World cities Dominance and dependence Changing role of regional centres Demise of the small town.

World citiesWorld citiesDominance and dependenceDominance and dependence

Changing role of regional Changing role of regional centrescentres

Demise of the small townDemise of the small town

Dominance and Dominance and dependencedependence

The relationship of The relationship of dominance and dominance and dependence could be dependence could be said to belong to the said to belong to the interaction between interaction between world cities and the world cities and the other urban centres in other urban centres in proximity to them. proximity to them.

World cities, whether World cities, whether they be characterised they be characterised as dominant, major or as dominant, major or secondary, are sites of secondary, are sites of world accumulation. world accumulation.


Technological Technological dominance and dominance and innovationinnovation

Financial dominance in Financial dominance in the production and the production and distribution of goods distribution of goods and services on a global and services on a global scale. scale.

The cultural influence The cultural influence that arises from world that arises from world cities is widespread, as cities is widespread, as is the level of strategic is the level of strategic decision making. decision making.


Urban centres on the other Urban centres on the other hand, have functions that hand, have functions that show dependence on the show dependence on the world cities. world cities.

Accumulation and the Accumulation and the production and distribution production and distribution is only on the national scaleis only on the national scale

Technology is often Technology is often adopted, as there is a adopted, as there is a relatively lower degree of relatively lower degree of research and development. research and development.

A limited cultural influence A limited cultural influence with some political control.with some political control.

Eg Perth’s financial system Eg Perth’s financial system is dependent on Sydney is dependent on Sydney Head Offices.Head Offices.


The hierarchy of world cities The hierarchy of world cities indicates that there is a level indicates that there is a level of dominance emulating from of dominance emulating from New York, London, Paris and New York, London, Paris and Tokyo over the other world Tokyo over the other world cities. cities.

They have a disproportionate They have a disproportionate concentration of top-level concentration of top-level headquarters of the financial, headquarters of the financial, industrial, commercial and industrial, commercial and producer service sectors. producer service sectors.

Many of the large industrial Many of the large industrial TNCs that account for nearly TNCs that account for nearly 70% of the international 70% of the international trade are headquartered in trade are headquartered in these cities. these cities.


The massive expansion of The massive expansion of the global financial industry the global financial industry over the last 20 years has over the last 20 years has greatly increased the global greatly increased the global significance of London, significance of London, New York and Tokyo. New York and Tokyo.

The main financial The main financial transactions in shares, transactions in shares, bonds, loans and foreign bonds, loans and foreign currency are dominated by currency are dominated by these three cities. these three cities.

Together with Los Angeles, Together with Los Angeles, Frankfurt and Hong Kong Frankfurt and Hong Kong they provide a 24-hours-a-they provide a 24-hours-a-day global coverage of day global coverage of financial transactions. financial transactions.


Dominance and Dominance and dependence also exists dependence also exists between world cities and between world cities and other urban centres. other urban centres.

An example of this is An example of this is Sydney’s role in contrast Sydney’s role in contrast to the other Australian to the other Australian cities. cities.

Sydney, as a major world Sydney, as a major world city has 27 head office city has 27 head office locations for Australia’s locations for Australia’s 50 largest corporations. 50 largest corporations.


Melbourne comprises 16 Melbourne comprises 16 of these, while Brisbane, of these, while Brisbane, Perth and Adelaide have Perth and Adelaide have less than three in their less than three in their respective cities. respective cities.

Sydney is the principal Sydney is the principal centre for smaller, centre for smaller, Australian-controlled Australian-controlled businesses. businesses.

Nearly half of these Nearly half of these have grown through have grown through national mergers and national mergers and takeovers. takeovers.


Sydney is the principal Sydney is the principal financial centre as financial centre as countries like Japan prefer countries like Japan prefer to locate trading, to locate trading, marketing and financial marketing and financial companies there. companies there.

