If you thought this series was dead because it wasn’t featured up top for a while, It’s not. I just haven’t found one I wanted to talk about since March of 2025 apparently. Mark Carney is Canada’s current Prime Minister as of this writing. He was elected after Justin Trudeau resigned. He’s also really good at economics and managing money. Being at the World Economic Forum should be right up his alley. He has also managed to do his job and stay out of trouble. He has been good for all Canadians whether they voted for him or not. Those are the main things to know about him.
For those of you who can’t remember how this usually works. It’s been a while, if I can find the video of the speech, I would put it here like this.
Following that would be the transcript in white.
My comments would appear throughout the transcript in yellow.
Hopefully that makes enough sense.
So without further to do
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Thank you, Larry.
Larry is the moderator. He’s pretty cool. At least, that’s what I imagine.
It is both a pleasure, and a duty, to be with you tonight in this pivotal moment that Canada and the world going through.
To be with Larry as much as the rest of them.
Today I will talk about a rupture in the world order, the end of a pleasant fiction and the beginning of a harsh reality, where geopolitics, where the large, main power, geopolitics, is submitted to no limits, no constraints.
Limits are what keeps things fun for everyone.
On the other hand, I would like to tell you that the other countries, especially intermediate powers like Canada, are not powerless. They have the capacity to build a new order that encompasses our values, such as respect for human rights, sustainable development, solidarity, sovereignty and territorial integrity of the various states.
Wait, we are only an intermediate power? How do you figure that out.
The power of the less power starts with honesty.
[Carney returns to speaking in English]
It seems that every day we’re reminded that we live in an era of great power rivalry, that the rules based order is fading, that the strong can do what they can, and the weak must suffer what they must.
Couldn’t we cooperate or something?
And this aphorism
of Thucydides
I have no idea who he is. Here comes Wikipedia.
Thucydides (/θjuːˈsɪdɪˌdiːz/ thew-SID-ih-deez; Ancient Greek: Θουκυδίδης, romanised: Thoukudídēs [tʰuːkydǐdɛːs]; c. 460 – c. 400 BC) was an Athenian historian and general. His History of the Peloponnesian War recounts the fifth-century BC war between Sparta and Athens until the year 411 BC. Thucydides has been dubbed the father of “scientific history” by those who accept his claims to have applied strict standards of impartiality and evidence-gathering and analysis of cause and effect, without reference to intervention by the gods, as outlined in his introduction to his work.[3][4][5]
Thucydides has been called the father of the school of political realism, which views the political behaviour of individuals and the subsequent outcomes of relations between states as ultimately mediated by, and constructed upon, fear and self-interest.[6] His text is still studied at universities and military colleges worldwide.[7] The Melian dialogue is regarded as a seminal text of international relations theory, while his version of Pericles’s Funeral Oration is widely studied by political theorists, historians, and students of the classics. More generally, Thucydides developed an understanding of human nature to explain behaviour in such crises as plagues, massacres, and wars.[8]
is presented as inevitable, as the natural logic of international relations reasserting itself.
And faced with this logic, there is a strong tendency for countries to go along to get along, to accommodate, to avoid trouble, to hope that compliance will buy safety.
He’s talking about how the United States wants other countries to bow to them. Actually, it’s not the whole United States that wants this, just one guy and his friends really.
Well, it won’t.
So, what are our options?
In 1978, the Czech dissident Václav Havel, later president, wrote an essay called The Power of the Powerless, and in it, he asked a simple question: how did the communist system sustain itself?
And his answer began with a greengrocer.
Every morning, this shopkeeper places a sign in his window: ‘Workers of the world unite’. He doesn’t believe it, no-one does, but he places a sign anyway to avoid trouble, to signal compliance, to get along. And because every shopkeeper on every street does the same, the system persist – not through violence alone, but through the participation of ordinary people in rituals they privately know to be false.
Havel called this “living within a lie”.
The system’s power comes not from its truth, but from everyone’s willingness to perform as if it were true, and its fragility comes from the same source. When even one person stops performing, when the greengrocer removes his sign, the illusion begins to crack. Friends, it is time for companies and countries to take their signs down.
For decades, countries like Canada prospered under what we called the rules-based international order. We joined its institutions, we praised its principles, we benefited from its predictability. And because of that, we could pursue values-based foreign policies under its protection.
Everyone else was working together and getting along whether they agreed with eachother or not.
