Globalisation and the Making of the World's Cities
How flows of capital, labour, and information have reorganized global urban hierarchies, producing 'global cities' alongside vast informal urban peripheries.
Globalisation is often narrated as an abstract flow of capital and information, but its most visible spatial expression is the transformation of cities. Saskia Sassen's concept of the 'global city' identifies a small set of urban centers — New York, London, Tokyo, and increasingly Shanghai, Mumbai, and São Paulo — that function as command-and-control nodes for the world economy, concentrating financial services, corporate headquarters, and specialized producer services even as manufacturing has dispersed to lower-wage regions. These cities are simultaneously hyper-connected to each other and increasingly disconnected from their own national hinterlands, forming a networked archipelago of globalized urbanism.
This process has been accompanied by an unprecedented pace of world urbanisation: the UN estimates that the global urban population crossed 50 percent around 2007 and continues rising, with nearly all future urban growth concentrated in Asia and Africa. Unlike the industrial urbanisation of nineteenth-century Europe, driven by factory employment, much contemporary urban growth in the Global South is 'urbanisation without industrialisation' — rural-to-urban migration driven by agrarian distress and the pull of informal service and construction economies rather than formal manufacturing jobs, producing what Mike Davis called a 'planet of slums.'
Megacities such as Lagos, Dhaka, Jakarta, and Mumbai illustrate this dynamic starkly: formal planning infrastructure has been unable to keep pace with population growth, producing vast informal settlements that nonetheless function as dense, economically productive, and often remarkably self-organized urban systems, as documented in ethnographic and geographic studies of settlements like Dharavi in Mumbai or Kibera in Nairobi. Urban geographers increasingly resist framing these settlements simply as 'slums' to be cleared, instead analyzing them as sites of informal economy, incremental self-built housing, and contested land tenure that formal city governments must negotiate with rather than erase.
Globalisation also reshapes urban form through special economic zones, export-processing zones, and gated enclaves for transnational elites, producing what geographers term 'splintering urbanism' — the fragmentation of cities into differentially connected zones of premium infrastructure (fiber-optic corridors, private security, gated townships) existing alongside chronically underserved areas lacking reliable water, power, or sanitation, often within a few kilometers of each other.
The COVID-19 pandemic and the rise of remote work have introduced new uncertainties into these urban hierarchies, prompting debate over whether global cities' agglomeration advantages will persist or whether distributed digital economies might disperse some functions to secondary cities — though evidence through the mid-2020s suggests global cities have largely retained their command functions even as some residential and office geography has shifted.
The lesson at a glance
Key concepts
- Global city
- Sassen's concept of urban centers that concentrate command-and-control functions of the world economy.
- Urbanisation without industrialisation
- Rural-to-urban migration and city growth driven by agrarian distress rather than formal manufacturing employment.
- Splintering urbanism
- The fragmentation of cities into unevenly connected zones of premium and underserved infrastructure.
- Informal settlement
- Self-built, often unauthorized urban housing that nonetheless forms dense, functioning economic and social communities.
- Special economic zone
- A demarcated area offering favorable regulatory and tax terms to attract export-oriented investment.
Thinkers to know
- Saskia Sassen — Sociologist and geographer who theorized the 'global city' as a command node of the world economy.
- Mike Davis — Urban theorist whose Planet of Slums documented global informal urbanisation.
- Doreen Massey — Geographer who theorized 'power-geometry' in how globalisation connects places unevenly.
- Stephen Graham and Simon Marvin — Urban theorists who coined 'splintering urbanism' to describe fragmented infrastructure networks.
- AbdouMaliq Simone — Urban theorist analyzing African and Southeast Asian informal city-making as 'people as infrastructure.'
In global perspective
- The world's urban population is projected by the UN to reach nearly 70 percent by 2050, with over 90 percent of that growth occurring in Asia and Africa.
- Lagos, Dhaka, and Kinshasa exemplify rapid megacity growth largely outpacing formal infrastructure and governance capacity across the Global South.
- Global cities like London, Singapore, and Dubai compete directly with each other for financial-sector investment through comparable zoning, tax, and infrastructure strategies rather than with their own national peripheries.
- China's state-led urbanisation, including purpose-built cities and massive internal rural-to-urban migration under the hukou household-registration system, represents a distinct alternative model to market-driven Global South urban growth.
- European and North American cities face a different globalisation-linked challenge: deindustrialised 'shrinking cities' such as Detroit or parts of the English Midlands, contrasting with the rapid growth pressures of the Global South.
In the Indian context
- Mumbai's Dharavi, one of Asia's densest informal settlements, is widely studied as both a housing crisis and a productive informal manufacturing economy generating an estimated billion-dollar annual output.
- India's Special Economic Zones Act (2005) and satellite township developments around Gurugram, Bengaluru, and Hyderabad illustrate 'splintering urbanism' with private infrastructure enclaves beside underserved older municipal areas.
- The Smart Cities Mission (2015) has been critiqued by Indian urban geographers for prioritizing technologically branded enclaves over inclusive basic-service delivery citywide.
Timeline
1991
Sassen publishes The Global City, theorizing New York, London, and Tokyo as command nodes.
2005
India passes the Special Economic Zones Act.
2006
Mike Davis publishes Planet of Slums.
2007
UN estimates world urban population surpasses 50 percent for the first time.
2015
India launches the Smart Cities Mission.
Glossary
Agglomeration economies
Productivity and cost benefits firms gain by clustering geographically near each other.
Hukou system
China's household-registration system regulating internal migration and access to urban services.
Informal economy
Economic activity operating outside formal regulation, taxation, and labour protections.
Land tenure
The legal or customary system governing rights to occupy and use land.
Sources to read
The Global City: New York, London, Tokyo · Saskia Sassen
Secondary
Foundational text on global-city theory.
Look for the full text in the Reading Room →Planet of Slums · Mike Davis
Secondary
Global survey of informal urbanisation in the Global South.
Look for the full text in the Reading Room →Splintering Urbanism · Stephen Graham and Simon Marvin
Secondary
Theory of fragmented urban infrastructure under globalisation.
Look for the full text in the Reading Room →World Urbanization Prospects
Dataset
UN DESA's periodic global urban population data and projections.
Look for the full text in the Reading Room →
Practice — turn this into an article
Compare the urban growth trajectory of one Global South megacity with one deindustrialising Global North city.
Deliverable: 600-word comparative case study.
Map (descriptively) the zones of 'splintering urbanism' in a city you know, noting infrastructure disparities.
Deliverable: One-page annotated description.
Interview or research a primary account of life in an informal settlement and summarize its economic functions.
Deliverable: 400-word case note.
Self-check
- What functions define a 'global city' in Sassen's framework?
- How does 'urbanisation without industrialisation' differ from the classical European urban transition?
- What does 'splintering urbanism' reveal about infrastructure inequality within cities?
- Why do urban geographers resist calling informal settlements simply 'slums to be cleared'?