Technological Advancement and Internet Revolutions in Globalization - Thesis Example

History and Political Science, Thesis Topic: Analytical Essay: The World is Flat. Introduction The topic of globalization has been discussed often in a number of symposiums for more than a decade. Opinions are sharply divided, whether it helps the development countries to grow or it checks the progress. With his well-argued research findings Friedman has concluded that globalization has impacted the under-developed countries to improve their economic lot. He contends that the world is flat, meaning, the world is well-connected, the countries share the knowledge, technology and resources extensively and this process is easy. The data relating to one country is easily accessible to another country and it can learn much to charter its own course of development. One point needs to be noted incidentally. All the arguments on any subject are based on the present level of research. To articulate that any one theory is correct is to put a stop on further research. Every new development on the global scale has some positive and negative aspects. So is the case with globalization; it has advantages and disadvantages. The prime concern of humankind should be how to convert such disadvantages into advantages. Whether one takes specific notice or not, globalization has been in progress since centuries. Industrialization, technological advancement and internet revolution have accelerated its pace and the world now is in a state of transition. The existing economic and political systems face the acid test to retain their structure, and the important question is whether they should retain them at all, if a better alternative in the form of globalization can be found. Globalization has challenged the ideology of Socialism, Capitalism, Communism and Theocracy. The governments are driven to liberalize trade relations and liberalize economic policies. Among others, the abolition of restrictions on trade and internet and technological revolutions has enabled the businessmen to interact on a fast track and with efficiency. This is a boon to the business establishments in all the countries. The author has done his research in India to study the conditions and to know the impact of globalization. He is much impressed with the giant leap of India in relation to availing the benefits of globalization. He argues, "Outsourcing is just one dimension of a much more fundamental thing happening today in the world. The happenings over the last few years are that there was a massive investment of technology." (9) Friedman further argues, it does not go to the advantage of India to have only a section of the labor force in this segment. It needs to make tangible progress in the areas of education and advancement of technology. That leads to educated and well-informed workforce and contributes to the growth in the true sense of the term. Talking in to consideration the prevailing social and economic conditions in India, this conclusion by Friedman is sustainable and he is on the right side of the fence. In his findings, Friedman lists 10 forces that have converted the world flat and to provide the level playing field to all the countries, though the underdeveloped countries are slow to enter the field. The 10 flatteners are Collapse of Berlin Wall, Netscape, Work Flow Software, Uploading, Outsourcing, Offshoring, Supply-Chaining, Insourcing, In-forming and the Steroids. Of the ten forces, two have created world-connectivity. In identifying these forces Friedman, has not only exhibited his genius in understanding the working of economic forces, but has good grasp of the historical events that impact the economy to render the world flat. Collapse of the Berlin Wall is the first important force. In the Soviet-occupied Germany, Communism is the hurdle for the creation of economy based on capitalism. The unification of Germany signals the death-knell for communism and people are liberated from the clutches of that philosophy. Friedman argues, "It tipped the balance of power across the world toward those advocating democratic, free market oriented governance and away from those advocating authoritarian rule." (49) Free market economics changes the business structure and it is possible for the business organizations to design new business activities taking into consideration the global perspective. He identifies the second important force that does the flattening job on a vigorous footing is Netscape. Internet proves to be an extraordinary knowledge-bank, and fast exchange of business-related information is possible through online data submissions and through e-mails. Friedman writes, “This in turn set off an explosion in demand for all things digital and sparked the Internet boom.” (57) Digitalization creates unprecedented business scenes from all ends. Friedman presents another extraordinary, mind-boggling observation, and I think that it is the correct one. Not long ago, the financial institutions and controlling authorities have been dominating the economic scene by laying down the policies, formulated through economic and political considerations. The scenario has changed. World economic institutions like G-8, IMF etc., though have the roles to play, the business magnates and genius entrepreneurs have taken over the reins of economic prosperity. Friedman argues, "Globalization is going to be increasingly driven by the individuals who understand the flat world, adapt themselves quickly to its processes and technologies, and start to march forward." (183) Joseph E. Stiglitz supports this viewpoint and writes, “ But there are a multitude of changes to be made—in policies, in economic institutions, in the rules of the game, and in mindsets—that hold out the promise of helping make globalization work better, especially for the developing countries.