirmed WHO’s commitment to ensuring that healthcare remains a fundamental right for all, echoing the organisation's founding vision of universal health access.

Additional measures are expected to be announced as WHO navigates the funding crisis, raising concerns about the potential impact on global health programs, particularly in low-income countries reliant on WHO’s support.

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