Digest of readings

This report's aim is to describe some of the theoretical links between globalization and urban areas, more precisely their economical potential and the city dweller's role in it.

Globalization has been referred to as a thorough change not only in international economic and financial mechanisms, but as all embracing societal process. Free flow of capital and better means of communication and logistics have introduced new spatial order of socio-economical agents, also creating new ones. The most apparent dimension of this process has been the internationalization of capital flows, the rise of international financial corporations and relocation of manufacturing processes from Western countries to areas less demanding in labor and environmental issues. As a result, a number of urban areas – in Sassen's terms world cities - have become as managerial centres that control the flow of international capital. These urban areas are also seen as leading sites for innovation of technology.

By Writh's definition, the more a place has population, its density and heterogenity or diversity, the more urban it is. Florida connects the aspect of diversity to innovation and through it to economical prosperity. In his researches he sees the mixture of different social and ethnical backgrounds to foster new technological and social solutions and by that to have a positive effect on the competitivness of the area – in this case, urban locus. Here the diversity can also be understood as wider range of possibilities for highly educated or creative (with high social capital) persons to find suitable working positions and spend their leisure time. Earlier thinker Mumford is optimistic about the nature of the urban places as sites of innovation, because urban life is creative, theatrical; stage, that catalyses social interaction among its dwellers. On the other hand, the strength of social relations and interactions has a strong impact on the competitivness of the region, notes Putnam.

Viewpoints mentioned above are somewhat opposing. Writh is pessimistic about urban areas because of their larger denser populations, feeling them to be anonymous, maintaining mostly formal relationships. This amplifies gesellschaft or impersonal or secondary relations, which is considered to have negative consequences for local communities. Weakening of non-formal social links has also been noted by Putnam.

In a sense, the debate is based on antipodal understandings of key terms used. For example, diversity is understood on the one hand to create interesting and innovative social settings, but on the other to result an encapsulation of different social groups because of the differences between them. At the same time it can be said, that heterogenity creates tolerance.

Concepts mentioned above have received sceptic comments. Important critique stems from the technological development, that has brought new possibilities of communicating via cellular phones or Internet. Decreased amount of face-to-face conversation doesn't necessarily mean the lack of primary relations, but it might, as the nature of personal communication is somewhat transformed. Introduction of new technological apparatus for social networking has also blurred spatiality, creating new spaces and communities into cyberspace. This also is a challenge for concepts of new economy, that rely partly on interpreting individual's cultural and social practices.