The Enduring Power Of A Good Brand: Canada, Soft Power, And The Energy Sector

The world's stage is more complex and challenging than ever. Geopolitical uncertainties, rapid technological shifts, and transnational challenges like climate change and regional conflicts are constantly testing traditional state power dynamics. In this shifting landscape, the role of "soft power"—the ability to influence others through attraction and persuasion rather than coercion—has become paramount, especially for nations like Canada.¹

This was the central theme of the recent Canadian Ditchley Foundation conference in Ottawa, which convened international leaders, policymakers, academics, and business figures to critically examine the evolving nature of state power. The discussions underscored a vital point for the global energy sector: in a world craving stability and predictability, Canada's strong international brand and foundational stability are not merely matters of national pride; they are hard currency for our economy and a powerful tool in advancing our interests globally.

This article draws on observations and themes from the Canadian Ditchley Foundation conference held in Ottawa, Canada, from October 26-28, 2025. Ditchley Foundation and Canadian Ditchley Foundation lead conferences aimed at building new common ground and addressing some of the world's most complex geopolitical problems. The observations and commentary offered here reflect the writers' personal impressions of the discussion and should not be understood or interpreted as the official viewpoint of either the Ditchley Foundation, the Canadian Ditchley Foundation nor any of the conference participants.

Canada's reputation: A soft power asset in a hard world

The concept of soft power, coined by American scholar Joseph Nye, relies on a nation's cultural appeal, political value, foreign policy, and what can be called national credibility to shape the preferences of other global actors. Unlike military or economic might (hard power), soft power leverages assets such as:

• Cultural assets and institutions
• Democratic values and human rights
• Scientific & technological cooperation
• Educational institutions and global alumni
• Global environmental leadership

Crucially, national brand credibility, built on the consistent, long-term demonstration of these values through global actions, is its bedrock.

Recent international surveys affirm that Canada's brand is not just robust—it's trending upward. The latest Nation Brands Index (NBI), published by Simon Anholt, emphasizes the "somewhat more unexpected rise of Canada" in global reputation, placing it in the top tier of the world's nations.² This success contrasts sharply with countries that may possess vast hard power but lack the sustained soft power and credibility to attract long-term investment or global partners. The NBI often reveals that nations lacking an established, positive global image face a much steeper challenge in building a reputation for stability, trustworthiness, and attractiveness to foreign capital, regardless of their resource wealth. Canada's reputation for a high quality of life, a strong social welfare system, and independent, resilient educational institutions are well-known, but its recent reputational jump is also being attributed to its "courage, independence, and resolute position during trade and political conflicts.³

This high-value national brand translates directly into an economic advantage. Canada is widely perceived as a model of diplomacy and soft power, ranking highly in indices for global peace, stability, and an ease of doing business. This reputation is rooted in our foundational strengths: an open, trading economy, the rule of law, stable financial and governance institutions, free media, and an active civil society. As veteran diplomat Jeremy Kinsman has long argued in his analysis of Canada's global role, this reputation—the nation's "credibility"—is its primary foreign policy asset. It allows Canada to maintain its standing and influence without resorting to the large-scale coercion favoured by superpowers.

The soft power paradox: Acknowledging imperfection

It is vital to acknowledge that Canada's soft power is not derived from a myth of perfection. The nation, like all others, faces significant domestic and international challenges that, when handled poorly, can harm its credibility. For soft power to be effective, it must be genuine.

For instance, the Canadian government has faced substantial and public criticism for:

• Diplomatic missteps and inconsistent foreign policy: There have been instances where Canada's foreign policy has been perceived as inconsistent or ill-coordinated, leading to domestic and international critique regarding its clarity of purpose and staying power on the global stage.
• Systemic failures on Indigenous reconciliation: Despite its commitment to human rights, the government faces ongoing, profound challenges in addressing the historical and systemic injustices against Indigenous Peoples, a failure that is frequently highlighted by international bodies and civil society.

Equally, the private sector has faced scrutiny that challenges the national brand:

• Ethical oversights abroad: Canadian multinational corporations have occasionally faced public allegations of ethical lapses or insufficient environmental due diligence in their operations outside of Canada, drawing negative international attention.
• Financial scrutiny: Domestic reports and international reviews have, at times, focused on Canada's struggles to effectively combat money laundering and tax evasion, issues that touch upon the integrity of its stable financial institutions.

However, as Joseph Nye observed, the soft power of democratic states has a built-in advantage: the freedom to publicly criticize and correct these mistakes.⁴ The fact that civil society organizations, a free media, opposition parties, and individual citizens (like the authors of this article) are able to openly and fiercely critique the government and private sector regarding these failures underscores the very values that make Canada attractive: democracy, the rule of law, and a genuine commitment to human rights. The transparency and public debate surrounding these issues reinforce the core foundations of stability, rather than undermine them. This capacity for self-correction is, in itself, a powerful soft power asset.

Soft power as structural advantage: Sovereignty, data, and energy

The Ditchley discussions repeatedly identified Canada's most critical strategic asset as its structural reliability—a concept that goes beyond reputation and into the hard wiring of its economy and legal system. This positions Canada as a safe harbour for investment, immigration, and dialogue in an unstable world.

1. The rule of law as economic pillar: Canada's steadfast commitment to the rule of law, including an independent judiciary and an active, independent legal bar, is what makes its market commitments credible. In a world where economic coercion and asset seizure are increasingly common, the rule of law becomes the ultimate stabilizer for global capital, making Canada's open courts and predictable regulatory environment a massive competitive advantage.