(2007, p. xi) Friedman singles out India that has taken the lead in this area. The youth of India have converted the country into world service center. In view of the opportunities now available in India, on account of the flat world, the enterprising Indian youth are no more interested in going to America to improve their career prospectus, as high-salaried job openings are available to them in their own country. Joseph E. Stiglitz supports this view and writes, “ Some changes will occur inevitably—China’s entry into the global scene as a dominant manufacturing economy and India’s success in outsourcing, for instance, are already forcing changes in policies and thinking.”(2007, p. xi) There is expectation everywhere, as to what will happen next. The “Flat” process is yet to take shape in many segments. As articulated by the author, a big chunk of the population lives in the areas un-impacted by globalization. The influence of globalization has not grazed past them yet. Friedman argues, "They live in villages or rural areas that only criminals would invest in, regions where violence, civil war, and disease compete with one another to see which can ravage the civilian population most." (378) In India, this population is in the rural sector, and though they produce agricultural produces, fruits and vegetables on a mass scale, they have no access to good marketing facilities, and their labor and investment on this count turns out to be less remunerative. This aspect has seized the attention of the Bill and Melinda Gates Foundation. The individual entrepreneurs and men of vision have shown remarkable results, where the Governments fails to deliver goods, due to inefficient government machinery and corrupt practices. A top industrialist in India has started the activity of establishing schools for the benefit of underprivileged children and he has provided them with modern applications and educational facilities. The observations from Friedman that such business have the talent and ability to render great service to the whole world, is absolutely correct. “Flat” to Friedman means the unhindered opportunities to conduct business activities. He argues that a number of new trends have taken shape in the last decade, and such trends allow freedom to act as per one’s situational demands. Small units can engage in the same activities as that of the big companies. An individual can perform better as compared to the big ones, taking assistance from them. The politicians, economists, the sociologists and the common citizens have roles to play in his calling. But Friedman brings the sense of urgency and desperation is his observations, and makes the common citizen, outside the purview of “Flat,” restless. To me it appears that the situation is not grim, and it is one of the technology related aspects of business. Any new technological innovation, results in new adaptations in societal terms. The ten flatteners that he articulates as the changing agents of the world appear in the book as he has listed them and he discusses them. The creation of Israel or division of Pakistan and the formation of Bangla Desh is as important as the collapse of the Berlin Wall. Meaning, the ten listed flatteners are not in the order of merit, or for that matter, in any particular order including that of importance. The significance of some of them cannot be weighed in the context of globalization. His listing of Open Source, relates more to the information movement related issue and it has nothing to do with the ideological disagreements between communism and capitalism. But he identifies and provides a new perspective about the flattening trends like demise of communism (especially in the post Gorbachev era) and China and India entering in outsourcing production and labor, that have directly impacted the economy and the job market in America. Expression of the arguments strongly often does not strengthen the merits of the argument. In another specified area, Friedman’s submissions are on a weak footing. He candidly admits that he has no knowledge about of the some of the flattening agents, prior to the preparatory stages of writing the book. He writes, “Until I visited India in early 2004, I too was largely ignorant of it, although I was picking up a few hints that something was brewing.”(199) Much difference exists between a journalist style of writing an article on the subject of economics and an economist doing that exercise. With his own admission he has ventured in to the exercise of “The World is Flat,” with incomplete knowledge about the mechanisms of international trade. His arguments, therefore, become shallow, as he is unable to reach out to the depths of the issues and trends that he is discussing. Such a list would have been possible some decades before Friedman’s attempt. Some of the important issues have never been touched by him, like the complaints of antiglobalizaton.com. Martin Wolf lists some of the specific charges against market driven globalization: “It destroys the ability of states to regulate their national economies, raise taxes and spend money on public goods and social welfare…It has caused—and is causing—mass destitution and increased inequality within and between nations…It is destroying the livelihood of peasant farmers…It enshrines greed as the motive-force of human behavior.”