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==Summary==
==Summary==


===How the World Became Flat===


'''''Note:''' Page numbers refer to the first edition. Material in italics, however, derives from the updated and expanded 2006 edition, which added new chapters on "The Right Stuff" and "Globalization of the Local" and repaired the 2005 edition's neglect of the role of [[Apple Computer|Apple]] computers.''

====Chapter 1: While I Was Sleeping====

Friedman presents himself as someone distracted by international crises since the [[attacks of September 11, 2001]] who is now catching up with the progress of globalization. He discovers that the world has entered into a new phase of globalization whose history he briefly characterizes as follows:
* '''Globalization 1.0''' - The years 1492 to 1800 where the world was driven by countries and armies;
* '''Globalization 2.0''' - the years 1800 to 2000 where the world was driven by [[multinational companies]] and came first by falling transportation costs and later by falling [[telecommunication]] costs;
* '''Globalization 3.0''' - the years beginning in the year 2000 in which the world will be driven by the empowerment of individuals.

====Chapter 2: The Ten Forces That Flattened the World====

Friedman identifies ten forces that have produced this new [[socioeconomic]] [[paradigm]].

=====11/9/89 (Fall of the Berlin Wall)=====

The fall of the [[Berlin Wall]] (9th November, 1989) and the advent of [[PC]]s, [[Macintosh]]s ''[neglected in the 2005 edition]'', and [[Microsoft|Windows]] [[software]] have produced a global unification under the auspices of capitalism.

=====8/9/95 (When Netscape went Public ''[renamed in 2006: "The New Age of Connectivity: When the Web Went Around and Netscape Went Public," with more attention to [[Tim Berners-Lee]] and the creation of the Internet]'')=====

The confluence of the [[Internet]], [[email]], and [[web browser]]s, together with the [[overinvestment]] in [[optical fiber]] that occurred during the [[dot-com bubble]], have produced a new template for economic activity (56-71).

These technologies have flattened the world because:
* First commercial browser to surf the web
* Increased Internet access (all ages can now search)
* Helped make the internet interoperable. This includes: reducing Islands of automation (meaning that separate departments can not communicate with each other), the lack of communication between a PC and Mac, and developing open protocols.
* Finally decide on ONE format for all users to use. Consumers wanted easy access: meaning they wanted companies to compete once they were on the internet, not over how they get on the internet.
* Allowed individuals and their computer interact with anyone anywhere on a different machine
* PC-Windows phase (introduction of windows 95) and Netscape phase together enabled more people to communicate more than ever before

This phase includes the transition from individual PC’s to a more Internet based.
The two key applications in this phase are: email and internet browsing.

=====Work Flow Software=====

The extension of common [[Web standards|Web-based standards]] has become operational. ''A new revolution [in [[workflow]]] is underway, thanks to [[AJAX]], which accesses software on a remote platform rather than on a desktop computer.'' (From these first three "forces" results what Friedman calls "the Genesis [''2006: 'genesis'''] moment for the flattening of the world" [80].)

=====Open-Sourcing ''(In 2006, retitled 'Uploading')''=====

Self-organizing collaborative communities are evolving, e.g., [[Apache HTTP Server|Apache]], [[Wikipedia]], ''and [[blog|blogging]]/[[podcast|podcasting]]'' allowing people to expand and broaden knowledge free of barriers. (81–103) ''"[O]f all the ten forces flattening the world, uploading has the potential to be the most disruptive."''

=====Outsourcing=====

[[Outsourcing]] has become common (this was given a spur by the opportunity given to [[India]] by [[Y2K]] demands for programming, and far from impeding globalization's development, the dot-com bubble’s implosion in fact "turbocharged" it); Friedman focuses here mainly on India and how outsourcing around the time of Y2K benefited India's economy many times over.

=====Offshoring=====

[[Offshoring]] (China joins WTO in 2001; "China is . . . simply racing everyone to the bottom” , China’s advantages are overwhelming) Friedman, likens the day that China officially joined the World Trade Organization as the day that the world competitively began to “run faster and faster”, much like gazelles and lions run to keep their own competitive balance in nature; curiously, Friedman never mentions the word ''[[maquiladora]]'' in this discussion.

=====Supply-chaining=====

[[Supply chain|Supply-chaining]] ("collaborating horizontally — among suppliers, retailers, and customers — to create value"), of which [[Wal-Mart]] serves as an example. ''Supply-chaining permits "replacing inventory with information."''

=====Insourcing=====

Insourcing (i.e. servicing supply chains, "third-party-managed logistics") ([[United Parcel Service|UPS]]).

