Sokol Canterbury Christ Church University martinsokolcanterburyacuk The polycentric metropolis hypothesis and knowledgeintensive business services KIBS The case of a banking and financial services ID: 257140
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Dr Martin SokolCanterbury Christ Church Universitymartin.sokol@canterbury.ac.uk
The polycentric metropolis
hypothesis and knowledge-intensive business services (KIBS): The case of a banking and financial services sector in the Greater Dublin region
IGU – Urban Commission Canterbury, 2011Slide2
my paper...networks of firms, but focus on :knowledge-intensive business services (KIBS) [advanced producer services – APS] specifically: banking/finance
scale: metropolitanno big data sets (they don’t exist):
interviews x25case study: Dublinhypothesis: polycentric metropolis Slide3
Polycentric metropolis hypothesisBig cities / metrop. polycentric
city-regionsSlide4
Polycentric metropolis hypothesisBig cities / metrop. polycentric
city-regionsInevitableDesirableSlide5
Polycentric metropolis hypothesisBig cities / metrop. polycentric
city-regionsInevitableICT rev., globalisation, knowledge economy...DesirableSlide6
Polycentric metropolis hypothesisBig cities / metrop. polycentric
city-regionsInevitableICT rev., globalisation, knowledge economy...Desirablem
ore balanced (fairer) developmentmore econ. efficientmore environ. sustainable [solving old dilemma: equity vs. efficiency?]Slide7
Debate / consensusPolycentric urban structures are indeed emerging?Scott et al. (2001): multiclustered agglomerations
Sassen (2001): new geographies of centrality
Castells (1989): multinuclear spatial structuresHall (1999): networked urban region, multi-core metropolisHall and Pain (2006): polyopolis, polycentric mega-city region, polycentric metropolisSlide8
Significant...urban transformation:Slide9
Significant...urban transformation:new economy new spatial organisation
monocentric
industrial city post-industrial polycentric city-regionNew urban reality? End of city as we know it?Beyond cities?Slide10
Key driversICTs plus...KIBS (knowledge-intensive business services)
(banking and finance, insurance, legal service, engineering, accounting, consultancy and other business services)APS (Advanced producer services)
FIRE (Finance, Insurance, Real Estate)Slide11
Castells (Informational City) social organisation spatial form
informational economy
new spatial logic informational mode of development driven by large scale information-processing organisations information-intensive industries = KIBS ICT ‘complex, hierarchical, diversified organisational structure’
different parts: linked by ICTs =
‘space of flows’Slide12
Castells (Informational City) complex spatial structure: simultaneous centralisation and
decentralisation’ neither centralisation
nor decentralisation is dominant decentralisation:(1) Inner city suburbs (of metropolitan areas)(2) Metro non-metro areas / small cities(3) Between regions Informational Cities =
‘multifunctional, multinuclear spatial structures’Slide13
Peter HallOperationalised @ metro scale:
“Polycentric mega-city region”London / Greater South East England[see also Dan’s lecture]Slide14
Peter Hall“extended decentralisation [of KIBS] from large central cities to adjacent smaller ones” (Hall and Pain, 2006, 3)“outward diffusion [of KIBS] from
major cities to smaller cities” (Hall and Pain, 2006, 12)
Hope for peripheral hinterland urban centres (coming out of the shadow of a giant)?Slide15Slide16
Irish team: Greater Dublin RegionSlide17
Irish team: Greater Dublin Region
Metro areaSlide18
Irish team: Greater Dublin Region
mono-centric
poly-centricSlide19
Regional Studies, vol. 42 (8) ...Slide20
Source: Sokol et al. (2008)
monocentric
! Slide21
Source: Sokol et al. (2008)
monocentric
! Why?Slide22
Why?Need to understand the dynamics of individual KIBS sectorsSlide23
Why?Need to understand the dynamics of individual KIBS sectorsBanking & financeSlide24
Why?Need to understand the dynamics of individual KIBS sectorsBanking & financethe most important sector‘industry’ on its own right (in fact, probably more than that!)
