Policy & Finance Brief

Broader debates over global influence, minilateralism, trade fragmentation, and Global South positioning

Broader debates over global influence, minilateralism, trade fragmentation, and Global South positioning

Global Order, Trade Fragmentation And The Global South

The evolving landscape of global influence and emerging forms of cooperation is redefining the traditional power dynamics among nations. As geopolitical tensions rise, countries are increasingly engaging in minilateralism—selective, issue-specific alliances that bypass traditional multilateral institutions—to safeguard their strategic interests. This shift is evident in the contest for regional dominance, resource control, and influence in key domains such as the Arctic, space, and critical mineral supply chains.

Shifting Spheres of Influence and the Rise of Minilateralism

The competition for global influence is no longer solely centered on bilateral diplomacy or broad multilateral frameworks. Instead, minilateral coalitions—like the Quad (U.S., Japan, India, Australia) or BRICS—are gaining prominence as countries seek agile, issue-focused partnerships. These arrangements allow nations to coordinate on shared interests, such as critical mineral access, space governance, or regional security, often reflecting a multipolar world where no single power dominates.

India's role exemplifies this nuanced positioning. Historically balancing between the U.S. and the Global South, India is increasingly asserting itself as a pivotal player capable of navigating between major powers while championing South-South cooperation. As V. Prashad notes, India finds itself "trapped between the US and Global South," trying to leverage its strategic autonomy to maximize influence without becoming overly dependent on any single bloc.

The Contest for Critical Resources and Space

The race for critical minerals—such as lithium, cobalt, and rare earth elements—has become a defining feature of this new influence landscape. Countries are vying to secure resource-rich regions like Greenland, Africa, and the Arctic, which are now recognized as strategic frontiers due to climate change, technological demands, and geopolitical rivalry.

  • Greenland’s mineral wealth, estimated at over $900 billion, has reignited interest from the U.S., China, and European nations. Greenland's strategic position makes it a nexus for controlling Arctic shipping routes and resource extraction.
  • The Arctic, melting due to climate change, reveals untapped deposits and new shipping lanes, intensifying militarization and sovereignty disputes. Russia has militarized the region, while China’s "Ice Silk Road" initiative aims to influence Arctic shipping and resource access, echoing terrestrial territorial disputes.

In space, the competition extends beyond Earth's borders. The U.S. and China are investing heavily in space infrastructure, with the U.S. focusing on resilient satellite networks and space situational awareness, while China seeks to influence international space law to establish sovereignty over extraterrestrial resources. These efforts reflect a broader trend: space is becoming the new frontier of geopolitical influence.

Reassessing US Leadership and Europe’s Strategic Reorientation

Amid these shifts, Europe's approach to global influence is undergoing reassessment. The continent recognizes that traditional reliance on U.S. leadership may no longer suffice in a fragmented global order. As highlighted in discussions about Europe navigating a fragmenting trade order, European nations are exploring more autonomous strategies, emphasizing regional resilience, technological innovation, and strategic alliances that do not solely depend on Washington.

Meanwhile, the legal landscape influences these geopolitical calculations. A recent U.S. Supreme Court ruling limited the President's ability to impose tariffs via executive orders, constraining rapid protectionist policies. This legal shift complicates efforts to control critical mineral imports and leverage trade as a tool of influence, prompting countries to seek alternative strategies—such as domestic resource development and regional partnerships.

The Broader Geopolitical Implications

The convergence of these trends signifies a transformation in global power structures:

  • Multipolar influence: No single country or bloc holds uncontested dominance, leading to a complex web of alliances and rivalries.
  • Resource competition: Control over critical minerals and space resources is becoming central to national security and economic strength.
  • Legal and technological battles: Norm-setting in space law and technological innovation are shaping future domains of influence.

This environment presents significant challenges and opportunities. Countries must craft diplomatic, legal, and technological strategies that promote stability while safeguarding their interests. The proliferation of minilateral arrangements and regional partnerships offers a flexible framework, but also risks escalating conflicts over sovereignty, especially in contested regions like the Arctic and outer space.

Conclusion

As the global influence landscape continues to evolve, nations are increasingly compelled to adapt by forging strategic alliances, investing in technological innovation, and asserting sovereignty over emerging domains. The race for critical resources—on Earth and beyond—will be a defining factor in shaping the future global order. Policymakers and stakeholders must navigate this complex terrain with resilience, foresight, and a commitment to establishing norms that prevent conflict and promote stability in this new multipolar era.

Sources (13)
Updated Feb 28, 2026
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