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National Borders Fading: City States Make a Comeback
In-depth study and comparison on transformation of city states in history and today
By: Jordan Smith, Staff writer
The vast majority of cities today are found within national boundaries, which make up the global community. Cities are part of a larger collective nation that encompass a vast array of cultures and identities into a unique collage. Though generalisations will always exist, we know that not all Canadians are polite and love Tim Horton’s, and not all Americans are gun toting cowboys. From city to city within a given nation there are wide variances in demographics and as a result, cultures. Thus cities make up the larger national identities that have formed with the modern nation state. Collective identities amongst people are nothing new, what is new is how people have now been organized into nations with ‘clear’ boundaries and identities. However, the city, as in the past, is poised to transcend national borders and overshadow the nation state.
A Brief History of the City State
Although nation states seem as natural as waking up with the sun, they are a relatively new phenomenon. Political organizations have been around for thousands of years, but before we reached the point of nation states, there were city states. Past city states were epicenters for the development of modern societies and the institutions that came with them. For example, the city states of Ancient Greece saw some of the most basic underpinnings of Western intellectual culture develop within them. City states also served as major hubs along trade routes, such as the Silk Road, which lent them to a very cosmopolitan disposition.
The Italian peninsula is a great example of how a territory morphed from many small city states into a nation state. Many of the city states had mutual agreements on matters such as defence that drew them together to eventually form a unified Italy. Although it remains a nation state, there are still regional differences on the peninsula. Dr. Chris Nighman, professor of History at Wilfrid Laurier University, whose expertise is Medieval and Renaissance Europe, explains that these regional variations are still prevalent today. “It’s there in the politics, in culture, it’s a big issue. It’s like the American north and south, it’s always going to be there,” explains Nighman. So although a modern nation state is technically a unified entity, the divisions that identified past city states and ways of life are still present.
Onto the 21st Century
Trends in Europe today suggest that national boundaries may fade and give way to regional entities that closely resemble, if not replicate, the city states of centuries past. Nighman clarifies this point:
I think that is a safe prediction, if the Eurozone can hold together, if they can maintain their own currency, if they can even expand their jurisdiction a little further than it already is in terms of governing the economy. I think that those regionalisms, they’re just under the surface, they’ll pop right up… the modern nation state in some ways is in retreat in the very place where it began.
Given the economic woes that Europe is currently experiencing, it is not hard to imagine this happening at all.
If a scenario were to happen where national boundaries became faded and blurry, how would this affect the economy? We need only to look to the past to see how it would potentially work. Keeping with the Italian theme will again provide a great example. Florence for instance, although by name a city state, encompasses most of the region of Tuscany. Nighman explains that “By the time Florence comes to dominate Tuscany it is sort of the government of Tuscany in the sense that it had its own trade policies and foreign relations, internal dynamics and so on.” So the city state can encompass more territory than just its footprint, and have a working governance to facilitate trade and other business activities. “They’re regional power blocks, a lot of the much smaller units have been swallowed up by the larger ones and have become more viable states for that reason” continues Nighman. So the future city state would in fact be larger than the city itself. With small regional power blocks there is no need for a national government. Instead, a supra national organization to oversee the economy would take the place of a national government. As Nighman pointed out, the small regional power blocks would be able to govern themselves as well.
Moreover, the small scale territories would allow for the government machine to be quick and efficient in gathering information and implementing policy. It is simple really, the smaller number of people in a given jurisdiction, the easier it will be to set policies that are mutually beneficial for everyone. Today Singapore and Hong Kong are some of the most successful and reputable cities in the world to do business within. Singapore is a true city state whereas Hong Kong has special autonomous privileges from mainland China. Danielle Goldfarb, Associate Director of the Global Commerce Centre at the Conference Board of Canada, discusses these two cities and the success they have had due to their size. “It’s much easier for them to make economic policies, both those cities have been examples of very successful economic policies, because whereas India, an amazing growth story but is now kind of hung up by a lot of political uncertainty.” Both the cities and India have and are continuing to cash in on their economic potential, but the sheer size of India and all of its constituents makes governance more difficult, but far from impossible.
Not only are city states progressive and well-rounded in their demographics, they are more or less free from overbearing national governments. There were certainly figures like Genghis Khan who made his power felt over much of Asia in the early thirteenth century, but their interference with the daily activities within independent cities remained minimal, so long as its inhabitants were not hostile. This level of laissez-faire intervention also lent the city states a great deal of freedom in carrying on with their unique modes of operation. Another pay off to having a small region to govern, is that there are less variables to consider than on a national scale that encompasses many cities.
City States Today
While the nation state dominates the political theatre in the twenty first century, there are still city states that thrive, such as Singapore and Hong Kong. Although not plentiful, city states are still capable of living up to their reputations set in centuries past. A recent study done by the Asia-Pacific based business strategy firm Solidiance, suggests that the rise of the ‘new city state’ is upon us. The study ranked the top sixteen innovative cities in the Asia-Pacific region with six criteria; human talent, knowledge creation, technology, society, government, and global integration. Of the top five on the list, Singapore and Hong Kong are in 1st and 4th places respectively.
Damien Duhamel, managing partner and author of the study, suggests that comparing the innovativeness of cities as opposed to their respective nations is a far more accurate indicator of the city’s overall health and viability as a place to do business. Duhamel believes that “Competition is no longer at a country level but rather, at a city level. This refers to competition for the best things: jobs, talent, education, lifestyle, R&D, business environment, sustainable urban hub, etc.” This lends credence to the argument that national borders are becoming faded and playing less of a role in determining a city’s economic success.
