Carney warns global order is fading as rivalry reshapes world

Canadian Prime Minister Mark Carney on Tuesday said the foundations of the post-World War II international system are eroding, warning that countries like Canada must rethink their strategies in a world marked by intensifying power competition. Speaking at the World Economic Forum in Davos, Switzerland, Carney said the previous global order would not return and cautioned against clinging to outdated assumptions about security and prosperity.

Old assumptions no longer hold

Addressing business and political leaders, Carney said geography and alliance memberships can no longer be taken as automatic guarantees of stability. “We know the old order is not coming back. We shouldn’t mourn it. Nostalgia is not a strategy,” he said, adding that reliance on inherited advantages has become increasingly risky as global dynamics shift.

Economic tools turned into weapons

Carney warned that major powers are now using economic integration as a means of pressure rather than cooperation. He pointed to tariffs, financial systems and supply chains being deployed as tools of leverage, arguing that nations cannot assume integration will always deliver shared benefits when it can also create dependence and vulnerability. He also noted that institutions such as the World Trade Organization and the United Nations are facing growing strain.

Middle powers urged to cooperate

Rejecting isolationism, Carney said a fragmented world would be “poorer, more fragile and less sustainable.” He argued that if major powers abandon even symbolic commitments to rules and values, transactional relationships will weaken and allies will seek alternatives. “The middle powers must act together because if you are not at the table, you are on the menu,” he said.

Canada’s strategic shift

Carney said Canada has already begun adjusting its strategic posture by boosting domestic resilience and widening its global reach. Measures include tax reductions, removing interprovincial trade barriers, accelerating investment and plans to double defence spending by the end of the decade. He said Ottawa has signed multiple trade and security agreements across four continents in recent months and is negotiating further deals with India, ASEAN countries and MERCOSUR members Argentina, Brazil, Paraguay and Uruguay.

Concluding his speech, Carney said Canada’s energy resources, critical minerals and skilled workforce provide leverage in a changing global system. “When the rules no longer protect you, you must protect yourself,” he said, adding that from today’s fractures, countries can still build a stronger and more sustainable future.