Why Soft Power is Vital In a Multipolar World
Sir John Whittingdale MP at the launch of the report.
Yesterday, at the Houses of Parliament, The Foreign Policy Centre released a report entitled, ‘Playing to our strengths: The future of the UK’s soft power in foreign policy.’ The report looks at the UK’s influence in and on the world and makes recommendations on how best to reposition itself in what is becoming an increasingly fractured and multipolar world, an issue that I have written about in the past.
Soft power is, as Harvard’s Joseph S. Nye defined it, 'the ability to get what you want through attraction rather than coercion or payment.' It rests on culture, values and policies that are seen as legitimate. Put simply, soft power is why people choose to work with you, study with you, buy from you or vote with you, even when you are not the biggest economy or the strongest military in the room.
While in the short term, hard power often dominates, over time attraction and credibility compounds. That is why the strategic power play is to combine hard and soft power rather than treat them individually.
Why soft power still matters in a multipolar world
We are currently living in times when globalisation is changing and the global system is fragmenting. Power is spreading among an increasing number of actors, with economic weight been shifting towards emerging economies for several years.
The IMF estimates that in 2025, emerging and developing economies account for roughly 61 percent of world GDP measured at purchasing power parity, which underscores the reality of a more multi-centred economy. In a system where no single bloc can impose outcomes, persuasion, credibility, and networks are strategic force multipliers.
As an example, Saudi Arabia is pursuing 'multi-aligned' strategies, hedging security and leveraging it’s geoeconomic strength to secure influence, while using soft power to reposition how the Kingdom is perceived.
From campaigns to a system: an 80/20 model
In it’s report, The Foreign Policy Centre’s 2025 report on the UK’s soft power argues for an 'always on' approach underpinned by a clear delivery model.
Its core recommendation is an 80/20 strategy. Eighty percent of soft power should be left to independent cultural and creative actors to flourish. The remaining twenty percent is where government must lead through narrative, coordination, enabling regulation and targeted funding. This framing is as much about governance as it is about messages, and it suits a world in which credibility is earned by independent institutions more than by government advertising.
My view is that this is more of a 20/80 strategy, with the state setting a narrative that supports not just independent cultural and creative actors to export and promote the UK, but also businesses and investors. Like the US, which benefits from it’s corporate might, what is needed is to leverage UK business brands from across a range of sectors.
How soft power is measured and who leads
So, how is soft power measured? There is no perfect index, but Brand Finance’s Global Soft Power Index has become a widely used yardstick of perceptions among business leaders and policymakers.
The 2025 edition ranks the United States first, China second and the United Kingdom third. Rankings do not confer automatic wins, but indicate reservoirs of credibility that shape choices about study, tourism, partnerships and capital.
The index also highlights the United Arab Emirates holding a top-ten position globally, reflecting pro-business policies and diplomatic reach.
What effective soft power looks like
The United Kingdom, education, sports and media
Having worked with teams within the UK Government’s Department for Business and Trade and the Great campaign, which is managed out of Cabinet Office, I know how the UK’s education, sports and media sectors are leveraged overseas, with science, technology and innovation moving into that nation branding space.
Looking at media, the BBC’s World Service reached around 450 million people weekly according to the 2024 Global Audience Measure, reinforcing the UK’s reputation for impartial, high-quality journalism. Research cited in the report indicates that BBC users show higher future intent to invest in the UK than non-users. At the same time, funding changes have forced service closures and digital-only shifts just as competitors invest in state media abroad. This is a textbook example of why credibility assets need stable, multi-year support rather than stop-start budgets.
In sports, brands like The Premier League are a year-round soft power engine with both domestic and international impact. FPC summarises 2023 to 2024 figures that include more than £8 billion value added to the UK economy and 90,000+ jobs supported.
Research by The British Council has found that a state’s soft power has a statistically significant impact on foreign direct investment (FDI), overseas student recruitment and tourism.
Government figures reported hundreds of millions in additional student spending attributable to 'Study UK,' and VisitBritain calculates that its activity delivered £1.26 billion of additional visitor spend in 2023/24. Marketing budgets fluctuate, so protecting high-ROI soft power spend matters. You invest now for the future.
