SYSTEMS PLUS COLLEGE

College of ArtsFOUNDATION
and Social Sciences and Education

THE
Contemporary world

MODULE #8

PREPARED BY: Brian duela

SUBJECT: CCW EMAIL ADDRESS: brian_duela@spcf.edu.ph

Introduction
The contemporary world is an ever-changing mix of social and political changes. While religious,
political, and ethnic conflicts continue, we are currently living in one of the most peaceful eras in
the history of the planet. Challenges of the 21st century include emerging technologies, health care,
overpopulation, climate change, poverty, illiteracy, disease, and migration. How we choose to deal
with these emerging frontiers will shape this unit for future generations. 1

Unit 2: A World of Ideas: Cultures of Globalization

This unit focuses on how the globalization structures discussed in Unit 1 affect various form of
cultural life. “Culture” is used here in the broadest possible sense, referring to the daily practices of
people. Thus, if the first unit focused on a “large” form of globalization, this unit will zero in on
everyday globalizations in the realms of religion, culture and city life.

Major learning outcome of this unit:

1. To explain the role of global processes in everyday life.

Lesson 8: The Global City

Learning outcomes:
1. Explain why globalization is a spatial phenomenon;
2. Identity the attributes of a global city; and
3. Analyze how cities serve as engines of globalization.

Each phase in the long history of the world economy raises specific questions about the
particular conditions that make it possible. One of the key properties of the current phase is the
ascendance of information technologies and the associated increase in the mobility and liquidity
of capital. There have long been cross-border economic processes—flows of capital, labor,
goods, raw materials, and tourists. But to a large extent these took place within the inter-state
system, where the key articulators were national states. The international economic system was
ensconced largely in this inter-state system. This has changed rather dramatically over the last
decade as a result of privatization, deregulation, the opening up of national economies to
foreign firms, and the growing participation of national economic actors in global markets. 2

If you had a chance, would you move to New York or Tokyo? Chances are many of you would
like to move to these major cities. And if not you would probably like to visit them anyway.
Some of you might have already travelled to these cities as tourists or temporary residents. Or
maybe you have heard stories about them. You may have relatives living there who have
described buzzing metropolises, with forests of skyscrapers and train lines that zigzag on top of
each other. You may likewise have an idea of what these cities look like based on what you
have seen in movies or TV.
1
https://www.freeman-pedia.com/today/
2
https://www.bbvaopenmind.com/en/articles/the-global-city-introducing-a-concept/
SUBJECT: CCW EMAIL ADDRESS: brian_duela@spcf.edu.ph
Not all people have been to global cities, but most know about them. Their influence extends
even to one’s imagination. What are these places? Why are they important? And how are they
relevant to you?

A. Why Globalization is spatial?

So far, much of the analysis of globalization in the previous lessons has looked at how ideas or
internationalism shaped modern world politics. We also examined cultural movements like K-
pop and how they spread through media like internet. What this lesson will emphasize,
however, is that globalization is spatial. This statement means two things:

Spatial is relating to, occupying, or having the character of space or

pertaining to or involving or having the nature of space.

1. Globalization is spatial because it occurs in physical spaces.

Foreign investments and capital move through a city, and when companies build
skyscrapers. People who are working in these business start to purchase or rent high-rise
condominium units and better homes. As all these events happen, more people are
driven out of city centers to make way for new development.

2. Globalization is spatial because what it makes it move is the fact that it is

based in places.
Los Angeles, the home of Hollywood, is where the movies are made for global
consumption. The main headquarters of Sony is in Tokyo, and from there the company
coordinates the sales of its various electronics goods to branches across the world. In
other words, cities act on globalization and globalization acts on cities. Cities especially
GLOBAL CITY are the sites as well as the medium of globalization as well as they enables
and shapes global forces.

In the years to come, more and more people will experience globalization through the cities. In
1950, only 30% of the world lived in urban areas, by 2014, that number increased to 54%. And
by 2050, it is expected to reach 66%.

