The Strategy Digest
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Global Power Is Shifting. How Can Leaders Adapt?

BCG · Article · 8 Sept 2026 · Industry report · Editor's rating: ★★★ Essential

BCG's Power Index shows the world is more multipolar than at any time since before World War II, with the US (19) ahead of China (14) but neither leading every dimension, so leaders should stress-test strategy against alliance configurations rather than assess risk country by country.

Summary

The BCG Institute Power Index scores nations on 50+ indicators across economic, military and soft power back to the early 20th century, defining a pole as a composite of 10 or more, or 15 in one dimension. Today the US (19) leads China (14), neither dominates all three dimensions, and a coordinated Europe (13) qualifies as a pole on soft power. Alliance scenarios show outcomes hinge on which blocs cohere: US plus Europe scores 32, China plus Russia 18, a US-excluded Western bloc 22. Leaders should stress-test strategy across configurations, assess exposure by domain such as chips and critical minerals, and monitor emerging capability concentrations.

Editor's opinion

A rigorously quantified geopolitical framework rather than a rhetorical "the world is multipolar now" argument -- the same index methodology applied back to 1914 shows genuine historical multipolar and unipolar periods for comparison, which gives real teeth to the claim that today's US-19/China-14/Europe-13 configuration is a meaningful shift rather than commentary dressed as data. The alliance-scenario modeling is the strongest part: quantified composite scores (a US-Europe alignment roughly doubling China's score; a China-Russia alignment nearly matching a decoupled US) convert "geopolitical uncertainty" into specific, testable exposure questions a strategy team could actually run. The domain-over-geography reframing for risk assessment (semiconductor supply chains, critical-mineral processing, digital infrastructure) is a genuinely useful operational takeaway.

Key concepts

BCG Institute Power Index · Pole threshold · Economic, military and soft power · Alliance configuration scenarios · Domain-based exposure

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