» But let’s be clear-eyed about where this leads. A world of fortresses will be poorer, more fragile and less sustainable.
And there’s 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. 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.
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. «
~ Mark Carney, WEF Annual Meeting; Davos, Switzerland, January 20, 2026.
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