SCALE OF ASSESSMENTS AND CURRENCY OF MEMBER STATES CONTRIBUTIONS FOR OUTLINE

U General Conference 32nd session, Paris 2003 32 C 32 C/36 4 August 2003 Original: English Item 11.5 of the provisional agenda SCALE OF ASSESSMENTS AND CURRENCY OF MEMBER STATES CONTRIBUTIONS FOR 2004-2005 Source: Financial Regulation 5.1. OUTLINE Background: In accordance with Article IX of the Constitution and Article 5.1 of the Financial Regulations, the General Conference determines the scale of assessments of Member States contributions for each financial period. Purpose: Bearing in mind the practice followed in the past of basing the UNESCO scale on that of the United Nations, suitably adjusted to take into account the difference in membership between the two organizations, the Director-General submits in Part I of this document a report and a draft resolution on the subject for consideration by the Conference. In Part II of the document the Director-General submits proposals in accordance with Financial Regulation 5.6 regarding the currency of assessment and payment of contributions to the budget for the biennium 2004-2005. Decisions required: paragraphs 8 and 19.

32 C/36 PART I SCALE OF ASSESSMENTS Methodology applied to determine the scale of assessments in recent biennia 1. The scale of assessment of Member States contributions to UNESCO has always been based on the most recent scale of assessments adopted by the General Assembly of the United Nations, with suitable adjustments to take into account the difference in membership between the two organizations. In the case of Member States of UNESCO which are not members of the United Nations, the rate of assessment used is the one applied by the United Nations in order to calculate the contributions to be made by those States to the United Nations activities in which they participate. UNESCO scale of assessments for 2002-2003 2. The United Nations scales for 2001, 2002 and 2003 were adopted by the General Assembly resolution 55/5B of 23 December 2000. One particular change in this scale was the reduction of the maximum rate of assessments from 25% to 22%, in respect of which the General Assembly Resolution included a paragraph that stated that this reduction should not automatically apply to the specialized agencies. In view of its own 30 C/Resolution 65 which stated that the UNESCO scale of assessments of Member States for 2001 shall be calculated on the basis of the scale adopted by the United Nations General Assembly at its fifty-fifth session with the same minimum rate and the same maximum rate, UNESCO applied the reduced maximum amount for 2001 and proposed scales calculated in a similar way for 2002-2003 to the 31st session of the General Conference. 3. At that 31st session, a debate took place between Member States on the methodology applied. Some Member States considered that the methodology linking the UNESCO scale to the latest United Nations scale should be revised, and that the present practice to apply automatically any change of scale adopted by the United Nations during the course of a biennium prevents Member States from having a clear indication of their contribution. Other Member States considered that UNESCO should automatically apply the latest United Nations scale as that was the latest reflection on the capacity of Member States to pay and had been adopted by basically the same Member States. 4. The General Conference finally adopted the 2002-2003 scale as proposed on an interim basis and requested that the Executive Board undertake at its 165th session an in-depth examination of the question and to report to the General Conference at its 32nd session, making proposals for its consideration, which could include retrospective adjustments of the interim scales of assessments. The implementation of 31/C Resolution 52 on the scale of assessment for 2002-2003 is presented under reference of document 32 C/56. 5. At its 165th session the Executive Board adopted 165 EX/Decision 8.5, paragraph 8, Part A, which reads: Requests the Director-General, taking into account the recommendations of the working group and the decisions of the Executive Board at its 166th session, to prepare the scale of assessments of Member States contributions for each of the years 2004-2005 on the basis that UNESCO will apply the scale or scales of assessments adopted/to be adopted by the United Nations General Assembly for the same years; the UNESCO scale or scales to be established with the same minimum rate and the same maximum rate as used by the United Nations, all other rates being adjusted to take into account the difference in membership between the two organizations in order to derive a UNESCO scale of 100%, and to submit this to the General Conference via the Executive Board meeting at its 167th session.

32 C/36 page 2 6. The United Nations scale for 2004-2005 is not yet available. However, the General Assembly of the United Nations has decided that the methodology defined in resolution 55/5B will not change for the 2004-2006 scales. The changes compared to 2003 will therefore primarily reflect new national income data, and the exchange rate to apply. The Committee of Contributions has considered the scales for 2004-2006 at its sixty-sixth session that ran to 27 June 2003. It reached consensus on the technical issues albeit with some reservation and has recommended one single scale to the General Assembly. But its report will not be available until August. The Committee s report will be considered by the General Assembly in the Autumn and it is foreseen that the scale should be adopted by the General Assembly at the end of 2003. 7. The Director-General fully supports the decision of the Executive Board that UNESCO s scale of contributions for 2004-2005 should be prepared on the basis of the scale or scales of assessment adopted/to be adopted by the United Nations General Assembly for the same years and has worded the draft resolution accordingly. Any more information that might become available before the General Conference will be presented to the Conference in an addendum to this document. Point for decision 8. Bearing in mind the foregoing considerations, the Director-General has drawn up the framework of a possible resolution. In accordance with the opinion expressed at the 26th session of the General Conference that future draft resolutions on scales of assessments should not repeat the texts of provisions already recorded elsewhere, the suggested criteria for assessment of contributions of new Member States and Associate Members that may join UNESCO during 2004-2005 which are identical to those already detailed in 26 C/Resolution 23.1, have been covered by cross reference thereto in the draft resolution. The General Conference, Recalling Article IX of the Constitution, which stipulates in paragraph 2 that the General Conference shall approve and give final effect to the budget and to the apportionment of financial responsibility among the States Members of the Organization, Considering that the scale of assessments for Member States of UNESCO has always been based on that of the United Nations, subject to the adjustments necessitated by the difference in membership between the two organizations, Resolves that: (a) the scale of assessments of Member States of UNESCO for each of the years 2004 and 2005 shall be calculated on the basis of the scale or scales of assessment adopted/to be adopted by the United Nations General Assembly for the same years; the UNESCO scale or scales shall be established with the same minimum rate and the same maximum rate, all the other rates being adjusted to take into account the difference in membership between the two organizations in order to derive a UNESCO scale of 100%; (b) if the United Nations General Assembly approves a scale for 2005 which is different from that for 2004 the relevant provisions of Articles 5.3 and 5.4 of the Financial Regulations shall not be applied; (c) if the United Nations General Assembly revises the scale for 2005 at a later session, the revised scale will be adopted by UNESCO.

