This article was originally published in the Global Soft Power Index 2023.
Place Branding Director, Brand Finance
2022 was marked by a number of events that have tested the Soft Power of all nations. The Russian invasion of Ukraine, protests in Iran, and the passing of Queen Elizabeth II were among the most prominent.
As the economy began recovering from the COVID-19 pandemic, it was hit by inflation that seems unlikely to slow down anytime soon, with governments trying to manage the energy crisis as best as they can to protect consumers and businesses. This was the background music playing as Brand Finance conducted the research for this new report.
The Global Soft Power Index is a research study into the perceptions of 121 nation brands from around the world. It is based on the most comprehensive and wide-ranging fieldwork of its kind, with responses gathered from over 100,000 people across more than 100 markets. The Global Soft Power Index 2023 is the fourth iteration of this study, which Brand Finance hopes to continue conducting annually. The United States of America has again claimed the top spot with a score of 74.8 out of 100 followed by the United Kingdom (67.3), and Germany (65.8).
There is hardly any change among the world's top 10 Soft Power superpowers this year, with a notable exception of the United Arab Emirates (55.2) moving up to 10th place as the first nation from the Middle East to achieve that feat.
Further down the ranking, we are seeing much more disruption and movement. While nations have turned to Soft Power to restore trade and tourism after a devastating health crisis, the world order has again been disrupted by the hard power of the Russian invasion of Ukraine. An event that would be hard to believe were it not for the intensity of the images we have been seeing for months and the consequences the conflict is having on politics and the economy alike.
On Soft Power, Russia has already lost to Ukraine
At dawn on 24th February 2022, President Vladimir Putin launched missile attacks on Kyiv starting the biggest military conflict in Europe since World War II. One year on, the global economy remains weakened by the war due to major trade disruptions and food and fuel price shocks, which are contributing to rising inflation and tighter global financial conditions.
While Russia’s Familiarity and Influence scores have gone up because of the impact that its decision to go to war has had on lives the world over, the nation’s Reputation has been severely damaged. Russia’s Reputation ranking, one of the main determinants of Soft Power, has fallen from 23rd to an abysmal 105th resulting in an overall Index erosion of -1.3 points (more than any other nation) and causing it to drop out of the top 10 down to 13th. It also now ranks 119th for the People & Values pillar and for the “good relations with other countries” attribute in International Relations. And these are not the only consequences that Russia has suffered, global sanctions have caused the nation’s perceptions as “easy to do business in and with" to fall by 61 places and having “future growth potential” by 74 places. The nation has lost ground relative to others in the Index on all 35 attributes apart from “affairs I follow closely”.
At the same time, Ukraine gains +10.1 points (more than any other nation) driven by a steep increase in Familiarity and Influence and jumps 14 ranks up to 37th from 51st the previous year. Ukraine now ranks 3rd in the world for “affairs I follow closely” and sees significant gains across attributes accentuated in official communications and media reports, such as “respects law and human rights” (up 69 to 29th), “tolerant and inclusive” (up 63 to 44th), and “leader in technology and innovation” (up 26 to 50th). The popularity of Ukraine’s President Volodymyr Zelenskyy, his ministers, and advisors, results in the nation going up 36 ranks to 12th on “internationally admired leaders”.
Nevertheless, many other attributes are affected negatively, from the obvious “safe and secure” (down 60 to 118th) or “great place to visit” (down 38 to 118th), to perceptions of Ukraine’s culture and people as the focus shifts to their suffering.
Perceptions of other nation brands have also been affected by the conflict. Since the beginning of the war, Poland has played a particularly important role, taking in more Ukrainian refugees than anyone else and advocating for diplomatic, economic, and military assistance to Kyiv as part of the West’s response to Russia’s aggression. As a result, Poland’s Familiarity and Influence have increased, and the overall Index score improved by +6.9 points, moving it up seven places to 33rd – its all-time highest ranking. It records some of its biggest gains across attributes associated with humanitarian support for Ukraine and its people, such as “generous” (up 62 to 29th), “tolerant and inclusive” (up 60 to 24th), and “helpful to countries in need” (up 33 to 15th).
