A world-wide mosaic of large city-regions seems to be over-riding (though is not effacing entirely) an earlier core-periphery system of spatial organization. The economic dynamics of these city-regions are analysed with particular emphasis on the ways in which they tend to generate increasing-returns effects and competitive advantages for local producers. The managerial tasks that these city-regions face raise many new issues about local economic development policy and institution building in the interests of social order. These issues lead on to further questions about democracy and citizenship in the global mosaic of city-regions as well as in the new world system as a whole.