“It is time for companies and countries to take their signs down… You cannot live within the lie of mutual benefit through integration when integration becomes the source of your subordination.” – Mark Carney – Prime Minister of Canada
In his special address at the World Economic Forum’s Annual Meeting 2026 in Davos, delivered on 20 January 2026, Canada’s Prime Minister Mark Carney issued a stark warning about the collapse of the rules-based international order. The quote captures Carney’s pivot towards ‘value-based realism,’ urging nations to abandon naive assumptions of automatic prosperity through globalisation and instead prioritise strategic autonomy, domestic strength, and recalibrated alliances.3,5
Mark Carney: From Central Banker to Prime Minister
Mark Joseph Carney, born on 16 March 1965, is a Canadian economist and politician serving as Canada’s 24th Prime Minister since March 2025. Elected leader of the Liberal Party with over 85.9% of the vote on 9 March 2025, Carney was sworn in as Prime Minister on 14 March without prior elected office, a first in Canadian history. He represents Nepean in Parliament and led the Liberals to a minority government in the subsequent election.1,2
Carney’s career trajectory is marked by high-profile roles in global finance. He served as Governor of the Bank of Canada from 2008 to 2013 and then as Governor of the Bank of England from 2013 to 2020, becoming the first non-Briton in that position. Post-governorship, he advised Canadian Prime Minister Justin Trudeau on COVID-19 economic responses and chaired the Liberal Party’s Task Force on Economic Growth in 2024. Ideologically a centrist technocrat and ‘Blue Grit Liberal,’ Carney’s premiership has focused on economic resilience amid geopolitical tensions.2
Since taking office, Carney has enacted transformative policies: repealing the federal consumer carbon tax, passing the One Canadian Economy Act to eliminate interprovincial trade barriers, fast-tracking a trillion dollars in investments in energy, AI, critical minerals, and infrastructure, and doubling defence spending by decade’s end. His government has recognised the State of Palestine, improved ties with China-including a January 2026 visit yielding tariff reductions on canola and electric vehicles-and sustained support for Ukraine.2,3,4
Context of the Quote: Davos 2026 and Canada’s Strategic Shift
Carney’s address came amid an escalating trade war with the United States and the erosion of post-Cold War globalisation. He declared the end of comfortable assumptions that geography and alliances guaranteed security and prosperity, advocating engagement ‘with open eyes’ and relationships calibrated to shared values. Canada, he noted, was among the first to heed this ‘wake-up call,’ shifting to build strength at home while inviting middle powers to join in ‘value-based realism’-a term borrowed from Finland’s President Alexander Stubb.3
The speech highlighted domestic actions like tax cuts on incomes, capital gains, and business investment, alongside broad engagement to maximise influence in a fluid world. Carney received a standing ovation, underscoring the resonance of his message on naming ‘reality’ and acting decisively.2,3
Leading Theorists on Globalisation, Integration, and Subordination
Carney’s critique echoes longstanding debates in international relations and economics on the limits of globalisation. Key theorists provide intellectual foundations for his views:
- Joseph Nye and Robert Keohane (Regime Theory): In Power and Interdependence (1977), they argued that complex interdependence fosters mutual benefits through institutions, but power asymmetries can lead to subordination. Carney’s call to ‘take down signs’ of mutual benefit aligns with their recognition that regimes falter when great powers exploit them.2
- Graham Allison (Thucydides Trap): Allison’s 2017 book warns of inevitable conflict when a rising power (e.g., China) threatens a ruling one (e.g., US), fracturing integration. Carney’s emphasis on strategic autonomy mirrors Allison’s advice for middle powers to hedge amid US-China rivalry.3
- Dani Rodrik (Trilemma of Global Economy): Rodrik posits governments cannot simultaneously pursue hyper-globalisation, national sovereignty, and democracy. Carney’s policies-relaxing regulations, boosting defence, and diversifying trade-reflect choosing sovereignty over unchecked integration.2
- John Mearsheimer (Offensive Realism): In The Tragedy of Great Power Politics (2001), Mearsheimer contends states maximise power in anarchy, rendering mutual benefit illusory when subordination looms. Carney’s ‘honesty about the world as it is’ evokes this realist turn from liberal optimism.3
- Alexander Stubb (Value-Based Realism): As Finland’s President, Stubb popularised the term Carney invokes, blending realism with values like human rights. This framework guides Carney’s calibrated engagements, such as the China partnership focused on trade without ideological naivety.3
These thinkers collectively underscore Carney’s thesis: integration’s promise of mutual benefit dissolves when it enables dominance, necessitating realism over idealism in trade and alliances.
References
1. https://www.pm.gc.ca/en/about
2. https://en.wikipedia.org/wiki/Mark_Carney
5. https://www.youtube.com/watch?v=miM4ur5WH3Y
6. https://www.youtube.com/watch?v=7qIUrFANCvU
7. https://www.youtube.com/watch?v=01QBT5fR-DY
