Discuss the implications of the withdrawal of the United States from several multilateral institutions for the global order. How does it impact India’s strategic interests? (15M, 250 Words)

The recent decision of the United States to withdraw from multiple multilateral institutions, including the UN Framework Convention on Climate Change, World Health Organization, and International Solar Alliance signals a shift from cooperative multilateralism to a transactional, interest-driven foreign policy.

Implications for the Global Order:

1. Erosion of Multilateralism: US withdrawal weakens the legitimacy and effectiveness of institutions like the United Nations, shifting global governance towards unilateral and transactional diplomacy.
2. Power Rebalancing: Reduced US funding and engagement create vacuums increasingly filled by China, especially in UN agencies and development finance bodies.
3. Setback to Global Climate Action: Exit from the UN Framework Convention on Climate Change undermines collective mitigation, finance, and rule-making on carbon markets and loss & damage.
4. Fragmentation of Global Norms: Divergent standards may emerge across health, labour, digital governance, and environment as consensus-based rule-making weakens.
5. Stress on Global Public Goods: Funding cuts impair delivery of health, humanitarian aid, and education affecting bodies like the World Health Organization and UNFPA raising risks of transnational crises.
6. Precedent for Selective Exit: US actions may legitimise similar exits by other states, accelerating institutional fragility and “forum shopping” in global governance.

Impact on India’s Strategic Interests:

Challenges for India:

1. Weakening of Development Finance: US exit from climate bodies reduces funding and credibility of institutions, constraining resources for India’s energy transition and adaptation needs.
2. Erosion of Rules-Based Global Order: Retreat from multilateralism undermines norm-setting and dispute-resolution mechanisms, increasing uncertainty for India in trade, climate, and security governance.
3. Vacuum Filled by China: Reduced US engagement enables China to expand influence in UN bodies and standards-setting forums, potentially skewing rules against India’s interests.
4. Setback to India-led Initiatives: US withdrawal from platforms like the International Solar Alliance weakens momentum, funding, and global buy-in for India’s flagship diplomatic initiatives.

Opportunities for India:

1. Leadership in Climate Governance: India can position itself as a credible leader bridging developed–developing divides, shaping equitable climate finance and sustainable development norms.
2. Agenda-Setting in Vacated Institutions: Reduced US presence opens space for India to influence priorities in renewable energy, digital public goods, health, and development cooperation.
3. Strengthening South–South Cooperation: India can deepen partnerships across Africa, Asia, and Latin America, leveraging its development experience and low-cost technology solutions.
4. Enhancing Strategic Autonomy: The shift incentivises India to diversify partnerships such as EU, Japan, and middle powers and assert independent multilateral diplomacy.

Conclusion:

As the global order shifts from US-led multilateralism to contested governance, India’s credibility, demographic weight, and reformist agenda place it in a unique position to shape a more representative and resilient international system.

‘+1’ Value Addition:

• After the US exit, India remains the largest driver of the International Solar Alliance (ISA), which has mobilised projects across 100+ tropical countries.
• G20 New Delhi Declaration, 2023: India successfully brokered consensus demonstrating its ability to deliver multilateral outcomes even amid geopolitical fragmentation.
• The US exit from WHO created a funding shortfall exceeding USD 1 billion.
• The US withdrawal from UNFCCC-linked mechanisms weakens the USD 100 billion annual climate finance promise.

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