In this article, we shall discuss the 20 most powerful country leaders in the world in 2023. To skip our detailed analysis of the global defense industry in 2023, go directly and see 5 Most Powerful Country Leaders In The World in 2023.
Defense Industry Outlook and Trends 2024: An Overview
2023 has largely been characterized by a litany of geopolitical flashpoints and conflicts, with the Middle East, Central Asia, and Europe seeing an unprecedented amount of turbulence. These conflicts arise within the backdrop of a larger Sino-American rivalry which proves to be a consistent flashpoint in today’s geopolitical landscape, giving credence to some of the most powerful country leaders in the world in 2023. According to a report by PwC, this has caused global defense expenditure to skyrocket in recent years, with initial projections rising up to $2 trillion by 2026, growing at an average year-on-year of 1.1%. The United States represents more than 60% of the total market, with the rest coming from other powers around the world. These large, stable markets sustain persistent and considerable demand driven by constant geopolitical and security challenges.
The primary trend which is likely to seep into 2024 and affect the growth of the global defense industry is the increasing pressure exerted by supply chain challenges on the U.S. defense industrial base. A result of Western support for Ukraine amidst Russia-Ukraine conflict, munitions are being spent on the Ukrainian front at rates far exceeding normal lean-production delivery models exercised by the industry in recent years. According to a report by the Financial Times, Ukraine’s crusade against Putin, who is one of the most powerful country leaders in the world in 2023, is consuming armament at an unprecedented frequency. The country has been firing more than 4500 artillery rounds a day. This massive shift to a war footing has exacerbated a massive supply chain challenge as defense companies like Lockheed Martin Corporation (NYSE:LMT), General Dynamics Corporation (NYSE:GD), and Northrop Grumman Corporation (NYSE:NOC) race to increase the rate of production to refresh national stockpiles as well as maintain supplies to the country.
Another trend likely to impact the global defense industry in 2024 is the growing risk of cyber attacks seen in recent years. Cybersecurity is an integral element of a modern state’s military capabilities. Threats may range from adversaries seeking to steal or disrupt the development of equipment, to seizing control of hostile drones and other susceptible systems. Militaries around the world are diverting increased investments in ramping up their cybersecurity apparatus in order to ensure future and continuous success on the physical and digital battlefield. According to a market research report by Precedence Research, the global cybersecurity market is currently valued at more than $210.5 billion and is projected to reach $691.6 billion by 2032, at a CAGR of 12.58% during the forecast period 2022-2032. To read more on trends affecting the global aerospace and defense industry in 2024, check out our coverage of the 15 Biggest Gun Companies in the World.
Overcoming the Global Labor Shortage: An Analysis
According to a report by McKinsey, the larger aerospace and defense industry is facing extreme competition with respect to securing adequate labor. This competition mainly springs from other more lucrative industries like the technology and healthcare industry which offer more attractive salaries and benefits. Although the technology industry has slowed down hiring considerably in the face of constant macroeconomic pressure, the report opines that the race to secure the best talent will only continue to garner more traction and momentum, especially in high-demand roles where shortage of adequate labor is more pronounced. One of the primary reasons why defense companies like Lockheed Martin Corporation (NYSE:LMT), General Dynamics Corporation (NYSE:GD), and Northrop Grumman Corporation (NYSE:NOC) are struggling to attract competent talent is due to a massive demographic shift within global urban populations, which McKinsey terms a transition from a “gray” to “green” workforce. Much of the older workforce is nearing retirement and a younger demographic is swiftly moving into the labor stream. This shift gives rise to other different factors at play, such as a shift in employee preferences, expectations, and work conditions. Moreover, the Great Resignation is another powerful factor shaping employment prospects within the larger A&D industry, with surveys indicating that more than 46 percent of employees are looking to switch employment within the next six months. This is exacerbated by the fact that younger employees are twice as likely to switch jobs compared to their older counterparts. As a result of these trends, defense companies are seeing younger talent seep through the cracks and talent replacement rates plunge dramatically. Furthermore, as the older generation approaches retirement, younger people are switching jobs much more frequently and are lacking the essential skills needed to thrive in the defense business.
In order to overcome this labor crisis, companies like Lockheed Martin Corporation (NYSE:LMT), General Dynamics Corporation (NYSE:GD), and Northrop Grumman Corporation (NYSE:NOC), which cater to some of the most powerful country leaders in the world in 2023, can focus on sourcing talent from a pool that numerous employers tend to ignore by making use of the 70 million workers in the US classified as skilled through alternative routes (STARs). This segment of the workforce often has the skills needed in higher-wage jobs but are conventionally ignored. Hence, hiring should be more geared towards community colleges, military service, and on-the-job learning. Secondly, defense companies must shift lenses with respect to the role of manager as someone who drives purpose and leads greener teams of employees which may exhibit a greater turnover rate. Furthermore, many companies are investing in creating nonlinear career paths, non-promotion based advancement mechanisms, and different forms of recognizing achievement. This can aid companies in better catering to an increasing demand for more visible and faster career progression and career optionality. McKinsey also highlights the need for instituting mechanisms which enable more frequent evaluation and discourse around diversity, equity and inclusion practices, coupled with the creation of employee resource groups which can better equip defense companies like Lockheed Martin Corporation (NYSE:LMT), General Dynamics Corporation (NYSE:GD), and Northrop Grumman Corporation (NYSE:NOC) in satisfying the requirements of the greener cohort. According to research, employees in more efficient ERGs respond with higher positive inclusion score relative to employees in non-functional or ineffective ERGs. Since a reliable flow of labor is one of the essential preconditions to value creation, defense companies are diverting greater investments in models which have a proven track record of employee retention success. One of these models is the construction of a localized “talent win room”, which accumulates resources from different organizations to curate a more efficient and seamless employee value proposition and onboarding process.
