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Annan Proposes Major Overhaul of UN


U.N. Secretary General Kofi Annan has proposed a major overhaul of how the international body is managed, sparking protests from staff concerned about the outsourcing of operations in information technology and employee benefits.

A 34-page report builds on reforms prompted last year after the scandal involving corruption in the U.N. oil-for-food program for Iraq.

Annan said the shake-up was necessary because more than 70 percent of the $10-billion annual budget is spent on peace-keeping and other field operations, and more than half of the U.N.'s 30,000 staff members work in the field.

The changes are expected to cost an initial $500 million. However, eventual cost savings are expected to equal that amount.

Some information for this report was provided by AFP, AP and Reuters.