Asia Power Index

About Asia Power Index: 

• It was launched by the Lowy Institute in 2018.
• It is an annual measure of power dynamics in the Asia-Pacific region.
• It evaluates 27 countries across the Asia-Pacific, examining their ability to shape and respond to the external environment.
• The Index focuses on both the material capabilities of states and the influence they exert on the international stage.
• The 2024 edition offers one of the most comprehensive assessments of power distribution in the region to date. Timor-Leste has been included for the first time, reflecting its growing importance in Southeast Asia.
• It index is divided into resource-based and influence-based determinants
• Resource-Based Determinants:
  • Economic Capability: The core economic strength of a country, measured through indicators like GDP at purchasing power parity (PPP), technological sophistication, and global economic connectivity.
  • Military Capability: Evaluates conventional military strength based on defense spending, armed forces, weapon systems, and signature capabilities like long-range power projection.
  • Resilience: The internal capacity to deter threats to state stability, including institutional robustness, geopolitical security, and resource security.
  • Future Resources: Forecasts the future distribution of resources, including economic, military, and demographic factors projected for 2035.
• Influence-Based Determinants:
  • Economic Relationships: The capacity to exercise leverage through trade, investment, and economic diplomacy.
  • Defense Networks: The strength of alliances and partnerships, measured through military cooperation and arms transfers.
  • Diplomatic Influence: The extent of a country's diplomatic reach, participation in multilateral forums, and foreign policy ambition.
  • Cultural Influence: The ability to shape international public opinion through cultural exports, media, and people-to-people ties.
• A country's overall power score is derived from a weighted average of these eight measures, encompassing 131 individual indicators.

Q1: What Is Purchasing Power Parity?

Purchasing power parity (PPP) is a popular macroeconomic analysis metric used to compare economic productivity and standards of living between countries. PPP involves an economic theory that compares different countries' currencies through a "basket of goods" approach. 

Source: India becomes 3rd Most Powerful Nation in Asia, Surpasses Japan in Asia Power Index