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1. National Spirits: Some major nations have national spirits that add +10% production for infantry equipment, submarine production, etc. National focuses have possibilities to help against that major power advantage--
1.a. It may help to expand the military focuses to give either/or bonuses that allow a smaller nation to focus on building one type of craft/plane vs. another: Bomber focus (+10% to bomber production) <or> Fighter Focus (+10% to fighter production). Large Fleet focus (+10% to screen ships) <or> Wolf Pack (+10% to Submarine production).
1.b. For countries where navies are impractical (landlocked) or making airplanes takes too much from basic manufacturing, an alternative using a new national spirit could help.
For example: Pick the normal AVIATION EFFORT <or> Air Evasion: Grants National Spirit 'Aerial Counter-Measures'[-10% enemy air support (ala Soviet's Ivan Konev), +10% production speed of radar and anti-air guns, +10% to production of anti-air division equipment] and radar and anti-air in 2 provinces.
Pick the normal NAVAL EFFORT <or> Port Alternatives: Grants National Spirit 'Land Route' [-5% Consumer Goods Factories, +10% production speed of Infrastructure, -5% Attrition, -5% Unit Supply Consumption]
1.c. National Spirits can also help bridge the gap in command staff. A lot of major powers have a variety of officers, and that's understandable given their military academies. But a minor power, if it made something it's official policy, could make the same effort as a talented officer. For example, at the end of the army focus branch, add command staff options: Army Speed Doctrine (+10% to Division Speed) <or> Army Logistical Supply (-5% attrition) <or> Army Morale Program (+8% Division Recovery)
1.d. Effort Branches: At the risk of over-complicating things (too late, right?) the Effort Branches
could be specialized with National Spirits.
Example: Motorization could branch: Motorization Effort (+10% Motorized Production) <or> Calvary Focus (+10% attack and Defense for Calvary Divisions).
Example: Tanks Could Branch off as well: Tank Focus (+5% reliability, +5% soft attack for tanks) <or> Tank Counter-Measures (+10% Hard Attack for Divisions)
2. Politics: The Political Effort branch could be beefed up. Under LIBERTY ETHOS The Neutrality branch could add + .10 Neutrality support, and a new Democracy Focus (+.10 daily support) could be added. Democracy and Neutrality could <or> off like Communism and Fascism does. This way, you can't just propagandize every minor nation until it's quagmired in civil war or a Comitern or Axis puppet.
3. Manpower: Adding some focuses that give a one-time splurge of manpower would REALLY help smaller nations (Volunteers: +50,000 manpower). Maybe National Spirits increasing monthly population growth by 1% (Refugees) and/or recruitable population by 1% (Public Housing) could help small countries. Other ideas include female regiments like from the National Character Mod (+25% to maximum recruitable population factor to a total of 125%), as well as a foreign legion, etc.
Thank you for your suggestions. I will try to add and balance them in the next update.