To tell you that Singapore and Hong Kong are amongst the most innovative cities in the region is one thing. To know why they are held to such a high regard and be able to apply that information to other cities is where the benefit of this study lies. For the purposes of this article a detailed discussion of all the criteria and how the cities ranked would be far too lengthy. There are areas of interest that can be focused on though. The category regarding the cities governance is of particular relevance; in this area Hong Kong ranked 1st with Singapore in a close 3rd. Despite the fact that these cities operate under a-typical government systems, they have managed quite well in fostering innovative and progressive qualities.
The conclusions reached from Duhamel’s study should be applied to other non-city states to see where there are gaps in relevant criteria and how they can be addressed. The criterion of governance for example stresses the freedom to conduct business and financial transactions in a stable political and social environment. Being autonomous cities with little to no interference from larger governing bodies certainly lends Singapore and Hong Kong to said freedoms. With proof positive that these policies work, cities across the globe need to create such freedoms in their economies in order to succeed.
This message should not be mistaken for the proposed complete deregulation of markets and laissez-faire policies. The study believes that “The government is also responsible in creating a stable condition (political, economy, social, etc) which majorly affects a city’s amenity and creativity production. Therefore to some extent, government can be seen as the innovation controller.” So there is a fine balance between creating business freedoms while maintaining a stable environment for such activities. As mentioned previously, small scale governance is a much easier endeavour than large scale governance. As a result the challenge of governing city states should be a welcome one in which we strive for the best possible results.
Another area of interest that was measured by the study was global integration, in which Singapore ranked 1st. Sustainability and competitiveness were two hallmarks of how globally integrated a city can be. In order to remain integrated into the global community and economy a city needs to be able to support itself with limited resources on a long term basis. At the same time they must remain competitive in respect to other criteria such as attracting new talent. Attracting new talent is an essential part of remaining an innovative city.
With an increase in competition at the city level, the nation in which they are found will become less of an indicator as to how attractive a certain city could be for workers and businesses. There is no doubt that national governments still play a role in shaping the city with national laws and regulations. However, should the new city state become a reality they will be able to afford a greater autonomy from a deteriorating national government.
The future for city states looks bright, with the advantages that small scale governance can offer. Furthermore the potential deterioration of national boundaries could see regional differences emerge and create modern city states. Despite these positive elements there are still obstacles. Although a highly regarded city, Singapore has been facing its share of problems.
Roadblocks
Even though it ranked high in global integration and governance, Singapore has faced opposition to its large number of foreign workers. “The main problem, says Ms. Seah [a Singaporean business owner], is a squeeze on margins caused by rising costs—above all, labour. The government has imposed rises in a tax called the foreign-worker levy. Paid by the employer, it is charged on every foreign worker” explains an Economist article. The levies are an attempt to transition markets from low wage and low skill to high tech and high skill. Although the endeavour is essential to remaining competitive and innovative on a global scale, the policies are hurting small to medium sized enterprises. Moreover, the rises in costs of operation are simply being passed on to the consumers resulting in inflation. These problems are very real and need to be addressed seriously, but if Singapore and other cities are as innovative as the Solidiance study shows, the problems will prove to be a mere stepping stone to further success.
City States in Canada?
The regional differences addressed by Dr. Nighman regarding Italy are not unique to that nation. These types of variations can be seen within Southern Ontario quite readily. Although part of a province and larger nation, the region that boasts most of Canada’s population is home to a variety of cities with very unique identities. Areas like Kitchener-Waterloo are home to two universities and a polytechnic college. As well as post-secondary education there are establishments such as the Perimeter Institute (a facility for the study of theoretical physics) and the Center for International Governance Innovation. Moreover Blackberry, the one-time dominator of the smart phone market is based in the modestly sized city. All of these institutions brought the title of ‘The Smartest City in the World’ to Waterloo in 2007. Whether you agree with this ranking or not is irrelevant, the fact is that the city has been granted a special place in the minds of people who monitor progress on a city level. This subsequently leads to a unique regional identity that as Dr. Nighman points out, are very long lived and significant forces.
Moving west to the shores of Lake Huron you find Sarnia, a decidedly different city. Home not to world renowned universities or governance think tanks, it is known for its large proportion of fossil fuel refining and storage facilities. Although these are not nearly as desirable as universities, they serve to form unique identities and roles for their respective cities. Regional differences are also evident when comparing cities such as Toronto and Vancouver, where the former is the financial hub of Canada and Vancouver serves as a crucial port city among other things. These differences seem obvious when pointed out, but the prevailing mindset is to think of Canada as a single entity with a unique identity. Should North America experience deterioration in national governments in the future, it is quite plausible for these regionalisms to become much more evident. Thus it follows that evaluating the city instead of the nation is becoming a more wise approach in determining where to live or do business.
Hypothetically speaking, should national and provincial borders and governments become obsolete it is easy to see how cities will become the seats of regional power blocks, much as in Renaissance Italy. City states do indeed sound like a desirable route to take on a global scale, but this affirmation should not be seen as a definitive decision to do away with nations in a hasty manner. If and when the transition occurs it will be a lengthy process with many stumbling points. This article does not attempt to give answers as to how this transition will be made. More so it illustrates that city states of past and present have been very successful due to their small size and cooperation with neighbouring nations. Furthermore it is demonstrating that regional variations within nation states are far from forgotten and can form the basis for modern city states.
Jordan Smith is a 3rd year Honours History Major at Wilfrid Laurier University. In addition to Arbitrage magazine he also writes for Laurier’s student run newspaper The Cord.
Photo courtesy to studyblue.com and property-report.com
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