US Superpower Decline and Multipolarity THE PROS AND CONS OF A FUTURE WORLD WITH NO SUPERPOWERS

The global order established in the aftermath of World War II, characterised for decades by the unipolar dominance of the United States, is exhibiting pronounced signs of stress and transition. Multiple forces—economic, geopolitical, and monetary—are converging to suggest that the world is moving toward a multipolar framework.

- By Major General Dr. Boniface Perera

Military strength alone may not be enough for the US to maintain its superpower status

This shift is not merely academic; it promises to redefine international relations, global finance, and security dynamics. While the US retains formidable power, a confluence of internal strains and external challenges suggests its superpower status, though not immediately relinquished, is on a perceptible downward trajectory.

The foundation of US global power has long rested on the sheer size of its economy and the status of the US Dollar ($) as the world’s primary reserve currency. Recent global economic behaviour, however, points to a subtle but significant erosion of this dominance.

A notable trend is the accelerated gold buying rush by central banks, particularly those in emerging markets and US geopolitical rivals. Gold has historically served as a safe-haven asset, maintaining its value during periods of economic instability and currency devaluation . This rush can be interpreted in two ways: first, as a defensive measure against a possible world recession, and second, as a diversification strategy away from US dollar-denominated assets.

Historically, central banks increase gold reserves when they anticipate currency instability or seek to hedge against sovereign debt risk. The recent scale of gold accumulation suggests a collective lack of confidence in the sustained stability of the global financial system, with many nations using their dollar reserves to acquire the metal. This action, by reducing the demand for the USD in reserve portfolios, acts as a soft challenge to the dollar’s hegemony and signals a preemptive step against potential global economic turbulence.