SASSEN, Saskia. the Global City Brown

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T h e G l o b a l C i t y : i n t r o d u c i n g a C o n c e p t

SASKIA SASSEN

Professor of Sociology

University of Chicago

E A C H P H A S E IN T H E L O N G his to ry o f the wor ld economy ra i ses spec i f i c ques t ions about

the pa r t icu la r con d i t ion s tha t make it pos s ib le . O n e of t he key proper t i e s o f th e cur re n t

phase is the ascen danc e of info rm at ion techn olog ies and the associa ted increase in the

mobi l i ty and l iqu id i ty o f cap i ta l . There have long been c ros s -borde r economic p ro-

cesses—flows of capi ta l , labor , go od s , raw mater ia ls , tour is ts . Bu t to a large exten t the se

too k p lace w i th in the in te r - s ta te system, where the key a r ti cu la to rs were na t iona l s t a te s .

The in te rna t iona l economic sys tem was ensconced la rge ly in th i s in te r - s ta te sys tem.

Th is has cha ng ed ra ther dram at ica l ly over the las t deca de as a resul t of pr ivat iza t ion, 27

deregu la t ion , the open ing up of na t iona l economies to fo re ign f i rms , and the g rowing

par t i c ipa t ion o f na t iona l economic ac to rs in g loba l marke t s .

I t is in this co ntex t th a t we see a re-scal ing of w ha t are the s t ra tegic terr i tor ies tha t

a r t i cu la te the new sys tem. Wi th the pa r t i a l unbundl ing o r a t l eas t weaken ing of the

na t iona l a s a spa t ia l un i t d ue to p r iva t i za t ion a nd d e regu la t ion and th e a s soc ia ted

s t reng then in g of g loba l iza t ion co me con di t ion s fo r the a scendance o f o the r spa ti a l

uni ts or sca les . Among these are the sub-nat ional , notably c i t ies and regions ; cross-borde r reg ions encompass ing two or more sub-na t iona l en t i t i e s ; and supra -na t iona l

ent i t ies , i.e . g lobal digi ta lized m arke ts and free t rade blocs . T h e dy nam ics and processes

that ge t te rrr i tor ia l ized a t these diverse sca les can in pr inciple be regional , na t ional or

g loba l .

I locate the emergence of global c i t ies in this context and agains t th is range of

ins tant ia t ions of s t ra tegic sca les and spat ia l uni ts . ' In the case of global c i t ies , the dy-

namics and processes tha t ge t te rr i tor ia l ized are global .



SASKL\ SASSEN

ELEMENTS IN A NE W CONCEPTUAL ARCHITECTURE

T he global izat ion of econo m ic act iv ity entai ls a new type of organizat ional s t ructure .

To capture th is theoret ical ly and empirical ly requires , correspondingly , a new type of

conceptual architecture.^ Constructs such as the global city and the global-city region

are, in my reading, im po rtan t e lements in th is new conceptual arch i tecture . T he act iv-

i ty of naming these elements is part of the conceptual work . There are o ther c losely

l inked terms wh ich co uld conceivably have been used: wo rld cities,"* "supervilles,"^ in-

format ional c ity .̂ T hu s , choosing h ow to nam e a configurat ion has its ow n substant ive

rationality.

W he n I f irst chose to use g lobal c i ty /T d id so kno win gly— it was an at tem pt tona m e a difference: the specificity oFth e global as i t gets stru ctu red in the co nte m po rar y

period. I did not chose the obvious alternative, world city, because i t had precisely the

opp osi te a t t r ibu te: i t referred to a type of c i ty w hich we have seen over the cen tur ies / in

earlier periods in Asia^ and in European colonial centers.^ In this regard, it can be said

tha t m ost of today's ma jor global cities are also w orld cit ies, bu t th at there m ay well be

som e global cities today t ha t are not w orld cit ies in the full , rich sense of that ter m . Th is

is part ly an empirical quest ion; further , as the g lobal economy expands and incorpo-

rates additional cit ies into the various networks, i t is quite possible that the answer to

that part icular quest ion wil l vary. T hu s , the fact that M iam i has developed global c i ty

funct ions beg inning in the la te 1980s does not m ake i t a w orld ci ty in tha t o lder sense

o f t h e t e rm . ' "

T H E G L O BA L C I T Y M O D E L : O R G A N IZ IN G H Y P O T H ES ES

T her e are seven hypotheses through w hich I organized the data and the theorizat ion of

the global city m ode l. I will discuss each of these briefly as a way of pro du cin g a m ore

precise representat ion .

First , the geographic dispersal of economic activit ies that marks globalization,

alon g w ith the sim ultan eou s integra tion of such geographically dispersed activit ies, is a

key factor feeding the grow th and im portan ce of central corporate func t ions . T he m ore

dispersed a f irm's opera t ions across d ifferent coun tr ies , the m ore com plex an d s t ra tegic

i ts central func t ions— that is , the wo rk of m anag ing, coordin at ing , serv icing , f inancing

a f irm's ne two rk of ope rat ions .

Second, these central funct ions become so complex that increas ingly the head-

al city xd city



The Global City: Introducing a Concept

key s ite for the pro duc t ion of these central headq uarter funct ions was the head quarters

of a firm, today there is a second key site: the specialized service firms contracted by

headquarters to produce some of these central funct ions or components of them. This

is especially the case w ith firms involved in global markets and no n-r ou tine ope ratio ns.

But increasingly the headquarters of all large firms are buying more of such inputs

ra ther than p roduc ing them in -house .

