When a world leader calls the end of an era the corner oracle

At the World Economic Forum in Davos, Canadian Prime Minister Mark Carney did something rare in global politics. He spoke bluntly about the failure of the global system – not because it is obsolete, but because its chief architect has been dismantling it from within.

His talk was neither bombastic nor theatrical. It was measured, sober and therefore all the more forceful. It was a speech that will go down in history as marking the end of the current world order and the end of American hegemony.

The core message of Carney’s address was unmistakable. That the global order, designed and led by the United States since the end of World War II, is unraveling because the US itself is increasingly weaponizing the very mechanisms that sustain it. Free trade, geopolitical alliances and even the US dollar – once pillars of stability – are now deployed as instruments of pressure, punishment and political leverage.

For eight decades, the world order rested on an unspoken agreement. That the US would underwrite security, open markets and a stable financial architecture. In return, allies would align strategically and integrate economically with America. Sure, the system was imperfect and often asymmetric. But it was predictable. That predictability allowed countries to plan, invest and prosper within its established rules.

That predictability is purposely being broken by Donald Trump. Trade is no longer treated as mutually beneficial, but as a zero-sum race with winners and losers. Tariffs are used as political threats rather than economic tools. Alliances are viewed less as long-term commitments but more as transactions that can be reneged. Even the US dollar and SWIFT system, once a neutral foundation of global finance, are now used to pressure and punish countries into submission. When access to trade, money and security depends on loyalty instead of rules, the global order shifts from cooperation to coercion.

Trump’s actions reflect the classic behavior of a declining empire desperate to hold on to its hegemony. Confronted with de-industrialization, crippling debt, military fatigue and the rise of competing powers, Trump rejects the right path of internal reform in favor of quick-fix solutions. The latter being to pressure friends and foes to gain leverage. His tactics include squeezing allies, weaponizing economic ties and using global institutions to force compliance.

At home, he creates the appearance of restored strength. In reality, he is accelerating the decline of America. By dismantling the rules that amplified American power, Trump hastens the erosion of trust, legitimacy and consent – the very foundations of America’s sustained hegemony.

Middle powers conundrum

The impact of Trump’s actions is felt around the world and middle-power countries are affected the most. Canada counts itself as a middle-power country, as is most developed and emerging economies, including the Philippines.

Middle-power countries do best when international rules are clear and fairly applied. Why? Because rules protect them from being pushed around by stronger powers like the China, Russia and the US itself. As rules weaken, middle powers are left with bad options: they can capitulate to stronger countries; spend beyond their means to match the power of their bullies or stay vague and neutral – inviting pressure from all sides. Carney’s speech captured the growing concern shared by middle-power leaders.

Carney’s solution is collective strength. He urges middle powers to unite, coordinate and cooperate – aligning policies, pooling influence and acting together so they can resist economic and political coercion. Together, middle powers can shape the global system rather than be shaped by the ambitions of superpowers.

A masterstroke

Carney’s speech was not only timely, it was the height of fearlessness. It was delivered at a time when many leaders tiptoe around Trump for fear of retribution. Carney spoke without theatrical denunciation. He was measured, mature and surgical.

The speech was a masterstroke on Canada’s part. In the face of increasing harassment and economic pressure from the US, Carney could have chosen silence or accommodation. Instead, he chose leadership. By framing its concerns as systemic rather than bilateral, Canada elevated its predicament to the global conversation.

Canada did not plead for exemption. Rather, it argued for principle. In doing so, Carney positioned Canada not as a victim of Trump’s bullying, but as a champion of international stability.

The juxtaposition between Carney and Trump’s speeches at Davos could not have been sharper. One spoke in the language of responsibility, stewardship and shared fate. The other spoke with grievances, insults and threats. One understood that leadership requires restraint and level-headedness. The other mistakes volatility for strength. One plans for the collective good over the long term. The other works for short-term unilateral wins.

History rarely announces its turning points so clearly. At Davos, Mark Carney did.

The Philippines in the new world order

For the Philippines, preparing for the new world order begins with accepting two facts: that dependence is risk and strategic autonomy is strength.

What is strategic autonomy? It is the ability to make national security and economic decisions based on the country’s own interests without being forced to submit to greater powers. To achieve strategic autonomy, a country must first be able to defend and feed itself. To provide the basic needs such as shelter, health care and education without external help. It also means having the financial strength to withstand external shocks and crises. These are fundamental.

Strategic autonomy is further fortified by forming alliances that are firm but not exclusive. This means forging security cooperation agreements while actively expanding trade, investment and development ties with like-minded partners.

As you can tell, there is a lot of work to do. It all starts by having a Chief Executive that is forward looking, strategic, responsible and transformative. 2028 cannot come soon enough.

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Email: [email protected]. Follow him on Twitter @aj_masigan