Each year, the global elite – political leaders, CEOs, and influential thinkers – descend upon the Swiss Alps for the World Economic Forum to debate the future. This year, however, “Living within a lie,” a concept articulated in 1978 by Czech dissident Václav Havel, became a focal point of Canadian Prime Minister Mark Carney’s address to the World Economic Forum.
Carney used the phrase to argue that middle powers can no longer rely on inherited narratives about global stability and must confront a more coercive and fragmented international landscape. The idea originates in The Power of the Powerless, Havel’s influential essay written during the late communist period.
Carney’s speech followed renewed threats by former US president Donald Trump to use tariffs and economic pressure against allies, alongside his repeated public statements expressing interest in acquiring Greenland — remarks that have unsettled Nato partners and raised questions about the limits of alliance solidarity.
Havel described how authoritarian systems endure not just through repression but through routine acts of compliance by ordinary citizens who publicly perform beliefs they privately reject.
The greengrocer and the mechanics of conformity
Havel illustrated his argument through the figure of a greengrocer who places a political slogan in his shop window each morning. The act is not an expression of belief. It is a signal of obedience, intended to avoid scrutiny and secure a quiet life.
According to Havel, such gestures accumulate into a shared social ritual. The system’s power rests less on persuasion than on the collective decision to behave as if the official story were true. When that performance becomes universal, the lie acquires the force of reality.
Havel argued that the system’s weakness is embedded in the same mechanism. The moment someone refuses the ritual, the illusion begins to fracture.
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From post-totalitarianism to geopolitics
Carney adapted Havel’s framework to contemporary international politics. For decades, he said, countries like Canada benefited from what was described as a rules-based international order. Its institutions offered predictability, dispute resolution and space for values-driven diplomacy.
Yet, Carney acknowledged, many governments understood that the system operated unevenly. Enforcement depended on power. Rules bent for the strongest actors. The language of multilateralism often obscured these realities.
The arrangement endured because it was useful. That usefulness, Carney argued, has now expired. Economic integration has increasingly been deployed as a means of pressure. Trade, finance and supply chains have become instruments of leverage rather than neutral channels of co-operation.
That tension has been made explicit in recent months by Trump’s threats to impose tariffs on European allies and the UK, and his renewed assertion that US control of Greenland is a strategic necessity — statements Denmark and Greenland’s own government have firmly rejected.
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Naming reality in a fractured order
A concept articulated in 1978 by Czech dissident Václav Havel, became a focal point of Prime Minister Mark Carney’s address.
Carney described the current moment as a rupture. The old assumptions, he said, no longer protect middle powers. Persisting in the language of a system that no longer functions as promised amounts to a form of strategic self-deception.
In Havel’s terms, Carney suggested, governments continue to keep the sign in the window. Living truthfully, in this context, means recognising the world as it is. It also requires applying standards consistently, rather than condemning coercion selectively. Silence in the face of pressure from favoured partners, Carney warned, perpetuates the same performative compliance Havel described.
The moral cost of managed illusion
The cultural reach of Havel’s phrase extends beyond diplomacy. In a recent essay, writer John Ganz, author of ‘When the Clock Broke: Con Men, Conspiracists, and How America Cracked Up in the Early 1990s‘ argued that the most corrosive feature of contemporary politics is not open repression but the exhaustion created by constant distortion and strategic untruths. Over time, such conditions encourage resignation.
That reading aligns with Havel’s original concern. Living within a lie requires adaptation. The danger lies in how quickly adaptation becomes habit, and habit becomes normality.
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Middle powers and the choice ahead
Carney framed Canada’s recent policy shifts as an attempt to step outside that habit. Increased defence spending, trade diversification and new strategic partnerships were presented as measures designed to reduce vulnerability and restore room for honest policy choices.
For Carney, domestic resilience and international diversification are preconditions for credibility. Countries that remain exposed to retaliation, he argued, struggle to act consistently or speak plainly.
When Havel wrote, it was not for global forums or heads of government. His audience was a society trapped in routine falsehood. Yet nearly half a century later, his language resonated in Davos because the underlying question remains unresolved.
How much of political life rests on performance, and how much on truth.
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Carney’s speech left that question open. The challenge he posed was that to stop repeating stories that no longer describe reality, and to accept the consequences of doing so.