Global cities are something new. Everybody talks about them.

Many cities would like to

be one. But few people really understand global cities – what they are, why they’re special, what
makes them global, where they came from, how they differ from the cities that have been with us
for millennia, how they deal with other global cities, not least how they cope with problems and
challenges, many unique to global cities. Have you wondered how the city differ from a global
city? Are all cities global cities?
City vs. Global City
A city is an inhabited place that is larger, more populous, and more significant than a
town or village. It is characterized by its urban environment, infrastructure, and services. Cities
can vary in size and importance, and there is no universally agreed-upon definition for the lower
boundary of their size. On the other hand, a global city (also known as a power city, world city,
alpha city, or world center) is a city that serves as a primary node in the global economic
network. Global cities enjoy significant competitive advantages and act as hubs within a
globalized economic system. Global cities play a pivotal role in global economics, politics, and
culture, and they often have a prominent skyline. The main difference between a city and a
global city lies in their scope and influence. While a city refers to an inhabited place of greater
size and population, a global city goes beyond that and is recognized for its pivotal role in global
economics, politics, and culture. Global cities are often world-class cities known for their high
quality of life and various attractive features.
Not all cities are considered global cities. Global cities are cosmopolitan cities that serve
as hubs of global industry and culture. They are usually large cities with a diverse structure and
have a significant impact on the global economic network. Examples of global cities include
New York, London, Paris, Tokyo, and Seoul. These cities possess competitive advantages and
play a crucial role in the globalized economic system. However, it's important to note that not all
cities meet the criteria to be classified as global cities. In short, not all cities can be considered
global cities. The status of a global city is determined by a combination of factors and varies
from city to city based on its level of economic power, political influence, cultural significance,
and connectivity to the global network.
Global City
The concept of “global city” was coined by the sociologist Saskia Sassen in her book The
Global City (1991). Sassen covered specifically New York, London, and Tokyo in her book, but
there are many more global cities than this. According to Sassen, the global city, alpha city or
world city is called the cities endowed with relevant competitive advantages and that serve as the
axis of a globalized economic system. They are cities forged by the double effect of a constantly
growing urbanization, and the pressures of the economic and social process of globalization.
Global cities are generally cities of international importance and renown. They occupy an
extensive urban platform (and therefore with a huge population) and play an active role in the
economic, social and technological flow in their region, or even on the planet. These types of
cities are contemporary equivalents to the city-states of antiquity. In fact, many of them have
political and administrative autonomy, or even their own constitution that determines their laws.
In short, they are relevant cities for the world order, that is to say, model cities of contemporary
global capitalism.
Characteristics of Global City
Global cities are urban centers that play a crucial role in the global economy, politics, and
culture. They are characterized by various key features that contribute to their prominence and
influence. Here are some of the characteristics of global cities:
1. Economic Power
First and foremost, economic power refers to their significant influence and contribution to
the global economy. These cities possess various economic characteristics that make them major
centers of economic activity, attracting investments, businesses, and skilled professionals from
around the world. Global cities are the hubs of the global economy. No city is a global city
unless it is an economic powerhouse, dominant in finance, trade, manufacturing, or business
services.
Some cities, such as London or New York, command several economic sectors. The
leading economic sector in New York include financial services, healthcare, professional and
business services, retail, trade, manufacturing, and education. One of the New York’s
manufacturing industries is the International Business Machine Corporation which is a
multinational technology company. IBM is one of the world's largest IT companies, with
operations in over 170 countries. IBM is known for its hardware and software products,
including computers, servers, storage systems and networking equipment. It also provides
consulting, technology and business services, such as cloud computing, data analytics and
artificial intelligence (AI). IBM's presence in New York City contributes to the local economy
through job creation, investment in technology infrastructure, and collaboration with local
businesses and institutions.
London, England: Dominated service industries, particularly financial services and
associated professional services. Example of the London, England finance services is the
Barclays. Barclays is another major British bank headquartered in London, with a significant
presence in the city's financial services sector. The bank offers various services, including retail
and commercial banking, investment banking, wealth management, and credit cards. Barclays is
known for its investment banking division, which provides advisory, financing, and risk
management services to corporate and institutional clients globally.
Others dominate only one sector but, if that sector is globally important, it can contribute
to the economy of the city. So is the city – Los Angles, for instance, its entertainment industry.