Third , those special ized service f i rms engaged in the most complex and g lobal-

ized ma rkets are subject to agglome rat ion econ om ies . T he c om plexi ty o ft h e serv ices

they need to produce, the uncertain ty of the markets they are involved with ei ther

directly or throu gh the hea dqua rters for which they are produ cing the serv ices , and the

grow ing im porta nce of speed in all these t ransact ions , is a mix of condi t ions that c on-s t i tu tes a new agglom erat ion dy nam ic. T he mix of f irms, ta lents , and expertise from a

broad range of specialized f ie lds makes a certa in type of urban e nviro nm ent funct ion as

an inform at ion center. Being in a c i ty becomes synon ym ous w ith being in an extremely

in tense and dense informat ion loop.

A fourth hypothes is , derived from the preceding on e, is that the more head qua r-

ters outsource their most complex, unstandardized funct ions , part icular ly those sub-

ject to uncertain and changing markets , the freer they are to opt for any locat ion ,

because less wo rk actually don e in the h eadq uarters is subject to agglome rat ion econo -2 9

mies . T his further underl ines tha t the key sector specify ing th e d is t inct ive p rod uct io n

advantages of global cit ies is the highly specialized and networked services sector. In

developing th is hypothes is I was responding to a very co m m on not ion that the n um be r

of headquarters is what specifies a global city. Empirically it may still be the case in

many countr ies that the leading business center is a lso the leading concentrat ion of

headquarters, but this may well be because there is an absence of alternative locational

op t ions . B ut in coun tr ies wi th a wel l -developed infras tructure outs ide the leading busi-ness center , there are likely to be m ult ip le locat ional o pt ion s for such head quarters .

Fifth, these specialized service firms need to provide a global service which has

meant a global network of affi l iates or some other form of partnership, and as a result

we have seen a s t rengthe ning of cross border c i ty- to-ci ty t ransact ions a nd netw orks . At

the l imit , th is may wel l be the beginning ofthe format ion of t ransnat ional urban sys-

t ems . The growth of global markets for finance and specialized services, the need for

t ransnat ional serv icing networks due to sharp increases in in ternat ional inves tment ,

the reduced ro le ofthe government in the regulat ion of in ternat ional economic act iv-i ty , and the corresponding ascendance of o ther ins t i tu t ional arenas—notably g lobal



SASKIA SASSEN

A related hypothesis for research is that the economic fortunes of these cities

become increasingly disconnected from their broader hinterlands or even their na-

tional economies. We can see here the formation, at least incipient, of transnational

urban systems. To a large extent major business centers in the world today draw their

importance from these transnational networks. There is no such thing as a single global

city—and in this sense there is a sharp contrast with the erstwhile capitals of empires.

A sixth hypothesis, is that the growing numbers of high-level professionals and

high profit making specialized service firms have the effect of raising the degree of

spatial and socio-economic inequality evident in these cities. The strategic role of these

specialized services as inputs raises the value of top level professionals and their num-

bers . Further, the fact that talent can matter enormously for the quality of these strate-gic outputs and, given the importance of speed, proven talent is an added value, the

structure of rewards is likely to experience rapid increases. Types of activities and work-

ers lacking these attributes, whether manufacturing or industrial services, are likely to

get caught in the opposite cycle.

A seventh hypothesis, is that one result ofthe dynamics described in hypothesis

six, is the growing informalizarion of a range of economic activities which find their

effective demand in these cities, yet have profit rates that do not allow them to compete

for various resources with the high-profit making firms at the top of the system.

31 1

Informalizing part of or all production and distribution activities, including services, is

one way of surviving under these conditions.

RECOVERING PLACE AND WORK-PROCESS

In the first four hypotheses, I attempted to qualify what was emerging in the 1980s as

a dominant discourse on globalization, technology, and cities which posited the end ofcities as important economic units or scales. I saw a tendency in that account to take

the existence of a global economic system as a given, a function of the power of

transnational corporations and global communications.

My counter argument is that the capabilities for global operation, coordination,

and control contained in the new information technologies and in the power of

transnational corporations need to be acrualized. By focusing on the production of

these capabilities we add a neglected dimension to the familiar issue of the power of

large corporations and the capacity ofthe new technologies to neutralize distance andplace. A focus on the production of these capabilities shifts the emphasis to the practices



The Global City: Introducing a Concept

F u r t h e r , a f o c u s o n

practices draw s the categories

of p l ace and work process

into the analysis of econ om ic

global iza t ion. These are two

categories easi ly overlooked

in accounts centered on the

hyp erm obi l i ty of capi ta l and

t he pow e r o f t r an sna t i ona l .

Developing ca tegories such

as p lace and work process

does not negate the cent ra l -

i t y o f h y p e r m o b i l i t y a n d

power . Rather , i t br ings to

the fore the fact that many

ofthe resources necessary for

global eco nom ic activi ties are

not hypermobi le and are , in-

deed , de ep l y embedded i nplace, no tab ly places such as OL ^ f u i L- i t

g lobal c i ties , g lobal -c ity re- v id eo st il ls f rom "T he Paracul ture ," un de r pro du ct ion

gions, an d expo rt processing a t ZK M by Hi lary Koob-Sassen (Germ any, 20 03 -4) .

zones.

Th is enta il s a wh ole in-

frast ructure o f ac tivi ties , f i rms, a nd jobs w hich are necessary to run the adv anced cor-

po r a t e e conomy . The se i ndus t r i e s a r e t yp i c a l l y concep t ua l i z ed i n t e rms o f t he

hypermobi l i ty of the i r outputs and the high levels of exper t i se of the i r professionalsra ther than in terms of the product ion or work process involved and the requisi te

infrastructure of facil i t ies and non-expert jobs that are also part of these industries.

Focusing on the work process br ings wi th i t an emphasis on economic and spat ia l

po la r iza t ion because of t he d i sprop or t iona te concen t ra tion of ve ry h igh and ve ry low

incom e jobs in these major global c ity sec tors . Em phas iz ing place , infrast ructure , and

no n-ex per t jobs mat ters prec ise ly because so m uch of the focus has been on th e neu t ra l -

iza t ion of geography and place made possible by the new technologies.