USA unrivalled as the Soft Power superpower
Under President Joe Biden, the United States reclaimed its top spot in the ranking in last year’s Index and has further increased the lead over other nation brands this year. The USA's overall score is up +4.1 points to an all-time high of 74.8. With the strengthening of the dollar and widely publicised large-scale investment projects by the federal government, perceptions of the US economy are on the up, resulting in America claiming the top spot for Business & Trade from China.
The US also benefits from the introduction of a new “invests in space exploration” attribute in the Education & Science pillar, where it ranks 1st in the world. In fact, the US ranks 1st in twelve and among the top 3 in four more categories, bagging 16 Soft Power medals – more than any other nation brand in the Index. The US records stable scores across most categories. However, mounting problems with shootings, gun crime, and police violence continue to erode perceptions of the country as “safe and secure” (down from 21st in 2020 to 62nd this year) and of its people as “friendly” (down from 5th in 2020 to 103rd this year).
The end of the second Elizabethan era
In the United Kingdom, 2022 will be remembered as the end of an era. The passing of Queen Elizabeth II at the age of 96, after 70 years on the throne, shook the nation. At the same time, intense media coverage of the period of mourning and the monarch’s spectacular funeral attended by the world’s leaders reminded the world of Britain’s greatest Soft Power assets.
The UK has defended its 2nd position in the Index this year, with an increase of +2.4 points to 65.8, recording increases across a number of attributes, from “good relations with other countries” (up 7 ranks) to “appealing lifestyle” (up 5 ranks).
Last year will also go down in British history for its three prime ministers. After the fall of Boris Johnson’s government as a result of “Partygate”, Liz Truss shot to power as quickly as she lost it to Rishi Sunak, becoming the country’s shortest-serving prime minister ever. While the nation’s overall Reputation has not been dented, perceptions of the UK as “politically stable and well-governed” declined relative to others (down 10 ranks).
Germany post-Merkel holds its own
Many worried about Germany losing its international standing after the departure of Angela Merkel. A year later, the nation has largely held its own, retaining 3rd position in the Index, with an increase of +1.2 points to 65.8. Olaf Scholz’s government has struggled with criticism of its hesitant response to Russia’s invasion of Ukraine, but this has had little impact on the nation’s perceptions among the global general public.
Germany’s nation brand strength transcends political crises, proving its resilience regardless of who is in charge.
China retains "future growth potential" despite COVID-19 restrictions
Although China has seen marginal growth of its Global Soft Power Index score (+0.8 to 65.0), it dropped in the ranking from 4th in 2022 to 5th in 2023, overtaken by Japan. While most nations accelerated their global engagement across trade, investment, tourism, and talent, China remained closed last year, maintaining a "zero COVID" policy.
Reduced mental and physical availability of China’s nation brand among global audiences undermined its ability to improve perceptions at the same pace as competing economies, resulting in some relative declines, such as in the People & Values (down 57 to 95th) and Media & Communication (down 12 to 24th) pillars.
Nevertheless, on many metrics China has largely defended its position from last year and it remains 2nd in the world for Influence, behind only the US, and 3rd in the Education & Science pillar, with particularly strong performance across “leader in technology and innovation” (2nd), “leader in science” (3rd), and the new attribute: “invests in space exploration” (3rd).
The nation also maintains its global #1 positions for “easy to do business in and with” and “future growth potential”, pointing to the resilience of its Business & Trade credentials, despite an overall rank drop for the pillar to 3rd. Revised economic growth forecasts by the International Monetary Fund confirm that China is back in business in 2023, predicting 5.2% GDP growth, above the level of previous expectations as private consumption rebounds following the country’s opening post-COVID at the end of 2022.
