Have I got a deal for you: UN in search of cheap housing

Wanted: cheap housing in an affordable city for U.N. institutions, diplomats, and civil servants forced by high rents out of Geneva and New York City. The United Nations is not yet ready to pack all its bags and ditch its historic headquarters, but a financial retrenchment by the United States and other traditional donors from global institutions is setting the stage for the relocation of back-office work to less expensive cities. And governments hoping to take advantage are rolling out the red carpet. “The Government of Rwanda is prepared to offer office facilities and essential services, while actively partnering on the development of a long-term UN Campus in the heart of the City of Kigali,” Rwandan Prime Minister Édouard Ngirente wrote in a private May 15 letter to U.N. Secretary-General António Guterres, which has not been previously reported. “Our proposal also includes the full package of privileges, immunities, and tax exemptions in accordance with UN standards.” Rwanda is among a number of countries, including Austria, Kenya, Germany, Turkey, and Qatar, seeking to expand their housing offerings to the U.N. or vying for a new role in hosting U.N. agencies as the world body seeks lower rent, subsidies, and other inducements aimed at easing an unprecedented financial crisis. The German government distributed a pamphlet extolling the virtues of expanding the U.N.’s presence in Bonn at a May 14-15 ministerial conference on U.N. peacekeeping, according to one diplomatic source. In a side meeting with Guterres, German officials offered to explore the possibility of covering the costs of relocating staff from Geneva or New York, according to a second diplomatic source. U.N. and German spokespersons declined to comment on the exchange. But senior German officials have publicly advocated a greater role for the U.N. in Bonn, which already hosts offices for several U.N. agencies. “We are proud that the United Nations has a large footprint in Germany with its Bonn office,” German Chancellor Friedrich Merz said at a May 14 press conference with the U.N. chief. “I have spoken with António Guterres about how we can further develop the Bonn site, and the United Nations is very keen to do so. Bonn is now one of the largest United Nations locations in the world.” “A stronger presence in Germany would be a visible sign of the increased role our country now plays in the United Nations,” added German federal minister Reem Alabali-Radovan. The move to relocate or abolish pieces of the sprawling U.N. empire comes as the world's traditional Western donors have been reducing foreign aid spending. The Trump administration's decision to impose draconian cuts in the budgets of the U.N. Secretariat and its numerous agencies has accelerated efforts to eke out savings in the organization's multibillion-dollar budget. Last week, Guterres outlined a reform initiative, known as UN80, to trim U.N. spending by as much as 20% in key departments, proposing cuts in U.N. staffing, and suggesting the U.N. expand its efforts to unload leases in New York and relocate staff to less expensive locations. He has instructed managers to review whether any existing work can be “performed from existing lower cost locations or may otherwise be reduced or abolished.” “By moving posts from high-cost locations, we can reduce our commercial footprint in those cities and reduce our post and non-post costs,” Guterres told government representatives at a briefing last week at U.N. headquarters. “We have already seen considerable savings in New York by terminating the lease of one building and moving staff into other existing premises, and we expect to close two more buildings when their leases expire in 2027.” The exodus of administrative staff, Guterres said, is already underway, with UNICEF moving a portion of its back-office staff to Nairobi. The U.N. already has a large footprint in Nairobi, hosting the headquarters of the U.N. Environment Programme and U.N. Habitat. The Geneva-based International Trade Centre, or ITC, is preparing to ship 50% of its back-office staff to Nairobi, and the UN Refugee Agency has increased its presence there, according to Guterres. “Nairobi has a huge campus, has a huge capacity to increase its space and its offer, and it has costs that are competitive,” Guterres said. The reform initiative — much of which will require the approval of the U.N.’s 193 member states — has drawn criticism across a spectrum of U.N. advocates, governments, and U.N. staffers as being hastily conceived, excessively focused on numbers, and lacking a strategic vision that would empower the U.N. to respond to a host of existential crises, from global warming to the growing inequality gap between rich and poor countries. “I think the main criticism most staff have is that this feels haphazard, last minute and rather than asking about what do we want to achieve and where do we add value it’s just a cut and move allowing politicking for jobs,” one U.N. official who requested anonymity to discuss internal U.N. matters, told Devex. “If this was a well thought through and communicated strategy one can comprehend it - and it’ll be different than everyone scared of being told to move or lose their job on short notice.” “I don’t think anyone would disagree that change needs to happen,” said Natalie Samarasinghe, the former CEO of the United Nations Association–UK. But the focus of debate is “driven through the lens of cuts, as opposed to what type of change we need.” “My big worry is that we see a U.N. that’ll be asked to do a little bit less with a lot less,” she added. Samarasinghe said key U.N. functions, including the promotion of human rights, need to take place in the major capitals, such as New York, where the world’s most influential political players are located. Noting ongoing U.N. discussions about moving some of the work of the Geneva-based UN Human Rights to a less expensive location is “great, there is a huge political dimension, and a crucial need to have these discussions in New York.” “There is a risk that the human rights side of things could get even more marginalized. God knows, there are countries that don’t like human rights and