In compiling our first ranking of the World's Most Powerful People we wrestled with these questions--and many more--before deciding to define power in four dimensions. First, we asked, does the person have influence over lots of other people? Pope Benedict XVI, ranked 11th on our list, is the spiritual leader of more than a billion souls, or about one-sixth of the world's population, whileWal-Mart ( WMT - news - p
In Pictures: The World's Most Powerful People
Then we assessed the financial resources controlled by these individuals. Are they relatively large compared with their peers? For heads of state we used GDP, while for CEOs, we looked at a composite ranking of market capitalization, profits, assets and revenues as reflected on our annual ranking of theWorld's 2000 Largest Companies. In certain instances, likeNew York Times Executive Editor Bill Keller (No. 51), we judged the resources at his disposal compared with others in the industry. For billionaires, like Bill Gates (No. 10), net worth was also a factor.
Next we determined if they are powerful in multiple spheres. There are only 67 slots on our list--one for every 100 million people on the planet--so being powerful in just one area is not enough to guarantee a spot. Our picks project their influence in myriad ways. Take Italy's colorful prime minister, Silvio Berlusconi (No. 12) who is a politician, a media monopolist and owner of soccer powerhouse A.C. Milan, or Oprah Winfrey (No. 45) who can manufacture a best-seller and an American President.
Lastly, we insisted that our choices actively use their power. Ingvar Kamprad, the 83-year-old entrepreneur behind Ikea and the richest man in Europe, was an early candidate for this list, but was excluded because he doesn't exercise his power. On the other hand, Russian autocrat Vladimir Putin (No. 3) scored points because he likes to throw his weight around by jailing oligarchs, invading neighboring countries and periodically cutting off Western Europe's supply of natural gas.
To calculate the final rankings, five Forbes senior editors ranked all of our candidates in each of these four dimensions of power. Those individual rankings were averaged into a composite score, which determined who placed above (or below) whom.
U.S. President Barack Obama emerged, unanimously, as the world's most powerful person, and by a wide margin. But there were a number of surprises. Former President George W. Bush didn't come close to making the final cut, while his predecessor in the Oval Office, Bill Clinton, ranks 31st, ahead of a number of sitting heads of government. Apple's ( AAPL -ne
This ranking is intended to be the beginning of a conversation, not the final word. Is the Dalai Lama (No. 39) really more powerful than the president of France (No. 56)? Do despicable criminals like billionaire Mexican drug lord Joaquín Guzmán (No. 41) belong on this list at all? Who did we overlook? What did we get wrong? Join the conversation by commenting now.
No.1 Barack Obama
No. 2 Hu Jintao
No. 3 Vladimir Putin Prime Minister Russia Age: 57
Prime Minister might as well be known as Czar, Emperor and Autocrat of All the Russians. Vastly more powerful than his handpicked head-of-state, President Dmitry Medvedev. Presides over one-ninth of Earth's land area, vast energy and mineral resources. Former KGB officer unafraid to wield his power; invading Georgia, cutting off natural gas supplies to Ukraine or Western Europe (again). Declared nuclear power has veto on U.N.'s Security Council. The anti-Oba.
No. 4 Ben S. Bernank Chairman Federal Reserve U.S. Age: 5
No. 6 Carlos Slim Helu Chief executive Telmex Mexico Age: 69
World's third-richest man is dominant economic force in Mexico, personal fortune equivalent to some 2% of Mexican GDP. Telecommunications monopolist: His Telemex owns 90% of Mexico's fixed telephone lines; his TelCel has 90% of wireless market. Also head of group dedicated to improving Mexico's roads, energy infrastructure, water supply. New focus, media: Last fall snapped up 7% stake in the New York Times Co., largest after Sulzberger owner-family. "I think it's perverse to believe there shouldn't be strong companies in poor countries."
