Megacities without global functions

Abstract

Present urban evolution is characterized by two major phenomena. On the one hand, the number of very large cities, the megacities, increases dramatically, especially in the less developed countries (LDCs). On the other hand, globalization leads to the emergence of cities coordinating complex and global economic activities, the global cities, especially in the more developed countries (MDCs). So, the two phenomena are diverging. A number of megacities do not exhibit any global function.The global performances of megacities are well correlated with their degree of economic development. But it is worth wondering why economic underdevelopment is consistent with urban growth but not with city globalization.The paper develops the following arguments. The global city is able to coordinate complex and global activities. This ability supposes the capacity to interact, to cooperate in accordance with coherent, well established and well accepted rules of the game, i.e. with institutions. These rules play a large part in the mega-global divergence. The bad quality of governance, the low level of social connectivity, the high level of corruption, are important obstacles to city globalization in LDCs. The existence of an important informal sector may explain that cities in LDCs grow beyond the size compatible with their economic resources and with their ability to generate externalities favourable to city globalization.

Keywords

• urban economics
• megacities
• global cities
• institutions