World Cities in a World World Cities in a World SystemSystem

What makes our distanciated life What makes our distanciated life possible?possible?

Connections!Connections!

……between the between the cyborg and the cyborg and the worldworld……between between disembodied disembodied interaction and interaction and embodied lifeembodied life……between more between more and less and less connected connected populationspopulations

Our sense of Our sense of being being connected to networksconnected to networks, , our our mobilitymobility, and our, and our involvement with other involvement with other placesplaces depend on the depend on the existence of certain existence of certain core core locationslocations that create a that create a global economy and help itglobal economy and help it call into existence the call into existence the technologies it needstechnologies it needs

Walter Christaller’s concept of the Walter Christaller’s concept of the central place system (1933)central place system (1933)

Melvin Webber’s concept of the Melvin Webber’s concept of the “nonplace urban realm” (1964)“nonplace urban realm” (1964)

Do we inhabit a “space of places” Do we inhabit a “space of places” (M. Castells)(M. Castells)

or a “space of flows” or a “space of flows” (M. Castells)(M. Castells)

BOTHBOTH

a global network of connections a global network of connections that supports flows of capital, that supports flows of capital, information, people & goodsinformation, people & goods

There are many ways to rank or There are many ways to rank or prioritize world citiesprioritize world cities

source: Paul Knox, “World Cities in a World-System” (1995)

Global Cities as Control PointsGlobal Cities as Control PointsGlobal capital flows are channeled through Global capital flows are channeled through particular locations Knox calls particular locations Knox calls “technopoles”“technopoles”These These world citiesworld cities become increasingly powerful become increasingly powerful headquarters of TNCsheadquarters of TNCs producer servicesproducer services

financefinanceadvertising & telecommunicationsadvertising & telecommunicationsinformation processinginformation processinglegal services & consultinglegal services & consulting

All countries gradually lose control over human All countries gradually lose control over human welfare, capital flows, culture, and informationwelfare, capital flows, culture, and informationPoor countries fare the worst in this regardPoor countries fare the worst in this regard

Moving deeper …Moving deeper …

World cities exert control overWorld cities exert control over economic power (capital)economic power (capital) cultural power (influence)cultural power (influence) political power (threat)political power (threat)

Historical contextHistorical context Cities originally controlled all of these, Cities originally controlled all of these, plus military powerplus military power Later (18Later (18thth – mid 20 – mid 20thth c.) states controlled all of these c.) states controlled all of these states still wield military power, but other forms of power are states still wield military power, but other forms of power are

increasingly controlled from “above” or “below” the stateincreasingly controlled from “above” or “below” the state

The city’s role is increasing againThe city’s role is increasing again

first focus:first focus: capital flows & capital flows & economic powereconomic power

Transnational Capital FlowsTransnational Capital Flows

Transnational financial flows (some Transnational financial flows (some illustrations): illustrations): loansloans from World Bank & International from World Bank & International

Monetary Fund (IMF) (about $30 billion/yr.)Monetary Fund (IMF) (about $30 billion/yr.) remittancesremittances to families (over $100 billion/yr.) to families (over $100 billion/yr.) direct foreign investmentdirect foreign investment (over $1 trillion/yr.) (over $1 trillion/yr.) currency tradingcurrency trading (Dollars, Euros, etc.) (Dollars, Euros, etc.)

(over $657 trillion/year; an amount equal to (over $657 trillion/year; an amount equal to the entire U.S. GDP changes hands every 5 the entire U.S. GDP changes hands every 5 days!)days!)