32 C/36 page 3 (d) new members depositing their instruments of ratification after [date to be determined at the General Conference] 1 and Associate Members shall be assessed in accordance with the formulae set forth in 26 C/Resolution 23.1; (e) rates of assessment for Member States shall be rounded off to the same number of decimal places as in the United Nations scale or scales; rates of assessment for Associate Members shall be rounded off to one additional decimal place, as necessary, in order to allow the effective reduction to 60% of the minimum rate of assessment for Member States stipulated in 26 C/Resolution 23.1. PART II CURRENCY OF ASSESSMENT AND PAYMENT OF CONTRIBUTIONS 9. Article 5.6 of the Financial Regulations as amended by resolution 65.1 adopted by the General Conference at its 30th session stipulates as follows: Contributions to the budget shall be assessed partly in United States dollars and partly in euros in a proportion to be determined by the General Conference and shall be paid in these or other currencies as decided by the General Conference. Advances to the Working Capital Fund shall be assessed and paid in a currency or currencies to be determined by the General Conference. 10. This part of the document covers the question of currencies of assessment and payment of contributions to the budget of the Organization. The proposed resolution on the level and administration of the Working Capital Fund for 2004-2005 which may be found in document 32 C/38 covers the question of currencies of assessment and payment of advances to the Working Capital Fund. Background of the split-level assessment system 11. The split-level assessment system for contributions to be assessed and paid partly in United States dollars and partly in French francs (euros since 1 January 1999) was introduced by the General Conference at its 24th session as a measure to protect the regular budget from adverse currency fluctuations of the French franc to the dollar. 12. At its 25th session the General Conference adopted resolution 33.2 which extended the system for 1990-1991 and requested the Executive Board to study the advantages and disadvantages of a split-level assessment system as compared with a forward purchasing of French francs against dollars and make proposals to the General Conference at its 26th session. 13. Based on the recommendation made by the Executive Board at its 135th session (135 EX/Decision 7.5) that the split-level assessment system should be continued, the General Conference at its 26th session adopted resolution 25.1 by which it extended the system for an indeterminate period by amendment of Financial Regulation 5.6. Administration of the split-level assessment system for 2004-2005 14. With regard to the administration of the split-level assessment system that will be operated in accordance with Financial Regulation 5.6 for the biennium 2004-2005, the General Conference may wish to consider in particular the following factors: 1 The Director-General suggests the day before this is discussed by the Administrative Commission.

32 C/36 page 4 (a) In order to properly determine the amount of contributions to be assessed and paid in euros for 2004-2005, the percentage of estimated expenditure in euros should be based on a study of euro requirements for the implementation of the programme for the current biennium together with projections of any changing pattern of expenditure expected in euros and United States dollars in the forthcoming biennium; the percentage of 56% of Parts I to VII of the budget determined for assessment of contributions in euros for 2002-2003 may have to be revised accordingly. A percentage figure for this purpose will be proposed by the Director-General to the General Conference at its 32nd session in the light of a study to be concluded in this respect. (b) At previous sessions of the General Conference some Member States requested the choice of payment of the entire amount of their assessed contributions either in United States dollars or in euros during the financial period. The General Conference may wish to continue to offer such payment options, subject to the conditions already approved in this respect. These conditions provide that unless the contributions assessed in both currencies are received simultaneously in full, credit is given against contributions due in proportion to the amounts assessed in both currencies, by the application of the United Nations operational rate of exchange between the United States dollar and the euro on the date on which the contribution is credited to a bank account of the Organization. In this way the Organization would also be adequately protected from exposure to currency fluctuations arising from late payment in either of the two currencies due from each Member State. (c) In accordance with the practice established at the 25th session of the General Conference, contributions assessed in euros, that remain unpaid at the end of the biennium should be converted into United States dollars at the time of assessment of contributions for the subsequent biennium. The rates of exchange proposed for such conversions are detailed in the draft resolution to be adopted which may be found in paragraph 19 below. Payment of contributions in currencies other than the United States dollar or the euro 15. The Director-General recommends maintenance of the established principle that Member States should, to the widest possible extent, enjoy the privilege of paying their contributions in the currency of their choice. During the current financial period, a number of Member States have taken advantage of the possibility open to them to pay part or all of their contributions in currencies other than the United States dollar and the French franc or euro. In accordance with the decision of the General Conference at its 29th session, sums in a given national currency accepted at the request of the Member State concerned have been fixed by the Director-General at the maximum level commensurate with the needs for the use of that currency in the implementation of the programme. 16. The Director-General will do all he can to comply with requests submitted in this connection in the forthcoming biennium under conditions similar to those approved in the past. It should be borne in mind, however, that acceptance of a wider variety of currencies would disperse the bank assets of the Organization, with the effect of rendering the management of cash more difficult and would have an adverse effect on the cash position, owing to the immobilization of funds in certain non-convertible currencies. 17. It should be noted that the acceptance of national currency in payment of all or part of the contribution of a Member State may wholly or partly reduce the possibility of accepting national currency in payment of UNESCO Coupons as proposed in document 32 C/38. It is therefore for the Member State to decide to which alternative utilization it wishes to give priority in making its