The growth of ne tworked cross-border dynamics among global c i t ies inc ludes a

31



SASKIA SASSEN

eco no m ic ac t ivi t ies . W e also see grea ter cross-border n etwo rks for cul tura l p urpo ses, as

in the grow th of intern at ion al m arkets for ar t and a t ransna t iona l c lass of cura to rs; an d

for non -form al pol i tica l purposes, as in the growth of t ransn at ion al ne twork s of ac t iv-

is t s around environmenta l causes, human r ights , and so on. These are largely c i ty- to-

c i ty cross-border ne two rks, or , a t least , it appears a t th is t im e to be s im pler to cap ture

the existence and m odal i t ies of these netw orks a t the c i ty level. T h e sam e can be sa id for

the new c ross borde r c r imina l ne tw orks .

Re captu r ing the g eograph y of places involved in global iza t ion a llows us to recap -

ture people , workers , communi t ies , and more speci f ica l ly , the many di f ferent work

cul tures, besides the corpora te cul ture , involved in the work of global iza t ion. I t a lso

br ings wi th i t an eno rm ou s research agenda, one tha t goes bey on d the by now famil iarfocus on cross-border flows of goods , cap i t a l , and in forma t ion .

Finally, by emphasizing the fact that global processes are at least part ly embedded

in nat ional te rr i tor ies , such a focus int roduces new var iables in current concept ions

abo ut econ om ic g loba li zat ion and the shr ink ing regu la to ry ro le o f the s t a t e . " T ha t is t o

say, the space economy for major new t ransnat ional economic processes diverges in

signi ficant ways f rom the dual i ty glob al /na t ion al presupp osed in m an y analyses o f t h e

global economy. The dual i ty , na t ional versus global , suggests two mutual ly exclusive

spaces—w here one beg ins the o the r end s . O n e o f the ou tcom es of a g loba l c ity ana lys isis that i t makes evident that the global material izes by necessi ty in specific places, and

ins t i tu t iona l a r rangement s , a good number o f which , i f no t most , a re loca ted in na -

t ional te rr i tor ies .

W O R L D W I D E N E T W O R K S A N D C E N T R A L C O M M A N D F U N C T I O N S

T h e geograph y of global iza t ion con ta ins bo th a dy na m ic of dispersa l and of cent ra liza-

t ion. The massive t rends towards the spat ia l dispersa l of economic ac t ivi t ies a t the

metropol i tan, na t ional , and global level which we associa te wi th global iza t ion have

contr ibuted to a demand for new forms of te rr i tor ia l cent ra l iza t ion of top- level man-

agem ent and contro l funct ions. Insofar as these f l inc t ions benef i t f rom agglom erat ion

econ om ies even in the face of te lemat ic integra t ion of a f irm's global ly dispersed m an u-

fac tur ing a nd service op era t ion s, they ten d to locate in c i t ies . T hi s ra ises a que st ion as

to why they should benef i t f rom agglomert ion economies, especia l ly s ince global ized

economic sec tors t end to be in t ens ive use rs o f the new te l ecommunica t ions and com-

puter technologies, and increasingly produce a par t ly de-mater ia l ized output , such as



The Glob al City: Introducing a Concept

developed. Business netw orks benefi t f rom agglom erat ion eco nom ies and hence thr ive

in cit ies even today w hen s imu ltaneous g lobal com m unic at ion is poss ib le . Elsewhere I

exam ine th is issue and f ind that the key variable con tr ibu t ing to the spatia l con centra-

t ion of central functions and associated agglomerat ion econom ies is the extent to wh ich

th is d ispersal occurs under condi t ions of concentrat ion in contro l , ownership , and

profi t appropriat ion . '^

This dynamic of simultaneous I n s i d e c o u n t r j e s , t h e l e a d i n g f i n a n c i a lgeographic d ispersal and co ncen tra-

tion is one of the key elements in " i i t e r s t o d a y c o n c e i i t r a t e 3 g r e a t e r

the organizational architecture of the s h a r e o f nat ional f inanc ia l ac t iv i ty than

g l o b a l e c o n o m i c s y s te m L e t m e f i r s t ^^^^ ^^^ ^^^ i n t e r n a t i o n a l l y ,give some empirical referents and

then examine some of the itnpiica- citJes in the g lohal North concentrate wel l

tions for theorizing the impact of gver half o f t h e g l o b a l C a p i t a l m a r k e t .

global iza t ion an d t h e n ew t e chno lo -

gies o n cities .

T h e rap id grow th of affi liates i l lus t ra tes th e dyn am ic o f s im u l t aneous geog raph i c

dispersa l a n d c o n c e n t r a t i o n o f a f i rm 's opera t ions . By 1999 firms h a d well over half a

mil l ion a f fi li ates o u t s ide the i r ho m e coun t r i e s accou t i t ine for USS 11 tri l l ion in sales, a

3

very significant figure if we cons ide r tha t g loba l t rade s tood a t US$ 8 t r i l l ion. Firms

wi th l a rge num be r s o f geographical ly dispersed fac tor ies a n d service outlets face m a s -

sive n e w needs for cen t ra l coord ina t ion a n d servicing, especially when their affi l iates

involve fore ign countr ies with different legal a n d accoun t i ng s y s t em s .

