Of late, major global bodies in the economic, cultural, and political spheres, once seen as impartial, are increasingly aligning with a specific, interventionist strand of the US foreign policy, eroding their credibility and creating a "legitimacy gap" on the world stage.

Erosion of Western Institutional legitimacy

• Institutional biases and double standards: Swift and severe actions taken against Russia following its 2022 invasion of Ukraine with the continued normal engagement with Israel despite the civilian death toll in Gaza.
  • E.g., Exclusion of Russia and Belarus from Paris Olympics 2024, disconnection of Russian financial institutions from SWIFT, etc.
• Dysfunctional institutions: e.g., WTO Appellate Body remains dysfunctional since 2019 as the US has blocked appointment of new members leaving the body without quorum.
• Non-representative institutions: UN Security Council with its P5 members does not represent the contemporary geopolitics and the shifting Balance of Power.

Potential Strategic Implications

• Increased Global Instability: Politicized actions by global bodies can exacerbate geopolitical tensions.
• Reduced International Trade: The use of financial networks like SWIFT as a foreign policy tool disrupts global commerce.
• Spurring Energy Prices: Instability and sanctions regimes can lead to volatility in global energy markets.