GLOBAL CITY

GLOBALITY is the end-state of Globalization

>A hypothetical condition in which the process Of globalization is complete or nearly so, barriers have fallen, and “a
new global reality” is emmerging.
>The term was used in 1998 by author and economist Daniel Yergin in a Newsweek article that described the edn-state
of the globalization process, and in his book Commanding Heights: The Battle for the World Economy.
>William Safire traces the etimilogy of “globality” in his book No Uncertain Terms and Identities a range of citations as
far back as 1942, when it was used as a synonym for “global”.
>Current use of “globality” as it applies to business- as a description of a current competitive state of world commerce-
was not adopted until recently.
>The term has been described by William J. Hoistein in the New York Times as “a new buzzword [that] doesn’t work-it
merely describes trends that have been under way for at least two decades under a very similar names.”
GLOBALITY vs GLOBALISM
GLOBALISM
-A national policy of treating the whole world as a proper sphere of political influence. Compare with: Imperialism and
Internationalism
What are GLOBAL CITIES
Defining the Global City
>New global cities have since arisen not only as financial centers but also a producers of services that are global in scope.
>Global cities are post-industrial.
-Manufacturing has been all scattered across national and global networks.
-Turn from “ landscapes of production” to “landscape of consumption”
>Global cities are “brain hubs” and centers of a “knowledge economy”
>Economies of social scale and concentration are necessary despite the proliferation of communications technology.
>Network economies and spillover effects include “thick labor markets” in knowledge workers.
>Polarization extends to differentiation by human capital (skills and formal education).
Global City
>Sociologist Saskia Sassen popularized this term.
>Her The Global City: New York, London, Tokyo (1990) has shaped the concepts and methods used to analyze the role
of cities and their networks in the contemporary world.
>Sassen’s concept of Global City gives emphasis on the flow of information and capital.
>Global cities are major modes in the interconnected systems of information and money, and the wealth that they
capture is intimately related to the specialized businesses that facilitate those flows.
>Making sense of urban systems and their global networks.
>In the age of globalization, the activities of production are scattered on a global basis.
>These complex, globalized production networks require new forms of financial and producer services to manage them.
WHY STUDY GLOBAL CITIES?
Globalization as Spatial Phenomenon
Spatial as it occurs in physical spaces.
-Foreign investments and capital move through a city.
-Companies build skyscrapers.
Globalization as Spatial Phenomenon
Globalization is spatial because what makes it move is the fact that it is based in places, in other words, cities act on
globalization and globalization acts on cities:
1. Los Angeles, home of Hollywood, is where movies are made for global consumption
2. Tokyo, headquarters of Sony, the company coordinates the sale of its various electronic goods to branches
around the globe.

Attributes of Global City

1. STATE OF ECONOMIC POWER
>New York have the largest stock market in the world.
>Tokyo houses the most number of corporate headquarters.
>Shanghai plays critical role in the global economic supply.
 2.CENTERS OF AUTHORITY
>Washington DC, not wealthy as New York, but it’s the seat if American Power.
>Canberra is Australia’s political capital: home to country’s politician and bureaucrats.
3. CENTERS OF POLITICAL INFLUENCE
Cities that house major International Organizations: UN-New York, EU-Brussels.
4. CENTERS OF HIGHER LEARNING AND CULTURE

The question then becomes how to identify these cities, and perhaps to determine to what extent they function as
global cities specifically, beyond all of the other things that they do simply as cities.

1. AT KEARNEY’S list, developed in conjunction with the Chicago Council on Global Affairs. Global Cities Index uses
criteria across five dimensions:
A. Business Activity
(headquarters, services firms, capital markets value, number of international conferences, value of goods through ports
and airports.
B. Human Capital
(size of foreign born population, quality of universities, number of international schools, international student
population, number of students with college degrees).
C. Information Exchange (accessibility of major TV news channels, Internet presence (basically number of search
hits), number of international news bureaus, censorship, and broadband subscriber rate).
D. Cultural Experience
(number of sporting event, museums, performing arts venues, culinary establishments, international visitors, and sister
city relationships).
E. Political Engagement
(number of embassies and consulates, think tanks, international organizations, political conferences).