32 C/36 page 5 request for utilization of its national currency, bearing in mind the requirements of the Financial Regulations regarding settlement of assessed contributions within one month of receipt of annual letters of assessment. 18. Experience has shown that when a Member State pays its contributions, the application of the exchange rate in force at the date of payment may result in a small balance remaining due by this Member State, or, on the other hand, a slight surplus to its credit. For the sake of simplifying administrative and accounting procedures, and in accordance with past practice, it is suggested that no account should be taken of such differences which do not exceed $100 when they relate to the last payment against contributions due for the biennium, whether to the credit of the Member State or of the Organization. The draft resolution contains a clause to this effect. Point for decision 19. In the light of the foregoing considerations, the General Conference may wish to adopt a resolution along the following lines: The General Conference, Having examined the report of the Director-General on the currency of contributions of Member States (32 C/36), Recalling Article 5.6 of the Financial Regulations which stipulates that Contributions to the budget shall be assessed partly in United States dollars and partly in euros in a proportion to be determined by the General Conference and shall be paid in these or other currencies as decided by the General Conference..., Conscious of the need to reduce the exposure of the Organization to adverse currency fluctuation during 2004-2005, 1. Resolves, in respect of contributions for the years 2004 and 2005, that: (a) contributions to the budget shall be assessed on the basis of the approved scale of assessments as follows: (i) (ii) in euros [to be determined at the General Conference] percentage of the budget calculated at the rate of US $1 equal to 0.869 (or other such rate as may be determined by the General Conference); in United States dollars the remainder of the amount of contributions to be paid by Member States; (b) contributions shall be paid in the two currencies in which they are assessed; nevertheless payment of the amount assessed in one currency may be made, at the choice of the Member State, in the other currency of assessment; unless the amounts assessed are received simultaneously and in full in the currencies in which they are assessed, credit shall be given against contributions due in proportion to the amounts assessed in both currencies, by the application of the United Nations operational rate of exchange between the United States dollar and the euro on the date on which the contribution is credited to a bank account of the Organization;

32 C/36 page 6 (c) contributions to be assessed in euros for the financial period that remain unpaid at the time of assessment of contributions for the subsequent financial period shall be considered as due and payable in United States dollars thereafter and for this purpose shall be converted into United States dollars using the euro rate of exchange, that is most beneficial to the Organization, by reference to the following three options: (i) (ii) the constant rate of exchange of 0.869 to the dollar used to calculate the euro portion of assessed contributions for the biennium; the average rate of exchange of the euro to the dollar during the biennium; (iii) the euro rate of exchange to the dollar for December of the second year of the biennium; (d) (e) arrears of contributions from previous financial periods and arrears converted into annual instalments considered as due and payable in United States dollars, but received in a currency other than the United States dollar, shall be converted into United States dollars at either the most favourable rate which UNESCO can obtain for conversion of the currency in question into United States dollars on the market on the date on which the amount is credited to a bank account of the Organization or at the United Nations operational rate of exchange on the same date, whichever is more beneficial to the Organization; when contributions are received in advance in euros for subsequent financial periods, such advance contributions shall be converted into United States dollars at the operational rate of exchange ruling on the date when payment is credited to a bank account of the Organization; all contributions received in advance shall be held in the name of the contributor in United States dollars, and credit shall be given against contributions due for the subsequent financial period in dollars and euros, in the proportion determined by the General Conference, using the operational rate of exchange prevailing on the date of dispatch of letters of assessment for the first year of the following financial period; Considering nevertheless that Member States may find it desirable to discharge part of their contributions in the currency of their choice, 2. Resolves that: (a) (b) (c) the Director-General is authorized, upon request from a Member State, to accept payment in the national currency of the Member State if he considers that there is a foreseeable need for that currency in the remaining months of the calendar year; when accepting national currencies the Director-General, in consultation with the Member State concerned, shall determine that part of the contribution which can be accepted in the national currency, taking into account any amounts requested for payment of UNESCO Coupons; the Member State concerned must make a global proposal in that case; in order to ensure that contributions paid in national currencies will be usable by the Organization, the Director-General is authorized to fix a time limit for payment, in consultation with the Member State concerned, after which

32 C/36 page 7 contributions would become payable in the currencies mentioned in paragraph 1 above; (d) acceptance of currencies other than the United States dollar or the euro is subject to the following conditions: (i) (ii) currencies so accepted must be usable, without further negotiation, within the exchange regulations of the country concerned, for meeting all expenditure incurred by UNESCO within that country; the rate of exchange to be applied shall be the most favourable rate which UNESCO can obtain for the conversion of the currency in question into United States dollars at the date at which the contribution is credited to a bank account of the Organization; after translation into United States dollars, credit shall be given against contributions for 2004-2005 where appropriate in proportion to the amounts assessed in United States dollars and euros, in the manner specified in paragraph 1 above; (iii) if, at any time within the 12 months following the payment of a contribution in a currency other than the United States dollar or the euro, there should occur a reduction in the exchange value or a devaluation of such currency in terms of United States dollars, the Member State concerned may be required, upon notification, to make an adjustment payment to cover the exchange loss pertaining to the unspent balance of the contribution; to the extent that the Director-General considers that there is a foreseeable need for that currency in the remaining months of the calendar year, he is authorized to accept the adjustment payment in the national currency of the Member State; (iv) if, at any time within the 12 months following the payment of a contribution in a currency other than the United States dollar or the euro, there should occur an increase in the exchange value or a revaluation of such currency in terms of United States dollars, the Member State concerned may require the Director-General, upon notification, to make an adjustment payment to cover the exchange gain pertaining to the unspent balance of the contribution; such adjustment payments will be made in the national currency of the Member State; 3. Resolves further that any differences due to variations in the rates of exchange not exceeding $100 relating to the last payment against contributions due for the biennium in question, shall be posted to exchange profit and loss account.

