Reflecting on Thomas Friedman’s The World is Flat

thomasFriedmanATLANTA— I have picked up a new read, Thomas Friedman’s The World is Flat.  It will be my second political-economic read of the year, following Amity Shlae’s fantastic history of the Great Depression, The Forgotten Man.  For a while now, I have thought it would be fun to blog about books I am reading as I read them; to put my meandering reflections on paper, both for discussion and for my own edification, so I remember them later on.  I have finally decided I am going to try that as I make my way through Mr. Friedman’s contemporary classic.

First published four short years ago in 2005, The World is Flat became an almost overnight political/economic classic.  The book primarily revolves around the “flattening” of the global economy via the proliferation of web-based technology and the opening up of formerly closed economies, in places such as China and India.  Mr. Friedman deliberately chose the term “flat” to describe the world as a direct counter to Christopher Columbus emphatically declaring the world ”round” 500 years before.  

By using this metaphor, Mr. Friedman is saying we are at a seminal moment, akin to Mr. Columbus’ voyage, where events have transpired which have forever changed the course of human history. He states that the world has been “flattened,” in that new technology and the capitalist push for cost efficiency have brought us to a place where, for example, Indians can compete directly with Americans for a broad array of jobs, despite living under different political regimes on separate continents, thousands of miles apart. Mr. Friedman’s purpose in the book is to construct a framework in which to understand the nature and implications of this flattening.  

My description is hurried and does little justice to what so far is a very interesting read (if you like this sort of thing).

My Initial Reflections

Having gotten now 70 pages into this 635 page treatise, I have a few off-hand reflections.  The first is my surprise at Mr. Friedman himself.  My only previous encounters with Mr. Friedman have been through his columns in the New York Times.  I have found him to be a frustrating columnist, because I have never fully been able to pin down where he is coming from.  At times, he sounds perfectly reasonable.  At other times, however, he demonstrates a very high view of the state, and gives me the impression he secretly yearns for a top-down, authoritarian management of the US economy. 

To this point in my reading of the The World is Flat, however, I am finding nothing objectionable.  The theme of the book so far is the international empowerment of the individual through technology. There have already been a dozen or more stories about people in India and China, unleashed from oppressive regulation, creating new companies and spawning unprecedented economic grow.   For a conservative like myself, I take great encouragement from this as yet another proof that free markets work.  And I am surprised to find Mr. Friedman writing about it with such effusive praise, given my previous suspicions that he might be a protectionist, anti-market guy.  I am now curious where he will go with this.

My second reflection is just an amazement at how rapidly the world has and is changing.  Mr. Friedman is doing a great job in the early going setting up the 10 events which have flattened the world in our lifetimes and they begin with the fall of the Berlin Wall in 1989.   1989 is only 20 short years ago! 

Barack Obama may not think the fall of the Berlin Wall is worthy of on-site presidential recognition (at least when compared with the possibility of winning the 2016 Olympics for Chicago or getting an award for doing nothing).  But Mr. Friedman explains just how far-reaching the implications of the wall’s fall were.  Not only did it liberate Eastern Europe and ultimately signal the collapse of the Soviet Union.  But it was a symbol to other, statist economies that communism and central planning could not prevail over and against capitalism.  

The wall’s fall had a profound impact on India in particular, which for decades had suffered under the brutal weight of Fabian socialist economic restraints.  Once India saw the fall of the Berlin Wall and made the judgment that America’s economic system worked better, they began to dismantle many of their regulations over private industry and the old 1-3% economic growth suddenly became 7-9% annual economic growth.

My initial perception from this book is that while many in the fringe American left may decry capitalism, the East seems to be embracing it with whole-hearted zeal.  It is no wonder many pundits believe the pendulum of economic power will swing back to its historic residence in the East during this century, after residing almost exclusively in the West for last several centuries.

I am certain my early reflections about Mr. Friedman, this book, and globalization will change and evolve as I continue to make my way through this narrative.  But I am enjoying it thus far and look forward to sharing more in the days and weeks ahead (when I find time to actually read it!).

