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Global Cities: An Introduction

Global Cities: An Introduction. Necessary characteristics CULTURAL Multi-cultural and multi-community (in the West) First-name familiarity World-renowned cultural institutions (museums, universities) Global “spectacle” events Lively cultural scene Traditional Creative-class

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Global Cities: An Introduction

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  1. Global Cities: An Introduction Necessary characteristics CULTURAL Multi-cultural and multi-community (in the West) First-name familiarity World-renowned cultural institutions (museums, universities) Global “spectacle” events Lively cultural scene Traditional Creative-class Media power (BBC, Reuters, ABC, CNN, etc..) NYC’s Times Square

  2. Necessary characteristics (cont.) POLITICAL-DEMOGRAPHIC Active influence in global events (UN in NYC) Large population (>10m)

  3. Necessary characteristics (cont.) INFRASTRUCTURAL International airport International port Advanced communications hub Advanced multi-modal transport

  4. Necessary characteristics (cont.) ECONOMIC Fortune 500 Stock Market TNC corporate headquarters Financial Services Producer Services Innovation/patents

  5. INTRODUCTORY TERMS/CONCEPTS GEOGRAPHY OF THE WORLD ECONOMY ECONOMIC CORE ECONOMIC SEMI-PERIPHERY ECONOMIC PERIPHERY

  6. ECONOMIC CORE GDP per capita, >$20,000 Disproportionate share of TNC headquarters Disproportionate share of economic decision-making authority

  7. ECONOMIC PERHIPHERY GDP per capita, <$4,000 Very few (or even none) TNC headquarters Very little decision-making authority

  8. ECONOMIC SEMI-PERIPHERY THE B.R.I.C. countries

  9. GDP, per capita

  10. HDI

  11. FDI

  12. KONDRATIEV WAVE

  13. VERTICAL INTEGRATION One company owns the entire “productive process” Steel industry in the late 19th and early 20th centuries Some large petro companies today McDonald’s owning the potato fields

  14. HORIZONTAL INTEGRATION Large company owns one tiny “slice” of the productive process, but many different slices Ex. The Fox Empire, other media empires

  15. FORDIST vs. POST-FORDIST

  16. FORDISM refers to…an economic system (aka “a mode of production”) based on the following: Large-scale production Standardization of parts Assembly line Mass production is coupled with mass consumption

  17. POST-FORDISM (similar to Kandan) Product differentiation Niche marketing Slow decline of mass consumption towards “niche consumption” Small, flexible factories Flexible labor (lack of unions) Flexible supply chains

  18. First Reading; “World cities in a world system” Difference between.. (1) the international system (2) the global system Trade is closely regulated by states Trade is now loosely regulated by states Thus, “states” are becoming less important, and cities are becoming more important as the sites of control

  19. Like the Hanseatic League: i.e., cities are again becoming the leading “control points”

  20. Globalization is “stealthier” Globalization is “harder to see, and read” Example: one Pontiac le Mans $20,000 is the sticker price $7,600 goes to Americans (workers and management in Detroit) Of the remaining $12,400 48% goes to South Korea (labor assembly) 12% goes to Germany (styling and design) 7% to Taiwan and Singapore (small components) 4% to UK (marketing) 1% to Ireland and Barbados (data processing)

  21. Three main components to this new form of globalization • (1) globalization of industry • (2) globalization of finance • (3) globalization of culture/cultural flows

  22. (2) Globalization of finance • Accelerated by telematics and government deregulation • Main aspects are the emergence of transnational banks, and 24-hour global trading in capital and securities.

  23. (3) culture: Global metropolitanism and the “fast world”. • In addition, global cities are becoming sites for the articulation of a new “culture” • It’s transtional • Even postnational • Materialistic • Secular

  24. So, what then, is a “global city”? • They are the “control points” in this new transnational economy • They are the powerful centers of economic and cultural authority • The nexus of decision-making • They generate and disseminate ideas and innovations, and provide sociable settings for the gathering of high-level information.

  25. Globalization and the City: CHICAGO/MILWAUKEE case study The emergence of the “New Spatial Division of Labor” *(1) Production has been decentralized to the global periphery *(2) “Command centers” have emerged in a few key places we call “global cities”.

  26. Consequences Logic of decentralization (what has been decentralized from Milwaukee?) Loss of manufacturing jobs

  27. Where have these jobs gone? The suburbs Low-cost areas in already rich countries Low-cost areas in the “global periphery” Made obsolete by tech. change

  28. Logic of Centralization (What’s been centralized in CHICAGO?) FDI (52,000 jobs in 2001, a jump of 210% since 1980 Massive growth in PS (producer services) jobs Chicago has emerged as a node of specialized knowledge (268,000 jobs in 2001), increase of 250% during the same time HIGH-Tech – internet/communications hub (200,000 technology workers In sum: Chicago is no longer a heavy-weight manufacturing center, but rather it has emerged as a node of specialized knowledge and a communications hub in service of the global economy

  29. Globalization and the City: CHICAGO/MILWAUKEE case study The emergence of the “New Spatial Division of Labor” *(1) Production has been decentralized to the global periphery *(2) “Command centers” have emerged in a few key places we call “global cities”.

  30. Consequences Logic of decentralization (what has been decentralized from Milwaukee?) Loss of manufacturing jobs

  31. Where have these jobs gone? The suburbs Low-cost areas in already rich countries Low-cost areas in the “global periphery” Made obsolete by tech. change

  32. The new “spatial division of labor” has been particularly brutal for Milwaukee, as it was so DEPENDENT on manufacturing, and… • It’s too small to benefit from any “command center” status • Amounts to an ECONOMIC DEPRESSION in the central city, where upwards of 50% of black adult men are unemployed.

  33. Economic Decline and Race • MKE’s black male employment rate plummeted by 21 percentage points since 1970 • 1970, black poverty rate was 22% lower than US average; in 2000, it was 34% above the US average • 1970, median family income was 19% than US average; in 2000 it was 23% lower • 1970, 43% of black Milwaukeeans worked as industrial laborers • Only Detroit had a higher percentage • Since 1970, the city has lost 2/3 of it’s industrial employment

  34. Race and Gender and Economic Decline • Women have faired better • For every 7 black men that hold a job, there are 10 black women • College-educated African-Americans leave the metro in large numbers

  35. Race, Geography, and Economic Decline • In 2000, 75% of all industrial jobs are located in the distant suburbs • This represents a dramatic reversal since 1960s, when over 60% were located in central city

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