World Cities

Syllabus Headings:
The nature, character and spatial distribution of world cities The role of world cities as powerful centres of economic and cultural authority The operation of global networks The relationships of dominance and dependence between world cities and other urban centres and the changing role of regional centres and the demise of the small town.

World cities World cities are large urbanised areas that are defined by dense patterns of interaction at a global, multinational and national scale and are the control or command centres in the network of cities around the world Globalisation the breakdown of the barriers between countries and the development of stronger links between countries Spatial articulation the space over which the city has a clear and distinct influence, such as global and multinational Nodal point a central connecting point Urban system a network of interrelated urban places 50% of the worlds population lives in towns and cities The pattern of world cities is closely associated with economic globalisation. In the increasingly global economy, corporate structures and the flows of capital transcend national boundaries, and decisions about what happens in one part of the world are made thousands of kilometres away. World cities are the places where the worlds most important financial and corporate institutions are located and where decisions that drive the economy are made.

Globalisation
Dynamics

Dominance

Dependance

Outcomes

WORLD CITY

MEGA CITY

The impacts of globalisation are not evenly distributed. Developed cities are more commonly world cities and developing cities are more commonly mega cities. The gap between the mega-cities of the developing world and the world cities economies is widening

The nature, character and spatial distribution of world cities

Nature of World Cities
3 dominant world cities = London, NY, Tokyo World cities are both a product of and cause of economic and cultural globalisation

Large spheres of influence and control More important at the global scale than nationally Interconnected to other world cities The command and control centres in the global economy Nodal point in the global network Reasons for this rapid growth in globalisation include: o A reduction in trade barriers between nations, which has been brought about by huge reductions in tariff protection the WTO o Technological advances o Rapid growth in the number, size and significance of TNCs. The acceleration in globalisation has brought other significant changes such as:o A decisive shift in the proportion of the worlds economic activity which is transnational in its scope o A shift in the nature and organisation of transnational trade in raw materials and manufactured goods being overtaken by the flows of goods, capital and information, much of this within and between TNCs. o Massive technological changes o Development and articulation of new world views and cultural sensibilities particularly in relation to global social concerns and ecological concerns about global resources and the environment By the beginning of the 21st century global links had intensified and the world had developed as one place for those people tied into the global systems of production and exchange and global networks of communications and knowledge. This globalisation has brought a profound change, for people in developed nations and a growing number of people in the developing world, such as: o The way people produce and consume o The significance of time as the global economy and social systems operate almost continually o The nature of cities Increasing globalisation has had major impacts on the world urban system. As a result, a group of key cities has emerged as key nodes in the organisation of the world economy. These are the world cities. Very few world cities are located in the developing world as global economic functions are the key influence rather than population.

Character of World Cities

World cities are the control or command centres or nodal point in the network of cities around the world. They are:o major financial and business centres o centres for most leading global markets o leading global markets for commodities o corporate headquarters for TNCs o centres of specialised high-order business services such as finance, accounting, law and advertising o headquarters of trade and professional organisations o sites of NGOs and inter-governmental organisations (IGOs) o centres of prestige and distinctive lifestyles o transport and communication hubs o hubs of national road and rail networks o key locations of the most powerful and international significant media organisations o major tourist attractions o centres of entertainment and cultural activities o areas of prestige housing

Spatial distribution of world cities

Located in developed nations mostly in the northern hemisphere Out of 32 world cities (2004) only 4 are located in the southern hemisphere. Very few of these world cities are in developing countries as world cities are defined by their global economic functions not population size Spatially dispersed in different time zones but globally integrated spatial articulation attractive for employment, economic authority/ power Most classifications subdivide world cities into a hierarchy of: o Dominant world cities such as New York, London and Tokyo - exercise the most power over the global economy. o Major world cities such as Los Angeles, Frankfurt and Paris - link large national economies to the global system. o Secondary world cities such as Sydney, Hong Kong, Seattle and Sao Paulo - provide a link between their regions to the global economy. Sydney = Australias main link with the global system

The role of world cities as powerful centres of economic and cultural authority
World cities have become the nodal points for the multiplicity of linkages and interconnections that sustain the contemporary world economy, social and political systems.

Economic Authority
World cities are command points in the organisation of the global economy. They are the headquarters for many TNCs and large national corporations. TNCs have enormous influence on the global economy. World cities are also the headquarters for most of

IGOs that play a major role in the global economy. These include the WTO in New York and the Organisation for Economic Cooperation and Development (OECD) in Paris.

World cities are key locations for full range of financial services. All of the major stock exchanges and future exchanges are located in world cities. New York is the major city in the world for the trading of equities and government bonds. World cities are centres for banking and associated financial services. The largest banks in the world have their headquarters in world cities. World cities are key locations for specialised service firms which have replaced manufacturing as the leading economic sector such as finance, law, accounting, advertising, tourism and research. World cities are markets for a vast range of goods and services. The purchasing power of people in major world cities is extraordinary. Streets such as Fifth Avenue in New York are famous for their retailing of very expensive goods.

Cultural Authority
World cities are key locations for social infrastructure and networks, cultural activities and entertainment facilities. World cities have a social infrastructure that facilitates contact between people to exchange information face-to-face and develop global social networks. World cities have office buildings, international hotels, conference centres, apartment blocks and prestige residences of distinct architectural design. The social infrastructure is supported by sophisticated transport and information systems. World cities are centres for a range of cultural facilities and entertainment. They have theatres, opera houses, large entertainment centres and sport facilities. They host major cultural and sporting events ranging from art exhibitions to tennis tournament. World cities provide the opportunity for a distinctive cultural lifestyles World cities need a strong physical and social infrastructure. This includes: o Office buildings of distinctive architectural design o Major international airports o Information highways to sustain global reach The social networks are nourished by a large variety of cultural and entertainment centres. World cities have many famous centres such as Wimbledon (London), the Louvre (Paris) and Telstra Stadium (Sydney) All of the world cities host major international cultural, entrainment and sporting events which cater for the needs of locals, national and international visitors. They link between the globalisation of culture and the global urban hierarchy is apparent with international competitions. The coverage of major events and their host cities are seen around the world due to communications technology The competition between almost world cities has increased with globalisation as cities at various levels in the global hierarchy compete in an increasingly crowded global market.

