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The Global City

Accountancy (Central Luzon State University)

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the May 1886 description of Liverpool by

The Illustrated London News. Patrick
LESSON 10THE GLOBAL CITY
Geddes also used the term "world city"
later in 1915. Cities can also fall from such
Global City categorization, as in the case of cities that
have become less cosmopolitan and less
A global city, also called a power city, internationally renowned in the current era.
world city, alpha city or world center, is a
city which is a primary node in the global
economic network.The concept comes What makes a city “global”?
from geography and urban studies and
rests on the idea that globalization can be Nowadays globalization occurs in
understood as largely created, facilitated, places where a mass of people work and
and enacted in strategic geographic live in cities. However, for a city to achieve
locales according to a hierarchy of the title of being global, it must have values
importance to the operation of the global and ideas that will have an impact of the
system of finance and trade. The most rest of the world. “ Global city is a term that
complex of these entities is the "global raises an understanding for the
city", whereby the linkages binding a city cognoscenti” (Low, 2005: p218). Low
have a direct and tangible effect on global (2005) further says that a global city is a
affairs through socio-economic means. city that is well thought out to be an
important node in the world’s economic
A global city is a city that has the system.
power to effect global issues and change
the global outlook. They can do this
A global city has wealth, power and
through a varied set of systems from
influence to other countries as well as
politics to military and economics,
hosts the largest capital markets.
controlling and adapting the route the
Moreover, a city that has wealthy
global economy takes. Different cities have
multinational companies, good
a different amount of power and how this
infrastructure, better economy, well-
power and influence develops can stem
educated and diverse populations and
from small changes in geography, climate,
powerful organizations as well as a good
language, culture and technology.
political structure that are linked to the
other parts of the world like nowhere else
The use of "global city", as opposed to is considered to be global (Badcock, 2002:
"megacity", was popularized by sociologist p31).
Saskia Sassen in her 1991 work, The
Global City: New York, London, Tokyo
though the term "world city" to describe A global city, therefore, is the world’s
cities that control a disproportionate most important and influential city that
amount of global business dates to at least covers the dimensions of the globalization.

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These dimensions are cultural experience,
business activity, human capital as well as
political engagement. London, New York,
Paris, Rome and Tokyo are one of the
most well-known global cities as it provides
global competitiveness for its citizens and
companies.
Some Of The World's Best-Known
Global Cities
According to the A.T. Kearney’s Global
Cities Index 2017, New York outsmarted
London as the world’s best-performing city
while the latter ranked second. Paris,
Tokyo and Hong Kong followed
respectively. The city of San Francisco
topped the Global Cities Outlook Index
ahead of New York, Paris, London, and
Boston respectively. New York was ranked
the best city for business activities, and
human capital. Paris topped the best cities
for information exchange while London
was rated the best city for a cultural
experience. Washington, D.C. the best city
for political engagements. Hong Kong
boasts of being a global leader in air
freights while Brussels boasts of being the
best place to set up an embassy.
Significance and Roles of the Global
Cities
A. World Economy
The roles global cities (also known as
world cities) perform in the world economy
is very complex and can vary from city to
city but there is a general overview of how
certain cities effect the economy. This is
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why there are different classes of world
cities ranging from cities which have
relatively low global influence to ones with
a huge amount of power to effect the
systems of the global economy (Knox and
Taylor, 1995). The economy itself plays a
large part in how much influence individual
cities have.
In the 1970s to 1980s, the economy of
the world transitioned from a largely
international economy to a truly global
economy, production lines where spread
across the world by globalization and the
growth of the global banking system along
with dropping of many economic
regulations by western nations such as the
UK helped create a truly global economy.
There are many different ranking systems
for world cities (Economist Intelligence
Unit, 2012) which take into account
different information, although this may
provide a small amount of variation there
seems to be a recurring pattern of the top
ten cities in the rankings. New York seems
to be the top in all of the systems except
economics. This maybe because although
New York has a large amount of influence
on the global economy such as being the
centre for the world`s largest stock
exchanges which when combined have a
market cap of 38 trillion (Relbanks, 2010).
The reason though why New York does
not lead the table in economics is because
there is very little change of financial
development because it is already so
highly developed meaning there is very
little real Gross Domestic Product (GDP)
development in the city. This means that on
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the economic scale the Asian cities and how they wished without the constraints of
even in a more local scale mainly Chinese mountains or the ocean. This is why
and Indian cities, rule the table. They have certain cities such as Lagos which are
the most flexibility as they are still large and have many industries do not
developing and there are still a large have enough area to develop as they are
amount of people moving into these cities stopped on one side by swamps and on
meaning there is an extended work force. the other by the ocean (Ogunbambi, 2010)
meaning they even though they are
expanding in terms of human population
The power Western cities like New the more the human population expands
York, London, Frankfurt and Paris have is they lower the living standards in general
more based on political blocks and political area and because of this many upper
influence as they nations are very powerful industries like banking and retail sectors do
in already developed markets and military not think it viable to develop links to the
states, this means they can influence other city.
markets such as China (Feenstra and Wei,
2010) who want to export to them because
their economy would collapse if these B. Worldwide Networks and
nations stopped trading with them. Also CentralCommandFunctions
because the western nations are where
many banks grew and developed there The geography of globalization
have been an expansion of the contains both a dynamic of dispersal
westernization of the global economy until and of centralization. The massive
it has fit into an already similar western trends towards the spatial dispersal
ideal. This is generally why the top world of economic activities at the
cities are either from the western world or metropolitan, national, and global
are nations or areas highly influenced by level that we associate with
the western world such as Hong Kong or globalization have contributed to a
Singapore. demand for new forms of territorial
centralization of top-level
management and control functions.
The way a city develops can affect how Insofar as these functions benefit
much influence they have greatly. Such as from agglomeration economies even
in Brazil where they wanted to develop a in the face of telematics integration
new capital which would be the centre of of a firm’s globally dispersed
the Brazilian economic sphere and political manufacturing and service
sphere. Instead of trying to redevelop an operations, they tend to locate in
already excising city it was decided that cities. This raises a question as to
building a completely new capital from why they should benefit from
scratch in a geographical location was agglomeration economies,
would be most beneficial and would be the especially since globalized
best idea as they could develop the city economic sectors tend to be

