The Global City: New York, London, Tokyo By: 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

Presented by: Dan Berkowitz

• In Conclusion: A New Urban Regime?

New York

Tokyo

London

Global Economy “A global economy is one whose strategic core activities, including innovation, finance and corporate management, function on a planetary scale on real time” Carnoy 1999

Definitions Internationalization

“the act of bringing

something under

international control”

Princeton WordNet

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Economic Activities Shift from Production to

Finance

International Financial Market surpassing Direct Foreign Investment

US, Japan and UK function as a single marketplace

Trends of the New Industrial Complex (NIC)

Central Thesis

Increase of Globalization

Concentration of Economic Control

Management and control of global finance and servicing network

Major Cities and Globalization of Economic Activities Thesis and Hypothesis

Hypothesis Spatial dispersion of Production

Reorganization of Financial Industry

New Forms of Centralization

How has globalization of economic activities affected urban hierarchies and systems which are based on national location?

How durable is an economic system based on management, services and financial industry?

How durable are the spatial results of this system that requires high density, high agglomeration and high real estate prices and competition?

Other Questions Covered

5. Post WWII growth based on manufacturing for mass consumption Suburbanization, social provisioning, expansion of infrastructure

6. Current growth based on international market and consumption by firms and governments

1. Highly competitive economic environment

2. Firms cut production costs and slash all social wage for workers

3. Growth dependent on a weak national economy and the decline of national manufacturing industry

4 Socio-economic Polarization

Impact of the NIC on City’s Socio-Economic Structure

Benefactors of the NIC

Professionals, managers, brokers Work harder, less job stability, get paid less than typical upper class New cosmopolitan & global work culture New perspective of the good life: art, luxury consumption, antiques, cuisine, designer labels, converted downtown lofts DINK lifestyle clash with traditional post-WWII middle class

Socio-Economic Results

Lehman Brothers Holdings Inc.,

JPMorgan Investment Bank,

Goldman Sachs Group

Sumitomo Trust and Banking Co. Ltd.

Bank of Tokyo-Mitsubishi

KBC Financial Products

Citigroup 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.)

Sample list of Firms

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

In Conclusion