The United States, exchanges and culture
Looking at the US, The Fulbright Program is a flagship of American soft power. Over the decades, more than 370,000 alumni have participated, including 62 Nobel laureates and dozens of heads of state or government. Scholarships, research networks and alumni relationships convert into policy familiarity, business partnerships and enduring goodwill.
Public diplomacy and international broadcasting are also resourced at scale through the U.S. Agency for Global Media, with a fiscal year 2025 budget request of approximately $950 million.
At the same time, sports, business and investment, especially in technology, help shape how the US is perceived as a location to invest and grow a business in.
Silicon Valley and Hollywood studios actively promote the US in markets in which they have a presence, which is many, and push a core narrative that the country is seen for.
The EU, Germany and France, cultural institutes at scale
Germany’s Goethe-Institut operates about 150 institutes across roughly 98 to 99 countries, promoting German language and culture and convening partners across education and the arts.
France’s Alliance Française network counts more than 830 language and cultural centres in over 130 countries. These long-term, locally embedded institutions make cultural engagement habitual rather than episodic, and they provide credible platforms for business dialogues and scientific cooperation.
Germany complements this with DAAD scholarships that supported around 140,000 people in 2023 to 2024. The mobility of students and researchers fosters decades-long professional ties that influence trade, inward investment, and joint R&D.
Japan, Selling Culture For Commerce
Japan has built a coherent soft-power stack that centres on permanent, high-trust platforms rather than one-off promotions. The Ministry of Foreign Affairs’ Japan House venues in London, Los Angeles and São Paulo curate design, food, technology and policy to broad public and influencer audiences.
Government has complemented this with targeted capital for overseas expansion of creative and lifestyle industries through the Cool Japan Fund, which reported ¥143.3 billion (US$967 billion) in capital as of March 2025.
The result is a durable perception premium: Japan ranks fourth in Brand Finance’s 2025 Global Soft Power Index, and will showcase innovation at scale through Expo 2025 Osaka, a six-month shop window that authorities hope turns attention into travel, partnerships and investment.
Soft power has translated into hard numbers. Japan welcomed a record 36.87 million visitors in 2024, with inbound spending of roughly ¥8.1 trillion that year, widely reported as the country’s second-largest ‘export’ after automobiles. Those flows sit alongside an increasingly intentional bridge from culture to commerce: JETRO’s Global Acceleration Hubs and Global Startup Acceleration Program connect Japanese firms and founders to overseas markets and co-investment partners, while corporate venture activity has scaled from ¥39.6 billion (US$263 million) in 2013 to ¥204.9 billion (US$1.3 billion) in 2023.
Corporate investors then ride the ‘Japan quality’ signal into competitive rounds abroad, exemplified by global vehicles such as Sony Innovation Fund’s SIF3, Woven Capital and others.
In practice, the cultural trust generated through perception and trust shaping and building exercises, shortens diligence windows, and improves access to high-growth founders and partners in Europe, the United States and Latin America.
South Korea, content exports and the power of culture
South Korean culture has itself meanwhile become a major export in its own right, with national government data showing content exports reaching a record US$13.24 billion in 2022, buoyed by K-drama, K-pop and gaming. Films from Korea have been recognised with Academy Awards.
Netflix has pledged US$2.5 billion for Korean content production from 2024 to 2028, a sign of sustained global demand and a reinforcing loop for brand Korea. The soft power return is not just ratings. It is tourism, product tie-ins, language learning and business familiarity.
It’s business community have benefited from the growing interest in South Korea, with brands growing internationally and supporting many enterprise companies in investing in their own corporate venture capital companies, which then invest in medium and long-term investments overseas, in markets in which they see opportunities.
These companies also create family offices, who look at growth internationally.
The Middle East: Saudi Arabia and the UAE, deliberate soft power strategy
Saudi Arabia has put soft power at the centre of Vision 2030, using mega-events, tourism and high-profile sports investments to reposition the Kingdom and diversify its economy.