2. The INSTITUTE FOR URBAN STRATEGIES at The Mori Memorial Foundation in Tokyo published another study called
“The Global Power City Index 2011.” this report examines cities in terms of functions demanded by several “actor”
types: Manager, Researcher, Artist, Visitor, and Resident.
The Functional Areas were:
1. Economy
(Market Attractiveness, Economic Vitality, Business Environment, Regulations and Risk)
2. Research and Development
(Research Background, Readiness for Accepting and Supporting Researchers, Research Achievement)
3. Cultural Interaction
(Trendsetting Potential, Accommodation Environment, Resources of Attracting Visitors, Dinning and Shopping, Volume
of Interaction)
4. Livability
(Working Environment, Cost of Living, Security and Safety, Life Support Functions)
5. Environment
(Ecology, Pollution, Natural Environment)
6. Accessibility
(International Transportation Infrastructure, Inner City Transportation Infrastructure)

Global Power City top 10 (2016)

London
New York City
Tokyo
Paris
Singapore
Seoul
Amsterdam
Berlin
Hongkong
Sydney

3. Another popular ranking is the ECONOMIST INTELLIGENCE UNIT’S GLOBAL CITY COMPETITIVENESS INDEX. They rank
cities on a number of domains:
A. Economic strength
(Nominal GDP, per capita GDP, % of households with economic consumption >14,000/year, real GDP growth rate,
regional market integration)
 B. Human capital
(population growth, working age population, entrepreneurship and risk taking mindset, quality of education, quality of
healthcare, hiring of foreign nationals)
C. Institutional Effectiveness
(electoral process and pluralism, local government fiscal autonomy, taxation, rule of law, government effectiveness)
D. Financial Maturity
(breadth and depth of financial cluster)
E. Global Appeal
(Fortune 500 companies, frequency of international flights, international conferences and conventions,
leadership in higher education, renowned think tanks)
F. Physical Capital
(physical infrastructure quality, public transport quality, telecom quality)
G. Environment and Natural Hazards
(risk of natural disaster, environment governance)
H. Social and Cultural Character
(freedom of expression and human rights, openness and diversity, crime, cultural vibrancy)

4. Jon Beaverstock, Richard G. Smith and Peter J. Taylor established the GLOBALIZATION AND WORLD CITIES
RESEARCH NETWORKS (GaWC). A roster of world cities in the GaWC Research Bulletin 5 is ranked by their connectivity
through four “advanced producer services”: accountancy, advertising, banking/finance, and law.
Alpha world cities (with four sub-categories)
 alpha ++, alpha +, alpha, alpha –
Beta world cities (three sub-categories)
 beta +, beta, beta –
Gamma world cities (three sub-categories) and additional cities with High sufficiency or Sufficiency presence.
 gamma +, gamma, gamma -

CHALLENGES OF GLOBAL CITY

GLOBAL CITIES CAN BE SITES OF GREAT INEQUALITY AND POVERTY
>New York and Tokyo can be sustainable because of their density: denser settlements yield energy savings; extensive
public transportation systems enable people to dive less cutting carbon emission.
>Los Angeles meanwhile are urban sprawls, with massive freeways that force residents to spend money on cars and gas.
>Manila, Bangkok, and Mumbai are dense, their lack of public transportation and the government’s inability to regulate
car industries have made them extremely polluted.

TREMEDOUS VIOLENCE CAUSE BY TERROR ATTACKS

>9/11 attack in New York in 2001.
>Attacks by Zealots of the Islamic State of Iraq and Levant in Paris.

THE GLOBAL CITY AND THE POOR

MASSIVE INEQUALITY SITED IN SOME MAJOR CITIES
-Cities like Mumbai, Manila, Jakarta have gleaming building alongside massive shanty towns.

GENTRIFICATION is a phenomenon of driving out the poor in favor of newer, wealthier residents.
-African American and immigrants in New York and San Francisco are being forced to move farther away from the
economic centers of their cities.
BANLIEUE
-A cluster of ethnic enclaves which includes poor Muslim migrants forced to be out of Paris.

CONCLUSION
>Global cities are material representation of Globalization.
>They are places that create the exciting fusion of culture and ideas which also generate tremendous wealth.

>Yet, they remain sites of great inequality, where global servants serve global entrepreneurs.
>The question of how globalization can be made more just is partly a question of how people make their cities more
just.
 Global Demography
Population Growth and the Demographic Translation

Learning Objectives
1. To view population growth from a Malthusian perspective
2. To calculate crude death rates, birth rates, rates of natural increase, and population doubling times.
3. To comprehend the concept of the Demographic Transition
4. Explain the theory of demographic transition as it affects global population

Demography
 With epidemiology, it shares the Greek root demos (people) and the same founder, 17th century Englishman,
John Graunt
 Is the scientific study of the determinants and consequences of human population trends

By the beginning of the 21st century, world population reached 6 billion. Most of the growth has occurred in the past 200
years. GRAPH

The unprecedented population growth of modern times heightens interest in the notion of doubling time. Calculation of
population doubling time is facilitated by the Law of 70.