U General Conference 32nd session, Paris 2003 32 C 32 C/36 Add. 23 August 2003 Original: English Item 11.5 of the provisional agenda SCALE OF ASSESSMENTS AND CURRENCY OF MEMBER STATES' CONTRIBUTIONS FOR 2004-2005 ADDENDUM SUMMARY Further to paragraph 6 of Document 32 C/36, the Director-General provides additional information based on the work of the United Nations Committee on contributions which took place from 2 to 27 June 2003. In their report (A/58/11), the Committee recommended a scale of assessments to the General Assembly for the period 2004-2006. 1. Since the preparation of document 32 C/36, the Report of the sixty-third session of the United Nations Committee on Contributions held in New York in June 2003, is now available. This report recommends a scale of assessments for the United Nations for 2004 to 2006. It is important to note that the scale should be considered as provisional until it is adopted by the General Assembly, most probably in December 2003. 2. The report confirms that the Committee prepared the scale of assessments for the period 2004-2006 on the basis of the same elements of methodology as adopted in the General Assembly resolution 55/5 B which are the following : (a) (b) (c) estimates of the gross national product (GNP); average statistical base period of six and three years; conversion rates based on market exchange rates (MERs), except where that would cause excessive fluctuations and distortions in the income of some Member States, when price-adjusted rates of exchange (PAREs) or other appropriate conversion rates should be employed;

32 C/36 Add. page 2 (d) the debt-burden approach employed in the scale of assessments for the period 1995-1997; (e) a low per capita income adjustment of 80%, with the threshold per capita income limit of the average per capita GNP of all Member States for the statistical base periods; (f) a minimum assessment rate of 0.001%; (g) a maximum assessment rate for the least developed countries of 0.01%; (h) a maximum assessment rate of 22%. The Committee had before it for the period 1996-2001 a comprehensive database for all Member States on various measures of income in local currencies, population, exchange rates and total external debt stocks, repayments of principal and total and per capita income measures in US dollars. The primary source for income data in local currencies was the national accounts questionnaire completed for the United Nations by the countries concerned. For those countries for which full replies to the questionnaire had not been received, estimates were prepared by the United Nations Statistics Division based on information from other national and international sources, notably the United Nations regional commissions, IMF and the World Bank. 3. Based on this proposed scale of assessments the Director-General wishes to present in Annex I the UNESCO scale for 2004 and 2005 with suitable adjustments to take into account the difference in membership between the two organizations. In this respect and in view of the formal announcement from that country, he has included the United States of America as a Member State of UNESCO for the next biennium. The calculation of the coefficient between the United Nations scale and the UNESCO scale of assessments is shown in Annex II. 4. In reviewing the scale of assessments for 2004-2005, Member States are reminded that the scale is provisional until it is adopted by the General Assembly. Consequently, if the General Conference adopts the draft resolution in paragraph 8 of document 32 C/36, the attached scale would be modified in line with any changes made by the United Nations.

32 C/36 Add. Annex I ANNEX I UNESCO SCALE FOR DERIVED FROM THE UNITED NATIONS REPORT OF THE COMMITTEE ON CONTRIBUTIONS, 63rd SESSION, JUNE 2003 Member State United Nations scale UNESCO scale Afghanistan 0,002 0,002 Albania 0,005 0,005 Algeria 0,076 0,077 Andorra 0,005 0,005 Angola 0,001 0,001 Antigua and Barbuda 0,003 0,003 Argentina 0,964 0,969 Armenia 0,002 0,002 Australia 1,606 1,615 Austria 0,867 0,872 Azerbaijan 0,005 0,005 Bahamas 0,013 0,013 Bahrain 0,030 0,030 Bangladesh 0,010 0,010 Barbados 0,010 0,010 Belarus 0,018 0,018 Belgium 1,078 1,084 Belize 0,001 0,001 Benin 0,002 0,002 Bhutan 0,001 0,001 Bolivia 0,009 0,009 Bosnia and Herzegovina 0,003 0,003 Botswana 0,012 0,012 Brazil 1,534 1,543 Bulgaria 0,017 0,017 Burkina Faso 0,002 0,002 Burundi 0,001 0,001 Cambodia 0,002 0,002 Cameroon 0,008 0,008 Canada 2,837 2,854

32 C/36 Add. Annex I page 2 Member State United Nations scale UNESCO scale Cape Verde 0,002 0,002 Central African Republic 0,001 0,001 Chad 0,001 0,001 Chile 0,225 0,226 China 2,070 2,082 Colombia 0,156 0,157 Comoros 0,001 0,001 Congo 0,001 0,001 Cook Islands 0,001 0,001 Costa Rica 0,039 0,039 Côte d Ivoire 0,010 0,010 Croatia 0,038 0,038 Cuba 0,043 0,043 Cyprus 0,039 0,039 Czech Republic 0,184 0,185 Dem. People s Rep.of Korea 0,010 0,010 Dem. Rep. of the Congo 0,003 0,003 Denmark 0,724 0,728 Djibouti 0,001 0,001 Dominica 0,001 0,001 Dominican Republic 0,035 0,035 Ecuador 0,019 0,019 Egypt 0,120 0,122 El Salvador 0,022 0,022 Equatorial Guinea 0,002 0,002 Eritrea 0,001 0,001 Estonia 0,012 0,012 Ethiopia 0,004 0,004 Fiji 0,004 0,004 Finland 0,535 0,538 France 6,080 6,115 Gabon 0,009 0,009 Gambia 0,001 0,001 Georgia 0,003 0,003 Germany 8,733 8,781