No. 7 Rupert Murdoch Chairman News Corp. U.S. Age: 78
"The leading British (the Times), Australian (The Australian), American (The Wall Street Journal) newspapers, in addition to tabloids like the New York Post and The Sun (U.K.). Also movies (20th Century Fox), books (HarperCollins), television (Fox, BSkyB he man who owns the news" still believes in print, not afraid to use vast media holdings to further personal political views. Media empire includes), online (MySpace). Weak ad-marketing hurting his News Corp.: net loss of $3.4 billion in fiscal 2009, stock off March lows, but still well below 2007 levels, when he made a $5.6 billion gamble on Dow Jones. Accused Google of stealing content; threatened to block search engine from indexing his Web sites. "Quality journalism isn't cheap. "
No. 8 Michael T. Duke President, CEO and Director Wal-Mart Stores, Inc. U.S. Age: 59
Runs world's largest retailer, more country than company: $401 billion in annual sales, 2 million employees, 8,000 stores. Wal-Mart alone is China's eighth-largest trading partner. Largest private-sector employer in U.S.; favorite target of unions; blamed and praised for backing Obama health care proposals, shifting economic power from manufacturers to retailers, from mom-and-pop to big box. "I am competitive by nature and I want to win."
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No. 9 Abdullah bin Abdul Aziz al Saud King Saudi Arabia Age: 85
Absolute ruler of desert kingdom that contains the world's largest crude oil reserves, two holiest sites in Islam. State-owned oil producer Saudi Aramco most profitable company on Earth, earns more than $200 billion a year, has reserves of 260 billion barrels or 25% of planet's known supply. Ultimate succession unclear: 85-year-old king's official heir is 81-year-old Crown Prince Sultan bin Abdul Aziz Al Saud. In 2006, established committee of senior princes to ensure smooth transition in the event both become incapacitated.
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No. 10 William Gates III Co-Chair Bill & Melinda Gates Foundation U.S. Age: 54
Richest man in the world monopolized, transformed software business. More than 85% of world's hundreds of millions of computer users stare at, struggle with, Microsoft products on daily basis. Second act: Saving the world. Still Microsoft chairman, but now devotes day-to-day to his Bill & Melinda Gates foundation, the largest charity on Earth with $34 billion endowment. Foundation devoted to reducing hunger, improving education and fighting diseases like malaria, tuberculosis and AIDS
Philanthropists
Eli Broad
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Warriors
Wesley Clark
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Liberals
Howard Dean
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Conservatives
Karl Rove
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Hollywood
Harvey Weinstein
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Energy
T. Boone Pickens
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Finance
Meredith Whitney
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History
Henry Kissinger
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Technology
Kevin Rose
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Imperialists
Paul Maidment
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Russia
Maxim Kashulinsky
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India
Indrajit Gupta
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Thinkers
Shirley M. Tilghman
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China
Hu Shuli
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Teachers
Deepak Chopra
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Media
Katie Couric
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Criminals
Interpol
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Sports
Lance Armstrong
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Medicine
Elias Zerhouni
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Reader Picks
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Michael Cima
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Governor Bank of Japan Japan Age: 60 TOSHIFUMI KITAMURA/AFP/Getty Images
Veteran banker first joined Bank of Japan in 1972; holds graduate degree in economics from the University of Chicago; runs one of world's most important central banks. Recently relaxed some emergency measures implemented in the wake of the collapse of Lehman Brothers, including outright purchases of corporate bonds, yet kept benchmark interest rate at rock-bottom 0.1%.
No. 27 Sheikh Ahmed bin Zayed al Nahyan
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Prime Minister India Age: 77 PRAKASH SINGH/AFP/Getty Images
Soft-spoken Sikh economist won landslide re-election victory despite sharp slowdown, poverty and non-Hindu faith. Credited with transforming India's quasi-socialist economy into world's second-fastest-growing. As finance minister (1991-1996), abolished cumbersome "Licence Raj" requirements and opened up India to foreign investors and outsourcing. From the "fences make good neighbors" file: "We all know the epicenter of terrorism in the world today is Pakistan." Has nuclear arsenal at disposal.
