Reputation, Power & Influence: Brand Finance’s Chairman Breaks Down Soft Power 2025

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Soft power has become an essential force in shaping global influence, with nations leveraging diplomacy, culture, and reputation to assert their standing on the world stage. The Global Soft Power Index 2025, published by Brand Finance, provides a comprehensive analysis of how countries are perceived worldwide and the factors driving their international appeal.

In this exclusive interview, we speak with David Haigh, Chairman of Brand Finance, to gain insights into the latest rankings, key trends, and the evolving dynamics of global soft power. From China’s historic rise to second place to the shifting reputation of established powers, this conversation sheds light on how nations can strengthen their influence in an increasingly interconnected world. Here’s what David Haigh, Chairman of Brand Finance had to say about this year’s Global Soft Power Index:

Could you briefly explain the methodology behind the Global Soft Power Index?

Soft Power is defined as a nation’s ability to influence the preferences and behaviours of various actors in the international arena (states, corporations, communities, publics, etc.) through attraction or persuasion rather than coercion.

Brand Finance publishes the Global Soft Power Index based on a survey of more than 170,000 respondents from over 100 countries to gather data on global perceptions of all 193 member states of the United Nations. Each nation is scored across 55 different metrics to arrive at an overall score out of 100 and ranked in order from 1st to 193rd.

The Index is the world’s most comprehensive study on perceptions of nation brands, providing an in-depth analysis of the evolving status of Soft Power as nations navigate significant global changes and challenges.  Now in its sixth year, the Global Soft Power Index has been evaluated annually through expert consultations and data-driven analysis to ensure a strong and relevant measurement, while maintaining consistent year-on-year comparability of results.

What key indicators drive a nation’s ranking?

Nations are assessed according to three Key Performance Indicators (KPIs): Familiarity (knowledge of the nation), Reputation (the nation’s perceived image) and Influence (perceived global influence).

 We also use an extensive list of 35 nation brand attributes, categorised across 8 Soft Power Pillars, including Business & Trade, Education & Science and International Relations. A statistical drivers analysis at the respondent level helps us identify which attributes are most influential in shaping a nation’s Reputation and Influence, while also revealing how perspectives vary across different societies worldwide.

Higher Soft Power scores indicate greater international influence and stronger perceptions, while lower scores reflect reduced global impact and weaker perceptions.
 Also included in the survey, but not factored into the Soft Power Score, is the Recommendation measure, which evaluates how likely a respondent is to recommend the nation as a destination for investment, work, study, travel, or purchasing.

How has the index evolved over the years, and were there any significant changes in this year’s evaluation criteria?

In the first two years, the survey included insights from both the general public and specialist audiences, such as market analysts, policymakers, and thought leaders. Due to similar results across both groups, we have focused exclusively on the General Public since 2022, enabling larger sample sizes and enhanced comparability across markets.

During the pandemic, the Index temporarily incorporated perceptions of national COVID-19 responses, evaluating how countries managed the global crisis. As the pandemic subsided, this metric was removed to preserve the long-term relevance of the Index.

In 2023, Sustainability was added as a key pillar in the Index, acknowledging the global shift towards more ethical and sustainable practices.

In 2024, the Brand Finance research saw a major milestone with the addition of 72 new entrants, marking the first time all 193 United Nations member states were ranked.
 In 2025, after pausing fieldwork in Russia for the 2023 and 2024 Index surveys, we have re-included the views of the Russian general public on nation brands in the 2025 survey.

The U.S. remains #1, but its reputation score has declined. What factors contributed to this shift?

The US’s reputation has declined, falling four places to 15th globally. A key factor in this drop is the decline in Governance, which dropped four spots to 10th. This decline is likely attributed to internal political tensions and the polarising nature of the presidential campaign at the time of polling.

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Looking ahead, with Donald Trump back in office and traditional Soft Power mechanisms like foreign aid and free trade being dismantled, America’s Soft Power and global reputation face increasing uncertainty, with potential consequences for future rankings.

China has overtaken the UK for the first time. What does this indicate about China’s growing global influence?