Member State United Nations scale 32 C/36 Add. Annex I page 3 UNESCO scale Ghana 0,004 0,004 Greece 0,534 0,537 Grenada 0,001 0,001 Guatemala 0,030 0,030 Guinea 0,003 0,003 Guinea-Bissau 0,001 0,001 Guyana 0,001 0,001 Haiti 0,003 0,003 Honduras 0,005 0,005 Hungary 0,127 0,128 Iceland 0,034 0,034 India 0,424 0,426 Indonesia 0,143 0,144 Iran, Islamic Republic of 0,158 0,159 Iraq 0,016 0,016 Ireland 0,353 0,355 Israel 0,471 0,474 Italy 4,926 4,953 Jamaica 0,015 0,015 Japan 19,629 19,738 Jordan 0,011 0,011 Kazakhstan 0,025 0,025 Kenya 0,009 0,009 Kiribati 0,001 0,001 Kuwait 0,163 0,164 Kyrgyzstan 0,001 0,001 Lao People s Dem. Republic 0,001 0,001 Latvia 0,015 0,015 Lebanon 0,044 0,044 Lesotho 0,001 0,001 Liberia 0,001 0,001 Libyan Arab Jamahiriya 0,133 0,134 Lithuania 0,024 0,024 Luxembourg 0,078 0,078 Madagascar 0,003 0,003

32 C/36 Add. Annex I page 4 Member State United Nations scale UNESCO scale Malawi 0,001 0,001 Malaysia 0,205 0,206 Maldives 0,001 0,001 Mali 0,002 0,002 Malta 0,014 0,014 Marshall Islands 0,001 0,001 Mauritania 0,001 0,001 Mauritius 0,011 0,011 Mexico 1,899 1,910 Micronesia 0,001 0,001 Monaco 0,003 0,003 Mongolia 0,001 0,001 Morocco 0,047 0,047 Mozambique 0,002 0,002 Myanmar 0,010 0,010 Namibia 0,006 0,006 Nauru 0,001 0,001 Nepal 0,004 0,004 Netherlands 1,695 1,704 New Zealand 0,223 0,224 Nicaragua 0,001 0,001 Niger 0,001 0,001 Nigeria 0,043 0,043 Niue 0,001 0,001 Norway 0,685 0,689 Oman 0,071 0,071 Pakistan 0,056 0,056 Palau 0,001 0,001 Panama 0,019 0,019 Papua New Guinea 0,003 0,003 Paraguay 0,012 0,012 Peru 0,093 0,094 Philippines 0,096 0,097 Poland 0,464 0,467 Portugal 0,474 0,477

Member State United Nations scale 32 C/36 Add. Annex I page 5 UNESCO scale Qatar 0,064 0,064 Republic of Korea 1,808 1,818 Republic of Moldova 0,001 0,001 Romania 0,061 0,061 Russian Federation 0,466 0,469 Rwanda 0,001 0,001 Saint Kitts and Nevis 0,001 0,001 Saint Lucia 0,002 0,002 St. Vincent and Grenadines 0,001 0,001 Samoa 0,001 0,001 San Marino 0,003 0,003 Sao Tome and Principe 0,001 0,001 Saudi Arabia 0,719 0,723 Senegal 0,005 0,005 Serbia and Herzegovina 0,019 0,019 Seychelles 0,002 0,002 Sierra Leone 0,001 0,001 Slovakia 0,051 0,051 Slovenia 0,083 0,083 Solomon Islands 0,001 0,001 Somalia 0,001 0,001 South Africa 0,294 0,296 Spain 2,520 2,534 Sri Lanka 0,017 0,017 Sudan 0,008 0,008 Suriname 0,001 0,001 Swaziland 0,002 0,002 Sweden 1,001 1,007 Switzerland 1,207 1,214 Syrian Arab Republic 0,038 0,038 Taijikistan 0,001 0,001 Thailand 0,211 0,212 The former Yugoslav Rep.of Macedonia 0,006 0,006 Timor-Leste 0,001 0,001 Togo 0,001 0,001

32 C/36 Add. Annex I page 6 Member State United Nations scale UNESCO scale Tonga 0,001 0,001 Trinidad and Tobago 0,027 0,027 Tunisia 0,032 0,032 Turkey 0,376 0,378 Turkmenistan 0,005 0,005 Tuvalu 0,001 0,001 Uganda 0,006 0,006 Ukraine 0,040 0,040 United Arab Emirates 0,237 0,238 United Kingdom 6,178 6,212 United Republic of Tanzania 0,006 0,006 United States of America 22,000 22,000 Uruguay 0,048 0,048 Uzbekistan 0,014 0,014 Vanuatu 0,001 0,001 Venezuela 0,173 0,174 Viet Nam 0,021 0,021 Yemen 0,006 0,006 Zambia 0,002 0,002 Zimbabwe 0,007 0,007 Total 99,571 100,000

32 C/36 Add. Annex II ANNEX II CALCULATION OF THE COEFFICIENT OF ADJUSTMENT BETWEEN THE UNITED NATIONS SCALE AND THE UNESCO SCALE OF ASSESSMENTS FOR 2004-2005 Number of UNESCO Member States United Nations scale UNESCO scale 190 100,000 100,000 Deduct United Nations but not UNESCO Member States Brunei -0,034 Liechtenstein -0,006 Singapore -0,391-0,431 99,569 Add UNESCO but not United Nations Member States Cook Island 0,001 Niue 0,001 0,002 99,571 Less: UNESCO Member States with the fixed minimum rate of assessment 48,000-0,048-0,048 142,000 99,523 99,952 Less: UNESCO Member State with the fixed maximum rate of assessment 1,000-22,000-22,000 141,000 77,523 77,952 Coefficient to adjust the rate of 141 Member States without fixed rates in the UNESCO scale 77,952 = 1,00553384157 77,523

