Introduction
The world after World War II saw the emergence of a world order based on multilateralism. Multilateralism refers to the working together of three or more nations towards shared goals or to solve common problems, by collaborating and compromising. This was due to the realisation that nations needed to approach each other with a humanity-first mindset, keeping the welfare of the global community on top priority, even above their individual, national interests. Globalisation, further, brought together diverse corners of the world on one platform, knitting together what we call a "global village". But in recent times, the world landscape is shifting from a multilateral to a multipolar one. With rising geopolitical tensions, trade wars, political rivalries and economic competition, multilateralism is taking a backseat in the global agenda.
Background
In current times, the world looks far from the vision that was imagined after World War II. The threads of the "global village" seem to be loosening and the multilateral world order is falling apart. Tensions are rising among nations; geopolitical rivalries play out in the economic ground through trade wars, sanctions, tariffs. Nationalist populism is on the rise. The competition between US and China to become and maintain itself as a superpower, manifesting in the geopolitical as well as economic arena is an example to understand how the world is becoming more multipolar than multilateral.
Transparency among allies is fading and national interests are negotiated over tables that were meant to have collaborative and cooperative discussions on. The failure of the UNSC in maintaining or even establishing peace and security in times of extreme conflict like in Russia-Ukraine, Israel-Palestine, Iran, Iraq, Afghanistan, Syria, and Lebanon, further shows that these institutions are unable to fulfil the purpose for which they were formed. Other institutions like the World Trade Organisation, World Bank and International Monetary Fund also were set up on rules and regulations of a long gone time and they don't accommodate the changes that have occurred in recent times. These rules hold no power in the practical realm as they are based on assumptions of a multilateral world; a world that now seems to be breaking down into small fragments of power rather than a web.
Main Argument
The whole system that was based on collaboration among nations seems to have become outdated and unable to fulfil its functions as the dynamics shift. Under such circumstances, it's easy to state that the failure or weakening of these institutions, rules and regulations, and the frameworks means the failure of multilateralism, and therefore, the only outcome is nations prioritising national economic and political welfare over global human welfare. But against this conclusion, this is the time when multilateralism needs to be held onto even more strongly than before. Instead of rejecting the concept of multilateralism itself under these adverse conditions, we need to strengthen multilateralism by modifying it, or even transforming it from its roots. We are at a moment in history that calls for a bold reimagination of multilateralism. The shifting global dynamics call for a revolution in the multilateral system that was set up after the Second World War. This does not just mean, amending rules, or introducing new ones, or changing some policies here and there. Rather, this time, instead of incremental steps, we need to question the fundamental assumptions of this multilateralism. We need to reconstruct a new multilateralism from the ground. We need to ask the question, "if we had to form a new multilateralism in the current times from the scratch, how would we do it?" We should consider the challenges that the global economy faces currently and what are the policies that could help solve them. We should not just stop at recommending new policies, but think on the institutional level, asking which institutions are alleviating the contemporary challenges and which ones are not. The institutions or the frameworks that no longer serve the modern world should be discarded, because they are nothing more than a burden on the economy in the name of saviours.
Moreover, modern-day challenges like climate change, sustainable development, etc. are global in nature and require international cooperation, instead of fragmentation.
AI and emerging technologies further act as a new playground for competition, but regulating these to protect humanity again requires working together of nations, rather than isolation.
Implications and Way Forward for India
Declining multilateralism leaves India vulnerable to protectionism, geopolitical coercion, and exclusion from global rule-making.
The retreat of the World Trade Organization (WTO) and the rise of regional bodies brings in the risk of India being sidelined from the global supply chains. Further, India is also becoming a target for rising tariffs and sanctions.
Often, decisions made by big powers like the US or China, without considering middle powers like India, cause unexpected challenges for India, undermining multilateralism.
When multilateralism falls apart, power falls in the hands of few historically powerful nations and it puts nations like India at their mercy. Therefore, strengthening multilateralism is an urgent need from India's lens.
India should diversify its trade and utilise frameworks like FTAs and advocate strongly for its representation in international platforms. It can also partner with other emerging powers like South Asian countries, Africa, Brazil etc. Bodies like the QUAD provide another platform for empowering multilateralism on different levels.
Conclusion
The multilateral economic system is under extreme pressure as international cooperation and transparent global governance mechanisms crumble in favor of a contested multipolar landscape. National interest and international cooperation need not be mutually exclusive. Especially these days when there is so much nationalistic, myopic thinking about how to run international economic policy and engage with the world, it is important to remember the words of U.S. Treasury Secretary Henry Morgenthau in his chairman's closing address at the Bretton Woods conference: "The wisest and most effective way to protect our national interests is through international cooperation."
References
Coulibaly, B. S., & Qureshi, Z. (2025, October 14). The world is changing, multilateralism must too. Brookings. https://www.brookings.edu/articles/the-world-is-changing-multilateralism-must-too/
The Global Risks Report 2026. (n.d.). World Economic Forum. https://www.weforum.org/publications/global-risks-report-2026/digest/
MP-IDSA. (2025, October 10). Is multilateralism dead? - MP-IDSA. https://idsa.in/publisher/comments/is-multilateralism-dead
*The views expressed above belong to the author(s)