We knew the story of the international rules-based order was partially false that the strongest would exempt themselves when convenient, that trade rules were enforced asymmetrically. And we knew that international law applied with varying rigour depending on the identity of the accused or the victim.
This fiction was useful, and American hegemony, in particular, helped provide public goods, open sea lanes, a stable financial system, collective security and support for frameworks for resolving disputes.
So, we placed the sign in the window. We participated in the rituals, and we largely avoided calling out the gaps between rhetoric and reality.
This worked for a really long time. However, now we could be taken advantage of for it.
This bargain no longer works. Let me be direct. We are in the midst of a rupture, not a transition.
Over the past two decades, a series of crises in finance, health, energy and geopolitics have laid bare the risks of extreme global integration. But more recently, great powers have begun using economic integration as weapons, tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited.
You cannot live within the lie of mutual benefit through integration, when integration becomes the source of your subordination.
He said what I said with bigger words.
The multilateral institutions on which the middle powers have relied – the WTO, the UN, the COP – the architecture, the very architecture of collective problem solving are under threat. And as a result, many countries are drawing the same conclusions that they must develop greater strategic autonomy, in energy, food, critical minerals, in finance and supply chains.
And this impulse is understandable. A country that can’t feed itself, fuel itself or defend itself, has few options. When the rules no longer protect you, you must protect yourself.
But let’s be clear eyed about where this leads.
A world of fortresses will be poorer, more fragile and less sustainable. And there is another truth. If great powers abandon even the pretense of rules and values for the unhindered pursuit of their power and interests, the gains from transactionalism will become harder to replicate.
Hegemons cannot continually monetize their relationships.
Leadership or dominance, especially by one country or social group over others.
The bigger the words, the less certain people realize they are being made fun of.
Allies will diversify to hedge against uncertainty.
They’ll buy insurance, increase options in order to rebuild sovereignty – sovereignty that was once grounded in rules, but will increasingly be anchored in the ability to withstand pressure.
This room knows this is classic risk management. Risk management comes at a price, but that cost of strategic autonomy, of sovereignty can also be shared.
Collective investments in resilience are cheaper than everyone building their own fortresses. Shared standards reduce fragmentations. Complementarities are positive sum. And the question for middle powers like Canada is not whether to adapt to the new reality – we must. The question is whether we adapt by simply building higher walls, or whether we can do something more ambitious.
Now Canada was amongst the first to hear the wake-up call, leading us to fundamentally shift our strategic posture.
He’s good with money management.
Canadians know that our old comfortable assumptions that our geography and alliance memberships automatically conferred prosperity and security – that assumption is no longer valid. And our new approach rests on what Alexander Stubb, the President of Finland, has termed “value-based realism”.
Or, to put another way, we aim to be both principled and pragmatic – principled in our commitment to fundamental values, sovereignty, territorial integrity, the prohibition of the use of force, except when consistent with the UN Charter, and respect for human rights, and pragmatic and recognizing that progress is often incremental, that interests diverge, that not every partner will share all of our values.
So, we’re engaging broadly, strategically with open eyes. We actively take on the world as it is, not wait around for a world we wish to be.
We are calibrating our relationships, so their depth reflects our values, and we’re prioritizing broad engagement to maximize our influence, given and given the fluidity of the world at the moment, the risks that this poses and the stakes for what comes next.
And we are no longer just relying on the strength of our values, but also the value of our strength.
We are building that strength at home.
Since my government took office, we have cut taxes on incomes, on capital gains and business investment. We have removed all federal barriers to interprovincial trade. We are fast tracking a trillion dollars of investments in energy, AI, critical minerals, new trade corridors and beyond. We’re doubling our defence spending by the end of this decade, and we’re doing so in ways that build our domestic industries.
And we are rapidly diversifying abroad. We have agreed a comprehensive strategic partnership with the EU, including joining SAFE, the European defence procurement arrangements. We have signed 12 other trade and security deals on four continents in six months. The past few days, we’ve concluded new strategic partnerships with China and Qatar. We’re negotiating free trade pacts with India, ASEAN, Thailand, Philippines and Mercosur.
We’re doing something else. To help solve global problems, we’re pursuing variable geometry, in other words, different coalitions for different issues based on common values and interests. So, on Ukraine, we’re a core member of the Coalition of the Willing and one of the largest per capita contributors to its defence and security.
