http://www.citylab.com/work/2016/10/the-seven-types-of-global-cities-brookings/502994/
http://www.pbs.org/newshour/bb/will-department-justices-crackdown-credit-suisse-lead-bank-prosecutions/
Services
Key Issue 1: Where Did Services Originate?
Key Issue 2: Where Are Contemporary Services Located?
In Early Rural Settlements
In Early Urban Settlements
Three Types of Services
Tertiary/Service Sector = 85% of jobs in USA
Consumer Services = 44%
Business Services = 24%
Public Services = 17%
Earliest Public Services
- Soldiers for defense
- Walls for Protection
Today Global Pop is Equally Divided
- 2008 may have been a watershed
In Urban Settlements
In Rural Settlements
Earliest Consumer Services
- Burial
- Religious Services
- Household Servics as wome dominated "Home and Hearth"
- Manufacturing of tools, cloths, containers, fuel, weapons, etc.
- followed by
- schools, libraries, theatres, museums,
Services in Ancient Cities (Fertile Crescent, Egypt, China, Indus Valley)
- Ur (Mesopotamia) -
- Earliest example of urban planning
- Greek City States (Knossos, Mycenae, Troy, Athens, Alexandrea)
- Developement Western Civilization (Culture, Philosophy, etc)
- Earliest true "urban" centers.
- Rome
- Cities within the empire were modeled in Rome's image
- Centers of administration, military, and other public and consumer services for the province.
- Romans were masters of administration (coins, laws, taxes, defense, etc) and public works projects (roads, aqueducts, etc.)
- When Rome fell, urban "civilized" life declined sharply (Dark Ages)
Services in Medieval Cities
- Expanding Trade Networks propted urban revival after 1000A.D. in Europe.
- Revived and espanded road, river, and sea transportation networks. (Hanseatic League, N. Italy)
- Walled Cities, Dense Urban Architecture, Central Public Square.
Earliest Business Services
- Settlements: regulated terms of transactions, set fair prices, kept accurage records, created and maintained a currency system.
Clustered Rural Settlement
- Hamlet or Village
- Circular Pattern vs. Linear Pattern
- New England
- Central Commons
- Match whole group settlement patterns and group land grants
- Useful for defense (Indians) and the reinforcing of common cultural/religious values
- Pop Growth = "new" settlements
Dispersed Rural Settlements
- Common in Mid Atlantic, Midwest, and Southern American Colonies
- heterogeneous groups
- individual arrival and settlement
- private purchases of land
- Contemporary
- Machinery makes clustered patterns inefficient
- New England changes in mid 1700's.
- Population growth used up all avaliable land from which to establish new villages
- Weakened cultural bonds
Louis Wirth (1930')
- Urban dweller follows a different way of life
- Size (Many daily interactions "anonymous" or "contractual")
- Population Density (Job Specialization/Professions & Hightened Competitiveness)
- Heterogeneous Population
- More variety of people and always a group of like minded individuals out there
- Less Social Pressure to Conform ? More freedome to experiment with professions, entertainment, or personal beliefs
- Irony = with more freedom/independence in a city also comes an increases sense of isolation. A greater feeling that others are indifferent or reserved
- Wirth's distinctions may hold true for LDCs today but for MDCs almost everyone is "urban" minded.
Urbanization
- large % of people in cities reflects a country's level of developement.
- MDCs 3/4th urban vs LDCs 2/5th urban - Latin America is the exception
- Do MDCs have room for further urbanization?
- Having largest world cities does not make a nation an MDC, may just reflect total population
- 8 of 10 of the largest cities in the world are in LDCs - Buenos Aires, Delhi, Dhaka, Calcutta, Mexico City, Mumbai, Sao Paulo, and Shanghai. New York and Tokyo are in the MDCs.
Key Issue 4: Why Do Business Services Cluster in Large Settlements?
Key Issue 3: Why Are Consumer Services Distributed in a Regular Pattern?