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intensive users of the new

telecommunications and computer
Advantages of a Global City
technologies, and increasingly
produce a partly dematerialized
output, such as financial instruments 1. Significant growth in the economy -
and specialized services. both localized and as a whole

There is growing evidence that Global City’s economy grows faster as

business networks are a crucial variable it is the center of trading. Moreover, it has
that is to be distinguished from technical varieties of things to offer, from food,
networks. Such business networks have clothing, accessories, etc.
been crucial long before the current
technologies were developed. Business
networks benefit from agglomeration 2. Better infrastructure
economies and hence thrive in cities even
today when simultaneous global
Global City has advanced
communication is possible. Elsewhere, I
technologies, knowledge, and diverse
examine this issue and find that the key
advancement in architecture and
variable contributing to the spatial
engineering that can create a new and
concentration of central functions and
modern infrastructures.
associated agglomeration economies is the
extent to which this dispersal occurs under 3. Higher levels of tourism
conditions of concentration in control,
ownership, and profit appropriation
(Sassen2001, ch. 2 & 5). Considering the diversity of global
cities in terms of its food, clothing, and
This dynamic of simultaneous accessories, etc., tourists often visits them
geographic dispersal and concentration is to learn, have, or experience varieties of
one of the key elements in the things.
organizational architecture of the global
economic system. While there is no space
4. Better public transport
to discuss it here, this systemic feature
also enables particular types of struggles
and implementations linked to
The more advanced science and
environmental sustainability
technology in a global city is the main
(Sassen2006b; Marcotullio and Lo 2001).
reason of it having a better transportation
Let me first give some empirical referents
for its rising population.
and then examine some of the implications
for theorizing the impact of globalization
and the new technologies on cities. 5. More Work Opportunities

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The higher cost of living is the first

disadvantage that people typically think of
Global cities have rising population and
when considering moving to a city.
advanced way of living. Therefore, it needs
6. Noise
more people to work and to contribute to
the development of that particular city. In general, the noise level in major
cities is higher than in the suburbs. Cities
have more people and more traffic that
Disadvantages of a Global City contribute to the noise, as well as trains

1. Pollution/Smog and nearby airports with loud planes flying

in and out. Special events such as
Rising population in a global city
concerts and ball games can also make a
results to more wastes and more
neighborhood louder and more congested.
irresponsible citizens. Also rising numbers
Downtown areas in some major cities like
of factories contributes to so much
New York are loud and busy almost 24
pollution.A dangerous form of pollution
hours a day.
specially to go hand in hand with
urbanization caused mainly due to
7. Lack of Space
chimneys, factory stacks, vehicles and
others smoke releases making the air Moving from the suburbs to the city
toxic. almost always involves downsizing your
living space. Most people in major cities
2. Over population
live in apartments and in some cities, the
A global city usually considered by apartments can be very small. It is also
many as a “place/city of dreams” as it rare to have an outside space like a yard or
offers a lot of great things to live for. patio. There are homes in major cities,
Hence, many people dreamed of living in a some with decent sized yards, but they are
global city. much more expensive than in the suburbs.
If you want to move to the city, you must
3. Slums/ housing problem
accept that you will be living in an
Due to overpopulation, people face
apartment building with neighbors on the
housing problem. Thus, making it hard for
other side of your walls.
them to live.

4. Poverty 8. Lack of Parking

Global city is considered home of the The parking situation in a major city is
richest and the poorest. This is due to the a huge hassle compared to the suburbs.
intense competition in a global city that In the suburbs, people can park in their
caused by the rising population. If you are driveways or on their residential streets
a weak or a negative-thinking person you and most businesses have parking lots for
are prone in living a poor life. their customers to use.

