The gap between rich and poor nations is growing even wider as actions agreed to by many countries last year, including overhauling the major global financial institutions, remain unfulfilled promises, a U.N. report concludes.
The report assessing the blueprint adopted in Seville, Spain, last June to narrow the gap and achieve U.N. development goals for 2030 was issued ahead of next week’s spring meetings in Washington of the International Monetary Fund and the World Bank, the main global financial institutions promoting economic growth.
The managing director of the IMF, Kristalina Georgieva, said it had been prepared to upgrade global growth, but the Iran war has now darkened the outlook for the world economy.
Li Junhua, the U.N. undersecretary-general for economic and social affairs, said the geopolitical tensions were compounding the struggles of developing countries to attract financing. “This is an extremely perilous time for international cooperation, as geopolitical considerations are increasingly shaping economic relations and financial policies,” he said.
The report pointed to rising trade barriers and repeated climate-related shocks as also adding to the growing gap.
At last year’s conference in Seville, the leaders of many of the world’s nations, but not the United States, unanimously adopted the Seville Commitment, which was aimed at closing the $4 trillion annual financing gap for development. It called for scaling up investments in developing countries and reforming the international financial architecture, including the World Bank and IMF.
U.N. Secretary-General António Guterres has repeatedly called for major changes to the two institutions, saying the IMF has benefited rich countries instead of poor ones, and the World Bank has failed in its mission, especially during the COVID-19 pandemic, which left dozens of countries deeply indebted.
His criticisms echo those of outside critics who cite frustration in developing countries with the U.S. and its European allies dominating decision-making at financial institutions.
The U.N. report on implementing the Seville Commitment said it represents “the best hope” to close the widening financial gap.
But in 2025, Li said 25 countries decreased their development assistance to poorer countries, leading to a 23% overall drop from 2024, the largest annual contraction on record. The biggest decline — 59% — was from the United States, he said.
Based on preliminary data, Li said, a further decline of 5.8% is expected in 2026.
The report said tariffs — including those imposed by the Trump administration — have had a major impact on developing countries. Average tariffs on exports from the world’s poorest nations surged from 9% to 28% in 2025, the report said, and for developing countries, excluding China, average tariffs increased from 2% to 19%.
Source: AP
--Agencies