would love to see it shrink even further,” Louis Charbonneau, the U.N. director at Human Rights Watch, told Devex in a phone interview. “China and Russia have tried to slash funding for human rights. Until now, the United States has provided the most powerful counterbalance to that, [but] now there is a risk that the U.S. won’t do that. They will become an enabler of it.” Switzerland’s U.N. ambassador, Pascale Baeriswyl, has pushed back on the rush to decamp from Geneva, warning that “we do see a risk that we engage in widespread short-term cuts without a strategic vision, or indeed we would engage in relocalizations that would lead to false economies and a fragmentation of the system.” “The envisaged reform measures must therefore be targeted and proportionate,” she added. “Strengthening efficiency, consistency, and the impact of multilateral action should constitute our compass, and together we need to create a shared strategic vision. …. Only an approach focused on strengthening and maintaining existing synergies can be a truly responsible approach.” But Switzerland has also faced criticism from locals, who feel that the U.N. has driven up housing costs for foreign delegates, who contend that they have been charged excessive fees, according to Geneva-based diplomats and observers. “I can tell you Geneva has been gouging the U.N.,” said one senior diplomat. Some delegates have pointed to Vienna as a European alternative, noting that the UN Human Rights already reportedly planned to transfer some of its activities to Vienna. “Unlike other locations, the UN pays no rent in Vienna. Austria provides the premises for a symbolic annual rent of one Austrian schilling,” the diplomat, who is not Austrian, told Devex. “And although Vienna is the third most expensive UN location, its cost-efficiency remains favorable due to its affordable infrastructure.” Ian Richards, the head of the U.N. staff union in Geneva, said that the cost differential, including the costs of moving staff, is inconsequential. “Both duty stations have UN-owned properties that cost the organisation nothing and governments that can provide additional space for token rents,” he told Devex by text. “Hotel prices vary depending on the Euro-Swiss Franc exchange rates, which are constantly fluctuating. The question the staff have though is whether [the secretary-general’s reform initiative] UN 80 is a green light for senior managers to do deals with their own governments and whether any guardrails have been put in place.” Austria has been more discreet than Rwanda in making the case for a broader role, according to the diplomatic source, but it has sought to highlight its qualifications. It also happens to be the home country of U.N. High Commissioner for Human Rights Volker Türk. “We are honored to host one of the headquarters of the United Nations in Vienna, as well as over 50 other international organizations,” Austria’s Permanent Representative to the U.N. Gregor W. Koessler told Guterres and other heads of delegations. “Our unwavering support for multilateralism is combined with our strong commitment to be a good host to the United Nations.” “Reform proposals should take into account quantitative factors, meaning a comprehensive overview of all types of costs, as well as qualitative factors, including the availability of qualified labor force and the proximity to other international organizations,” he added. “A strategically balanced solution must be ensured for the U.N. HQ in Vienna as a core location within the U.N. system.” In a town hall meeting, Türk challenged a report that the vast majority of staff at the human rights body would be moving to the field, and that “we are all moving to Vienna.” “None of this is true,” he said. Though he noted that his office had already begun a process of decentralization of certain functions well before this year, moving personnel to regional offices in Brussels, Beirut, Bangkok, Panama City, Dakar, Pretoria, Nassau, and Yaoundé. “We remain committed to this approach of shifting relevant functions and posts to regional offices.” The Qatari royal family, meanwhile, reportedly dispatched a delegation to Geneva to present a proposal to host U.N. humanitarian agencies in Doha, part of a broader multiyear effort by the Gulf country to establish a broader humanitarian hub. The possible relocation of U.N. premises would likely represent a cultural shift for many of its workers, and it would force the global body and its hosts to address some uncomfortable historical baggage. The U.N.'s relationship with Rwanda has been particularly fraught, dating back to the early 1990s. Back then, the U.N. carried out a humbling retreat of its blue helmets, with the encouragement of the United States, as the country’s minority ethnic Tutsi population faced a genocidal rampage by forces linked to the then-Hutu-dominated government. The U.N., meanwhile, has documented mass atrocities carried out by the country’s Tutsi-dominated rebel forces, which seized power during the crisis and continue to rule Rwanda. “Rwanda has positioned itself as a competitive destination for multilateral institutions, offering a cost-effective, secure, reliable and enabling environment for their operations,” Nigrente added. “Kigali’s location provides direct air connectivity to key regional and global hubs. Our strong record of political stability, institutional efficiency, and safety ensures continuity of mission and staff well-being,” Ngirente added. “We would be delighted to welcome a technical mission from your Office to Kigali at the earliest opportunity to discuss this proposal further,” he added. “The visit would allow for a first-hand review of Rwanda’s infrastructure and offers, and align our support with the UN’s operational and relocation requirements.” Update, May 20, 2025: This article has been updated to include comments from Ian Richards. Update, May 21, 2025: An earlier version of this article incorrectly stated that the International Telecommunication Union is prepared to send approximately 50% of its back-office staff to Nairobi. It is, in fact, the International Trade Centre that is exploring this relocation. This article has also been updated to include comments from German officials.