B. Definition of Global Cities

SUBJECT: CCW EMAIL ADDRESS: brian_duela@spcf.edu.ph
 Global Cities are the sites and mediums of globalizations. They are, therefore, material
representations of the phenomenon. We can see the best of globalization; they are places
that create exciting fusion of culture and ideas. They are also places that generate
tremendous wealth. However, they remain sites of great inequality, where global servants
serve global entrepreneurs.
Global city is a city that plays a significant role in the global economic system. They portray
the economic, social, and political state of the country and its people.
The term “GLOBAL CITY” was popularized by Sociologist Saskia Sassen. Her criteria for
what constitutes a global city were primarily economic. She identified three (3) global cities:
New York, London and Tokyo, all of which are hubs of global finance and capitalism. They
are homes, for instance, of the world largest stock exchange where investors buy and sell
shares in major corporations. New York has New York Stock Exchange (NYSE), London has
the Financial Times Stock Exchange (FTSE) and Tokyo has the Nikkei. The amount of money
traded in these markets is staggering.
The global economy has changed significantly since Sassen wrote her book, and any account
of the economic power of cities today must take note of the latest developments.Recent
commentators expanded the criteria that Sassen used to determined what constitutes a
global city because of latest developments, therefor it is not only the status of the economy
of a certain city to be considered global city. For example Los Angeles is considered global
city because of cultural influence. San Francisco is now considered global city because it is
the home of the most powerful internet based companies. Some cities in China like
Shanghai, Beijing and Guangzhou are also considered global city because they are centers of
trade and finance of growing economy of china.
Others consider cities “global” simply because they are great places to live in. In Australia,
Sydney commands the greatest proportion of capital. However, Melbourne is described as
Sydney’s global rival because it is referred to as the “world livable city” –a place with good
public transportation, a thriving cultural scene and a relatively easy pace of life.

C. Indicators for Globality

Characteristics of Global City

1. Economic power

New York may have the largest stock market in the world but Tokyo houses the most
number of corporate headquarters. 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.

SUBJECT: CCW EMAIL ADDRESS: brian_duela@spcf.edu.ph

 Economic opportunities in a global city make it attractive to talents from across the
world. Since the 1970s many of the top IT programmers and engineers form Asia have
moved to the San Francisco Bay Area to become of the key figures in Silicon Valley’s
technology boom. London remains a preferred destination for many Filipinos with
nursing degrees.

To measure the economic competitiveness of a city, The Economist Intelligence Unit

has added criteria like market size, purchasing power of the citizens, size of the middle
class and potential for growth. Based from these criteria, “tiny” Singapore is considered
Asia’s most competitive city because of its strong market, efficient and incorruptible
government and livability. Is also a house the regional offices of many major global
corporations.

2. Center of authority

Center of authority is also center for political influence, a decision in that

city can, therefore, affect the political of entire continent and beyond.

Washington D.C. may not be wealthy as New York, but it is the seat of American state
power. People around the world know its major landmarks: the White House, The
Capitol Building (Congress), the Supreme Court. Similarly, compared with Sydney and
Melbourne, Canberra is a sleepy town and thus is not as attractive to tourist. But as
Australia’s political capital, it is home to the country’s top politicians, bureaucrats and
policy advisors.

The cities that house major international organization may also be considered centers
for political influence.

New York – headquarters of the United Nations

Brussels –headquarters of European Union
Jakarta –location of main headquarters of ASEAN

Powerful political hubs exert influence on their own countries as well as international
affairs. The European Central Bank, which oversees the Euro, is based in Frankfurt. A

SUBJECT: CCW EMAIL ADDRESS: brian_duela@spcf.edu.ph

 decision made in that city can, therefore, affect the political economy of an entire
continent and beyond.

3. Center of higher learning and culture

A city’s intellectual influence is seen through the influence of its publishing industry.
Many of its books that people read are published in places like New York, London or
Paris. The New York Times carries the name of the New York City, but is far from being
a local newspaper. People read it not just across the 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. Many Asians are moving to cities in Australia because of the
leading English-language universities there. Education is Australia’s third largest export.
In 2015, the Australia government reported that it made as much as 19.2 billion
Australian dollars form education alone.