Don’t Miss: Top 20 Most Valuable Defense Companies in the World
Our Methodology
To compile our list of the 20 most powerful country leaders in the world in 2023, we decided to undertake a consensus based approach using a diverse variety of credible sources and research which studied individual and state power (1, 2, 3, 4, 5, 6). We then shortlisted more than 50 leaders which appeared most frequently during our research. Since power is an incredibly multifaceted and complex phenomenon, we established a three-pronged criteria to measure the power of each leader; the criteria is premised on the country’s military strength and the leader’s role in maintaining and enhancing it (20 points), the economic policies implemented by the leader (15 points), and the global influence of the leader in the geopolitical arena (10 points). We then proceeded to award each leader a cumulative score according to the aforementioned criteria and selected 20 leaders which scored the highest points. Subsequently, we ranked each entry based on the total points scored, from lowest to highest. Where there was a tie, we broke it based on the country’s military strength and the leader’s role in maintaining and enhancing it. We only considered leaders who were in power as of November 2023.
Many of the most powerful country leaders in the world in 2023 mentioned in this list are at the helm of affairs in the 25 Most Powerful Countries in the World in 2023.
20 Most Powerful Country Leaders In The World in 2023
20. Anthony Albanese
Total Score: 18
Anthony Albanese is currently serving as the 31st Prime Minister of Australia. He has been the leader of the Australian Labor Party since 2019, and leads one of the strongest military and economic powers in the world, Albanese is one of the most powerful country leaders in the world in 2023.
19. Bashar al-Assad
Total Score: 19
Bashar al-Assad is the current president of Syria. He also serves as the commander-in-chief of the Syrian armed forces and the secretary-general of the Central Command of the Arab Socialist Ba’ath Party. He has been in power since July 2000.
18. Justin Trudeau
Total Score: 20
Justin Trudeau is the current serving Prime Minister of Canada and the leader of the Liberal Party in the country. Canada is one of the strongest military and economic powers in the world, leading Trudeau to make our list of the world’s most powerful leaders in 2023.
17. Yoon Suk Yeol
Total Score: 22
Yoon Suk Yeol is the current president of South Korea. Prior to his presidency, Yeol has also served as prosecutor general between 2019 to 2021. Since South Korea has one of the most advanced militaries in the world due to constant existentialist threat from its Northern counterpart, Yeol is one of the most influential people in the world.
16. Luiz Inácio Lula da Silva
Total Score: 24
Luiz Inácio Lula da Silva is the current president of Brazil and a member of the Workers’ Party. He has long been one of the most popular political figures in the country. His previous stint in office lasted for eight years.
15. Recep Tayyip Erdogan
Total Score: 26
Recep Tayyip Erdogan is currently serving as the 12th president of Turkey. Co-founder and leader of the Justice and Development Party, Erdogan has been one of the most seminal figures in Turkish history. His confrontational image, populist brand of politics, and willingness to use Turkey’s mighty military power makes him one of the most powerful country leaders in the world in 2023.
14. Abdel Fattah El-Sisi
Total Score: 26
Abdel Fattah El-Sisi is the current president of Egypt and has been at the helm of affairs since 2014. One of the most influential figures in the Middle East, especially in context of the current conflict between Israel and Palestine, El-Sisi is incredibly powerful and influential in geopolitical circles.
13. Rishi Sunak
Total Score: 28
Rishi Sunak is currently serving as the Prime Minister of the UK and is also the leader of the Conservative Party. Since the UK is an esteemed member of the G7 and the NATO alliance, Sunak is considered the leader of one of the most powerful countries in the world.
12. Olaf Scholz
Total Score: 30
Olaf Scholz has been serving as the chancellor of Germany since December 2021. The leader of one of the world’s largest economies and mightiest militaries, Scholz is incredibly influential on the global stage.
11. Fumio Kishida
Total Score: 31
Fumio Kishida is currently serving as the Prime Minister of Japan. Since Japan is one of the fastest growing economies in the world, Kishida is an important stakeholder in nearly all geopolitical discussion.
10. Sheikh Mohamed bin Zayed Al Nahyan
Total Score: 31
Sheikh Mohamed bin Zayed Al Nahyan is an Emirati royal who is currently serving as the third president of the UAE. Since the UAE is one of the largest oil reserves in the world, and is a financial hotspot for global companies looking to tap into emerging markets in Asia, Nahyan is considered one of the most powerful country leaders in the world in 2023.
9. Kim Jong Un
Total Score: 33
Kim Jong Un is a North Korean politician who has served as Supreme Leader of North Korea since 2011 and is commander-in-chief to one of the most volatile, turbulent, and unpredictable nuclear powers in the world. Due to his totalitarian methods of control, he is considered incredibly powerful in the geopolitical arena.
8. Benjamin Netanyahu
Total Score: 35
Benjamin Netanyahu is currently serving as Prime Minister of Israel amidst one of the region’s most devastating conflicts. Israel is one of the most important military powers in the Middle East; hence, Netanyahu makes our list of the world’s most powerful leaders in 2023.
7. Ali Hoseini-Khameinei
Total Score: 36
Seyyed Ali Hosseini Khamenei is a Twelver Shia marja’ and the current Supreme Leader of Iran. His power intersects religious, political and theocratic lines, making him one of the most powerful country leaders in the world in 2023.
6. Emmanuel Macron
Total Score: 36
Since France is one of the strongest military and economic powers in the world, its current president Emmanuel Macron is considered one of the most influential world leaders in geopolitics today. His power is incredibly consolidated at home and abroad, making him one of the most seminal figures within the NATO alliance.
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Disclosure: None. 20 Most Powerful Country Leaders In The World in 2023 is originally published on Insider Monkey.