5. Cost of living
Five (5) Big Challenges Facing Big

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Cities of the Future transmission of electricity, many cities will

continue to struggle to provide these
The UN estimates that 55% of the resources to an ever-growing urban
global population lives in urban areas – a population.
figure that is projected to rise to 68% by Beyond these basic requirements,
2050. With few exceptions, cities are haphazard growth will see the reduction of
expected to become bigger and more green spaces within cities, negatively
numerous. affecting live-ability. As fresh water
becomes scarce and fertile lands diminish,
As urbanization speeds up, particularly food prices may escalate, hitting the
in Asian and African countries, here are poorest hardest.
five of the biggest challenges confronting
the future of cities: 3. Inequality

When it comes to both the provision of

1. Environmental threats
basic resources and resilience against
Rapid urbanization, which strains basic environmental threats, the forecast is
infrastructure, coupled with more frequent uneven for different groups of urban
and extreme weather events linked to inhabitants. As the number of urban super-
global climate change is exacerbating the rich grows, many cities will also see
impact of environmental threats. Common increased numbers of urban poor.
environmental threats include flooding,
tropical cyclones (to which coastal cities The widening gap between the haves
are particularly vulnerable), heat waves and have-nots will be accentuated in the
and epidemics. megacities of the future. Such inequalities,
when left unchecked, will destabilize
Owing to the physical and population society and upend any benefits of urban
density of cities, such threats often result in development. There is a critical need for
both devastating financial loss and deaths. policy-makers to ensure that the fruits of
Making cities more resilient against these progress are shared equitably.
environmental threats is one of the biggest
challenges faced by city authorities and 4. Technology
requires urgent attention.
Technology will be increasingly used in
the development and running of cities of
2. Resources
the future. Smart planning used in
Cities need resources such as water, Singapore can harness solar energy for
food and energy to be viable. Urban sprawl use in housing estates and create man-
reduces available water catchment areas, made wetlands for ecological balance.
agricultural lands and increases demand Smart mobility technology can alleviate
for energy. While better application of traffic gridlocks which plague many cities.
technology can boost agricultural
productivity and ensure more efficient The use of environmental technologies

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which can cool buildings more efficiently or 1. A variety of international financial

run vehicles that are less polluting will also services,notably in finance, insurance,
lead to better future cities. Installing real estate, banking, accountancy,
sensors in the homes of ageing seniors and marketing.
living alone can connect them to the
2. Headquarters of several multinational
community and summon help when they
corporations.
are unwell or hurt.
3. The existence of financial

However, technology can exclude headquarters, a stock exchange, and

urban inhabitants who cannot afford it or major financial institutions.

lack the capability required for its adoption. 4. Domination of the trade and economy
As future cities become more digitized, of a large surrounding area.
care must be exercised to prevent the
5. Major manufacturing centers with port
emergence of a new form of social divide
and container facilities.
rooted in the technological.
6. Considerable decision-making
5. Governance power on a daily basis and at a global
level.
Future cities offer immense possibilities
to enrich the lives of their inhabitants even 7. Centers of new ideas and innovation in
as the challenges are stark. To make the business, economics, culture, and
best out of inevitable urbanization, good politics.
governance is imperative. Cities will
8. Centers of media and communications
increase in size and their populations
for global networks.
become more diverse. Governing these
9. Dominance of the national region with
cities will, therefore, be progressively
great international significance.
complex and require the most dedicated of
minds. 10. High percentage of residents employed
in the services sector and information
Increasingly, cities around the world sector.
are learning about the best governance
11. High-quality educational institutions,
and planning practices from one another,
including renowned universities,
even as they remain accountable to their
international student attendance,and
respective national governments. The
research facilities.
broad goals of urban governance should
address issues of equity, live-ability and 12. Multifunctional infrastructure offering
sustainability in cities of the future. some of the best legal, medical, and
entertainment facilities in the country.
High diversity in language, culture,
Characteristics/ Factors in Considering religion, and ideologies.
a Global City

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References:

 https://www.definitions.net/definition/gl
obal+city

 https://www.weforum.org/agenda/2018/
10/the-5-biggest-challenges-cities-will-
face-in-the-future/

 https://www.slideshare.net/mobile/TAK
ERUIMANISHI/chapter5-1-36919599

 https://en.m.wikipedia.org/wiki/Global_
city

 https://sloanreview.mit.edu/article/learn
ing-from-global-cities/amp

 https://www.midwestmoving.com/2018/
06/28/advantages-and-disadvantages-
of-living-in-a-big-city/

 https://www.britannica.com/topic/global
-city

 https://www.tutorhunt.com/resource/111
10

 https://www.cram.com/flashcards/adva
ntages-and-disadvantages-of-a-world-
city--8186316

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