Download Obstacles, problems, and approaches of globalization of Iran`s cities

Obstacles, problems, and approaches of globalization of Iran's cities
Rahnama, Mohammad Rahim1
1
Urban Geography Department, Ferdowsi University of Mashhad,
Mashhad, Iran
Abstract
This paper consists of two sections: First section deals with description of an index
of globalization and globalization process of cities, strategies, and also the experience of
some of the countries particularly China, India, and small European cities in globalization
process. The second part describes the globalization trend of Iran specially after Islamic
revolution (1979) and evidences of legislation and establishment of free zones (20 zones),
then It determines Iran's situation in globalization process in economical, social and
political aspects by the result of usage of Kof and A.T. Kearney indexes. The results of
this section indicate not so much good situation of Iran in globalization process based on
above-mentioned indexes (the lowest position among 62 countries) and it was completely
specified that cities are sub-system of countries. The more any country integrate in global
community, the quickly the cities of that country can move towards globalization. The
results of this research show this reality that in recent decades Iran has been capitalthropic
instead of capital augmenting. The efforts for creating free economic zones to connect
Iran to globalization process not only started with delay but due to structural problems
have not been so successful as well. Also Iran cities face with serious challenges such as
extensive control on different economical, social, informational, cultural sections and lack
of Foreign Direct Investment (FDI) in globalization process.
Key Words: Globalization, Problems, Approaches, Cities, Iran
History of globalization
The review of philosopher's ideas from ancient time until today shows that there has
been constant dispute between the advocates of political and universal theory and those
who demand to establish a nation-state and a kind of defense wall against the influence of
other nations and tribes. Any way this matter has taken into consideration by word of
divine religions to the speech of the great philosophers like Marcos, poets like Homer,
Ferdowsi Sadi, Tagor, Eghbal and politicians like Jawaharlal Nehro etc. (Mohammadi
et.al, 2007, 1).
Nevertheless the history of practical movement related to globalization returns to
activities about establishment of free economic zones. For the first time the free zone as a
1
new concept was established in Hamburg port in Germany in 1888. Then before World
War II, this process developed in other countries such as Finland, Macao, and Hong
Kong, Singapore etc. At this time the activity of free economic zone was more
concentrated on trade. But the first free economic zones in new concept were Shanoon
that was inaugurated in Ireland in 1959. For the first time the main goals of Shanoon was
attracting
foreign
establishment
of
investment,
free
transferring
trade-industrial
technology
zone
in
and
creating
developing
country
employment.
is
an
The
economic
phenomenon in recent 25 years. (http: /// www. Freezones. Ir/ World Free zones/ world
free zones History/ tabid/ 145/ Default. aspx).
Free zones are bridge between international and national economy. The most
principle subject of free economic zones is foreign investment. As soon as unsafe and
low-efficiency, it leaves free zone and move to more safety area. So, by development of
Information
and
communication
Technology
(ICT),
the
trend
of
changes
gradually
entered to new stage in twentieth century in 1970s. In the mid 1980s, ICT left its sign in
all grounds and instead of free industrial zones, concepts such as post-industrial and post
modern was replaced for reference to these changes. But in 1990s the concept of
Globalization became widespread and today it is a dominant concept of contemporary
time as nowadays anything examine by reference to this concept (Iran zadeh,2002, 17).
According to Paul laudician, the world is small and globalization made it small even
in confrontation with crises and disorders (Laudician, et al, 2006, 1).
Globalization refers to absolute business freedom, clear all obstacles, easy capital
flow and its influence in all areas and also smooth flow of information, financial affairs
and services, and finally cultural interferences towards integration and uniformity.
Some believes that globalization term refers to the book of Marshal Mc Luhan titled
as "war and peace in world village" that published in 1970. At this book McLuhan
divided the world into three phases:
1. Verbal civilization or verbal galaxy
2. Written civilization or Gutenberg galaxy which start with print invention
3. Electronic civilization or Marceny galaxy which start with Radio invention by
Marceny. McLuhan believes that the current word moves towards old village (verbal
civilization) because people more communicate with each other by face to face and verbal
culture spread by Radio, Television, Satellite and Internet.
