Be Aware that the world is flattening

Thomas Friedman's The World is Flat is a timely book, worth a read. It is about the creation of a level playing field for millions of people across the world, a process Friedman terms 'Flattening' and attributes it to a conversation with Nandan Nilekani, former Infosys CEO. The flattening occurring is political, economic and social. The canvas is vast and Friedman discusses the forces responsible for the flattening, its implication for America, the world at large and the dangers lurking around if the process does not go to its logical conclusion.

No prizes for guessing the most important flatteners: the fall of the Berlin Wall and the PC and Internet revolutions. The end of the Cold War brought an end to trade barriers and brought the Asian giants China and India onto the world stage, changing the market dynamics. The technology revolution is empowering more and more people with information and the ability to innovate and be productive like never before.

Friedman illustrates the processes of offshoring, outsourcing, in-sourcing, supply-chains at work, which are using these technology tools and the more liberal economic climate boost innovation and productivity. In each of these, the Web and the PC have enabled people to communicate and innovate. Wal-Mart's supply chain, Dell's manufacturing chains and UPS's delivery service are well illustrated.

Friedman is unabashedly a supporter of the free markets. The flat world will mean more competition and tough decisions to take. No more protectionism. It is not the government's job to protect trade interests from competition, not the job of the company to ensure your employment. Instead, the government must do all it takes to promote healthier competition, the companies must ensure that their employees are employable. Every organization, every individual must carve out a niche for herself to survive in the competition.

And what threatens the flattening process? While macro-economic reform has opened the markets, the benefits have still not reached a vast populace due to corruption, lack of transparency and democracy. That may build up resentment which explodes into acts of violence like the terrorist movements, rebel insurgencies, etc.

This is just a brief summary of the book. You may find Friedman too loud, but that's the price for reading a serious topic in layman's words. And I haven't kept a count of the number of times Friedman uses the word 'flat' !!!