The Global City: New York, London, Tokyo - Chapter Summary
The Global City: New York, London, TokyoBy: Saskia Sassen• Part 1: The Geography and Composition of Globalization• Part 2: The Economic Order of the Global City• Part 3: The Social Order of the Global City• In Conclusion: A New Urban Presented by: Dan Berkowitz Regime?
DefinitionsGlobal Economy Internationalization“A global economy is one “the act of bringingwhose strategic coreactivities, including something underinnovation, finance and international control”corporate management,function on a planetary Princeton WordNetscale on real time” SearchCarnoy 1999
Trends of the New Industrial Complex (NIC)EconomicActivities Shift from Production to Finance International Financial Market surpassing Direct Foreign Investment US, Japan and UK function as a single marketplace
Major Cities andGlobalization of Economic ActivitiesThesis and HypothesisCentral Increase of Hypothesis Spatial dispersionThesis Globalization of Production Concentration of Reorganization of Economic Control Financial Industry Management and New Forms of control of global Centralization finance and servicing network
Other Questions CoveredHow has globalization of economicactivities affected urban hierarchies andsystems which are based on nationallocation?How durable is an economic systembased on management, services andfinancial industry?How durable are the spatial results ofthis system that requires high density,high agglomeration and high real estateprices and competition?
Impact of the NIC on City’s Socio- Economic Structure1. Highly competitive 5. Post WWII growth based on economic environment manufacturing for mass2. Firms cut production consumption costs and slash all Suburbanization, social social wage for workers provisioning, expansion of infrastructure3. Growth dependent on a weak national economy 6. Current growth based on and the decline of international market and national manufacturing consumption by firms and industry governments4 Socio-economic Polarization
Socio-Economic ResultsBenefactors of the NICProfessionals, managers, brokersWork harder, less job stability, getpaid less than typical upper classNew cosmopolitan & global workcultureNew perspective of the good life:art, luxury consumption, antiques,cuisine, designer labels, converteddowntown loftsDINK lifestyle clash withtraditional post-WWII middle class
Sample list of FirmsLehman Brothers Holdings Inc.,JPMorgan Investment Bank,Goldman Sachs GroupSumitomo Trust and Banking Co. Ltd.Bank of Tokyo-MitsubishiKBC Financial ProductsCitigroup Inc. (New York and London)HSBC Holdings (New York and London)Deloitte Touche Tohmatsu (New York and London)Business Development Asia (investment banking firm in NYC, London, Tokyo,etc.)
In Conclusion 1. Cities have become command points of world economy 2. Cities work together to fulfill integrated economic tasks 3. New Global cities replace the industrial/regional complex of cities 4. New Class alignment, new norms of consumption, and less centrality of public goods and the welfare state