Transnational Capital FlowsTransnational Capital FlowsTNCsTNCs also link many countries through their also link many countries through their branches, subsidiaries, alliances, and contractsbranches, subsidiaries, alliances, and contracts less than 50% of the sales price of a typical American less than 50% of the sales price of a typical American

car goes to Americans:car goes to Americans:workers & management in Detroitworkers & management in Detroitlobbyists in Washingtonlobbyists in Washingtonlawyers & bankers in New Yorklawyers & bankers in New Yorkstockholders around the countrystockholders around the country

rest to foreign workers for parts, assembly, data rest to foreign workers for parts, assembly, data processingprocessing

tourismtourism now accounts for $500 billion in global now accounts for $500 billion in global revenues (employs 11% of global workforce)revenues (employs 11% of global workforce) Five nations (the US, Japan, Germany, France and the Five nations (the US, Japan, Germany, France and the

UK) account for almost half of all tourist spendingUK) account for almost half of all tourist spending

1.1. American Stock ExchangeAmerican Stock Exchange2.2. American Venture Capital American Venture Capital

ExchangeExchange3.3. Athens Stock ExchangeAthens Stock Exchange4.4. Australian Stock ExchangeAustralian Stock Exchange5.5. Beirut Stock ExchangeBeirut Stock Exchange6.6. Bermuda Stock ExchangeBermuda Stock Exchange7.7. Bogota Stock ExchangeBogota Stock Exchange8.8. Budapest Stock ExchangeBudapest Stock Exchange9.9. ChicagoChicago Board of Options Board of Options

ExchangesExchanges10.10. ChicagoChicago Board of Trade Board of Trade11.11. Chicago Chicago Mercantile ExchangeMercantile Exchange12.12. ChicagoChicago Stock Exchange Stock Exchange13.13. Coffee Sugar Cocoa Coffee Sugar Cocoa

ExchangeExchange14.14. Dow JonesDow Jones15.15. Helsinki Stock ExchangeHelsinki Stock Exchange16.16. Hollywood Stock ExchangeHollywood Stock Exchange17.17. Hong KongHong Kong Futures Exchange Futures Exchange18.18. Hong KongHong Kong Stock Exchange Stock Exchange19.19. Hong KongHong Kong Securities & Securities &

Futures CommissionFutures Commission21.21. IndevEXIndevEX22.22. India National Stock India National Stock

ExchangeExchange

21.21. Jakarta Stock ExchangeJakarta Stock Exchange22.22. Korea Stock ExchangeKorea Stock Exchange25.25. Kuala Lumpur Stock Kuala Lumpur Stock

ExchangeExchange26.26. Les EchosLes Echos27.27. Ljubljanska Borza Stock Ljubljanska Borza Stock

ExchangeExchange28.28. LondonLondon International International

Financial Futures and Options Financial Futures and Options ExchangeExchange

29.29. LondonLondon Metal Exchange Metal Exchange30.30. Madrid Stock ExchangeMadrid Stock Exchange31.31. Mexican Stock ExchangeMexican Stock Exchange32.32. MidAmerica Commodity MidAmerica Commodity

ExchangeExchange33.33. Montreal ExchangeMontreal Exchange34.34. Nagoya Stock ExchangeNagoya Stock Exchange35.35. NASDAQNASDAQ36.36. New YorkNew York Cotton Exchange Cotton Exchange37.37. New YorkNew York Mercantile Mercantile

ExchangeExchange38.38. NYSENYSE New York Stock New York Stock

ExchangeExchange39.39. Oslo Stock ExchangeOslo Stock Exchange40.40. Pacific Exchange Stock & Pacific Exchange Stock &

OptionsParis Futures OptionsParis Futures Exchange (MATIF)Exchange (MATIF)

41.41. Paris Stock Market (SBF)Paris Stock Market (SBF)42.42. Philadelphia Stock Philadelphia Stock

ExchangeExchange43.43. Singapore International Singapore International

Monetary Exchange Monetary Exchange (SIMEX)(SIMEX)

44.44. South Africa Futures South Africa Futures ExchangeExchange

45.45. Spanish Futures Exchange Spanish Futures Exchange (MEFF)(MEFF)

46.46. Stockholm Options Stockholm Options Market (OM)Market (OM)

47.47. Stockholm Stock Stockholm Stock ExchangeExchange

48.48. Sydney Futures ExchangeSydney Futures Exchange49.49. Taiwan Stock ExchangeTaiwan Stock Exchange50.50. Tel Aviv Stock Exchange Tel Aviv Stock Exchange

LTDLTD51.51. Thailand Stock ExchangeThailand Stock Exchange52.52. TokyoTokyo Grain Exchange Grain Exchange53.53. TokyoTokyo International International

