The World is Flat - Book Review

Globalization has been the center of many debates and arguments in recent years. Some believe that globalization aides in the advancement of developing countries while others argue that it impedes development. In the book The World is Flat the author Thomas Friedman investigates the affect globalization has on developing countries. The author's extensive research on the subject brought him to the conclusion that globalization positively impacts underdeveloped countries. This book review will focus on Friedman's research and the evidence that support his conclusions in The World is Flat.

Friedman suggests that the world is flat. In essence, the world has become very connected, which has made the sharing of knowledge, resources, and technology extremely easy and accessible. The lowering of trade barriers and the technological advancements in society has made it possible to do business quickly and efficiently with people all over the world.

Friedman spent a considerable amount of time in India in order to understand the influence that globalization has on the world economy and international markets. He found that India has become a vast pool for the outsourcing of services and technology work from the United States and other developed countries. "Outsourcing is just one dimension of a much more fundamental thing happening today in the world. What happened over the last few years is that there was a massive investment of technology." [1] Friedman argues that there is no question that India is much better off having part of its population in the flat world. The flat world produces greater opportunities for education and training. This in turn leads to improved innovations in technology and a well educated workforce.

Friedman suggests that globalization has evolved through three stages in history. "The first lasted from 1492 when Columbus set sail, opening trade between the Old World and the New World, until around 1800." [2] Friedman labels this timeframe as Globalization 1.0. The second era of globalization encompassed the great depression and World War II. According to Friedman, "This shrank the world from a size medium to a size small. In globalization 2.0, the key agent of change was multinational companies." [3] Globalization 3.0 evolved around the year 2000, which ushered in a new era for the shrinking of the world. Globalization 3.0 flattened the world, thus evenly leveling the playing field across the globe for further advancement for international corporations and entrepreneurs to compete globally.

Friedman findings concluded that ten forces have flattened the world. He argues that these ten forces have come together to produce a level playing field. Western companies have adapted to this new phenomenon quite well, but many people in India, who once found themselves excluded from this playing field, have suddenly been liberated and plugged into the international market.

I believe that two of the ten forces covered in Friedman's book are very important in producing connectivity around the globe. The first force is the collapse of the Berlin Wall in Germany. Communism produced a significant obstacle for the advancement of capitalism in the Soviet held states. The fall of the Berlin Wall ushered in liberation for the people who were trapped by communism. "It tipped the balance of power across the world toward those advocating democratic, free market oriented governance and away from those advocating authoritarian rule." [4] Economies would now be governed by the interests of the people and free market economies would be the focus of countries wanting to expand their production capabilities globally. The second force I believe impacts flattening of the world is Netscape. The Internet produced a link to the global world by the quick exchange of information and ideas through email and online applications. "This in turn set off an explosion in demand for all things digital and sparked the Internet boom. [5] Everything would soon be digitalized.

Friedman also claims that multinational economic institutions such as the IMF, G-8, and the World Bank are going to become less important in the flat world. These institutions will still have relevancy in the global market, but other actors in the future will drive globalization. "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." [6] A large portion of these individuals are from the country of India. The Indian youth have shifted away from the traditional norms of India, and have concentrated on global trade and information which has evolved India into the world's service center. The young people of India have focused their attention on global companies expanding their labor to the country of India. As a result of the flat world, many Indians no longer need to come to America for jobs because they can now compete at the highest levels in India, while getting decently paid.

Friedman has asked many people around the world when they had first discovered that the world was flat. I think this particular example in Mexico City supports his argument that the world is definitely more connected. He asked a group of journalists if they have seen clear evidence of a more connected world. "One of them said he realized that he was living in a new world when he starting seeing reports that some statuettes of Mexico's patron saint were being imported into Mexico from China." [7] Even Mexico is accepting imports from China. As a result, manufacturing businesses are struggling to preserve the authentic statuettes that are made in Mexico. Mexico is also losing its naturally shared advantages with the United States market. This decline in exports into the U.S. is a result of China. "China is such a powerhouse of low cost manufacturing that even though NAFTA accord has given Mexico a leg up with the United States, China replaced Mexico as the number two exporter to the United States." [8] The vastly populated countries like China and India have opened their doors to trade and technological advancements. As a result, these countries have seen increased labor, expanding economies, and favorable trade levels.

The world is not all entirely flat according to Friedman. The end of book deals with the people who are living in the unflat world. These people are living outside the cycle of capitalism and free market economies. "They live in villages or rural areas that only criminals would invest in, regions where violence, civil war, and disease compete with one another to see which can ravage the civilian population most." [9] The entire world will eventually become flat when these people are brought into it. One method of succeeding in this is for big business owners to step up and make a difference in the world. Friedman states that Bill Gates has stepped up to this challenge of making the entire world flat. "The Bill and Melinda Gates foundation has focused on this huge, disease-ravaged, opportunity deprived population." [10] Bill Gates has made a personal commitment through money and energy in order to address the problems of the unflat world. Another major businessman from India has devoted his time and money building schools for children to be educated using modernized applications and philosophies. Friedman suggests that the entire world can become flat through the efforts of businessmen like Bill Gates.

I believe this book is extremely important for policy makers and big business leaders to read. Political figures are the ones who are overseeing the states and making the decisions that produce the results for the citizens. Free market economies are essential for developing and maintaining the flat world. Developing countries must incorporate fair leadership of government that will focus on the interests and well being of the people. Many developing countries have politicians who focus on self gain, resulting in disorganization and the centralization of power and resources. Big business leaders such as Bill Gates can help establish new infrastructures like schools and medical facilities in developing countries. Money and effective leadership are the two key components of flattening the entire world.

It is also important for ordinary citizens and students to be aware of how globalization is changing the world. I think Friedman's book portrays a good explanation of the connectivity that is happening between the United States and India. United States citizens need to be aware of job outsourcing, as well as the economic capabilities of India. As the flat world progresses, many more American companies and jobs will be lost to countries like India. Big companies can save money on cost production and labor in India and still maintain the high knowledge base of employers. This book will give ordinary citizens the insight about globalization and the increased competition of trade and outsourcing that is taking place in the world.

This book review has examined Friedman's perception of how globalization has flattened the world; the positive influence globalization can have on developing countries, and the continued advancement toward a truly flat world. Globalization is very important in today's society because it affects many people. The world is definitely flat as a result of increased technologies. Connectivity among countries is tighter than it has ever been in the history of the world. I believe Friedman is correct in saying that the world is flat. The United States has been the dominant economic power in the world, but a level playing field has developed, and it will be interesting to see how the United States economy will thrive as a result of companies outsourcing its production and labor to other countries.

[1] Thomas Friedman, The World is Flat. (New York: Farrar, Straus and Giroux, 2005), 6.

[2] Friedman, 9.

[3] Friedman, 9.

[4] Friedman, 49.

[5] Friedman, 57.

[6] Friedman, 183.

[7] Friedman, 309.

[8] Friedman, 310.

[9] Friedman, 378.

[10] Friedman, 378.