Evolving Power Structures in Global Governance

The international system has shifted from unipolarity to multipolarity, with emerging powers like China, India, and the European Union gaining influence, reducing the dominance of Western-led institutions such as the World Bank and IMF, as evidenced by economic data like GDP growth and FDI trends. The study analyses this transition using Offensive Realism, which highlights power competition, and Neoliberal Institutionalism, which emphasises cooperation through institutions, supported by empirical evidence of rising alternative frameworks like BRICS, the SCO, and the AIIB. Multipolarity brings opportunities for economic diversification and balanced governance but also challenges, including fragmented decision-making, regional rivalries, and declining influence of traditional financial bodies, alongside increased military spending, particularly by China. To ensure stability in this evolving order, the paper advocates for structural reforms in international institutions to reflect new power dynamics, enhanced multilateral diplomacy, and updated security and economic crisis management strategies.