U General Conference 32nd session, Paris 2003 32 C 32 C/36 Add.2 27 September 2003 Original: English Item 11.5 of the provisional agenda SCALE OF ASSESSMENTS AND CURRENCY OF MEMBER STATES CONTRIBUTIONS FOR 2004-2005 ADDENDUM 2 SUMMARY The present document transmits to the General Conference the decision adopted by the Executive Board, after consideration of document 167 EX/31 and 167 EX/31 Add. (containing documents 32 C/36 and 32 C/36 Add.) at its 167th session (167 EX/Decision 7.3), and additional information on amounts that each Member State would pay if the 2004-2005 scale derived from the United Nations report of the Committee on contributions, 63rd session, June 2003, and the proposed budget ceiling were adopted (contained in document 167 EX/INF.11). After consideration of documents 167 EX/31 and Add. and 167 EX/INF.11 (which appears as an Annex to this document), the Executive Board adopted the following decision: The Executive Board, 1. Having examined documents 167 EX/31 and Add. and 167 EX/INF.11, 2. Recommends that the General Conference adopt, at its 32nd session, the following draft resolution:

32 C/36 Add.2 page 2 The General Conference, PART I SCALE OF ASSESSMENTS Recalling Article IX of the Constitution, which stipulates in paragraph 2 that the General Conference shall approve and give final effect to the budget and to the apportionment of financial responsibility among the States Members of the Organization, Considering that the scale of assessments for Member States of UNESCO has always been based on that of the United Nations, subject to the adjustments necessitated by the difference in membership between the two organizations, Resolves that: (a) the scale of assessments of Member States of UNESCO for each of the years 2004 and 2005 shall be calculated on the basis of the scale or scales of assessment adopted/to be adopted by the United Nations General Assembly for the same years; the UNESCO scale or scales shall be established with the same minimum rate and the same maximum rate, all the other rates being adjusted to take into account the difference in membership between the two organizations in order to derive a UNESCO scale of 100%; (b) if the United Nations General Assembly approves a scale for 2005 which is different from that for 2004 the relevant provisions of Articles 5.3 and 5.4 of the Financial Regulations shall not be applied; (c) if the United Nations General Assembly revises the scale for 2005 at a later session, the revised scale will be adopted by UNESCO; (d) new members depositing their instruments of ratification after [date to be determined at the General Conference] 1 and Associate Members shall be assessed in accordance with the formulae set forth in 26 C/Resolution 23.1; (e) rates of assessment for Member States shall be rounded off to the same number of decimal places as in the United Nations scale or scales; rates of assessment for Associate Members shall be rounded off to one additional decimal place, as necessary, in order to allow the effective reduction to 60% of the minimum rate of assessment for Member States stipulated in 26 C/Resolution 23.1. The General Conference, PART II CURRENCY OF ASSESSMENT AND PAYMENT OF CONTRIBUTIONS Having examined the report of the Director-General on the currency of contributions of Member States (32 C/36), Recalling Article 5.6 of the Financial Regulations which stipulates that Contributions to the budget shall be assessed partly in United States dollars and partly in euros in a proportion to be determined by the General Conference and shall be paid in these or other currencies as decided by the General Conference..., 1 The Director-General suggests the day before this is discussed by the Administrative Commission.

32 C/36 Add.2 page 3 Conscious of the need to reduce the exposure of the Organization to adverse currency fluctuation during 2004-2005, 1. Resolves, in respect of contributions for the years 2004 and 2005, that: (a) contributions to the budget shall be assessed on the basis of the approved scale of assessments as follows: (i) (ii) in euros [to be determined at the General Conference] percentage of the budget calculated at the rate of US $1 equal to 0.869 (or other such rate as may be determined by the General Conference); in United States dollars the remainder of the amount of contributions to be paid by Member States; (b) contributions shall be paid in the two currencies in which they are assessed; nevertheless payment of the amount assessed in one currency may be made, at the choice of the Member State, in the other currency of assessment; unless the amounts assessed are received simultaneously and in full in the currencies in which they are assessed, credit shall be given against contributions due in proportion to the amounts assessed in both currencies, by the application of the United Nations operational rate of exchange between the United States dollar and the euro on the date on which the contribution is credited to a bank account of the Organization; (c) contributions to be assessed in euros for the financial period that remain unpaid at the time of assessment of contributions for the subsequent financial period shall be considered as due and payable in United States dollars thereafter and for this purpose shall be converted into United States dollars using the euro rate of exchange, that is most beneficial to the Organization, by reference to the following three options: (i) (ii) the constant rate of exchange of 0.869 to the dollar used to calculate the euro portion of assessed contributions for the biennium; the average rate of exchange of the euro to the dollar during the biennium; (iii) the euro rate of exchange to the dollar for December of the second year of the biennium; (d) (e) arrears of contributions from previous financial periods and arrears converted into annual instalments considered as due and payable in United States dollars, but received in a currency other than the United States dollar, shall be converted into United States dollars at either the most favourable rate which UNESCO can obtain for conversion of the currency in question into United States dollars on the market on the date on which the amount is credited to a bank account of the Organization or at the United Nations operational rate of exchange on the same date, whichever is more beneficial to the Organization; when contributions are received in advance in euros for subsequent financial periods, such advance contributions shall be converted into United States dollars at the operational rate of exchange ruling on the date when payment is credited to a bank account of the Organization; all contributions received in advance shall be