Insourcing is when another company basically does a process (repairs, manufacturing, delivering) for you and it is invisible to the customer. It is a new form of collaboration and creating value horizontally

How it flattened the world:
* Synchronized Commerce and Extra collaboration and adds horizontal value (UPS is helping companies have faster supply chains, companies are working together to have faster supply chains)
* Allows small companies to be more global. Small companies can act big because it allows them to buy cheaper goods and sell more products overseas.
* Can help big companies act small
* It evens the customs barriers and balances trade by making the delivery of goods and services around the world "super efficient and super fast".

How is it different from supply chaining: Insourcing goes beyond just supply chain management. "Because it is third party managed logistics, it requires much more intimate and extensive collaboration". The book offers the example that UPS is so far into client, that it is hard to tell where client starts and UPS stops. UPS is not just synchronizing the packages- but the whole company and its interactions with customers and suppliers

=====In-forming=====

By "in-forming" Friedman means "the ability to build and deploy your own personal supply chain — a supply chain of information, knowledge, and entertainment", and [[Google]] is taken as an exemplification of these possibilities ("Google is like God," says Alan Cohen, VP of Airespace).

=====Amplifying technologies, or "steroids"=====

By "steroids" Friedman means amplifying technologies like increased computing speed, [[file sharing]], additional devices, and especially [[wireless]].

====Chapter 3: The Triple Convergence====

Friedman argues that a triple convergence has taken place of
* a global, Web-enabled playing field that allows for multiple forms of collaboration . . open today to more people in more places on more days in more ways than anything like it ever before in the history of the world
* development of new ways to collaborate horizontally
* the opening up of the societies of China, India, Russia, Eastern Europe, Latin America, and Central Asia. This triple convergence is "the most important force shaping global economics and politics in the early twenty-first century." (181-82).

Friedman argues globalization will be increasingly driven by individuals and profiles Zippies - Indians who have come of age since India embraced capitalism. His discussion of China focuses on student visas, of Russia on the experience of [[Boeing]]. These developments were obscured, however, by "the other triple convergence," viz. the [[dot-com bust]], 9/11, and the [[Enron]]-related business scandal.

====Chapter 4: The Great Sorting Out====

Friedman pays tribute to [[Marx]] as analyst of capitalism, at the suggestion of Prof. [[Michael Sandel]] of [[Harvard University]]. ''Networks in flat world also have the potential to be extremely destablizing.'' Freidman discusses, rather uncritically, the nature of [[corporation]]s, and argues that in the new paradigm that is developing hierarchies will be undermined ([[Colin Powell]]'s experience is cited as an example). But social responsibilities do not always jibe with political attitudes. New [[property]] issues to resolve have arisen. Communication is reduced to more impersonal means. And important values questions remain.


===America and the Flat World===
===America and the Flat World===

Revision as of 20:40, 19 July 2006

The World Is Flat cover

The World Is Flat: A Brief History of the Twenty-first Century (Farrar, Straus and Giroux, 2005 ISBN 0374292884) — "updated and expanded" in 2006 (ISBN 0374292795) — is a best-selling book by Thomas L. Friedman analyzing the progress of globalization with an emphasis on the early 21st century. Friedman's thesis deals with a concept he calls flattening, a process by which individuals as well as companies become empowered through the process of globalization. Friedman analyzes how accelerated change is made possible through intersecting technologies and social protocols, such as cell phones, the Internet, and open source software. Friedman criticizes societies that resist these changes, arguing that the inevitability of global change forces all societies to either adapt to its forces or be left behind. The World is Flat was based on much of Friedman's personal research, travel, conversation, and reflection. In his characteristic style, he communicates his complex conceptual analysis of flattening to the public with personal anecdotes and opinions.

Summary

America and the Flat World

Chapter 5: America and Free Trade

The self-identified "free-trader" (127) mentions David Ricardo’s theory of comparative advantage as the theoretical underpinning justifying globalization as an economic project (225-26). Friedman acknowledges that there is currently an intense debate over the status of this theory, but opines that "Ricardo is still right" (227). His chief reason for dismissing objections is that economics is not a zero-sum game (227-29). He admits, however, that those who are low-skilled are very vulnerable to current trends (229-30), but he expresses an abiding faith in the existence of an infinite array of human wants and needs that can endlessly fuel economic expansion (231-34). He quotes Raghuram Rajan, director of research for the International Monetary Fund, who says that "everyone wins" in a world with a "bigger but more complex pie" (234-236). 2006: Friedman adds passages here and there (about two pages in all) reinforcing his rebuttal of arguments that the theory of competitive advantage no longer applies in a globalized economy with revolutionized information technologies.

Chapter 6: The Untouchables

An untouchable, in Friedman's parlance, is a person whose job cannot be outsourced (238). According to Friedman, Untouchables come in four broad categories: workers who are "special", workers who are "specialized" (in 2006, these two categories are lumped together), workers who are "anchored," and workers who are "really adaptable." (2006: Friedman adds a 16-page section illustrating such occupations.)