UAE enters top 10 for the first time
With otherwise little change in the top 10, the performance of the United Arab Emirates is a standout. For the fourth year running, the Emirates achieved the highest score of any Middle Eastern nation brand, but this year’s increase of +3.2 to 55.2 has meant a jump of five ranks to allow it to claim 10th position in the global ranking for the first time.
Both Reputation and Influence of the Gulf nation have seen notable increases this year. The UAE was one of the first economies to roll out mass vaccination and open during the COVID-19 pandemic, giving it a head start ahead of others and allowing it to maintain positive perceptions across the Business & Trade pillar with a particular improvement on the “future growth potential” attribute, where it ranks 3rd globally (up 8 ranks).
The successful showcase of the Emirates as a global trade hub thanks to EXPO 2020 has also undoubtedly provided a significant boost. At the same time, the UAE is one of the largest donors of foreign aid as a percentage of GDP, which is recognised by the global general public counting it among the world’s most “generous” nations – 3rd (up 7 ranks).
Perceptions of the UAE’s Governance and International Relations are on the up too and the nation’s salience is only expected to grow. The Emirates Mars Mission has landed the UAE at 8th for “invests in space exploration”, while hosting the world’s most high-profile climate conference, COP 28, will put the nation firmly in the spotlight in 2023.
The historically oil-heavy economy continues to increase its commitment to diversification, innovation, and investment in a more Sustainable Future. The UAE already scores relatively high on the new Soft Power pillar of that name, placing 19th globally.
Gulf nations on the rise
Other Gulf nations have also seen a surge in Global Soft Power Index scores in 2023, explained by a growing salience at a time of a global energy crisis sparked by Russia’s invasion of Ukraine.
Home to one-quarter of the world’s known oil reserves and with the largest output of oil production globally, Saudi Arabia has gone up to 9th in the Influence ranking and enters the overall Index top 20 for the first time at 19th. As the Kingdom has played a crucial role in providing energy security for the rest of the world, its rank for “strong and stable economy” has also increased to 14th (up 7 ranks), resulting in an improvement of the whole Business & Trade pillar score. But Saudi Arabia is looking beyond oil – showcasing its tourism appeal on the one hand and commitment to energy transition on the other. It ranks 11th in the world for “rich heritage” and places highly for “invests in green energy and technologies” (25th) as well as “sustainable cities and transport” (27th). Through Vision 2030, the Kingdom has emphasised its commitment to a transition to a more sustainable economy. This has included significant investment in renewable energy, particularly through the development of the hydrocarbon industry.
Fellow Gulf nation Qatar has also seen impressive gains in this year’s Global Soft Power Index. In 2022, Qatar hosted the world’s most widely viewed sporting event, the FIFA Football World Cup. Organising a major sporting event can really put a nation brand on the map. With improvements recorded across the three KPIs of Familiarity, Reputation, and Influence, Qatar enters the top 25 for the first time, coming 24th in the overall Index ranking. Despite mixed press in the run up to the event, the tournament was a major success, enhanced by a blockbuster final which saw Argentina take the coveted trophy. Qatar showcased its key Soft Power assets to a global audience of fans in the stadiums and in front of TV screens, improving perceptions particularly across Culture & Heritage attributes. But also scores for attributes associated with the controversies, such as “respects law and human rights” (up 11 ranks) and “tolerant and inclusive” (up 12 ranks), have seen improvements.
Nordics benefit from sustainability perceptions
Nordic countries, Sweden (11th), Norway (17th), Denmark (18th), Finland (22nd), and Iceland (34th) all benefited from the enhanced measurement of environmental sustainability perceptions in this year’s Global Soft Power Index. All boosted their Soft Power scores, with Sweden, Finland, and Iceland also rising 3 places in the ranking each. Leading the pack, Sweden ranks 3rd on the new Sustainable Future pillar, behind only Germany and Japan, scoring highly across the board in all four attributes that constitute it. Currently around 60% of Sweden’s national energy supply comes from renewable sources, with a plan to go 100% fossil-fuel-free by 2045.