2. Sovereignty in the age of intangibles: Conference participants underscored the necessity of defending Canadian sovereignty in emerging domains—data sovereignty and energy sovereignty—to maintain economic control.

• Data sovereignty: As digital power becomes economic power, the lack of a comprehensive national data strategy and IP policy risks relegating Canada to "digital colony" status, with wealth flowing to foreign owners of intangible assets. However, the integrity of Canadian firms, often seen as a neutral "digital Switzerland" not fully subject to the U.S. CLOUD Act, provides a unique trust premium for international partners seeking secure data governance.⁵ This also underscores the importance of establishing global recognition of Canada as a digital sovereign nation.
• Energy sovereignty: Canada's vast and diverse energy resources are not merely exports; they are a geopolitical tool. The stable and secure supply chain, backed by robust regulatory frameworks (often built in partnership with Indigenous communities), positions Canada as a crucial steadfast ally for partners seeking to de-risk their supply chains away from less reliable, high-geopolitical-risk sources.

3. The steadfast ally and safe harbour: The collective strength of these factors—stable governance, rule of law, and reliable resource/data access—allows Canada to move beyond the limiting "middle power" mindset and focus on maximizing its agency as a reliable steadfast ally and trading partner. In a transactional world, Canada's commitment to multilateralism, when backed by tangible capabilities (like the ability to host secure data and reliably supply energy), provides partners with a trustworthy anchor for their economic and security interests.

Practical recommendations for advancing Canada's interests

The Ditchley conference aimed to identify practical recommendations for policymakers and practitioners seeking to effectively develop and leverage soft power assets. For Canada and other liberal democratic nations with open trading economies, the path forward involves a conscious strategy focused on sustaining the national brand:

• Invest in and leverage soft power assets: Consistently fund and promote key soft power contributors, such as cultural exchange programs, development aid and humanitarian assistance, and public diplomacy. These elements foster mutual understanding and enhance reputation.⁶
• Embrace neutral convening power: Proactively use Canada's reputation as a neutral, respected global actor to host and facilitate dialogue on challenging transnational issues (e.g., climate change, AI governance, Arctic security). This builds trust and fosters cooperation.
• Integrate private sector leadership: Recognize and support the role of private sector leadership and university alumni living abroad as potent, decentralized soft power resources. Every responsible Canadian company operating globally reinforces the national brand.⁷
• Develop "smart power" strategies: Formulate foreign policy objectives that deliberately combine the attraction of soft power (e.g., values, reputation) with the strategic support of hard power (e.g., economic influence, judicious use of military capabilities) to address global challenges. This is essential in a world where superpowers rely heavily on coercion.
• Focus on consistency and credibility: Soft power is harder to utilize and relies upon state credibility developed over decades—and sometimes lost or harmed in an instant. Policymakers must ensure that state actions consistently reflect the promoted values (e.g., democratic principles, human rights) to maintain moral authority and influence.

The path forward for Canadian business

The conference underscored that Canada's global standing is a precious, inherited asset—a resource that must be actively preserved and leveraged. As the world's superpowers engage in ambitious unilateral actions that often "expend and eliminate soft power," Canada's credibility becomes increasingly rare and valuable.

For Canadian businesses operating in the global energy, infrastructure, and technology sectors, this means:

• Championing the brand: Every international business transaction, every ethical operation, and every commitment to ESG standards reinforces the national brand. Private sector leadership, with or without public sector collaboration, is a powerful form of soft power.
• Strategic partnerships: Actively seeking out and promoting Canadian partnerships in foreign projects can leverage our nation's reputation to unlock opportunities in markets where stability is a key concern.

In a world increasingly characterized by complexity and disorder, Canada's long-cultivated soft power is its shield and its economic engine. It's the reason investors and partners will continue to seek out this safe, stable, and predictably "boring" jurisdiction—a fact that bodes exceptionally well for the future of our economy and the global role of Canadian business.

Footnotes

1 Joseph S. Nye Jr., Soft Power: The Means to Success in World Politics (New York: PublicAffairs, 2004), 5–9.

2 See Jeremy Kinsmen's excellent commentary on Anholt's findings at: Jeremy Kinsman, "The World Loves More Canada: Simon Anholt's New Nation Brands Index," Policy Magazine, October 31, 2025.

3 Kinsman, "The World Loves More Canada."

4 Joseph S. Nye Jr., Soft Power, 126–127. Joseph Nye uses the Voice of America (VOA) as a classic example of how open, public criticism of the state and the ruling party reinforces, rather than weakens, a democratic state's soft power and credibility.

5 The U.S. laws contributing to these concerns include the Clarifying Lawful Overseas Use of Data Act (CLOUD Act), Pub. L. No. 115-141, 132 Stat. 348 (2018), and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), Pub. L. No. 107-56, 115 Stat. 272 (2001).

6 See Mark Dickinson's excellent book regarding the incredible history and legacy of Canada World Youth: Mark Dickinson, A School for Tomorrow: The Story of Canada World Youth (Toronto: Cormorant Books, 2025).

7 The Asia Pacific Foundation of Canada's Canada in Asia Conference (CIAC), co-founded and presented with Universities Canada, is a leading example of how to leverage university alumni networks as a decentralized asset for projecting Canada's brand and economic interests. See: https://www.canada-in-asia.ca.

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