On Arctic sovereignty, we stand firmly with Greenland and Denmark, and fully support their unique right to determine Greenland’s future.
There’s no sense messing with us.
Our commitment to NATO’s Article 5 is unwavering, so we’re working with our NATO allies, including the Nordic Baltic Gate, to further secure the alliance’s northern and western flanks, including through Canada’s unprecedented investments in over-the-horizon radar, in submarines, in aircraft and boots on the ground, boots on the ice.
Canada strongly opposes tariffs over Greenland and calls for focused talks to achieve our shared objectives of security and prosperity in the Arctic.
On plurilateral trade, we’re championing efforts to build a bridge between the Trans Pacific Partnership and the European Union, which would create a new trading bloc of 1.5 billion people. On critical minerals, we’re forming buyers’ clubs anchored in the G7 so the world can diversify away from concentrated supply. And on AI, we’re cooperating with like-minded democracies to ensure that we won’t ultimately be forced to choose between hegemons and hyper-scalers.
This is not naive multilateralism, nor is it relying on their institutions. It’s building coalitions that work – issues by issue, with partners who share enough common ground to act together.
In some cases, this will be the vast majority of nations.
What it’s doing is creating a dense web of connections across trade, investment, culture, on which we can draw for future challenges and opportunities.
Argue, the middle powers must act together, because if we’re not at the table, we’re on the menu.
But I’d also say that great powers, great powers can afford for now to go it alone.
He’s agreeing with the USA in that they don’t need the help of other countries anymore.
They have the market size, the military capacity and the leverage to dictate terms. Middle powers do not.
But when we only negotiate bilaterally with a hegemon, we negotiate from weakness. We accept what’s offered. We compete with each other to be the most accommodating.
This is not sovereignty. It’s the performance of sovereignty while accepting subordination. In a world of great power rivalry, the countries in between have a choice – compete with each other for favour, or to combine to create a third path with impact.
We shouldn’t allow the rise of hard power to blind us to the fact that the power of legitimacy, integrity and rules will remain strong, if we choose to wield them together – which brings me back to Havel.
What does it mean for middle powers to live the truth?
Canada is only a middle power? I can’t believe that. Maybe it’ll make sense later.
First, it means naming reality. Stop invoking rules-based international order as though it still functions as advertised. Call it what it is – a system of intensifying great power rivalry, where the most powerful pursue their interests, using economic integration as coercion.
It means acting consistently, applying the same standards to allies and rivals. When middle powers criticize economic intimidation from one direction, but stay silent when it comes from another, we are keeping the sign in the window.
It means building what we claim to believe in, rather than waiting for the old order to be restored. It means creating institutions and agreements that function as described. And it means reducing the leverage that enables coercion – that’s building a strong domestic economy. It should be every government’s immediate priority.
And diversification internationally is not just economic prudence, it’s a material foundation for honest foreign policy, because countries earn the right to principled stands by reducing their vulnerability to retaliation.
We need to do new things.
o Canada. Canada has what the world wants. We are an energy superpower. We hold vast reserves of critical minerals. We have the most educated population in the world. Our pension funds are amongst the world’s largest and most sophisticated investors. In other words, we have capital, talent… we also have a government with immense fiscal capacity to act decisively. And we have the values to which many others aspire.
That’s why it’s great to live here. Bragging about it too much may give a certain someone more ideas or justification for those ideas he already has.
Canada is a pluralistic society that works. Our public square is loud, diverse and free. Canadians remain committed to sustainability. We are a stable and reliable partner in a world that is anything but.. A partner that builds and values relationships for the long term.
And we have something else. We have a recognition of what’s happening and a determination to act accordingly. We understand that this rupture calls for more than adaptation. It calls for honesty about the world as it is.
We are taking the sign out of the window. We know the old order is not coming back. We shouldn’t mourn it. Nostalgia is not a strategy, but we believe that from the fracture, we can build something bigger, better, stronger, more just. This is the task of the middle powers, the countries that have the most to lose from a world of fortresses and most to gain from genuine cooperation.
The powerful have their power.
But we have something too – the capacity to stop pretending, to name reality, to build our strength at home and to act together.
Let’s get it going.
That is Canada’s path. We choose it openly and confidently, and it is a path wide open to any country willing to take it with us. Thank you very much.
It’s good to keep your friends.
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If you thought this was long, Chapter 7 will be longer for sure. That’s right, there’s more where this came from.