Prosperity Index

To calculate a country's Prosperity Index, GlobalHub consider multiple key dimensions that cover aspects of economic performance, social well-being, governance, and environmental sustainability. Here are some primary dimensions and key indicators within each that are commonly used in prosperity calculations:

1. Economic Quality

1. GDP per Capita: Reflects average income per person, adjusted for purchasing power.
2. GDP Growth Rate: Annual percentage increase in economic output, indicating growth sustainability.
3. Trade Balance: Difference between exports and imports; a positive balance suggests economic strength.
4. Unemployment Rates: Measures the percentage of the labor force without work but seeking employment.
5. Foreign Direct Investment (FDI): Indicates foreign capital inflows, showing investor confidence and economic potential.
6. Inflation Rate: Assesses price stability; moderate inflation can signify a growing economy, whereas high inflation may indicate economic instability.

2. Business Environment

1. Ease of Doing Business Index: Ranks the regulatory ease of starting and operating a business, including factors like licensing and property rights.
2. Innovation Capacity: Tracks research and development spending, patent filings, and support for new technologies.
3. Market Competitiveness: Measures the level of competition, monopolistic practices, and market efficiency.
4. Infrastructure Quality: Evaluates transportation, logistics, energy, and digital infrastructure, which support economic activities.
5. Regulatory Framework: Assesses business-related regulations, bureaucracy, tax policies, and labor laws.

3. Health

1. Life Expectancy: Average lifespan in years; a high life expectancy reflects good healthcare and living standards.
2. Mortality Rates: Includes infant, child, and maternal mortality rates, indicating health care effectiveness.
3. Healthcare Quality & Accessibility: Assesses the availability and quality of healthcare facilities, staff, and essential medicines.
4. Health Expenditure per Capita: Measures healthcare spending per individual, reflecting resource allocation.
5. Communicable Disease Control: Tracks efforts to combat diseases such as HIV, tuberculosis, and malaria.

4. Education

1. Literacy Rate: Proportion of the population that can read and write; a fundamental measure of education.
2. School Enrollment Rates: Measures enrollment in primary, secondary, and tertiary education, showing educational access.
3. Graduation Rates: Reflects the percentage of students completing secondary and tertiary education.
4. Access to Quality Education: Considers factors like student-teacher ratios, classroom quality, and learning materials.
5. Skill Development Programs: Tracks access to vocational training and adult education, essential for workforce readiness.

5. Living Standards

1. Income Inequality (Gini Index): Shows wealth distribution among citizens; lower inequality indicates better social stability.
2. Poverty Rate: Proportion of the population living below the poverty line; critical for assessing basic living standards.
3. Access to Basic Services: Availability of clean water, sanitation, electricity, and internet connectivity.
4. Housing Quality: Measures housing availability, affordability, and conditions, including access to clean water and sanitation.
5. Cost of Living Adjustments: Reflects the cost of essential goods and services relative to income.

6. Governance

1. Political Stability: Assesses risks of political upheaval, violence, or internal conflict.
2. Government Effectiveness: Reflects the quality of public services, policy formulation, and government accountability.
3. Rule of Law: Measures the strength of legal frameworks, including property rights and contract enforcement.
4. Corruption Perception Index: Assesses perceived corruption in government and public institutions.
5. Civil Liberties and Rights: Evaluates freedom of speech, assembly, and other rights upheld by the government.

7. Personal Freedom

1. Civil Liberties: Freedom of expression, religion, and assembly, providing a basis for personal freedoms.
2. Freedom of Movement: Ability to travel freely domestically and internationally without excessive restrictions.
3. Property Rights: Legal protections ensuring the ability to own, transfer, and sell property.
4. Gender Equality: Measures gender parity in education, employment, and political representation.
5. Minority Rights: Protections and equal opportunities for ethnic, religious, and other minority groups.

8. Social Capital

1. Trust in Institutions: Confidence in government, police, and other social systems, often measured by public opinion surveys.
2. Community Engagement: Rates of volunteering, charitable giving, and community involvement, reflecting social cohesion.
3. Strength of Family and Social Networks: Measures the support provided by family and social connections.
4. Civic Participation: Engagement in activities like voting and attending town meetings, signifying public involvement.
5. Social Trust and Safety Nets: Confidence in social safety programs and overall trust within the community.

9. Environment and Sustainability

1. Environmental Quality: Tracks air quality, water cleanliness, and pollution levels, which impact health and well-being.
2. Renewable Energy Use: Proportion of energy sourced from renewables like wind, solar, and hydro.
3. Deforestation and Land Use: Measures changes in forest cover, land preservation, and use of agricultural land.
4. Biodiversity Protection: Evaluates efforts to protect wildlife and ecosystems, including national parks and reserves.
5. Climate Change Resilience: Assesses preparedness for natural disasters, climate adaptability, and sustainable resource use.

10. Safety and Security

1. Crime Rates: Incidence of violent crimes (e.g., homicides, assaults) and property crimes, impacting citizen safety.
2. Terrorism Impact and Threat Level: Assesses the frequency and severity of terrorist incidents.
3. Road Safety: Includes road traffic deaths and accidents, reflecting transportation safety.
4. Personal Safety Index: A composite measure of general safety, including surveys on residents' sense of safety.
5. Disaster Preparedness and Response: Evaluates systems and policies in place to respond to natural and man-made disasters.

Each dimension can be weighted depending on its importance relative to the context of the country and purpose of the index.