Book Review: The World is Flat

“The World is Flat” deals with the concept of globalization and the events and factors that have helped to bring about this change in our world. The book particularly emphasizes how this new global economy is having an impact on the world of business, that is, by allowing a more level playing field for all. It is not at all difficult to imagine a truly flat world where all technologies are available wirelessly and business can be performed instantaneously across the world. While the notion of globalization is by no means a new topic of discussion, Friedman gives a detailed account of what its causes are and the effects he feels it will have, both of which are backed up by extensive research and his broad base of knowledge.

There are three major periods to which Friedman attributes the movement towards globalization. The first of these extends from Columbus’ voyages to around the 1800’s, where the world saw increased trade among countries coupled with military expansion. The next period stretches from here to the year 2000, when multinational companies prevailed as the force behind globalization. Lastly is the present era of change, where individuals and not companies are spurring the move forward towards a “flat world”.

By means of elaborating on how we reached this current stage, Friedman imparts to us his “10 Flatteners”, the first step in the flattening process. These are so broad as to include the falling of the Berlin Wall, the IPO for Netscape, off-shoring and the ‘steroids’, (new technologies). At initial glance, one might wonder how these can all be connected to represent the movement towards a world where geographical location becomes irrelevant. However, Friedman discusses them each in turn, giving credence to why it was chosen as a flattener, while also providing us with examples of these forces in effect. Due to this flattening of the world, changes occur within businesses and to individuals as they adapt to this world which the “10 flatteners” has created. The ability for new entrants, new countries, to enter the global scene as a consequence of globalization, is pointed at being both an advantage and a disadvantage depending on the country’s intention.

In some senses Friedman is writing this book as a warning of sorts that America should not rest on its laurels. In what he refers to as the “Quiet Crisis”, Friedman discusses how the US is falling behind in the fields of maths and science, with proportionately fewer graduates receiving degrees in these areas than in countries such as India and China. Not only does China graduate twice as many graduates as the US, but has six times as many majoring in engineering degrees. This is an issue that requires immediate attention if there is any truth in Friedman’s assertions that it will be technology and science that will prevail in this future flattened world. Without a driving force behind innovation, developing countries are increasingly amassing the skills and knowledge to match and exceed those of developed countries. The problem of a declining base in science and engineering is not limited to America, however. Just recently the Irish government announced plans for a proposal aimed at increasing the number of college entrants in these same areas.

Another concern addressed in this book is in regard to outsourcing, yet this is not given the same urgency as the “Quiet Crisis”. From manufacturing to the service sector, jobs are increasingly being outsourced to foreign countries. Increasingly services ranging from accounting to computer programming are being outsourced to English speaking countries. This growth can be seen particularly in the business of tax return preparation, where in 2005 400,000 returns were outsourced to India. Friedman argues however, and I have to agree, that it is pointless to try and halt this trend, to “build walls”. In a flatter world jobs will inevitably be more mobile but this just means that businesses need to become more specialized in order to survive.

One major weakness of the book, in my opinion, is the lack of focus on other developed countries, especially European counties, and how these can have an impact on globalization. The main focus is on America and those countries with which it interacts, but a lot can be said for the European Union. With its further expansion and opening of its doors to many eastern European countries, its enlargement will have a telling effect on the flattening of our world.

This book is sure to attract a broad range of readership considering the scope which it covers. Whether economists, businesspeople, students or entrepreneurs, each can benefit from some aspect of what “The World is Flat” covers. Throughout the book, Friedman definitely gives you food for thought on all topics he discusses. He gives an overall balanced viewpoint on matters exploring both sides of each issue. Aside from the fact that it can be repetitive in the examples it uses, and at times rambling, “The World is Flat”, provides an insightful view on our world today and where it is headed.