The Infrastructure in the Global City and Inequality - Essay Example

? SOCIOLOGY By of the of the of the School 28 November Global and Inequality Introduction Global cities have been defined by Renn as the cities developed as a result of scattered production (2012). The global production requires new setups of financial and production services for management. Due to their complexities’, they require corresponding complex management coupled with managers with specialized skills. Specialized talents and firms with similar specialties cluster in similar cities so as to carry out specific responsibilities; this subjects every global city to being unique from the other and due to different specializations, results in some forms of inequalities. Inequality takes many forms which to a large extent, go hand in hand with globalization. As noted by Lawrence, globalization entails technological changes, de-unionization, change of social norms, immigration, modification of corporate governance, and industrialization (2008, p.6). These factors are arguably associated with what makes globalization fail to shake off inequality; instead it alleviates it to a higher level. Inequality comes in form of many things and over the years, has been getting wider and wider in various parts of the world. Socio-economic inequality led by income and wealth has been a long term public concern among politicians, economists, policy makers amongst many concerned individuals. The exceptional prospective for wealth establishment, entrepreneurship, and innovations has often led to persistent socio-economic inequalities. The world was originally a universe encompassing the human race with equal opportunities and chances of advancement in life, but given some length of time, others were able to work hard, while others were left languishing in poverty. This was the origin of different kinds of inequalities. How the Global City causes Inequality The emergence of the global city has re-invented the new phase of inequality. Sassen says that in many countries, “the leading business center is also the leading concentration of headquarters” (2005, p. 29). This is the setup and along with it comes competition in the free markets when the issue of business advantages is factored in, then some of the people who cannot compete favorably are not able to make much success in life just like their counterparts; as a result, there is a rise of a class system comprising of the wealthy, the middle level, and the poor. Setting up of a global city leads to the globalization of economic activities, which is a by-product of the new type of organizational structure (Sassen, 2005). The infrastructure in the global city brings to attention many tourists, a sector that has been described as a fastest growing industry. It is one of the new sources of wealth creation. However, there has been an equal criticism raised against the negative impact that tourism has caused regarding the issue of inequality. Cole and Morgan say that “during an ESRC seminar series on tourism, inequality, and social justice in 2007, the level of interest and the number of researchers actively engaged in research about tourism and in equality became apparent” (2010, p. xv). Social inequality is projected to widen, based on the assumptions that the dynamics caused by modernization, globalization, and social change affect the social structure and provide new possibilities of social arrangement. Increasing inequality is by no means an inevitable consequence of emergence of global cities. A significant intervening variable to eradicate inequality is the government. The long time economies had particular conditions that made them possible. As given by Sassen, these have been characterized by the cross border economies such as capital flows, labor, goods, and raw materials; in most cases, they were intervened within an interstate system whereby they were under the national states (2005). What differentiates the current phase of the economy is the rise of information technology, as well as flexibility and liquidity of capital. The changes have largely contributed to the growth of global cities. Other changes regarding the national economies are the introduction of foreign farms and growing participants in the global markets. Global cities are closely related to privatization, which has caused the weakening of the national units. The creation of global cities has engulfed the sub-national entities, yielding what is known as the digitalized markets, as well as free trade blocks. Sassen points out that “the globalization of economic activity entails a new type of organizational structure” (2005, p.28). The structures referred to being the conceptual architecture. Needless to say, the current global cities can be compared to the world cities, though some are yet to come to par. There are various hypotheses that have been developed. They describe the global city and to a large extent, provide evidence of how the issue of inequality is factored in. The first hypothesis is the geographical dispersal of economic activities, which is a key factor for feeding the growth and at the same time, gives a greater importance to the central corporate functions. The wide spread operations of the firm in a region translates to more complexity in terms of its function. The complexities created lead to major discrepancies. The issue of inequality appears when it comes to the differences in the mode of managing, coordinating, and financing firm’s operations. The second hypothesis has it that as a result of increased central functions in a global firm, the global firm is forced to outsource services from expert service firms like accounting, communications, legal, and other services. According to Sassen, a global city’s headquarters is not based in one locality; rather, there is another key site where the headquarters contract to produce specialized services (2005). This organization has raised questions amongst many scholars such as the geographers, sociologists, and anthropologists, as they question the historical nature of globalization and wonder how unique it is (Saunier and Ewen, 2008). Historians recount the past youthful age that characterized a lot of interconnections, and globalization was placing the current system of migration in jeopardy. Krause and Petro are in support of this idea, and they argue that “globalization is heterogeneous, diachronous, polyvocal, and uneven” (2003, p.2). The growth and need for specialization has led to a high level of professionals, as well as the increase in profits by the specialized service firms. Sassen has taken note of this with a worry that it can lead to in equality; she notes that “high profit making specialized service firms have the effect of raising the degree of special and socio- economic inequality evident in these cities” (2005, p.30). There is a growing range of economic activities with some services demanding better pays hence higher profits, while others are less competitive leading to lower profits. Further advantages that a service firm can exhibit over the other are the range of talent which determines the outputs and competitiveness of the firm. Some