China has actively worked to improve its global image, resulting in significant growth across six of eight Soft Power pillars and two-thirds of attributes in the 2025 Index. Meanwhile, the UK ranks third in the Global Soft Power Index for the first time since the pandemic, as its nation brand perceptions have plateaued, with scores and rankings remaining stable year-on-year.

Business & Trade is a key driver of a country’s competitiveness and overall Reputation on the global stage. Since 2020, China has consistently outperformed the UK in the Business & Trade pillar, holding the top spot for ‘ease of doing business’ while the UK peaked at sixth in 2023. Additionally, China ranks eighth for its ‘strong and stable economy’ in 2025, just ahead of the UK, which dropped two spots to ninth. This shift reflects China’s growing economic influence and ability to shape global economic stability perceptions.

In 2025, China also ranks fifth globally for its ‘products and brands the world loves,’ while the UK has remained inseventh position since 2021, signalling stagnation in this area. Notably, over the past 17 years, the number of Chinese brands in the Brand Finance Global 500 has surged from 13 to 68, and their total brand value has increased by more than 23-fold to USD1.4 trillion. In parallel, there has been a considerable drop in its number of UK brands within the Global 500, from 42 in 2008 to just 20 in 2025. This shift underscores the growing global influence of Chinese brands, while the UK faces challenges in maintaining its competitive edge.

The UK dropped to third place. Do you see this as a temporary dip or a long-term trend?

The UK remains a significant player in global Soft Power, maintaining strong positions in areas like International Relations and Education & Science, where it ranks first for its ‘strong educational system.’ However, the stagnation in its nation brand perception, particularly in key metrics like Business & Trade, suggests a need for strategic reassessment.

The challenge for the UK is not just its own performance but the rapid growth of other nations. China, for instance, has overtaken the UK by advancing significantly in Business & Trade and other areas where the UK is experiencing stagnation, such as People & Values. Nations like Switzerland, with its well-rounded performance, further intensifies the challenge. Switzerland holds top spots in attributes like ‘strong and stable economy,’ ‘political stability and good governance,’ ‘great place to visit,’ and four out of five Recommendation attributes, highlighting its all-around appeal and global competitiveness.

Switzerland is also perceived as a global frontrunner in Sustainability attributes like ‘acting to protect the environment,’ while Japan takes the top spot for Sustainability overall. The UK lags in 10th place overall for this pillar, however a top spot ranking for ‘supports global efforts to counter climate change,’ suggests that the UK remains a significant actor in global climate initiatives. The UK must leverage perceptions like these to bolster its competitiveness and strengthen its position relative to other nations.

The UK’s stagnation in the 2025 Index suggests that its strategies may need to be reassessed in light of shifting global dynamics. Post-Brexit, the UK faces the dual challenge of recalibrating its position in the world while addressing evolving trade relationships, political tensions, and a changing domestic landscape. To maintain its place as a global Soft Power leader, the UK must reassess its approach to boosting its Reputation and Influence, especially in emerging sectors like technology, environmental sustainability, and cultural diplomacy.

Were there any surprises in the rankings this year? Any countries that made unexpected gains or losses?

 Several emerging nation brands delivered impressive performances, with El Salvador standing out as the fastest rising in the ranking, jumping 35 positions to 82nd overall. This progress is evident in the Governance pillar, where El Salvador has made notable strides in being perceived as ‘safe and secure,’ ‘politically stable and well-governed,’ and maintaining ‘high ethical standards and low corruption.’ Historically perceived as a violent nation, these improvements signal a promising effort by El Salvador to address and overcome some of its most pressing and dangerous challenges.

Bangladesh’s decline from 96th to 104th in the ranking may come as a surprise, particularly after the 2024 revolution that ousted Sheikh Hasina’s authoritarian government. Many had anticipated a surge in momentum for its nation brand in the wake of the revolution, although the data suggests this hasn’t yet been the case.

Emerging nations like El Salvador have climbed significantly. What lessons can other developing nations learn from such success stories?

Emerging nations like El Salvador offer valuable lessons for other developing countries seeking to enhance their global influence and economic growth. Notably, El Salvador’s efforts to reduce gang violence and improve political stability have enhanced its global perception as a safer and more secure nation. This demonstrates the importance of addressing internal security challenges to boost international credibility and attract investment.

