Chancellor
Germany

Merkel is growing increasingly comfortable with using her clout. She recently urged China to respect the rules of international trade during a three-day trip to the country, a visit that sought to improve trade ties between the world's third and fourth largest economies. Merkel said she raised the issues of human rights, trade, environmental protection and China's rampant copyright piracy. During her second G-8 summit, Merkel got the disparate parties to stick to the agenda: combating climate change and poverty. As rotating head of the European Union, Merkel lead the way in forging a new European treaty to govern the often-unruly 27-member bloc. Domestically, despite raising taxes (at a time when countries increasingly enact pro-growth flat taxes), Merkel recently captured a 75% approval rating, partly due to a five-year low in unemployment and annual GDP growth at a still healthy 3%. Lately Merkel displayed a bit of protectionist fervor when she backed Germany's plans to block takeovers of German companies by foreign government investors, a bid to stave off cash-rich Russia and China (which says it has at least $200 billion in reserves to invest worldwide). The secret to her success: "I tend not to jump to quick conclusions," she told Evelyn Roll, her biographer. "I prefer to go over things carefully to see where the traps could be lurking."—Tatiana Serafin

Chief executive, Temasek Holdings
Singapore

Although she is the wife of the prime minister of Singapore and chief executive of the country's state-owned investment company, Ho Ching is rarely seen or heard from. But increasingly she is a force to be reckoned with, as her dealmaking ambitions span the globe. Ho Ching has been credited with converting Temasek from a Singapore-focused firm to a leading investor in Asia, making investments in Indian and Chinese companies, primarily in the telecom and banking sectors. Thanks to Ho Ching's dealmaking, the net value of Temasek's portfolio grew 27% to $108 billion from $80 billion the previous year. "This is the first time that Temasek's portfolio has crossed the US$100 billion mark," the company said in a statement. Temasek recently announced plans to invest in Barclays to support the British bank's attempted takeover of ABN Amro, the Netherlands' largest bank. However, Temasek's tax-free takeover of Shin Corp., one of Thailand's biggest telecom companies, sparked a wave of protests. The tax-free deal, along with allegations of corruption, eventually led to the overthrow of Thailand's prime minister. Moreover, the $3.8 billion Shin takeover helped hurt Temasek's profits, as an impairment charge for the deal and other associated companies caused its earnings to fall 29% this year. Ho Ching earned a master's degree in control engineering at Stanford University and held a number of top positions in both public and private entities in Singapore, before being named to her current position.—Megha Bahree

Vice premier
China

With its fastest annual growth in more than a decade, China is set to displace Germany as the world's third largest economy. All this has got vice premier Wu increasingly expanding her power—and having to deal with a growing host of problems. As China's lead official in recent economic talks with the U.S., Wu stared down her U.S. counterpart, Henry Paulson, U.S. treasury secretary, refusing to yield on the revaluation of the yuan and any curbing of China's $232 billion trade surplus with the U.S., among other items. U.S. critics have contended for years that China purposely keeps the yuan artificially low to make its exports cheaper and to stall imports. Some in Congress demand a new 27.5% tariff on Chinese goods. Wu though notes that U.S. exports to China have nearly doubled since 2001, making China the fourth largest destination for U.S. goods last year. And Wu has said that American exporters in 24 U.S. states have netted $33 billion in new orders from Chinese companies, on top of the $8 billion that China has given the U.S. for nuclear gear. The U.S. should "adopt effective measures to curb the increasingly serious trend of trade protectionism," Wu has warned. Still, Wu faces enormous challenges improving China's rickety social, legal, and economic infrastructure, challenges that are getting more attention as the Middle Kingdom rolls out the red carpet for the 2008 Olympics. They include unsafe products, copyright violations, dirt-cheap labor-costs that hurt the country's increasingly restless poor, and an environmental dystopia, with dangerous air and water pollution. Wu will need her diplomatic skills, as she inks agreements with neighboring countries and makes frequent inspection visits to regions throughout China. Expect Wu to fight to keep the upper hand until she is slated to retire in March 2008.—Tatiana Serafin

Secretary of State
U.S.

