• The current international system is undergoing a profound, non-linear transformation from a US-led, post-1945 "liberal world order" towards a more fragmented, multipolar, and contested system. This shift is characterized by the erosion of multilateral institutions, the rise of regionalism, and a transition from a rules-based order to a power-based, "self-help" era.
• Upon this background "The Davos Man, and the end of an illusion" refers to a pivotal shift in global politics and economics, most recently highlighted during the 2026 World Economic Forum (WEF). It marks the transition from a world of hyper-globalization to one defined by economic nationalism and the breakdown of the post-WWII international order.

The Origin of "Davos Man"

• The term was coined by political scientist Samuel Huntington to describe a global elite—billionaires, CEOs, and high-ranking officials—who see themselves as international citizens. This group has long championed the "illusion" that global integration and open markets would inevitably lead to universal prosperity and peace.

Key Drivers of the Changing World Order

• Decline of US Hegemony & "America First": The United States is increasingly shifting from fostering a globalized, rules-based system to a policy of "offshore balancing" and protectionism, creating a power vacuum and signaling the end of the post-1989 Washington consensus.
• Rise of Revisionist Powers & The "Global South": Countries like China, Russia, India, and Brazil are challenging the Western-dominated order. The rise of China as a military and economic power, coupled with its expansionism, is directly destabilizing regional and global institutions.
• Dysfunctional Multilateralism: Global institutions like the UN and the World Trade Organization (WTO) are increasingly ineffective in managing global threats, exemplified by the weakening of the WTO’s dispute settlement mechanism.
• Polycrisis & Geopolitical Rivalry: Simultaneous, interconnected crises—including the Russia-Ukraine war, trade wars, cyber warfare, and the COVID-19 pandemic—have fragmented global cooperation.
• Rise of Alternative Forums: The emergence of groupings like BRICS to BRICS+  and the SCO (Shanghai Cooperation Organization) aims to reduce over-reliance on traditional Western powers and create new economic and development foundations.

Characteristics of the Emerging "New" Order

• Multipolarity & Fragmentation: The world is moving away from unipolarity toward a "hybrid" system with diverse regional actors, resulting in a more contested and less integrated global landscape.
• Strategic Self-Help: Nations are prioritizing national interests over international cooperation, leading to increased protectionism and nationalism.
• Geoeconomic Fragmentation: There is a notable shift toward "reshoring," increased tariffs, and the weaponization of trade policy.
• Civilizational Assertiveness: Emerging powers are invoking their own histories and cultures to shape foreign policy, moving away from Western-centric ideologies.

The End of the Illusion: Key WEF Discussion Developments

• The phrase has gained renewed significance following a landmark speech by Canadian Prime Minister Mark Carney at Davos in January 2026.
• The "Havel" Moment: Invoking former Czech leader Vaclav Havel’s words about the communist system, Carney said we were “living within a lie.” Carney compared the current global state to Václav Havel’s "living within a lie," and said “The illusion begins to crack.” stating that the world can no longer pretend that the old rules-based order is functioning .
• The Breakdown of Order: He noted that while American hegemony once provided stability, the gaps between rhetoric (mutual benefit) and reality (subordination through integration) have become too wide to ignore.
• Nationalism vs. Globalism: The "illusion" that global institutions like the WTO or UN could solve all crises is fading as "Nationalist Man" replaces "Davos Man". Nations are increasingly turning toward protectionism and "fortress" economies.  (De-Dollarisation for example)

Critical Perspectives

• "Davos Man: How the Billionaires Devoured the World": Journalist Peter S. Goodman’s book argues that this elite group has prioritized wealth accumulation over public services, exacerbating the inequality that now threatens the very system they built.
• Wealth Inequality: Reports from Oxfam highlight that the world''s richest men doubled their fortunes during the pandemic while billions grew poorer, fueling the sense that the Davos consensus was an illusion that only served the 1%.

The ‘World Minus One’ moment

• Popularized by observers including former Singaporean Prime Minister Lee Hsien Loong in July 2025 and analyzed by scholars like Amitav Acharya, this concept highlights a shift where the U.S. retreats from the multilateral, rules-based order it once created.

Key aspects of this moment include:

• "World Temporarily Minus One": Lee Hsien Loong described this as a, or perhaps temporary, situation where global trade and economic management continue, but the U.S. acts outside that system.
• Decoupling/De-Americanization: Global trade is bypassing the U.S. obstacle, with international partners deepening ties via other agreements, such as the Regional Comprehensive Economic Partnership (RCEP).
• "Indispensable Rogue": The U.S. is viewed less as the leader and more as a detached or hostile power that has broken faith in providing global public goods, noted by Amitav Acharya in Foreign Policy.
• Rise of "The Rest": The shift is leading to a more multipolar world where other nations strive to keep the system alive in anticipation of a potential U.S. return to multilateralism.
• Strategic Diversification: Companies and nations are focusing on creating supply chains that are resilient to U.S. tariff-driven, transactional trade policies.
• The term is used to describe a "new world order" where global governance, climate action, and trade proceed despite, rather than with, American involvement.

The way forward

1. Striving for a more pluralistic order : one that offers countries greater flexibility and choice. Such an order would allow nations to develop cooperation with a variety of others — far and near, regional, inter-regional and global — while not sacrificing their engagement with the UN and other multilateral bodies.
2. Regional Complement: Rising powers like India and middle powers like Canada need to develop a variety of platforms, while making sure they complement, rather than undercut each other. One example is the EU’s free trade agreement with Mercosur countries—Argentina, Bolivia, Brazil, Paraguay, and Uruguay. India should also rethink its reluctance to join the Regional Comprehensive Economic Partnership (RCEP)—the world’s largest trading group.

Conclusion

• It is useful to remind ourselves that America’s limited backing of or withdrawal from multilateralism has not led to the collapse of institutions and agreements such as the UN Convention on the Law of the Sea (UNCLOS) or the Paris Climate Agreement. With the US acting like a wrecking ball of rules and institutions, it is time to think past the self-serving label of “indispensable nation,” coined by former US Secretary of State Madeleine Albright.
• India is no longer just a participant but an "Indispensable Architect" of the new order. India has moved from a policy of non-alignment to "Multi-Alignment" or "Strategic Autonomy". This allows it to maintain friendly ties with competing powers while prioritizing its national interests.
• Its role is defined by a blend of moral leadership (seeking a more equitable world) and strategic pragmatism (securing its own growth and security) thus becoming as a true Vishwaguru.