Territorial impacts of globalization on European Regions

Van Hamme Gilles IGEAT-ULB

Liege meeting November 2010

2/25

The team
Lead partner : IGEAT-ULB Partners Pp2 (UK): School of real estate and planning. University of Reading Pp3 (France): CNRS (mainly Universit de Normandie) Pp4 (Italy): Dpto Studi Europei e Interculturali, Sapienza Universit di Roma Pp5 (Sweden): Internationella Handelshgskolan i Jnkping AB Pp6 (Bulgaria): Institute of Geography BAS

3/25

Major questions and objectives

1. Objective 1: to assess how Europe, its regions and cities participate in the global flows and networks and how the global processes impact on the territorial structures of Europe. How can territorial policies help to improve the position of the different types of regions in the world and ensure the objectives of social and territorial cohesion despite the potentially unequal impacts of globalization on European territories?
2. Objective 2: : to analyse the impacts of territorial structures on European performances How can territorial policy improve European competitiveness? For example, should we invest mainly in the global cities to improve Europes position in the world? 3. Objective 3: to analyse how Europe and its territories position themselves in the world through cooperation and networking with other parts of the world. How this positioning participates in achieving the objectives of improving competitiveness as well as social and territorial cohesion?

4/25

The architecture of the Project

5/25

WP 2.2. Territorial structures in a comparative perspective

1. To provide updated divisions of the world (WUTS) 2. To Compare Europe with other parts of the world according to the main political objectives of EU: competitiveness, social and territorial cohesion 3. To assess the territorial structures of Europe in a comparative 3-D approach: level of concentration (density), inequalities/mobility (distance) and internal mobility (divisions):
To assess the contemporary urban structure in Europe, including the role of gateways. More precisely, to assess the position of European cities in the global networks in a comparative perspective; To assess the internal mobility in the European space (people, goods and capital) To assess the territorial inequalities of Europe in a comparative and long term perspective.

6/25

1. European Urban structure in a comparative perspective

1 - Elaboration of a database of all cities with more than 500000 inhabitants which include: Population (1990-2007), GDP (six sectors 1995-2006), airflows and Fortune indicators (2005) 2 Databases and analyses will be completed with original data coming from Flows and Networks WP (2.3). This should include GAWC (2000,2004, 2008), port gateways, financial data (cross-listings and real estates), airflows (1990-1999-2008-2010), Fortune,.. 3 The analysis should privilege the dynamic aspects since I guess we understand sufficiently well why urban structure is more concentrated in USA. Main questions relate to the dynamics of concentration (metropolitanization? At which scale? National- macro-regional global) of: - population; - GDP; - High level services; - Air and port networks.

7/25

Basic results
Table 1. Population of major cities in US and Europe in 2006
Europe (ESPON space) Share of Rank of the cities Total the cities The whole population population 1 to 5 41 012 300 17% 8% 1 to10 61 055 900 25% 12% 1 to 20 87 813 300 37% 17% 1 to 50 139 554 600 58% 28% Source: FOCI, Urban Audit, US Census Bureau USA Total 52 818 471 78 639 292 112 803 829 160 919 486 Share of the cities The whole population population 27% 18% 40% 27% 58% 38% 83% 54%

Map 1. Population of cities (functional areas) with more than 500000 inhabitants in US and ESPON space, 2006

8/25

Basic results : airflows (2)

9/25

The GAWC data to assess Urban network dynamics in a comparative perspective

Top 12 - 2000
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. LON 100.00 NY 97.10 HK 73.08 TOKYO 70.64 PARIS 69.72 SINGAPORE 66.61 CHICAGO 61.18 MILAN 60.44 MADRID 59.23 LOS ANG 58.75 SYDNEY 58.06 FRANKFURT 57.53

Top 12 -2008
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. NY 100.00 LON 99.32 HK 83.41 PARIS 79.68 SINGAPORE 76.15 TOKYO 73.62 SYDNEY 70.93 SHANGHAI 69.06 MILAN 69.05 BEIJING 67.65 MADRID 65.95 MOSCOW 64.85

