Thursday, May 13, 2010

The World Is Flat: A Brief History of the Twenty-First Century by T. Friedman

The World is Flat is a reflection about the globalization that is taking place nowadays. This topic is indeed not new, and has been debated by many other thinkers before. However, Friedman takes the reflection further, analyzing the causes as well as drawing conclusions on how to deal with it the best way. Being a journalist working for the New York Times, the author uses the many experiences he had throughout the years in order to prove his point. The stories are told in a very personal fashion which makes the book more alive, so that the reader can better identify with the issues the world is presently facing. What makes this book so special is that Friedman warns us of the problems that are lying ahead without being alarmist. He has a rational and objective approach that makes his arguments more striking. He analyses this “flat world” in an extremely clear and scientific way. This expression symbolizes the interrelatedness between all parts of the world that exists nowadays. In an interview, the author stated, that "it is now possible for more people than ever to collaborate and compete in real time with more people on more different kinds of work from more different corners of the planet and on a more equal footing than at any previous time in the history of the world."

First of all, he wonders how such phenomenon could take place. He identifies ten flattening factors, which are the following: the collapse of the Berlin Wall in 11/89; Netscape, that broadened the audience for the internet; work flow software; uploading; outsourcing; offshoring; supply-chaining; insourcing; in-forming (like Google for instance); and what he calls “the steroids”, personal digital devices like the mobile phone for instance. The interrelatedness of all these factors linked to the creation of complementary softwares, as well changes in developing countries like China and India increased this process of globalization. Due to all these changes the environment has drastically evolved making it harder for actors to cope with it. However the fact that the world is flat cannot be ignored, meaning that decisions need to be made in order to adapt and survive in this hostile environment. Friedman believes that protecting oneself from this phenomenon by erecting barriers, although it might have short-term benefits will only result in a country to be left behind and not be able to keep up with the fast pace of globalization. Friedman gives the example of the US, where he believes a quiet crisis is presently taking place. For example, the author mentions Basketball, a sport in which the US does not dominate as much as it did before. Friedman emphasizes the fact that quick actions need to be taken.

How should individuals react to that statement, how can they make the best out of globalization? The solution is to take change as a given and accept it as a fact. Individuals need to create the right environment, focusing on right-brain skills, meaning knowledge and creativity: In short, the things that cannot be replicated by computers. Friedman mentions for instance that skills such as music might have a positive effect on individuals. At the level of companies, innovation is the remedy. Also, in such an environment, they need to act small to get bigger. Focusing on what they can do best, meaning more cooperation and outsourcing, as well as focusing on niche markets will help them cope with increased competition. The author gives the example of Aramex, a small Indian package delivery service company that was able to challenge bigger businesses through an efficient and focused web strategy. The aim is to know yourself better, in order to rationalize your efficiency. The message is that you need to get untouchable in your field, through better education and training, to successfully cope with this new world. Friedman also stresses the role of governments in this difficult task. As we can see, this book challenges a certain number of assumptions and forces individuals to face the changes that are taking place around them, a hard thing to do but a vital one.

An interesting thing about this book is that the author also analyses globalization in a political way. There are two examples that I found especially relevant:

First of all, Friedman believes that a “flat world” can stabilize international relations: Indeed, two companies sharing common interest in a business are less likely to go to war against each other.

Another interesting point is that globalization can both have an enlightening as well as a destructive effect on the world. On one hand, it enhances creativity and the production of wealth. On the other hand, it can also be used by terrorists. The events of 9/11 are most certainly a negative consequence of globalization, since it demonstrates an example of destructive creativity.

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