UNITED NATIONS (AP) — Economic inequality between wealthy and developing nations continues to expand as international commitments made in 2024 to transform major global financial systems remain unmet, according to a new United Nations assessment.
The evaluation examines progress on a framework established in Seville, Spain last June designed to reduce global inequality and meet UN sustainable development targets by 2030. The findings were released before upcoming spring conferences in Washington featuring the International Monetary Fund and World Bank, the primary international organizations focused on promoting economic development.
IMF Managing Director Kristalina Georgieva indicated the organization was ready to enhance global economic growth, but noted that the Iran conflict has created uncertainty for worldwide economic prospects.
UN Undersecretary-General for Economic and Social Affairs Li Junhua explained that international tensions are making it harder for developing nations to secure necessary funding. “This is an extremely perilous time for international cooperation, as geopolitical considerations are increasingly shaping economic relations and financial policies,” he said.
The assessment identified increasing trade restrictions and recurring climate disasters as additional factors contributing to the expanding inequality.
During last year’s Seville conference, leaders from numerous countries worldwide, excluding the United States, unanimously approved the Seville Commitment targeting the closure of a $4 trillion yearly development funding shortfall. The agreement emphasized expanding investment in developing nations and restructuring international financial frameworks, including the World Bank and IMF.
UN Secretary-General António Guterres has consistently advocated for significant reforms to both organizations, arguing that the IMF has favored wealthy nations over impoverished ones, while the World Bank has fallen short of its mission, particularly throughout the COVID-19 crisis that left many countries with substantial debt burdens. His concerns mirror those of external observers who point to developing nation frustration with U.S. and European control over financial institution decision-making.
The UN assessment of Seville Commitment progress describes it as “the best hope” for addressing the expanding financial disparity.
However, Li reported that 25 countries reduced their development aid to poorer nations in 2025, resulting in an overall 23% decrease from 2024, marking the steepest annual reduction ever recorded. The most significant cut came from the United States at 59%, he noted.
Using preliminary information, Li projected an additional 5.8% decline expected in 2026.
The assessment highlighted how tariffs, including those implemented during the Trump presidency, have significantly affected developing countries. Average tariffs on goods exported from the world’s most impoverished nations jumped from 9% to 28% in 2025, while developing countries excluding China saw average tariffs rise from 2% to 19%.
