Global politics and the crisis of multilateralism

Solly Rakgomo | Tuesday April 22, 2025 14:22

The very fabric of international cooperation appears to be tearing, evidenced by a resurgence of geopolitical tensions, a retreat into protectionist policies, the imposition of unilateral sanctions, a worrying trend of treaty withdrawals, and the alarming use of military and economic coercion.

The post-World War II multilateral system, meticulously crafted to promote collaboration among nations, expanded rapidly to address a vast spectrum of global concerns—from economic development and international security to global health, human rights, and environmental protection. This system, manifested in institutions like the United Nations, the International Monetary Fund (IMF), and the World Trade Organisation (WTO), as well as informal gatherings like the G7 and G20, now faces a profound challenge.

Increasingly, the multilateral system is faltering, its core principles questioned, and its ability to effectively respond to contemporary crises severely diminished. This erosion of multilateralism leaves the world vulnerable to escalating conflicts and unresolved global problems, raising critical questions about the future of international governance and the prospects for a stable, cooperative world order.

While individual international bodies have experienced periods of fluctuation, the current crisis of multilateralism is distinct in its pervasive reach and severity. It permeates all areas of international cooperation at a time when globally agreed-upon rules are more vital than ever.

The breakdown of this system isn’t a mere dip; it’s a systemic failure rooted in several interconnected causes. Primarily, the legitimacy of existing governance structures has eroded. The G7-centric framework, slow to adapt to the evolving global economic landscape, has bred resentment and distrust, particularly among emerging powers. Further exacerbating this is the perceived irrelevance of the UN system and Bretton Woods institutions in tackling today’s complex challenges. Beyond these established factors, the rise of digital authoritarianism, the weaponisation of economic interdependence, and the increasing polarisation of domestic politics have also contributed significantly to the deterioration of multilateralism. The proliferation of cyber warfare, and the difficulty in regulating the vast amounts of information shared globally, has also created a scenario where trust is difficult to achieve. Additionally, the deliberate use of trade and financial leverage as tools of coercion undermines the principles of equitable cooperation. These factors, combined with the pre-existing issues, have created a perfect storm, leaving the multilateral system struggling to maintain its purpose and effectiveness.

Despite the WTO public commitment to unfettered free trade, a closer examination reveals that several of its core agreements were designed to consolidate monopolistic advantages, rather than promote equitable competition. For instance, the Agreement on Agriculture (AOA) effectively legalised the practice of developed nations, primarily the US and Europe, dumping subsidised agricultural surpluses onto developing markets. This was achieved by compelling these nations to dismantle import quotas and drastically reduce tariff barriers, thereby undermining their domestic agricultural sectors.

Similarly, the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) aimed to solidify the dominance of US corporations in high-technology sectors. By prohibiting reverse engineering and other knowledge-sharing practices vital for technological advancement in developing countries, TRIPs effectively created intellectual property monopolies. This trend extended to other crucial areas. For example, the General Agreement on Trade in Services (GATS) facilitated the liberalisation of service sectors, often leading to the dominance of multinational corporations over local providers, particularly in essential sectors like healthcare and education.

These instances demonstrate a pattern where seemingly neutral trade agreements were strategically crafted to reinforce existing power imbalances and create exclusive market access for dominant economic players, rather than fostering a truly level playing field.

The Bretton Woods institutions, namely the IMF and World Bank, are grappling with a multi-faceted crisis, encompassing policy failures, an outdated intellectual framework, and a deeply entrenched stalemate regarding governance reform. For over half a century, developing nations have tirelessly sought to persuade the dominant powers to implement even minor adjustments to the institutions’ structure, but these efforts have consistently been thwarted.

At the heart of the problem lies a stark power imbalance. The United States, possessing over 16% of the IMF’s voting power, effectively wields veto power over critical decisions. European nations collectively form the next most influential bloc. This disproportionate influence contrasts sharply with the economic realities of today’s world. For instance, the four largest BRICS economies (Brazil, Russia, India, and China), representing over 24% of global GDP, hold a mere 10% of the IMF’s voting rights. Conversely, the four largest European economies (Germany, France, the UK, and Italy), with a combined GDP share of only 13%, command nearly 18% of the vote. This glaring disparity underscores the fundamental issue; the institutions’ governance structures remain heavily skewed towards the interests of historically dominant nations, failing to reflect the shifting economic landscape and undermining the legitimacy of these critical global bodies. The UN, a linchpin of post-war multilateralism, faces a severe legitimacy crisis due to structural flaws like the Security Council’s veto power, leading to inaction on critical conflicts and humanitarian crises. It’s perceived bias towards the Global North, driven by funding dependencies and the influence of powerful donor states, undermines its neutrality.

The UN’s slow adaptation to emerging challenges like cyber warfare and disinformation, coupled with its inconsistent humanitarian responses evidenced by its relative silence on the Rohingya crisis, the ongoing conflicts in parts of Africa, and, critically, the protracted and escalating violence against Palestinians and the lack of meaningful Global South representation, erodes public trust and renders it increasingly ineffective in addressing 21st century global issues, mirroring the broader crisis of multilateralism.

The current breakdown of the liberal international order is particularly alarming because it coincides with a period demanding unprecedented global cooperation. Issues of paramount importance major conflicts, climate change, migration, economic instability, arms proliferation, and cybersecurity simply cannot be resolved through unilateral action; they necessitate a unified, multilateral response. The deepening distrust in global institutions, born from their failure to effectively address critical issues like inequality, poverty, and climate change, presents a unique opportunity. This crisis could catalyse a powerful alliance between the Global North and South, forging a revitalised multilateralism. However, realising this potential hinges on the fundamental reform of existing institutional structures and governance mechanisms. While a more diverse, adaptable, and ad-hoc multilateralism is taking shape, characterised by varying levels of commitment and transient partnerships, its long-term viability remains uncertain.