By Javier Surasky
Can you imagine the city of Geneva without the United Nations—or even with its presence reduced to a bare minimum? Anyone who has visited the city would likely say no. The Swiss government certainly wouldn’t.
On June 20,
2025, the Swiss government announced a
funding package of just over USD 301 million, to be disbursed
between 2025 and 2029, in support of Geneva’s international character.
Beyond the
many reasons to welcome this move, the package includes an immediate allocation
of approximately USD 24 million to support the more than 40 UN
agencies operating in the city. Around these agencies orbit 180
diplomatic missions and a vast number of NGOs.
As part of
the funding package, nearly USD 80 million will go toward renovating
UN-owned buildings in Geneva, to be granted as interest-free loans
with a 50-year repayment term.
This
support complements an earlier initiative jointly launched by Geneva’s Grand
Council and the Hans Wilsdorf
Foundation (Rolex),
which allocated USD 56 million, and is accompanied by a request to the
Swiss Parliament to approve a further USD 146 million for 2026–2029,
along with special loans for the upkeep and maintenance of UN
headquarters and agencies in the city.
Why are
Switzerland and Geneva willing to make such an investment? The answer is
self-interest, though that does not detract from the initiative’s value for
multilateralism.
International
organizations in Geneva employ approximately 33,000 people, in addition to
another 4,000 working for NGOs. Collectively, these workers inject nearly USD 7.8 billion into the
national economy each year, about
9% of Geneva’s GDP, making them a vital engine of economic
activity and a major source of tax revenue.
Geneva’s
international status makes it the venue for thousands of international
conferences annually, over 3,000 in some years, which has a direct impact on
service industries, attracting visitors and generating demand in sectors such
as hospitality, gastronomy, and retail. Not just these industries, but also the
production chains behind them, would suffer significant losses if the UN were
to leave the city.
Moreover,
the Fondation pour Genève noted in its 2024 Study on the
Impact of the International Sector in Geneva that the UN, NGOs, diplomatic
missions, and multinational corporations generate about 150,000 jobs,
accounting for 37% of cantonal employment. The study estimates that each
job in the international sector creates an additional 0.25 local service
jobs.
One
particularly noteworthy aspect is the fiscal return. International
organizations spend nearly USD 7 billion annually, with over half of
this amount remaining in Switzerland in the form of salaries, insurance
contracts, and other expenses, contributing an additional 11% to Geneva’s
GDP.
On the
geopolitical front, Geneva’s international status gives
Switzerland influence well “above its weight”, and combined with the
country’s neutrality, this has made it the venue of choice for events such as
the 2021 Biden–Putin summit. In practice, today’s Geneva gives Switzerland direct
access to global leaders and decision-makers.
Well-managed
and coherent internationalism pays off. Switzerland’s decision to release funding at
a time of UN financial distress is not only good news—it also underscores how UN80 has been little more than a hurried
rescue plan, failing even to explore incentives on the ground to strengthen and
stabilize the UN. Did Guterres really think Germany, Austria, Kenya, Qatar, and
Rwanda were exploring the possibility of hosting departing institutions from
Geneva purely out of love for multilateralism?
Somewhere, Woodrow
Wilson is smirking.