Response to "The World is Spiky"

Original Article: http://creativeclass.com/rfcgdb/articles/other-2005-The%20World%20is%20Spiky.pdf.


The author believes that while globalization has increased the returns to innovation, which is the engine for economic development, through allowing innovative products and services to quickly reach consumers worldwide, it has increased the spikiness of wealth and economic production. Thus, although the world's economic peak-regions are slightly more dispersed now, the disparity between the rich and poor regions has also grown larger.


This view illustrates the Central Place Theory. In major cities with highly advanced economy, there exist more abundant resources, and so more innovative ideas and products are generated. Additionally, a highly specialized region reduces production costs for producers through the economies of scale. Consumers also benefit through a wider selection of products, lower prices as a result of competition and lower transportation cost. This further enhances the economic activities of these highly developed regions, making the disparity between wealthy and poor regions more significantly. As a result, the author's conclusion in the article is reached, that the spikiness of the world's wealth distribution grows.


My study abroad city, London, lies on the top of the hierarchy of central places, the National Metropolis. Southampton, 76.3 miles aways from London, will be a Regional Metropolis. A Regional City will be Brighton, 52.4 miles away. Oxford which is 60 miles drive, is a small city. Dartford with a distance of 18.8 miles will be a town. Kidlington in Oxfordshire, 60 miles away from London, is a village. Dulwich will be a good representative of Hamlet near London, which is 7 miles away.