In this article, we take a look at the 23 most powerful countries in the world heading into 2023. You can skip our detailed analysis of the global power dynamics and go directly to the 5 Most Powerful Countries in the World Heading Into 2023.
People often think of a country’s military when it comes to its power and while it’s true that military strength translates to raw power, there are many other dimensions of power as well that are required to capture its overall nuance.
Economic strength is the second most important form of power in general and perhaps the most important form in our current world. Other dimensions include political power like close international alliances and diplomatic leverage.
Finally, there is something called soft power in terms of international relations, it is the ability of a country to attract other countries rather than coerce them to its own preferences. This is primarily achieved through cultural influence.
However, at the risk of sounding redundant, economic power is the most important form of power in the global power dynamics, despite military capability being the most raw form of power.
Is Military Strength Becoming Less Relevant?
Wars are increasingly becoming too impractical to win because the majority of modern wars are unconventional, where the adversary is usually overthrown quickly by a superior military. But for all intents and purposes, it leads the former to disperse, mix up with the local civilian population and mount an insurgency, which has been described as effectively undefeatable.
However, despite war going out of fashion, with the exception of the recent Russian invasion of Ukraine, countries maintain militaries for the secondary purpose of deterrence. In this sense, military strength is still highly relevant, albeit superseded by economic power.
Why Economic Power Defines the 21st Century
Economic strength has fast become the most important form of power in the 21st century, primarily due to the fact that the majority of countries’ economies have become market-driven following globalization. Trade liberalization has grown by an average of 8% since the past decade across the world. This has led to about 130 countries economically prospering over the same time period.
The Capitalist Peace theory asserts that countries with mutual business interests established through economic liberalization are unlikely to go to war with each other.
Although the evidence to support the theory remains inconclusive according to political scientist Erik Gartzke, they contend that countries with lower levels of market freedom are 14 times more likely to go to war than countries with higher levels.
A multivariate regression has also found a statistically-significant negative correlation between military spending and economic growth, which further supports the conclusions of Capitalist Peace theory.
Moreover, economic might has also come in handy in terms of geopolitical tensions, further taking space from military solutions. For instance, The Drexel Researchers have concluded that economic sanctions lead to 55% achievement (complete, partial and negotiated) of geopolitical objectives.
One of the most recent complete-successes resulting from the threat of US-led sanctions came in 1993, when president of Guatemala Jorge Serrano dissolved congress and announced his autocracy.
The US and the EU threatened sanctions against the country, leading to business forces in Guatemala taking Serrano out of power. The looming threat of sanctions cost the country 1.3% of its GDP.
A typical example of sanctions is the US simply prohibiting its corporations from doing business in the target country. Considering the size of the global US companies like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT), such sanctions can significantly affect the target economy.
Soft Power
Diplomacy is often regarded as the core element in the political power of a country. Diplomacy, along with cultural influence, form the bedrock of a country’s soft power.
In this regard, countries like the US, UK and Japan hold enviable power. This form of power has led countries like the US to bring other countries together for common causes. Soft power also helps countries better their perception in other countries, leading to immigration and tourism.
With factors of power established, let’s move to the 23 most powerful countries in the world heading into 2023.
Pixabay/Public domain
Our Methodology
For our list, we’ve ranked the countries based on military, economic, political and cultural power. We’ve covered countries’ military, economic, cultural and political power here, here, here and here, respectively, with more than top 20 countries in each domain.
We have averaged out the rankings of countries based on these dimensions of power for the list of most powerful countries in the world heading into 2023.
Countries that have more rankings in our aforementioned lists have been ranked higher, even if they ranked lower on individual factors of power. However, countries with fewer rankings, that ranked significantly higher in the aggregate results of their respective categories, have been pushed closer to the top.
Let’s dive in.
