LONDON, U.K.: A new assessment of how wealthy nations contribute to global development shows a clear retreat, with many of the world's wealthiest countries cutting aid budgets, reducing engagement through multilateral lenders, and rolling back efforts intended to support poorer nations.

The findings come from the Commitment to Development Index, published every two years by the Washington-based Center for Global Development (CGD). The latest edition evaluates 38 major economies across more than 100 indicators covering development finance, migration, trade, investment, environment, health, security, and technology.

Sweden, Germany, Norway, and Finland remained at the top of the rankings. The United Kingdom climbed two places to fifth. However, the improvement reflects data collected before the UK government's 40 percent reduction in its aid budget—cuts that are expected to drag its position down in future reports.

The United States dropped two places to 28, a ranking that does not reflect billions of dollars in reductions to foreign aid announced since Donald Trump became president.

"The changes the Trump administration is making are very significant," said Ian Mitchell, a senior policy fellow at CGD, who warned that the U.S. is likely to fall further.

The index shows that two dozen wealthy countries, including the U.S. and Japan, have scaled back their development efforts. Many governments have reduced bilateral aid or shifted resources away from multilateral development banks—moves that have created yawning funding gaps in some of the world's most vulnerable regions.

One stark example is Nigeria's conflict-hit northeast, where the exit of USAID left an 87 percent funding gap for humanitarian needs. Aid workers in Borno State say the shortfall has strained food distribution and left tens of thousands of displaced people with minimal support.

The release of the index comes just ahead of the G20 summit in South Africa, where leaders of major economies will convene as South Africa prepares to hand over its presidency to the United States. Trump, who shut down USAID earlier this year and diverted foreign-aid spending toward domestic priorities and defence, will not attend the gathering—the first G20 summit ever hosted on African soil.

Aid cuts are not exclusive to the U.S. Several developed economies have redirected funds toward security and military spending amid geopolitical tensions, leaving less money available for global development and anti-poverty programs.

Despite the overall decline, CGD noted some progress in other areas. More than three-quarters of countries reduced their emissions between 2019 and 2023, even as China's emissions rose, pushing global totals higher. The index also found that more countries had taken in migrants and refugees, easing pressure on host regions.

But CGD warned that the general trend remains negative. "While some improved on migration or environment, overall the trend is backward with arms exports, trade barriers, and fossil fuel subsidies all rising," the think tank said.

With the next round of policy decisions looming at the G20, analysts say the index underscores the widening gap between rhetoric and investment, highlighting how global development is increasingly losing out to domestic political priorities in wealthy nations.