Adaptability through education is key to economic security (239-43). Friedman reviews the advantages that the United States possesses: U.S. research universities & labs (243-45), capital markets (245-47), intellectual property laws, flexible labor laws, large domestic market, political stability, and a tradition as a meeting place for cultures (247-48).

Additional chapter (7 in the 2006 edition) entitled "The Right Stuff"

Friedman identifies themes that are important for educators to emphasize in a flat world: learning how to learn, passion and curiosity, liking other people, nourishing the right brain. Georgia Tech successfully reformed itself along these lines in the 1990s. U.S. has the potential to adapt to the flat world, but so far is not doing so.

Chapter 7: The Quiet Crisis

Friedman argues that the United States also has so many significant weaknesses that "we are in a crisis now" (252). The U.S. is neglecting science and engineering (256-60). American youth show signs of a lack of ambition and work ethic (260-65). And foreigners are increasingly better educated (265-75). 2006: Friedman adds additional points: The U.S. is not teaching its young people advanced math, science, and engineering; too much authority is given to local school boards in the U.S.; education is underfunded; the U.S. should invest more in information infrastructure, like broadband; China is intent upon overcoming its weaknesses; U.S. leaders are ignoring the importance of this "crisis."

Chapter 8: This Is Not a Test

Friedman issues a call to Americans to respond to the challenge (276-80). There is yet an unmet need for political leadership (280-84). On social issues, Friedman briefly argues that benefits and education should be "as flexible as possible"; he calls for "portable health insurance" (287) and proclaims that he wants to see "every American man or woman on a campus" (290) (285-93). Pro-globalization advocates must recognize the need for compassionate measures, if only out of self-interest (293-97). There remains a need to sort out "the relationship between global corporations and their own moral consciences" (297); Friedman argues there is a little-acknowleged and hard-to-see "progressive tilt" observable in the behavior of big business (302). Another crying need, he adds, is for "improved parenting" (303-06).

Developing Countries and the Flat World

Chapter 9: The Virgin of Guadalupe

In this chapter, Friedman briefly addresses the problems of developing countries. He jokingly proposes the establishment of a "Developing Countries Anonymous (D.C.A.)" organization modeled on Alcoholics Anonymous (313). Top-down reform has limits in these societies, he argues (313-15). There is a need for what he calls "reform retail": "upgrading" infrastructure, regulatory institutions, education, and culture to “remove as many friction points as possible” that impede globalization (317-23). He exhorts societies to be open cultures and reject tribalism, and has special criticisms for Muslim societies (324-29). Additional, intangible factors, are social will and dynamic leadership (329-36).

Companies and the Flat World

Chapter 10: How Companies Cope

Friedman offers seven rules for companies aspiring to be successful in the era of "Globalization 3.0" (339-67).

  1. When the world goes flat, and you are feeling flattened, reach for a shovel and dig inside yourself. Don’t try to build walls.

  1. One way small companies flourish in the flat world is by learning to act really big. And the key to being small and acting big is being quick to take advantage of all the new tools for collaboration to reach farther, faster, wider, and deeper.
  2. One way that big companies learn to flourish in the flat world is by learning how to act really small by enabling their customers to act really big.
  3. The best companies are the best collaborators. In the flat world, more business will be done through collaborations within and between companies, for a few simple reasons: The next layers of value creation, whether in technology, marketing, biomedicine, or manufacturing, are becoming so complex that no single firm or department is going to be able to master them alone.
  4. In a flat world, the best companies stay healthy by getting regular chest X-rays and then selling the results to their clients. To constantly identify and strengthen their niches, and outsource the stuff that is not very differentiating.
  5. The best companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in order to grow larger, gain market share, and hire more and different specialists, not to save money by firing more people...
  6. Outsourcing isn’t just for Benedict Arnolds. It’s also for idealists. To make a positive impact on the world, it is better to teach someone to fish vs. just giving him a fish.

Geopolitics and the Flat World

Chapter 11: The Unflat World

Friedman discusses his philosophy of history: "I am a technological determinist! … I believe that capabilities create intentions. … But … I am not a historical determinist" (374). He admits that he has exaggerated many of the features of the contemporary world that he has been describing, and notes: "I know that the world is not flat" (375). " The Middle class" is, according to Friedman, a state of mind and a key to social stability (375-78). He praises the Bill and Melinda Gates Foundation for looking out for, in Bill Gates's words, "that other 3 billion" (378-82). Friedman briefly notes the existence of the "half flat": rural India, rural China, rural Eastern Europe (382-83). He claims to identify the five forces that drive the anti-globalization movement: liberal guilt, rear-guard socialism, nostalgia, anti-Americanism, and criticism of process, and castigates all but the last of these (384-91). Once again he tries to diagnose the frustration and humiliation of Arab-Muslim cultures, and offers this prescription: self-realization and confession (391-406). China’s embrace of automobile culture is critiqued (407-13). The Bush administration's indifference to environmental and conservation policies is criticized.