Rice sits at the center of the negative reaction worldwide to the Bush administration's policies. Though she still routinely polls higher than her boss, that isn't hard to do, given that the president's ratings hover around freezing, as one pundit put it (though Congress recently polled even lower at 18%). A number of reasons: the war in Iraq, including poor post-war planning; her difficulty in admitting to Congress the Bush administration's failure to pay proper attention to warnings about terrorism pre-9/11; awkard results of the administration's democracy agenda in the Middle East (think Palestine and Lebanon). But Rice continues to sally forth in regions riven by the worst political and religious pathologies. That includes tackling the nuclear aspirations of Iran and North Korea; helping to broker the ceasefire in the war between Israel and Lebanon; and her shuttle diplomacy in the ceaseless turmoil between Palestine and Israel. Highly visible, Rice is at the same time curiously inscrutable. Known for her almost chilly, unwavering self-discipline, Rice has historically exhibited an iron faith in her own beliefs. But recently she has shown some flexibility. After initially siding with the neoconservatives who disdained talking to the U.S.'s enemies, Rice seemed to be returning to her realist roots, advocating talks with Iran and Syria.—Tatiana Serafin

Chairman, chief executive, PepsiCo
U.S.

Nooyi has been steadily consolidating her power at PepsiCo, one of the largest companies in the world with $35 billion in annual revenue and a $105 billion market capitalization. Last February Nooyi added the title of chairman to her chief executive position at the food-and-beverage giant, maker of Frito-Lay snacks, Pepsi beverages, Gatorade sports drinks, Tropicana juices and Quaker foods; a whopping 17 PepsiCo brands each generate $1 billion or more in annual sales. Nooyi recommended spinning off Taco Bell, KFC and Pizza Hut, arguing PepsiCo couldn't bring enough value to the fast food industry. As a result, she was integral in starting Tricon, which is currently known as Yum! Brands, the world's largest restaurant company in terms of system restaurants with over 34,000 restaurants in over 100 countries. Among the restaurants Yum! houses are Kentucky Fried Chicken (KFC), Long John Silver's, Pizza Hut and Taco Bell. In an effort to offset slowing business in the Gatorade division, Nooyi advocates vitamin and energy-infused water drinks. Nooyi was born in Southern India, and went on to obtain degrees in chemistry, physics and math and master's degrees from Calcutta's Indian Institute of Management and Yale University. She came to the U.S. from India in 1978. Prior to joining PepsiCo in 1994, Nooyi did stints at the Boston Consulting Group and Motorola. "Being a woman, being foreign-born, you've got to be smarter than anyone else," she has said. In April, PepsiCo made the largest corporate purchase of renewable energy certificates (similar to carbon credits) to date—three billion kilowatt hours.—Erika Brown

President, National Congress Party
India

Chairman, Archer Daniels Midland

U.S.

Sitting in the corner office at the largest producer of ethanol in the
country has Woertz smack in the middle of the alternative energy
debate. The corn-based fuel has given a huge boost to profits at the
$37 billion agribusiness giant, and demand will only climb as refiners
face federal mandates. Competitors, like Cargill, complain that ethanol
production is ratcheting up food prices and could cause a corn
shortage. Woertz dismisses these concerns amid reports from the U.S.
government that farmers will sow 19% more acres of corn this year,
possibly helping to keep corn prices down. Woertz has promised that her
company will make cellulosic ethanol from grasses, farm waste and corn
hulls within two years. Woertz took over the position of chairman from
G. Allen Andreas in February, having succeeded him as chief executive
and president last year. Thanks to a 29-year career at Chevron, Woertz
comes well versed in energy issues, having run Chevron's $194 billion
downstream division. A few ways Woertz is making her mark at ADM: the
company is getting set to enter the sugar-cane ethanol business in
Brazil, and is exploring possibly building local sugar cane mills and
ethanol plants. Internally, Woertz also hosts an annual company town
hall, where she answers questions from employees around the
world.—Claire Cain Miller

Chief executive, Anglo American

U.K.