McLuhan declares that face to face communications has been exposed to public
view. Also M.castells by reference to information era, believes that globalization is the
appearance of a type of networked society which covers the economical and cultural area
2
of society.
David Harvey considers the rapid development process of societies and
cultures as involving two concepts: The density of time and place and reduce of distances.
In fact according to Harvey the density of time and place is the main specificity of
globalization. That is, distances is reduced or disappeared. The world seems more and
more small. Human being and societies approach to each other in a manner. So,
globalization is a process that improves social relations. Globalization replaces the local
relations to global relations (Iran zadeh, 2002, 27).
Cities specially metropolises play a key role in globalization process and considered
as Gateway of globalization (Annapurna Shaw et al, 2006, 3). Despite this specificity,
cities are sub-system of country national system.
Obviously, the more country national system interacts with international system, the
more active and dynamic city system will be, or vise versa. Within this hypothesis, this
research is intended to analyze the position of Iran's cities by analyzing total system of
country and explaining its position in global system. So, this study tries to answer this
question by considering Iran's situation in globalization process based on the result of the
usage of two models: Kof and A.T. Kearney and tries to consider activity records related
to globalization by establishing free zones and also to review problems of free zone due to
combining
in
global
economy.
First,
it
explains
the
indexes
and
hypothesis
of
globalization in cities then analyze Iran's situation in globalization process.
City globalization trend
City globalization depend on the level of globalization of country in economical,
social, political and technological aspects; But cities play a key role in globalization
process. This hypothesis that world moves towards urbanization is a fact that is
happening. Because according to UN statistics in 1950 only 29% of world population
(734 million) lived in cities, this rate was 45 %( 2.5 billion) in 1944 and it is expected to
reach 60% in the first decades of 21 century (Rahnama et al, 2006, 19). Also another fact
that is happening now is the hypothesis that says cities gradually move towards
globalization. Current statistics show that in 1950s, there were only 83 towns which had
over one million populations and most of them were placed in developed country. But in
1995 the number of cities which had a million populations was 253 that most of them are
located in developing country. May be for the first time the term "world city" was used by
Patrick Geddes, a Scotch city planner in 1915 which refers to developed cities into new
larger grouping or con-urbantion (Meekam Ng & Petter Hill, 2003, 151). Following that,
Sir Peter. Hall published "world cities" in 1966. He considered that how cities like New
3
York, London, Tokyo, Paris, and Moscow growth fast and extend their domination in
order to be top world cities.
Peter. Hall recognized these cities as a main center of political power, national and
international states, trade, finance resources, communication and centralization of brains
in education and research. In globalization era real cities are more important than every
other time. Cities are centers for production, distribution and consumption (Gallis,
Micheal,
2002,
2).
According
this,
hypotheses
haven
been
suggested
about
city
globalizations as follow:
1.
Fridman's world city hypotheses:
In 1968, John Fridman and Goetz Wolf brought up "world city hypotheses"
(Meekam Ng et al, 2003, 152).
Hypotheses presented by Friedman argue that "international labor division" are
organized by world cities. These cities are unique because they operate as "control
centers" for world capital accumulation and thus obtaining internal economical and social
structures. Friedman suggests a hierarchy among the list of world cities and it has been
cited largely due to experimental and educational importance but because of the lack of
any obvious foundation, it is especially poor.
The main problems about the results of Fridman's research are the measurement of
world city specifications then their categorization in many tables. Tailor has found fault
with this categorization. He says this categorization present nothing about internal
communications (J.V. Beaverstock et al, 2000, 45).
Another
basic
problem
of
friedman's
hierarchy
is
that,
it
has
ignored
the
complication of European city system where some relatively small cities (Zurich, Vein,
Amsterdam, …) had an inappropriate effect on world and contrary to political integrated
atmosphere of America which Friedman did research in, the specialization of European
cities combined with large national capital and formed an urban model that obviously is
not hierarchical altogether.