The operation of global networks

Global networks are the result of recent developments in telecommunications (wireless, satellite) Global networks are the result of financial deregulation e.g. Europe - Euro Linked with: global stocks, commodities, raw materials, energy supplies, information World cities are both linked to other cities +to their hinterland

Information hubs helps TNCs maintain competitive advantage Information = marketable commodity e.g. Reuters They have their own hierarchy of business and support their own network. The breaking down of barriers between nations and the increasing integration of economies Global networks have resulted in: The growth of TNCs because of well-established communication and transport networks The growth of trade trade barriers reduced The increasing mobility of labour both skilled and unskilled but especially highly skilled The increasing flow of capital e.g. over $1500billion per day The increasing influence of Media networks on the information people receive and on culture Global airline networks Airline systems are the best example of the role that transport plays in linking the world city system. Highly evident in top 3 world cities, Information flows readily on a global airline and is accurate Air transport is the preferred mode of travel for business and government personnel and tourists. Airline links are important part of a citys visible claim to world city status. There is an increased demand for person-to-person interaction in business and government The movement and interaction of people and information has become at least as important as the movement of goods. As people move and interact they bring with them information which is not often available from any other source. Telecommunication networks Telecommunication networks have been revolutionized by satellites. By the end of the 20th century, there were more than 200 functioning satellites in orbit, each one capable of carrying tens of thousands of telephone calls and several TV signals at once. The global telephone network is dominated by the dominant world cities. The world cities with the most outgoing and received telephone calls are London and New York. Urban Hierarchy

The ordering of power in the global network

The growth and volume of economic activity in urban centres is dependent on world cities e.g. Mitsubishi decision of plant closure in Tokyo hundreds of people lose jobs in Adelaide. They have enabling infrastructure airports, roads, subways, optical fibre etc.

The relationships of dominance and dependence between world cities and other urban centres and the changing role of regional centres and the demise of the small town.
The relationships of dominance and dependence between world cities
The major world cities are linked 24/7

They are linked by: - airline flights - Email origin and destination - Fax origin and destination - Mobile phone origin and destination - Shipping movements origin and destination - Internet log on rate, origin and destination - Foreign investment, origin and destination - Tourism - Media Three dominant world cities New York, London and Tokyo are recognized as dominant world cities. Many of the large industrial TNCs that account for nearly 70% of international trade have their headquarters in these cities. The massive expansion of the global financial industry over the last twenty years has greatly increased the global significance of New York, London and Tokyo. The main transactions in shares, bonds, loans and foreign exchange are dominated by these three cities. Person-to-person information There is an increased need among decision makers operating on a global scale to have access to private information that can only be obtained through person-to-person interaction. It was thought that the significance of the dominant global cities would decrease as information would be freely available almost anywhere in the world where there was a telephone link. In fact, the reverse has happened because the great financial cities can provide information not available in electronic form. That is information exchanged person-to-person. In global financial decisions, this is often the most important as it is only available to a small group who make regular contact in cities such as New York and London. Global system of world cities New York, London and Tokyo not only dominate an international time zone but each of them is the dominant cities in the three main cores of world cities. The North American core is the broadly integrated economies of the USA and Canada. These countries, although strongly independent, are also closely political The Western European core is mainly the countries of the European Union, which are highly integrated economically and loosely integrated politically. The Western Pacific core has little economic or political integration, even though there are increasingly close economic ties between the nation states in this geographic area.

The Changing Role of Regional Centres

Regional centres have a population between 11000 and 50000. Cascade effect through the Urban System: from National level to the regional level and then to the local level Marked reduction in services Large regional shopping centres have contributed to the demise of the local, small town retailer. They have more choice and lower prices.

Advantages for regional cities include:

 lower operating and land costs fewer restraints on effluent disposal higher productivity reduced staff turnover lower levels of union involvement Growth of regional centres Regional Centres such as Dubbo have experienced a growth in population 50% in last 21 years (1997) Their growth is caused by the movement of people from smaller country towns, or people moving out of Sydney (Counter urbanisation) Regional centres have fewer functions than national centres and have a smaller hinterland The major decisions affecting social and economic change are made in the metropolitan areas. They are areas from where ideas and innovations are dispersed through the country. Metropolitan areas perform complex social and economic functions for smaller urban places and rural areas in their general district. The area influenced by a town or city is known as its hinterland

The Demise of the Small town

Population under 11 000 As regional centres have grown, many other local communities and country towns have declined. Some 431 centres with populations less than 4000 will struggle to survive. As many large metropolitan areas have become increasingly more important on a global scale there have been significant changes in settlements in rural areas such as the decline in small towns. Large metropolitan areas have pull factors o Economic activities such as wholesaling, retailing, finance and manufacturing o Education o Health o Entertainment Losing the infrastructure necessary to maintain a viable community e.g. train line in central NSW Gulargambone 130km north of Dubbo has a population of 489. In 1991 its population was 490 and in 1996 it was 461. It is experiencing little or no growth. Between 1981 and 1998 more than one-quarter of the bank branches in rural NSW were closed In the 21 years to 1997 Dubbos population increased by more than 50%, however all the town within a 100km radius (Gilandra, Warren and Wellington) have declined.