Tag Archives: davos world economic forum

Middle powers rule. Or at least they should try to. That was the message of the erudite Canadian Prime Minister Mark Carney at Davos this week. And as he spoke there were lot of sage heads nodding in agreement.

Carney started from the premise that the old US-led rules-based world order was over, finished, kaput, dead and buried.

Without specifically naming the American president, Carney made it clear that the US president had created a “rupture” in the diplomatic fabric and that humanity was entering a darker less kind world in which might makes right.

In this world there will be two major powers—China and the United States. If Russia succeeds in Ukraine and moves on the Baltic States and possibly Moldova and Poland, it could be a third power.

In such a world the smaller countries—and what Carney called “the middle powers”, were simply there to be exploited, squeezed, trampled upon and discarded without any concern for their rights or well being. But, said the former governor of the Bank of England and Bank of Canada, there is a solution to this dark scenario: Join forces and create an economic, political, diplomatic and military bloc that protects the middle countries common values.

The middle countries need to cooperate more closely. The super powers work best by divide and conquer rule. Trump’s antipathy towards the EU is proof of that. So, to counter that policy the middle countries must not allow the US and China to divide them. They must—as much as possible—negotiate with the great powers as one bloc.

Carney’s key line at Davos was: “Middle powers must act together, because, if we are not at the table we are on the menu.”

Acting together means reduce dependence on great powers or on supply chains that can be used as leverage. It means diversifying economic, trade, energy and technology ties. Lesser dependence means lesser vulnerability.

Like-minded countries should partner with other like-minded countries to share the costs of defense, standards and resilience rather than leaving it to the great powers to set the parameters.

Mark Carney even had a name for his proposal—“variable geometry” which means countries negotiate a set of different alliances where different groups work together on specific issues based on shared values and interests.

If you want proof of the value of Carney’s words then just note Donald Trump’s reaction. He was so angry at Carney’s speech that he withdrew his offer to admit Canada to his Board of Peace. Well, if Trump doesn’t like it….

King of the World. That is effectively the job that Donald Trump is trying to create for himself with the creation of his “Board of Peace”. That is if it is successful.