No. 37 Osama bin Laden
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Prime Minister Israel Age: 60 AP Photo/Gali Tibbon
Second-term hawk insists he's committed to permanent Palestinian peace treaty. Time could be ripe: Syria, Hamas willing to play; Iran's influence diminished, other Arab states could be coaxed into recognizing Israel. But his refusal to freeze Jewish settlements in West Bank and Jerusalem has Palestinian President Abbas questioning sincerity, threatening to boycott re-election. Adding salt to wounds: currently fighting United Nations report accusing both Israel and Hamas of war crimes.
No. 47 Dominique Strauss-Kahn
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President France Age: 54 Bruno Spada/Latin Content/Getty Images
Campaigned on clean government, deficit reduction, free markets; now mired in scandal (cultural Minister recently admitted to paying for sex with Thai boys), socialist-style spending. Recently made pledges to check the power of international banks, impose on bonus payments. In 2008, made singer Carla Bruni his third wife; former model reportedly boasts several inches in height over the diminutive president.
No. 57 Steve Jobs
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In our annual TIME 100 issue, we do the impossible: name the people who most affect our world Read More »
TimesTop 10o Most Influential People in the World
How do I describe Uncle Teddy? Everyone knows him as the Lion of the Senate, a liberal icon, a warrior for the less fortunate, a fierce advocate for health-care reform, a champion of social justice here and abroad and now even a Knight of the British Empire. But I know him as the rock of his family: a loving husband, father, brother and uncle. He's a man of great faith and character.
His personal story demonstrates that strength is built through struggle and hardship, and he shares that strength with tremendous compassion and empathy. Channeling his own experiences with tragedy and loss, he has personally touched the lives of countless others who have had to confront their own challenges.
Teddy, 77, is a heroic figure not just in the Democratic Party but in American politics in general. That's because he overflows with energy and passion, and he devotes that intense caring to serving people in need and fighting on behalf of their causes. While he and I do not agree on every political issue, I have always admired his ability to work across the political aisle on matters such as immigration, health care, civil rights, education and the environment.
His expertise in politics is extraordinary. I have personally benefited from his experience and advice, as I know countless others have. As a Senator, Teddy has a clear gift for communicating with people and showing true leadership. Through his actions, he proves that public service isn't a hobby or even an occupation, but a way of life.
The new Administration is bringing health care back to the forefront of the domestic agenda, and there is one man I know who will push tirelessly to make quality health care accessible and affordable for all Americans. With Senator Kennedy leading the charge, nothing will stand in the way.
Schwarzenegger is the Republican governor of California and is married to Maria Shriver, the Senator's niece
Fast Fact: In a recent survey by the Hill newspaper, Kennedy's GOP colleagues ranked him No. 1 among Democrats for bipartisanship
Back in the mid-1990s, when he was new labour's brooding, intellectual heavyweight, I was a lone parent struggling to get by. He said he was not interested in stigmatizing the poor but in finding solutions for their predicament. I was tired of hearing government ministers lambaste the likes of me as irresponsible scroungers. I wanted Gordon Brown in charge.
He went on to become one of the longest-serving Chancellors of the Exchequer that Britain has ever seen. While our economy grew strongly, he could have stood back and done nothing; on the contrary, he brought in and continually drove up the minimum wage, and 600,000 children and a million pensioners were raised out of poverty. Brown believed the wealthy would always be able to look after themselves; it was people at the other end of the economic scale that government ought to be helping.
When capitalism shuddered on its foundations last year, Brownite words like responsibility and morality started issuing from the unlikeliest politicians. Global financial regulation, something Brown had advocated long before last September, shot to the top of the political agenda. Now Prime Minister, Brown took a lead among European leaders in setting a course for economic recovery. He hosted the most important meeting of the world's major economies in years. In doing so, the British press said, he had become "Chancellor to the world."
