World Cities

Nature of world cities/Character of world cities:

World City:

Control or command centres in the network of cities around the globe.
Major financial centres, centres of prestige & distinctive lifestyles, transport & communication hubs & major tourist attractions

Financial & Business Centres:

Command & control centres for the organisation of the world economy
Centres for leading global markets in financial services such as banking & foreign exchange
Sites for most leading global markets for commodities
Sites for concentrations of corporate headquarters for TNCs, national firms & large foreign firms
Centres of high order business services associated with international activities in finance
Sites of concentrations of national & international headquarters of trade &  professional organisations
Sites of leasing non – gov organisations such as Amnesty International

Centres of prestige & distinctive lifestyles:

Centres of entertainment & cultural activity
Areas of prestige lifestyle
Areas of prestige housing, restaurants & business contacts
Attractive places to live for highly specialised workers in corporate offices

Transport & communication hubs:

Transport hubs of the world with fast air connections to other world cities & many other places
Hubs of national road & rail networks
Key locations for the most powerful & internationally significant media organisations
Concentrations for electronic exchange of information

Spatial Distribution of World Cities:

World cities can be classified according to their spatial articulations roughly in accord with the economic power they command
Most classifications subdivide world cities into a hierarch of: dominant world cities; major world cities & secondary world cities
3 cities stand out as the control centres of the global economy these are New York, London & Tokyo
These 3 cities dominate global financial articulations
Major world cities have major multinational articulations e.g Los Angeles & Paris
Secondary world cities have important national & sub national articulations e.g. Sydney & Hong Kong

Role of World Cities

Powerful centres of Economic Authority:

Economic authority of world cities includes their knowledge structures & their ability to generate, communicate & disseminate beliefs relating to economic strategies & business climate

World cities are command points in the organisation of the global economy

Headquarters for many TNCs & large national corporations
TNCs have a enormous influence on the global economy
TNCs locate production & distribution facilities to reduce costs & maximise access to global markets
World cities are headquarters for IGOs that play a major role in the global economy

E.G. WTO in New York

World cities are key locations for a full range of financial services

All major stock exchanges & future exchanges are located in world cities
New York is the major city in the world or the trading of equities & gov bonds
Computer networks have allowed the electronic trading of equities & bonds
World cities are centres for banking & associated financial services
Largest banks in the world have their headquarters in world cities
London, Tokyo, New York and Paris are major banking cities

World cities are key locations for specialised service firms which have replaced manufacturing as the leading economic sector

These firms are involved in national & international activities in finance, law, accounting, advertising, transport & tourism
World cities provide a place where people can gather information, develop networks of contacts & monitor agreements & contacts
World cities provide conditions for creativity & innovation to thrive

World cities are markets for a range of G/S

Areas of massive accumulations of wealth & high income
Purchasing power of people in world cities is extraordinary
Importance of these cities as markets is shown by patterns of concentrated retailing in high order consumer goods such as clothing & jewellery

Powerful centres of cultural authority:

World cities have a social infrastructure that facilitates contact between people to exchange information face to face & develop global social networks

World cities have office buildings, international hotels, conference centres, apartments blacks & prestige residences of distinct architectural design
Specialised land use areas where these buildings are located
Social infrastructure is supported by sophisticated transport & information systems

World cities are centres for range of cultural facilities & entertainment

They have theatres, opera houses, large entertainment centres & sports facilities
Host major cultural & sporting events ranging from art exhibitions to tennis tournaments

World cities provide the opportunity for a distinctive cultural lifestyle

Also have low income earners who have little opportunity to participate in the world class cultural & entertainment activities & facilities they provide

World cities need strong social & physical infrastructure including –

Office buildings of distinctive architectural design which convey images of power
Major international airports
Information highways to sustain their global reach
Social networks are nourished by variety of cultural & entertainment centres which cater for international, national & local events
World cities have famous centres such as Wimbledon in London
All world cities host major international cultural, entertainment & sporting events
These centres are an essential part of the built environment in world cities & are an important part of the lifestyle of the people who live & work in them

London as a world city:

London is one of the 3 main financial centres in the world
Since the Euro was implemented in 1999 it has become a major centre for Euro trading
London has a strong global position in a range of financial markets
Banking sector in the UK originates more cross border bank lending than any other country
London has 480 banks more then any other city
London had the worlds largest insurance market
London Foreign exchange market is the largest is the world with a global share of 30%
London is the largest market in the world for derivatives traded over the counter with 35% of the world turnover
London Metal Exchange is the largest in the world
London is the worlds largest fun management city
Most comprehensive range of specialist maritime services is found in London
London is the most important global centre for gold trading
Worlds gold and silver prices are fixed daily through members of the London Bullion Market Association
London has more foreign companies listed on the stock exchange than any other city
London is a major centre for the International bond market
London is a world centre for professional & business services

Operation of Global Networks:

Globalisation & global networks like airlines, telecommunication & non – voice transfer of information have reinforced the dominant roles of world cities

The Global Airline Network –

Information on global airlines flows readily and is available & accurate
As people move & interact they bring with them information which is often not available from any other source
London, New York & Tokyo play a dominate role as airline hubs
Air transport is the preferred mode of travel for TNCs , other businesses & gov professionals
Air transport networks are the most visible manifestations of world city interaction

