Socioeconomic transformations in Shanghai (1990–2000): Policy impacts in global–national–local contexts

The thesis of social polarization in the global city has been debated for a decade, though there are few studies of cities playing major global roles in developing countries in general and cities in transitional economies in particular. This paper investigates the socioeconomic transformation of Shanghai, an emerging global city in China. From 1990 to 2000, a significant loss of occupation occurred within manufacturing, especially in State Owned Enterprises (SOEs), while it increased mainly in the producer service sectors, and the tertiary outgrew the secondary to become the largest sector. Nevertheless, neither polarization nor professionalization, as seen in cities in the West, is identified, although the trend of increased socioeconomic disparity is found. Social stratification is not only impacted by economic globalization but also driven by state policies. Income disparity is increasing and human capital is seen to be increasingly important. The state is inextricably involved with the market in determining final outcomes. As a result, two groups are expanding in the social structure: globally-oriented skilled labor at the one extreme and rural migrants at the other. The unique socioeconomic outcome of Shanghai underscores the complicated interactions between globalization and local politics. It highlights differences between globalizing cities with different functions as well as political and economic legacies.