Chapter V. Unit1
Chapter V. Unit1
Chapter V. Unit1
Unit 1
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Chapter V. Unit 1
Objectives
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1. To Identify the attributes of a global city
2. To analyze how cities serve as engines of globalization
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From her arguments about the modern global city, she stressed seven
hypotheses:
1 The geographic dispersal of economic activities that marks globalization, along
with the simultaneous integration of such geographically dispersed activities, is a
key factor feeding the growth and importance of central corporate functions.
2 These central functions become so complex that increasingly the headquarters of
large global firms outsource them: they buy a share of their central functions
from highly specialized service firms.
3 Those specialized service firms engaged in the most complex and globalized
markets are subject to agglomeration economies.
4 The more headquarters outsource their most complex, unstandardized functions,
particularly those subject to uncertain and changing markets, the freer they are to
opt for any location.
5 These specialized service firms need to provide a global service which has meant
a global network of affiliates ... and a strengthening of cross border city-to-city
transactions and networks.
6 The economic fortunes of these cities become increasingly disconnected from
their broader hinterlands or even their national economies.
7 One result of the dynamics described in hypothesis six, is the growing
informalization of a range of economic activities which find their effective
demand in these cities, yet have profit rates that do not allow them to compete
for various resources with the high-profit making firms at the top of the system
Little, 2013).
From these hypotheses, Little citing Sassen pointed three key tendencies that
seem to follow:
From these tendencies, modern global cities are gradually becoming known for
these features:
1. a widening separation in quality of life between a relatively small elite and a much
larger marginalized population;
2. a growth of high-security gated communities and shopping areas; and
From these features, Sassen identified three global cities based on primarily
economic criteria. These cities are New York, London and Tokyo. Global cities,
according to Sassen, are the ‘com- mand centres’, the main nodes of triumphant global
capitalism (’(Colic-Peisker, 2014).
However, decades after Sassen launched the concept of global city, more and
more cities worldwide are moving to attain the status as global cities. Contemporary
global cities are becomingly known for these transformative features:
From these contemporary features, Colic-Peisker pointed out that the list of
global cities expanded in the twenty first century. Following the criteria set by the
Japanese Mori Foundation for the determination of global cities is the declaration of the
following as global cities:
1. New York
2. London
3. Paris
4. Tokyo
5. Singapore
The criteria set by the Japanese Mori Foundation’s Global Power City Index are as
follow:
1. economy,
2. research and development,
3. cultural interaction, liveability,
4. environment and
5. accessibility
The modern global city’s ability to attract the creative and innovative minds led
to the influx of professional migrants. If a city possesses this ability then it deserves the
status of a global city. This ‘magnetic character’ (as called by the Japanese Mori
Foundation) of global cities entails the hyper-mobility of young professionals whose
services are always in-demand in major cities worldwide. As a consequence of their
hyper-mobility, life in the global city is always fluid. As a consequence of the fluid
lifestyle and needs of these knowledge workers the services of the low-paid workers
coming from the outskirts of the region are also needed. Thus, the influx of
professionals in the commercial centres brought with it the concomitant increase of
‘low-paid workers who deliver personal and labour-intensive services: cleaning, child-
care, delivery, res- taurants and eateries, catering, maintenance, transport, hotels,
domestic help and retail’ (Sassen, 1991; Zukin, 1998; Colic-Peisker, 2010).
This pattern of migration in the global city gave birth to economic and social
polarization and gentrification. According to Sassen (1991), global cities are
characterized by occupational and income polarization, with the highly paid profes-
sional class on the one end and providers of low-paid services on the other (Colic-
Peisker, 2010) . Related to the idea of polarization is the concept of gentrification which
Housing
• Have expensive real estate because in a • The opposite happens with less attractive
highly developed and sensitive housing and less liveable outer areas with fewer job
mar- ket (a ‘thick’, dynamic housing market opportunities and services (Wood, 2004)
with much supply and demand) the
attractive features and advantages of an
urban area end up being readily capitalized
into higher property prices.
Workforce
Within this colourful urban diversity also reside different types of marginalities
based on gender, ethnicity, culture and class: single mothers, lesbians, recent immigrant
and refugee groups, backpackers, the homeless, the elderly, all those who indeed cannot
be so readily integrated into the dominant economic paradigm. Their social purpose is
therefore in the realm of community – usually rather marginal and mutually segregated
communities sharing geographical places but not lifestyles and life-worlds. One of the
flipsides of this is that coexistence of various disparate groups does not constitute a
wider city community, and fragmentation born out of diversity rarely leads to active
citizenship. Consumption, style, work and commercialized leisure take priority over
public and civic concerns as long as the urban space is functional for a majority of its
residents. Because of this disparity, the character of a nurturing character of a
community gradually disappears. As observe by Bauman in Britain and America,
‘community’ … sounds increasingly hollow because inter-human bonds that require a
‘large and continuous investment of time and effort’, and are worth the sacrifice of
immediate individual interest, are increasingly frail and temporary.
Thus Colic-Peisker (2010) emphasized that the shifting and ‘liquid’ life in the
global city leaves little firm ground for anyone to lodge an anchor. Hypermobility of
competitive cosmopolitans does not allow much room for community life (Colic-
Peisker, 2010). Dwellers of the global city, regardless of the population density, are likely
to be spatially and emotionally detached from their neighbours and co-locals, and
devoted to their professional pursuits, that usually require them to be highly connected
and ‘networked’ in an instrumental way, these days increasingly through the Internet.
Bauman diagnosed a ‘disintegration of locally grounded, shared community
living’ (Bauman, 2005: 78) and argued that community has been largely replaced by
‘network: a matrix of random connections and disconnecions’.
REFERENCES:
Sassen, Saskia.( 2005). “The Global City: Introducing a Concept.” Brown Journal of
World Affairs XI(2): 27-43.
LEARNING ACTIVITY
Activity:
ASSESSMENT
QUIZ