Telecommunication Networks –

Telecommunication networks were revolutionised by satellites
By the end of the 20th century there were 200 functioning satellites in orbit each capable of carrying tens of thousands of phone calls & several TV signals at once
Low orbit satellites have created a comprehensive global satellite telephone network
New York & London receive & make the most telephone calls

Non – Voice Transfer System –

Traditional postal services still carry vast amounts of information in & between world cities
Electronic mail a fast & reliable way of transferring information operates through the international network of telecommunication systems
In world cities more information is transferred by e- mail then by postal mail

Relationships of dominance and dependence between world cities

Three Dominant World Cities:

New York, London & Tokyo are recognised as the dominant world cities
These cities have disproportionate concentration of top level headquarters of finance, industrial commercial and producer service sectors
Large industrial TNCs that account for 70% of trade have their headquarters in these cities
Expansion of global financial industry over last 20yrs has increased the global significance of New York, London & Tokyo
Main financial transactions in shares, bonds, loans & foreign exchange are dominated by these 3 cities

Person to person information:

Increased need among decision makers operating on a global scale to have access to private information that can only be obtained through person to person interaction
Great financial cities can provide information not available in electronic form
In global financial decisions person to person information is important as it is only available to a small group of people

Global systems of world cities:

New York, London & Tokyo are dominant cities in the 3 main cores of world cities
North America  core is the integrated economies of the USA & Canada
These countries are strongly independent but close politically
Western European core is mainly countries of the EU which are highly integrated economically & loosely integrated politically
Western Pacific core has little economic or political integration even tho there are increasingly close economic ties in this area

World cities and other cities:

In the US New York is the dominant world city with a group of world cities that have dependence on it especially for financial transactions
New York is different to Tokyo and London & its not the centre of political power for its own nation state
New York is dependent on Washington for major national & global political functions
Other world cities in the US such as Boston are also politically dependent on Washington

Changing role of regional centres & the demise of small towns

Role of metropolitan centres:

Large metropolitan centres such as London & Sydney have a complex set of functions
They range from economic activities such as wholesaling to activities like education
On a national scale the major decisions affecting social & economic change are made in metropolitan areas
Urban centres are areas where ideas & innovation are diffused throughout a nation
Masses of people, pace of daily life, cosmopolitan nature of the city, urgency to achieve & flow of G/S act as stimulants to the cultural creativity & change that makes the modern city a diverse & dynamic place
Metropolitan areas perform complex social & economic functions for smaller urban places & rural areas in their general vicinity
Area influenced by town or city known as hinterland
Metropolitan hinterlands vary greatly in size & shape depending on the type of services provided

Regional Cities:

Within a nation a hierarchy of cities & towns develops closely related to the function of each settlement
Further down the hierarchy the smaller no. of functions & the smaller the hinterlands
In NSW a national city is Sydney and regional cities include Tamworth & Dubbo
The Hinterland towns of Dubbo are Wellington, Coonable & Narromine
Small downs associated with Dubbo include Dunedoo and Peak Hill

Dubbo as a Regional City:

Pop 31000
Located on the Western Slopes of NSW
400km North West of Sydney
Began as a small settlement on the banks of the Macquarie River serving as a river crossing & a central place for its rural hinterland
Dubbo has grown rapidly at the expense of small towns because it made full use of its natural advantages

Natural Advantages of Dubbo:

Located at the crossroads of Newell Highway and Mitchell Highway
Intersection of 2 rail routes
In the middle of an area of prosperous farming & grazing
Dubbo has been able to transform these advantages into economic growth
Dubbo has est itself as a generalist centre
Dubbo plays prominent part within the local economy
Dubbo has linked with national processes and markets to foster growth

E.G.

Sheep for the abattoir come from a no. of states
Traffic along the Newell highway has made the city a transport centre of national significance
Location of the Western Plains zoo

Dubbo is not a specialist centre for any one industry

Half the workforce is employed in wholesale and retail activities & community services
10% of workers are employed in financial services
Abattoir is largest employer employing 700 people
There are 34 motels servicing tourists and business people

Dubbo performs a no.  of roles & its continuing ability to encompass a no. of functions will result in further growth

Demise of Small Towns:

Developments in transport and communication made it difficult for small towns & villages with limited functions & pop to survive
Widespread ownership of cars in developed nations made people increasingly mobile & prepared tot travel long distances to buy G/S
Development of communications including e- commerce made it possible for people in small towns to have access to immediate information from all around the world
Resulting in tendency for people to purchase G/S globally
Declining returns from agricultural production reduced incomes of rural households relative to those in large booming cities

E.G.

1950 – 60s Dubbo developed a system of sealed roads.
This increased the distance people were prepared to travel to buy G/S which meant by – passing small local towns & going to larger towns like Dubbo
As regional cities like Dubbo have grown smaller towns have declined
Locals of small shop and use services in regional centres
This causes shop and job opportunities to leave small towns
This causes pop to decline & accelerates the loss of essential infrastructure such as banks & hospitals
Bank closures make it difficult for other services to survive
Hospital closures & loss of doctors & pharmacies result in older people retiring to larger regional centres

These losses have strong Impact:

Pop drops below threshold
People in all age groups gradually leave small towns

E.G. 1991 – 1996 Pop of Dunedoo fell from 829 to 781 while Dubbo’s pop grew by 2000 people.