MODULE 5

GLOBAL POPULATION AND MOBILITY

SECTION NO. 1

GLOBAL CITY

This section introduces the development of global cities. It also highlights the

present condition of the world that contributes to globalization.

INTENDED LEARNING OUTCOMES

At the end of this section, you are expected to:

1. identify the attributes of a global city;

2. analyze how cities serve as engines of globalization; and

3. explain how multinational corporations influence the development of global

cities.

The 21st century is a hug for the closer relation of states and for a wider perspec-

tives in technological development. As such, the world became a web where people

can witness the interconnectivity of nations. It is globalization that made nations

closer to each other. According to Thomas Friedman in his book The World is Flat (

2005), there are three (3) stages of globalization. The first stage is called Globaliza-

tion 1.0 that lasted from 1492 to 1800 and “ sharnk the world from a large size to a

size medium”. This is known as the age of mercantilism and colonalism and the

driving forces were workforce, horsepower, windpower, and, later on, steam power.
The second stage is the age of Pax Britannica when Great Britain was the hege-

monic power in terms of trade and economy; it is known as Globalization 2.0. The

driving force was new institutions, particularly the emergence of global markets and

multinational corporation. The third stage, which occured during the second half of

the 20th century, refers to the age of Pax Americana when the United States of

America was the hegemonic power in terms of security, trade and economy. This is

called Globalization 3.0. After the fall of the Soviet Union in the 1980s, the United

States of America became the sole superpower in the so-called Unipolar World.

This system was developed by the reigning hegemonic state by defeating other

great powers, not necessarily in a military aspect, but in terms of economy and in-

fluence to other states in the world.

Unlike in the 19th and 20th century, the present condition does not use the tactics

of force as a primary strategy in maintaining one’s influence over another state,

rather it uses soft power to retain one’s dominance over the less powerful states.

Soft power, according to Joseph Nye ( 2004) who coined the term, uses a different

method to establish a cooperation- attraction. This form of power “ arises from the

attractiveness of a country’s culture, political ideals, and policies.” When these poli-

cies are deemed justifiable by other states, soft power is enhanced. Nye argues

that it will be a mistake if a country does not use this as part of its national strategy.

He further posts that attraction has always been more effective than force; shared

values such as democracy, human rights, and individual opportunities are highly

persuasive. Admittedly, the United States of America has been employing its soft

power in various ways.

With the development of technology, corporations around the world tried to expand

their footholds outside their own countries. Gore (2013) explained that the world is

changing dramatically and there are six driving forces in this global change. One of

the drivers of global change is the emergence of a deeply interconnected global

economy that increasingly operates as a whole entity.

Multinational corporations (MNCs) plays a substantial role in the global economy

and enjoy a multitude of privileges such as unquestionable access to vast amounts

of wealth they draw from their income , theoretical immortality to a certain extent,

and the ability to pit themselves against one another. Nation-States are the center-

pieces of the global community to the extent that MNCs threaten nation-states

themselves (Gore, 2013). MNCs are also more flexible and independent in compar-

ison to nation- states which seem to lack the capacity to dictate how MNCs ought to

behave.

Therefore, from these established premises, one can infer that MNCs play a pivotal

role not only in the global economy but in the international political community as

well, alongside nation-states in terms of their capacity to sustain themselves and

considerably to influence the members of the international community. In a sense,

MNCs seem to tie together an otherwise politically separated and clouted world un-

der an all- encompassing banner of commerce and economy. Products and goods

have the intrinsic capability to attract a target market regardless of geographical lo-
cation and politial ideology. MNCs, in a sense, have the capacity to erase and tran-

scend the borders of the world.

MNCs and the irrefutable continuity of nation-states act as key actors of the global

community. With these, the world, at least figuratively, seems to be smaller and

more connected. The evidence of such connectivity is the concept and actual mani-

festation of the global city.

The global city serves a hub for production, finance, and telecommunications.

Sassen (2005) outlined the different characteristics of globality that maintain its link

to globalization. Some of the obvious characteristics of a global city are 1.) the cul-

tural diversity of the people; 2.) existence of a center of economy; 3.) geographic

dispersal of economic activities that marks globalization; and 4.) global reach per-

formance. These characteristics are observed in famous global cities such as New

York, Tokyo, Singapore, and Seoul. According to the 2018 Global Cities Index, New

York ranked the highest in terms of the general criteria i.e., busines activity, human

capital, information exchange, cultural experience, and political engagement. New

York is followed by London, Paris, Tokyo and Hongkong.

It cannot be helped that a multitude of cultures interact with each other when na-

tion-states and multinational corporations behave in a grander scheme. The result

of this contant interaction among a wide array of cultures is a conglomeration of cul-

tures in a particular geographical setting which has been labelled as the global city.

Cities are hubs for high economic, commercial, cultural, and at times even political
activities which can contribute to human progress and development through collab-

orative efforts of multicultural individuals situated therein. Thus, global cities repre-

sent cities around the world that exemplify these characteristics of a city better than

other cities. For example, the cities of San Francisco and New York in the United

States of America were showcased as global cities that exhibit strength in innova-

tion and strong performance in business activity and human capital, respectively, in

2017 and 2018 by A.T. Kearney’s Global Cities Report. Further, global cities are

also perceived as sources of economic growth and are also economic power-

houses themselves, coupled with being industry leaders and regional hubs.

Global cities house industries that promote the globalization of markets among

countries arises and the world as people know it is currently in the state where peo-

ple are diverse, yet connected. Through the development of multinational corpora-

tions, global cities have been established. The 21st century brought the countries

together into global competition. In coming decades, the number of global cities will

dramatically increase.

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