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Appendix II

UN habitat City Prosperity Index

In the Wheel of Prosperity as defined by UN Habitat, the "spokes" are the five dimensions of
prosperity: Productivity, Infrastructure development, Quality of life, Equity and social inclusion, and
Environmental sustainability.

Figure 1 – Wheel of Prosperity

In the City Prosperity Index each dimension has its own index and it might be built up by a number
of indices. The basic City Prosperity Index as reported in a publication consists of the following
sub‐indices and indicators:

Dimension Definition/variables

Productivity The productivity index is measured through the city product, which
is composed of the variables: capital investment, formal/informal
employment, inflation, trade, savings, export/import, and household
income/consumption. The city product represents the total output
of goods and services (value added) produced by a city´s population
during a specific year.
Quality of life The quality of life index is a combination of four sub‐indices:
education, health, safety/security and public space. The sub‐index
education includes literacy, primary, secondary and tertiary
enrolment. The sub‐index health includes life expectancy, under‐five
mortality rates, HIV/AIDS, morbidity and nutrition variables.

ITU‐T's Technical Reports and Specifications 791