2. Size
Size refers to various dimensions that contribute to their prominence and influence on the
global stage. Global cities are characterized by large and diverse populations. The size of the
population reflects the city's ability to attract residents from around the world, fostering cultural
diversity and providing a vibrant social fabric. A larger population often indicates a greater pool
of talent, innovation, and economic potential All global cities are big cities-three million people
or more. It takes size to offer all the attributes needed to be a global city. They occupy large
territorial extensions that are densely populated (conurbation).
For instance, the functional density of Tokyo is ideal for global cities. According to data,
Tokyo has a density of around 11,300 people per square mile (4,300 people per square
kilometer), which is lower than cities like London and Hong Kong. The city's size and
population contribute to its economic and cultural significance, making it one of the most
populous cities in the world.
But note: size isn’t enough. Some of the world’s biggest cities- Manila, Cairo, Mexico
City, Lagos, Kolkata, and Lima-are nobody’s idea of a global city, and may never be widely
accepted.
3. Human capital
This means having a storehouse of smart, educated, creative people. The percentage of the
population with a college degree counts. So does the number of universities and their quality. So
does the international student population, along with the number of foreign professors and
researchers. Any global city must understand the outside world and have links to it, so its ability
to attract brains from around the world is vital.
Example: The Sorbonne University provides a higher education heart to Paris. As a
multidisciplinary research university in the heart of Paris, Sorbonne University is resolutely
international. Sorbonne University is breaking new ground in knowledge and tackling major
contemporary challenges, such as climate change and sustainability, digital transformation and
the data revolution, personalized medicine, and open science. On its campuses, in Paris and at its
regional marine coasts, it boasts state-of-the-art facilities that are conducive to success and hard
work. Sorbonne University is deeply engaged in fostering public discourse by hosting a diverse
array of events accessible to all, including lectures, courses, and cultural performances. With a
commitment to innovation, it prioritizes technology transfer and entrepreneurship, actively
supporting startups within its community through various investment and technology transfer
mechanisms.
4. K-12 education
At the upper-wage end of the socioeconomic scale, this means good schools for the
children of global citizens. Entrepreneurs and investors will shun a city where their children get a
bad education. At the lower-wage level, this means a solid education for the army of workers-
truckers, cooks, small manufacturing employees, clerical workers, retail workers-whom a global
city needs as much as it needs its global stars. Example: Seoul primary schools are consistently
near the top such as the Seoul International School. South Korea is well known for its high
standards about education, which has come to be called "education fever". This high value of
academic knowledge has resulted in Korea being one of the most educated countries in the
world.
5. Foreign-born residents
Tied to human capital is the sheer number of foreign-born residents. Some are expatriate
professionals, living abroad for a job for a few years. Like bees flitting from flower to flower,
they are a mobile source of knowledge of best practices from around the world. Large immigrant
populations are more often poorer and less educated, but they are both cause and effect of urban
vitality. They go to global cities because that’s where the jobs are and, once there, add their new
blood and verve to that vitality. Example: A high percentage of Toronto residents are
Immigrants. Global cities have positive immigration rates (inside and outside the country) and
tend to host citizens of very different cultures and origins.
5. Culture
Global cities are known for their diverse populations and cultural offerings. Culture is also a
cause and effect of a global city. They attract people from all over the world and offer a wide
range of cultural amenities, including museums, theaters, and art galleries. This is also a draw for
global citizens who have a palette of places to live, work, and do business. Good restaurants are
crucial. So are recreation and sporting events. So are night clubs and wine bars and rock
concerts. Global citizens will go to the place where their brains and education can be best used,
but they also want to have fun. Example: The Sydney Opera House is a global icon for culture.
The Sydney Opera House is considered a global icon for culture due to its distinctive design,
cultural significance, and role as a major performing arts venue. Its unique sail-like architecture,
designed by Danish architect Jørn Utzon, has become synonymous with Sydney and Australia's
identity. Additionally, the Opera House hosts a wide range of performances, including opera,
ballet, concerts, and theater, attracting artists and audiences from around the world. Its UNESCO
World Heritage status further solidifies its importance as a cultural landmark.
6. Tourism
Because global cities are so big, so vibrant, so much fun, they are magnets for tourists.