activities such as manufacturing services demand investment in talents; otherwise the competition for the demand of services will not act in their favor. Dynamism in the global cities requires formalization of economic activities for the purpose of enhancing their demand in the cities. Competition between the high profit making firms with the low profit making firms poses the question of unfairness. It emerges that some economic firms may remain at the top of the system for as long as it has not increased its chances of competitiveness in the market. Sassen seems to have an answer to this ambiguity as she suggests that “informalization part of all production and distribution activities, including services, is one way of surviving under these conditions” (2005, p.30). As far as inequality promotion is concerned, it is evident that the structures of global cities are in such a way that they are organized in a categorical manner, based on their economic powers. The industries and firms set up in these cities are conceptualized in terms of their outputs, as well as the concentration of the number of expertise they constitute, rather than the terms of production entailed and the number of unprofessional working opportunities available in these systems. While many have the expectation that globalization of cities could mean the rise of single place, there are disagreements with some refuting whether globalization has become extensive as claimed. The observation here supports the suspicion that with globalization, there has been increased modernization of culture as well as politics, and in this case, fragmentation and differences dominate (Isin, 2000). It is interesting to note that due to globalization, whereas some societies and social groups are becoming increasingly entangled together, others are on the other side become increasingly marginalized. Eade ridicules the treatment of groups of people as though they have human like qualities; he observes that although these groupings are important in expressing unity when competing for scarce resources, groupings give a chance for discrimination against one another (2000). The groupings however have resulted in an avenue of discriminating minorities, while the majorities use their tyranny of numbers to challenge for power. With globalization of cities, there have been negative consequences affecting the population; such effects are like the forced migration. According to Hamilton, refugees have had no option but to leave their places of residence for unknown destinations (2001). The main aim of the forced eviction is to make the refugees give way for expansion of the city. Their place is taken by the rich who can afford to purchase the lands and have investments in the city. However, there are other conditions that have the framework allowing opportunities for one to choose when and where to move, but the issue is whether this structural condition as well, provides a framework for equal chances of eviction and choices. Global city regions seem to take the shape of socio-political geography; these kinds of setup provide a connection between one global city location to the other. These links act like nodes whereby various activities take place through them. Whereas these nodes are important in the development of the global city and because of the links that they provide, it poses a bigger challenge of complexities. Isin is quick to point out that “events that take place in these nodes resonate beyond their immediate spheres, precisely because they are nodes within highly complex and overlapping networks rather than self-contained and isolated territories” (2000, n.p.). Due to this, globalization is not only a continuation of capitalism though in a modern version but it’s a transformation of politics, economy, and culture into what Hoogvelt refers to as “ new regimes of accumulation and modes of regulation” (1997, cited in Isin, 2000, n.p.). The observation made by many regarding globalization is a view that it wears down national trajectories and paves way to the vanishing of religion and tradition. Talking of these two events, they are credited for holding good morals that have been admired in the society. However, their disappearance shows that they will be paving way to impunity, with introduction of services that will yield inequality in society. Some cities are observing the strange events that endanger the basic civil and political rights; they are being promoted by the new authorities. As reported by Isin, new rights such as sexual and technological rights are being demanded (2000). Globalization of London city provides clear evidence showing the fact that a part from the positives that globalization is able to come up with, inequality has played part. Eade point out that “prosperity of post imperial London has not eliminated deep social and economic inequalities” (2000, p. 2). In his argument, he lists down the evidences of social polarization as a result of globalization; these are homelessness and poverty that have been accelerated by the increasing influence of national economies by the global market (Eade, 2000). Further evidence retrieved from transformation of London suggests that the level of isolation of people along the social division has been fueled by implementation of controversial political reforms. With many still languishing in poverty, others are divided along race, ethnicity, and gender (Eade, 2000). Conclusion The rise of the global city has by far demonstrated change in lifestyle, from the noble life where there was less competition for resources, to a more advanced means of competition. Only those who can compete favorably can survive the wave of change. Professionalism is the major subject though wealth and possession of property are also the features that matter. People are classified based on wealth, and as demonstrated by many scholars, global cities will increasingly grow and the gap of inequality will consequently widen. It is a worrying incidence, but an urgent addressing by responsible bodies may help resolve the issue. Reference List Cole, S. and Morgan N., 2010. Tourism and Inequality: Problems and Prospects. Oxfordshire: CABI Publications. Eade, J., 2000. Placing London: From Imperial Capital to Global City. London: Berghahn Publishers. Hamilton, N., 2001. Seeking Community in a Global City: Guatemalans and Salvadorans in Los Angeles. Philadelphia: Temple University Press. Isin, E. F., 2013. Democracy, Citizenship and the Global City. Oxon: Routledge 2 Park Square Publishers. Krause, L. and Petro, P., 2003. Global Cities: Cinema, Architecture, and Urbanism in a Digital Age. Piscatway: Rutgers University Press. Lawrence, R. Z., 2008. Blue- Collar Blues: Is Trade to Blame for rising US Income Inequality? Washington: Peterson Institute for International Economics. Renn, A. M., 2012. What is a global city? [online] Available at: [Accessed 28 November 2011]. Sassen, S., 2005. The Global City: Introducing a Concept. [pdf] Available at [Accessed 28 November 2011]. Saunier, P. and Ewen, S., 2008. Another global city: Historical Explorations into the Transnational Municipal Moment, 1850-2000. Basingtoke: Palgrave Macmillan. Read More