Proximity and Population Size in Rural Prosperity: Insights from Slovakia

Municipal prosperity is central to regional development and well-being, particularly in geographically and socio-economically fragmented settings such as Slovakia. This study introduces a composite Municipal Prosperity Index (MPI), tailored to capture the multidimensional factors influencing prosperity at the local level. Drawing on theoretical frameworks and recent data from the 2021 Population and Housing Census, the research examines why some municipalities achieve sustained growth while others face stagnation or decline. The MPI integrates financial health, work, human capital, infrastructure, civic participation, and growth indicators to provide a holistic assessment. Through grouped analysis, municipalities are categorized by population size and proximity to regional centers, revealing significant disparities between suburban and isolated areas. The study highlights the effects of suburbanization, proximity, and governance on municipal success while addressing the unique challenges of rural areas. The findings offer actionable insights for policy-makers to foster balanced development and mitigate regional inequalities in Slovakia and other fragmented governance systems.