The index ranks the USA in first place (Image: Getty)
At a time when it appears that “might is right”, an index has ranked the most powerful nations in the world, which may make uncomfortable reading for Brits. The index has been put together by the top US investor Rya Dalio, who is worth a cool £11.5billion.
He originally unveiled his Great Powers Index at the World Economic Forum in in 2022. In its latest index, countries are ranked according to a number of criteria – these include education, innovation and technology, competitiveness, military, trade, economic output, financial centre and reserve currency status. Six additional measures of power – including infrastructure and investment and governance and rule of law – are also assessed.
Below the lists the top 10 most powerful countries in reverse order based on the index results.
In eighth place in this ranking is Britain with a score of 0.29 (Image: Getty)
In 10th place comes with a score of 0.26. This makes the country a modest power on a flat trajectory. Although rich in natural resources, is riddled with corruption, has poor infrastructure, suffers from a lack of investment and is an insignificant financial centre. ‘s decision to invade has also severely damaged the domestic economy and ‘s international standing.
occupies ninth place with a score of 0.27. Its global power is limited due to its less-than-favourable economic/financial position. Another major drag on its economic prospects is its expensive workforce, which offers relatively little value. On the plus side, France boasts an exceptional healthcare system and has a comparatively narrow gap between rich and poor.
In eighth place is Britain, with a score of 0.29. The score makes the UK a global power on a flat trajectory. The index claims that a sluggish economy, lack of natural resources and comparatively expensive labour, coupled with poor infrastructure, are the main reasons for its poor performance.
China is still some way off the US (Image: Getty)
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India occupies seventh place and is a power very much in the ascent, scoring 0.3. The country’s main strengths are its resilient economy and financial stability, cost-competitive labour force, and its people’s self-reliance. However it is held back by widespread corruption, inconsistent rule of law and the lack of reserve currency status, the index suggests.
Sixth in the rankings is South Korea, with a score of 0.32. The country is a global leader when it comes to technology and innovation. It also benefits from a low debt burden and wealth equality. However, South Korea is limited by the small size of its economy and a lack of natural resources.
The fifth strongest country is Japan, with a creditable score of 0.33. Japan’s strengths include high internal order, effective allocation of labour and capital, and its reserve currency status. A lack of natural resources is the country’s main weakness.
Germany comes in fourth place with a score of 0.38. On the plus side are its efficient allocation of labour and capital and high quality health system. Its key negatives are the country’s relative shortage of natural resources, its weak military and its costly labour force.
In third place with a score of 0.56 is the Eurozone, which despite not being a nation is classified as a strong power in gradual decline. The Eurozone’s key strengths include its robust financial markets, reserve currency status, prominent role in global trade, substantial economic output, well-developed infrastructure and highly educated workforce. However, its comparatively high labour costs and lack of natural resources are the key challenges it faces.
China is the second strongest nation in the world, with a score of 0.8. The country’s strengths are its infrastructure and investment levels, its status as the global trade leader, innovation/technological skills, high level of education and substantial economic output. China’s growing military might is a major factor as well. In recent years, though, the country’s importance to world trade and as a financial centre has levelled out.
In first place is the USA, with a score of 0.89. The States benefit from strong capital markets and status as a financial centre, powerful military, the dollar’s position as the world’s reserve currency and a formidable economic output.
Other strengths include the US’ high level of education, its ability to innovate and its wealth of natural resources. The key negatives, according to the index, are the country’s unfavourable economic/financial position and its domestic conflicts.