Tag Archives: global cities

Washington D.C., not Chicago or LA, the real “second city” of the United States?

Posted on by

Perhaps Chicago should be worried about moving to #7 in a ranking of global cities: here is an argument that the real “second city” of the United States is not Chicago or Los Angeles but rather Washington D.C.

“I don’t think most people in the U.K.have any idea where Chicago is,” said Rowan Bridge, a BBC Radio producer who last year spent six months based in Washington D.C. “Most people in England think the United States consists of three cities — New York, Washington D.C., and Los Angeles — because they’re the ones that run the media, they’re the ones where the celebrities hang out, they’re the ones where the politicians are.”

Rosenthal notes that Chicago has long worried about its image, and it has never been a top global tourist destination, but a recent drop in international visitors highlights the challenge even a colossus like Chicago faces in getting its word out in a competitive global economy.

Reading this, it once again strikes me that the old urban hierarchy is being reordered by globalization and the dramatic expansion of the US federal government, to the disadvantage of Chicago and other cities. This, I believe, helps account for its recent struggle.

Joel Kotkin has tirelessly documented the remorseless rise of Washington, DC, rain or shine, in a manner defiant of business cycles. Washington, once a sort of commercial backwater, is now becoming much more a national capital of the type other countries have had…

So we have New York entrenched as America’s first city, and Washington, DC increasingly its new “Second City.” Los Angeles, which seems to have never quite recovered from the early 90s defense draw down, and Chicago with its 2000s malaise, seem to be the victims of DC’s rise. Another loser is Boston, which has seen its status as a financial hub decline and whose Route 128 corridor of tech, having first lost out to Silicon Valley, now appears to be losing out to NYC.

One way you could take this argument: politics and the power and money involved has increased in importance in recent decades. Hence, Washington D.C. has grown in importance because more is dependent on what takes place there. Interestingly, the rankings I discussed yesterday assign the lowest weight to the government: 30% is business activity, 30% is human capital, 15% for information exchange, 15% for cultural experience, and 10% for political engagement.

If that quote from Rowan Bridge accurately represents how people view the United States, what could Chicago do to stand out moving forward? Historically, Chicago has been known for several things. It was a true American boom city (particularly coming out of the Chicago Fire – this is clearly not the case today after population loss during the 2000s). It was and still is a transportation center as air, rail, truck, and ship traffic merge in the middle of the country. It has been known for financial innovations, such as selling and trading commodities, as well as architectural innovation (such as the International Style). Others have suggested it is “the most American city.” It has also been known for less noble things such as gangsters, segregation, corruption, the 1968 Democratic National Convention, and more recently, budget deficits. Mayor Emanuel and other leaders have work to do to help Chicago tread water and maintain its place among global cities…

In new Global Cities Index, Chicago drops a spot to #7

Posted on by

The 2012 Global Cities Index was released this week and Chicago dropped one spot to #7, swapping with Los Angeles:

In the rivalry between the world’s biggest cities, put another feather in the cap of New York. It bests London and Tokyo on a new Global Cities Index by A.T. Kearney and the Chicago Council on Global Affairs.

The ranking is based on five* key factors: business activity, human capital, information exchange, cultural experience, and political engagement. It covers the 66 largest cities around the world.

Paris, Tokyo, and Hong Kong round out the top five. Los Angeles is 6th, Chicago 7th, Washington, D.C. 10th, Boston 15th, Toronto 16th, and San Francisco 17th.

This new list is consistent with a ranking of the World’s Most Economically Powerful Cities, with Tokyo, New York, London, Chicago and Paris in the top five spots, published last fall here on Cities. While the leading global cities remain stable, globalization is increasing the turbulence and churning faced by other large world cities, as the study notes…

Read the article and also look at the top 66 cities in a chart (which includes the 2010 and 2008 rankings) – there is quite a gap between the top cities and everyone else. Also, Saskia Sassen offers some interesting analysis of “urban vectors” including this bit: “Washington, New York, and Chicago. These cities are becoming more important geopolitically than the United States is as a country.”

