The Rachman Review

Episode: Mark Carney on a World in Rupture — and What Comes Next

Host: Gideon Rachman (Financial Times)
Guest: Mark Carney, Prime Minister of Canada
Date: January 21, 2026

Episode Overview

In this special Davos edition of The Rachman Review, Gideon Rachman sits down with Mark Carney, the Canadian Prime Minister, following a widely discussed, unusually forthright speech Carney delivered at the World Economic Forum. The conversation explores how the world order is fracturing, the role of middle powers, responding to great power rivalry, Canada’s evolving foreign strategy, and the prospects for global cooperation amid rising geopolitical and economic tensions.

Key Discussion Points & Insights

1. The End of the Old World Order

[01:30–04:55] — Carney’s Davos Speech (Edited Highlights):

• Erosion of the Rules-Based International Order: Carney argues that while countries like Canada benefited from the postwar order, this system was always partially illusory—America and other powers often bent the rules.
  • Quote: “This fiction was useful and American hegemony in particular helped provide public goods… But this bargain no longer works. Let me be direct. We are in the midst of a rupture auto transition…” [02:29]
• Weaponization of Global Integration: Modern challenges—financial, health, energy, and geopolitical crises—have exposed vulnerabilities of deep integration. Great powers are turning interdependence into a weapon.
  • Quote: “Great powers have begun using economic integration as weapons... tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited.” [02:55]
• Rise of Strategic Autonomy: Countries are shifting from dependence toward self-sufficiency in energy, food, finance, and defense.
  • Quote: “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.” [03:44]
• Middle Power Collaboration: Canada aims to be proactive—building strength domestically and deepening ties with like-minded partners.
  • Quote: “We are no longer just relying on the strength of our values, but also the value of our strength.” [04:33]
  • Quote: "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.” [04:51]

2. Canada's Vulnerability and Resilience

[05:18–06:06]

• Withstanding US Pressure: Despite being highly tied to US trade, Canada has remained resilient under American tariffs and pressure.
  • Quote: “We can give ourselves far more than any foreign country can take away.” [05:52]

3. Accepting the New Reality

[06:06–07:05]

• No Return to ‘Normal’: Carney asserts the old world isn’t coming back, but Canada is not “mourning” this change—rather, it is taking action to build new international networks (citing trade agreements spanning 1.4 billion people).
  • Quote: “We believe...with others, that’s building imperfectly in steps, a new system.” [06:22]

4. The Reality of Alliances: Is NATO Pretending?

[07:05–08:13]

• NATO's Moment of Truth: While the alliance “sign stays in the window,” Carney stresses urgent need for real action, particularly for Arctic security.
  • Quote: “Clearly NATO is experiencing a test right now...the imperative is to reinforce things...in a comprehensive way that provides much greater security in the Arctic. This is the test.” [07:22]

5. Engaging China: Realpolitik Not Reliance

[08:13–09:17]

• Strategic Partnership with China: Carney pushes back on criticisms of engaging China, framing it as an affirmative, opportunity-driven strategy within clear “guardrails.”
  • Quote: “It’s not a defense...it’s offense. It’s something positive... There are huge opportunities in energy...in financial services, all of which is mutually beneficial.” [08:40]

6. Diversified Connections, Not Decoupling

[09:17–10:13]

• Building a Web of Ties: Canada prioritizes a “web” of global connections—including with China, India, Mercosur, EU—rejecting a simplistic decoupling from major powers.
  • Quote: “To miss out in that web some of the largest ones—United States...China, India, Mercosur, European Union—that’s a mistake.” [09:36]
• Nordic Partnership: Unlikely partnerships, such as Nordics plus Canada, account for a fifth of global GDP, showing emerging alliances beyond the typical East-West axis.

7. Crisis Over Greenland and Arctic Security

[10:13–12:07]

• “Standing on principle on Greenland”: Carney reaffirms Canada’s commitment to Arctic security—increasing presence, expanding submarine and air fighter fleets, and working within NATO.
  • Quote: “Russia is without question a threat in the Arctic... We have 365 day air, sea and land presence… and we intend to keep it that way.” [11:19]

8. The ‘Board of Peace’ and Gaza Crisis

[12:07–13:54]

• Canada’s Position: Carney welcomes the idea, insists it should focus on immediate humanitarian relief for Gaza and move towards a two-state solution.
  • Quote: “Our view is we need to work on the actual structure... But we will work with others... to improve...and to move onto a path to a true two state solution.” [12:19]
• Financial Commitment: Canada will contribute funds if they tangibly further peace and welfare for Palestinians.

9. Is Globalism Over?

[13:54–15:19]

• Redefining Globalism: Carney nuances the “globalist” label, arguing for cross-cultural appreciation and global problem-solving, but also grounding action in the needs of one’s own society.
  • Quote: “There are a number of like minded countries that want to work through partnership...It won’t be global, it won’t cover the globe, but it will be more powerful.” [14:17]

Memorable Quotes & Moments

• On the new world reality:
  “You cannot live within the lie of mutual benefit through integration, or when integration becomes the source of your subordination.” — Mark Carney, [03:09]
• On Canada’s approach:
  “We are calibrating our relationships so their depth reflects our values. And we’re prioritizing broad engagement to maximize our influence.” — Mark Carney, [04:09]
• On resilience under pressure:
  “We can give ourselves far more than any foreign country can take away.” — Mark Carney, [05:52]
• On global partnerships:
  “It won’t be global, it won’t cover the globe, but it will be more powerful.” — Mark Carney, [14:17]

Timestamps for Key Segments

• [01:30–04:55] Carney’s Speech: Breakdown of global order, challenges, and Canada’s new strategy
• [05:18–06:06] US pressure and Canadian economic resilience
• [06:06–07:05] No return to old world order; building new alliances
• [07:05–08:13] Reality and future of NATO
• [08:13–09:17] Engaging China: practicalities and guardrails
• [09:17–10:13] Emphasis on a diverse set of global partnerships
• [10:13–12:07] Greenland, Arctic security, and Russia
• [12:07–13:54] Canada’s approach to the Board of Peace and the Gaza situation
• [13:54–15:19] Carney on the fate and meaning of ‘globalism’

Tone and Style

Mark Carney is direct, pragmatic, and optimistic—acknowledging the erosion of postwar global order but advocating for active, principled engagement and resilience. Rachman’s questioning is incisive and at times pointed, bringing out both the strategic calculations and ethical dimensions of Canadian policy.

This episode delivers a compelling discussion about how middle powers like Canada must navigate a fractured world, balancing principle and realpolitik, and forging pragmatic new alliances.