Globalization & The Role of Global Cities

1. Globalization & The Role of Global Cities

2. World Systems Theory

3. World Systems Theory • Coined by Sociologist Immanuel Wallerstein in the 1970s • Identifies capitalist economy (or world-economy), since the 16th century, as composed of a single division of labor. • Under single division of labor exist different modes that may include: feudal, slave, wage labor. • Systemic Inequality is sustained by a three-layered division of nation-states: • a. Core • b. Semi-periphery • c. Periphery • Governance of World System can be shaped by a common political system, world empire, and when it does not, it is run by a world economy.

4. World-System Theory’s (cont.) Semi-periphery Periphery TCC • United States • European Union • Canada • Japan • China • Russian Federation • Oil Rich Arab Nations

5. With Erosion of Keynesian State Capital goes Global • With the help of the state capital adopts flexible labor policies that cheapen labor. • Capital breaks free of nation state constraints to accumulation. • Industrial production is no longer a “growth” sector. • Financial speculation replaces industrial production as primary source of capital accumulation, but creates increased instability. • Due to erosion of welfare-state, and increased financial instability, participation of women in the labor force increases, but with diminished earnings and labor rights.

6. Remapping the Global Geography of Globalization: From World Systems to Networked Geography

7. New “Networked” Geography of Power Global Cities become key sites for development of networked functions of key services that undergird the global economy (legal services, accounting, financial, insurance). Globalization homogenizes standards - for managing, for accounting, for building state-of-the-art office districts to create Global Cities. Global Cities produce global capabilities that enable trade and finance, serve as bridges between national economies and global economy.

8. Informalization • Increased proliferation of informal economy is linked to key features of urban capitalism. • Deregulation in finance and other economic sectors pursue ‘flexibility and innovation’ for creation of greater profits. • Deregulation of finance is mirrored by informal service economy of creative professionals (artists, architects, designers, event choreographers) and labor intensive sectors (janitorial services and childcare) in global cities.

9. Informality • 2/5ths of economically active population in developing world • In Latin America the informal economy employs 57% of the workforce • Mike Davis, Planet of Slums, Verso, New York 2007.

10. The Global City as Space for Increased Political Alignments • Transnational movement of high-wage and low-wage labor (or the Third World in the First World) • Immigrant populations and their kin establish transnational solidarities • Engender new claims by immigrants and subordinated minorities

11. The World Banks Approach to Global Health & Structural Adjustment Policies (SAPs)

12. Arguments made by World Bank to Support Health-Sector Strategy • Public sector is inefficient and anti-poor. • Private providers provide most ambulatory health.

13. The World Bank & Health • Bank lending to Third World coincides with debt crisis of 70’s and 80’s • Weaknesses of the World Bank’s Health Strategy: • Focused on lending money rather than achieving impact • Provides almost no financial resources to fund local monitoring and evaluation (M&E) studies and implementation support to task teams and clients. • Lending to health sector has shrunk by one-third. • Number of staff has fallen 15 percent (243 to 206) • Aid to HIV/AIDS doubled between 2000 and 2004, but share devoted to primary care dropped by almost half • Promotes contradictory message: • Called for more private funding on health • Governments to prioritize “basic package” of services (i.e. immunization programs).

14. Chang – Disposable Domestics • Structural Adjustment Policies fuel migration patterns. • Race, nationality and gender intersect in the health care industry in the US to further exploit third world women in the nursing profession. • Third World women face systemic financial constraints: (1).Need to pay high costs of immigration (2). Earnings are diminished due to remittances sent to family members (3). Ability to assist families through remittances diminishes as funds help to defray the costs of lack of social services previously provided by the state.

15. Immigration & Globalization • Racialization underpins informality • Feminization – term used to describe the erosion of the “family wage” that privileged male participation in the labor force with living wages and pension guarantees.

16. Scalar Hierarchies 1. subnational entities that exist hierarchically arranged within the nation-state (global cities) • 2. supranational scales (commodity chains, international trade)