23. Austria
Political-Influence Ranking: 24
GNI Per Capita Ranking: 19
Austria is situated in the Southern part of Central Europe. Apart from being a member of the EU, which grants it considerable political influence in Europe, Austria is also one of the richest countries on the continent, with a Gross National Income (GNI) per Capita of $58,370 as of 2022. Austria is not a NATO member but maintains a close relationship with the military alliance. The country is above average in terms of military strength according to Global Firepower, which ranks it in 84th position out of 145 countries.
22. Turkey
Political-Influence Ranking: 22
Military-Strength Ranking: 14
Turkey is one of the most powerful countries in the world, owing primarily to its political influence and military strength. It is also considered the 8th most advanced country in Asia based on human development and R&D investment. Turkey’s memberships in NATO and the G20 make it geopolitically and geoeconomically formidable.
21. Israel
Political-Influence Ranking: 11
Military-Strength Ranking: 13
Israel is the most technologically advanced country in the Middle East. Due to geopolitical tensions, territorial disputes and low strategic depth, Israel has invested in a sophisticated proactive military that protects its borders, ports and airspace.
While countries around the world have mixed opinions about Israel, it ranks high in political capital due to its influence, mainly over the United States, which is the result of mutual strategic dependence and extensive lobbying on Israel’s part.
20. Saudi Arabia
Political-Influence Ranking: 14
Military-Strength Ranking: 10
Saudi Arabia is the biggest economy in the Middle East, with a 2022 GDP of $1 trillion. It ranks in the top 10 in terms of military strength, due to the country dramatically increasing military spending in the wake of its involvement in the Yemen war.
In 2021, the country ranked eighth in terms of military spending, with a defense budget of $56 billion. The figure accounted for 2.6% of global military spending for the year.
However, Saudi Arabia’ greatest power comes from its oil-production capacity. Its 2021 oil production was 11% of the global output. On top of that, Saudi Arabia is also the leading member of OPEC. These factors allow the country to hold considerable sway over the global energy market as well as geopolitics.
19. Brazil
Political-Influence Ranking: 23
Military-Strength Ranking: 20
Cultural-Influence Ranking: 15
Brazil is the biggest country in Latin America in terms of landmass, population and economy. These factors, along with a strong military and Brazil’s membership in BRICS, make it one of the most powerful countries in the world.
18. Denmark
Political-Influence Ranking: 21
GNI Per Capita Ranking: 12
Cultural-Influence Ranking: 20
Denmark is one of the most powerful countries in the world heading into 2023, primarily due to a great outlook on its political and cultural influence, and riches. The Scandinavian country is an EU as well as a NATO member, making it formidable politically and militarily.
17. Sweden
Political-Influence Ranking: 18
GNI Per Capita Ranking: 15
Cultural-Influence Ranking: 14
Sweden is located in the Scandinavian region of Europe. What makes Sweden powerful is its political influence, economic strength and cultural influence. It is one of the richest countries in the world in terms of GNI per Capita, which is $61,000 as of 2021.
Sweden has an attractive market, which is why global corporations flock to the country. Major corporations like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT) maintain a presence in Sweden.
16. Norway
Political-Influence Ranking: 20
GNI Per Capita Ranking: 5
Cultural-Influence Ranking: 19
Norway is one of the most powerful countries in the world heading into 2023. It has a GNI per Capita of nearly $83,000. The country also has one of the strongest militaries in the world. Global Firepower ranks Norway’s military 35th out of 145 militaries around the world.
15. United Arab Emirates
Political-Influence Ranking: 17
GNI Per Capita Ranking: 13
Cultural-Influence Ranking: 13
The United Arab Emirates (UAE) is another one of the most powerful countries in the Middle East and the world as well, in 2023. Its power mainly comes from its oil production, which contributed 4% to the global output in 2021.
14. Spain
Political-Influence Ranking: 15
Military-Strength Ranking: 19
Cultural-Influence Ranking: 8
Spain is located in Southern Europe and is powerful due to its military, political and cultural influence. It has increased its military spending by over $1 billion in 2022, making defense expenditures 2% of its GDP. Spain’s cultural influence is unmistakable, with 20 countries having Spanish as their official language.
