Asia/Pacific Cities Among Frontrunners in MasterCard Ranking of the World’s Centers of Commerce
New MasterCard Research Explores Strategic Role of Cities in Driving Global Commerce
Report Names 50 Cities as Hubs of the New Worldwide Economy
Auckland, 13 June 2007 -
MasterCard Worldwide today announced the first set of findings of a groundbreaking research effort, the MasterCard Worldwide Centers of Commerce™ program, designed to provide insights and knowledge on how leading cities influence the global economy. Central to this new research platform and unveiled today is the first annual MasterCard Worldwide Centers of Commerce Index™, the most comprehensive analysis to date of how major cities compare in performing critical functions that connect markets and commerce globally.
The Index, developed by a panel of leading experts in economics, urban development and social science from around the world, lists and ranks the top 50 Centers of Commerce based on six measurement dimensions consisting of over 100 data points. It places London first, followed by New York, Tokyo, Chicago and Hong Kong in the top five. Completing the top 10 are Singapore, Frankfurt, Paris, Seoul and Los Angeles. The full report is available at www.mastercardworldwide.com.
Asia/Pacific was well represented in the Index, with 11 of its cities ranked as top 50 Centers of Commerce. Dubai and Tel Aviv were the Middle East cities that made the list; and Johannesburg for the Africa region.
"The MasterCard Worldwide Centers of Commerce Index shows that Asia/Pacific cities are crucial lynchpins in the transactional flow of global commerce, with four out of the top 10 cities coming from this region," said Andre Sekulic, president, Asia/Pacific, Middle East & Africa, MasterCard Worldwide. "The Index provides an in-depth understanding of how these cities contribute and connect to the rest of the world, which is critical for success in today's global marketplace. The research shows that successful companies of the future will be transnational, operating seamlessly as a single global entity employing people and positioning resources wherever appropriate, in accordance with location advantages on a global basis."
Tokyo emerged the leader in Asia/Pacific, topping the region in the dimensions measuring financial flow, and knowledge creation and information flow.
"I believe that these results were achieved by Tokyo possessing, among a spectrum of commercial attractions, an advanced urban infrastructure, and one of the safest and most secure living environments in the world," commented Shintaro Ishihara, Governor of Tokyo. "Tokyo will achieve even higher levels of growth and development in metropolitan infrastructure and other key areas moving forward through the execution of its new urban strategy 'Tokyo's Big Change: The 10-Year Plan' Through such initiatives, I am confident that by 2016 – the year we are aiming to host the Olympic and Paralympic Games –Tokyo will be one of the world's most efficient Centers of Commerce as well as alluring cities, possessing the lowest environmental load in the world."
The transformation of cities into global centers of commerce has been fueled in part by rapid urbanization. In terms of population size and economic activities, many cities today are far larger than a significant number of sovereign states and more important than ever before. The research report establishes that today, many of these metropolises are "global cities" that perform critical functions connecting markets and commerce globally. In essence, they are nodes of connectivity through which global commerce can take place.
"The old paradigm was the sovereign state; this is now the age of the city," said Dr. Yuwa Hedrick-Wong, economic advisor, MasterCard Worldwide, who led the expert knowledge panel for the MasterCard Worldwide Centers of Commerce Index. "The trend of commerce becoming more knowledge-driven and less tangible has actually elevated the role of today's cities, positioning them as the hubs of complex circuits that fuel the globalized economy and provide connections through which true global commerce takes place. This research provides valuable insight into the cities that sit at the center of global commerce as well as the factors that are fuelling commerce in each."
Key highlights from the Index include:
The Worldwide Centers of Commerce Index is compiled from research by a panel of eight independent economic, urban development and social-science experts from leading academic and research institutions around the world, led by Dr. Hedrick-Wong. To form the index, the panel first identified 63 cities around the world that met their initial criteria.
Cities were then rated on the six dimensions:
This entailed measuring a number of equally weighted, relevant indicators and sub-indicators that aggregate available data on region-specific procedures, costs and ratings, as well as criteria related to quality of life, access to technology, city livability, logistics and knowledge creations and creativity. In total, over a period of four months, the panel evaluated six dimensions, 41 indicators and more than 100 sub-indicators to derive an Index ranking for each city, a process that exceeds traditional measures used to gauge worldwide financial and business activity.
About the MasterCard Worldwide Centers of Commerce Knowledge Panel
Leading the Worldwide Centers of Commerce program is Dr. Yuwa Hedrick-Wong, economic advisor, MasterCard Worldwide. With more than 25 years experience as an economist, business strategist and writer, Hedrick-Wong is one of the foremost experts on Asian economic trends and has counseled senior executives and board members at more than 50 global companies. To assist him in this research, Hedrick-Wong assembled a panel of leading experts in economics, urban development and social science from around the world, including:
Note to Editors: Full details of the Index composition, including indicators and sub-indicators used for calculating the index value, are detailed in the Index report titled, MasterCard Worldwide Centers of Commerce Index™, 2007. A study on the significance of cities is found in the Insights report, titled, MasterCard Worldwide Global Centers of Commerce™ Insights 2Q, 2007: The Dynamics of Global Cities and Global Commerce. Both these reports are available at www.mastercardworldwide.com.
The ranking of the top 50 MasterCard Worldwide Centers of Commerce are found on the following pages.
The Top 50 MasterCard Worldwide Centers of Commerce
* 1: Legal and Political Framework
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 16 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard Worldwide serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com.