When the UN became the NUN

[RedWolf]

My take on the NUNG is that it transformed into more of a federation of member colony worlds and fleets rather than the governing authority it once was. Information is freely shared among the members as well as joint self defense.

We also have to take into account Zola which was not a participant in Space War 1 and the formation of the "new" UN Government.

[Seto Kaiba]

I would probably consider those the highlights of the symptoms. There were more conflicts that probably contributed to the overall problem and the eventual decentralization.

No kidding... likely a fair few of those (comparatively) small conflicts that were mentioned in Isamu's personnel file and featured in some of the games had an impact on it as well.

We also have to take into account Zola which was not a participant in Space War 1 and the formation of the "new" UN Government.

Exactly how much sway the little-n new U.N. Gov't and the big-n New U.N. Gov't hold over the planet Zola depends on its status. It's been a while since I last saw Macross Dynamite 7, but wasn't Zola a protectorate, rather than a member state, under the little-n new U.N. Government?