World's Most Powerful Women

For the second year in a row, Angela Merkel, the first woman to become chancellor of Germany, ranks No. 1 on our list of the World's 100 Most Powerful Women. She continued to impress the world with her cool leadership at two back-to-back summits. First, she stuck to her principles, getting G-8 leaders to agree to significant cuts in carbon emissions, among other things. Merkel later corralled European Union countries into an agreement on a treaty to replace the E.U. constitution.

Meanwhile, China's vice premier, Wu Yi (No. 2), continues to help lead a government that oversees an economy whose gross domestic product may soon eclipse Germany's, making it the third-biggest economy in the world. Wu recently stared down U.S. Treasury Secretary Henry Paulson when he made myriad demands, including a revaluation of the yuan, in recent strategic economic talks with the U.S.

But China faces enormous challenges in improving its rickety social, legal and economic infrastructure, which now has to contend with an overheated stock market, unsafe and shoddy products and severe pollution.

Women are also making very visible advances in business. In the year since the ranking, Angela Braly (No. 16) took the helm of insurer WellPoint, providing health care coverage to one in 10 Americans;the world's largest money-transfer company, Western Union was spun off from First Data under the leadership of Christina Gold (No. 56); and PepsiCo Chief Executive Indra Nooyi (No. 5) added another title, that of chairman.

While there have been plenty of hand-wringing studies arguing that the corporate glass ceiling for women has turned into concrete, Forbes had no difficulty turning up 66 business executives worthy of inclusion on the list. The remaining 34 are mostly in government. Here is more to women in power.