Thomas Friedman - The World is Flat

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Thomas L. Friedman is not so much a futurist, which he is sometimes called, as a presentist. His aim in
, as in his earlier, influential
, is not to give you a speculative preview of the wonders that are sure to come in your lifetime, but rather to get you caught up on the wonders that are already here. The world isn't going to be flat, it
flat, which gives Friedman's breathless narrative much of its urgency, and which also saves it from the Epcot-style polyester sheen that futurists—the optimistic ones at least—are inevitably prey to.
What Friedman means by "flat" is "connected": the lowering of trade and political barriers and the exponential technical advances of the digital revolution that have made it possible to do business, or almost anything else, instantaneously with billions of other people across the planet. This in itself should not be news to anyone. But the news that Friedman has to deliver is that just when we stopped paying attention to these developments—when the dot-com bust turned interest away from the business and technology pages and when 9/11 and the Iraq War turned all eyes toward the Middle East—is when they actually began to accelerate. Globalization 3.0, as he calls it, is driven not by major corporations or giant trade organizations like the World Bank, but by individuals: desktop freelancers and innovative startups all over the world (but especially in India and China) who can compete—and win—not just for low-wage manufacturing and information labor but, increasingly, for the highest-end research and design work as well. (He doesn't forget the "mutant supply chains" like Al-Qaeda that let the small act big in more destructive ways.)
Friedman has embraced this flat world in his own work, continuing to report on his story after his book's release and releasing an unprecedented hardcover update of the book a year later with 100 pages of revised and expanded material. What's changed in a year? Some of the sections that opened eyes in the first edition—on China and India, for example, and the global supply chain—are largely unaltered. Instead, Friedman has more to say about what he now calls "uploading," the direct-from-the-bottom creation of culture, knowledge, and innovation through blogging, podcasts, and open-source software. And in response to the pleas of many of his readers about how to survive the new flat world, he makes specific recommendations about the technical and creative training he thinks will be required to compete in the "New Middle" class. As before, Friedman tells his story with the catchy slogans and globe-hopping anecdotes that readers of his earlier books and his
columns know well, and he holds to a stern sort of optimism. He wants to tell you how exciting this new world is, but he also wants you to know you're going to be trampled if you don't keep up with it. A year later, one can sense his rising impatience that our popular culture, and our political leaders, are not helping us keep pace.
—Tom Nissley

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It is this triple convergence-of new players, on a new playing field, developing new processes and habits for horizontal collaboration—that I believe is the most important force shaping global economics and politics in the early twenty-first century. Giving so many people access to all these tools of collaboration, along with the ability through search engines and the Web to access billions of pages of raw information, ensures that the next generation of innovations will come from all over Planet Flat. The scale of the global community that is soon going to be able to participate in all sorts of discovery and innovation is something the world has simply never seen before.

Throughout the Cold War there were just three major trading blocs-North America, Western Europe, and Japan plus East Asia-and the competition among the three was relatively controlled, since they were all Cold War allies on the same side of the great global divide. There were also still a lot of walls around for labor and industries to hide behind. The wage rates in these three trading blocs were roughly the same, the workforces roughly the same size, and the education levels roughly equivalent. “You had a gentlemanly competition,” noted Intel's Chairman Craig Barrett.

Then along came the triple convergence. The Berlin Wall came down, the Berlin mall opened up, and suddenly some 3 billion people who had been behind walls walked onto the flattened global piazza.

Here's what happened in round numbers: According to a November 2004 study by Harvard University economist Richard B. Freeman, in 1985 “the global economic world” comprised North America, Western Europe, Japan, as well as chunks of Latin America, Africa, and the countries of East Asia. The total population of this global economic world, taking part in international trade and commerce, said Freeman, was about 2.5 billion people.

By 2000, as a result of the collapse of communism in the Soviet Empire, India's turn from autarky, China's shift to market capitalism, and population growth all over, the global economic world expanded to encompass 6 billion people.

As a result of this widening, another roughly 1.5 billion new workers entered the global economic labor force, Freeman said, which is almost exactly double the number we would have had in 2000 had China, India, and the Soviet Empire not joined.

True, maybe only 10 percent of this new 1.5 billion-strong workforce entering the global economy have the education and connectivity to collaborate and compete at a meaningful level. But that is still 150 million people, roughly the size of the entire U.S. workforce. Said Barrett, “You don't bring three billion people into the world economy overnight without huge consequences, especially from three societies [like India, China, and Russia] with rich educational heritages.”

