There is a moment in history when yesterday's assumptions become today's liabilities. We may be approaching such a moment. For three decades after the Cold War, the world operated under a remarkably powerful assumption: The United States would remain the principal organizer of international politics, the dollar would remain the indispensable currency of global commerce, Western institutions would set the rules, and military alliances led by Washington would provide the principal architecture of international security.
That order is not disappearing overnight. But it is being
challenged—simultaneously—from several directions. Venezuela has just entered a
sweeping oil arrangement with Washington that gives U.S. interests majority
control over access to more than 65 billion barrels of proven Venezuelan
reserves. Canada is deepening defense and economic relations with the European
Union. Russia has tested a nuclear-capable intercontinental ballistic missile
only days after a surprise Moscow visit by CIA Director John Ratcliffe.
The BRICS countries are
discussing cross-border payment systems, local currencies and central-bank
digital currencies. Meanwhile, the U.S. dollar remains dominant, but countries
increasingly want alternatives to dependence on a single financial system.
(Reuters). None of these developments, taken alone, means that the United
States is "collapsing." But taken together, they tell us something
more important: The architecture of global power is being renegotiated.
The great geopolitical story of 2026–2030 may therefore not be the collapse of
American power. It may be the end of the period in which American power could
operate as the world's unquestioned organising principle. The world is
moving—not neatly or peacefully—from unipolarity toward contested
multipolarity. And for a small country such as Nepal, this transformation is
not a distant academic issue. It may determine the choices available to us for
the next generation.
1.
The Venezuelan Oil Deal: Sovereignty Meets
Strategic Resources
The latest U.S.–Venezuela oil agreement is perhaps the clearest illustration of
the return of resource geopolitics. President Donald Trump has announced an
arrangement giving U.S. interests majority control over access to more than 65
billion barrels of Venezuelan proven oil reserves. The proposed arrangement is
expected to involve massive American investment and the redevelopment of
Venezuela's damaged petroleum infrastructure. Venezuela's interim president,
Delcy Rodríguez, describes the arrangement as a long-term partnership designed
to attract capital and technology while maintaining Venezuelan sovereignty over
natural resources. (Reuters)
The dispute over how to describe this arrangement is revealing in itself. Is
this economic cooperation? Is it resource diplomacy? Is it strategic
dependency? Or is it a new form of resource-based geopolitical bargaining? The
answer may be: all four. The Venezuelan case reminds us that the geopolitics of
the twenty-first century will not be fought only over territory. It will
increasingly be fought over oil, gas, lithium, rare earths, water, food,
semiconductors, data and artificial intelligence. The country that controls
strategic resources—or controls access to them—possesses geopolitical leverage.
2.
Canada Is Not Joining the EU—but Its Strategic
Direction Matters
One should be careful with the claim that Canada is "joining the
EU."It is not. Canada is not an EU member and has not begun a conventional
accession process. But something strategically significant has nevertheless
occurred. In June 2026, the EU formally concluded an agreement allowing
Canadian companies to participate in the EU's Security Action for Europe (SAFE)
defence procurement programme. Canada is the first non-European country to
participate in SAFE. (Consilium). This is more than a defence contract. It is
evidence of strategic diversification. Canada has historically been
economically and militarily intertwined with the United States. Yet the recent
deterioration in U.S.–Canada relations, including tariffs and disputes over
sovereignty and trade, has encouraged Ottawa to look for alternative markets
and strategic partnerships. (Reuters). The irony is striking. Britain left the
European Union. Canada, thousands of kilometres away, is moving closer to
European defence structures.This tells us something about the emerging order:
geopolitical relationships are increasingly determined not simply by geography,
but by shared interests, supply chains, security needs, technology and
strategic autonomy.
3.
