THE GLOBAL CITY

In realist theory, international affairs are conducted only through the state because the state is the
only legitimate actor in the international system. In the previous lessons, we have discussed how a
state controls the flow of goods, capital, resources, and people and the regulation of international or
cross-border activities within the interstate system. However, in liberalist theory’s explanation of the
process of globalization, the state is no longer the central actor and is analyzed not as a single
unitary actor but as an entity considered as a national whole composed of subnational parts.
Saskia Sassen (2001) said that subnational actors, such as cities, are considered important actors
with their extensive networks in a highly integrated and interconnected world. The term global city,
which refers to London, Tokyo, and New York, was coined by Saskia Sassen in her book The Global
City. She argues that global cities are “major nodes” in the interconnected systems of money and
information, including the wealth captured by these cities. They are closely related to specially
designed businesses that enable these flows. These businesses are media firms, financial
institutions, law firms, accounting firms, and consulting firms. Sassen added that these flows are no
longer strictly bound by regulatory systems imposed by the state and not constrained by national
territorial boundaries. The networks and linkages of global cities significantly affect global affairs in
terms of culture, politics, and socioeconomic means. Sassen argued that given that restriction by
states upon the global flow of resources, information, and people are no longer as stringent as in the
past, understanding global cities, their system, and their global networks require a “new conceptual
architecture.” Sassen proposed the following seven hypotheses regarding the modern global city:
1. The scattering of economic activities that serve as the indicators of globalization across
different areas and the simultaneous integration of activities scattered across various
geographical locations is a key factor feeding the growth and importance of central corporate
functions.
2. These central functions become complex. Hence, the headquarters of large global firms
increasingly outsource them; they buy a share of their central functions from highly
specialized service firms.
3. Agglomeration economies affect specialist service organizations operating in the most
sophisticated and worldwide markets.
4. The more the headquarters outsource their most complex, unstandardized functions,
particularly those subject to uncertain and changing markets, the freer they opt to choose
any location.
5. These specialized service firms need to provide a global service, which results in a global
network of affiliates and strengthens cross-border city-to-city transactions and networks.
6. These cities' economic fortunes are becoming increasingly separated from their broader
hinterlands, if not their national economies.
7. The expanding informalization of a range of economic activities, which have effective
demand in these locations but have profit rates that prevent them from competing for various
resources with high-profit making enterprises at the top of the system, is one result of the
dynamics stated in hypothesis 6.
(Little, 2013)
CHARACTERISTICS/ATTRIBUTES OF A GLOBAL CITY
Global cities are characterized by specific attributes shared by wealthy and politically powerful cities
all over the world. These characteristics may have slight variations due to cultural differences, but
this is true for all global cities. Various criteria have been developed to determine what the global city
is. The 2012 Global City Index, which was a global management consulting firm that AT Kearney
developed, categorize global cities according to the following criteria in cooperation with the Chicago
Council on Global Affairs:
1. Business Activity – various businesses and economic activities hosted by a global city
1. Several multinational company headquarters such as McDonald’s and Starbucks
2. Global services firm or organizations whose primary business model is to offer intangible
value instead of tangible products such as IT firms, educational institutions, and consulting
firms
3. International Financial Institutions such as the World Bank
4. Stock exchange or facilities where traders or brokers can buy and sell securities as shares of
stocks and other financial instruments
5. International conferences
6. Sea and Airports to facilitate the transport of goods and people
2. Human capital – facilities that could help produce a highly literate and educated population
residing in the city
1. Size of the foreign-born population
2. Quality of universities
3. Number of international schools
4. International student population
5. Number of residents with college degrees
3. Information Exchange – availability of information and communication technologies and
facilities hosted by a city
1. Major TV channels
2. Internet accessibility
3. Number of international news bureaus
4. Censorship
5. Broadband subscriber rate
4. Cultural Experience – events and facilities that enable visitors and residents to experience
the city’s unique culture
1. Museums
2. Sporting events
3. Visual and performing arts venues (e.g., concerts, dance shows, music festivals)
4. Culinary offerings and establishments
5. International travelers
6. Sister city relationships
5. Political Engagements – several establishments and organizations that hold significant
authority and influence in local and global affairs
1. Embassies and consulates
2. Think tanks
3. International organizations such as the United Nations, World Health Organization, and the
World Trade Organization
4. Political conferences and meetings
In the Philippines, we can observe these characteristics in Metro Manila cities, Cebu City, and Davao
City. ASEAN cities such as Kuala Lumpur, Jakarta, Hong Kong, Tokyo, and the city-state Singapore
are the premier examples of global cities that tend to divert wealth and resources toward their highly
educated elites, leaving little for the marginalized who are not part of this political subdivision.
HOW DO CITIES SERVE AS ENGINES OF GLOBALIZATION?
Cities are the engines of globalization. They are social magnets, growing faster and faster. In the
current generation, urban life has become the dominant form of human life throughout the world. The
problems generated by the present rate of urban growth are new and cannot be solved based on
past lessons. Our historical urban institutions are not adapting fast enough to the pace of growth.
Cities are the
Direct Quote:
“engines of economic growth. This idea has captured the imagination of decision-makers for
decades, from the seminal report Urban Policy and Economic Development: An Agenda for the
1990s to more recent work by the Commission on Growth and Development and the Global
Commission for the Economy and Climate. Rapid economic growth is generally associated with
urbanization and can be partially attributed to structural transformation as labor moves from the
agricultural sector to industry and services. It can also be attributed to agglomeration and scale
economies as proximity and density reduce the per capita costs of providing infrastructure and
services and creating knowledge spillovers and specialization that significantly enhance the
productivity of urban residents.
However, neither all cities nor all residents within a given city benefit from urbanization’s potential
economic dividends. One out seven of the world’s population lives in poverty in urban areas. Even in
cities with a high per capita GDP, many urban residents lack access to basic services and
infrastructure, such as safe and accessible drinking water, sanitation, waste collection, all-weather
roads, education, health care, emergency services, and electricity.” (Colenbrander, 2016)