The World Is Flat

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There have been three eras of globalization according to the author. The world first began globalizing from 1400 to 1800 when it shrunk from "Size Large" to "Size Medium" starting with Columbus' discovery. From 1800 to 2000, globalization further increased trade, jobs, and economic growth. The third era began in 2000 when the world "flattened" as people from all countries began globalizing themselves through increased connectivity and outsourcing.

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New York Times April 30, 2005 Global Playing Field: More Level, but It Still Has Bumps By JOSEPH E. STIGLITZ A BOOK REVIEW OF: THE WORLD IS FLAT: A Brief History of the 21st Century By Thomas L. Friedman. The world is flat, or at least becoming flatter very quickly, Thomas L. Friedman says in his exciting and very readable account of globalization. In this flat new world, there is a level (or at least more level) playing field in which countries like India and China, long marginalized in the global economy, are able to compete. And while Mr. Friedman, a Pulitzer Prize-winning columnist for The New York Times, celebrates the new vistas opening up for these countries, he describes forcefully the challenges globalization presents for the older industrialized nations - especially the United States. America is still the global leader in science and technology, but its dominance is eroding. As Mr. Friedman points out in "The World Is Flat," Asian countries now produce eight times as many bachelor's degrees in engineering as the United States; the proportion of foreign-born Ph.D.'s in the American science and engineering labor force has risen to 38 percent; and federal financing for research in physical and mathematical sciences and engineering as a share of gross domestic product declined by 37 percent from 1970 to 2004. About a third of "The World Is Flat" is devoted to describing the forces of leveling - from the fall of the Berlin Wall, which eliminated the ideological divide separating much of the world, to the rise of the Internet and technological changes that have led to new models of production and collaboration, including outsourcing and offshore manufacturing. The rest of the book is devoted to exploring the implications of this flattening, both for the advanced industrial countries and the developing world. In truth, Mr. Friedman's major points would come across more strongly if his 488 pages were edited more tightly. But he provides a compelling case that something big is going on. I was in Bangalore, India, in January 2004 - just a month before Mr. Friedman - visiting Infosys, one of India's new leading high-technology companies. I, too, was bowled over by what I saw: "campuses" more modern than anything I had seen on the West Coast, and business leaders as dynamic and thoughtful as anywhere in the world. It may be true that fears of outsourcing have been exaggerated: there are only a limited number of radiologists, software programmers and back-office people whose jobs can be performed at a distance. But I side with Mr. Friedman: the integration of some three billion people into the global economy is a big deal. Even if only a limited number of American jobs are lost, the new competition will have striking effects, particularly on the wages of unskilled workers. While free trade may ultimately make every country better off, not every individual will be better off. There are winners and there are losers; and while, in princip.

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