2.
Sassen's triad of world cities hypotheses
Sassen's task is especially important for exact recognition of world city nature.
Although
she
has
recognized
changes
in
financial
resources
and
international
banking as a foundation in his hypothesis, he convinced that world cities are more
important than financial centers. In Sassen's view, financial resources are a series of
advanced service productions which determines the function of world cities as "postindustrial production places". This contradiction with primary Friedman's view of
world cities as "general command centers" is due to the centralization of the head
4
offices of companies which Sassen has not considered as a fundamental element of
world city.
The main difference for Sassen is that a world city is a center for basic services of
world capital not its management. Anyway when the question of world hierarchy is
presented, Sassen's analysis power is weakened. Although her argument is more about
inter-city financial exchanges.
But data easily don't reveal that whether three groups (Tokyo, London, New York)
really show the climax of world hierarchy? In general, he provided a comparative study of
worth from world cities and worthy results regarding to parallel changes between New
York, London and Tokyo. Any way, his analysis is not much of improving our
understanding of inter-cities communications.
When we consider the role of London in a European urban system, a serious fault is
specified (J.V. Beaverstock and et al, 2000, 45).
3.
The Rise of the Network society
According to Friedman and Sassen, world city considered as "basic point" or
"centers of world service productions" that can be studied as "process". A. Manual
castells (1996) used the Rise of the Network society to understand world city. He
says that in Network society world cities are combinations of more extensive social
changes and world cities accumulate and preserve their wealth and power because
the process of advanced services link the markets and production centers in global
net (castells, 1996, 380)
World cities are produced and reproduced by the flow of knowledge, information,
money and cultural products not fixed specifications (form and output).
So, theoretically for measurement and standardization have been used castells's
view (1996) in which the city considered as process (space of flows), world city
hypothesis of Fridman (1986) for changeable world economy and analysis hypothesis of
Sassen for accumulation and centrality of service-production series of world city
Experiences of city globalization
The best examples about the experience of cities entrance to globalization process
are the Southeast countries of Asia including china, Indonesia, and India etc. Chinese
cities enter into globalization century by large forces.
Annexation
of
china
to
world
trade
organization
(WTO)
from
2001
and
development of free economy are two main factors in entering the china to globalization
century (Fulong Wu. 2006, 191).
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In a study done about the globalization of Shanghai in China (Yehua Dennis etal,
2006, 231) the importance of foreign direct investment on alternation of Shanghai to
world city has been emphasized. China changed its centralization from state socialism and
self-sufficient to open doors policy and globalization since 1970s and many cities
followed a bravely policy of attracting the foreign investment since 1990s and by
establishing foreign direct investment regions they wanted to reach this goal. In Shanghai
a large amount of FDI in addition to service section use at industrial section. The
important role of industry in Shanghai has changed the situation of this city as a
developing world city like Seoul, Tokyo that emphasizes on factory industries and
products with higher technology. In addition to above factors the government play a key
role in globalization by ratifications of laws and implementation of policies for more
attracting foreign investment and establishing development regions like science-research
parks, transportation terminals etc, as until 2002, from 500 world companies, which
established offices or factories in shanghai, 166 company have invested in this city. The
cause of increasing foreign investment in Shanghai in comparison to other cities is that
municipal has been combined structurally with world economy more than other provinces
and organization of 4 investment regions in national level in Shanghai helped to attract
more foreign direct investment. These 4 regions are one another supplementary. In spite
of these efforts, Shanghai is in the first stage of globalization and there are problems in
the way of the globalization of this city that summarized in three groups as follow:
1.
There is the minority with high-income and majority with low-income
level in comparison to world standards and the relative low-income level damaged to
steps of interchanging Shanghai economy to world economy.
2.
