ANNUAL REPORT 2009 - Saab

LOOKING FORWARDlarge cities as nodes in the international transaction systemThe world’slargest citiesThe figure shows the world’s largest cities in relation to the flow of goods by sea. The red arrows indicate intensive traffic. The biggest cities in the world aregenerally located right where the red arrows reach land, which at a broad level is an indication of the importance of their role in the global flow of trade.Building sustainable citiesIt may seem as a paradox, but in practice globalisation gives the localpolitical arena more influence. This is because cities represent criticalnodes and pumping stations in the flow system. They are thecentre of flows of goods, capital, information and people, and it isin cities that these flows materialise and are concentrated. It is worthnoting that 90 per cent of global trade at some point is still shippedby sea and that 14 of the world’s 19 largest cities are also port cities.It is also in cities that flow infrastructure such as harbours, airports,train stations, banks, computer servers, businesses, distributioncentres, warehouses and loading terminals is co-located. It isthere that the necessary growth factors and relevant flows intersectand economic growth can develop. In the same way that cities aredependent on flows for their economic growth, flows are dependenton strategic locations, nodes and co-locations – cities – that serve ashubs, marketplaces, disposal sites, customers and so on. As a result,the subnational level becomes the execution level in a flow society.Back to the futureIt is hardly a radical idea that cities would be important in a systemwhere trade flows take precedence over national borders, exactly likein the Dumbarton Oaks system. One example is the system thatexisted in Europe before Westphalia. When the concept of thenational state was introduced in Europe in the 17th century, in ourregion it replaced the Hansa, an urban trading alliance that workedfor around 400 years. In the Hanseatic League, cities joined togetherto trade with each other and trade routes were protected by theleague’s own navy. Joint security and trade policies were stipulatedannually on Hansa days.What is new is the magnitude of cities’ importance in the modernworld. Their value and influence has grown in pace with urban populations,globalisation and economic development, and has beenfurther strengthened by the fact that cities and their mayors areincreasingly organising themselves nationally and internationally.Environmental issues in particular illustrate the growing involvementand influence of cities, which is logical since most resources areconsumed and pollutants generated in and around cities.The Urban MillenniumA milestone in urbanisation was reached in 2007 when 50 per cent ofthe world’s population lived in cities. For 2030 the projection is over60 per cent. By 2050, no less than 70 per cent of the world’s populationis expected to be urban. The 2000’s are sometimes called theUrban Millennium.6 saab ANNUAL REPORT 2009