“The World is Flat” is a book from Thomas L Friedman. He presented the main theories of the book in a class at MIT and I listened to that podcast through I-Tunes University. Here is a resume and thoughts about the topic which I hope will raise your interest in debating over it.
What flattened the world
- 11/9 collapse of the Berlin wall which made the world seen as a single flat place
- Netscape democratized Internet by making it alive and not a scientist bunker
- Fiber optic network made places of the world interconnected and data flow easily
- Work flow which help to collaborate (people to people and application to application)
- Outsourcing, new form of collaboration
- Offshoring, outsourcing abroad
- Opensourcing, new form of collaboration and innovation
- SupplyChaining (ex WallMart), designing a world supply chain interconnected
- Informing, it means I can inform myself by myself (ex today Wiki and Google)
- Steroids: Wireless, voice over the internet and file sharing, which allows you to do any work from anywhere by anyone on earth.
The triple convergence in 2000′s:
- All those flattener converged
- We all learnt to horizontalized ourself (value = how you connect and collaborate)
- India, China and Russia opened their economies and came on the game with 300 million new connected players (10 percent of 3 billion)
The 4 unflattener:
- The too sick who aren’t able to get involved in world economy because worrying about disease
- The too unable who are too poor to get into the world economy and suffer from bad governance (ex. from local politicians in India)
- The too frustrated because who can’t accept and want to fight the system
- Too many Toyotas, when everybody consumes and resources are scarce which can spur conflicts on resources around the world
Then, one question is how companies will be able to adapt themselves to a different world. (ex: HP adaptation in India by giving cameras/printers solar powered to local women NGOs against fees on paper and camera renting)
Another point is how far can the developed countries compete with developing countries providing cheaper human resources. First, people perceive a factory closed down in a remote area but won’t notice new employees in Google office in big cities. Second, after WWII, the USA help Europe and Japan to rebuild their economy because they see them as trading partner and rely on the theory of competitive advantage where each country produces what it is best at. Then, we can expect (and it’s already proven in some extent) that growth in the developing world is contributing to growth in Western countries.
Finally, from my point of view, it is better to support this growth based on the developing countries growth with the risk of them competing our businesses than accepting the stagnation of the economy. Once again, it is necessary to take into consideration the fact that their growth is contributing to changes in our economies which seems very useful to keep a growth in productivity and to maintain inflation at an acceptable rate. On the other hand, there is still the big question of how the planet will support our population and its thirst for material “stuff” and any kind of basic resources (clean water, clean air, energy, ground space). That is the topic of a future post.
Thomas Friedman emphasize in the conclusion that the USA is famous for: unbreakable optimism for the future and the idea that every problem has a solution. And since 9/11, the US government is spreading fear around the world but it should spread hope. I agree.
More info: http://en.wikipedia.org/wiki/The_World_is_Flat where they actually present the 8th flattener as Insourcing.
Buy book http://www.amazon.com/World-Flat-History-Twenty-first-Century/dp/0374292884