Though Carroll is little known on the world stage, she is a powerhouse
in the world of commodities, a sector crucial to the world's economy.
And within the corridors of world governments, she is a force to be
reckoned with. As head of one of the world's largest mining
conglomerates, with historical roots in South Africa, Carroll is the
first chief executive to come from the outside in the company's 90-year
history, its first female leader, and its first non-South African chief
exec. Carroll oversees a growing company, with interests in platinum,
coal, gold, industrial minerals and diamonds. Her company owns a 45%
stake in diamond company DeBeers, a 49% stake in MMX Minas-Rio, a
Brazilian iron ore concern, and a 41.8% interest in AngloGold Ashanti,
a gold concern. Lately AngloGold Ashanti has given Carroll headaches,
as AngloGold has been hit with accusations by the anti-poverty
non-profit War on Want that it makes its earnings from the abuse of
people in the developing countries in which it has operations, namely
Colombia, where it alleges there have been "murders of trade union and
community leaders who oppose the company's activities in the region."
Anglo American calls the assertions "inaccurate or disingenuous in its
presentation of numerous material facts" and states "AngloGold Ashanti
is only conducting exploration in Colombia and has no mining operations
there." Separately, the company has disclosed in its most recent annual
earnings release unacceptable safety performance in its platinum mines,
and that it has taken "immediate measures" to address safety concerns.
Carroll spent 18 years in the aluminum industry with Alcan and six
years in gas and oil exploration.—Suzanne Hoppough

Chief executive, Alcatel-Lucent

U.S.

Russo has certainly seen a world of change in her career. She was the
chief executive of Lucent when the company merged with Alcatel, forming
the giant telecom equipment maker, Alcatel-Lucent, in a $10.7 billion
deal late last year. Now Russo is overseeing a painful restructuring,
but she's got the career bona fides to steer the merger through rough
waters. The combined company was supposed to take aim at grabbing
market share from competitors such as Ericsson AB, but Ericsson claims
that instead it is taking market share in emerging markets. Russo has
reaffirmed Alcatel-Lucent's forecast of $819.5 million in pretax cost
savings in 2007, in line with its target of $2.32 billion within three
years. Russo also cites as a point of progress the fact that the
company to date already has cut 30% of its targeted 12,500 jobs over
three years. Prior to Alcatel-Lucent, Russo did a brief stint as the
president and chief executive of Eastman Kodak before returning to
Lucent, where she had previously worked, in 2002. Russo was widely
credited with returning Lucent to profitability in 2004, after three
years of red ink, due to a strict regimen of cost-cutting. Russo also
focused Lucent on sales of wireless equipment.—Helen Coster

Chairman, chief executive, Kraft Foods

U.S.

Rosenfeld's first full year as head of the world's second largest food
company was marked by plenty of tumult. Former parent Altria Group spun
off the $34 billion food giant as an independent company, and Kraft
traded under the symbol KFT for the first time on the New York Stock
Exchange in early April. However, the maker of Velveeta Cheese and
Oscar Mayer hot dogs has lately been at war with activist investors who
want the company to better leverage its dominant positions in big
brand, packaged products and want faster change, potentially including
divestitures. In July, uber-investor Warren Buffett bought a stake in
the company, joining veteran Wall Street raiders Carl Icahn and Nelson
Peltz, reports indicate. Rosenfeld says the company will dump
businesses "that don't fit with our growth plans," though divestitures
are tough because Kraft faces big tax hits when it sells units.
Instead, Rosenfeld plans on introducing new products, and says that
Maxwell House will get more support, including a higher quality coffee
with 100% Arabica beans. In June, Rosenfeld did the unthinkable: she
changed the shape of the Oreo, the first time the iconic cookie has
altered its circular shape in its 95 years of existence. To be sure,
it's for a limited time, and only in Canada, but the move highlights
Rosenfeld's penchant for risk taking when it comes to marketing.
Rosenfeld, who added the title of chairman to her resume in March,
returned to Kraft after a three-year stint as chairman and chief
executive of PepsiCo's Frito-Lay unit. Previously she had worked at
Kraft for 22 years, eventually becoming president of Kraft Foods North
America. Rosenfeld sits on the board of trustees at Cornell University
and participates in The Economic Club of Chicago.—Ryan Derousseau