I don’t think Chicago should be worried about dropping a spot – there has been some small movement in the top 10 in recent rankings. At the same time, there is always a chance that Chicagoans might read a lot into this in their interest in remaining relevant.

See the full AT Kearney report here.

 

Sociology of gambling laboratory in Las Vegas

Posted on by

While Chicago might still be the urban laboratory of choice for some sociologists, a sociologist at UNLV talks about Las Vegas as a fantastic laboratory for studying human motivations and gambling:

We live in the largest gambling laboratory in the world. A sociologist who studies gambling in Las Vegas is probably like being a physicist and living in a vacuum. I tell all my students to sit on a bench and watch all the humanity. That’s why market research firms like to come to Las Vegas. In an hour and a half, they can meet 40 people from 40 countries and states. Humanity comes here…

You’re struck by the similarities and differences in various markets. Las Vegas is a sea of slot machines with a smattering of table games. Macau is a sea of table games with a smattering of slot machines. As a social scientist, you watch the different behaviors. In Macau, no one is consuming alcohol. There is always a calculus going on, where gamblers are demonstrating math skills while hoping to be smiled upon by the gods of chance. What’s fascinating is to contrast the Chinese gambler against the American or European gambler.Question: You recently authored a report that said Las Vegas could learn much from Houston. How?

Answer: Houston suffered a downturn when its main economy, oil production, moved overseas and became a global industry. The slump ended when Houston began exporting its intellectual capital.

Las Vegas could do the same thing as gaming becomes more international. In some ways, our companies are already doing that. Las Vegas can become the global command center of the international gaming industry. One way you do that is education. Of course, I’m completely biased but the gaming institute can play a leading role in this transformation.

I bet you could use gambling research in a lot of examples within a research methods class.

I’m intrigued by a couple of ideas mentioned above:

1. There are different cultural approaches to gambling. I should have known this but I don’t think I’ve ever thought about it before. It would be interesting to hear if Americans live up to typical stereotypes (confident, brash, etc.).

2. I wonder if social scientists would be allowed by casinos to conduct academic studies with gamblers/customers. I’m guessing this is likely off-limits unless the work could be beneficial to the casinos. If there are a lot of people already in Las Vegas who want to engage in gambling, why not let them do it in the context of monitored academic research?

3. What holds Las Vegas back from becoming a finance center? Gaming requires large flows of capital from both companies and visitors. To truly become a world-class city, this would seem to be a way the city could go by working with the money in innovative ways.

This reminds me of comments from sociologists after the American Sociological Association meetings were held there last August. Do most sociologists think the city is simply an oddity or are there real things that could be learned from the city (Sun Belt city, center of the gaming industry, ecological concerns, many foreclosures) and applied elsewhere?

When Aon leaves for London, is Chicago still a world class city?

Posted on by

With the news this week that Aon Corp. is moving its headquarters from Chicago to London, a familiar question arises: will Chicago take a hit to its image as a world class city?

“It is appropriate to ask that question, not as a general hand-wringing kind of thing, but in the classic 120-year or more tradition of Chicago,” said urban strategist Paul O’Connor, a former deputy director of the Illinois Department of Commerce and Economic Development who was founding executive director of the 13-year-old World Business Chicago.

“You do have a special case here in Chicago insofar as the business leadership has for at least 120 years been intimately involved in the strategic growth and development of the city as an international center,” O’Connor said. “This is a phenomenon you don’t find historically in any other big American city. So the capabilities of the leadership of Chicago business to affect long-term outcomes of global competitiveness and whether this remains an easy place to attract the top level of talent, that’s the core issue.”…

“There are underpinnings that matter,” O’Connor, now with architectural firm Skidmore, Owings & Merrill, said from China, where he’s working on a project. “You look through the board of Aon. These people were like the college of cardinals of Chicago boosters. So if you’ve got a good explanation that you can pick up (more money) by doing this, great. But if those college of cardinals of Chicago boosters don’t stay on it and make sure that you are a competitive business environment, then things do erode. … You’ve got to stay hungry.”…

“The thing you have to look out for is that you don’t slip (as a city in the world’s eyes),” O’Connor said. “That’s why everybody should be saying the rosary to make sure everything goes nicely at the NATO/G-8 (meetings set to bring international leaders and protesters to Chicago in May), so you don’t send bad messages. On the one hand, you have reality, which really matters. On the other, you have perception, which also matters, but I’d rather have reality over perception.”

