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Foreign Policy Watch: India-United States

With US withdrawing from multilateralism, India has both risks and opportunities

Introduction

The United Nations (UN) was envisioned in 1945 as the cornerstone of a rules-based global order. Yet, 80 years later, it faces one of its gravest challenges. US President Donald Trump’s second term has unleashed a sweeping retreat from multilateralism, leaving the UN structurally weakened and financially strained. His push for sovereignty-driven unilateralism, withdrawal from critical agreements and institutions, and deep funding cuts have left a vacuum increasingly filled by China. For India, this turbulence is both a threat and an opportunity to shape a new multilateralism.

Trump’s Shift from Multilateralism to Unilateralism

  1. America First Doctrine: Trump has framed sovereignty as the fundamental principle of international relations, rejecting supra-nationalism.
  2. UN Critique: He claims to have done “a better job than the UN Security Council” in maintaining peace, boasting of “ending seven wars” within eight months of his second term.
  3. First-term precedent: Withdrawals from the Paris Agreement, UNESCO, Human Rights Council, Iran Nuclear Deal signalled this trend.
  4. Second-term escalation: Guided by Project 2025 (Heritage Foundation manifesto), Trump has cut >80% of US contributions to UN operations, including peacekeeping and global health.

How is the UN Being Undermined?

  1. Massive Funding Cuts: US contributions slashed from 22% to a fraction, crippling UN’s financial base.
  2. Institutional Withdrawals: Exit from WHO, UNESCO, Human Rights Council and halting support for the Paris Agreement & Climate Loss and Damage Fund.
  3. Policy Rejection: No support for sustainable development or climate mitigation under Trump’s agenda.
  4. Domestic Politics Spillover: Appeals to his populist base that frames liberals as “war party” and paints the UN as an obstruction.

China’s Expanding Role in Global Governance

  1. Strategic Positioning: Beijing systematically places its nationals in influential leadership, technical, and administrative posts.
  2. New Initiatives: Promotes “Global Development, Global Security, Global Civilisation, Global Governance” — aligned with the Belt and Road Initiative (BRI).
  3. Funding Power: Contributes around $680 million (~20% of UN budget), second only to the US.
  4. Outcome: While not yet supplanting US dominance, Chinese activism is making Beijing an indispensable player.

Decline of Multilateralism: A Structural Problem

  1. Historical High Point: Around 2000 with WTO launch & Millennium Development Goals.
  2. Erosion Factors: Populist nationalism, US-China rivalry, US-Russia vetoes paralyzing UNSC, and transatlantic divisions.
  3. Current Paralysis: Even humanitarian crises are stalled by veto politics.
  4. Reform Blockage: Calls for UNSC expansion remain frozen, while agencies face financial crisis and inefficiencies.

India’s Opportunities and Responsibilities

  1. Financial Contribution Gap: India contributes $38 million (<1%), far below its stature as the world’s 4th largest economy.
  2. Comparative Figures: US: $820 million (22%), China: $680 million (20%).
  3. Strategic Priorities: Instead of old demands (like UNSC expansion), India should focus on:
    1. AI governance
    2. North-South coalitions
    3. UN reforms for efficiency
  4. Moral Leadership: As a long-standing Global South champion, India must pay more and lead more to shape new rules.

Conclusion

The UN at 80 stands fragile, buffeted by American retreat and Chinese ambition. Trump’s second-term disruption has turned long-standing weaknesses into systemic crises. Yet, neither the US nor China enjoys universal legitimacy. For India, the moment is decisive: it can no longer lament but must shoulder the responsibility of building a multilateralism that works in an age of rivalry and rapid change.

PYQ Relevance

[UPSC 2019] Too little cash, too much politics, leaves UNESCO fighting for life. Discuss the statement in the light of US’ withdrawal and its accusation of the cultural body as being ‘anti-Israel bias’.

Linkage: It highlights how US funding withdrawal and political accusations cripple UN agencies like UNESCO, leaving them under-resourced and delegitimised. Similarly, Trump’s second-term cuts — over 80% reduction in US contributions and exits from WHO, UNESCO, HRC — show how financial muscle and politics erode multilateral institutions.

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