The World is Flat: Chapter 1

Friedman lays out his thesis that a surplus of global network bandwidth, mature networks, highly educated second and third world labor pools, and cheap software/hardware combine to fuel a new period in our geopolitical and economic evolution that he terms Globalization 3.0.

• Globalization 1.0: 1492-1800 - countries and muscle interacting to create and grow economic and personal advancement
  
• Globalization 2.0 1801-2000 - multinational companies take over from nation-states
• Globablization 3.0 2000-present - Individuals can collaborate and compete globally (Friedman admits that corporations that are nimble and can manage the change required are competing well in this environment as well)
  

The challenge for G3.0 practitioners is to find increasingly creative ways to slice off pieces of a given business process and find a way to outsource it at reduced cost. Friedman opines that, "even with the outsourcing of some service jobs from their United States to India, India's growing economy is creating a demand for many more American goos and services. What goes around, comes around."

Using the example of New London Conn, Friedman illustrates how a homogenic local economy (shipbuilding) was destroyed by changing geopolitical circumstances and rebuilt over time to thrive off an entirely different sector of the economy, pharmeceutical research and gambling casinos. The change was not pleasant and took much time and effort. Those who could not or would not adapt were left behind. I agree with the Glocer quote that we must forsee the change, be honest with those who will feel its effects, and attempt to retrain where possible and provide adequate safety nets for others. GM and Ford have been doing this over the last 10 years by offering impressive buyout packages to RIF-ed employees and offering retraining programs.

I like the notion of an outsourced, remote, executive assistant that produces your briefs and presentations overnight for you!

I think JetBlue's CEO is blowing smoke when he say's he'll "never outsource to India. The quality we can get here is far superior".

InDC blogger Bill Ardolino suggests that blogs serve as a "5th estate". Hmmm...maybe a 4 1/5 Estate. Blogs aren't that distinguishable from the mainstream press in my book.

David Rothkopf opines that G3.0 will be marked as a change as fundamental as the industrial revolution or the rise of the nation-state and suggests that these changes are greater than others because the change they engender is so sweeping, multifaceted, and hard to predict.

The Japan-outsources-to-China example demonstrates the linguistic component that is critical to getting G3.0 to work for you. Customer service is critical and being able to communicate effectively is key. The PIP survey question about the potential preeminence of English in the future is interesting in this context. As long as the Japanese and Chinese don't require English to do business then there's no need for the outsourced Chinese workers to learn English. Unless, of course, they've read Friedman's book and agree that in order to have longevity in the G3.0 environment, you'd best be quick on your feet learning new skills and staying well enough ahead of the rate of global change to be prepared and positioned for new opportunities

Friedman hints that politics and/or terrorism can get in the way of the kind of G3.0 acceleration that he describes. I would add bad management to that list. Without attention to the detail of managing the rapid and potentially difficult change brought on by G3.0 activity you run a great risk of failure in these efforts. Without understanding that the old conglomerate-centric (or, as Toffler might argue, mass-production-oriented) models aren't efficient in the face of a "flatter" world.