U.N. research shows that the gap between rich and poor countries is widening even more as many governments’ agreements from last year—such as reforming the major global financial institutions—remain unfulfilled.
In advance of next week’s spring meetings in Washington of the World Bank and the International Monetary Fund, the two major international financial organizations that support economic growth, the report evaluating the blueprint adopted in Seville, Spain, last June to close the gap and accomplish the U.N. development goals for 2030 was released.
The Iran war has now clouded the view for the global economy, according to Kristalina Georgieva, the managing director of the IMF, who stated that the organization had been ready to upgrade global growth.
The U.N. undersecretary-general for economic and social affairs, Li Junhua, claimed that the geopolitical unrest was making it harder for developing nations to get funding.
“As geopolitical factors are increasingly influencing economic relations and financial policies, this is a very dangerous time for international cooperation,” he stated.
Rising trade barriers and recurring climate-related shocks were identified by the research as contributing factors to the widening disparity.
The Seville Commitment, which aimed to close the $4 trillion yearly finance gap for development, was unanimously approved by the leaders of many countries, but not the United States, during the meeting held in Seville last year.
It demanded revamping the global financial system, including the World Bank and IMF, and increasing investments in developing nations.
The World Bank has failed in its mission, particularly during the COVID-19 pandemic, leaving dozens of countries deeply indebted, and the IMF has benefited rich countries rather than poor ones, according to U.N. Secretary-General António Guterres, who has repeatedly called for significant changes to both organizations.
His arguments are similar to those of external critics who point to developing nations’ dissatisfaction with the United States and its European allies controlling financial institution decision-making.
The Seville Commitment is “the best hope” to reduce the growing financial disparity, according to the U.N. report on its implementation.
However, according to Li, 25 nations reduced their development aid to less developed nations in 2025, resulting in a 23% overall decline from 2024, the biggest annual shrinkage on record. According to him, the United States had the largest reduction, at 59%.
Li stated that a further 5.8% reduction is anticipated in 2026 based on preliminary statistics.
According to the report, developing nations have been significantly impacted by tariffs, particularly those imposed by the Trump administration.
The average tariffs on exports from the world’s poorest countries jumped from 9% to 28% in 2025, while average tariffs for emerging countries—aside from China—rose from 2% to 19%.
