Great Britain might not be that great in past few decades, but its capital definitely is. London is named one of the most influential global cities in the world, according to the Forbes magazine research conducted by its contributor writer Joel Kotkin, demographer Wendell Cox, urban geographer Ali Modarres, and former Accenture analyst Aaron Renn.
As a result of a thorough analyses based on eight criteria, like foreign direct investment, concentration of corporate headquarters, air connectivity, financial services, media power and etc., they managed to estimate that London exemplifies all the set standards.
The major reason for such a high rank on the list was London’s dominance as a financial powerhouse located outside of both the US and the Eurozone, escaping some of the most over-zealous regulators.
Moreover, the UK capital’s reputation as the center of much of the legal and business practices that define large parts of the world, as well as being a hub for English speaking media, gave London an advantage envied by most-other cities.
Plus, its time-zone friendly position helped the country to maintain good and close business relations with Asian counties, as well as its excellent airport connections, after Dubai though, also advanced London before its US competitor – New York.
“New York, which comes in a close second in our study (40 points to London’s 42), is home to most of the world’s top investment banks and hedge funds, and the stock trading volume on the city’s exchanges is nearly four times that of second place Tokyo and more than 10 times that of London,” says Kotkin.
However, the authors of the research believe that all these achievements are mainly due to the Britain outstanding history and past glory, as today UK “second-rate power” which has been in decline for a century.
“Inertia and smart use of it is a key theme that emerged in our evaluation of the top global cities,” it said. “No city better exemplifies this than London, which after more than a century of imperial decline still ranks No. 1 in our survey.
“The United Kingdom may now be a second-rate power, but the City’s unparalleled legacy as a global financial capital still underpins its pre-eminence.”
Forbes found London and New York held a “hegemony” over the rest of the world, standing far ahead of their nearest rivals, Paris and Tokyo. Rising stars were named as Singapore, currently in fifth place, Dubai in seventh and San Francisco, which is in equal 10th.
“Hong Kong still enjoys greater freedom than the rest of China and remains the largest financial center in the Asia-Pacific region, ranking third in the world after London and New York. The vast majority of the world’s major investment banks, asset managers, and insurance companies maintain their Asia-Pacific headquarters in the former British colony,” it is read in the research.
Other rising stars with growing influence and huge potential, which can attract more foreign investment, is South Korean capital Soul, Sao Paolo and Abu Dhabi.