Further, El Salvador’s growth in Business & Trade is evident in a 27-rank jump for its ‘strong and stable economy.’ Historically reliant on traditional sectors, El Salvador is now diversifying its economy by focusing on emerging technologies such as blockchain, fintech, and AI. This strategic shift can serve as a model for other developing nations looking to transition towards more innovative and sustainable economic models to enhance their economic growth.

The Middle East, particularly the UAE, continues to hold strong. What sets it apart in terms of soft power strategy?

 The UAE maintains its place in the top 10 of the 2025 Index, with its success in Soft Power stemming from a clear and focused strategic approach.Over the past few years, the nation has placed significant emphasis on economic diversification and positioning itself as a global hub for business, trade, and finance. This is particularly reflected in the UAE’s second place ranking for being ‘easy to do business in and with,’ which underscores its pro-business policies and open market initiatives. Additionally, it maintains a strong position in the top 10 for its ‘future growth potential’ and ‘strong and stable economy,’ driven by its fiscal strength and favourable investment climate.

With global conflicts and political instability increasing, how do you see Soft Power shaping international diplomacy in the coming years?

Soft Power enables nations to achieve diplomatic and foreign policy goals through attraction and persuasion rather than coercion or military force. This is particularly crucial in times of global conflict where diplomacy and international cooperation are essential to resolving disputes peacefully.

Photo by Meizhi Lang on Unsplash

With rising global tensions and retreating isolationist policies in major powers like the US, countries must rely more on Soft Power to bridge divides and foster collective global action, and to promote stability in volatile regions like Eastern Europe, the Middle East, and Asia. Overall, Soft Power is a vital tool for influencing peace and securing international collaboration.

In an era of AI, digital influence, and hybrid warfare, how do you see Soft Power evolving?

 In an era of AI, digital influence, and hybrid warfare, Soft Power is evolving rapidly, influenced by new technologies and shifting global dynamics. The latest data from Brand Finance underscores that countries leveraging innovation and advanced technologies are enhancing their global influence. Japan, China, and the US, for instance, take the top three spots in this year’s Global Soft Power Index for being ‘advanced in technology and innovation.’ This highlights how technological leadership is increasingly becoming a key component of a nation’s Soft Power.

In today’s world, AI can play a significant role in boosting a country’s Soft Power across multiple sectors. For example, AI advances in technology, healthcare, education, and sustainability can position nations as global leaders. China, for example, has integrated AI into its broader Soft Power strategy, using technologies such as smart cities and facial recognition to enhance its global influence and project its capabilities on the world stage.

Hybrid warfare challenges the traditional notion of Soft Power. In this context, Soft Power is not just about promoting positive attributes; it’s also about counteracting negative influence. Nations now need to work harder to safeguard their Soft Power against digital misinformation and cyberattacks.

What advice would you give to nations looking to enhance their global image and ranking on the Soft Power Index?

 Our research underscores the critical role of Soft Power for long-term success and economic growth, as it helps foster strong alliances, attract investment, boost trade, and draw in talent and tourism.

However, Soft Power is increasingly competitive, and the space for nations to capture global attention is narrowing. The gap between top and bottom nations is widening, with the leading nations seeing gains (+0.9), while weaker nations experience significant declines (up to -4.2). As this trend continues, key questions arise: will the divide grow, and how can nations differentiate themselves in an increasingly crowded global field? To stand out, smaller nations especially should focus on specific niche areas and targeted markets, rather than trying to compete across all Soft Power dimensions. Increasing familiarity and visibility will also be crucial for long-term success in this competitive environment.

One model of Soft Power governance is the UK’s Soft Power Council, which coordinates strategies and ensures sustained, long-term efforts. We believe every nation should establish a similar body, underpinned by high-quality research, reliable data, and independent expert advice, ultimately enhancing their Soft Power as a powerful national policy.

We will support such initiatives by tracking their development in our Global Soft Power Index.

Finally, how does Brand Finance plan to refine and expand the index in the future?

Brand Finance is exploring new markets and additional perspectives. One potential area of focus is gathering insights from specialist audiences such as diplomats, business leaders, and journalists, an approach that was implemented during the initial two years of the research (2020-21). This could provide a more nuanced view of Soft Power and help to capture a broader range of influences on a nation’s global reputation.

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