FROM the power struggles in the Gulf to the central-bank vaults in Europe and manufacturers in Asia, countries are no longer just acknowledging the shift from United States hegemony to a more contested and multipolar world. They are actively diversifying their relationships, hedging their bets and building new architectures of power. Consider these:
– Financial. For decades, the petrodollar system — in which Gulf states sold oil exclusively in the US currency — supported American economic hegemony, funded its wars and weaponized access. That system is now cracking. Gulf nations are increasingly accepting nondollar currencies for oil shipments. A growing list of countries, including China, India, Russia, and Malaysia, are expanding bilateral trade in their own currencies. Central banks are quietly but decisively reducing their exposure to US Treasuries. Also, they are accumulating gold reserves at a pace that doubled the commodity’s price to $5,000 in three years. France has already repatriated its gold, and other European nations are following suit; and Brics members — which make up half the world’s trading volume — are participating in an alternative financial clearing system, signaling a loss of confidence in dollar-denominated assets as the ultimate safe haven.
– Political alliances. This financial decoupling also reflects in a fracturing of political alliances. Within the North Atlantic Treaty Organization (NATO) and the United Nations, votes are no longer predictable. While US President Donald Trump publicly insults both organizations, Canada, Spain and Hungary have increasingly staked out independent positions on everything, from Middle East ceasefires to trade sanctions. The US has found itself unable to control or coordinate with a major ally, Israel, which launched strikes on Iran and Lebanon even as Washington was engaged in ceasefire talks. The message is clear: even traditional partners now feel empowered to pursue their own goals, regardless of American preferences, while the presidents and tycoons of smaller countries can be kidnapped or even killed by powerful nations, as practiced by the US and Israel.
– Military hegemony. Nowhere is the erosion of US military deterrence more evident than in the Persian Gulf. Iran, despite suffering severe damage to its leadership and infrastructure, continues to fight effectively. Its military has demonstrated an unexpected ability to damage US Navy destroyers and aircraft carriers, forcing American carriers, destroyers and other vessels to withdraw from Iranian shores. Stealth bombers, airborne warning and control systems, and advanced radar systems — once considered unassailable — have proven to be vulnerable. In a stunning assertion of control, Iran had closed the Strait of Hormuz, allowing only commercial traffic to continue under specific tolls and routes while continuing to block military vessels. Iranian forces have also struck US and Israeli forces, as well as energy infrastructure, US bases, weapons inventories, launch facilities and water desalination facilities in the Gulf, prompting withdrawals and proving that larger budgets and technological superiority alone don’t guarantee security.
– Groupings. The response from other nations has been a pragmatic rush to build alternative defense and economic pacts. Regions are no longer relying solely on US-led security umbrellas. The Gulf Cooperation Council (GCC) is deepening its own joint defense preparations and alliances, while European nations are quietly discussing autonomous rapid-reaction forces outside of NATO. Economically, the gravitational pull of China is becoming irresistible. Despite threats of US sanctions, major economies — including Germany, the United Kingdom, Spain, Hungary, Vietnam, and Malaysia — are sending high-level delegations to Beijing to secure more investments and boost trade ties.
– Sanctions, invasions backfire. Adding to the turbulence, US sanctions are backfiring spectacularly. Its sanctions regime, designed to punish Russia, Iran, and China, has instead created a surge in global oil prices. This has forced the US to temporarily lift sanctions on Russian oil to cool markets, simultaneously handing Moscow and Tehran massive new revenues while hurting the rest of the world, from the Philippines to sub-Saharan Africa. The weaponization of the dollar and the financial system has taught every other nation a sobering lesson: overreliance on US infrastructure, or that of any single nation or group, is a vulnerability.
– The new constructs. The world we are entering is chaotic and competitive. It is a world of regions, blocs and agile middle powers. The US remains the most powerful force, but it is no longer the sole hegemon, the dictator of global order. As countries, from Europe and the Gulf to Southeast Asia, diversify their relationships, ink new defense pacts, and shift their reserves to gold, they are not just reacting to America’s decline, dictates and insults. They are actively adapting to and constructing a future where no single power — not Washington, not Beijing, not Moscow — can dictate terms to others. The multipolar world is not just coming; it is being built, nation by nation, transaction by transaction, systems technologies and supply chains.
The Philippines is still trapped in the colonial, political and social structures of a hundred years ago, the economic models of 40 years ago. Quo vadis? The current domestic politics and culture practically guarantee a stagnation of status as country after country surpasses us. Bold dreams, firm discipline, high creativity, and fast execution and iteration are currently needed in our leadership.
New Worlds by the Integrated Development Studies Institute (IDSI) aims to present frameworks based on a balance of economic theory, historical realities, ground success in real business and communities, and attempts at the common good, culture and spirituality. We welcome logical feedback and possibly working together with compatible frameworks.
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