Mum­bai, Delhi and Ben­galuru among most glob­alised cities

Most cities driving the glob­al­i­sa­tion process are lo­cated in ‘de­vel­op­ing’ coun­tries. Though most In­dian and Chi­nese cities are closer to per capita in­comes of $5,000 pa, they are rapidly in­te­grat­ing into the global econ­omy

HT Estates - - HTESTATES - Anuj Puri

Mum­bai, Delhi and Beng al ur u – al l tier-I cities of In­dia – rank at No. 4, 14 and 18, re­spec­tively, among most glob­alised emerg­ing cities (see ta­ble) in JLL’s new re­port Glob­al­i­sa­tion and Com­pe­ti­tion: The New World of Cities.

The re­port re­veals in­ter­est­ing in­for­ma­tion about how ‘emerg­ing world cities’ are in­te­grat­ing into the global econ­omy; have be­come cen­tres of de­mand­sup­ply; the new world or­der of cities and how lead­ing In­dian cities stack up in all of th­ese in­dices.

‘Emerg­ing world cities’ are the business cap­i­tals of large do­mes­tic economies, and ex­pe­ri­ence many of the scale, gov­er­nance and im­ple­men­ta­tion chal­lenges of more es­tab­lished re­gions. Of­ten sup­ported ac­tively by their na­tional gov­ern­ments, they are in a process of eco­nomic ad­just­ment and ur­ban and metropoli­tan re­struc­tur­ing to op­ti­mise the ben­e­fits of global en­gage­ment.

In fact, the on­go­ing Glob­al­i­sa­tion and World Cities ( GaWC) stud­ies re­veal big changes in the num­ber and type of cities that are tak­ing on in­ter­na­tional func­tions. To­day, of the 100 most glob­alised cities ac­cord­ing to GaWC data, 44 are mid­dle-in­come and lower in­come cities with real GDP per capita of below US$25,000.

Nearly half of the cities that are driving the process of glob­al­i­sa­tion are lo­cated in the so­called ‘de­vel­op­ing’ coun­tries. They vary con­sid­er­ably in size, po­lit­i­cal con­text and de­vel­op­ment path. Their per capita in­come (by PPP) di­verges sig­nif­i­cantly – cities such as Warsaw and Moscow are be­gin­ning to en­ter up­per- mid­dle or up­per in­come sta­tus, while In­dian and some Chi­nese cities are still closer to $5,000 per an­num. But the signs in­di­cate that they are all be­com­ing rapidly in­te­grated into the global econ­omy, and their eco­nomic per­for­mance has be­come closely in­dexed to global de­mand.

‘Emerg­ing world cities’ are cen­tres of de­mand, sup­ply

Be­tween now and 2030, dis­pos­able in­comes in Shang­hai and Bei­jing are set to rise by over US$350 bil­lion – more than in Lon­don and Tokyo – while con­sumer spend­ing may in­crease by more than US$250 bil­lion. Out­side China, cen­tres such as Jakarta, Is­tan­bul and Mum­bai are also see­ing an ur­ban con­sumer de­mand surge. This growth has big im­pli­ca­tions for the growth of the re­tail sec­tor, and for the de­mand and sup­ply of dif­fer­ent kinds of space in th­ese cities.

‘Es­tab­lished world cities’ used to host the over­whelm­ing share of large global firms, but this pic­ture is rapidly changing with 26% of firms hav­ing rev­enue above US$1 bil­lion now be­ing based in ‘emerg­ing world cities’, and hav­ing the po­ten­tial to reach 50% by 2025.

The new world or­der of cities

Mum­bai has high po­ten­tial and steps are be­ing taken to strengthen gov­er­nance: Manila, Mum­bai and Jakarta are not only per­form­ing well at at­tract­ing real es­tate in­vest­ment and out­sourc­ing ac­tiv­i­ties but also have more chronic in­fra­struc­ture sup­ply chal­lenges com­pared to cities men­tioned above. Transna­tional fir ms find th­ese cities at­trac­tive as

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