Ano the r i n s t ance t oday o f th i s nego t ia t ion be tween a globa l c ros s -borde r d y -

n a m i c a n d terri torially specific s ite is tha t of the global f inancia l markets . T h e orde rs o f

m a g n i t u d e in these t ransact ions have r isen sharply, as i l lus t ra ted b y t h e US $ 192 t r i l -

l ion fo r 2 0 0 2 in t raded derivat ives , a m ajo r com po nen t o f t h e g l oba l e con om y a n d o n e

tha t dwarfs t h e va lue o f globa l t rade which s tood a t US $ 8 t r i l l ion . These t ransac t ions

a r e pa r t ly em bedd ed in e lec t ron ic systems tha t ma ke poss ib le th e i n s t an t aneous t r an s -

mis s ion o f m o n e y a n d i n f o r m a t i o n a r o u n d th e g lobe . Much a t t en t i on h a s g o n e t o th is

capac i ty for ins tan taneous t ransmis s ion o f th e n ew t e chno log i e s . Bu t t h e othe r ha l f o f

the s to ry is th e ex t en t t o w h i c h th e global financial markets are located in an e x p a n d i n g

n e t w o r k o f ci t ies , wi t h a d i s p ropo r t i ona t e concen t r a t i on in cities o f t h e g l oba l Nor t h .

I ndeed , th e degrees o f concen t r a t i on i n t e rna t i ona l l y a n d wi th in coun t r i e s are u n e x -



SASKIA SASSEN

pirically in a later section.

O ne o f th e com pone n ts o f th e g loba l cap ita l marke t is s tock marke t s . T he la te

1980s and early 1990s saw the addition of markets such as Buenos Aires, Sao Paulo,

Mexico Ci ty , Bangkok, Taipei , Moscow, and growing numbers of non-nat ional f i rms

l is ted in most of these ma rkets . T he grow ing num ber of s tock markets has co ntr ibu ted

to raise the capital that can be mobilized through these markets, reflected in the sharp

w orldwide growth of s tock m arket capi ta l ization w hich reached over US$ 24 t r i l l ion in

20 00 a nd U SS 36 tr i ll ion in 2 0 0 1 . This g lobal ly in tegrated s tock market which makes

possible the circulation of publicly l isted shares around the globe in seconds is embed-

ded in a grid of very mater ial , physical, strategic places.

The specific forms assumed by globalization over the last decade have created

part icular organizat ional requirements . The emergence of g lobal markets for f inance

and special ized services , the growth of inves tment as a major type of in ternat ional

t ransact ion , a l l have contr ibuted to the expansion in command funct ions and in the

demand for specialized services for firms.'^

By central functions I do not only mean top level headquarters; I am referring to

all the top level financial , legal, accounting, managerial , executive, planning functions

necessary to run a corporate organizat ion operat ing in more than one country , and

increas ingly in several cou ntr ies . Th ese central funct ions are part ly em bed ded in head-quarters, but also in good part in what has been called the corporate services complex,

that is , the network of financial , legal, accounting, advertising firms that handle the

comp lexi ties of operat ing in more than one n at ional legal sys tem, nat ional acco unt ing

system, advert is ing cul ture , e tc . and do so und er co ndi t ion s of rapid innov at ions in al l

these fields. Such services have become so specialized and complex that headquarters

increas ingly buy them from special ized f i rms rather than producing them in-house.

These agglomerat ions of f i rms producing central funct ions for the management and

coordinat ion of g lobal economic sys tems, are d isproport ionately concentrated in thehighly developed countries—particularly, though not exclusively, in global cit ies. Such

conc entrat ions of funct ions represent a s t ra tegic factor in the organizat ion o fth e g lobal

econom y, and they are s ituated in an ex pand ing netw ork of global c i ties .'^

It is im po rta nt analytically to unb un dle strategic functions for the global econo m y

or for g lobal operat ion , a nd the overall corporate econ om y of a country . Th ese g lobal

con t ro l and com m and func tions a re par tly embed ded in na t iona l co rpora te s truc tu res,

but also consti tute a distinct corporate subsecror. This subsector can he conceived as

par t of a netw ork that co nnec ts global cities across the w orld th ro ug h firms' affi liates or

oth er representative offices.'^ For the purpos es of certain kin ds of inq uiry this distin c-



The Global City: Introducing a Co ncept

This d is t inct ion also mat ters for quest ions of regulat ion , notably regulat ion of

cross-border act iv i t ies . I f the s tra tegic central fun ct ions— both those produ ced in cor-

porate headquarters and those produced in the special ized corporate serv ices sector—

are located in a ne tw ork of major financial an d business centers, the qu estion of regulat-

ing w hat a m ou nts to a key part of the g lobal econom y will en tai l a d i fferent type of

effort f rom w hat wou ld be the case i f the s tra tegic ma nag em ent a nd coo rdina t ion func-

tions were as distributed geographically as the factories, service outlets , and affi l iates

generally. W e can also read this as a strategic geo graph y for p olit ical activisms tha t seek

accountabi l i ty from major corporate actors , among others concerning environmental

s tandards and workplace s tandards .

National and global markets as well as globally integrated organizations require

central p laces whe re the work of g lobal izat ion gets done . Finance and adv anced corp o-

rate services are industr ies prod ucin g th e organizat ional com m odit ies necessary for the

im plem enta t ion a nd m ana gem ent of g lobal eco nom ic systems. Ci t ies are preferred s i tes

for the production of these services, particularly the most innovative, speculative, inter-

nationalized service sectors. Further, leading firms in information industries require a

vast physical infras t ructure con tain ing s t ra tegic nodes with h yper-c once ntrat ion of fa-

ci li ties; w e need to d is t inguish b etween the capaci ty for g lobal t ra nsm iss ion/c om tnun i-

cat ion and the materia l condi t ions that make th is poss ib le . Final ly , even the most ad-vanced information industries have a production process that is at least partly place-

bound because of the combinat ion of resources i t requires even when the outputs are

hypermobi le .

