In a major foreign policy speech to the Atlantic Council in New York on Thursday, Australian time, Anthony Albanese said many of the institutions that were necessary post-1945 were not enough to meet present-day challenges.
The prime minister used the speech on the sidelines of the United Nations General Assembly to argue partnerships with alliances remained crucial in a rapidly changing global environment.
"Since the end of the Cold War, the prevailing assumptions of international affairs were clear: openness was security, efficiency mattered more than resilience and international rules would be observed," he said.
"Those assumptions rested on the expectation that the influence of the major democratic powers would remain largely unchallenged.
"The post-1945 world order is no longer fit for purpose. Universal institutions that remain necessary are now not always sufficient for the challenges we face."
The prime minister said Australia needed to shape a world order that would replace the old one, while preserving diplomatic rules.
Mr Albanese pointed to the strategic competition between the US and China in the Indo-Pacific as being the most consequential issue facing the region.
While Australia had ties with the US and China as its key security and trading partners respectively, Mr Albanese told the Atlantic Council the competition between the two powers should not be the only lens the Pacific should be dealt through.
"The Indo-Pacific is not a chessboard on which superpowers move the pieces," he said.
"Its countries are not spectators, they are shaping its future and writing their own script.
"How Washington and Beijing manage their relationship matters profoundly."
The prime minister made the speech after receiving the Atlantic Council's Global Citizen award, where he was recognised for his role in deepening alliances and promoting security and stability in the Indo-Pacific.
He was among four award recipients at the event, including Formula One boss Stefano Domenicali, Finnish President Alexander Stubb and actress Cynthia Erivo.
He was introduced by Papua New Guinea Prime Minister James Marape, who said Australia's leader was a close friend and trusted ally.
Mr Albanese understood that leadership was "ultimately not about power but about people", Mr Marape said.
"It is really the greatest honour of my life and a privilege to introduce my friend," he told the event.
The speech came a day after Mr Albanese met briefly with US President Donald Trump at a gala dinner hosted by the American leader.
The prime minister and Mr Trump have issued divergent calls on how to approach AI following safety fears.
Relations with Pacific nations such as Papua New Guinea were highlighted by Mr Albanese in the speech.
"The Pacific has been a priority for my government since day one," he said.
"Our approach to the Pacific is characterised by respect. Respect for Pacific priorities, for their incredible culture and for their sovereignty.
"Our partnerships in the Pacific are building the security, prosperity and resilience of all our countries, so they can advance together, shaped by Pacific priorities."
Mr Albanese pointed to ASEAN alliances in Southeast Asia as crucial to regional order.
The new global order has forced countries to place a bigger emphasis on building resilience through critical minerals and energy measures, the prime minister said.
That focus has been heightened by the impact of the COVID-19 pandemic and the war in Iran, which has led to supply chains coming under pressure and fuel prices surging.
"The rules that connect our nations remain essential, and they matter to Australia, to the Indo-Pacific and globally," he said.
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