Multilateralism is defined as “the practice of coordinating national policies in groups of three or more states” (Keohane, 1990: 731). Often, it is associated with an institutional form, which serves to coordinate relations between several sovereign states by establishing agreed principles, norms and rules of behaviour. Multilateral institutions provide a forum for communication, which reduces uncertainty, constrains activity and facilitates negotiation and compromise (Keohane 1990; Ruggie, 1992).

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The following principles are often associated with multilateralism:

 

• Indivisibility of interest: Members within a multilateral institution are equal and share common interests. For example, in a collective security system made up of a group of equal states, an act of war against a state is an act of aggression against all.

• Diffuse reciprocity: All members eventually benefit from the multilateral arrangement.

• Generalized principles of conduct: This notion touches upon the norms and rules of behaviour that characterize the relations between states in multilateralism. 

• Dispute settlement: Multilateral institutions incorporate mechanisms for solving disagreements and ensuring compliance with established rules.