Financial
section
is
still
poor
and
the
process
of
major
company's
formation is slow. In 2000 only 2 national companies had been among 500 World
Company. Shanghai stock exchange in comparison to classical stock exchange like New
York is very small and is in the first stage of changing to a world financial center.
3.
administrative
Like
other
bureaucracy
parts
that
of
China,
indicates
Shanghai
the
maintained
political
the
economic
high
nature
level
of
of
China.
Although Shanghai has done major reforms on this field, municipal in comparison to
other world cities is behind time in terms of transparency. Adaptation with world culture
in the way of social and political is necessary (Yehua Dennis et al, 2006, 243).
Anders
Lofgren
globalization from
(2000,
501)
the perspective
in
a
paper
of European
as
"hundred
peripheral
city"
years
of
loneliness,
by description
the
situation of Trondheim, the third city of Norway with population of 160000 and regional
6
center with half a million people, is intended to answer this question: "how small cities
must reply to globalization" and also stated that more globalization arguments is on the
big cities and more emphasized on competition as an answer to globalization. But at the
present time most of the cities face with challenge of global and local changes. The
selection of strategy and policy are two major aspects of city reaction globalization. In
cities like above-mentioned city, the aim of the policies is local. If the city ask for
international goals, the review of regional-local and even national policies will be
necessary (Anders Lofgren, 2000, 503).
Another example of cities which placed in globalization process is Dubai united
Arab Emirates in south of Persian gulf which has opened the stock market doors to the
world since 2005.UAE receives no taxes or not impose any pressure on companies like
some of
western
stock
markets.
The
major
banks
and
commerce
chambers
have
established offices on new financial part of Dubai.
Dubai
as
a
country which
is
concerned
to
globalization,
attracted
thousands
immigrants from Asia, Middle East and Europe About 80% of Dubai's population are
immigrants. Labors are from Bangladesh, Sri Lanka and Palestine territory (the Global
top 20, 2006, 81). In 2006, $ 2.1 billion goods have been exported to Iran via Dubai port.
More than half of Dubai investors are Iranian. About one third of the passengers of this
sheikhdom are Iranian. (http:// www. iranecomics. Net/ fa/ articles. Asp? Id= 1615 and
magid=83)
Finally, in summing up world cities done by Labored group, 4 parts of world cities
have been determined including: 1. law 2. Banking 3. Marketing and 4. Accountancy. If a
city wants to be in global level, it must have 3 from 4 parts. Cities like New York,
London, Paris and Tokyo place in first group, in third group world cities which at least
have two parts such as Rome, Ban kook, Melbourne, Koalalampore etc …. The cities of
Iran not include in any categorization (John Scot Allen, 2006, 78).
So, according to studies by global centers (labored group) about globalization of
cities, it is clear that Iran's cities are not in any world city categorizations. Thus, Iran cities
confront with challenges in globalization process which must be solved. These challenges
and problem summarized as follow.
Globalization trend of Iran cities
As it said before, cities are national sub-system of country and as much as a country
combine and interact with global process; the cities more combine in this process. So, the
analysis of Iran cities globalization process requires the review of Iran globalization trend
as follows:
7
1. Country globalization trend
Although the globalization process has historical record but the transformation in
1962s and the selection of industrial development model for country progress and the
flow of assembly industry to country prepared the ground for extensive connection with
abroad. Since 1971s, following the rise of oil price and oil incomes the industrialization
process and foreign investment flows increased in country.
The globalization process at this time is only specified based on index of foreign
investment rate. Foreign investment flow to country has decreased until 1979, as (without
accounting oil industry) foreign investment from $ 17 million in 1973 amounted to $ 88
million in 1979 and about 95% of investments attracted by industry.
The outbreak of Islamic revolution along with start Iraq war against Iran (19811989) not only caused government have more control on all social-economical affairs but
also the instability of law reduced the flow of foreign investment rate and in some years
reduced to zero, as during 1981 to1988 the foreign investment was $ 155 million in total
which attracted by industry part.