Tourists themselves are a major export industry: they come from outside to buy what a city has
to offer. Then, having seen the global city first- hand, they take their impressions home with
them, helping to create the buzz that any global city needs. Example: Singapore draws twice its
population in tourists each year. Singapore's population has reached a record high of 5.92 million
as of June 2023. Singapore is popularly known for being a global financial center and is home to
the most amazing world heritage sites, world-class airport with a waterfall view, luxurious malls,
and wonderful tourist destinations.
7. Global Connectivity
Global cities have excellent transportation infrastructure and are well-connected to other
major cities around the world. They often have large airports, seaports, and advanced
communication networks. For the most part, this means air and digital connections to the rest of
the world. If global cities are where global citizens meet, then a major airport with a full
schedule of nonstop flights to other global cities is crucial. So is top- flight broadband
connectivity. Example: London is the global leader in airline passenger travel.
8. Globally attuned local leadership
Global cities often have significant political power and influence, both nationally and
internationally. They may be home to national governments, international organizations, and
diplomatic missions. City officials must understand their cities’ place in the global economy.
Then they must sell this global focus to voters for whom all politics may be local. This is hard:
pro-business policies that draw in global corporations and global citizens can conflict with
policies needed to provide decent lives for those whom the global economy has left behind. In
addition, cities need to spend heavily to keep their global status. Global investors can afford
these costs, but everyone else — middle class and working class — may be priced out of town.
Example: Los Angeles Mayor Eric Garcetti (left) shares a laugh with Japanese Prime
Minister Shinzo Abe. The United States and Japan will work toward strengthened economic ties,
including promoting more direct investment in each other’s markets and approval of a Pacific
trade agreement.
9. Quality of life
Quality of life is all about ensuring that people are treated as equals, that people get the
dignity and respect they deserve and that their differences are celebrated. Global cities tend to
offer a high quality of life this includes public transit, the environment, safe streets, good health
care, and efficient and honest local government. A reputation for corruption, pollution, or crime
will damage a city’s competitive power. Example: Zurich is consistently atop of most quality-of-
life indices. In the report for 2023, Zurich was rated as having the second-highest quality of
living for expats and internationals. The “Swiss metropolis” was given high praise for the city’s
political stability, public transport and the relatively high salaries offered by local
and international firms.

Criteria of Global City

The concept of a global city has become increasingly relevant in our interconnected and
globalized world. The Global Cities has five criteria upon which cities are ranked these include a
business activity, human capital, information exchange, cultural experience, and last but not the
least political compromise. Understanding these criteria is essential for analyzing and
comprehending the dynamic role global cities play in the interconnected global landscape.
1. Business activity
These cities serve as hubs for trade, finance, and commerce, attracting multinational
corporations, financial institutions, and start-ups. Their economies are often driven by a diverse
range of industries, including finance, technology, media, and entertainment. Examples of global
cities with intense business activity include New York, London, Tokyo, and Singapore. These
cities are recognized as major global financial centers, hosting stock exchanges, headquarters of
multinational companies, and attracting investments from across the world.
New York, United States: The economy of New York is the largest regional economy in the
U.S. Wall Street, a household name around the world in association to business, trade and
wealth, has been the anchor through which New York has gained its deserved reputation as the
world’s premier financial center. The largest industries in New York industries include: finance,
healthcare, technology, retail, manufacturing, publishing, education services, food and beverage.
Companies such as PepsiCo, JPMorgan Chase, and Pfizer are just a few giants to name. New
York City is home to the New York Stock Exchange (NYSE) and NASDAQ, that are not only
both the largest stock exchanges by market capitalization, but also trading activity on the whole.
London: Another prominent global financial center and a major business hub in Europe. The
city has a thriving financial district called the City of London, which is famous for its banking
and financial services. London's business activity extends to various sectors such as finance,
technology, professional services, creative industries, and tourism. London hosts numerous
business events throughout the year, providing opportunities for knowledge exchange, strategic
partnerships, and market insights. Fortune Brainstorm AI London is an example of such an
event, gathering top AI decision-makers from companies like Google, Microsoft, and Shell,
among others.
Tokyo, the capital of Japan: Tokyo is a major economic and business center in Asia. The city
is known for its strong presence in finance, technology, automotive manufacturing, electronics,
and retail. Tokyo has a highly developed and sophisticated business environment. Business
events in Tokyo support the successful hosting of corporate events, conferences, and incentive
tours. The city offers a range of venues and resources for businesses. Tokyo also hosts
specialized events, such as the International Bio-Logging Science Symposium and the Hanazono
Shrine Antique Market.
