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Mollenkopf 1992). Given the large numbers of people who can be served by new construction as well as the scale of the activities involved, it is normal that political and economic maneuvers will also take place at the level of the national government (Stren 2001; Le Galès 2002). S. case presented in Hayden 2003). In fact, urban development in many countries shows a recurring cycle of capital being poured into lower-priced or lower-rent zones, either in what had been the fringes of cities or in urban districts that were seen as having fallen on hard times.

On the other, world cities are physical places with considerable capital needs, investment opportunities, and purchase possibilities. Both sets of transactions may involve the same persons (and, to a lesser degree, the same government officials), but in two different roles. If world cities concentrate migrants, they bifurcate investors. This same duality can also be seen with regard to some of the criminal activities typical of large, reasonably open cities. Consider the cocaine trade, which involves important transnational production, shipment, and distribution channels capable of serving any market.

Capital Flows As densely built environments, cities have significant capital needs. Streets, lights, water, and sewage lines come to mind; but so too do apartment buildings or houses, commercial buildings, hospitals, schools, police, and fire stations; and perhaps industrial facilities as well. For the last two centuries or so, the financing for these various types of real property has in most countries come from a combination of public and private sources. Typically, housing and commercial construction is put together by private developers, though with significant state support (loan guarantees, interest subsidies, utilities financing, zoning arrangements, and so forth).

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