Why in the news?
US President signed a presidential memorandum to cease participation in and funding for 35 non-UN organizations and 31 UN entities.
Reasons for the US withdrawal from international organizations
- Eliminating Disproportionate Financial Burdens: The administration argues that the U.S. spends billions on poorly run, mismanaged bureaucracies with little return.
- U.S. Agency for International Development (USAID) (dismantled now) was allocated $44.2 billion in the 2024 budget which accounted for nearly 42% of all humanitarian aid tracked by the UN in 2024.
- Protection of National Sovereignty: The administration argues that many of these international bodies threaten or undermine U.S. independence and seek to impose external pressures on American domestic policies.
- "America First" Policy: A shift away from multilateralism toward prioritizing national interests over international consensus.
- The U.S. withdrawal is expected to leave a 22% budget shortfall for the UNFCCC and IPCC which may increase welfare spending in USA.
- Economic alignment: Entities promoting decarbonization or energy transitions through "Climate Orthodoxy" is deemed disadvantageous to US fossil fuel interests and economic growth.
- Ideological divergence: The administration expresses reservations about organizations that prioritise "globalist agendas", suggesting that these approaches may not always align with its policy preferences.
- For example, the withdrawal from UNESCO was justified by claims that the agency supports "woke, divisive cultural and social causes" alongside a perceived anti-Israel bias.
Important Organizations from which the USA is withdrawing
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Potential Impact of US withdrawal on multilateral organizations
- Humanitarian and Global Health Crises: A study in The Lancet estimates that cuts to international aid by the U.S. and other Western nations could lead to more than 22 million deaths from preventable causes by 2030.
- China's Ascendance: The retreat leaves the door wide open for China to dominate the UN system and global markets.
- E.g., without U.S. economic prowess in international climate forums, China's Belt and Road Initiative is positioned to occupy center stage in global renewable energy markets.
- Weakened Multilateral Budgets: The UN regular budget is already falling by 7% in 2026 and around 20% of WHO's total revenue is diminishing international humanitarian and development aid.
- Uneven Standards: Instead of universal rules, global cooperation is fracturing into smaller, ad-hoc instruments, trade measures, and bilateral deals impacting globalization forces and trust in multilateral forums.
- Climate change: Hinder global efforts to curb greenhouse gases because it gives other nations the excuse to delay their own actions and commitments.
- Fragmenting Multilateralism: US withdrawal will further weaken international governance, enhance power rivalries, leading to shift towards protectionism and smaller ad-hoc regional blocs.
- Global Peace: Absence of US contribution for Peacebuilding Commission will hamper peace efforts in conflict-ridden areas (e.g. in Africa or the Caribbean).
- Push for UN Reform: It highlights the flaws of the current consensus-based system, calling for reforms to overcome deadlocks and creating diversified funding models through South-South cooperation.
Way forward
- Reforming the Multilateral System: Reforming key UN bodies such as UNSC as suggested by G4 nations for fair representation; improve coordination of existing forums to address interconnected challenges like climate change and health etc.
- Financial Self-Reliance: Diversify funding structure and strengthen international financial institutions to ensure global issues are adequately funded.
- Accelerating South-South Cooperation and Autonomy: E.g., International Solar Alliance is advancing a $1 trillion solar energy goal outside the traditional structures of the UN.
- Building National Resilience: Nations heavily reliant on foreign aid must rapidly develop "national resilience mechanisms" to ensure essential services, such as healthcare and climate adaptation.
- Diversifying Alliances: Instead of nationalist and transactional diplomacy world must diversify its alliances building alternative leadership structures at regional level through forums like G20, BRICS+ and SCO etc.
Conclusion
Although the US retreat triggers uncertainty, this systemic crisis presents a profound opportunity for multilateral reform. By championing regional autonomy, building national resilience, and diversifying alliances, the international community can forge highly effective global governance.