The son of a Presbyterian minister, with a formidable intellect and a work ethic to shame a nest of ants, the 58-year-old Brown is frequently dubbed "dour." I know him as affable, funny and gregarious, a great listener, a kind and loyal friend. These are strange and turbulent times, but issues of fairness, equality and protection of the poor have never been more important. I still want Gordon Brown in charge.
Rowling is the author of the best-selling Harry Potter series
Fast Fact: At age 10, the future Prime Minister invited a notorious local burglar to dine at the family home
Rarely do the names Descartes and Voltaire emerge during a debate on global economic policy. But when they do, it often means Christine Lagarde is using philosophy to drive home a sophisticated point about the markets.
As the first female Finance Minister of any G-8 nation, Lagarde knows well what it takes to break down barriers. In France she has tirelessly pursued intelligent reforms of the economy with a no-nonsense approach. And with her counterparts in the G-20, she has forcefully advocated for greater adherence to international standards, ensuring a race to the top rather than the bottom.
Historic moments, like the financial crisis we are living through today, require extraordinary figures to take extraordinary action. For Lagarde, 53, that mandate builds upon a lifetime spent championing shared economic prosperity through a robust transatlantic relationship. Whether in Chicago, where she led Baker & McKenzie, one of the world's largest law firms, or in Paris, where she has worked to confront
a deteriorating market, Lagarde excels. It is no coincidence that de
spite being one of the first countries to face this crisis, France is showing considerable resilience.
As president of the New York Fed and as Treasury Secretary, I've met Lagarde a number of times. In each encounter, her lightning-quick wit, genuine warmth and ability to bridge divides while remaining fiercely loyal to French interests have been a source of admiration. In capitals around the world, as governments collectively seek economic recovery, undoubtedly there is shared appreciation that in Paris sits Christine Lagarde.
Geithner is U.S. Secretary of the Treasury
The title sheriff does not conjure up visions of a warm, fuzzy humanitarian. The Sheriff of Nottingham made Robin Hood's life miserable just because Robin was trying to redistribute the wealth in Sherwood Forest. Sheriff Thomas (Blind Tom) O'Brien of Cook County in Illinois had perfectly good vision, except he could never see any of the illegal gambling that pervaded the county during his tenure. But the current Cook County sheriff, Thomas Dart, is giving a new image to the office.
In the autumn of 2008, Dart, 46, announced he would not carry out any more evictions tied to the large number of foreclosures in Cook County. It was a bold move since the sheriff's duties specifically include the obligation to enforce writs of eviction. Not all the judges whose writs he was refusing to execute shared his sense of outrage, and some of the banks and others seeking to evict the occupants of the foreclosed properties threatened to hold him in contempt of court. A complaint was filed with the state board that disciplines lawyers. Dart decided to stonewall all criticism.
"Most of those people being evicted had been given no process," he said. "This was the best way to get people to the table to start solving these problems rather than throwing kids out on the street."
It worked. After a few weeks, the courts hammered out a plan with the sheriff. Before eviction writs can be enforced, it must be shown that the people to be evicted have been told why it is happening and given an opportunity to solve the problem.
Dart is serving evictions again, but very few of them. And so much for the image of sheriffs as all gun and no heart.
Mikva is a retired chief judge of the U.S. Court of Appeals for the D.C. Circuit
The new Israeli and American administrations may be on a collision course. And the co-navigator of the Israeli ship of state is Avigdor Lieberman, the Foreign Minister, who heads the right-wing Yisrael Beitenu (Israel Is Our Home) party, the main partner of Benjamin Netanyahu's Likud in the new coalition government.
On April 1, Lieberman told his Foreign Ministry staffers (and the world), "If you want peace, prepare for war." He added, provocatively, that Israel was not bound by the Annapolis framework of November 2007, when Israeli, American and (moderate) Arab leaders agreed that the Palestine-Israel problem would be solved on the basis of a two-state settlement.
