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UN report says aid cuts led to global development slowdown

Shakeel Sobhan AFP, epd
May 6, 2025

Iceland topped the Human Development Index ranking, with Germany at fifth place. The report warned that aid reduction under US President Donald Trump would have far-reaching consequences for developing nations.

A file photo of a child laborer's hands
Of all regions, South Asia and sub-Saharan Africa saw the least amount of developmentImage: Kevin Frayer/AP Photo/picture alliance

The progress in global development slowed in 2024, raising concerns that the gains in recent years may be slipping, according to a new UN report released on Tuesday.

The annual Human Development Index (HDI) report by the United Nations Development Programme (UNDP) said that despite the rebound seen after the COVID-19 pandemic by 2023, the recovery is now losing momentum — with life expectancy and income growth stalling and the number of ongoing conflicts rising.

UNDP chief Achim Steiner warned that this "unsettling" slowdown can cause human development to "slip by decades — making our world less secure, more divided, and more vulnerable to economic and ecological shocks."

Steiner said that recent cuts to international aid by several countries, led by the United States under President Donald Trump, will only serve to make ramifications more severe.

AI access limited in poorer countries

The report heralded the age of artificial intelligence (AI) saying it offers hope for revitalizing development, but cautioned that its benefits must be equitably shared to avoid deepening divides.

It noted that access to AI is limited in poorer countries compared to wealthier ones, and cultural biases may shape how the technology is designed.

"High-income countries such as the United States, the Republic of Korea, Japan and Germany, in that order, have well-established digital infrastructures, giving them a major advantage in AI development," it said, highlighting that the most global investment in AI flowed to the US in 2024, constituting 70.2%.

"If we fail to address the injustices and divides that persist today, AI will only entrench them further," Steiner said.

Iceland on top, Germany fifth in rankings

On the HDI ranking, while Iceland and Norway topped the list, Germany and Sweden shared fifth place.

The US ranked 17th, just below Canada. India and Bangladesh were tied at 130th, with Pakistan at rank 168. Chad, the Central African Republic, Somalia, and South Sudan occupied the last spots, ranking 190th to 193rd.

Of all regions, South Asia and sub-Saharan Africa saw the least amount of development, according to the report which assesses progress in three core areas: health and longevity, knowledge, and standard of living.

Davos: Head of UNDP: Debt poses dramatic risk

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Edited by: Elizabeth Schumacher

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