Hierarchy of Business Services
Economic Base of Settlements
Central Place Theory
Market-Area Analysis
Heirarchy of Services and Settlements
Business Services in LDC's (peripheral regions)
How to identify the most profitable location for a consumer service
- Central Place (node) with Market Area (hinterland) surrounding it.
- Assumes people prefer the nearest location for services
- In the continental 48 there are 171 functional regions based on commuting hubs = "Daily urban system"
Nesting Pattern =
- Uses central place theory to map out hexagonal market areas of various sizes.
- this pattern often reflect real world distribution
Market Area must consider...
- Range (max distance people are willing to travel) - perhaps best reflect in time traveled by car - may not be a circle
- Threshold (minimum demand required to be profitable)
- consider relevant demographic info of customers
- Age, Gender, Wealth, Family Structure (single, married, children)
Profitability
- 1) Compute the range
- 2) Compute the threshold
- 3) Draw the Market Area
- irregular shaped for variation in travel time
- account for competitors = larger range or threshold may be required
Optimal Location = minimizes distance for the largest number of people
- Linear Settlment = "gravity model" = best location subject to size and distance
- Nonlinear Settlement = apply "gravity model" to multiple avaliable locations
“City Centered” (TIME, Oct 21, 2010 ) by Bruce Katz. - Play Video Clip
Basic Industries = outside city consumption - key to expanding a cities economy
Non-Basic Industries = domestic consumption (consumer products)
Specialization of Cities
- 1) Durable Manufacturing
- 2) Nondurable Manufacturing
- 3) Services (attractive to "rust belt" cities)
- Business Services
- Consumer Services
- Public Services
- 4) Primary Sector (Mining)
Distribution of Talent
- US competitive advantage? - willingness to relocate for work
- Primary pull factor to a city = work or culture
- High Cultural Diversity tends toward Higher Talent
- "Talented" are the most innovative and most likely to begin new businesses
Rank-Size Distribution of Settlements
- Ranking cities from largest to smallest in terms of population produces a regular pattern.
- Rank-Size Rule
- a country's nth-largest settlement is 1/nth the population of the largest settlement.
- Plot out on line-graph. USA and a handful of others follows this rule.
- Absence of Rank-Size distribution may mean, especially in an LDC, that the country lacks the wealth and/or ability to provide goods and services to everyone.
- Primate City Rule
- Country's largest city has more than twice as many people as the next largest.
- Primate Cities include (Copehagen, London, Bucharest)
- Periodic Market
- Dominant in LDC's - purchasing power too low to support full time market
- In MDC's - urban farmers markets
Offshore Financial Services
- Typically Islands and Microstates
- Tax havens and/or shelters
- Caymans, U.S. Virgin Islands, Bahamas, Turks & Caicos, Seychelles, Manaco, Liechtenstein, Panama, Bahrain, Liberia.
Back-office Functions = "Business Process Outsourcing"
- Routine clerical activities
- Data Entry, Insurance and Payment Processing, Billing, Technical Inquiry
- No longer in the same facility as management
- Rent Costs
- Improved Tech (Telecommunications)
- Many LDCs offer
- Low Wages
- English speakers exposed to English/American cultural norms and preferences
World Cities
- Centers of finance, business, communication, law, and entertainment/tourism.
- Growing in importance, not shrinking
- Dominant World Cities
- New York, London, Tokyo
- largest cities in MDC regions
- center of the most important stock markets
- centers of finance and business
- Major World Cities
- Chicago, LA, Washington, Brussels, Frankfurt, Paris, Sao Paulo, and Singapore
- Secondary World Cities
Command and Control Centers
Specialized Producer-Service Centers
- R&D or Industrial Specialization
- Detroit (Auto)
- Pittsburgh (Steel)
- Rochester (Office Equipment)
- San Jose (Semiconductors)
- Centers of Gov and Education
- Albany, Madison, Raleigh-Durham
Dependent Centers
- Resort or Retirement Centers (Sunbelt)
- Manufacturing Centers (Rustbelt)
- Military Centers (South and West)
- Mining Centers