D. The Challenges of Global Cities

Global cities conjure up images of fast-paced, exciting cosmopolitan lifestyle. Global cities
also have undersides. They can be site of (1) great inequality (2) poverty and (3)
tremendous violence. Like the broader process of globalization, global city create winners
and losers.
Cities can be sustainable -able to continue over a period of time – because of their density.
As Richard Florida notes: “Ecologists have found that by concentrating their populations in
small areas, cities and metros decrease human encroachment of natural habitats. Denser
settlement patterns yield energy savings. Cities with extensive public transportation systems,
people tend to drive less and thereby cut carbon emissions. Not all cities, however, are as
dense as New York or Tokyo, people tend to spend more money in cars and gas as they
have massive freeway. Cities like Manila, Bangkok and Mumbai are dense, their lack of public
transportation and their government’s inability to regulate car industries have made them
extremely polluted.
Because of the sheer size of city population across the world, it is not surprising that urban
areas consume most of the world’s energy. Cities only 2 percent of the world’s landmass, but
they consume 78% of global energy. Therefore, carbon emission must be cut to prevent
global warming.
The major terror attacks of recent years have also targeted cities, especially those with
global influence, are obvious target for terrorist due to their high population and role as
symbol of globalization that may terrorist despise. The same attributes that make them
attractive to workers and migrant make them sites of potential terrorist violence.

E. Global City and the Poor

SUBJECT: CCW EMAIL ADDRESS: brian_duela@spcf.edu.ph
 Economic globalization has paved the way for massive inequality. While economic
globalization has created great wealth, it is increasingly clear that the benefits of this growth
are very unevenly distributed. Wealth has accumulated at the very top of the income scale
while the wages paid for the service jobs that have replaced manufacturing jobs lost to
globalization have stagnated or declined. If this growing inequality is both harmful for urban
residents and an inexorable part of the global city, then this is a serious problem for the idea
that global cities are a benefit for the majority of their residents. In places like Mumbai,
Jakarta and Manila, it is common to find gleaming buildings alongside massive shantytowns.
This duality may even be seen in rich, urban cities.

Gentrification –the process by which a place, especially part of a city, changes from being a
poor area to a richer one, where people from a higher social class live. In the outskirt of New
York and San Francisco are poor urban enclaves -an area that is different from the larger
area or country surrounding it, or a group of people who are different from the people living
in the surrounding area, occupied by African-American and immigrant families who are often
denied opportunities in better life. Slowly, they are being force to move away from the
economic centers of their cities. As a city attracts more capital and richer resident, real
estate prices go up and poor residents are force to relocate to far away but cheaper areas.

In most of the world’s global cities, the middle class is also thinning out. Globalization creates
high-income job that are concentrated in global cities. These high earners, in turn, generate
demand for unskilled labor force that will attend their increasing needs. Many middle-income
jobs in manufacturing and business process outsourcing are moving to other countries. This
hollowing out of the middle class in global cities has heightened the inequality within them. A
large global city may thus be a paradise for some, but a purgatory for others.

Summary

Global cities, as noted in this lesson, are sites and medium of globalization. They are, therefore
the material representation of the phenomenon. Through them, we see the best globalization;
they are places that create exciting fusions of cultures and ideas. They are also places that
generate tremendous wealth. However, they remain sites of great inequality, where global
servants serve global entrepreneurs. The question of how globalization can be made more just is
partly a question of how people make their cities more just.

GUIDE QUESTIONS
1. In what sense are cities medium of globalization?
2. Why is economic power the most crucial determinant of a global city?
3. Why is there a lot of inequality on global cities?

SUBJECT: CCW EMAIL ADDRESS: brian_duela@spcf.edu.ph

SUBJECT: CCW EMAIL ADDRESS: brian_duela@spcf.edu.ph
 Learning Activity 8.1
Guide Questions

1. In what sense are cities medium of globalization?

2. Why is economic power the most crucial determinant of a global city?

3. Why is there a lot of inequality on global cities?

SUBJECT: CCW EMAIL ADDRESS: brian_duela@spcf.edu.ph

 REFERENCES

Claudio, Lisandro and Abinales, Patricio.2018.The Contemporary World. C&E Publishing, Inc.

https://www.freeman-pedia.com/today/

https://www.bbvaopenmind.com/en/articles/the-global-city-introducing-a-concept/

SUBJECT: CCW EMAIL ADDRESS: brian_duela@spcf.edu.ph