It was a moment of global clarity. Prime Minister Mark Carney’s speech to the world’s political and economic elite gathered in Davos this week described global realities, past and present, with a candour and nuance rarely heard from a serving politician.
The message was twofold.
First, Carney made clear that the world has changed, and the old comfortable ways of global politics are not coming back. Those who wait for sanity to return are waiting in vain. We are in a world increasingly shaped by the threat and the use of hard power. All states must accept that reality.
Despite this, Carney’s s…
It was a moment of global clarity. Prime Minister Mark Carney’s speech to the world’s political and economic elite gathered in Davos this week described global realities, past and present, with a candour and nuance rarely heard from a serving politician.
The message was twofold.
First, Carney made clear that the world has changed, and the old comfortable ways of global politics are not coming back. Those who wait for sanity to return are waiting in vain. We are in a world increasingly shaped by the threat and the use of hard power. All states must accept that reality.
Despite this, Carney’s second and more hopeful message was that while the globally powerful may act unilaterally, others — notably “middle powers” like Canada — are not helpless.
By finding ways to co-operate on areas of shared interest, states like Canada can pool their limited resources to build what amounts to a flexible network of co-operative ties. Taken together they can provide an alternative to simply rolling over and taking whatever great powers like the United States dole out.
There’s also little choice in the matter if countries want to remain independent. As he eloquently put it: “If we’re not at the table, we’re on the menu.”
Prime Minister Mark Carney speaks during the Annual Meeting of the World Economic Forum in Davos, Switzerland, on Jan. 20, 2026. (AP Photo/Markus Schreiber)
From ‘elbows up’ to capitulation, and back
The speech represented a remarkable departure from Canada’s usual approach to its relationship its neighbour to the south.
For all the talk of “elbows up” during the 2025 federal election campaign, the Carney government has been somewhat ambivalent since then. It’s placed its hopes in achieving a renewed trading relationship and normalized relations with the U.S. through a combination of good faith negotiations and a steady stream of conciliatory gestures on issues that seemed to matter most to U.S. President Donald Trump.
- ** Read more: Mark Carney’s apology to Donald Trump: Far from ‘elbows up,’ it seems Canada has no elbows at all ** *
That resulted in Canada committing significant funds to combat a largely non-existent fentanyl trafficking problem and to meet American demands for increased military funding. At times the conciliation verged on placation, as when Canada unilaterally ended relatiatory tariffs on American goods to no discernible effect.
This strategy clearly was not working, however, as Carney made clear in Davos.
While neither America, nor Trump, were mentioned by name, there’s no doubt who’s driving the dramatic global changes Carney was describing. At times the veneer became very thin as Carney reiterated Canada’s support for the sovereignty of Greenland as a territory of Denmark.
In fact, the speech was remarkably blunt in its rebuke of America’s foreign policy during Trump’s second term, drawing attention, as others have, to how U.S. actions leave almost everyone, including Americans, worse off.
People participate in a rally in response to U.S. President Donald Trump’s threats to Canadian sovereignty on Parliament Hill in Ottawa in March 2025. THE CANADIAN PRESS/Justin Tang
Trump’s response
That not-so-subtle barb was not lost on the audience, either in the room or across the Atlantic in the White House.
Trump wasted little time in firing back in the manner and style the world has become accustomed to. During his own address to the World Economic Forum the next day, Trump delivered a rambling and at times confusing speech.
He reiterated his intent to annex Greenland while confusing the island multiple times with neighbouring and also sovereign Iceland, and he took time to single out Carney by name.
“Canada lives because of the United States,” he said. “Remember that, Mark, next time you make your statements.”
The comments provided helpful proof of Carney’s argument, demonstrating the naked threat of power by the American president to coerce its neighbour and ostensible ally. It revealed the kind of “gangster” mindset we see often from Trump, as he effectively said: “Nice country, Mark. Be a shame if something happened to it.”
U.S. President Donald Trump gestures in the hallway after his special address during the 56th annual meeting of the World Economic Forum in Davos, Switzerland, on Jan. 21, 2026. (Gian Ehrenzeller/Keystone via AP)
Critique of past
As blunt as Carney’s assessment of the present was — that the rules-based, liberal international order has faded away — in some ways his critique of the past was even more remarkable. The prime minister spoke with a candour one wouldn’t expect to find at the podium at Davos.
Prime Minister Mark Carney departs Zurich, Switzerland on Jan. 21, 2026, after attending the annual World Economic Forum in Davos. THE CANADIAN PRESS/Sean Kilpatrick
Effectively, Carney correctly characterized the old order as one defined as much by its hypocrisy as by its rules. He acknowledged that countries like Canada benefited from a system in which rules are applied unevenly, and superpowers continue to shape outcomes.
This idea, along with the the need to look ahead in order to survive a new order, appeared to underpin Carney’s exhortation not to mourn the rapidly vanishing old order.
Carney clearly hopes a new system may emerge that is not only more resilient to diverse and unpredictable threats, but is more honest and just.
By finding common ground on shared issues, middle powers can act in accordance with their own values and interests, instead of deferring to the proclaimed values of global power that are frequently violated in practice. Power will always matter, but it doesn’t have to be all that matters.
History in the making?
Carney’s Davos remarks were powerful by any measure. But will he back up his words with action in the months and years ahead?
His speech was met with a rousing standing ovation, and has justly received plaudits from around the world for its clear-eyed description of a less forgiving world order and its vision for how states like Canada can continue to thrive within it.
Whether it proves a speech for the ages, however, depends on what happens next. If Canada is serious about charting a new path, distinct from the great powers of the world, it must do more than talk. Acts like deploying symbolic forces to Greenland if necessary will show a seriousness of purpose. Canada cannot expect others to stand with it if it doesn’t stand with them.
Similarly, Canada must reject schemes like Trump’s “board of peace,” a thinly disguised attempt to replace institutions of global governance with a body composed by and serving at the president’s whim.
Carney has captured the world’s attention with this speech. There’s a lot hanging on what he does with that attention.