That is exactly right. And a lot of those new workers are not just walking onto the playing field. No, this is no slow-motion triple convergence. They are jogging and even sprinting there. Because once the world has been flattened and the new forms of collaboration made available to more and more people, the winners will be those who learn the habits, processes, and skills most quickly-and there is simply nothing that guarantees it will be Americans or Western Europeans permanently leading the way. And be advised, these new players are stepping onto the playing field legacy free, meaning that many of them were so far behind they can leap right into the new technologies without having to worry about all the sunken costs of old systems. It means that they can move very fast to adopt new, state-of-the-art technologies, which is why there are already more cell phones in use in China today than there are people in the United States. Many Chinese just skipped over the landline phase. South Koreans put Americans to shame in terms of Internet usage and broadband penetration.

We tend to think of global trade and economics as something driven by the IMF, the G-8, the World Bank, the WTO, and the trade treaties forged by trade ministers. I don't want to suggest that these governmental agencies are irrelevant. They are not. But they are going to become less important. In the future globalization is going to be increasingly driven by the individuals who understand the flat world, adapt themselves quickly to its processes and technologies, and start to march forward-without any treaties or advice from the IMF. They will be every color of the rainbow and from every corner of the world.

The global economy from here forward will be shaped less by the ponderous deliberations of finance ministers and more by the spontaneous explosion of energy from the zippies. Yes, Americans grew up with the hippes in the 1960s. Thanks to the high-tech revolution, many of us became yuppies in the 1980s. Well, now let me introduce the zippies.

“The Zippies Are Here,” declared the Indian weekly magazine Outlook. Zippies are the huge cohort of Indian youth who are the first to come of age since India shifted away from socialism and dived headfirst into global trade and the information revolution by turning itself into the world's service center. Outlook called India's zippies “Liberalization's Children” and defined a zippie as a “young city or suburban resident, between 15 and 25 years of age, with a zip in the stride. Belongs to Generation Z. Can be male or female, studying or working. Oozes attitude, ambition and aspiration. Cool, confident and creative. Seeks challenges, loves risks and shuns fear.” Indian zippies feel no guilt about making money or spending it. They are, says one Indian analyst quoted by Outlook, “destination driven, not destiny driven, outward looking, not inward, upwardly mobile, not stuck-in-my-station-in-life.” With 54 percent of India under the age of twenty-five-that's 555 million people-six out of ten Indian households have at least one potential zippie. And the zippies don't just have a pent-up demand for good jobs; they want the good life.

It all happened so fast. P. V. Kannan, the CEO and cofounder of the Indian call-center company 24/7 Customer, told me that in the last decade, he went from sweating out whether he would ever get a chance to work in America to becoming one of the leading figures in the outsourcing of services from America to the rest of the world.

“I will never forget when I applied for a visa to come to the United States,” Kannan recalled. “It was March 1991.1 had gotten a B.A. in chartered accountancy from the [Indian] Institute of Chartered Accountants. I was twenty-three, and my girlfriend was twenty-five. She was also a chartered accountant. I had graduated at age twenty and had been working for the Tata Consultancy group. So was my girlfriend. And we both got job offers through a body shop [a recruiting firm specializing in importing Indian talent for companies in America] to work as programmers for IBM. So we went to the U.S. consulate in Bombay. The recruiting service was based in Bombay. In those days, there was always a very long line to get visas to the United States, and there were people who would actually sleep in the line and hold places and you could go buy their place for 20 rupees. But we went by ourselves and stood in line and we finally got in to see the man who did the interview. He was an American [consular official]. His job was to ask questions and try to figure out whether we were going to do the work and then come back to India or try to stay in America. They judge by some secret formula. We used to call it 'the lottery'-you went and stood in line and it was a life lottery, because everything was dependent on it.”

There were actually books and seminars in India devoted entirely to the subject of how to prepare for a work visa interview at the U.S. embassy. It was the only way for skilled Indian engineers really to exploit their talent. “I remember one tip was to always go professionally dressed,” said Kannan, “so [my girlfriend and I] were both in our best clothes. After the interview is over, the man doesn't tell you anything. You had to wait until the evening to know the results. But meanwhile, the whole day was hell. To distract our minds, we just walked the streets of Bombay and went shopping. We would go back and forth, 'What if I get in and you don't? What if you get in and I don't?' I can't tell you how anxious we were, because so much was riding on it. It was torture. So in the evening we go back and both of us got visas, but I got a five-year multiple entry and my girlfriend got a six-month visa. She was crying. She did not understand what it meant. 'I can only stay for six months?' I tried to explain to her that you just need to get in and then everything can be worked out.”

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