Lieberman, 50, was born and grew up in the Moldovan capital, Kishinev, the site, in 1903 and 1905, of iconic anti-Semitic pogroms. He immigrated to Israel in 1978 and is a resident of the West Bank settlement of Nokdim. At times in the past, he has contemplated a two-state solution, even suggesting that Nokdim could be uprooted in exchange for "real peace." But whatever his true beliefs, the Palestinian issue may well soon be irrelevant. The fractured Palestinians, with the Islamist Hamas party setting the tone, are far from ready for a two-state settlement. The issue that is currently, explosively on the table — and will increasingly dominate regional and international agendas — is the Iranian nuclear program. Lieberman believes (as do Netanyahu and Defense Minister Ehud Barak) that Iranian acquisition of nuclear bombs will mortally threaten Israel's existence.
Though a question mark hangs over Lieberman's prominence in Israel's decision-making (he is under investigation for corruption), he will be one of the most vigorous advocates of a pre-emptive Israeli strike to destroy Iran's nuclear facilities should Western diplomacy fail to curb the Iranian project. With Barack Obama bent on placating the Muslim world and talking with Tehran, here too are grounds for an Israeli-American rupture.
Morris is the author of One State, Two States: Resolving the Israel/Palestine Conflict
Mexican druglord Joaquín Guzmán, 52, is the new Pablo Escobar, a kingpin testing the ability of a nascent democracy to control organized crime. In 2001, Guzmán, a.k.a. Chapo, or Shorty, escaped from a prison near Guadalajara in a laundry van and sparked a ghastly drug war responsible for the murders of almost 15,000 traffickers, cops, soldiers and civilians — violence that respects no border. Mexican President Felipe Calderón has sent his army after Guzmán, who heads the powerful Sinaloa drug cartel, but the man who tops Mexico's list of most-wanted criminals also made Forbes magazine's billionaires list this year. Scratching him off both rolls is now a U.S. as well as a Mexican priority.
Fast Fact: The U.S. is offering a $5 million reward for Guzmán's capture
Nouri al-Maliki is the first Iraqi Prime Minister to hold office under the new constitution. He spent most of his prior life as an Islamic Dawa Party activist working for Saddam's overthrow. Dawa, long years of exile and the fight against Saddam shaped al-Maliki and his worldview.
Al-Maliki, 58, assumed his role at a time when violence was high. The bombing of al-Askari Mosque in February 2006 was intended to cause an all-out war between Shi'ites and Sunni Arabs. During those tense times, I met with al-Maliki often. I found him to be focused on establishing security but torn on some key issues. He understood the need for reconciliation with former Baathists but was concerned that they would conspire to return to power. He told me he opposed the militias, but he was loath to move against the powerful Jaish al-Mahdi (JAM) because its political wing had supported his bid for office and because he believed it protected Shi'ites against Sunni attacks.
The evolution in al-Maliki's performance as Prime Minister surprised many. He became committed to building a new Iraqi state. His decision to use force against JAM in Basra in March 2008 — when he took charge of the operation himself — was a defining moment. Al-Maliki has skillfully maintained good relations with both the U.S. and Iran and handled Iraqi political groups well.
When I had dinner with him in Baghdad recently, I found him to be more at peace with himself, more confident that Iraq will succeed. But he and his nation face challenges. Iraq needs further progress in reconciliation. Violence could increase again. Kurds and the al-Maliki government need to avoid a drift toward increased tensions. And there has been little progress toward realizing Iraq's enormous economic potential. All these challenges will tax al-Maliki's political skills and determine his place in Iraqi history.
Khalilzad is a former U.S. ambassador to the U.N., Iraq and Afghanistan
I met Hillary Clinton in the 1980s when she spoke in Washington at the Children's Defense Fund. Already her essential public qualities — intelligence, compassion, eloquence and wit — were on display. She was also a fighter for causes that count. Whether people agreed with her or not, they learned quickly that it was worth paying attention to what she had to say.
