The US has suffered a significant loss of power and prestige around the world in the years since George W. Bush came to power, limiting its ability to influence international crises, an annual survey from a well regarded British security think-tank concluded on Tuesday.

The 2007 Strategic Survey of the non-partisan International Institute for Strategic Studies picked the decline of US authority as one of the most important security developments of the past year – but suggested the fading of American prestige began earlier, largely due to its failings in Iraq.