The role of word cities as powerful centres of economic and cultural authority.
A world city is a large city that has outstripped its national network and become part of an international global system as a centre for command and control. The role of world cities such as London has rapidly changed to become and essential component for the multiplicity of linkages and interconnections that sustain the contemporary world economy and social and political systems. Thus their role has extended beyond their role based on trade relations largely controlled by nation states to a more global economy.
The economic role of world cities includes its role as a command point in the organisation of the global economy, as the headquarters of many TNC's and large national corporations. For example Tokyo is base for 17 of the top 100 TNC's and New York has 11. In association world cities are also the headquarters for many International Government Organisations, for example the World Tourist Organisation in New York and the Organisation for Economic Cooperation and Development in Paris.
World cities are also key locations for a wide range of financial services, with all the major stock exchanges located in world cities. For example New York is the major city in the world for the trading of equities and government bonds. Similarly they are centres for banking and associated financial services, with the largest banks in the world having their headquarters in world cities, for example London and New York.
World Cities are also key locations for specialised service firms, which have replaced manufacturing as the leading economic sector, for example finance, law, accounting and advertising. They are also markets for a vast range of goods and services, with extraordinary purchasing power. For example streets such as Fifth Avenue in New York are famous for their retailing of very expensive goods.
An examination of London, reveals that it is one of the world's greatest cities, an important centre of financial authority and control. Since the 16th century London's financial district known as “Square Mile” has become one of the world's most important business centres. Along with New York and Tokyo, London is one of three main financial centres in the world, as a major centre for euro trading since its introduction in 1999. London plays a role as a strong global position in a range of financial markets. For example London has cross-borderer lending than any other country, with nearly 600 foreign banks in the city, such as Bank of America and Citi Bank. In terms of its insurance industry, London has the third largest in the world, a global market leader in aviation and marine insurance. London also has more foreign exchange companies listed on the ASX than any other city, with a daily turnover of approximately 30%. In terms of employment, Square Mile employs 600,000 people directly and draws on business command and control functions with employs a further 20,000 people. London is also the key location of specialised law firms such as Clifford Chance and professional associations such as the British Medical Association.
World Cities also exert a powerful cultural role by their ability to generate and spread ideas, values and influence cultural processes. They have a social infrastructure that facilitates contact between people and exchange information, where they have office buildings, international hotels, conference centres, prestige residencies and distinct architectural design. This social structure is supported by sophisticated transport and information systems. For example London has many international hotels down the West end, a sophisticated transport network through its underground train system, “the tube” and its International Airport, Heathrow. It also has office buildings in the docklands area, that was previously in decay. London also has prestige residencies such as Notting Hill and Chelsea
Another cultural role of world cities is the range of cultural facilities and entertainment they provide. World cities have theatres, opera houses and sport facilities and also host major cultural and sporting events. London supports this cultural role through its cinemas and theatres down the West end and its tourist destinations with cultural aspects such as the British Museum, Westminster Abby, and The National Gallery, Madam Tussaund's and London's Wax Works. London's cultural industry contributes 7.5 million pounds a year to the city's economy and employs more than 215,000 people. London also has a distinctive cultural lifestyle, typical of a world city. For example Soho is home to a predominantly gay community.
Thus it is the significant role of world cities such as London that allows such diversity to be brought not only to world cities but also to countries worldwide. Their vital function is an essential component for the multiplicity of linkages and interconnections that sustain the contemporary world economy and social and political systems. Thus whist world cities are frequently not the largest population wise, their significance as powerful centres of economic and cultural authority. should not be underestimated.