The issue here seems to be perceptions, not the reality that Chicago still contains a number of headquarters. The reality is that Chicago truly is a world-class city – one 2010 ranking had Chicago at #6 in the world. The moves of highly visible companies might be problematic for politicians who have to create and defend a record on jobs but Aon moving to London will not knock down Chicago a notch unless multiple companies follow suit.

At the same time, perceptions are important. Maybe the better question to ask here is why Chicago needs to keep reaffirming its status as an important city. Perhaps it goes back to that “Second City” nickname that put Chicago behind New York but is also a reminder that Los Angeles has zoomed ahead in population (and status?) as well. Perhaps it is because Chicago knows it is part of the Rust Belt and has been a rare city that has been successful despite the loss of many manufacturing jobs. In the end, why doesn’t have Chicago have more confidence in its standing? The nervousness might motivate Chicago to pursue greater things but it also looks silly at times.

My verdict: Chicago will be fine. That doesn’t mean the city shouldn’t continue to try to woo new corporations or help encourage new start-ups. At the same time, Chicago should operate from a position of strength, selling the better aspects of Chicago, rather than a posture of weakness where any move might topple Chicago from the circle of great cities.

Rahm Emanuel says Chicago is “the most American city”

Posted on by

In announcing that a prestigious conference will be held next year in Chicago, Mayor Rahm Emanuel made an interesting statement about the city:

Mayor Rahm Emanuel announced today that Chicago will host the 12th World Summit of Nobel Peace Laureates this spring…

The event is expected to attract high profile leaders from around the globe. All former Nobel Peace Laureates will be invited to attend. It will be co-chaired by former Soviet President Mikhail Gorbachev and Walter Veltroni, the former mayor of Rome. Emanuel will serve as an honorary co-chair.

This event “has been held in Paris, it’s been held in Berlin, it’s been held in Rome,” Emanuel said. “And they picked, in my view the most American city in America, Chicago.”

Chicago was chosen “due to its rich heritage and international profile,” organizers said Thursday.

What exactly makes Chicago “the most American city”? Several reasons come to mind:

1. Chicago came to prominence during the late 1800s as Americans were expanding to the West Coast, the railroad became really important, and America became a larger player on the world stage. In these changes, Chicago helped lead the way as a major port connecting the Great Lakes to the Mississippi and becoming the railroad hub of the nation. Chicago was the boomtown of this era, growing from just over 112,000 people in 1860 to nearly 1.7 million in 1900.

1a. In comparison, the older cities of the Northeast, Boston, New York City, and Philadelphia are too dependent on the colonial era.

1b. However, one could make the case that Los Angeles (or maybe even Houston) is the quintessential American city of the 20th century with a rise of the suburbs, highways, culture industries, and a population shift to Sunbelt and West Coast. At the same time these things were happening, Chicago was also changing: its suburbs have continued to grow (and also experienced growth in high-tech/white collar jobs) even as the city has experienced the Rust Belt problems of white flight and the loss of manufacturing jobs.

2. Chicago embodies some of the best and worse of America. It’s skyline is beautiful and it features miles of parks along Lake Michigan. The downtown and Michigan Avenue area is relatively clean and full of tourists. Chicago is a prominent world city because of its finance industry. On the flipside, Chicago is well known for its segregation (bringing MLK to the city in 1966), corrupt politics, and crime/gangsters.

3. Chicago is middle America, not the more educated or stylish East or West Coast. It embodies American values of hard work and grittiness alongside success and entrepreneurship.

A side note: it will be a busy spring in Chicago with the G-8 and NATO meeting in Chicago not too long after this Nobel gathering.

Fermilab closes Tevatron; what’s the effect on nearby suburbs and the Chicago region?

