UN faces crisis after reforms voted down

A powerful group of developing nations has blocked reform proposals that would have given Secretary-General Kofi Annan more budget power, and rich countries warned the move could push the world body toward financial crisis.

The vote yesterday in the main UN budget committee raises the threat that some wealthy countries – including Japan and the US – might withhold their UN dues after June. That’s when member states will review how much movement has been made toward Annan’s reform proposals to streamline UN operations and cut jobs, unveiled in March.