Theoretically, this addresses two key issues in current debates and scholarship.

O ne of these is the complex a r t iculat ion between capi ta l fix ity and capi ta l m obi l ity , and

the other is the posit ion of cit ies in a global economy. Elsewhere I have developed the

thes is that capi ta l mob i l i ty cann ot be reduced s imply to that w hich m oves nor can i t be

reduced co the technologies that faci li ta te mo vem ent . R ather , m ul t ip le com po nen ts ofwhat we keep th ink ing o f as capital fixity are actually components of capital mobili ty.

This conceptualization allows us to reposit ion the role of cit ies in an increasingly glo-

bal iz ing world , in that they co ntain the resources that enable f irms and ma rkets to have

global operat ions . '̂ The mobi l i ty of capi ta l , whether in rhe form of investments , t rade

or overseas affi liates, n eeds to be man age d, serviced, co ord ina ted . Th ese are often rather

place-bound, yet are key components of capital mobili ty. Finally, states, place-bound

ins t i tu t ional orders—have played an often crucial ro le in producing regulatory envi-

ronments that faci l i ta te the implementat ion of cross-border operat ions for their na-



SASKIA SASSEN

In brief, a focus on c i ties mak es i t possible to recognize the anc ho ring of m ul t iple

cross-border dynamics in a network of places, pro m ine n t a m on g which a re c i ti e s, pa r -

t icular ly global c it ies or rhose wirh global c i ty funcr ions. T his in tur n anch ors var ious

features of globalization in the specific condit ions and histories of these ci t ies, in their

var iable ar t icula t ions wirh the i r na t ional economies and wirh var ious world economies

across t im e and place . '^ T hi s opt ic on global iza t ion c on tr ibu tes to ident i fying a com -

plex organ iza t ional arch i tec ture wh ich cu ts across borde rs , and is bo th p ar t ly de- terr i -

tor ia l ized and par t ly spat ia l ly concentra ted in c i t ies . Fur ther , i t c rea tes an enormous

research agend a in tba t every par t icular na t ion al or urban eco no m y has i ts speci fic an d

inher i ted m odes of ar t icula t in g w i th curre nt global c i rcui ts . O nc e we have mor e infor-

mat ion about this var iance we may a lso be able to establ ish whether posi t ion in theglobal hierarchy makes a dijfference and the various ways in which i t might do so.

IM P A CT S O F N E W C O M M U N I C A T IO N T E C H N O L O G I E S O N C E N T R A LI TY

Cit ies have histor ica l ly provide d n at ional eco nom ies, pol i ties , and socie ties w i th so m e-

thin g we can tbin k of as cent ra li ty . In term s of the i r econ om ic funct ion, c i ties provide

agglom era t ion econom ies , mass ive concen t ra t ions o f in forma t ion on the l a te s t deve l-

o p m e n t s , a marke tp lace . Tb e ques t ion he re is : how d o the new technolog ies o f com -municat ion a l ter the role of cent ra l i ty and hence of c i t ies as economic ent i t ies .

As earl ier sections have indicated, central i ty remains a key Feature of today's glo-

hal economy. But today there i s no longer a s imple , s t ra ight forward re la t ion between

centra l i ty an d such geog raphic ent i ties as the dow nto w n, or the cent ra l business dis t r ic t

{ CBD} . In the past , and up to qui te recent ly in Fact , the center was synonymous wi th

the do wn tow n or the CB D. Today , pa r t ly as a re su lt oF th e new com m un ica t ion t ech-

nologies, the spat ia l corre la tes oFthe c enter can assum e severa l geog raphic Forms, rang-

ing From th e C B D to a new global gr id oF c i t ies .

Simply, on e can ident i fy three Forms assum ed by cent ra l i ty tod ay . ' ' F i rs t , whi le

there i s no longer a s imple s t ra ightForward re la t ion between cent ra l i ty and such geo-

grap hic ent i ties as tbe dow nro w n, as was the case in the past , the C B D remains a key

Form oF cent ra li ty . B ut the C B D in m ajor intern at ion al business centers is on e pro -

foundly reconf igured by t echnolog ica l and econom ic change .

Second, the center can extend into a metropol i tan area in the form oFa gr id oF

no des oF inte ns e business activity, a case well i llustrated by recen t dev elo pm en ts in

cit ies as diverse as B uen os Aires^" and Par is ." ' One might ask whether a spat ia l organi -



Global Gity: Introducing a Concept

Insofar as these various nodes are articulated through cyber-routes or digital highways,

they represent a new geographic correlate oFthe most advanced type of "center." The

places that fall outside tbis new grid oF

digital highways, however, are

peripheraiized. This regional grid oF Ttiere is little doubt that connectJng to

nodes represents, in my analysis, a re- g|o(3a| cJrcuJtS fiaS brOUght WJtb Jt Zconstitution of tbe concept of region.

Far From neutralizing geography, the Significant level of development...[and]

regional grid is likely to be embedded economjc dynamism. But tbe question

i n conven t i ona l f o rm s oF com m un ic a - , . i- . • . • •

. . r u ^ I of i n e q u a l i t y b a s n o t b e e n e n g a g e d .t ions infras t ructure , notably rapid ra i l n J O O

and h ighways connec t i ng to a i rpor t s .

I ron ica l ly pe rhaps , conven t iona l inFras t ruc tu re are likely to m ax im ize tbe e c o n o m i c

benefi ts der ived from te lemat ics . I th ink th i s is an impor tan t i s sue tha t h as been los t

s o m e w h a t in discuss ions about the neut ra l i za t ion of geog raphy t h rough t e l em a t i c s .