As sustainability becomes an ever-more-important factor for Soft Power, Sweden and other Nordic countries will have an important role to play in setting the pace for the energy transition. They can act as working examples of the successful incorporation of sustainability into all levels of society and business.
Top 30 without Latin American or Sub-Saharan African nations
Latin American and Sub-Saharan African nation brands consistently underperform in the Index. Brazil is Latin America’s highest ranked this year at 31st, down from 28th in 2022. The country has faced a difficult few years due to a high COVID-19 toll and a tumultuous political situation. Its government, under the presidency of populist Jair Bolsonaro, was criticised for its response to the pandemic and its environmental policy. On top of that, encouraged by the dubious example of President Donald Trump’s supporters in the US, hard-line Bolsonaro followers stormed Brazil’s Congress, following political rival Lula da Silva’s inauguration in January 2023.
Brazil’s volatile political environment gained worldwide coverage and has clearly affected its Soft Power standing. Brazil scores significantly below the global average for the Governance pillar, in which it dropped by 28 ranks to the abysmal 86th place globally, with particular lows for “high ethical standards and low corruption” (115th), “safe and secure” (108th), and “politically stable and well-governed” (88th) metrics. Nevertheless, the change of presidency offers a new opening and a new hope for Brazil’s Governance perceptions. Furthermore, Brazil has a strong global Familiarity, ranking 12th, and continues to perform well in the Culture & Heritage pillar, where it comes 9th. Brazilians are perceived as the world’s “leaders in sports” and more “fun” than any other nation globally.
South Africa is the regional leader in Sub-Saharan Africa, although like Brazil it has also dropped in the ranking this year – to 40th place globally, down from 34th last year. The country continues to face significant challenges in its labour market; high poverty levels and economic inequality; security issues and high crime rates; high inflation levels; and structural constraints, such as energy shortages. This has resulted in relative declines across all pillars except Culture & Heritage for which it has recorded minor growth. Despite seeing a 13-position reduction in the Business & Trade rank to 45th, the nation continues to be regarded as holding significant “future growth potential”, ranking 5th globally – its strongest performance across all metrics.
India's performance improves, but offers plenty more potential
India has improved its performance in the Global Soft Power Index by one spot, inching up to 28th position in the ranking. The nation performs particularly well in the Culture & Heritage pillar – ranking 19th globally. It is firmly within the top 10 for three out of its six attributes: “influential in the arts & entertainment” (5th), “rich heritage” (7th), and “food the world loves” (8th).
India also continues to perform well in the Education & Science pillar – coming 20th globally. It ranks 14th for the “leader in science” attribute and 17th for “leader in technology and innovation”.
India also performed particularly well in the newly added “invests in space exploration” attribute, coming 9th globally. The Indian Space Research Organisation marked its first entry into commercial satellite launches in 2022, while private space technology companies within India also continued to excel.
While India has improved in this year’s ranking, it lags behind particularly on Reputation (65th) as well as on perceptions of People & Values (93rd), Governance (103rd), and Sustainable Future (109th).
Nevertheless, it is recognised as having significant “future growth potential”, with the 2nd highest score globally. India is predicted to become the world’s most populous country before the end of this year and is going through rapid economic development. The nation brand has a lot of as yet unrealised potential and ought to become a true Soft Power superpower in future.
Sri Lanka sees steepest fall in ranking following crisis
India’s neighbour, Sri Lanka, has seen the largest fall of any country in the Index, down 42 places to 115th globally. In the last two years, the country has encountered both economic and political crisis, with supply shortages and resulting widespread anti-government protests causing a domino effect that brought Sri Lanka to effective bankruptcy.
These issues are reflected In Sri Lanka’s reduced scores across the board. Sri Lanka now ranks within the bottom 10 for all pillars apart from Culture & Heritage, where its score is higher (92nd) thanks to more positive perceptions of “rich heritage” (56th), “food the world loves” (68th), and “great place to visit” (71st).
