The Generation of value in Urban Spaces

Abstract

The transformation of capitalism over the centuries has assigned a variety of roles to the city as a place to attract economic activity and produce wealth. The third wave of globalization is driven by the knowledge economy, where creativity and talent are generators of innovation and urban competitiveness. In this context, the ability of cities to produce jobs and economic growth relies on increasing the number of areas that are attractive for the location of high added-value activities and for talent to settle in. The scope of internationalization, interrelation and interdependence of the different dimensions of globalization – that is, economic, environmental, social and cultural – is larger than ever in the XXIth century, as the accompanying digital revolution contributes to increasing global connectivity. It is in cities where the positive aspects of globalization, such as the creation of jobs or increasing well-being of citizens, take place. However there are also negative conditions. For instance, the economic decline of some areas as capital flows towards more profitable ventures elsewhere, the diminishing power of national and local governments to regulate economic affairs in isolation from other stakeholders, and the loss of local diversity and increase in societal inequality. The 2020 pandemic is becoming an exceptional example of how globalization connects the different parts of the world, in this case with very negative consequences.