Posted on by

The need for the Tevatron, a particle accelerator, at the Fermi National Accelerator Laboratory, known commonly as Fermilab, has been drastically reduced after the construction of the Large Hadron Collidor in Europe. Therefore, the Tevatron is being shut down and Fermilab is looking to transition to new areas of physics research. My question is this: what effect this will have on the nearby suburbs and the Chicago region?

The article says that several local politicians want to keep research at Fermilab going:

Fermilab will still have star quality, and the estimated 2,300 scientists there will continue playing a critical role in particle physics. The lab could even re-emerge a few decades from now as the leader, officials say.

However, one daunting hurdle remains: obtaining what may be hundreds of billions of dollars in federal funding that officials say is needed to guide the lab’s work into the next generation of research via two projects, known as Long-Baseline Neutrino Experiment and Project X…

Over the decades, the cost of upgrades at Fermi could reach hundreds of billions of dollars, a frightening prospect in this troubled economy. But U.S. Reps. Randy Hultgren of Winfield and Judy Biggert of Hinsdale said the funding is crucial. On Wednesday, the two Republican congressmen held a round table on the underground particle-physics program at Fermi.

“I think basic science is the most important thing that will help us to compete in the global economy,” Biggert said. “We have to realize that basic science really drives industry and creates the jobs our children and grandchildren will enjoy.”

I assume most places would want to get federal money and remain competitive globally. The Chicago region, as a global city, needs research facilities like these.

But what about the local jobs and the greater impact on nearby suburbs? Several researchers, including Michael Ebner, have suggested that Fermilab played a crucial role in the development of the area. This 2006 overview of Naperville in Chicago sums up this perspective:

With the creation in 1946 of Argonne National Laboratory (near Lemont, about 15 miles southeast of Naperville) and the establishment, in 1967, of the National Accelerator Laboratory-now called Fermilab-in Batavia (about 15 miles northwest of town), Naperville was on its way to becoming “Chicago’s Technoburb,” as Lake Forest College history professor Michael Ebner later dubbed it. Bell Labs, Amoco, Nalco Chemical, NI-Gas, and Miles Laboratories were among the corporations that set up facilities in Naperville during the 1960s, ’70s, and ’80s.

In particular, Ebner argues that this facility plus Argonne National Laboratory meant that scientists and other staff moved to Naperville and then pushed for better schools. While Naperville was still relatively small in the 1950s and 1960s, this influx of educated residents gave the city a world-class educational system, helping to contribute to Naperville’s later growth. Here is one of the outcomes that could be tied to this from the Naperville District #203 website:

In the Third International Mathematics and Science Study-Repeat (1999 TIMSS-R), District 203 eighth graders achieved the highest score in science and sixth highest in mathematics among the 38 participating nations and consortiums worldwide.

I am somewhat skeptical of this argument. One, I’ve never seen hard figures that show how many Fermilab or Argonne researchers actually settled in Naperville. If these researchers also lived in other communities, did their school districts experience the same changes? Two, I haven’t seen evidence that these people directly influenced school changes in the community. Third, I would argue that the 1964 announcement that Bell Laboratories was locating a facility just north of Naperville was much more consequential in understanding Naperville’s growth.

Additionally, Fermilab has often been included in promotional materials as part of the Illinois Technology Research Corridor, providing the research and development foundation to the many notable corporations that have located along I-88 between Oak Brook and Aurora. This article from summer 2011 briefly recognized the impact of the corridor:

While the top-five states were unchanged from 2010, rankings 6 to 10 saw a few surprise movers. Illinois gained 8 spots (14/6) from last year, bumping Pennsylvania down to 7th place. What happened?

As it turns out, Illinois’ improvement is the result of the amount of scientific grant money awarded to the state — $185 million to be exact — from the National Science Foundation to the University of Illinois at Urbana/Champaign.

While many know the state for politics and sports, Illinois’ Technology and Research Corridor is a major scientific hub in northeastern Illinois, linking intellectual capital and corporate innovation.

Big name companies such as Motorola Solutions and Mobility, Boeing, and Telephone and Data Systems spacer among others are headquartered in Illinois in large part to benefit from the concentration of technical expertise.