Law of 70
 If a population is growing at a constant rate of 1% per year, it can be expected to double approximately every 70
years –if the rate of growth is 2% then the expected doubling time is 70/2 or 35 years.

T. R. Malthus, 1766-1834
 English clergyman, Thomas Robert Malthus, was the first person to draw widespread attention to the two
components of natural increase, births and deaths (fertility and morality).
 In his Essay on the Principle of Population, initially published in 1798, Malthus postulated that population
tended to grow geometrically while the means of subsistence (food) grew only arithmetically.
The Malthusian Trap
Arithmetic growth (food): 1,2,3,4,5,6,7,8,9,10…
Geometric growth (population): 1,2,4,8,16,32,64,128,256,512…
 Malthus argued that the difference between geometric and arithmetic growth caused a tension between the
growth of population and that of the means of subsistence. – this gap could not persist indefinitely.

Owing to war, disease, hunger, and vice, mortality would serve as a positive check on population growth.

Solution to the Malthusian Trap

Preventive checks: birth control through

1. Later age at marriage.

2. Abstinence from sex outside marriage. (Malthus opposed artificial methods of birth control on moral grounds.
Viewed contraception as a vice)

Population Explosion
Contrary to Malthus’s prediction, mortality has not yet risen to curb world population growth.

<1 billion people in 1800

6 billion by the end of the 20th century

Why was Malthus unable to foresee the population explosion (also known as the population bomb)?

He did not recognize the force of the Industrial Revolution, which produces exponential growth in the means of
subsistence.

The Demographic Transition

During the first half of the 20th century, demographers conceived the notion of the demographic transition.
The demographic transition framework illustrates population growth in terms of discrepancies and changes in two crude
vital rates – mortality and fertility (ignores migration)

Crude Vital Rates

Crude Death Rate (CDR)

#deaths in calendar year *k

mid-year population

Crude Birth Rate (CBR)

#deaths in calendar year *k

mid-year population

Rate of Natural Increase= CBR-CDR GRAPH

Demographic Dividend (Video)

“demographic dividend” refers to the accelerated economic growth that a country can achieve when it has a low
dependency ratio or, in other words, when the proportion of its population that is of working age is greater than the
proportion of its population that doesn’t work (e.g. children and the elderly).

Effects of Population Growth: Does it affect Economic Growth?

1. Pessimistic Approach
2. Optimistic
PESSEMIST- Thomas Mathus (Malthus’ Basic Theory, Population Trap)

What is the Malthussian (Trap) theory of Population

 Known for his work on population growth, Thomas Robert Malthus argued that, left unchecked, a population will
outgrow its resources. He discussed two ways to ‘check’ a population: preventive checks, like the moral restraint
of postponing marriage, or positive checks, like famine, disease and warfare.
OPTIMIST- Julian Simon

The demographic dividend Explained in 4 parts

Phase A: Preliminary Steps

 Country enters Stage 2 of Demographic Transition

 Results in large increase of children
 Dependency ratio increases
 Little to no change in elderly population life expectancy

Phase B: Window of Opportunity Opens

Mechanics of situation

 Country enters Stage 3 of Demo. Trans.

 Children decline as proportion of population (see diagram)
 Dependency Ratio declines
 Little to no change in elderly proportions

Worker bulge appears (see diagram)

Wise Country follows pro- development policies

 Moves to create Employment opportunities

 Pursues international export strategy

Phase C: Dividend Period

 For about a generation the country rapidly grows and prospers

 Workers support fewer dependents and tend to invest their growing surplus
 Country’s policies insure ample employment, investment opportunities, and greater consumption

Phase D: Windows closes- but country developed

 After a generation workers age and begin to retire

 Stage 4 of Demographic transition entered
 Dependency ratio climbs based mainly on elderly (see diagram)
  As Dividend ends
 Growth of economy slows but continues

China: End of Demographic Dividend

What drives China’s Growth?

 Reform and Restructuring

 Urbanization and Industrialization
 Demography Dividend and Education
 Savings and Capital Formation
 Globalization

Reform and Restructuring

From Communist to Socialist with Chinese Characteristics
From Central Planning to Market Driven Economy
From Closed- Door policy to Open-Door Policy
From Dictatorship to “Centralized Democratic” Decision Making Privatization

*Centralized Democracy

Urbanization and Industrialization

Urbanization – 1.5 million per months
Industrialization – Raise productivity – Monetize economic activities

Demography Dividend and Education

“Scissors” crisis of aging

Savings and Capital Formation

Saving is Virtue!

Globalization

GOD
BLESS