Saskia Sassen | Global Cities

Summary

Saskia Sassen discusses the evolving role of global cities in an interconnected and digitized world. She highlights the shift from large corporations hiring full-time staff to relying on specialized intermediaries—lawyers, accountants, and financiers—to navigate global operations. As globalization expands, cities like Buenos Aires and Istanbul replicate the functions of major centers such as New York and London. This specialization, rather than a single global city, fosters a complex, differentiated urban landscape where economic, environmental, and political activism thrive. Sassen emphasizes how this specialized differentiation shapes the role of cities in the global economy.

Takeaways

• 😀 Saskia Sassen discusses the evolving role of cities in a globalized and digitized world, emphasizing their importance to firms, museums, and various corporate actors.
• 😀 The concept of intermediation is central to understanding how global firms operate today. Instead of hiring full-time staff for specialized knowledge, firms now rely on intermediaries for short-term, specialized services.
• 😀 Global firms need specific expertise in various regions (e.g., Mongolia, Argentina) but cannot afford full-time employees in those areas. This leads to the rise of intermediary services such as accounting, legal, and financial expertise.
• 😀 The intermediary function expands in global cities, becoming highly networked and powerful due to its dependence on specialized knowledge in finance, law, and other sectors.
• 😀 As globalization spreads, this intermediary function is replicated in other cities like Buenos Aires, Istanbul, and Chinese cities, although not always as robust as in cities like New York, London, or Hong Kong.
• 😀 The rise of global cities isn't limited to a single dominant city. There are multiple global financial centers, each with distinct roles and functions, such as London, Paris, and Frankfurt in Europe.
• 😀 Global cities like New York, London, and Tokyo act as hubs for various global functions, but they are differentiated by their specialized economic, cultural, and political roles.
• 😀 Specialized differentiation between global cities is a key theme. For example, Paris, Frankfurt, and London each have distinct financial and global city functions despite their proximity within Europe.
• 😀 There is a growing frustration among scholars and analysts about the tendency to overlook the highly specialized differentiation of global cities, which has often been misunderstood or neglected.
• 😀 While some cities (e.g., Frankfurt, Paris) may have gained or retained specific global city functions, smaller cities like Milan have lost these functions as the global economy continues to evolve.

Q & A

What is the central focus of Saskia Sassen's work discussed in this transcript?

Saskia Sassen focuses on the new role of cities in an increasingly globalized and digitized world, especially in relation to corporate and financial operations. She emphasizes the rise of intermediary functions in cities, such as law, finance, and accounting, that support global firms operating across multiple countries.

How did globalization change the way corporations operate, according to Sassen?

Globalization led to the need for corporations to access specialized knowledge and services without hiring full-time staff. Instead of maintaining in-house expertise, firms began relying on external intermediaries, such as accountants, lawyers, and financial experts, to provide the specialized knowledge required to operate in multiple countries.

What is the significance of intermediation in the global city model?

Intermediation refers to the creation of a complex operational space where firms can access specialized knowledge on a short-term, as-needed basis. This function is crucial in global cities, where firms need experts in various fields but do not require them on a permanent staff. It has become a highly networked and profitable sector, particularly in finance.

Why did Sassen mention the concept of 'intermediaries' in global cities?

Sassen mentioned intermediaries because they play a central role in the functioning of global cities. Intermediaries, especially in finance, law, and accounting, help firms navigate global markets by providing the necessary expertise. These sectors became highly influential and wealthy as global firms expanded their operations.

How did the role of cities evolve as globalization expanded to places like Buenos Aires and Istanbul?

As globalization spread, cities in different parts of the world, such as Buenos Aires, Istanbul, and others, began to replicate the intermediation functions previously seen in major global cities like New York, London, and Tokyo. While these cities may not have reached the same scale as the leading global cities, they became essential platforms for firms to access global knowledge and expertise.

What does Sassen mean by 'global city functions'?

Global city functions refer to the specific roles that cities play in the global economy, including serving as hubs for finance, law, and corporate intermediation. These functions are vital for global firms operating across multiple countries and are characterized by highly specialized knowledge networks that facilitate international business.

Why does Sassen argue against the idea of a single 'uber' global city?

Sassen argues that there is no single 'uber' global city because different cities perform distinct and specialized roles in the global economy. For example, London, Paris, and Frankfurt are major financial centers in Europe, but each has a unique function. This specialization and differentiation among cities is essential for the overall functioning of the global economy.

What is the role of environmental activism in global cities?

Global cities also serve as centers for activism, where groups advocate for causes such as environmental protection. Although these causes may be geographically distant, such as rainforest preservation, global cities become the platforms where activists engage with corporations and other influential actors to effect change.

How does Sassen differentiate between global cities like Paris, London, and Frankfurt?

Sassen differentiates these cities based on their unique roles and functions within the global economy. While all three are major financial centers, each city has distinct characteristics in terms of the industries and services it supports. For instance, Paris may focus more on luxury industries and culture, while Frankfurt is more centered on financial markets.

Why is the concept of 'specialized differentiation' important in Sassen's analysis of global cities?

Specialized differentiation is important because it explains why multiple global cities can exist and thrive simultaneously. Each city offers a unique set of specialized services and knowledge, allowing firms to access a wide range of expertise across different locations. This specialization helps maintain the diversity and functionality of global cities.