I assume the state of Illinois, the city of Chicago, DuPage County, and nearby suburbs would like Fermilab to continue to be scientifically relevant as this brings in federal money, jobs, businesses, and educated residents. Whether the transition Fermilab makes to new research areas also includes these benefits for nearby communities remains to be seen.

Become a world city by designating a Chinatown

Posted on by

A sociologist suggests Auckland, New Zealand would be closer to being a world city if it officially created a Chinatown:

Sociologist Paul Spoonley, who co-authored the report, said if Auckland is serious about being rated as a world city it needs to start promoting itself as one.

London, Sydney, Melbourne, New York, Los Angeles and Vancouver all have Chinatowns.

“I mean Chinatown in Sydney is the third most visited destination for tourists in Sydney,” Spoonley told TV ONE’s Close Up.

“These sorts of ethnic precincts are what tourists, international tourists, like to see as well.”

On the positive side: Spoonley seems to be suggesting that Auckland would show off its multicultural side by having an official Chinatown that it could then promote to tourists. It would suggest Auckland is serious about welcoming new residents and also celebrates their traditions.  On the negative side: having a Chinatown does not necessarily a world city make. I suspect Auckland might have to do a bit more before it is considered a world city. Such cities, often known as “global cities,” are often financial centers, with all of the business, wealth, and status that this confers, and centers of culture, which attracts celebrities, intellectuals, and tourists.

While this idea might need to be expanded, Spoonley’s broader suggestion is interesting: a city can become a world class city simply by promoting itself as such. Has this happened with other cities?

The view of Chicago from New York City

Posted on by

Chicago still occasionally goes by the nickname of the “Second City,” even though the population of Los Angeles passed it years ago. But which city is the “First City” is in America has been clear for over a century. Recently, “The Urbanist” section of New York magazine focused on Chicago and at least one Chicago critic thought the review was even-handed. This reminded me of two historic links between the two cities:

1. A number of Chicago’s early prominent residents and boosters were transplanted New York residents.

2. New York annexed all the boroughs into the city in the 1890s so that it would keep a population lead over Chicago.

Today, is there really direct competition between the two cities? They both are global cities that rely heavily on finance and trading. Do big companies often choose between these two locations? If I had to quickly point out the biggest differences between the two regions today beyond the obvious (size, location), I might go with culture. New York City is an entertainment and celebrity center in a way that Chicago is not. New York City combines both commerce/industry with glamor while Chicago is hard-working, tough, and Midwestern (which some might consider the opposite of cosmopolitan).

Will the future be ruled by cities or suburbs?

Posted on by

Two commentators disagree in a special issue of Foreign Policy on global cities: one says cities are the places of the future while another says suburbs are key.

1. In Foreign Policy, Parang Khanna discusses global cities, a concept developed by sociologist Saskia Sassen. Khanna suggests such cities are growing to a point where they exceed the ability for nations or the United Nations to control them. The conclusion is that cities are quite important:

What happens in our cities, simply put, matters more than what happens anywhere else. Cities are the world’s experimental laboratories and thus a metaphor for an uncertain age. They are both the cancer and the foundation of our networked world, both virus and antibody. From climate change to poverty and inequality, cities are the problem — and the solution.

2. Joel Kotkin responds and claims a more dispersed population, in suburbs, can lead to better outcomes in areas like generating wealth, less inequality, and a cleaner environment. He suggests this is particular an issue if we encourage large cities in the developing world:

The goal of urban planners should not be to fulfill their own grandiose visions of megacities on a hill, but to meet the needs of the people living in them, particularly those people suffering from overcrowding, environmental misery, and social inequality. When it comes to exporting our notions to the rest of the globe, we must be aware of our own susceptibility to fashionable theories in urban design — because while the West may be able to live with its mistakes, the developing world doesn’t enjoy that luxury.

An interesting debate – both places have their own issues.  One could ask what residents would prefer to live in (both in the developed and developing world): the wealthy and glamorous megacity or the comfortable and affluent suburbs? Or perhaps different nations could have different planning and policy goals? Or perhaps we need some of both cities and suburbs…