32 C/36 Add.2 page 4 held in the name of the contributor in United States dollars, and credit shall be given against contributions due for the subsequent financial period in dollars and euros, in the proportion determined by the General Conference, using the operational rate of exchange prevailing on the date of dispatch of letters of assessment for the first year of the following financial period; Considering nevertheless that Member States may find it desirable to discharge part of their contributions in the currency of their choice, 2. Resolves that: (a) (b) (c) (d) the Director-General is authorized, upon request from a Member State, to accept payment in the national currency of the Member State if he considers that there is a foreseeable need for that currency in the remaining months of the calendar year; when accepting national currencies the Director-General, in consultation with the Member State concerned, shall determine that part of the contribution which can be accepted in the national currency, taking into account any amounts requested for payment of UNESCO Coupons; the Member State concerned must make a global proposal in that case; in order to ensure that contributions paid in national currencies will be usable by the Organization, the Director-General is authorized to fix a time limit for payment, in consultation with the Member State concerned, after which contributions would become payable in the currencies mentioned in paragraph 1 above; acceptance of currencies other than the United States dollar or the euro is subject to the following conditions: (i) (ii) currencies so accepted must be usable, without further negotiation, within the exchange regulations of the country concerned, for meeting all expenditure incurred by UNESCO within that country; the rate of exchange to be applied shall be the most favourable rate which UNESCO can obtain for the conversion of the currency in question into United States dollars at the date at which the contribution is credited to a bank account of the Organization; after translation into United States dollars, credit shall be given against contributions for 2004-2005 where appropriate in proportion to the amounts assessed in United States dollars and euros, in the manner specified in paragraph 1 above; (iii) if, at any time within the 12 months following the payment of a contribution in a currency other than the United States dollar or the euro, there should occur a reduction in the exchange value or a devaluation of such currency in terms of United States dollars, the Member State concerned may be required, upon notification, to make an adjustment payment to cover the exchange loss pertaining to the unspent balance of the contribution; to the extent that the Director-General considers that there is a foreseeable need for that currency in the remaining months of the calendar year, he is authorized to accept the adjustment payment in the national currency of the Member State;

32 C/36 Add.2 page 5 (iv) if, at any time within the 12 months following the payment of a contribution in a currency other than the United States dollar or the euro, there should occur an increase in the exchange value or a revaluation of such currency in terms of United States dollars, the Member State concerned may require the Director-General, upon notification, to make an adjustment payment to cover the exchange gain pertaining to the unspent balance of the contribution; such adjustment payments will be made in the national currency of the Member State; 3. Resolves further that any differences due to variations in the rates of exchange not exceeding $100 relating to the last payment against contributions due for the biennium in question, shall be posted to exchange profit and loss account.

32 C/36 Add.2 Annex ANNEX Amount that each Member State would pay if the 2004-2005 scale derived from the United Nations Report of the Committee on Contributions, 63rd session, June 2003, and the proposed budget ceiling were adopted. UNESCO SCALE FOR DERIVED FROM THE UNITED NATIONS REPORT OF THE COMMITTEE ON CONTRIBUTIONS, 63rd SESSION, JUNE 2003 Member State United Nations scale UNESCO scale Amount in US $ Afghanistan 0,002 0,002 12 200 Albania 0,005 0,005 30 500 Algeria 0,076 0,077 469 700 Andorra 0,005 0,005 30 500 Angola 0,001 0,001 6 100 Antigua and Barbuda 0,003 0,003 18 300 Argentina 0,964 0,969 5 910 900 Armenia 0,002 0,002 12 200 Australia 1,606 1,615 9 851 500 Austria 0,867 0,872 5 319 200 Azerbaijan 0,005 0,005 30 500 Bahamas 0,013 0,013 79 300 Bahrain 0,030 0,030 183 000 Bangladesh 0,010 0,010 61 000 Barbados 0,010 0,010 61 000 Belarus 0,018 0,018 109 800 Belgium 1,078 1,084 6 612 400 Belize 0,001 0,001 6 100 Benin 0,002 0,002 12 200 Bhutan 0,001 0,001 6 100 Bolivia 0,009 0,009 54 900 Bosnia and Herzegovina 0,003 0,003 18 300 Botswana 0,012 0,012 73 200 Brazil 1,534 1,543 9 412 300 Bulgaria 0,017 0,017 103 700 Burkina Faso 0,002 0,002 12 200 Burundi 0,001 0,001 6 100 Cambodia 0,002 0,002 12 200 Cameroon 0,008 0,008 48 800 Canada 2,837 2,854 17 409 400 Cape Verde 0,002 0,002 12 200 Central African Republic 0,001 0,001 6 100 Chad 0,001 0,001 6 100 Chile 0,225 0,226 1 378 600 China 2,070 2,082 12 700 200

32 C/36 Add.2 Annex page 2 Member State United Nations scale UNESCO scale Amount in US $ Colombia 0,156 0,157 957 700 Comoros 0,001 0,001 6 100 Congo 0,001 0,001 6 100 Cook Islands 0,001 0,001 6 100 Costa Rica 0,039 0,039 237 900 Côte d'ivoire 0,010 0,010 61 000 Croatia 0,038 0,038 231 800 Cuba 0,043 0,043 262 300 Cyprus 0,039 0,039 237 900 Czech Republic 0,184 0,185 1 128 500 Democratic People s Republic of Korea 0,010 0,010 61 000 Democratic Republic of the Congo 0,003 0,003 18 300 Denmark 0,724 0,728 4 440 800 Djibouti 0,001 0,001 6 100 Dominica 0,001 0,001 6 100 Dominican Republic 0,035 0,035 213 500 Ecuador 0,019 0,019 115 900 Egypt 0,120 0,122 744 200 El Salvador 0,022 0,022 134 200 Equatorial Guinea 0,002 0,002 12 200 Eritrea 0,001 0,001 6 100 Estonia 0,012 0,012 73 200 Ethiopia 0,004 0,004 24 400 Fiji 0,004 0,004 24 400 Finland 0,535 0,538 3 281 800 France 6,080 6,115 37 301 500 Gabon 0,009 0,009 54 900 Gambia 0,001 0,001 6 100 Georgia 0,003 0,003 18 300 Germany 8,733 8,781 53 564 100 Ghana 0,004 0,004 24 400 Greece 0,534 0,537 3 275 700 Grenada 0,001 0,001 6 100 Guatemala 0,030 0,030 183 000 Guinea 0,003 0,003 18 300 Guinea-Bissau 0,001 0,001 6 100 Guyana 0,001 0,001 6 100 Haiti 0,003 0,003 18 300 Honduras 0,005 0,005 30 500 Hungary 0,127 0,128 780 800