The globalization perspective is not clear in Iran from1979 to 1989 but obviously at
this time, following the outflow of capital and specialized labor and civil instabilities, we
confronted with not-attraction foreign investment. After the cease of Iraq war against Iran
in 1989 and the collection of development program for country, the ground for foreign
investment
was
prepared.
The
start
of
Iran
globalization
is
in
accompany
with
preparations in regard to the establishment of free economic zones. Generally, the
establishment history of free economic zones which are national gates for globalization,
return to approve of the note of law 19 of the first development program (1989-1994) and
at the final year of this program, three free zones, Gheshm, Kish and Chabahar emerged.
The establishment of secretariat of High council of free zones in 1993 and
the ratification
of law about management quality of Free trade-industrial zones of Islamic Republic of
Iran in September in1994 and delegation of government authorities to High council of
free zones in 1995, prepared more grounds for flourishing of trade zones.( http: // www.
Freezones. Ir/ world free zones History/ tabid/ 145/ Default. Asp)
These preparations leads to opening of over 20 free trade zones in the country (like
Kish free zone, Chabahar free zones, Gheshm free zones, Bandar Anzali special trade
zone, Arvand free zones, Jolfa special trade zone, salafchagan special trade zone, Sirjan
special trade zone, shiraz special trade zone of electronic and electricity, Pars Energy
special trade zone, Payam special trade zone etc).( http:// www. Kishtpc. Com/ Free Trade
% 20 zones-Persian. Htm)
8
In spite of the approve of law about
Free trade Zones and establishment of such
areas, the problems of these areas in attracting the foreign direct investment is as follow:
1.
Structural problem: structural problem include lack of main investment
of government in basic development infrastructures of free trade zones and construction
of all infrastructure taxes of imported goods, lack of electricity, gas, fresh water and high
tariff of water an electricity, as the price of gas oil is four times in comparison to other
parts of the country(mainland).
Other problems such as weakness of banking system and its inefficiency (national
facilities rate is 16% but in kish it is 25%), the problem of air transportation (getting ticket
is in form of charter, lack of change in number of kish flight from 1979 to 2007 indicating
crises over Iran's free trade zones) and numerous changes in land use, from industrial to
trade and trade to tourism specially in kish.
2.
The problem of legal vacuum: Another main weakness of country free
trade zone is legal vacuum. Disappointment of investors due to no but their concern in
changing government policy and losing their assets is another problem as well. Different
view of managers to free zones and ignoring the free trade code by middle managers led
to capital and investor flight from free zones. Non-partnership of private section in
decision-making is another managerial and administrative problem of free trade zones.
Other problem of free trade zones is the amendment of free zones code including the
increase of the length of land lease by foreigner from 15 years to 50 years (like
Chinese).(http:// www. Iraneconomics.Net/ fa/ articles. asp? Id= 1615 and magid= 83)
The review of globalization index in Iran specially after Islamic revolution in 1979
shows this reality .In a period that other countries were intent on economic liberalization
(China, India, Indonesia etc), the obvious specialty of Iran governmental system was
centralism and govermentalization of total affairs due to overthrow of Pahlavi regime
(1979) and the start of Iraq imposed war against Iran (1981).
Nevertheless, after passing lo years of revolution, finally the authorities took step
for connection to world economy by ratification the law of the formation free economic
zones. But because of cultural problems and non-existence of definite strategy, they were
not so much successful and in some years they faced with a lot of fluctuations from stop
to relatively flourish of foreign investment.
As, during recent 12 years from 1995 to 2007, in total $ 7.3 billion FDI attracted by
non-oil parts of country. That is the annual average of FDI has been $ 610 million (http://
www. iraneconomics.Net/ fa/ articles. asp? id = 2812 and mango=98). When comparing
these figures with $ 2.1 billion rate of goods that imported from Dubai in 2006, we realize
9
the poor situation of Iran in globalization process (http:// www. iraneconomics.net/ fa/
articles. asp?id=1609 and magid=83).
