A United Nations report has found that the gap between rich and poor nations is widening, as many countries have failed to fulfill promises made last year to overhaul major global financial institutions and scale up investments in developing countries [1]. The report, released ahead of the upcoming spring meetings of the International Monetary Fund (IMF) and World Bank in Washington, assesses the progress on the blueprint adopted in Seville, Spain, last June, which aimed to close a $4 trillion annual financing gap for development and reform the international financial architecture [1].
The managing director of the IMF, Kristalina Georgieva, noted that while the IMF had been prepared to upgrade global growth, the Iran war has now darkened the outlook for the world economy [1]. Li Junhua, the U.N. undersecretary-general for economic and social affairs, highlighted that geopolitical tensions are compounding the struggles of developing countries to attract financing, stating, “This is an extremely perilous time for international cooperation, as geopolitical considerations are increasingly shaping economic relations and financial policies” [1].
The report also points to rising trade barriers and repeated climate-related shocks as factors exacerbating the gap. Tariffs, including those imposed by the Trump administration, have significantly impacted developing countries, with average tariffs on exports from the world’s poorest nations surging from 9% to 28% in 2025, and for developing countries (excluding China), average tariffs increased from 2% to an unspecified level [1].
Development assistance to poorer countries has seen a sharp decline, with 25 countries reducing their aid in 2025, resulting in a 23% overall drop from 2024—the largest annual contraction on record. The United States accounted for the biggest decline, with a 59% reduction in development assistance [1]. Preliminary data suggests a further decline of 5.8% is expected in 2026 [1]. U.N. Secretary-General António Guterres has repeatedly criticized the IMF and World Bank for benefiting rich countries and failing their mission during crises such as the COVID-19 pandemic, echoing frustrations from developing nations over the dominance of the U.S. and its European allies in decision-making at these institutions [1].
The U.N. report asserts that implementing the Seville Commitment represents “the best hope” to close the widening financial gap, but progress remains slow and the outlook is increasingly uncertain due to geopolitical and economic challenges [1].
CONCLUSION
The UN report underscores a growing divide between wealthy and poorer nations, driven by unfulfilled reform promises, rising tariffs, and declining development assistance. With the outlook for global growth darkened by geopolitical tensions and reduced aid, the market implications are significant, especially for developing economies. The report calls for urgent action to implement the Seville Commitment and reform international financial institutions to address these challenges.