The External Affairs Minister (EAM) called for stronger multilateralism in an increasingly multipolar world.

• A multipolar world refers to a global system where power is distributed among multiple influential states or blocs.

What is Multilateralism?

• Multilateralism is the practice of three or more states coordinating national policies to address common challenges.
  • It differs from unilateralism, where a state acts alone in its national interest.
  • It also differs from bilateralism, which involves cooperation between only two countries.
• Modern multilateralism emerged after World War II.
• It developed through institutions such as the United Nations (UN).
• Other key multilateral institutions include the World Bank, International Monetary Fund (IMF), and World Trade Organization (WTO).

Significance of Multilateralism

• Multilateralism creates global standards that enable modern life.
  • These standards support telecommunications systems worldwide.
• Multilateral rules also govern international aviation safety and coordination.
• Emerging areas like Artificial Intelligence (AI) governance increasingly rely on multilateral frameworks.
• Multilateralism helps maintain international peace and security.
  • It achieves this through conflict prevention mechanisms.
  • It also operates through peacekeeping operations.
• Arms control agreements are another key multilateral function.
• Multilateral institutions are widely credited with preventing a third world war during the Cold War.
• Multilateralism provides effective mechanisms for delivering global public goods.
  • Global public goods include climate change mitigation, pandemic response, and economic stability.
• Unregulated AI technologies are also addressed through multilateral cooperation.
• Multilateralism underpins globalisation.
• It supports poverty reduction through open trade and stable monetary systems.

Crisis in Multilateralism

• Great-power rivalry among the United States, China, and Russia has weakened multilateral cooperation.
  • This rivalry has paralysed decision-making in bodies like the UN Security Council.
  • The rivalry risks splitting global governance into competing geopolitical blocs.
• Many multilateral institutions are structurally outdated.
• The UN Security Council over-represents European countries.
• The Council under-represents the Global South, which includes developing regions of Asia, Africa, and Latin America.
• This imbalance creates a legitimacy deficit in global governance.
• Unilateralism and protectionism by the United States have further eroded trust.
  • Examples include “America First” policies.
• Tariff wars have disrupted multilateral trade systems.
• Withdrawals from agreements such as the Paris Climate Accord have weakened collective action.
• In response, alternative multilateral blocs are emerging.
  • These include BRICS and the Shanghai Cooperation Organisation (SCO).
  • These groupings aim to promote a fairer and more democratic multipolar order.
  • They also seek to amplify the voice of developing countries.

Way Forward for Multilateralism

• The EAM emphasised the need for networked multilateralism.
  • Networked multilateralism involves closer cooperation between the UN and regional organisations.
  • Examples of such regional bodies include the European Union (EU).
  • Another example is the African Union (AU).
• Greater coordination is also needed with international financial institutions.
• The approach calls for multi-stakeholder participation.
  • Multi-stakeholder models include civil society organisations.
  • They also include the private sector.
  • Transnational humanitarian networks, such as the Red Cross and Red Crescent, are cited as models.
• The EAM called for a “new Bretton Woods” moment.
  • Bretton Woods institutions originally shaped post-war global finance.
  • A new Bretton Woods approach would involve comprehensive institutional reform.
• Such reform should address digital trade governance.
• It should also tackle AI safety challenges.
• Climate finance must be scaled up through reformed global mechanisms.
• The approach should move beyond incremental or piecemeal reforms.
• The EAM emphasised postcolonial rebalancing of global governance.
  • Postcolonial rebalancing seeks to correct historical inequities from colonial-era power structures.
• True multipolarity requires deeper multilateralism.
  • Deeper multilateralism must be rooted in mutual respect and cultural diversity.
  • This process would complete the unfinished agenda of decolonisation in global institutions.