Additional chapter (13 in the 2006 edition) on "Globalization of the Local"

Friedman examines whether globalization is Americanizing other cultures, and argues that it is not bringing about homogenization of cultures.

Chapter 12: The Dell Theory of Conflict Prevention

With the help of the Dell, Inc., Friedman describes in detail the history of the Dell laptop on which this book was written (414-19). This serves as an introduction to the importance of just-in-time supply chains as an influence on international relations (420). "[T]he advent and spread of just-in-time global supply chains in the flat world are an even greater restraint on geopolitical adventurism than the more general rising standard of living that McDonald’s symbolized [in Friedman's book The Lexus and the Olive Tree] . . . . Because people embedded in major global supply chains don’t want to fight old-time wars anymore" (420-21). Supply-chain membership is an asset that national elites are wary of risking in war (422). Crises with Taiwan and China, and between India and Pakistan are presented as successful test cases of Friedman's "Dell theory of conflict prevention" (423-29). Friedman discusses Al-Qaeda as an exploiter of flat-world technology, forming "mutant global supply chains," and cites the report by Gabriel Weimann of Haifa University on terrorists’ use of the Internet (429-36). In discussing nuclear terrorism, Friedman endorses Graham Allison’s "doctrine of the Three No’s: No loose nukes, No new nascent nukes, and No new nuclear states" (437). But the similarity of the Internet to the Tower of Babel is denied (438).

Conclusion: Imagination

Chapter 13: 11/9 Versus 9/11

Friedman presents 11/9 and 9/11 as symbols of two contending sorts of imagination (441-47). He argues that America must continue to be a “dream factory” exporting hope, rather than a fortress (447-50). To that end, he makes a plea to retire September 11, 2001, as a defining moment for the United States (451-52). Imagination, he asserts, is a product of narratives and social formation; the key to progress is the reintepretation of narratives (452-53). He gives eBay as an example of the creation of a self-governing community (453-56), and cites the (relative) good fortune of Muslims in India (456-60). Oil resources are a factor in preventing representative institutions from developing, he argues (460-64). He visits a school for untouchables in India (464-68). (This passage, which was much criticized by Indians, [1], as well as the concluding warning about protectionism, were cut from the 2006 edition.) In closing, Thomas Friedman asserts that the greatest dangers facing U.S. are “an excess of protectionism . . . and excessive fears of competing” (469).

Criticism

The central image of the book―the "flat" world―has been criticized as an "inaccurate and empty image"[1] that does not suit Friedman's own argument. While Friedman argues that the world is increasingly inter-connected, his image may suggest the opposite, as a flat world would be harder to navigate than a round one.

Critics have suggested that Friedman fails to address issues of unfair market advantages by certain companies and nation states, the increased destruction of the environment as a result of globalization, in addition to the argument by some that the overall quality of life has dropped for the vast majority of affected peoples[citation needed]. Many say that the free market is not free, if dominated by a small group of wealthy countries, that dictate the terms and conditions of inclusiveness into the free market. The United States domination and sole veto over the World Bank and IMF are not addressed at all.[citation needed]

Also, critics have said that the book is overly optimistic in its assessment that technologies are the great flattener, and that countries that are either wealthy, or heavily subsidizing education and technology have an extreme advantage over the 'have nots'.[citation needed]

Additionally, the book blames the attacks of 9/11 on Middle Eastern countries failing to integrate into the world economic status quo. Some suggest that US and European economic interests imposing their world view upon the Middle East is the very source of resentment against the west.[citation needed]

Critics say Friedman's book is a justification for the brutal effects of globalization, by attempting to highlight the notable, but relatively small examples of success. Friedman is seen to gloss over the grievances of anti-globalist critics.[citation needed]

Trivia

  • The book was first published with a jacket that bore a painting, called "I Told You So", depicting a sailing vessel falling off the edge of the world. The week the book came out it was learned that the publisher had not obtained the artist's permission to use the painting. Farrar, Straus and Giroux printed a new cover using an image of the earth literally flattened like a coin from the Corbis stock photography library. In an interesting twist, because the book had rocketed to the top of the nonfiction New York Times Best Seller list, the new cover also includes the text "National Bestseller", something common for paperbacks but highly unusual for first edition hardbound covers.

References

  1. ^ Confusing Columbus. The Economist, March 31st 2005.