The World’s Best Places to Live 2011

The world's biggest and most important cities aren’t often the best places in which to live. High levels of crime, traffic congestion, and long commutes can worsen the quality of life. So which are the best cities to live in the world?

We've put together a list of the world's 15 best cities, according to human resources consulting firm Mercer's 2011 quality of living survey. The annual report looks at living conditions in 221 cities worldwide and ranks them against New York as a base city in 10 categories such as economy, socio-cultural environment, politics, education, and the health sector.

This year the survey also identified cities with the highest personal safety rankings based on crime levels, law enforcement, international relations, and stability.

Cities in some of the world's biggest economies, including the US, Japan, and Britain, missed the cut. So, which cities made the list? Click ahead to find out.

15. Toronto, Canada
Population: 2.48 million

Toronto is one of only three Canadian and North American cities to make the list of the world's top 15 places with the best quality of life.

Canada’s largest city is the fifth most populous city in North America. The cosmopolitan hub, which consistently rates among the world’s most livable cities, has been a popular destination for immigrants over the past few decades. Half of Toronto's racially diverse population was born outside of Canada, compared with about 28 percent in global centers such as New York and London. About 30% of its residents speak a language other than Canada’s national languages, English, or French at home. The city is also Canada’s economic center, and home to the world’s seventh largest stock exchange by market capitalization. Its economy makes up almost a fifth of Canada’s gross domestic product (GDP).

Another key factor behind Toronto’s high ranking is the personal safety of its residents. Toronto is among five Canadian cities that dominate North America’s personal safety ranking. Tied with Vancouver, Montreal, Ottawa, and Calgary, Toronto is considered the 17th safest place in the world, more than 35 times safer than its closest American counterparts Chicago, Honolulu, Houston and San Francisco, according to the Mercer report.

14. Ottawa, Canada
Population: 812,129

Ottawa is the capital city of Canada and one of six capital cities to make the list. Home to Canada’s federal agencies and foreign embassies, the city has the most highly educated workforce per capita in the country. Ottawa is also home to technology giants such as Nortel Networks, Cisco Systems, Alcatel Lucent, and Dell, with more than 90% of Canada's telecommunications research and development conducted there.

A high quality of life is often associated with a high cost of living in most cities on our list, but Ottawa defies that trend, being crowned the least expensive Canadian city to live in this year. Living in Ottawa is almost 55 times less expensive than living in Toronto — Canada’s costliest city, based on factors such as housing, transport, food, and clothing. It is also considered one of the cleanest in the world, coming in third in last year’s eco-city ranking, which measured factors such as water drinkability, sewage systems, air pollution, and waste removal.

13. Wellington, New Zealand
Population: 197,700

Wellington is one of only three cities in the Asia-Pacific region to make the 2011 list.

The city is the world's southernmost capital and has the most educated population in the country, with more than one-third of its residents holding a bachelor’s degree or higher. Incomes in Wellington are above average for New Zealand. More than 40 percent of households have annual incomes of more than $66,000. The city also has a great climate, with 2,000 hours of sunshine every year, compared to an average of 1,500 hours in global centers such as London and 1,850 hours in Vancouver.

Despite high living standards for New Zealand’s cities, the country reported its first annual loss of migration in 10 years. For the year to Oct. 31, 100 permanent residents left the country, compared to a gain of 12,610 migrants for the same period dast year. Neighboring Australia’s booming economy, with higher wages and lower unemployment, has been a big draw for New Zealanders.

12. Amsterdam, The Netherlands
Population: 756,347

Amsterdam is one of the most visited cities on our list, renowned for its red light district and marijuana serving coffee shops.

Coming to world prominence through trade during the Dutch Golden Age in the 17th century, the city has maintained a high quality of living as the cultural and financial center of the Netherlands. It’s home to the world’s oldest stock exchange and its historic canals, buildings, and infrastructure are a big draw for tourists. The city promotes varying lifestyles and about 54 percent of its households are single people. Households with two adults make up only 20 percent of the population, according to government statistics from 2009. The city also ranks among the top 20 in the world when it comes to personal safety.

Once regarded among the more generous European countries in welcoming immigrants, the Netherlands reputation has changed over the past decade. The anti-Islam, anti-immigration Freedom Party is a key ally for the ruling coalition in Parliament and has used its influence to push for tougher immigration policies. In September, the government announced plans to ban face-covering veils worn by some Muslim women because lawmakers argued that it flouts the Dutch way of life.

11. Sydney, Australia
Population: 177,000

Sydney is Australia’s biggest city by population and the economic hub of the country. It accounts for about one quarter of Australia’s GDP.

The city is home to some of Australia’s most iconic landmarks, including the Opera House and Harbour Bridge. Its metropolitan area is set in one of the world’s most stunning harbors and is surrounded by national parks, bays, rivers, and beaches. As a major business hub, Sydney is headquarters to almost 40 percent of the top 500 Australian firms, as well as the location of 20 percent of the country’s finance sector, and 44 percent of its broadcasting industry. The median average annual income for residents is more than $55,000, with nearly one-fifth of its workforce making more than $2,000 a week.

In comparison to the rest of the Asia-Pacific region, both Australia and New Zealand far outweigh their counterparts in living standards and personal safety because of their continuous investment in infrastructure and public services. Many Asian cities rank at the bottom of the survey due to social instability, political turmoil, and natural disasters such as typhoons and tsunamis, according to the study. Only three Asian cities — Singapore at number 25, Tokyo at 46, and Kobe, Japan at 49 — make the top 50 places in the quality of life survey.

9. Copenhagen, Denmark (tied)
Population: 548,443

Copenhagen has made Mercer’s list of top 15 cities for the past five years. The city’s staying power highlights Europe’s dominance in the quality of life survey. In fact, as many as eight of the top 10 cities in the world are in Europe. These cities continue to have high living standards because of their advanced infrastructure, and high-class medical, recreational, and leisure facilities.

Copenhagen was also the second highest ranked European city among the world’s most eco-friendly places in 2010. Known as the city of cyclists, it has a total 218 miles of cycle tracks, with about 36 percent of its population commuting by bicycle every day.

Health and well-being have become a big part of Danish lives, with more than 15 percent of its population over the age of 65. Increased health awareness has translated into Denmark becoming one of the leading consumers and producers of organic food in Europe. About 75 percent of food consumed in Copenhagen is organic, with organic food bought in every one of 10 purchases.

9. Bern, Switzerland
Population: 130,000

Bern is the capital of Switzerland and one of three Swiss cities to make the top 10. The city has consistently held on to the number nine spot in the quality of life survey for the past four years.

Located in the Swiss plateau, the center of the city known as the old town of Bern, became a UNESCO World Heritage Site in 1983. Bern has been able to maintain its medieval charm over the centuries and has retained most of its historic features, including arcades, fountains, sandstone facades, towers, and narrow streets. Often ranked among the most expensive cities in the world, Bern is the center of Swiss engineering and manufacturing with medical, information technology, automotive, and luxury retail products such as watches made there.

This year, Bern is ranked as the second safest city in the world, after Luxembourg. Switzerland’s neutrality, and reputation as the traditional banking safe haven for the world’s wealthy — has made it an attractive place for relocation. However, growing immigration has become a cause of concern for the locals. The right-wing Swiss People’s Party wants to limit the number of immigrants entering the country, and the movement has seen a rise in popularity this year after tapping into growing fears that immigration could hurt the Alpine country’s high standard of life. Foreigners make up 22 percent of the country’s 7.9 million people and have been blamed for rising rents, crowded public transportation, and higher electricity bills.

Click HERE to see the rest of the world’s best cities to live in from CNBC.com.