Although Melbourne Although Melbourne dominates in the areas of dominates in the areas of manufacturing and mining, manufacturing and mining, Sydney is the dominant link Sydney is the dominant link to the global economy as it to the global economy as it represents a more recent represents a more recent period of capital period of capital accumulation associated accumulation associated with economic with economic globalisation, especially in globalisation, especially in the financial sector. the financial sector.


The other urban centres that are also The other urban centres that are also state capitals only play minor roles in state capitals only play minor roles in national production let alone global national production let alone global accumulation. accumulation.

Cities like Brisbane, Darwin, Cities like Brisbane, Darwin, Adelaide, Hobart, and Perth have Adelaide, Hobart, and Perth have functions that have been largely functions that have been largely absorbed into Sydney and to a lesser absorbed into Sydney and to a lesser extent Melbourne through corporate extent Melbourne through corporate takeovers. takeovers.

These urban centres operate at an These urban centres operate at an intrastate level of networking within intrastate level of networking within Australia’s federal administrative Australia’s federal administrative structure. structure.

Further dominance would be exerted Further dominance would be exerted from Sydney over nearby urban from Sydney over nearby urban centres like Newcastle and centres like Newcastle and Wollongong. Wollongong.

These relationships of dominance and These relationships of dominance and dependence occur on a global scale dependence occur on a global scale and these roles are even more and these roles are even more pronounced when the country has a pronounced when the country has a greater number of urban centres and greater number of urban centres and world cities that surround a dominant world cities that surround a dominant world city. world city.


The United States presents The United States presents clear trends of dominance and clear trends of dominance and dependence whereby New dependence whereby New York, with a group of world York, with a group of world cities dependent on it, cities dependent on it, especially for financial especially for financial transactions. transactions.

Major world cities include Major world cities include Chicago, San Francisco, Chicago, San Francisco, Miami, Boston and Los Miami, Boston and Los Angeles. Clustered around Angeles. Clustered around these world cities are the these world cities are the urban centres that have urban centres that have dependent relationships with dependent relationships with their nearby world cities. their nearby world cities.

In the case of Chicago, In the case of Chicago, dependent urban places in dependent urban places in close proximity include close proximity include Minneapolis, Milwaukee, Minneapolis, Milwaukee, Indianapolis, St. Louis and Indianapolis, St. Louis and Kansas City. Kansas City.


The United Kingdom: London The United Kingdom: London acts as a centre of dependence acts as a centre of dependence for other major cities across for other major cities across the nation especially for the nation especially for financial transactions. financial transactions.

Cities such as Birmingham, Cities such as Birmingham, Newcastle and Manchester Newcastle and Manchester rely on London for a variety of rely on London for a variety of needs and allow them to needs and allow them to subsequently be linked into subsequently be linked into the global network. the global network.

Clustered around these major Clustered around these major cities are the urban centers cities are the urban centers that have dependent that have dependent relationship with their closest relationship with their closest major city. Eg Manchester - major city. Eg Manchester - dependent urban places in dependent urban places in close proximity include close proximity include Liverpool, Chester, Preston Liverpool, Chester, Preston and Stockport. and Stockport.

Rural trendsRural trends There have been changes There have been changes

in the relative significance in the relative significance of settlements in rural of settlements in rural areas at a regional and areas at a regional and local level. local level.

Overall, countries like Overall, countries like Canada, the United States Canada, the United States and Australia have and Australia have witnessed the growth of witnessed the growth of regional centres with a regional centres with a corresponding decline in corresponding decline in population and economic population and economic activity throughout the activity throughout the surrounding small towns. surrounding small towns.

Urban systems / Urban systems / metropolitan areasmetropolitan areas

Urban systems comprise of Urban systems comprise of the national city (eg. Sydney, the national city (eg. Sydney, Brisbane and Melbourne) Brisbane and Melbourne) that have a complex set of that have a complex set of functions. functions.

These include wholesaling, These include wholesaling, retailing, manufacturing, retailing, manufacturing, finance and corporate finance and corporate management, education, management, education, entertainment and health entertainment and health services. services.