In order to more comprehensive analysis of Iran's situation in globalization process,
at this section after description of globalization history, we consider the results of two
measurement indexes in country globalizations and Iran's situation from economical,
cultural and political aspects in globalization process. Iran's situation in globalization
process based on Kof and A.T.kearney
1. Kof globalization Index
Kof Index presented in 2002 (Dreher, 2006).This index includes economical, social
and political aspects of globalization. To be precise, three aspects of Kof Index consist of:
1.
Economic globalization: described as long flow of goods, capital and
services as well as information and supplies that accompany market changes.
2.
Politics
globalization:
that
is
determined
by issue
and
promotion
of
government policies.
3.
Social globalization: described as the development of ideas, information,
pictures and people.
At table No.1 the results of usage of Kof globalization index determined for 122
countries in 2007. Iran among other countries place in 155 level that indicates the poor
situation of country in globalization process and requires to tackle of globalization
obstacles in different aspects.
Table 1: Kof globalization Index for 2007*
Total index of
Economic globalization
Social globalization
Political globalization
globalization
index
index
index
Level
Country
Score
Level
Country
Score
Level
Country
Score
Level
Country
Score
1
Belgium
91/96
1
Luxemburg
98.49
1
Austria
93.10
1
France
98.06
2
Austria
291/60
2
Singapore
95.14
2
Singapore
95.49
2
America
96.11
:
:
.
.
.
.
.
.
.
.
.
115
Iran
35.19
115
Xxx
115
Myanmar
26.52
115
122
Burundi
25.75
122
xxx
122
xxx
10.24
122
Saudi
Arabia
Myanmar
Xxx The information is not available
* Gradation base on data of 2004
Source: http:// yaleglobal. yale. edu/ display. article? Id=8313
2- Globalization index based on A.T.kearney method
10
New
Guinea
Bahamas
17.86
11.44
Globalization index of A.T.kearney foreign policy involves three parts: economic
combination (FDI-etc), Technological (the number of Internet users etc …) and political
(country memberships in international organization etc …). According these parts, 62
countries have been graded based on globalization index in 2005 which have had 96%
gross domestic production (GDP) and 85% of world population. It covered major areas of
the world from developed countries and developing countries to prepare an extensive
view of world combination (2005 Globalization Index Data and Methodology, et al, 2005,
5).
Table No.2 shows the Iran's situation among 62 countries based on fifth annual
A.T.kearney globalization index. The main point is that Iran has been placed at lowest
level in these years.
Table 2: Iran's situation in A.T.kearney globalization index
Globalization
Globalization
Globalization index
Globalization
Globalization
index 2001
index 2002
2003
index 2004
index 2005
Level
Country
level
country
level
country
Level
Country
Level
Country
1
Singapore
1
Ireland
1
Ireland
1
Ireland
1
Singapore
2
Holland
2
Switzerland
2
Switzerland
2
Singapore
2
Switzerland
:
:
:
:
:
:
:
:
:
:
50
Iran
62
Iran
62
Iran
62
Iran
62
Iran
Source: http:// www. World audit.org/ Globalization %20 index %20. htm.
In spit of the establishment of free economic zones as a communicative bridge in
globalization trend of country, the structural problems of free economic zones along with
weakness of law and legislations, variable foreign policy, political disputes between Iran
and
U.S,
unilateral
sanction
of
Us
and
more
recently
arguments
about
uranium
enrichment in Iran led to serious problems in FDI process in the country and made the
economy go into recession. (Figure No.1 shows the Foreign investment trend in Iran
during 1999 to 2003). Internet limitations reduced the technological communication of
country with abroad. The number of per capita security server is meager in Iran even less
than Bangladesh; not being constant online of servers and government control on Internet
users is another globalization problem.
According to this report, it is a long time that Iran has been forgotten in terms of
personal calls of its citizens. The ration of tourists (arrival and departure) to country
population is 7%, even less than Senegal and in comparison to Saudi Arabia which has
47/2%. Clearly, in most of the grounds Iran is slow. (The fifth annual A.T.kearney/
foreign policy Globalization Index, 2005, 5).
