New Orleans' Global Influence

While the Port of New Orleans provides important economic services on a global basis, I would still not refer to the city of New Orleans as a global city. New Orleans is lacking some major components of a global city – including significant revenue in the global economy. New Orleans revenue is just not comparable to that of those cities considered global cities, such as London, New York, Tokyo, Mexico City, Mumbai, Sao Paolo, and Shanghai. New Orleans’ economy has experienced some improvements since Hurricane Katrina, however it still has a ways to go before entering the ranks of these global cities.

To put things into perspective, let’s compare gross domestic product (GDP) between that of New York, which has been considered a global city since the term came into use, and New Orleans. According to the U.S. Department of Commerce’s Bureau of Economic Analysis, New Orleans GDP from 2014 was around $80 billion while New York’s surpassed $1 trillion – a significant difference. (Bureau of Economic Analysis. U.S. Department of Commerce). For my own personal reference I looked up Indianapolis (the city I moved here from) and found its GDP was over $125 billion and its location is not nearly as geographically desirable (at least so far as access to waterways go) as New Orleans but its thriving when it comes to drawing in companies to the area. In many ways, New Orleans is lacking in competition for drawing in new companies. This may be due in part to the hit New Orleans took from Hurricane Katrina, perhaps the areas susceptibility to hurricanes also presents itself as less desirable to companies looking to relocate. New Orleans also lacks in many areas of infrastructure within the city, potentially posing other issues companies may not be willing to deal with.

The textbook, Introduction to Cities: How Place and Space Shape Human Experience, Chen, Orum, and Paulsen define a global city as “a term defined by Saskia Sassen to refer to those major cities in the world in which the most powerful and influential institutions are located – such as investment banks, insurance companies, and real estate development firms – making these cities the controlling nodes of the global economy.” (pg. 352). New Orleans doesn’t have the same prestigious list as other cities do. For instance, New York boasts several different influential companies in all different types of industry. A few examples include ABC (media), Citigroup (financial), Macy’s (retail), McGraw-Hill (education), MetLife (insurance), Pfizer (pharmaceuticals), Phillip Morris International (tobacco), and much more. I also looked up companies based out of Indianapolis for reference and those include Angie’s List (internet), Anthem, Inc. (health insurance), CNO Financial Group (financial), Dow AgroSciences (agriculture), Eli Lilly and Company (pharmaceuticals), Finish Line (retail), Steak n’ Shake (food), among others. Companies headquartered in New Orleans (excluding those that only service the Louisiana area) include Cash Money Records (entertainment), McGlinchey Stafford (law firm), PJ’s Coffee (food), Smoothie King (food), and a few others.

The textbook also states, “Business transactions that had once taken days, even months, to complete could now be done overnight, thereby making the marketplace truly global. Here the role of the new technology was truly revolutionary, speeding up processes and creating new kinds of connections and networks among businesses and people across the world.” (pg. 171). Of course, businesses and individuals in New Orleans can take advantage of the great technology at our fingertips today, but that’s not enough to ensure a city is a global city. People all over the United States and the world are able to sell goods and services online but they don’t have to do it from a global city and the types of companies of importance that make up a global city have to have a degree of influence and power not just in the regionally but on a global level. New Orleans has seen an increase in young entrepreneurs and tech-based companies in recent years, but these businesses are too new to be considered major players yet.

Just because New Orleans isn’t on the same level as that of global cities doesn’t mean it has no economic value or influence on the world. The Port of New Orleans describes itself as “the ultimate gateway to global commerce.”. It sees approximately one million cruise ship passengers a year. New Orleans remains a successful tourist destination, with tourism being a main source of the city’s income. The culture of New Orleans is influential around the globe with its festivals, art, jazz, and especially its cuisine. So New Orleans may have a lot to accomplish before it can be considered a global city, it still has much to offer.

Sources

Economic Growth Widespread Across Metropolitan Areas in 2013. Advance 2014, and Revised 2001–2013 GDP-by-Metropolitan-Area Statistics" (PDF). Bureau of Economic Analysis. U.S. Department of Commerce. September 23, 2015.

Chen, X., Orum, A. M., & Paulsen, K. E. (2013). Introduction to Cities: How Place and Space Shape Human Experience. Wiley-Blackwell.

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