Metropolitan areas perform Metropolitan areas perform these functions for smaller these functions for smaller urban places and rural areas urban places and rural areas in their general vicinity. in their general vicinity.

These metropolitan These metropolitan hinterlands vary greatly in hinterlands vary greatly in size and shape depending on size and shape depending on the type of services provided. the type of services provided.

Regional centresRegional centres Further down the hierarchy Further down the hierarchy

are regional centres. are regional centres. In New South Wales, In New South Wales,

regional centres are defined regional centres are defined as having populations of as having populations of 11,000 to about 50,000. 11,000 to about 50,000.

These centres perform a These centres perform a smaller amount of functions smaller amount of functions and these relate closely to and these relate closely to the functions of each the functions of each settlement. settlement.

In the case of Sydney, In the case of Sydney, regional centres would regional centres would include Newcastle, include Newcastle, Wollongong, Bathurst, Wollongong, Bathurst, Lismore, Tamworth and Lismore, Tamworth and Dubbo. Dubbo.

Small townsSmall towns Below these in the Below these in the

hierarchy are the small hierarchy are the small hinterland towns with hinterland towns with populations of less populations of less than 11,000 people. than 11,000 people.

Taking the regional Taking the regional centre of Dubbo, centre of Dubbo, among the many small among the many small hinterland towns would hinterland towns would be Wellington, Nyngan, be Wellington, Nyngan, Bourke, Warren, Peak Bourke, Warren, Peak Hill and Dunedoo. Hill and Dunedoo.

Growth and declineGrowth and decline The trends of growth The trends of growth

and decline are and decline are evident in the Dubbo evident in the Dubbo district’s population district’s population changes. changes.

From the period 1976 From the period 1976 to 1997, the Dubbo to 1997, the Dubbo district grew by 56.5%, district grew by 56.5%, while Wellington and while Wellington and Warren decreased by Warren decreased by 9.0% and 17.4% 9.0% and 17.4% respectively over the respectively over the same period. same period.

Growth and declineGrowth and decline The population of The population of

Dubbo grew from Dubbo grew from 28,064 to 30,102 28,064 to 30,102 between 1991 and 1996 between 1991 and 1996 and in 2003 grew again and in 2003 grew again to reach 38,937; while to reach 38,937; while Wellington went from Wellington went from 8648 in 1996 to 8142 in 8648 in 1996 to 8142 in 2004 and Warren from 2004 and Warren from 1,909 to 1786 over the 1,909 to 1786 over the same period. same period.

The same decline may The same decline may be said for Bourke, be said for Bourke, Dunedoo and Nyngan. Dunedoo and Nyngan.

QuestionQuestion

Why do you think Why do you think small towns are in small towns are in decline while decline while regional centres regional centres increase?increase?

Reasons for small town Reasons for small town declinedecline

An account of these trends An account of these trends can be attributed to a can be attributed to a complex set of factors that complex set of factors that differ in each region. differ in each region.

However, a common range However, a common range of causes may begin with of causes may begin with the recent developments in the recent developments in transport and transport and communications making it communications making it difficult for small towns to difficult for small towns to survive. survive.

Business services are more Business services are more centralised and this has centralised and this has cascaded through the whole cascaded through the whole urban system from the urban system from the national to the local levels. national to the local levels.


For example, the widespread For example, the widespread use of cars and the use of cars and the construction of sealed roads construction of sealed roads after 1960 in Dubbo has after 1960 in Dubbo has made it easier for people to made it easier for people to travel longer distances to travel longer distances to purchase from a wider purchase from a wider variety of cheaper goods and variety of cheaper goods and services from regional services from regional centres instead of the local centres instead of the local small town. small town.

A similar effect is in the rapid A similar effect is in the rapid development in development in telecommunications (eg. e-telecommunications (eg. e-commerce) and the commerce) and the possibility for people in rural possibility for people in rural areas to purchase goods areas to purchase goods globally. globally.


