Flat by Thomas Friedman Thomas

¶ … Flat by Thomas Friedman

Thomas Friedman has been considered as one of the foremost authority in the discourse of globalization as seen in his work "The World is Flat." Globalization refers to the emerging linkages between international market and political systems, in which policy decisions undertaken in one state and society have specific global repercussions. These linkages have led Friedman to believe that the world has gone flat, that the world has been evolving in one global community, as cultural and ideological barriers have been eroding through time.

The world is flat; in my view is a situation wherein the world is rearing towards a homogenous lot. A transformation anchored on the onward march of technological innovation in practically every segment of socio-economic and political life.

Friedman discusses the concept of the triple convergence. Friedman argued, "It is not about ruling, there is no one who would rule, it is about how you can create a great opportunity for yourself and hold on to that or keep creating new opportunities where you can thrive." Friedman disclosed, "That the triple convergence reshape political identities, recast political parties and redefine who is a political actor, the great outsourcing out. It refers to how communities and companies define themselves, where companies and communities stop and start, how individuals balance their different identities as consumers, employees, shareholders and citizen and what role government has to play" Convergence paves the way for the creation of an increasingly horizontal (connect and collaborate) model. Friedman expressed his views on globalization, in relation to free trade. Goods are not the only things tradable but more importantly services and this has led to more specialized jobs in the service sector.

China and India have been prime movers in the globe; this premise was evident in the number of points raised by the author regarding the two countries' seemingly influential function in making the world flat. India has been at the forefront if it, as its knowledge workers have been tapped for the preparation of firms around the world against the Y2K bug and the country is perceived as the hub of call centers and outsourced services. As China decided to implement more liberal programs in its domestic economy it became an economic power to contend with in the international scene. With its massive domestic market, cheap and skilled manpower and disciplined workforce, China has indeed become an awakened giant. Chinese goods and services have flooded the global market and have over recently posed a threat to U.S. And Japan. In the past, China's economy was forecasted to be on the verge of overheating, but as they expand their market beyond their borders of their region and under the able stewardship of their planners, China's economy continuous its onward march. One threat I see would be externalities leading to an eventual market failure. As China consumes more of the world's oil resources it also becomes its worst pollutant, with its factories churning out toxic substances to the environment. Its government should be vigilant on this concern. While I share Friedman's emphasis on these two countries, other emerging centers of growth are still emerging in other areas of the globe. The Asian tigers that include Taiwan, Korea and Vietnam are good examples.

I believe that the three most important flatteners are outsourcing, off shoring and supply sharing. Outsourcing in my view is a clear manifestation of developing countries catching up with the industrialized west. It is a for of validation of the fact that industrialized countries could tap the manpower of the third world, considered as relatively at par and in some instances more technically sound compared to their western counterparts. Outsourcing has shown that the quality of work does not diminish even if someone who lives at the side of the world does the work. This situation is largely dependent on the amount and quality of investment in enriching human capital in the developing world, i.e. through a more relevant curriculum, which matches the needs of the labor market.

Off shoring, on the hand, works differently. Friedman noted that off shoring involves the transfer of one factory to another place that produces the same product, in the very same way, only with cheap labor, lower taxes, subsidized energy and lower health cost. Competition among offshore sites now persists as manufacturing centers are now transferred to the developing countries. In my view, to some extent off shoring has led to a degree of exploitation especially to its low skilled labor sector. Paying its workers on subsistence, multinational companies could opt to transfer its base to another country if it sees it has cheaper labor. Leaving the other country, its low skilled labor force is forced to fend for itself. Off shoring is not about the quality of the workforce; it all boils down on how low the price of labor is. While off shoring may be an attractive approach on the short-term, its long-term effects should be considered, that of its implications to the environment in particular.

Supply sharing is a method of collaborating horizontally among suppliers, retailers and customers to create value. Friedman mentioned the coefficient of flatness -- the fewer natural resources one's company/country, the more you will dig inside yourself for innovations in order to survive. This particular concept brings into mind Rostow's - age of high mass consumption - the rise of consumerism which leveled the globe and is attributed largely to the increasing influence of capitalism. This however, is constrained by the purchasing power of people from developing countries. Consumerism has transformed the cultural mindset in that their needs are now conditioned by the product and service line as prescribed by the west.