Special Address by Mark Carney, Prime Minister of Canada | World Economic Forum Annual Meeting 2026

Introduction to Mark Carney

Opening Remarks

• The speaker introduces Mark Carney, Prime Minister of Canada, and Giddy Rockman from the Financial Times.

• Emphasizes the focus on future directions in the global economy, likening it to hockey strategy.

Background on Mark Carney

• Highlights Carney's calmness under pressure, referencing his leadership during the 2008 financial crisis as Governor of the Bank of Canada.

• Notes his historic role as the first non-British Governor of the Bank of England post-Brexit and his recent election as Prime Minister.

Current Global Challenges

A New World Order

• Carney discusses a "rupture" in world order and a shift from a stable geopolitical landscape to one characterized by rivalry among great powers.

The Role of Middle Powers

• Asserts that countries like Canada are not powerless; they can help build a new international order based on shared values such as human rights and sustainable development.

The Fragility of International Relations

Great Power Rivalry

• Describes an era where strong nations act without constraints while weaker nations suffer consequences, echoing Thucydides' aphorism about power dynamics.

Compliance vs. Reality

• Discusses how countries often comply with false narratives for safety but warns that this approach is ineffective in today's geopolitical climate.

Lessons from History

The Power of the Powerless

• References Václav Havel's essay illustrating how compliance with falsehood sustains oppressive systems through collective participation.

Breaking Free from Illusions

• Urges nations and companies to stop perpetuating false narratives that have historically allowed them to avoid confronting uncomfortable truths.

The End of an Era

Acknowledging Fictional Narratives

• Recognizes that while countries benefited from a rules-based international order, they were aware it was partially fictional due to selective enforcement by powerful states.

Current Geopolitical Landscape

• Warns that reliance on this outdated system is no longer viable; ongoing crises reveal vulnerabilities in global integration strategies.

Strategic Autonomy and Future Implications

Need for Self-Reliance

• Stresses that many nations must develop strategic autonomy across various sectors (energy, food security, finance).

Consequences of Isolationism

• Concludes that if great powers abandon rules for self-interest, it will lead to a more fragmented world with diminished economic benefits for all.

Strategic Autonomy and Collective Resilience

The Need for Diversification

• Allies are diversifying to hedge against uncertainty, focusing on rebuilding sovereignty through strategic risk management.

• Collective investments in resilience are more cost-effective than individual fortifications; shared standards help reduce fragmentation.

Canada's Strategic Shift

• Canada is shifting its strategic posture, recognizing that previous assumptions about geography and alliances no longer guarantee prosperity or security.

• The new approach emphasizes "value-based realism," balancing principled commitments with pragmatic engagement in international relations.

Engagement and Strength Building

• Canada is recalibrating relationships to reflect values while maximizing influence amid global fluidity; this includes building domestic strength.

• Significant investments are being made in energy, AI, critical minerals, and defense spending to enhance national capabilities.

Global Partnerships and Coalitions

• Canada has established a comprehensive strategic partnership with the EU and signed multiple trade/security deals across continents within six months.

• Variable geometry coalitions are being pursued for different global issues based on shared values, such as support for Ukraine's defense.

Middle Powers' Role in Global Dynamics

• Middle powers must act collectively to avoid negotiating from a position of weakness when dealing with great powers.

• Competing individually can lead to subordination; instead, middle powers should unite to create impactful alternatives amidst great power rivalry.

Canada's Path in a Changing World

The Role of Middle Powers

• Middle powers must apply the same standards to both allies and rivals, avoiding selective criticism of economic intimidation.

• Building a strong domestic economy is essential for reducing vulnerability to coercion, which should be a priority for all governments.

Canada's Strengths

• Canada possesses vast energy resources, critical minerals, and an educated population, positioning it as an attractive partner globally.

• With significant fiscal capacity and values that resonate internationally, Canada aims to be a stable partner in uncertain times.

Acknowledging Global Changes

• There is recognition that the old global order will not return; nostalgia is not a viable strategy moving forward.

• Middle powers have much to gain from genuine cooperation rather than isolationist policies.

Resilience Against Pressure

• Despite trade dependence on the U.S., Canada has shown resilience by creating more jobs since tariffs were imposed compared to the U.S.

• The Canadian market's efficiencies allow it to withstand external pressures while focusing on domestic investment and international partnerships.

Moving Beyond Nostalgia

• Canada acknowledges that the previous world order is gone and emphasizes proactive engagement in building new systems with partners.

• Membership in extensive trade agreements allows Canada to connect with 1.4 billion people globally, enhancing its strategic position.

NATO's Current Challenges

• NATO faces tests regarding its relevance; immediate responses are needed for Arctic security amidst evolving geopolitical dynamics.

• While NATO may still project traditional alliances, there’s an urgent need for adaptation to current realities.

Power Dynamics and Strategic Partnerships

The Relationship with China

• Discussion on the potential risks of increasing dependency on China, highlighting concerns about U.S. reactions.

• Emphasis on a proactive approach rather than defensive; focusing on building positive relationships.

• Identification of significant opportunities in various sectors such as energy, agriculture, and financial services within the U.S.-China partnership.

Shifts in Global Economic Strategy

• Noting a reversal from previous decoupling efforts during the Biden administration towards a more interconnected global economy.

• Importance of maintaining connections with major economies (U.S., China, India, EU) for resilience and strength.

Security Concerns in the Arctic

• Addressing security issues related to Greenland and broader Arctic interests; advocating for principled discussions.

• Commitment to enhancing security measures in the Arctic region against threats from Russia.

Peace Initiatives and Humanitarian Efforts

• Canada's invitation to join President Trump's "board of peace" initiative; recognition of progress made thus far.

• Need for immediate humanitarian aid flow into Gaza alongside governance improvements for effective peace processes.

Financial Contributions to Peace Efforts

• Discussion on potential financial commitments to support Palestinian welfare while emphasizing that contributions would be aimed at improving conditions rather than direct monetary donations.

Globalism: A Complex Perspective

Understanding Globalism and Its Implications

• The discussion emphasizes the importance of delivering outcomes that promote peace, highlighting a desire for effective mechanisms to achieve these goals.

• The question arises about globalism, with references to President Trump and others who condemn it. The speaker is identified as an epitome of globalism due to their background in finance and international experience.

• The speaker argues that understanding global connections—through technology, trade, investment, and culture—can enrich lives and help solve problems. They suggest that being detached from societal needs is problematic but question whether "globalism" is the right term for this detachment.

• There is a call for like-minded countries to collaborate through partnerships to benefit their citizens and address broader world issues. This reflects a recognition of current global dynamics and the need for resource pooling among nations.