32 C/36 Add.2 Annex page 3 Member State United Nations scale UNESCO scale Amount in US $ Iceland 0,034 0,034 207 400 India 0,424 0,426 2 598 600 Indonesia 0,143 0,144 878 400 Iran, Islamic Republic of 0,158 0,159 969 900 Iraq 0,016 0,016 97 600 Ireland 0,353 0,355 2 165 500 Israel 0,471 0,474 2 891 400 Italy 4,926 4,953 30 213 300 Jamaica 0,015 0,015 91 500 Japan 19,629 19,738 120 401 800 Jordan 0,011 0,011 67 100 Kazakhstan 0,025 0,025 152 500 Kenya 0,009 0,009 54 900 Kiribati 0,001 0,001 6 100 Kuwait 0,163 0,164 1 000 400 Kyrgyzstan 0,001 0,001 6 100 Lao People s Democratic Republic 0,001 0,001 6 100 Latvia 0,015 0,015 91 500 Lebanon 0,044 0,044 268 400 Lesotho 0,001 0,001 6 100 Liberia 0,001 0,001 6 100 Libyan Arab Jamahiriya 0,133 0,134 817 400 Lithuania 0,024 0,024 146 400 Luxembourg 0,078 0,078 475 800 Madagascar 0,003 0,003 18 300 Malawi 0,001 0,001 6 100 Malaysia 0,205 0,206 1 256 600 Maldives 0,001 0,001 6 100 Mali 0,002 0,002 12 200 Malta 0,014 0,014 85 400 Marshall Islands 0,001 0,001 6 100 Mauritania 0,001 0,001 6 100 Mauritius 0,011 0,011 67 100 Mexico 1,899 1,910 11 651 000 Micronesia 0,001 0,001 6 100 Monaco 0,003 0,003 18 300 Mongolia 0,001 0,001 6 100 Morocco 0,047 0,047 286 700 Mozambique 0,002 0,002 12 200 Myanmar 0,010 0,010 61 000

32 C/36 Add.2 Annex page 4 Member State United Nations scale UNESCO scale Amount in US $ Namibia 0,006 0,006 36 600 Nauru 0,001 0,001 6 100 Nepal 0,004 0,004 24 400 Netherlands 1,695 1,704 10 394 400 New Zealand 0,223 0,224 1 366 400 Nicaragua 0,001 0,001 6 100 Niger 0,001 0,001 6 100 Nigeria 0,043 0,043 262 300 Niue 0,001 0,001 6 100 Norway 0,685 0,689 4 202 900 Oman 0,071 0,071 433 100 Pakistan 0,056 0,056 341 600 Palau 0,001 0,001 6 100 Panama 0,019 0,019 115 900 Papua New Guinea 0,003 0,003 18 300 Paraguay 0,012 0,012 73 200 Peru 0,093 0,094 573 400 Philippines 0,096 0,097 591 700 Poland 0,464 0,467 2 848 700 Portugal 0,474 0,477 2 909 700 Qatar 0,064 0,064 390 400 Republic of Korea 1,808 1,818 11 089 800 Republic of Moldova 0,001 0,001 6 100 Romania 0,061 0,061 372 100 Russian Federation 0,466 0,469 2 860 900 Rwanda 0,001 0,001 6 100 Saint Kitts and Nevis 0,001 0,001 6 100 Saint Lucia 0,002 0,002 12 200 St. Vincent and Grenadines 0,001 0,001 6 100 Samoa 0,001 0,001 6 100 San Marino 0,003 0,003 18 300 Sao Tome and Principe 0,001 0,001 6 100 Saudi Arabia 0,719 0,723 4 410 300 Senegal 0,005 0,005 30 500 Serbia and Motenegro 0,019 0,019 115 900 Seychelles 0,002 0,002 12 200 Sierra Leone 0,001 0,001 6 100 Slovakia 0,051 0,051 311 100 Slovenia 0,083 0,083 506 300 Solomon Islands 0,001 0,001 6 100

32 C/36 Add.2 Annex page 5 Member State United Nations scale UNESCO scale Amount in US $ Somalia 0,001 0,001 6 100 South Africa 0,294 0,296 1 805 600 Spain 2,520 2,534 15 457 400 Sri Lanka 0,017 0,017 103 700 Sudan 0,008 0,008 48 800 Suriname 0,001 0,001 6 100 Swaziland 0,002 0,002 12 200 Sweden 1,001 1,007 6 142 700 Switzerland 1,207 1,214 7 405 400 Syrian Arab Republic 0,038 0,038 231 800 Taijikistan 0,001 0,001 6 100 Thailand 0,211 0,212 1 293 200 The former Yugoslav Rep.of Macedonia 0,006 0,006 36 600 Timor-Leste 0,001 0,001 6 100 Togo 0,001 0,001 6 100 Tonga 0,001 0,001 6 100 Trinidad and Tobago 0,027 0,027 164 700 Tunisia 0,032 0,032 195 200 Turkey 0,376 0,378 2 305 800 Turkmenistan 0,005 0,005 30 500 Tuvalu 0,001 0,001 6 100 Uganda 0,006 0,006 36 600 Ukraine 0,040 0,040 244 000 United Arab Emirates 0,237 0,238 1 451 800 United Kingdom 6,178 6,212 37 893 200 United Republic of Tanzania 0,006 0,006 36 600 United States of America 22,000 22,000 134 200 000 Uruguay 0,048 0,048 292 800 Uzbekistan 0,014 0,014 85 400 Vanuatu 0,001 0,001 6 100 Venezuela 0,173 0,174 1 061 400 Viet Nam 0,021 0,021 128 100 Yemen 0,006 0,006 36 600 Zambia 0,002 0,002 12 200 Zimbabwe 0,007 0,007 42 700 Total 99,571 100,000 610 000 000