A new United Nations report warns that the divide between wealthy and poorer nations is continuing to widen, largely because key reforms and commitments made last year have not been carried out.
The report evaluates progress on an agreement reached in Seville, Spain, aimed at reducing global inequality and meeting the U.N.’s 2030 development goals. It was released ahead of the upcoming spring meetings of the International Monetary Fund and the World Bank in Washington.
According to IMF Managing Director Kristalina Georgieva, earlier expectations for stronger global economic growth have been overshadowed by the ongoing Iran conflict, which has weakened the global outlook. U.N. official Li Junhua also highlighted that rising geopolitical tensions are making it harder for developing countries to secure financial support.
Additional challenges such as increasing trade restrictions and frequent climate-related disasters are further deepening the inequality gap, the report noted.
At the Seville conference last year, most countries—excluding the United States—approved a plan known as the Seville Commitment. This initiative aimed to address a $4 trillion annual funding shortfall for development by boosting investment in poorer nations and reforming global financial systems, including the IMF and World Bank.
U.N. Secretary-General António Guterres has repeatedly criticized these institutions, arguing they disproportionately benefit wealthy nations and have failed to adequately support poorer countries, especially during the COVID-19 pandemic.
Despite being seen as a key solution, progress on the Seville Commitment has been limited. In 2025, 25 countries reduced their financial aid to developing nations, causing a record 23% drop compared to the previous year. The United States accounted for the largest cut, reducing its assistance by 59%. Further declines are expected in 2026.
The report also emphasized the impact of rising tariffs, including those introduced during the Trump administration. These measures have significantly affected poorer nations, with export tariffs rising sharply—from 9% to 28% for the poorest countries—and also increasing notably for other developing economies.