Financial Futures Financial Futures ExchangeExchange

54.54. TokyoTokyo Stock Exchange Stock Exchange55.55. U.S. Securities and U.S. Securities and

Exchange CommissionExchange Commission56.56. Vancouver Stock Vancouver Stock

ExchangeExchange57.57. Winnipeg Commodity Winnipeg Commodity

ExchangeExchange58.58. Zagreb Stock ExchangeZagreb Stock Exchange

Global Stock Exchanges accessible online (http://www.dotcomstockexchange.com)

WHO WHO INITIATES INITIATES TRADE?TRADE?

STATE STATE CONTROL OVER CONTROL OVER TRANS-BORDER TRANS-BORDER FLOWSFLOWS

INTERNATIONALINTERNATIONAL

ERA ERA (1800s - 1980)(1800s - 1980)

individuals & individuals & firmsfirms

strongstrong

GLOBAL ERAGLOBAL ERA(1980 - PRESENT)(1980 - PRESENT)

““oligopolistic oligopolistic web of global web of global corporate corporate networks” networks” (Knox)(Knox)

weakweak

ParadoxParadox

A distanciated lifestyle depends on a set of A distanciated lifestyle depends on a set of locations that finance and direct its creationlocations that finance and direct its creation

Cyborgs may be more “placeless” than pre-Cyborgs may be more “placeless” than pre-technological people, but they depend on a fixed technological people, but they depend on a fixed system that centers power and money in certain system that centers power and money in certain placesplaces

What are some potential problems with this?What are some potential problems with this?

second focus:second focus: culture culture

What do you see?What do you see?

What do you see?What do you see?

Steeple architecture as symbol of

the sacred high structure “points

toward heaven” overcomes distance

between life on earth and religious ideals

Cell phone tower architecture as

infrastructure height as means of

increasing reception range high structure overcomes

distance from other people

What do you see?What do you see?

SYMBOL/SIGNAL strong cultural coherence

and stability strong sense of place strong sense of community

SIGN TRANSMITTER cultural instability leads to

relativism, “anything goes” philosophy

lack of attachment to place discourages stewardship and care

place-based community, at least, is weakened

There are many ways to rank or There are many ways to rank or prioritize world citiesprioritize world cities

source: Paul Knox, “World Cities in a World-System” (1995)

Moving deeper …Moving deeper …World cities exert control over:World cities exert control over:

various flows (in Arjun Appadurai’s terms)various flows (in Arjun Appadurai’s terms)ethnoscapesethnoscapestechnoscapestechnoscapesfinancescapesfinancescapesmediascapesmediascapesideoscapesideoscapes

One aspect of difference between world cities is their One aspect of difference between world cities is their different levels of involvement in these different types of different levels of involvement in these different types of power and flowspower and flows

e.g. Tokyo: least cultural impacte.g. Tokyo: least cultural impact London and Tokyo are national capitals, while New York is notLondon and Tokyo are national capitals, while New York is not Paris & Brussels lead in NGOs & IGOsParis & Brussels lead in NGOs & IGOs

third focus:third focus: human mobility human mobility

In the space of air-transport, what In the space of air-transport, what city is the “center” of Africa?city is the “center” of Africa?

In the space of air-transport, what In the space of air-transport, what city is the “center” of South America?city is the “center” of South America?

What kind of city is MiamiWhat kind of city is Miamiin the world system?in the world system?

introducing the introducing the “gateway city”“gateway city”

An ethnic turnover …An ethnic turnover …

The most striking ethnic The most striking ethnic transformation of any major transformation of any major

U.S. cityU.S. city

Segments of the Hispanic Segments of the Hispanic populationpopulation

What is behind this transformation?What is behind this transformation?

Miami has become a gateway cityMiami has become a gateway city Latin America’s gateway to the U.S.Latin America’s gateway to the U.S. U.S.’s gateway to Latin AmericaU.S.’s gateway to Latin America shopping, investment, air traffic, immigration, tourism, etc.shopping, investment, air traffic, immigration, tourism, etc.

