“Globalization is the word we came up with to describe the changing relationships between governments and big businesses,” said David Rothkopf, a former senior Department of Commerce official in the Clinton administration and now a private strategic consultant. “But what is going on today is a much broader, much more profound phenomenon.” It is not simply about how governments, business, and people communicate, not just about how organizations interact, but is about the emergence of completely new social, political, and business models. “It is about things that impact some of the deepest, most ingrained aspects of society right down to the nature of the social contract,” added Rothkopf. “What happens if the political entity in which you are located no longer corresponds to a job that takes place in cyberspace, or no longer really encompasses workers collaborating with other workers in different corners of the globe, or no longer really captures products produced in multiple places simultaneously? Who regulates the work? Who taxes it? Who should benefit from those taxes?”
If I am right about the flattening of the world, it will be remembered as one of those fundamental changes-like the rise of the nation-state or the Industrial Revolution-each of which, in its day, noted Rothkopf, produced changes in the role of individuals, the role and form of governments, the way we innovated, the way we conducted business, the role of women, the way we fought wars, the way we educated ourselves, the way religion responded, the way art was expressed, the way science and research were conducted, not to mention the political labels we assigned to ourselves and to our opponents. “There are certain pivot points or watersheds in history that are greater than others because the changes they produced were so sweeping, multifaceted, and hard to predict at the time,” Rothkopf said.
If the prospect of this flattening-and all of the pressures, dislocations, and opportunities accompanying it-causes you unease about the future, you are neither alone nor wrong. Whenever civilization has gone through one of these disruptive, dislocating technological revolutions– like Gutenberg's introduction of the printing press-the whole world has changed in profound ways. But there is something about the flattening of the world that is going to be qualitatively different from other such profound changes: the speed and breadth with which it is taking hold. The introduction of printing happened over a period of decades and for a long time affected only a relatively small part of the planet. Same with the Industrial Revolution. This flattening process is happening at warp speed and directly or indirectly touching a lot more people on the planet at once. The faster and broader this transition to a new era, the more likely is the potential for disruption, as opposed to an orderly transfer of power from the old winners to the new winners.
To put it another way, the experiences of the high-tech companies in the last few decades who failed to navigate the rapid changes brought about in their marketplace by these types of forces may be a warning to all the businesses, institutions, and nation-states that are now facing these inevitable, even predictable, changes but lack the leadership, flexibility, and imagination to adapt-not because they are not smart or aware, but because the speed of change is simply overwhelming them.
And that is why the great challenge for our time will be to absorb these changes in ways that do not overwhelm people but also do not leave them behind. None of this will be easy. But this is our task. It is inevitable and unavoidable. It is the ambition of this book to offer a framework for how to think about it and manage it to our maximum benefit.
I have shared with you in this chapter how I personally discovered that the world is flat. The next chapter details how it got that way.
TWO: The Ten Forces That Flattened the World
The Bible tells us that God created the world in six days and on the seventh day he rested. Flattening the world took a little longer. The world has been flattened by the convergence often major political events, innovations, and companies. None of us has rested since, or maybe ever will again. This chapter is about the forces that flattened the world and the multiple new forms and tools for collaboration that this flattening has created.