The Falklands Question Shows How Alliances Can
Become Transactional
The Falklands/Malvinas dispute is another warning sign. Recent reports
suggest that Washington may reconsider elements of its traditional position on
British sovereignty over the Falkland Islands. The reporting does not establish
that President Trump has threatened to seize the islands. Rather, it indicates
the possibility of a reassessment of longstanding U.S. diplomatic support for
Britain's position. The British government has responded by reaffirming that
the islands "are and will remain" a British Overseas Territory in
accordance with the wishes of the islanders. (Reuters). The larger significance
lies elsewhere. For decades, Western alliances were built upon the assumption
that members shared certain strategic commitments almost automatically. The
emerging model may be different. Alliances may increasingly become
transactional. Countries will ask: "What do you contribute?"
"What do I receive?" "Are you protecting my interests?"
"What is the cost of supporting you?" That represents a profound
change in the psychology of international relations.
4.
Russia and Nuclear Signalling: Deterrence Is Back:The
surprise visit of CIA Director John Ratcliffe to Moscow was followed by
Russia's test of a nuclear-capable intercontinental ballistic missile. The
missile test should not be described as a nuclear explosion. It was a test of a
nuclear-capable delivery system. But the strategic message is nevertheless serious.
Ratcliffe's visit itself was reportedly connected to concerns about Russian
intentions and efforts to communicate directly with Moscow. The precise details
remain partly classified and contested. (The Wall Street Journal) The lesson is
unmistakable: Nuclear deterrence has returned to the centre of great-power
politics. During the optimistic years following the Cold War, many believed
that economic interdependence would gradually reduce the importance of nuclear
weapons. The opposite has happened. Russia, the United States and China
continue to modernise their nuclear arsenals. Meanwhile, arms-control
arrangements have weakened and strategic mistrust has increased.The nuclear
weapon in the twenty-first century is not merely a weapon of destruction. It is
a weapon of deterrence, signalling, bargaining and psychological pressure.
5.
BRICS Will Become More Important—But It Will Not
Replace the West Overnight
The BRICS story is often exaggerated in both directions. Some claim BRICS is
about to destroy the Western financial system. Others dismiss BRICS as a
talking shop. Both views are inadequate. BRICS is becoming important precisely
because it provides a platform through which major non-Western powers can
coordinate without creating a conventional military alliance. India's 2026
BRICS agenda includes stronger financial cooperation, while BRICS central banks
are discussing ways to connect payment systems and central-bank digital
currencies. (Reuters). The direction is significant. BRICS countries are
increasingly interested in: local-currency settlement; alternative payment
systems; cross-border digital payments; central-bank digital currencies;
local-currency financing; New Development Bank financing; and reduced
dependence on Western financial infrastructure. The objective, however, should
not be described simply as "destroying the dollar." A more accurate
description is: building options beyond the dollar. That distinction is
critical.
6.
The Dollar Will Survive—But Dollar Dominance Will
Gradually Decline
The most dangerous analytical mistake would be to predict an imminent collapse
of the U.S. dollar. The evidence does not support it. The IMF reports that the
U.S. dollar accounted for 57.13 percent of global official foreign-exchange
reserves in the first quarter of 2026, up from 56.42 percent in the previous
quarter. (IMF Data). The dollar remains deeply embedded in global finance,
trade, foreign-exchange markets and international debt. There is also no single
currency ready to replace it.The euro has institutional limitations. The
renminbi remains constrained by China's capital-account and financial-system
arrangements. The yen and pound are important but cannot replace the dollar at
global scale.
7.
Gold is increasingly attractive as a reserve asset
but cannot easily perform all the functions of a modern international currency.
So the most likely future is not: Dollar → zero, It is:Dollar dominance →
monetary diversification. The world may increasingly operate through a
portfolio of currencies.
That would be a significant geopolitical transformation even if the dollar
remained the world's single most important currency.
8.
Ten Geopolitical Predictions for 2026–2030:
Prediction1: The world will become genuinely
multipolar: By 2030, the United States will remain a superpower, but China,
India, the European Union and other major powers will possess greater capacity
to pursue independent strategies. The era of one dominant geopolitical centre
will gradually give way to several centres.