T h i r d , we are seeing tbe Formation of a t rans terr i tor ia l "center" cons t i tu ted via

te lemat ics a n d i n t en s e e conom ic t r an s a c t ion s . T h e most powerFul oFthese n ew geogra -

ph ies o F cen t ra l i ty at th e in te r -u rban leve l b inds th e major in te rna t iona l fmanc ia l and

bus ines s cen te rs : N e w York , Lo nd on , Toky o , Pa r is , F rankFur t , Zur ich , Am s te rda m , L os

37

Angeles , Sydney, Hong Kong, among others . •^^ But th i s geography n o w also includes

cities such as Sao Paulo and Mexico Ci ty . Tbe in tens i ty oF t ransac t ions among these

ci t ies , par t icular ly through th e Financial m ark ets , t rade in services, a n d i nve s tm en t has

increased sbarply, a n d so have th e orde rs of magnitude involved. Final ly , w e see em e r -

gent regional hierarchies , as is i l lus t ra ted by th e g rowth co r r i do r s in Southeas t Asia ,^ '

the case oFSao Paulo in th e M ercosu r f ree - t rade area,^"* an d b y t h e re la t ion be tween th e

par t i c ipa t ing en t i t i e s in the I ran-Dubai cotr idor .^^

Besides the ir impact on the spat ia l corre la tes oFcentra l i ty , the n e w c o m m u n i c a -

t ion t echnolog ies can also be expec ted to have an i m p a c t on inequal i ty between c i t ies

an d ins ide c it ies. T be re is an expec ta t ion in mucb oFrhe l i t e ra tu re on tbese t echnolo-

gies tha t th ey wil l overr ide olde r hierarchies a n d spat ia l inequal i t ies through th e unive r -

sa li zing oFconnec t iv i ty th a t they represen t . T h e avai lable evidence sugges ts tha t th is is

no t qu i t e the ca s e . Whe the r it is the ne tw or k oF f inancia l cen ters and Foreign direct

inves tment pa t t e rns d i scussed he te , or the more spec i f i c examina t ions oF the spat ia l



SASKIA SASSEN

and considerable economic dynamism. But the quest ion of inequal i ty has not been

engaged.

Fur ther , the p ronounced o r ien ta t ion to the wor ld marke t s ev iden t in many o f

these cit ies raises questions about the articulation with their nation-states, their re-

g ions , and the l a rger economic

s t ru c tu re msu chT h e e m p h a s i s on the t r a n s n a t i o n a l and

Cities have typically been deeply

h y p e r m o b i l e c h a r a c t e r o f c a p i t a l h a s embedded in the economies oft o a s e n s e of pOWerleSSneSS their region, indeed often reflect-

, , . _ . , . ing the characterist ics of the lat-

a m o n g l o c a l a c t a r s . . . B u t a n a n a l y s i s ,en and they stui d o . But dties that

t h a t e m p h a s i z e s p l a c e s u g g e s t s t h a t t he are strategic sites in the global

n e w g l o h a l g r i d of s t r a t e g i c s i t e s is anect from their region. T his c on-

t e r r a i n f o r p o l i t i c s a n d e n g a g e m e n t , mcts with a key proposition in tra-

ditional scholarship about urban

systems, namely, that these systems promote the terri torial integration of regional and

nat ional economies . There has been a sharpening inequal i ty in the concentrat ion of

strategic resources and activit ies between each of these cit ies and others in the same

38

country, though this tends to be evident only at fairly disaggregated levels of evidence.

For exam ple, Mexico Ci ty tod ay concentrates a h igher share of som e types of econ om ic

activity and value production than it did in the past ,^ ' ' but to see this requites a very

partic ular ized set of analyses.^*

T H E G L O B A L C I T Y AS A N E X U S F O R N E W P O U T I C O - C U L T U R A L A U G N M E N T S

T h e inco rporat ion of c it ies in to a new cross-border geography o f central ity a lso s ignals

the em ergen ce of a parallel polit ical geography. M ajor cit ies have em erged as a strategic

site not only for global capital , but also for the transnationalization of labor and the

form ation of translocal co m m un ities and identities.^^ In this regard, cities are a site for

new types of polit ical op eratio ns a nd for a wh ole range of new "cultu ral" and subjective

operations.^' The centrali ty of place in a context of global processes makes possible a

t ransnat ional economic and pol i t ical opening for the format ion of new claims and

hence for the const i tu t ion of ent i t lements , notably r ights to p lace. At the l imit , th is

could be an op en ing for ne w forms of "citizenship."^^



Global City: Introducing a Concept

gic si tes is a terrat t i for poli t ics and engagement.^ ' The loss of power at the national

level produces the possibi l i ty for new forms of power and pol i t ics a t the sub-nat ional

level. Further , insofar as the natio nal as co nta ine r o f social process and pow er is cracked,^"*

it opens up possibil i t ies for a geography of poli t ics that l inks sub-national spaces across

borders .^^ Ci t ies are foremost in this new geography. Th is eng enders quest ions of how

and whether we a te see ing the format ion of a new type of t ransnat ional poUtics tha t

localizes in these cities.

Imm igra t ion, for instance , is one m ajor process throug h which a new t ransnat ional

pol i tica l econo m y and t rans- local hou seho ld st ra tegies are being co nst i tuted . I t is one

largely embedded in major c i t ies insofar as these concentra te most immigrants , cer-

ta inly in the developed wo rld, w heth er in the U ni ted Sta tes , jap an , or W estern Eu rope .It is , in m y reading, one of the con sti tut ive processes of globalization today, even th ou gh

no t recognized or represen ted as such in m ainst ream acco unts of the global economy.^^

Global capi ta l and the new immigrant workforce are two major instances of

t ransnat ional ized ac tors tha t each have uni fying proper t ies across borders internal ly ,

and find themselves in contestat ion with each other inside global ci t ies.^^ Researching

and theor iz ing these i ssues wi l l requi re approaches tha t diverge f rom the more t radi -

t ional s tudies of pol it ica l e l ites , local par ty pol i t ics , ne ig hb orh oo d associa t ions, im m i-

grant communi t ies , and so on through which the pol i t ica l landscape of c i t ies andmetropol i tan regions has been conceptual ized in urban studies .

