Mark Carney’s Davos speech argues that the familiar story of a stable, rules-based international order has broken down, replaced by an era of intensified great power rivalry where economic interdependence is increasingly used as a tool of coercion. He warns that middle powers can no longer rely on comforting fictions, symbolic commitments, or inherited institutions for protection, and instead must adopt honesty about the world as it is. Drawing on Václav Havel’s idea of “living in truth”, he challenges countries and companies to stop performing compliance with systems they know are failing, and to act consistently with their stated values.

Carney proposes a path he calls values-based realism, combining principled commitment to sovereignty, human rights, and the rule of law with pragmatic engagement across a fragmented world. He argues that strategic autonomy is necessary, but that isolated national fortresses would leave everyone poorer and less secure. Instead, middle powers should cooperate through flexible coalitions, shared standards, and collective investment in resilience, creating practical alternatives to weakened global institutions.

He presents Canada as an example of this approach, outlining domestic reforms to strengthen economic capacity, major investments in defence, infrastructure, energy, AI, and critical minerals, and a deliberate strategy of diversifying international partnerships across regions and issues. Through variable coalitions on security, trade, technology, and climate, Canada seeks to increase its influence without subordination to any hegemon.

Carney’s core message is that middle powers still have agency. By naming reality, strengthening themselves at home, and acting together with integrity, they can help build a more honest, cooperative, and just international order rather than retreating into fear or nostalgia.