Prediction 2: BRICS will become an institutional ecosystem, not a
military alliance: BRICS is unlikely to become "NATO of the Global
South." Instead, it will become an ecosystem involving: finance +
development + trade + payment systems + technology + energy + diplomacy. Its
greatest impact may therefore come from institutions rather than ideology.
Prediction 3: De-dollarisation will be
gradual, not revolutionary: The dollar will remain dominant through 2030. But
more bilateral trade will be settled in national currencies, and alternative payment
systems will expand. The objective of many countries will not be to abandon the
dollar completely. It will be to avoid being dependent upon it.
Prediction 4: Strategic resources will become
the new geopolitical currency: Oil will remain important, but the strategic
resource map will expand. Expect growing competition over: lithium; cobalt;
copper; rare earths; uranium; natural gas; water; food; semiconductors; and
critical minerals.Venezuela is therefore not an isolated story. It is a
preview.
Prediction 5: Economic security will replace
free trade as the dominant doctrine: The old question was: "Where can we
buy most cheaply?" The new question is: "Where can we buy
safely?" Countries will increasingly accept higher costs in exchange for
secure supply chains. "Efficiency" will increasingly compete with
"resilience."
Prediction 6: Artificial intelligence will
become a geopolitical asset: AI will become comparable to energy, nuclear
technology and telecommunications in strategic importance. Countries that control
advanced computing, semiconductor supply chains, data, models and AI talent
will possess significant geopolitical leverage. For smaller countries,
technological sovereignty will not necessarily mean building everything
domestically. It will mean ensuring secure access, national capacity and
strategic. autonomy.
Prediction 7: Middle powers will become more
influential: Canada, Australia, Türkiye, Indonesia, Saudi Arabia, Brazil, South
Africa and others will increasingly exercise "multi-alignment." They
will cooperate with Washington on one issue, Beijing on another, Brussels on a
third and regional powers on a fourth. This will weaken the old assumption that
every country must permanently belong to one geopolitical camp.
Prediction 8: Europe will pursue greater
strategic autonomy: Europe's security dependence on the United States is being
reassessed.
The Canada–EU SAFE arrangement is an early indication that European defence
cooperation is becoming more outward-looking. (Consilium) By 2030, Europe may
possess substantially greater independent defence-industrial capacity.
Prediction 9: Nuclear deterrence will remain
central: The Ukraine war and growing U.S.–China rivalry will ensure that
nuclear weapons remain central to strategic calculations. The risk may not be
deliberate nuclear war. The greater danger may be: miscalculation + escalation
+ cyberwar + AI + conventional conflict.
Prediction 10: Sovereignty will increasingly
mean economic sovereignty: The nineteenth century defined sovereignty mainly
through territory. The twentieth century added military security. The
twenty-first century is adding: energy sovereignty + food sovereignty +
financial sovereignty + technological sovereignty + data sovereignty. A country
may possess a flag, parliament and constitution but remain strategically
vulnerable if it cannot control its critical economic systems.
9. What Does All This Mean for Nepal?
For Nepal, this changing world should produce neither panic nor ideological
alignment. It should produce strategic thinking. Nepal occupies one of the
world's most sensitive geopolitical locations. We are situated between India
and China—two countries whose importance will increase substantially during the
next decade. At the same time, Nepal has historic relationships with the United
States, Europe, Japan, Australia and multilateral institutions. The wrong
response would be to choose one side. The better response is strategic
autonomy. Nepal needs a foreign policy that is: principled but pragmatic;
independent but not isolated; balanced but not indecisive; national-interest
driven but internationally responsible.
10. Nepal's Seven Strategic Priorities
First: Protect strategic resources: Nepal's
water, hydropower, biodiversity, minerals and land should be managed as
strategic national assets. Hydropower should not merely generate electricity.
It should generate geopolitical leverage, export revenue and economic
independence.
Second: Diversify trade: Nepal should reduce
excessive dependence on any single market. India will remain Nepal's most
important economic partner. China will remain strategically indispensable. But
Nepal should simultaneously expand relations with Europe, ASEAN, Japan, South
Korea, the Gulf and other markets.
