The ‘soft power’ of positive thinking

Along with cricket, thongs and backyard barbecues, the arrival of the annual Australian Lamb ad has become synonymous with an Australian summer.

What began back in 2005 as a pitch to get Australians eating more lamb has since become a yearly cultural icon that tackles an issue that resonates with the moment – from border closures during COVID to the generation gap.

The ad features a team of ‘international happiness auditors’ coming to check out Australia. But you may be surprised to hear that this is a real thing.

Wellbeing measures

There really is a world happiness index. In fact, there is more than one.

But measuring happiness is far from straightforward.

It’s easy to say that Australia is a rich country by global and historical standards. But that doesn’t tell you how wealth is distributed or whether people are happy.

The World Happiness Report – which currently ranks Australia 11th – relies on the Cantril Ladder, a life evaluation question in which respondents rate their current life on a scale from zero (worst possible life) to 10 (best possible life).

The simplicity of the question makes it easily translatable and comparable across cultures. It is drawn from the Gallup World Poll, which surveys over 100,000 people annually across 140 countries.

But some countries take a different approach.

Bhutan’s Gross National Happiness Index evaluates wellbeing at a societal level.

It considers nine domains  psychological wellbeing, health, time use, education, cultural, good governance, community vitality, ecological, and living standards – captured through 33 specific indicators.

Bhutan measures national progress through Gross National Happiness (GNH) rather than just GDP. 

These metrics aim to reflect a broad picture of human flourishing.

Finally, the Ipsos Happiness Index – which ranks Australia 19th – asks people to rate their happiness and quality of life through annual online surveys in roughly 30 countries.

It’s a great illustration that money alone can’t buy you happiness. For example, Indians ranked highest with 51 per cent saying they are very happy, and yet, despite being much richer, South Korea was lowest ranked at just four per cent

So, income matters up to a point, but in general people rank four other factors – relationship with family, feeling appreciated, feeling in control and mental health – higher than financial situation as a driver of happiness.

For unhappy Australians, though, money looms large with 62 per cent saying their finances cause them to feel this way.

Interestingly, the Ipsos Happiness Index also measures views on the future for its consumer confidence index, so it can compare happiness in the present with expectations.

Australia ranks high on the measure ‘my current quality of life is good’ – but less than 50 per cent expect their quality of life to be much better in five years. On the other hand, a country like Brazil expects better days ahead.

Why optimism matters

A country that’s optimistic about the future projects momentum: the sense that life is improving and opportunities are expanding.

This confidence also shapes how other countries see it.

For example, the Lowy Power Index recognises that a nation’s belief that it is on the rise is itself a form of influence – making it a more attractive partner, destination and voice in global affairs.

By contrast, countries trapped in pessimism, grievance or nostalgia for past greatness rarely inspire others. They appear defensive and inward looking, while optimism signals a society that is open and adaptable.

Optimism has long been seen as part of Australia’s national character, and it is more than just a cultural quirk – it’s a source of influence.

The ‘soft power’ of positivity

As well as international happiness rankings, there are also the ‘soft power’ rankings.

This is a country’s ability to attract and influence others – not through military might but through appeal. Think Thai food, Indian yoga or Korean pop music.

Soft power can be a fuzzy concept. At its core, it’s about whether people are motivated to help you achieve your goals. A bit like charisma (or ‘riz’).

So, it’s no surprise that as Australia slips down the happiness rankings, the same is happening to its soft power.

In the 2025 Global Soft Power Index, Australia ranked 14th – down from 10th in 2021. Perhaps a dose of optimism can help restore Australia’s global appeal.

Domestic happiness and international influence

This suggests a surprising link between happiness at home and influence abroad.

Domestic happiness is more than a feel-good metric – it shapes how a nation is seen internationally.

Finland has understood this well, turning its status as the world’s happiest country for eight years in a row into a successful marketing tool that boosts influence and tourism alike.

Australia, even after slipping down the happiness rankings, remains a largely positive and optimistic place – and that attitude is a form of soft power that’s worth using more deliberately.

In that sense, the lamb ad isn’t wrong to urge Australia to get its mojo back.

Whether lamb is the answer – or whether the real work lies in tackling issues like inequality, housing affordability and social disconnection – is exactly the kind of debate best settled around a BBQ.

This article was published by Pursuit.