- NY and LON are now near equivalent - All US cities except New York drop out of top rankings - Cities linking to the WCN from the semi-periphery increase their WCN connectivity, e.g. Shanghai, Beijing, Moscow - Half the top 20 global service centres are now in the Asia Pacific region

10/25

WP 2.3. Flows and networks

Analyse the space of flows at the world level and understand its meaning in terms of territorial development and new territorial structures, that is: 1. To assess the position of Europe and its territories in different types of flows? - Economic (Regional trade, value chain), - Financial (stock-exchange flows, real estate investments flows at the city level) - Migratory (women, highly qualified) - knowledge (license payments, patent citations) - Transport (maritime, air)

2. Four scales: Europe Countries Regions Cities 3. To assess how the flows related to globalization impact on the territorial structure of Europe?

11/25

Europe and countries in the world trade: a long term perspective

The declining position of Europe

35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Share of extra-West European trade in the world trade excluding intra-block trade Share of intra-West European trade in the world trade 1968 1995 1978 2005 1988

12/25

Europe and countries in the world trade: a long term perspective

An integrated and not so open economy

INTRA-BLOCK trade (%) Ratio Exports (extra)/GDP by blocks (%) 1987 1995 2000 2006 1987 1995 2000 2006 63.4 65.5 65.3 66.6 7.5 8.9 8.0 10.9 47.8 45.7 55.4 53.7 3.4 5.2 4.5 4.7 0.0 0.0 0.0 0.0 4.6 5.6 6.5 9.9 0.0 0.0 0.0 0.0 12.3 15.1 15.1 16.2

EU-27 NAFTA China Japan Middle East and Northern Africa Subsaharian Africa Latin America Rest of Asia (excluding NIC) ex-USSR

3.1 5.7 14.0

5.6 10.8 26.8

4.0 10.2 26.0

5.4 9.6 24.1

13.4 8.2 4.3

12.7 7.5 4.3

17.6 7.9 4.9

20.3 11.3 7.8

10.7 0.0

14.0 26.9

13.8 20.7

18.0 19.0

4.2 -

6.2 6.3

6.6 6.9

7.4 10.9

13/25

Europe and countries in the world trade: a long term perspective

A stable role in the international division of labour

Capital intensive
2
US87 US07 US97 US67 US77 Japan07 Japan97 Japan87 UK87 UK97 germany97

1
camero o n67 camero o n07 camero o n87 camero o n77 camero o n97 Greece07 Greece97 Greece87 Ro mania07

UK07

primary

-2

-1.5

Greece67

0 0

-1

-0.5
Ro mania97

germany77 germany87 germany67 germany07 West Euro pe07 Ko rea07 Japan77 UK77 UK67 West Euro pe97 pe87 West Euro West Euro pe77 Hungary07 West Euro pe67 Spain07 0.5 1 1.5 Italy07 Italy87 Ko rea97 Italy97 Japan67 Italy77 Italy67 Spain77

Greece77 Ro mania67 Ko rea67

Hungary97 Spain97 Spain87 Ro mania87 -1 Hungary87 Hungary77 Spain67 Hungary67 Ro mania77

-2
China87 Ko rea87 China97 Ko rea77 China77 China67 China07

M a n u f a c t u r i n g

-3

-4

labour intensive

14/25

Europe and countries in the world trade: a long term perspective The changing geographical pattern of Europes position in the world trade

15/25

WP 2.4. Political cooperation and networks 1) To analyse the different forms of cooperation between Europe and the rest of the world and to assess which vision of Europe of the world it supports 2) To focus on neighbourhood policies to see whether there is a real integration between Europe and neighbouring regions 3) To assess the new regionalism by the analysis of network cooperation and networks of excellence between European actors, including public bodies such as regions, and the rest of the world

16/25

Conclusion
1. Identifying the key-driving forces of globalization and its impact on European territories at different scales in relation with the main political questions 2. To classify European cities and regions according to their position in the global space of flows. On this basis, we can produce: - Prospective results: how globalization trends will impact on European territories - Policy options differentiated according to the city/regionss position in the world economy.