Third: Build financial resilience: The debate
about de-dollarisation should not lead Nepal into speculative monetary
experiments. Instead, Nepal should strengthen: foreign-exchange reserves;
export capacity; remittance sustainability; domestic production; digital
payment infrastructure; and diversified external financing.
Fourth: Develop technological sovereignty: Nepal
cannot compete by attempting to manufacture everything. But Nepal can ensure:
data protection + cybersecurity + AI literacy + digital infrastructure +
skilled human resources.
Fifth: Use multilateralism strategically: Nepal
should strengthen its role in the UN, WTO, BIMSTEC, SAARC and other
multilateral institutions. A small country becomes stronger when international
law becomes stronger.
Sixth: Avoid great-power dependency: Nepal
should welcome investment from all partners—but should not allow investment to
become political control. The principle should be simple: Investment is
welcome; dependency is not.
Seventh: Make federalism part of geopolitical
resilience: Nepal's federal system should not be viewed merely as an
administrative arrangement.
Provincial and local governments can contribute directly to: disaster
resilience; water management; energy development; tourism; border-region
development; local economic diplomacy; and social cohesion. A strong centre
with weak provinces is not enough. Nepal needs resilience from the village to
the federal level.
11. Conclusion: Nepal Must Prepare
for the World That Is Coming
The biggest geopolitical mistake is to assume that
tomorrow will resemble yesterday.
It will not. The United States will remain powerful. China will remain a rising
superpower. India will become increasingly influential. Europe will seek
greater strategic autonomy. Russia will remain a major military power. BRICS
will become more institutionally significant. The dollar will remain dominant
but face greater competition. Strategic resources will become more valuable.
Artificial intelligence will reshape economic and military power. And middle
powers will increasingly refuse to choose permanent camps.
The world of 2030 will therefore not necessarily be
an "anti-American" world. It will be a world in which American power
is one powerful pole among several.
That is a fundamentally different international system. The Venezuelan oil
agreement, the Canada–EU defence relationship, the Russia–NATO confrontation,
the BRICS financial agenda and the gradual diversification of global reserves
should therefore not be read as disconnected events.They are pieces of a larger
puzzle. The puzzle is the reconstruction of the international order. And the
crucial question for Nepal is not: "Will America collapse?" Nor:
"Will China replace America?" Nor: "Should Nepal join one
camp?" The more intelligent question is: How can Nepal remain sovereign,
prosperous and strategically autonomous when no single power can dominate the
world?
That is the foreign-policy question of our generation. The answer will require
neither anti-Americanism nor anti-Chinese sentiment. It will require something
more difficult: a foreign policy based on national interest, constitutional
principles, international law, economic resilience, strategic autonomy and
intelligent multi-alignment. The coming decade will belong not necessarily to
the largest countries, but to the countries that can navigate the competition
among the largest countries without losing their own strategic direction. For
Nepal, that is not merely a diplomatic challenge. It is a question of national
survival, sovereignty and statecraft.
Selected references
International
Monetary Fund, Currency Composition of Official Foreign Exchange Reserves
(COFER), Q1 2026 — the dollar accounted for 57.13% of allocated reserves.
Council
of the European Union, SAFE: Council concludes agreement with Canada, 15
June 2026 — Canada became the first non-European country to participate in
SAFE.
Reuters,
U.S. enters into oil agreement with Venezuela, Trump says, 28 August
2026.
Reuters,
BRICS nations discuss linking payment systems and CBDCs, August 2026.
Reuters,
China's Xi likely to visit India for BRICS summit, August 2026.
Reuters,
What to know about the Falkland Islands as U.S. considers reassessing
position, April 2026.
Reuters/CBS/WSJ
reporting on CIA Director John Ratcliffe's August 2026 Moscow visit and
subsequent strategic developments.
Carnegie
Endowment for International Peace, The Difficult Realities of the BRICS'
De-dollarization Efforts.
BRICS
Council, De-dollarisation in BRICS: Strategic Ambition or Practical
Gradualism, 2026.