2. Human Capital
A concentration of human capital is a crucial aspect of a global city. Human capital refers to
the knowledge, skills, and capabilities possessed by individuals living in a city. Global cities
often attract highly educated and skilled professionals from diverse backgrounds, fostering
innovation, creativity, and entrepreneurial spirit. The presence of top-tier universities and
research institutions further enhances the availability of human capital and helps to attract talent
from around the world. These cities become talent magnets, attracting ambitious individuals
seeking to advance their careers and contribute to the growth of global knowledge hubs.
New York City, USA: Highly skilled professionals in finance, technology, arts, and media
contribute to the city's economic growth and cultural vibrancy. Renowned universities and
research institutions attract talented individuals from around the world, fostering innovation and
knowledge exchange such as the New York University, Columbia University, Yeshiva
University.
Tokyo, Japan: A highly educated workforce with expertise in technology, engineering, and
manufacturing fuels the city's technological advancements and global competitiveness. The city's
emphasis on lifelong learning and continuous skill development ensures a skilled workforce
capable of adapting to changing economic demands.
Shanghai, China: Skilled professionals in finance, technology, and manufacturing contribute
to the city's rapid economic growth and emergence as a global financial center. The city's
investment in education and research institutions supports the development of a highly skilled
workforce.
3. Information Exchange
 Information exchange plays a vital role in global cities. They are characterized by
sophisticated communication networks, including advanced transportation infrastructure, high-
speed internet, and modern telecommunications systems. These cities serve as vital nodes in the
global flow of information, enabling businesses to operate efficiently, facilitating collaboration
and knowledge sharing among professionals, and acting as platforms for the dissemination of
news and cultural content. Information exchange is crucial not only for economic activities but
also for cultural development, academic research, and political engagement.
Tokyo, Japan: Tokyo is renowned for its advanced technology and innovation, making it a
hub for information exchange in various industries. The city's high-speed internet infrastructure,
research institutions, and technology-driven businesses contribute to its robust information
exchange ecosystem.
4. Cultural Experience
Cultural experience is another significant criterion of a global city. These cities tend to be
vibrant and diverse, representing a rich mosaic of cultures, languages, and traditions. Global
cities often boast world-class museums, theaters, art galleries, and cultural festivals, offering
residents and visitors access to a wide range of high-quality cultural experiences.
Paris, France: Paris, the capital of France, is renowned for its rich history, art, and
architecture. It is home to world-famous museums like the Louvre and the Musée d'Orsay, where
you can immerse yourself in art and culture. Paris also offers a variety of cultural events, from
theater performances to music festivals. Paris is consistently ranked as one of the most cultural
cities in the world.
5. Political Compromise
Global cities are often centers of political power, hosting national and international
governmental institutions, as well as multinational organizations, such as the United Nations and
the World Bank. People living in global cities frequently have access to various political and
civic engagement opportunities, ranging from local community initiatives to global advocacy
movements. These cities tend to be dynamic and politically active, providing platforms for
public discourse and opportunities for individuals to participate in shaping the political agenda.
New York is known for its active political engagement, given its status as one of the most
populous and diverse states in the US. The state has a strong tradition of voter turnout in
elections, and its residents are often involved in political activism, demonstrations, and advocacy
on various issues. Additionally, New York City, as the largest city in the state and a global hub,
plays a significant role in shaping national and international politics.

Indicators Of Global City

A global city is an important center for global economic, political, and cultural activity. It
serves as a primary node in the global economic network. These indicators help identify and
measure the level of global influence and prominence a city has. Below are some indicators that
characterize a global city:
1. Economic Power
 Sassen remains correct in saying that economic power largely determines which cities are
global. Economic power can be described as a country's ability to improve the living standard of
its citizens. A country or people with economic power has the liberty to make decisions
concerning their welfare. Global cities are often considered economic powerhouses and are home
to major corporations and financial institutions. They have a strong economy and contribute
significantly to global trade and commerce.
Example: New York may have the largest stock market in the world but Tokyo houses
the greatest number of corporate headquarters (613 company headquarters as against
217 in New York, its closest competitor). Shanghai may have a smaller stock market
compared to New York and Tokyo, but plays a critical role in the global economic supply chain
ever since China has become the manufacturing center of the world. Shanghai has the world’s
busiest container port, moving over 33 million container units in 2013.
2. Economic Opportunities
Economic opportunity means providing an equal chance for people to earn a living wage.
