Photo: iStock
Marcell Horváth
15/08/2024 07:00
The concept of soft power has become a discipline in its own right, and many academics, think tanks and consultancies are conducting critical studies on its components and significance, while politicians, diplomats and journalists often mention it in their speeches. In short, soft power is understood as the ability of the state to influence various actors in international life, such as government actors, companies, communities or the general public, through the pattern and appeal it represents. In contrast, hard power, is the state's use of primarily military force and economic action to achieve its geopolitical goals.
Joseph Nye, the originator of the concept, identified three main components of soft power: culture, political values and foreign policy, which can make a nation attractive enough to encourage other states to cooperate to achieve their national interests. And Yan Xuetong, one of China's most influential geopoliticians, writes about strategic credibility, whereby a state, by meeting the requirement of universal values, gains the recognition and support of the international community by the example and model it represents.
Perhaps the Global Soft Power Index, published for the fifth time this year by the UK-based Brand Finance, provides the most comprehensive picture of the international competition for soft power. The index measures and ranks the performance of countries around the world on eight factors: business and trade, international relations, governance, sustainable future, education and scientific research, media and communications, culture and heritage, and people and values.
The powers that have shaped the power relations of the past two centuries are at the top of the list: the UK, thanks in part to its 19th century imperial legacy, has come second, while the 20th century superpower, the US, remains in first place. In the Year of the Dragon, China came in third, with the fastest growth in soft power in a year, and a strong performance in business and trade in particular. It can be seen that in a time of a series of global economic crises and geopolitical challenges, i.e. a global policrisis, a strong and stable economy has become one of the most important factors of international influence and reputation. China also has an excellent track record in education and scientific research - innovation and the capacity to innovate are essential for competitiveness in the technological transition, and the nurturing of talent is at the heart of this.
While China made the biggest leap last year, the Middle Eastern countries have made the greatest progress in the last five years, especially the United Arab Emirates, which, defining itself as a future-oriented, technology and financial centre, has taken tenth place. Singapore also made it into the top ten, thanks to its unwavering political stability, advanced digital ecosystem, world-class education, healthcare and transport.
In an increasingly turbulent and unpredictable era dominated by geopolitics, a series of armed conflicts show that military power remains the dominant force in international relations. However, as complex systems require increasingly complex interlinkages in economics, trade, technology and sustainability, geopolitics also requires smart power applied through a more complex, integrated strategy. This smart power builds on the competitiveness potential of the state concerned. Above all, it is based on a stable and strong economy, innovatively applying and developing soft factors, from talent development and education to building a future-oriented business and technology ecosystem and sustainability steps. But the real power lies in dialogue and collaboration.
The author is Executive Director for International Relations at the Magyar Nemzeti Bank, the central bank of Hungary
