In game there should be three basic parameters of the country (they were, but others):
1. Military power - this parameter is unlimited. It works by a principle "take away and not give to another ". Military power is got only after a victory over war. Also lower after defeat or after voluntary declaration of independence (in this case falls less twice). During this moment the new independent country receives a level of military power how many it the country given independence has lost. That is, something turns out like " the law of conservation of military power ", as in physics

. This parameter does not go down because of other reasons. Each province has the factor determining a part of military power of the country.
2. Reputation (bad boy). The lowest number is the aggressor. The highest is the ideal of democracy. At declaration of war to the aggressor your reputation does not lower (or raises a little). And at declaration of war to " the ideal of democracy " to the country, your reputation (BB) lower very much.
For example:
Reputation of the declared country-------------declarer's change of reputation
Kind.......100...............................................................-75
............75.................................................................-50
Average 50.................................................................-25
............25...................................................................0
Malicious 0..................................................................+25
3. World authority = Military power + reputation (Bad Boy). The world authority is a parameter of the country which defines how you will be perceived by other states. Something like prestige in EU.
PS: These are my unrealizable imaginations. I know, that such will not be in V2.