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A foreign policy strategy in which a sovereign state chooses to pursue its international interests and goals in concert with many other sovereign states as well as international organizations and nongovernmental organizations (NGOs). The policy of multilateralism suggests that even the most powerful nations are ill-suited in the modern age to grapple effectively with global issues and challenges on their own. Although the pursuit of multilateralism requires states to relinquish some decision-making authority and freedom, proponents argue that such losses are outweighed by new capacities gained to achieve shared objectives (for example, economic dispute resolution systems, well-established opportunities for dialogue, and so on). Moreover, the negotiation of broad multilateral objectives often brings with it not only a heightened sense of legitimacy on the world stage but also the infusion of policy expertise by international organizations and NGOs.

The 20th and 21st centuries contain numerous examples of sovereign states taking multilateral actions and forming multilateral coalitions. These alliances have historically fallen under several basic rubrics. The first involves military endeavors, such as the formation of North Atlantic Treaty Organization (NATO) or the U.S.-led coalition in the Gulf War (1990–1991). A second type of multilateral action has involved economic arrangements, such as the establishment of the World Trade Organization (WTO) or the North American Free Trade Agreement (NAFTA).

Another type of multilateral arrangement involves political associations; an example of this is the establishment of the United Nations (UN) or the Organization of American States (OAS). In recent years, multilateral actions are growing increasingly common in the areas of public health—including the founding of the World Health Organization (WHO) and the International Campaign to Ban Landmines (ICBL)—and in human rights—including the evolution of the International Criminal Court (ICC) and the International Committee of the Red Cross (ICRC).

Multilateralism is a strategy most often embraced by second-tier powers (for example, Canada, Australia, and Denmark) that possess the economic wherewithal to participate on the world stage, but lack the individual military might to project their interests overseas. The record of multilateralism for superpowers such as the United States and the former Soviet Union is mixed at best. Critics are quick to claim that nations such as the United States often operate under the veil of multilateralism and then fail to embrace fully multilateralism's most important principle: The decision to take action is ultimately made collectively.

In 2002, for example, the United States made the case for the liberation of Iraq and the ousting of Iraqi dictator Saddam Hussein before the UN, claiming that it sought a multilateral approach and action. However, when the UN (and particularly Security Council members France and Germany) failed to adopt a second UN resolution authorizing the use of force, the United States opted to build its own coalition of allies. Had the United States fully embraced what is termed principled multilateralism, it would have considered the UN's decision as the final authority and not initiated the military campaign on its own.

Although the United States possesses more than one-half of the world's total military capability, which enables it to act unilaterally in the military sphere, its power is more easily checked in matters of international trade and economics. On several occasions, for example, U.S. membership in NAFTA or the WTO has meant that its disputes with other nations have been settled by international arbitration. When found at fault, the United States has accepted the decisions of multilateral organizations, albeit reluctantly, by changing policies or altering business practices. Given that the United States relies so heavily on the open international market for its prosperity at home, it often has little recourse but to accept multilateral decisions rather than take action alone.

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