Cities in a World Economy (1991) by Saskia Sassen is a fundamental work for understanding globalization and the strategic role that major cities play in the global economy. In her analysis, Sassen argues that global cities have ceased to be merely centers of local production or exchange and have become “critical nodes” in global networks of economic, financial, and technological power. These cities have evolved into epicenters for managing and coordinating global flows of capital, information, and talent. Sassen introduces the concept of “global cities,” such as New York, London, and Tokyo, which function as “command and control platforms” for the global economy.
These urban centers host the headquarters of multinational corporations, financial markets, and specialized service firms, enabling them to centralize decision-making and manage global operations. Through these functions, global cities not only drive local economic growth but also connect and facilitate economic integration at the international level, consolidating their role as intermediaries in the flow of goods, services, and capital. A key aspect of Sassen’s analysis is how globalization has deepened “internal inequalities” within these cities. While part of the population benefits from access to highly paid jobs in sectors such as finance, technology, and business services, a large portion of workers remains trapped in low-wage jobs, often in service sectors like cleaning, hospitality, and transportation.
This division has generated significant socioeconomic polarization within global cities, creating areas of extreme prosperity alongside zones marked by precarity and exclusion. Sassen also pays particular attention to the transformation of urban space that accompanies the rise of global cities. In many of these urban centers, space is reorganized to meet the needs of global capital, with the construction of skyscrapers, financial districts, and new transportation infrastructures that serve corporate elites. However, this process often displaces local communities, especially in areas experiencing gentrification and significant increases in real estate prices.
Beyond the concentration of economic power, Sassen highlights how global cities become laboratories of technological and financial innovation, where new forms of work, commerce, and services are developed. As these cities evolve, labor and social dynamics also change, creating an environment in constant transformation that shapes not only the global economy but also the everyday lives of millions of people. In summary, Cities in a World Economy provides a deep understanding of the relationship between urbanization and globalization. Sassen demonstrates how major cities have become essential actors in shaping the global economic system while also analyzing the social tensions that arise as a result of their transformation.
The book remains an indispensable reference for those interested in urban studies, globalization, and the economic impact of cities in an increasingly interconnected world.
