Global Cities Notes Part 3 U.K./London China/Shenzhen How to handle this material? • I will not follow the readings page by page, but will pick and choose and combine material • The notes will also contain material that is not in the readings (history, in particular) • The notes are your most important guide to the material • The readings are supplemental and absolutely necessary LONDON London in 1700 The Industrial Revolution • In 1800 London at the heart of world trade • When Queen Victoria died in 1901, London was the center of a large, powerful Empire – Empire and industry became the source of great wealth • At the core were technological innovations – By the 1840's gas to light street lamps – Electric light was first used in 1883 – By the 1840's there were horse drawn buses – From the 1870's horse drawn trams – The world first underground railway opened in 1862 – The system was electrified in 1890-1905 • Features of industrial cities (compare to American cities of early 20th century) – Much bigger in size (commuting dimensions) – Public transportation (Trolleys, subways, trains) – Crowded and expensive Central Business District – Separation of home and workplace (commuting city) – Segregated land uses (offices here, factories there, residences over there .) – Immigration and rural-to-urban migration – Segregation by income and by ethnicity/race – Old/poor districts versus new/nice districts “Shock Cities” • Poverty, slums, crime, disease, pollution etc. • England’s Industrial Revolution: – London, Manchester, Birmingham (Dickens, Marx) • Russia’s pre-Revolution inequality: – St. Petersburg (Tolstoy, Dostoyevsky) • USA Industrial Revolution and Immigration: – NYC, Chicago (Jane Addams, Upton Sinclair) • USA today: – Los Angeles? (Mike Davis) • Third World Cities: – Mumbai, Lagos, Sao Paulo London Slums, 19th century London Today • Deindustrialization caused havoc (we will discuss this again when we reach Philadelphia) • Compounded by WWII and loss of empire • Now, like New York, London is a world financial center • A new city—multiracial, multicultural, polyglot, global, unequal, racialized—is emerging • Started with “big bang” in 1987 – Opening up of the stock exchange • Three main hubs – The “City” – Canary Wharf, the docklands that died along with the East End – The West End • Specializes in – Securities – Hedge funds London as a Financial Center Clustering • Costs (and wages) are very high – Property – Transportation • Cluster advantages are even higher – Large, liquid markets that • Drive down trading costs • Reduce risks by allowing large deals – External services (lawyers, accountants, etc.) – Innovation – “Light touch” regulation What Really Matters Canary Wharf / Docklands Think about the following questions: • What US city is London most like? Why? • Why did London have to reinvent itself from an industrial to a postindustrial city? • Is London’s reinvention as a global financial hub sustainable? • What are the constraints on London’s continued significance? • How does the recent financial meltdown factor into this analysis? CHINA and SHENZHEN History Colonial and Imperial Period • 1839-1842 First Opium War • 1842 Treaty of Nanjing; China was forced to open five ports for international trade • Shanghai was one; Canton (near Shenzhen) was another • 1856-1860 Second Opium War • More treaty ports Shanghai International Settlement • In 1920s, 60,000 foreigners, mostly prosperous, living off trade • Refuge for European Jews in the 1930s • 4 million people total; one of the largest cities in the world • International party town; Nanking Road playground Revolution and Communism • 1925 China's Communist Party founded • 1927 Anti-Imperialist movement • 1937-1945 Japanese occupation • 1949-1956 Revolution and land reform – 1953 All factories were nationalized • 1957-1961 Great Leap Forward and the Great Famine • 1962-64 Post-Famine recovery • 1966-1978 Cultural Revolution and transition to reform • 1979-1984 Rural reform • 1985- Opening up – Trade, foreign investment The Old China The New China Reforms and SEZs • “To get rich is glorious” says Deng Xiaoping in 1978 • Reforms begin with rural sector first (away from collectivized farming) • and the one-child policy • Coast-based development initiatives started in 1980 • Most significant was creation of Special Economic Zones (SEZs) • SEZs are like countries within countries, with separate laws (for labor, trade, taxation, etc.) • Greater local authority on taxation and international trade activities • In China, SEZ normally refers to seven specific zones: Shenzhen, Zhuhai, Shantou, Xiamen, Hainan, Shanghai Pudong New Area, and Tianjin Binhai New Area • Also includes technological development zones (ETDZs), free trade zones (FTZs), export-processing zones (EPZs), high-tech industrial development zones (HIDZs) • Four economic principles – Reliance on attracting and utilizing foreign capital – Joint ventures, partnerships, and foreign-owned enterprises – Products are primarily export-oriented – Economic activities are primarily driven by market Geography of the New Chinese Economy And then there is Shenzhen • Shenzhen is a Special Economic Zone (SEZ) • It adjoins Hong Kong, a Nanjing Treaty port • And Guangzhou (Canton) and Zhuhai, also SEZ’s Shenzen is part of the Pearl River Megalopolis, a giant system of cities with a major financial center in Hong Kong and major manufacturing elsewhere, especially Shenzen and Guangzhou Foxconn • HQ in Taiwan, manufacturing in Shenzhen (and other cities) • 270,000 workers in Shenzhen • 3,000 pigs killed daily by caterers • What do they make? – Mac, iPod, iPhone, iPad – Intel motherboards – Computers for Dell, HP – Playstation, Xbox, Wii – Cellphones (Motorola, Nokia) – Kindle (Amazon) Longhua Science and Technology park, 1 sq. mile Foxconn’s factories Recreation, in-house Think about the following questions: • How did Shenzhen go from a population of 300K in the early 1980s’ to about 11 mn in the mid 2000’s? • Why is Shenzhen such a successful industrial model? • How long can this model run? What are the constraints on it running “forever”? • What are consequences—good and bad—for China as a whole? • What is the “China price”? • Is China’s industrialization “good” for the US? • How should developed nations adapt to the “rise of the rest”?