A quarter-century on, Hillary, 61, has proved herself as First Lady, U.S. Senator, author and the most successful female presidential candidate in American history. Yet her incredible journey continues. As Secretary of State, she must summon all her skills as a communicator while administering a large bureaucracy in a turbulent era on a global stage. For her, the hardest part may be accepting that in diplomacy, clear-cut wins and losses are rare. Foggy Bottom is a land of carefully chosen words, where unnecessary fights are avoided and multiple perspectives rigorously weighed. A skilled diplomat rarely generates extreme reactions; often, the most one can hope for while speaking is that when heads nod in response, it is in quiet agreement, not slumber.
Can Hillary adjust? She already has. It helps that no one doubts her courage, toughness or brains and that everyone knows who she is. It helps more that despite living under intense scrutiny for so long, Secretary Clinton knows exactly what she believes. The mission of public service is in her bones. She loves to tackle hard problems and has an assignment now where the supply is inexhaustible. She brings with her a lawyer's ability to marshal arguments, a pragmatist's skill at negotiating agreements and a natural leader's knack for making herself heard. In the end, she is more likely to change the job than the job is to change her.
Albright, who served as Bill Clinton's Secretary of State, was the first woman to hold that position
See why Hillary Clinton made the TIME 100 list
The changes taking place in Indonesia today are among the most remarkable developments in the Muslim world. The country's transition from authoritarianism has proved that as a democracy, Indonesia can be culturally vibrant and economically prosperous.
Since winning the presidency in 2004, Susilo Bambang Yudhoyono has managed to keep the nation afloat, even during the current global recession. However, significant challenges lie ahead. Poverty remains pervasive in Indonesia, and the government must press onward with improvements to the country's ailing infrastructure. Businesses are confronted with a bewildering array of regulations, and the country pays a heavy price in corruption and bribery.
The coming presidential election promises to be good to Yudhoyono, 59, thanks in no small measure to his having for the most part delivered on his promises. The history of Indonesia's democratic journey may not be that long, but it has thus far shown that the country's people will not re-elect a President who falls short of expectations.
The time is right for Indonesia, as the world's most populous Muslim nation, to assume a more prominent position in Asia and throughout the Muslim world. In response to President Obama's warm overtures to Muslim countries for a new phase in relations with the U.S., Yudhoyono can take the lead and chart a new course for the region.
Ibrahim is currently an opposition leader in Malaysia and the former Deputy Prime Minister
Boris Johnson, 44, is the most original new face in British politics since the emergence of Margaret Thatcher as a capitalist conservative nearly 40 years ago, the most engaging since Tony Blair and the most entertaining in many decades. His instant and natural wit, always lively and almost never nasty, recalls Harold Macmillan, Winston Churchill and even Benjamin Disraeli, though he has mastered self-deprecation as they never did. "But, madam, why?" he famously asked a woman who said she was voting for him.
With his ursine physique, mop of tousled blond hair and complicated private life, he seems at first an unlikely candidate for great popularity. But he is impossible to dislike, touches all political and sectarian bases and, in his complete lack of self-importance, is the anti-politician.
Never pompous, always good-humored, only serious in the face of matters that could not tastefully be treated otherwise, a crusader for London and the personification of the most well-liked traits of the English, Boris is someone the British will not tire of as a personality, so he will be judged on performance. Though he is an alumnus of Eton and Oxford, his family is middle-class. When an editor, and as a Conservative MP, he was impossible to pigeonhole into any distinct group, and his election as mayor of London showed that he pulled support from all sections of that polyglot metropolis.
He possesses the superb ability not to offend anyone while espousing policy. As an MP, he had a constant struggle not to reduce proceedings to a comedy routine. Now that he holds a great executive office, he is showing his mettle in government while losing none of his ability to be a pleasing newsmaker. Boris is in a good position to remain for a long time where he is, or to make the jump to national office following the likely victory of his party in next year's general election. He is a man to watch, and it will be an unusual pleasure to watch him.
Black was the publisher of the London Telegraph newspapers and Spectator from 1987 to 2004
Fast Fact: Johnson, who was born in the U.S. to British parents, is descended from Muslims, Jews, Christians — and King James I