13. Switzerland
Political-Influence Ranking: 10
GNI Per Capita Ranking: 7
Cultural-Influence Ranking: 10
Switzerland is another one of the most powerful European countries in the world. The country holds significant diplomatic influence on global politics due to its neutral approach to geopolitical matters.
The country is also economically powerful, with a GNI per Capita of nearly $76,000. It is culturally acclaimed due to its luxury industry of Swiss watches that are popular all around the world.
12. South Korea
Political-Influence Ranking: 12
Military-Strength Ranking: 5
Cultural-Influence Ranking: 9
South Korea is located in the Far East. The country has a strong military, robust security and economic partnerships with countries like the US and proactive membership in ASEAN.
It is also highly advanced in technology and had a 6% share in the global output of Knowledge and Technology Intensive (KTI) Industries in 2019, according to the National Science Foundation.
11. Italy
Political-Influence Ranking: 9
Military-Strength Ranking: 12
Cultural-Influence Ranking: 3
Italy is another EU and NATO member that is one of the most powerful countries in the world heading into 2023. In terms of soft power, Italy ranks third out of the top 25 countries.
10. The Netherlands
Political-Influence Ranking: 19
Military-Strength Ranking: 21
GNI Per Capita Ranking: 14
Cultural-Influence Ranking: 16
The Netherlands is the 4th most politically influential country in the EU, according to ECFR’s EU Coalition Explorer. It ranks 19th out of the 25 most politically influential countries in the world overall. Its economic strength is also far reaching, with Dutch companies like Shell plc (NYSE:SHEL) operating in over 70 countries.
9. Australia
Political-Influence Ranking: 16
Military-Strength Ranking: 15
GNI Per Capita Ranking: 22
Cultural-Influence Ranking: 12
Australia is the largest country in Oceania. It is a G20 economy that is highly influential in the Asia-Pacific region, especially in the wake of China’s rise and increasing regional security and economic competition. In this sense, Australia is a highly regarded party to the Quadrilateral Security Dialogue (QUAD).
8. Canada
Political-Influence Ranking: 8
Military-Strength Ranking: 18
GNI Per Capita Ranking: 25
Cultural-Influence Ranking: 11
Canada neighbors the United States and is one of the most powerful countries heading into 2023, due to its political influence, military strength, wealth and soft power.
Canada’s corporate influence is also worldwide, especially in the ecommerce industry. It’s Shopify Inc. (NYSE:SHOP)’s technology is used by 5.6 million online stores around the world. Shopify Inc. (NYSE:SHOP)’s market share in the US ecommerce industry alone is 28.5%, according to Kinsta.
Apart from Shopify Inc. (NYSE:SHOP) which is of course a native company to Canada, the country also hosts US corporations like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN).
7. Russia
Political-Influence Ranking: 6
Military-Strength Ranking: 3
Russia is the biggest country in the world in terms of landmass. It has also historically been the second most powerful country in the world during the cold war. Russia’s political influence extends to countries like Belarus in Eastern Europe, Kazakhstan in Central Asia and North Korea in East Asia.
Russia is a nuclear military power and has a formidable military infrastructure. However, it has so far taken quite a beating in Ukraine. Regardless, its strategic military assets, like the S-400 Triumf air-defense system, are considered among the best in the world. The country is also ahead of the US in hypersonic technology. In terms of global political and military influence, Russia is a permanent member of the UN security council with veto power.
6. United Kingdom
Political-Influence Ranking: 4
Military-Strength Ranking: 7
Cultural-Influence Ranking: 5
There are several factors that make the UK one of the top most powerful countries in the world heading into 2023. These include its nuclear-weapons arsenal, its two power-projecting aircraft carriers, a formidable air force, an economy that is the second biggest in Europe and its permanent veto-power endowed membership in the UN Security Council. However, it lags behind in cultural influence and Gross National Income per Capita.
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Disclosure: none. 23 Most Powerful Countries in the World Heading Into 2023 is originally published on Insider Monkey.