The result at the local The result at the local level is the decline, level is the decline, demise even of towns, demise even of towns, and certainly a marked and certainly a marked reduction in services that reduction in services that are no longer economic are no longer economic in a competitive business in a competitive business environment. environment.

Regional centres absorb Regional centres absorb the decline in the the decline in the population and activities population and activities of the smaller local of the smaller local centres.centres.


The economic restructuring in The economic restructuring in both the private and public both the private and public sector has allowed the regional sector has allowed the regional centres to become increasingly centres to become increasingly competitive in the primary and competitive in the primary and secondary industries (eg. food secondary industries (eg. food processing and the supply of processing and the supply of frozen meat). frozen meat).

This is not just on the national This is not just on the national scale but also on the world scale but also on the world market in terms of exporting market in terms of exporting success. success.

The encouragement of The encouragement of economies of scale through economies of scale through lower operating and land costs lower operating and land costs has seen many businesses has seen many businesses prosper in centres like Wagga prosper in centres like Wagga Wagga. Wagga.


Retailing has also Retailing has also restructured with the restructured with the growth of large regional growth of large regional shopping centres to the shopping centres to the demise of the local, demise of the local, small town retailer. small town retailer.

Public restructuring and Public restructuring and the adoption of the adoption of economic rationalism as economic rationalism as a result of fiscal a result of fiscal restraint have seen the restraint have seen the rationalisation and rationalisation and centralisation of centralisation of government services in government services in the regional centres. the regional centres.


It is well known that It is well known that returns on agricultural returns on agricultural production have production have reduced rural incomes reduced rural incomes relative to those families relative to those families from the cities. from the cities.

As a result, some 431 As a result, some 431 centres with populations centres with populations less than 4,000 will less than 4,000 will struggle to survive. struggle to survive.

Many of these towns are Many of these towns are losing the infrastructure losing the infrastructure necessary to maintain a necessary to maintain a viable community. viable community.

Drought has also been a Drought has also been a major push factor from major push factor from small towns.small towns.


Between 1981 and Between 1981 and 1998, more than a 1998, more than a quarter of the bank quarter of the bank branches in rural branches in rural NSW were closed.NSW were closed.

More recently the More recently the ABC reported last ABC reported last year that St George year that St George has planned to close has planned to close up to 84% of its rural up to 84% of its rural banking over the banking over the counter firms. counter firms.

ResponsesResponses One response has been the One response has been the

development of Elders rural development of Elders rural bank has now establish 400 bank has now establish 400 over the counter branches over the counter branches in 3 years and over 200 in 3 years and over 200 through Bendigo Bank through Bendigo Bank across Australia. across Australia.

At a joint conference in At a joint conference in Adelaide between Adelaide between government officials and government officials and representatives of Rural representatives of Rural Bank, Senator Chapman Bank, Senator Chapman announced the success of announced the success of both Elders Rural and both Elders Rural and Bendigo Bank in assisting Bendigo Bank in assisting with the development of with the development of community services and community services and infrastructure in small rural infrastructure in small rural towns.towns.

ResponsesResponses Another response to decline Another response to decline

by communities and local by communities and local councils is the diversification councils is the diversification in the economic base of the in the economic base of the small town. small town.

The Carrathool Shire Region The Carrathool Shire Region has towns like Leeton and has towns like Leeton and Ivanhoe and these have Ivanhoe and these have actively invested in actively invested in infrastructure that would infrastructure that would further promote tourism, further promote tourism, especially Japanese tourists especially Japanese tourists who seek a rural setting. who seek a rural setting.

The income from tourism The income from tourism helps to act as a safety net helps to act as a safety net during periods of poor during periods of poor agricultural returns. agricultural returns.

This approach is important as This approach is important as thousands of jobs in thousands of jobs in agriculture are lost each year.agriculture are lost each year.

World cities Dominance and dependence Changing role of regional centres Demise of the small town.

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