1.dont worry about it - as long as you have a good number of cities with high production you will be fine.The major factor is having access to resources not the size of territory you control.
2.Build a lot of defenders - otherwise you will get attacked.
3.Trade..trade..trade...trade - trade - trading luxuries for techs is easier than researching them yourself.
Good production is the key to winning, and of course you need the resources so you can build the right units. I typically keep a small defensive military in the first era, hoping someone will attack me, then use my production base to build the military up to whatever size is needed to win the war. This strategy allows me to build up more and better cities while other civs are building units.
Having the smallest number of cities is not such a good strategy, so I try to stay close to the leader in numbers of cities. Having lots of cities gives you more flexibility and you can fight a "business as usual" war, allocating some cities to the military effort and others to infrastructure and wonders.
Being behind in tech is the worst way to be, because you often need more military units to overcome your opponent's tactical superiority. And if your military is smaller and you're behind in tech, the best strategy is to concede to the AI demands. Example: I can defeat 50 Immortals with 12 Knights, but I can't defeat 50 Knights with 12 Immortals.
Smallest by territory isn't much to worry about, and smallest by military size is simply solved by building more units. What really sucks in this respect is to be smallest by production. Deft diplomacy and swift industrialization are about your hopes in that case.
Being behind in tech is pretty standard on the higher difficulty levels, at least in the earlier parts of the game. The thing is, as said above, to trade, trade, trade. Building the Great Library also helps a bit.
Maximize your trades! For example, if you don't have saltpeter, when you trade for it, upgrade all of your units and go full production of units that require it during the 20 turn trade. Then you aren't as dependent on continuing the trade.
If you have to trade for coal...build the workers first, then go all out on railroads and focus production on buildings that need it during the turn. Focus railroad building first on building a network and then on the tiles that are most valuable.
The key to being small is getting the most for what you have.
Also...you probably want to buy instead of researching most techs. Focus on the techs that you know the AI waits for an won't beat you too (mostly its the non-required techs). When you are small, there is nothing worse than spending your income on a tech only to be beat to it...then there is no real upside for your efforts.
Yzman,its a more complicated subject than you think
I do agree with Allemands strategy and I do think that being the least technologically advanced is the worse of the three.You'll need a very large military and a god plan to win a war with an outdated army.
As a smaller, less productive nation you don't stand a good chance of going toe-to-toe with another civ in a territorial war. But you can jump in on an existing war between two AI civs to pick up a couple cities here and there. As has been pointed out, you need a good defensive army to keep from being attacked yourself. With only a few additional offensive units/ artillery, you should be able to pick off a weak city from a civ that has already been pounded by war. The attacking AI just isn't as good as a player at securing a city with a mass of troops. Wait for a break in an attacking civ's assault, swoop in and surround the city, and take it at your leisure. The attacking civ will just move on and keep the rest of the other AI civ occupied.
As a side bonus to this technique, you may get techs from one AI for the alliance or from the other for a peace treaty. The danger, of course, is being dragged into a longer or expanding war, so grab a city or two and get out.
As a small civ, this means your outermost cities are more productive and closer to your capital than an AI border city. You can win a culture war by plopping down a city close to an AI city. His civ may have more total culture, but you make up for that with the closeness of your capital. Culture rush to grab some of the other city's production squares, and hope it flips your way.
Adding only a couple good cities when you're a small civ (well under your optimum city number) will make a big difference.
Use trade also to make alliances. Preferrably against Civ's that you can defend against with some ease (another civ in between, with no chance of ROP with your target Civ) or with a natural border of mountains or a strip of land (like latin america). Guard this border with fortresses.
Then: DOW the target civ, your buddy does the dirty work and you get to pick the prizes. With a little luck and some blood and sweat of your own of course..
Build a defence. small attacking army. Switch to no science. Steal or trade techs for gold to get back into the fray, you may not catch up, but at least you won't fall further behind. Now, attack the next smallest civ . Use allies if you have to, but make sure they don't get any on their side.
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