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About Stephen VanNuys
Stephen Van Nuys is a happily married CPA who works for a large accounting firm and resides in Atlanta, Georgia. He is a Christian and an avid follower of politics and current events. He is also a big-time baseball fan. Stephen and his wife are runners, having completed multiple 10k’s and half-marathons between them. They place importance on being environmentally conscious and actively serving others through their church and other outlets. Mr. Van Nuys’ political leanings are socially conservative and economically libertarian. He may express his perspectives on current events strongly, but he welcomes disagreement, particularly where others believe his missives to be ill-informed or just plain wrong! He enjoys good debate and discussion and is writing here as much to express his perspectives as he is to learn about others.

3 Responses to Reflecting on Thomas Friedman’s The World is Flat

  1. The global economic shifts that are occurring are not especially new, as I hope Freidman notes. As you say, the economic engine of the world was a long time east and Europe was an economic backwater. In some ways things are simply returning to equilibrium. What is new is that the US grew up in an era when the “West” was ascendant and technological innovation was centered here. This has not always been true historically so it is dissonant for us to experience a world when we are not at the forefront. Indeed it is striking to go to rural Africa and find people living in mud brick houses with better mobile phones and networks than we have here! The thing about technological innovation is that the developers pay a steep price but late comers can simply adopt the tech without the upfront costs and improve upon it. Hence fewer dropped calls and better call clarity in nowhere Africa than in some parts of Atlanta!

  2. >In some ways things are simply returning to equilibrium.

    Yeah, while he doesn’t seem linger on that at this point in the book, he at least makes that known- that the East used to be dominant economically.

    >late comers can simply adopt the tech without the upfront costs and improve upon it.

    Yep – that’s a great point. Actually, that’s one of the points Friedman notes in his book. The Chinese, Indians, etc. are just piggy-backing off of the United States. They believe we are still leading the way. They see their role currently as just adapting whatever we innovate and creating it cheaper, given they can draw on such a large pool of cheap labor. From interviews Friedman references in the book, Indians and Chinese hope to learn enough from us to overtake us in terms of innovation in the future (as you might imagine they would like to).

    This is all an interesting, exciting (and in many ways, forboding) thing to think about- this idea that economic power is swinging east, away from us. I still think it will take several decades before that process is complete. Chinese and Indians, on average, are still dirt poor relative to the United States. They have a very steep hill to climb. And I believe, for the Chinese especially, they have much political and economic turmoil ahead of them. We still have the advantage of being a developed, politically stable country where even the poor among us live decently well relative to other countries.

    I guess in the end, I am not afraid of the ascendancy of China and India. I don’t think there is anything necessarily bad in having your neighbor live well off. My real hope is that this all leads to greater economic, political and religious freedom in those countries.

    It’s just getting adjusted to this view that we will have competitors on equal footing with us again- which we have enjoyed not having for the past 20 – 30 years.

  3. The bankruptcy of Global Crossing gives the east a huge access to that fiber optic line laying across the ocean. While we had to take that hit on our financials as a write-off they get cheap bandwidth.

    As Stephen points out the concern is political and religious freedoms in those countries. If China comes up as an economic powerhouse without having to change it’s treatment of diverging political and religious views we are in trouble and this is what is happening.

    The Chinese are not to kind to the Dalai Lama (i.e. Buddhism), Christians, Jews, Muslims, and the Falun Gong. Their persecution of these religious groups is quite strong and severe. Their persecution has not changed much either. I’m not ok with a country requiring one to register their religion and for one’s church to be required to register with the state. That was Hitler’s first step with the Jews. First they were required to register (no big deal), then they were required to wear a star, and then…. We know where that path led to. I’m not saying China is genocidal but they are not religiously tolerant (to understate the case).

    I liked the World is Flat from just a pure informational view. I’ve also wanted to read The Lexus and the Olive Branch.

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