O n e way of thinkin g ab out the pol i tica l impl ica tions of this s t ra tegic t ransnat ional

space anchored in global c it ies is in terms of the form at ion of new cla ims on tha t space .

The global ci ty part icularly has emerged as a si te for new claims: by global capital ,

wh ich uses the global c ity as an "organiza t ional com m odi ty ," bu t a lso by disadv antaged

sectors of the urban popula t ion, f requent ly as internat ional ized a presence in global

c i ties as capi ta l . T he "de-nat ional iz ing" of urba n space and the format ion of new cla ims

by t ransna t ional ac tors , ra ise the qu est ion : W ho se c i ty is it?

The global ci ty and the network of these ci t ies is a space that is both place-

cen te red in tha t i t i s embedded in pa r t i cu la r and s t ra t eg ic loca t ions ; and i t i s

transterri torial because i t connects si tes that are not geographically proximate yet are

intensely con nec ted to each other . I f we consider tha t global c it ies con centra te bo th the

leading sec tors of global capi ta l and a growing share of disadvantaged popula t ions

(imm igrants , m any of the disadvantaged w om en, pe ople of color genera l ly , and , in the

megaci t ies of developing countr ies , masses of shanty dwel le ts) then we can see tha t

ci ties have bec om e a strategic terrain for a wh ole series of confl icts an d co ntra dic t ion s.



SASKIA SASSEN

C O N C L U S I O N

An examination of globalization through the concept ofthe global city introduces a

strong emphasis on strategic components ofthe global economy rather than the broader

and more diffuse homogenizing dynamics we associate with the globalization of con-

sumer markets. Consequently, this also brings an emphasis on questions of power and

inequality. It brings an emphasis on the actual work of managing, servicing, and fi-

nancing a global economy. Second, a focus on the city in studying globalization will

tend to bring to the fore the growing inequalities between highly provisioned and

profoundly disadvantaged sectors and spaces ofthe city, and hence such a focus intro-

duces yet another formulation of questions of power and inequality.Third, the concept ofthe global city brings a strong emphasis on the networked

economy because ofthe nature ofthe industries that tend to be located there: finance

and specialized services, the new multimedia sectors, and telecommunications services.

These industries are characterized by cross-border networks and specialized divisions

of functions among cities rather than inter-national competition per se. In the case of

global fmance and the leading specialized services catering to global firms and mar-

kets—law, accounting, credit rating, telecommunications—it is clear that we are deal-

ing with a cross-border system, one that is embedded in a series of cities, each possibly

part of a different country. It is a de-facto global system.

Fourth, a focus on networked cross-border dynatnics among global cities also

allows us to capture mote readily the growing intensity of such transactions in other

domains^—political, cultural, social, and criminal.

Global cities around the world are the terrain whete a multiplicity of globaliza-

tion processes assutne concrete, localized forms. These localized forms are, in good

part, what globalization is about. Recovering place means recovering the multiplicity

of presences in this landscape. The large city of today has emerged as a strategic site for

a whole range of new types of operations—political, economic, "cultutal," subjective.

It is one ofthe nexi where the formation of new claims, by both the powerful and the

disadvantaged, materializes and assumes concrete forms.©

N O T E S

1. Saskia Sassen, "Digital Networks and the State: Some Governance Questions," Theory, Culture, and

Society 17 ( 2000) : 19-33 . Saskia Sassen, "Spatialities and Temporalities ofthe Global Elements forTheo-

r izat ion," Public Culture 12 ( 2 0 0 0 ) : 2 1 5 - 3 2 . Saskia Sassen, "Territory and Territoriality in the Global



The G lobal City: Introducing a Concept

scope , and t imed to fo l low or p recede par t i cu lar conf igura t ions o f the wor ld economy. See , Giovanni

Arr igh i , The Long Twentieth Century (Lon don and N ew York : Verso , 1994) .

4. Orig ina l ly a t t r ibu ted to Goeth e , the t e rm was re- launched in the work o f Peter Hal l , The W orld Cities

(New York: M cG raw -Hi l l , 1966) , and mo re recen tly re-specif ied by John Fr iedm ann and Wol f f Goetz ,

World City Formation: An Agenda for Research and Action (Los Angeles: Gra duate School o f Arch i t ec tu re

and U rban Plann ing , UC LA , 1982 ) . See a l so , R. St ren , "Th e Stud ies o f Ci t i e s : Popular Percep t ions , Aca-

demic Disc ip l ines , and Emerg ing Agendas ," in M. Cohen , B. Ruble , J , Tu lch in . and A, Gar land , eds . .

Preparing for the U rban Future: G lobal Pressures and Local Forces ( W a s h i n g t o n D . C : W o o d r o w W i l s o n

Center Press . 1996) .

5 . Manuel Cas te l l s , The Informational City: Information Tech nology, Economic Restructuring, and the

Urban-Regional Process (Oxford: Basi l Blackwell , 1989).

6. Braudel(1984), f />. «>.

7 . Ibid, ; Peter Hal l (1966), op. cit.\ Ant hony D. Ki ng , Urbanism, Coknialism, andthe Wo rld Economy :

Culture and Spatial Foundations (London and New York : Rout l edge , 1990) .

8 . Janet L . Abu-Lughod , Before European Hegemony: the World System A.D. 725 0 -735 0 (New York andOxford : Oxford Univers i ty Press , 1989) .