Miami is the Latin American capital of the U.S.Miami is the Latin American capital of the U.S. 60% of Miami’s population does not speak English at home60% of Miami’s population does not speak English at home

(a higher percentage than NY, Chi. or LA)(a higher percentage than NY, Chi. or LA) 45% of Miami’s population was born outside the U.S. (again 45% of Miami’s population was born outside the U.S. (again

highest)highest) best business climate for Hispanic owned businesses in the U.S.best business climate for Hispanic owned businesses in the U.S. an established middle and upper class population (from early an established middle and upper class population (from early

Cuban immigration, 1930s, 1950s) facilitatedCuban immigration, 1930s, 1950s) facilitated immigration immigration and and in-in-migrationmigration by Mexicans, C. Americans, S. Americans, and by Mexicans, C. Americans, S. Americans, and CaribbeansCaribbeans

source: T.D. Boswell & J.R. Curtis “The Hispanization of Metropolitan Miami” (1991)source: T.D. Boswell & J.R. Curtis “The Hispanization of Metropolitan Miami” (1991)

Miami as a center for Miami as a center for producer servicesproducer services

in terms of the in terms of the numbers of people employednumbers of people employed, , Miami’s producer services sector is not Miami’s producer services sector is not impressive:impressive: 1/6 the size of New York’s1/6 the size of New York’s 1/5 the size of Los Angeles’1/5 the size of Los Angeles’ 1/3 the size of Chicago’s1/3 the size of Chicago’s

In terms of it’s In terms of it’s share of the local labor forceshare of the local labor force, , Miami’s producer services sector is:Miami’s producer services sector is: about the same as Chicago and Los Angeles (20%) about the same as Chicago and Los Angeles (20%) still somewhat lower than New York (which is at 30%)still somewhat lower than New York (which is at 30%)

As a As a nodenode in international in international commodity flows, Miami has:commodity flows, Miami has:

the 2the 2ndnd busiest airport in the U.S. (118 direct busiest airport in the U.S. (118 direct foreign destinations, only 70 direct U.S. foreign destinations, only 70 direct U.S. destinations)destinations) more foreign airlines than any airport in the worldmore foreign airlines than any airport in the world 3 times as many air courier companies as in New 3 times as many air courier companies as in New

York CityYork City more than 1/3 of all U.S. trade with Latin Americamore than 1/3 of all U.S. trade with Latin America greatest tonnage of air cargo shipments in the U.S.greatest tonnage of air cargo shipments in the U.S.

the 4the 4thth largest concentration of foreign banks in largest concentration of foreign banks in the U.S.the U.S.winter clothes in the mallswinter clothes in the malls Why?Why?

source: J. Nijman “Breaking the Rules: Miami in the Urban Hierarchy” 1996source: J. Nijman “Breaking the Rules: Miami in the Urban Hierarchy” 1996

Concluding QuotesConcluding Quotes““Globalization affects the institutions and structures of Globalization affects the institutions and structures of society, from multi-national corporations to the range of society, from multi-national corporations to the range of opportunities and lifestyles available to different opportunities and lifestyles available to different individuals.”individuals.”““One common model of globalization is as a wave of One common model of globalization is as a wave of change sweeping away local distinctiveness. … change sweeping away local distinctiveness. … However, more critical views of globalization However, more critical views of globalization acknowledge more complex relationships between the acknowledge more complex relationships between the global and the local. The city is not simply a passive global and the local. The city is not simply a passive recipient of global processes. Processes flow from the recipient of global processes. Processes flow from the city to the global as much as from the global to the city.”city to the global as much as from the global to the city.”

Both from: J.R. Short, C. Breitbach, S. Buckman and J. Essex, “From World Both from: J.R. Short, C. Breitbach, S. Buckman and J. Essex, “From World Cities to Gateway Cities”Cities to Gateway Cities”

Concluding QuestionsConcluding Questions

Would you prefer to live & work in a global Would you prefer to live & work in a global city, a gateway city, or somewhere else?city, a gateway city, or somewhere else?

Will the city eventually go extinct or evolve Will the city eventually go extinct or evolve into something else?into something else?