Global cities offer abundant economic opportunities, attracting both local and international
businesses. They provide a favorable environment for entrepreneurship, innovation, and
investment. Economic opportunities in a global city make it attractive to talents from across the
world. Example” Since the 1970s, many of the top IT programmers and engineers from Asia
have moved to the San Francisco Bay Area to become some of the key figures in Silicon
Valley’s technology boom. London remains a preferred destination for many Filipinos
with nursing degrees.
3. Economic Competitiveness
The ability of a country to sell its products in international markets, while enjoying rising
living standards. A competitive economy is an economy whose sustained rate of productivity is
able to drive growth and, consequently, income and welfare. Global cities are known for their
competitiveness in various sectors. They have a highly skilled workforce, advanced
infrastructure, and a favorable business environment that attracts businesses and talent from
around the world. To measure the economic competitiveness of a city, The Economist
Intelligence Unit has added other criteria like market size, purchasing power of citizens, size of
the middle class, and potential for growth. Based on these criteria, “tiny “Singapore is
considered Asia’s most competitive city because of its strong market, efficient and
incorruptible government, and livability. It also houses the regional offices of many major global
corporations.
4. Center of Authority
Global cities are also centers of authority. This indicator of global city maintains the seat of
power in the country, meaning countries important political offices are located in this city.
Global cities are home to national and international government institutions, diplomatic
missions, and influential decision-making bodies. Example: Washing D.C. may not be as
wealthy as New York, but it is the seat of American state power. People around the world know
it major landmarks: White House, Capitol Building (Congress), Supreme Court, Lincoln
Memorial, and Washington Monument. Similarly, compared with Sydney and Melbourne,
Canberra is a sleepy town and thus is not as attractive to tourists. But as Australia’s political
capital, it is home to the country’s top politicians, bureaucrats, and policy advisors.
5. Political Influence
Global cities exert significant political influence on regional and global affairs. They
often play a crucial role in shaping policies, negotiating international agreements, and hosting
major political events. The cities that house major international organizations may also be
considered centers of political influence. Example: The headquarters of the United Nations is in
New York, and that of the European Union is in Brussels. An influential political city near the
Philippines is Jakarta, which is not just the capital of Indonesia, but also the location of the
main headquarters of the Association of Southeast Asia Nations (ASEAN). Powerful
political hubs exert influence on their own countries as well as on international affairs. The
European Central Bank, which oversees the Euro (the European Union’s currency), is based in
Frankfurt. A decision made in that city can, therefore, affect the political economy of an entire
continent and beyond.
6. Center of Higher Learning and Culture
Global cities are centers of knowledge and culture. They house prestigious universities,
research institutions, museums, art galleries, and cultural events. They attract scholars, artists,
and intellectuals from around the world. A city’s intellectual influence is seen through the
influence of its publishing industry. Many of the books that people read are published in places
like New York, London, or Paris. The New York Times carries the name of New York City, but
it is far from being local newspaper. People read it not just across America, but also all over the
world. One of the reasons for the many tourists visiting Boston is because they want to see
Harvard University – the world’s top university. Many Asian teenagers are moving
to cities in Australia because of the leading English-Language universities there.
Education is currently Australia’s third largest export, just behind coal and iron ore, and
significantly ahead of tourism. In 2015, the Australian government reported that it made
as much as 19.2 billion Australian dollars (roughly 14 billion US dollars) from education
alone.

To sum it up, global cities run the world. Their banks and markets finance the global
economy. Their corporate headquarters and global business services make the decisions that
shape that economy. Their universities train the global citizens of the future, while their
researchers imagine that future. Global communications radiate from global cities. These cities
have the finest orchestras and museums, the best restaurants, the latest fads. While all global
cities are cities, not all cities qualify as global cities. Global cities distinguish themselves through
their economic power, size, human capital, cultural diversity, tourism appeal, global
connectivity, locally attuned leadership, and quality of life. In short, global cities are where the
action is. It’s not a flat world out there. Rather, it’s a world of peaks and valleys. Global citizens
stand on the peaks, talking with each other over the heads of everyone else below, in the rural
hinterlands and post-industrial backwaters which the global economy has left behind. Example
of these peaks are called New York, Tokyo, London. They are one of the global cities. We
grasped what makes these cities global and what makes them different — who lives in them,
how they live and how they nurture their own citizens.

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