9. King (1990), o;). cit.

10 . See a l so Abu -Lu gho d (1999) , op. aV.; John Renn ie Shor t and Yeong-Hy un Kim, Globalization and

the City (Essex : Addison W els ley Longm an, 1999) . A. Sachar, "Th e Global E cono my an d the W orld

Cities," in A. Sacha r and S. Ob erg , eds .. The World Economy and the Spatial Organization ofPower (AJdcrshot:

Avebury, 1990).

11 . See general ly . Kris Olds. Peter Dicken, Phi l ip E Kel ly, Li l ly Kong, and Henry Wai-Chung Yeung,

eds . . Globalization and the Asia-Pacific: Contested Territories (London: Rout ledge , 1999) .

12 . Sask ia Sassen , "The New Labor Demand in Global Ci t i es , " in M.P Smi th , eds . , Cities in T ransfor-

mation (Bever ly Hi l l s , CA: Sage , 2001) : C hap te rs Two and Five .

13. A cen t ra l p ropos i t ion here , developed a t l eng th in m y work , i s tha t we can not t ake the ex is t ence o f

a g lobal economic sys tem as a g iven , bu t ra ther need to examine the par t i cu lar ways in which the cond i -

t ions fo r economic g lobal i za t ion are p roduced . Th i s requ i res examin ing no t on ly communica t ion capaci -

t ies and the power of mult inat ionals , but also the infrast ructure of faci l i t ies and work processes necessary

for the implementa t ion oi global econ om ic sys tems , inc lud ing the p ro duct ion o t those inpu t s tha t cons t i -

tu te the capab i l ity to r g lobal con t ro l and the in f ras t ruc tu re o f jobs invo lved in th i s p ro duc t ion . T he em-

phasis shifts to ihc practice of g lobal con t ro l : the work o f p rod ucing a nd re produc ing the o rgan iza t ion a nd

m a n a g e m e n t o f a global p rod uct ion sys tem an d a g lobal marke tp lace for Pmance , bo th u nde r cond i t ions

of econ om ic co nce n t ra t ion .The recovery o f p lace and pro duc t ion a l so impl ies tha t g lobal p rocesses can be

studied in great empirical detai l ,

14 . W e are see ing the fo rmat ion o f an econo m ic complex wi th a va lo r i za tion dyn am ic tha t has p roper-t ies clearly dis t inguishing i t from other economic complexes whose valorizat ion dynamic is far more

ar t i cu la ted wi th the pub l i c economic funct ions o f the s t a t e , the qu in tessen t i a l example be ing Ford i s t

manufac tu r ing . Global market s in f inance and advanced serv ices par t ly opera te th rough a " regu la to ry"

um brel l a tha t is no t s ta t e -cen tered h u t mark et -cen tered . Th i s In tu rn b r ings up a ques t ion o f con t ro l

l inked to the cu r ren t ly inade quate capaci ti es to govern t ransac t ions in e lec t ron ic space .

15 . In this sense, global ci t ies are different from the old capi tals of ers twhile em pires , in tha t they are a

funct ion of crossborder networks tather than s imply the most powerful ci ty of an empire. There is , in my

conceptual izat ion, no such ent i ty as a s ingle global ci ty as there could be a s ingle capi tal ot an empire; the

ca tegory g lobal c i ty on ly m akes sense as a com pon ent o f a global netw ork of s t rategic si tes . T he corp orate

subsec to r whcih co n ta ins the g lobal con t ro l and c om m an d funct ions is par t ly emb edde d in th is ne tow rk .

16 . Th ere are m ul t ip le spec i fi ca tions to th i s a rgum ent . For ins tance , and go ing in the oppos iu te d i rec-t ion, the development of f inancial inst ruments that represent f ixed real es tate reposi t ions the lat ter in





The G lobal City: Introducing a Concept

King (1996) , op. a r . ; Abu -Lug hod (1994) op. c/r . ; Joan Copjec and Michael Sorkin, eds . . Giving Ground:

The Politics of Propinquity (New York: Verso, 1999); E. Berner and R, Korff, "Global i za t ion and Local

Res i s tance: T he Crea t ion o f Local it ies in M ani la an d B angkok ," International Journal of Urban and Re-

gional Research 19 , no . 2 (1995 ) : 208-2 22 .

33 . Peter J .Tay lor, "W orld C i t ies and Terri torial States: T he Rise an d Fall of their M utual i ty ," in Peter

Tay lor and P L Knox , eds . . Wo rld Cities in a Wo rld-System (Cambridge: Cambr idge Univers i ty Press , 1995) ;

A. Sacba r, "The G l oba l Econom y and W or l d C i t ie s ," in A. Sa cb a ra nd S . O dbe rg , ed s . . The W orld Economy

and the Spatial O rganization of Power {Aldershot: Avebury, 1990).

3 4 . Saskia Sassen, Globalization and its Discountents (New York: New York Press, 1998) : Cha p ter O ne

and Ten .

3 5 . Sassen (199 8) op. cit.: Par t One ; Rona l d Ske l don , Reluctant Exiles? Migration from Hog Kong and the

New Overseas Chinese (Armonk , New York : M.E. Sharpe , 1994) .

36 . Frank B oni l la , Edwin M elendez , R ebecca M orales , and M ar ia de los Angeles Torres , BorderUss Bor-

ders: US. Latinos, Latin Am ericans, and the Paradox of Interdependence (Ph i l adelph ia : Temple Univers i ty

Press, 1989). Sassen (2000a, b) , op. cit.; Sassen (1998), op. cit.: C h a p t e r O n e .3 7 . Ira Katznelson, Marxism in the City (Oxford a nd New York: Clare ndo n Press and Oxford Univers i ty

Press, 1992) .

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SASSEN, Saskia. the Global City Brown