The Kingdom has secured two global platforms to showcase reforms and attract visitors and capital: World Expo 2030 and the 2034 FIFA World Cup, both officially confirmed by the Bureau International des Expositions and FIFA respectively.
Tourism is the lead indicator of this reputational shift, with the Saudi Tourism Authority reporting over 100 million visitors for the second year running in 2025 compared with 2019 levels, a milestone that aligns directly with Vision 2030’s diversification goals.
Sport has been the sharp end of Saudi soft power: with, as an example, the Public Investment Fund’s acquisition of Newcastle United anchored a durable presence in European football; the league now touts distribution in 180+ countries as it pivots from marquee signings to longer-term sustainability.
This visibility is paired with scale financial firepower: the Public Investment Fund (PIF) is targeting US$2 trillion AUM by 2030 according to Global SWF, even as outside analyses debate the path to that number and note a tactical tilt toward domestic projects that support diversification.
The strategic logic is straightforward: by hosting global events, drawing record tourism and embedding itself in elite sport, Saudi Arabia seeks to convert attention into partnerships, FDI and technology transfer, using PIF and related vehicles to turn soft-power visibility into hard-power investment outcomes under Vision 2030 that rewire the Saudi economy so it becomes less dependent on revenues from fossil fuels.
Meanwhile, in The United Arab Emirates, Abu Dhabi and Dubai have treated soft power as a strategic programme, with the UAE having established a Soft Power Council and a national soft power strategy in 2017, and it has stayed in Brand Finance’s top ten.
Like with Saudi Arabia, the approach combines culture and heritage with pro-business regulations, diplomacy, global events, and an 'easy to do business with' reputation that underpins deal-making and investment flows.
With strategic advice and access to capital, the UAE is repositionig itself internationally.
Does soft power still add value and security?
Yes. It does not replace deterrence or industrial capacity, but it lowers the cost of cooperation and raises the cost of isolation. There are primarily five strategic payoffs:
Coalitions and legitimacy. Countries with trusted brands build broader coalitions and find it easier to frame rules and standards. That matters for sanctions, technology governance and climate coordination. Nye’s reminder applies here: attraction reduces reliance on sticks and carrots.
Talent and capital. International students and researchers can become founders, investors and senior officials. The correlation between soft power and FDI, tourism and student flows is supported in British Council research, and you can see the practical effect in the UK, US and Germany numbers above.
Market access. Cultural familiarity shortens sales cycles. Korea’s content boom and the UK’s education-led alumni networks are real examples of influence translating into commercial opportunity.
Resilience in crises. Trusted country and corporate brands are more likely to be given the benefit of the doubt in times of crisis. Public diplomacy institutions and reputable media give governments and firms a credible channel to clarify facts quickly when mis and misinformation spread.
Room to manoeuvre. In a multi-polar and multi-aligned world, soft power creates optionality. The UAE’s experience shows how reputation, openness and convening power help a middle power keep diverse partnerships without becoming a policy taker. At the same time, time and focus, is helping Saudi Arabia reposition itself in how it is perceived.
Strategic advice for governments
Treat soft power as a system, not a campaign. Fund the architecture that compounds over time, including trusted media, cultural institutes, scholarships and scientific collaboration, businesses that already have a footprint overseas. Building trust takes time and it is imperative that a country is able to leverage all it’s assets, not just a few. Some companies and/or brands often have greater reach than a given government, which is why stakeholder engagement is critical to help shape perception that benefits them and the wider country.
Align narrative with policy reality. Attraction collapses when behaviour contradicts values. Think about the rule of law and openness as strategic assets. Keep the narrative and the story simple and human. Accept the differences, but highlight the cultural understanding. Trust is earned through mutual respect.
Make student mobility a national priority. Visa policy is a soft power policy. Tighten fraud controls, yes, but maintain a competitive welcome. The US, UK and Germany continue to benefit from alumni networks that last for decades. Erasmus+ scale shows the regional power of mobility. I’ve met many leaders internationally that have studied in the UK and as a result have a positive perception of the UK, similar tho those who study in the US, France or Spain. Think of how many business, political or government leaders have studied in universities in your home market?
