The following paper sets the city of Salvador-Bahia, Brazil's third most po
pulated city, in context with the effects of globalization. Between the 195
0's and 1970's, Brazil's northeastern region experienced fast economic grow
th due to federal financial and fiscal incentives. This sudden process occu
rred unevenly at regional and city levels, especially for Salvador that rel
eased internal areas to expand and decentralize itself. However, during the
1980's and 1990's this process was reversed due to neoliberalism and produ
ctive restructuring. These are the elements that define in what terms globa
lization sets in. Consequently, the economic and social spaces of the metro
politan area contracted, increasing the number of unemployed and under-empl
oyed people, and intensifying social segregation and exclusion. On the othe
r hand, some "modern islands" in the city began to gather around small but
economically prosperous activities like tourism and linked themselves to ot
her national and international areas instead of local places and flows.