Policy Brief No.230: America's Retreat and the Future of Economic Multilateralism

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This policy brief discusses the systematic retreat of the United States from multilateral institutions which threatens global economic reform, coinciding with China's construction of alternative frameworks and rising great-power bilateralism. This leads to a growing incapacity for shared solutions on development finance, climate action, and tax coordination. The analysis identifies three strategic pathways—institutional evolution, adaptive pluralism, and functional cooperation—to preserve multilateral effectiveness. Success depends on recognising structural power shifts, redefining legitimacy through performance, and rebuilding trust by delivering economic justice. Without credible multilateral reform, global systems face cascading failures including debt crises, proliferating tax havens, and inadequate climate adaptation funding. The moment demands bold, inclusive reform or risks a return to systemic economic instability.