Invest in digital credibility. The information space rewards speed and punishes uncertainty. Build surge capacity for crises, institutional verification, and evidence that can be quoted and linked in real time. The Reuters Institute data underline the platform shift that communicators must plan for.
Map and manage sharp power risks. Distinguish open cultural exchange from covert influence. Equip universities, think tanks and media partners with due diligence tools and transparency standards. Democracies should defend open exchange without being naïve about manipulation.
Strategic advice for businesses and investors
Price soft power into market entry. A country’s reputation for education, media freedom, rule of law and cultural affinity is a leading indicator of commercial friction. The Brand Finance index is a useful heuristic tool alongside your macro and political risk models.
Borrow credibility from trusted platforms. Partnerships with public broadcasters, cultural institutes and universities are not PR stunts. They are routes to high-trust audiences, regulators and future talent. For example, UK participation in British Council and GREAT activities, or German projects via Goethe-Institut and DAAD, can anchor local relationships.
Use culture to open doors, not close deals. Sponsoring a film festival or a scholarship will not, by itself, win a procurement in the short term. It does, however, build familiarity that shortens later negotiations and helps businesses from a home market win contracts in the medium term. Korea’s content exports and Netflix’s multi-year commitment show how culture creates commercial gravity that others can piggyback on.
Build alumni and diaspora strategies. Alumni from your target markets who studied in your home country, and diaspora communities in your sector, are high-leverage connectors. Treat them as strategic stakeholders, not as an afterthought. The scale of international student flows in the US, UK, and Germany is your opportunity set.
Stress-test corporate soft power. In contested markets, firms themselves have soft power profiles. Independent governance, sustainability performance, workforce development and transparency all influence access to capital and permits. Coherence between what you say and do remains the key to a competitive edge. At the same time, it is critical for companies to leverage and borrow the brand equity of businesses that have a presence in markets overseas.
Common mistakes to avoid
Confusing promotion with persuasion. Saturating a market with messaging is not the same as being attractive. Credibility comes from independent voices, not only from official channels. BBC World Service and similar outlets have reach because audiences believe they play it straight.
Underfunding the boring but vital. Scholarships, language teaching, mobility schemes and trade missions lack glamour, but they compound and influence. Germany and France show the pay-off from consistent, decades-long investment in cultural networks.
Expect short term returns from international events. Deals can take longer than a financial year, but the fact that a country is able to bring together it’s business or cultural leaders together and showcase them overseas shows confidence and helps position the UK and it’s business community as open for business. Think short term about the cost of this and you cut your nose and let competing nations overtake you. Investment in perception shaping pays off.
What success looks like over the next five years
The success of soft power will be visible in three key areas.
First, talent and knowledge flow. Countries that remain magnets for international students, researchers and creators, soft power, will sustain innovation pipelines and alumni goodwill. The US, UK and EU nations are currently setting the pace. The goal should be to maintain welcome policies without compromising security.
Second, credible, global public service media. Weekly reach and trust in editorial independence will continue to matter. If international services can hold or grow audiences among younger, mobile-first users, they will remain key assets in crises and in everyday explanations.
Third, culture, business with economic gravity. Korea and Japan show that cultural exports can become strategic industries. Countries that back creative ecosystems and protect intellectual property will convert attention into tourism, brand licensing, product sales and inward investment.
The Bottom line
Soft power is not a luxury in a tougher world. It is part of national and corporate risk management, market access and coalition-building.
The multipolar system rewards those who can convene and persuade. Governments should protect independent institutions that give them credibility, keep student and cultural exchange open and measurable, and incorporate verification into their communications. Businesses and investors should weigh country's soft power alongside political risk, and invest in partnerships that borrow trust from credible platforms.
Soft power will not stop wars or roll back sanctions on its own. What it can do is lower the temperature of disputes, widen the circle of people who want you to succeed and shorten the distance between first contact and agreement. Nye’s enduring point still holds: attraction reduces your reliance on pressure and payments. In a world where neither is cheap, that is a strategic advantage you can measure.