the biggest propensity to decentralise...Slide25
Source: Sokol et al. (2008)
Banking & financeSlide26
But...Banking & finance:complex ‘industry’complex division of labourcomplex geographies / spatial organisation
complex spatial dynamicsSlide27
Growth and Change, vol. 38 (2) ...Slide28
But...Banking & finance:complex ‘industry’complex division of labourcomplex geographies / spatial organisation
complex spatial dynamics
Polycentric metropolis hypothesis ?Slide29
Banking & finance:Polycentric metropolis hypothesis
in theory...Slide30
Banking & financeNot 1 sector, but 2 sectors....A – domestic bankingB – international financial servicesvery different functionsvery different geographies & spatial dynamics
(although some overlaps / similarities...)
in practice...Slide31
domestic bankingBank of Ireland, AIB, Ulster Bank, Permanent TSB, National Irish Bank, Anglo-Irish Bank...Serving (mostly) domestic market / HO in DublinCentralisation of functions back-office (e.g. cheque processing, credit checks, loans, credit cards) &
front-office (telephone/internet banking)Slide32
domestic bankingBank of Ireland, AIB, Ulster Bank, Permanent TSB, National Irish Bank, Anglo-Irish Bank...Serving (mostly) domestic market / HO in DublinCentralisation of functions back-office (e.g. cheque processing, credit checks, loans, credit cards) &
front-office (telephone/internet banking) Decreasing
polycentricity (slimming down branch network & regional offices) Spatial decentralisation of centralised functions to cheaper locations (call centre, card centre, IT support centre, Internet banking support centre, credit scoring unit) [geography: 2 hour drive from HO = favours locations within Greater Dublin region]Slide33Slide34
international financial servicesFunds; Banking/finance; InsuranceAll major global players (Irish operation)servicing (mostly) global clientsmostly in DublinSlide35
international financial servicesFunds; Banking/finance; InsuranceAll major global players (Irish operation)servicing (mostly) global clientsmostly in DublinInternational Financial Services Centre (IFSC)
[Dublin’s version of London’s Docklands]Est. 1987; 10% corporation tax (now 12.5%)Ireland = cheaper location for big global playersthey had to locate in Dublin’s IFSC
to benefitby 2005: 20,000 jobsLimited decentralisation outside Dublin (but not necessarily in Greater Dublin region)Slide36Slide37Slide38
Polycentric metropolis?complex picturenot easy to foresee, but so far: no clear tendency towards polycentric metropoliscentripetal forces > centrifugal forcesif decentralisation: sub-ordinate functions
no sign of balanced (polycentric) developmentDublin – continued dominanceSlide39
Further complications‘indirect’ effects of finance (e.g. via lending to households, firms, property developers...)shaping urban structure (e.g. residential mortgages / suburbanisation - see also Markus Hesse’s paper; and/or speculative office development)also implications for the national economy...
“up to half of the banking system’s aggregate loan book is now in the broadly defined property category” (Central Bank and FSA, 2005, 9)Slide40
Further complicationscrisisSlide41
Further complicationscrisisSlide42
Further complicationscrisis
The emergence of a polycentric metropolis in Dublin:
uncertain & problematicSlide43
Thank youSlide44
ABSTRACT Martin Sokol The polycentric metropolis hypothesis
and knowledge-intensive business services (KIBS):
The case of a banking and financial services sector in the Greater Dublin region This paper critically examines the hypothesis that polycentric structure is emerging out of urban transformations in and around European metropolitan city-regions. Knowledge-intensive business services (KIBS) are often seen as key drivers of this process - which many hope will result in a more balanced pattern of urban-regional development. The paper focuses on a banking and financial services sector which, among KIBS, displays perhaps the biggest propensity to decentralise from central business districts (CBD) of primate cities to smaller urban centres in the periphery of metropolitan regions. However, the case study of Greater Dublin region demonstrates that while banking and finance does show some decentralising tendencies, these may not necessarily lead to a more balanced polycentric city-regional development - not least because the tendency to locate the most valuable operations in the primate city (and especially in its CBD) remains strong.36th Annual Conference of the International Geographical Union (IGU) – Urban Geography Commission–'Emerging Urban Transformations'Urban Transformations: Exploring Local, Regional and Global City RegionsCanterbury Christ Church University
14 – 20 August 2011