11
Figure No.1: FDI trend in Iran since 1999 to 2003
Figure direct investment in
Iran
2.53
0.47
1.34
0.40
1.16
1999
2000
2001
2002
2003
Source: united Nations
http:// www. atkearney.com/ shared-res/ pdf/ REID-Epc-s.pdf
Future Challenges of globalization of Iran's cities
In Iran not only the practical actions for link to world economy started with delay
and moves forward more slowly and ambiguously but also scientific literature related to
globalization is in the first stage, as from total number of main 16 sources most common,
writing, translation including book and paper which are printed in Iran since1992 to 2007,
69% of them printed since 2002. Not major and fundamental work has been done in the
connection of city globalizations. Even, until now the measurement methods and models
of globalization including above-mentioned models not printed in any Persian sources.
So, there is informational poverty to determine the strategy of combination quality in
globalization process not only in theoretical but practical aspect as well. Iran cities are not
able to do actions in globalization process from national system. As, it said before, the
establishment of three Free economic zone kish, Chabahar, Gheshm since 1989 to 1994
has been the first formal action for Iran combination in globalization process and the
ratification of law of free economic zone and establishment of High council of free zones
and formation about 20 free economic zones in country border sides has been another
major action along globalization and connection of national economy to world economy.
So, the cities are located at the center of these zones such as Kish, Chabahar, and Gheshm
acted as entrance gates in globalization process. These cities in terms of function and
population number are lack of regional-national politics centrality and their output is
more local-regional. But due to good geographical (naval) situation and access to
international waters, they have been suitable entrance gates and knot point for linking the
national economy to world economy. Considering the prominent geographical situation of
all free economic zones (20 zones) and its slow movement, if there were definite strategy
for linking to world economy, 15 years period to compete with centers like Dubai and
12
Doha etc would be enough. Accomplishment of free trade zones in globalization the
country and cities in the area have been much insignificant. These problems consist of:
1.
Cultural problems (different view of Islamic Republic to world cultural
issues and their incompatibility to one another).
2.
Structural
problems
including
non-governmental
investment
in
infrastructural of free zones development like: providing electricity grid, fresh water, gas,
city installations, fuel (the high price of fuel which is 4 times in Kish free zone in
comparison to other part of the country-mainland) numerous changes of the usages of
development plan.
3.
The weakness of banking and financial system in free economic zones and,
air transportation system.
4.
managerial
problems
(inexperienced
and
unfamiliar
manger
to
international affairs)
5.
Legal vacuum and weaknesses such as instability of free economic zone
codes and their insufficiency and the amendment of some of them include (law of 15
years land lease etc …).
Cities are national sub-system and as much a country globalize in terms of
economical, social and political as those cities change and to be adapted with world
system.
According
to
Castelle's
theory,
in
global
net,
cities
are
the
centre
of
communication and link and act as product, marketing and consumption.
If the general system of country changes structurally, cities as a net focuses will
increase their globalization speed in this scuffle.
In fact, challenges in front of globalization of Iran's cities are the same indexes and
variables that cited in "Kof" and "Kearney" report. thus, Iran cities must change in terms
of software (law and legislations, policy and structures) and hardware (installations,
equipments and possibilities) and also in terms of political-cultural compatibility (like
model that metropolis Istanbul adopt in Turkey) to be adapted with world system.
Conclusion
Thus, In a condition that world globalizations and city globalization is an inevitable
matter, considering the country geographical situation, strengthening the free economic
zone as an entrance gates and communicative bridge between national land and abroad,
The globalization process despite delayed movement is increasing but requires solving
structural
problems
(infrastructural
investments
and
tackling cultural,
managerial
and
legal vacuum. Voluntary acceptance of globalization demands to take fundamental bold
steps along structural reform of decision making, partnership and economical, social, and
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political combination in globalization process. That is, in fact it is compatibility with Kof
and A.T.Keanray suggested indexes).
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