London, a global city

The term global city was first used in 1991 by Saskia Sassen, a sociologist. A global city is a city generally considered to be an important node in the global economic system, a major global centre of the world.

Global cities are hubs, around which people, capital, information, and goods revolve. They concentrate market, command, and innovation. They are connected together, they unequally participate in the globalised system, and mirror the globalisation process effects.

To what extent is London a global city? Does the city affect globalisation and is it affected by globalisation? And is it a leading city in globalisation? First, we first need to characterise London, as it is a global city which played an early role in the globalised world. Then, we will study the key political, economic, and social characteristics of functions London centralise today. To finish, we will describe challenges London has to face, some of them global cities usually have to some extent.

#London in early globalisation

#A. Recent history

#a) The centre of a powerful empire

From 1815, London has maritime and naval supremacy and becomes the centre of the world. Amsterdam is a competitor, but not as powerful as it used to be.

France has ceded many colonies to Britain, which strengthen London as the capital of globalisation.

Britain is leading a policy of ‘splendid isolation’.

#b) Rapid industrialisation

Industrialisation in Britain was faster than in France or in Germany. Industrialisation generally strengthens urban transition. Many workers had to move to cities to look for employment. Agriculture modernised too, it was more and more mechanised, as a consequence of industrialisation. This made the urban transition even a wave to the capital city.

London then attracted more workers, but also more industrialists, and with the development of financial capitalism to support the growth of industries, services became more significant, making London the centre of the world in terms of human and capital flows.

#The current status of London

#a) Ranking

There are several indices attempting to establish a ranking of global cities, such as GaWC (Globalisation and World Cities Research Network), Global City Competitiveness Index, Global City Lab, Global Cities Initiatives, etc.

They do not necessarily agree on the final rank of London, but they always depict London as a leader of globalisation. Indices or groups of researchers do not value the same metrics to evaluate a global city power and influence. But in many cases, if London is not the first, it is in a clear leading position.

#b) Growing competition?

If the centre of globalisation first moved to New York, population trends and path of development have shown a shift of power from the West to the East, with a dramatic development of megacities, first in Asia, then in Africa. Megacities and metropolises of emerging countries are very serious competitors.

The mechanism of globalisation is certainly creating more and more links and competition between global metropolises. But in this logic, territories and then metropolises do strengthen and advertise their competitive advantages.

London has not lost its attractiveness. It delivers a clear message of openness for TNCs, foreign direct investments, and HNWI (High-Net-Worth Individuals). The city has grown as a hub of expertise for new technology, whereas some megacities in Asia and Africa tend to be more active in the industry, as an inevitable phase of development.