(8) Joseph E. Stiglitz supports this argument and writes, “But to many in the developing world, globalization has not brought the promised economic benefits. A growing divide between the haves and the have-nots has left increasing numbers in the Third World in dire poverty, living on less than a dollar a day.”(2003, p.5)Thus, for every argument there is a counter argument. The merits of the book: This book provides good study material for the politicians, policy framers and captains of business. The strongest asset of the Flat World is the free market economy. What is needed in the developing countries is an efficient leadership with a vision. Politicians with self-promoting agendas, render disservice to the country. Money is important for development of a country, but proper utilization of money is more important. Good projects with noble individuals to head them are the need of the hour and Friedman names Bill Gates again for this task. With the example of India in relation to America, Friedman has proved a number of points. The people need to remain constantly vigilant about the trends in globalization and how they impact the world. He has indicated how the connectivity between the two countries has set the citizens thinking. Job outsourcing and the intrinsic strength of economy of India have ringed the alarm bells in the employment market and the business circles in America. The progress of the Flat World could mean more loss to America…..It may not either! Globalization and increased completion will continue to send the shockwaves in the developed countries. I have a piece of advice for Friedman. If you are fascinated about the words like ‘globalization,’ ‘flat,’ etc., remain true to their authentic connotation. A true writer is supposed to see, what the sun cannot see and his horizon of understanding is should be vast. Friedman knows his worth as a good reporter and has the ability to mesmerize the readers with his word-play. But good language is not always the asset for a researcher. A researcher, transcending all the limitations has to stand by the facts, and should not act like an attorney, just pleading for one aspect of the case and go by a defined line of argument with the sole objective to win the case for his client. In the present case, Friedman does not seem to plead for the welfare of the global community, but is concerned about his country, America. He argues well and states that America is not turning out high-quality scientists and engineers, and is not serious about securing their number one place in the world. He is also worried about the education issues haunting the country and expresses concern about the combustible younger generation that is going to be the future of America in the next twenty or thirty years. What does it matter for Friedman, if some other country steals the march over America, and how does it tarnish the glow of globalization? Not only the American kid, but kid of any country needs to stay ahead, and the one, who deserves, not the one who desires, should be the best candidate to derive the benefits of globalization. But I do not dispute his natural love to keep America in number one position and his suggestions for the American politicians and businessmen as for the measures to be adopted. Conclusion Friedman writes well and his findings are worthy of attention. Unquestionably, globalization has rendered the world Flat. Its positive impact will continue and it will leave favorable impact on many people. Technological advancement and internet revolutions are the foundation stones of globalization. New milestones have been achieved in the connectivity of the countries of the world, and it has never been so in world history. But the big question before America is, will it continue to retain the position of number one in the world viewed from all ends? What will be the impact on the financial results and business competitiveness of the American companies in the light of globalization and their efforts to get the cost of production per unit as cheap as possible? Even though the book is written in the year 2005, the lapse of 8 years has not diminished the importance of his findings or rendered his observations faulty. Globalization is a burning topic that affects the developed, developing and the underdeveloped countries. Each country follows economic policies suiting to its current political needs and compulsions of the economy. Thus, Friedman may be adored by many, and criticized by some. Though he is an authority on the subject, he needs to break free from the narrow walls of thinking limited to his theories. The final picture of globalization is yet to emerge fully, but it has contributed substantially, to the noble aspirations of the humankind, “The World is One Family.” It is in the process of building the world without walls, transcending all the political and economic barriers. The process of globalization is unstoppable. But the thinkers and writers on the subject of globalization know only part of the truth, not the whole truth, and Friedman is one of them. He is right about his arguments, but those who criticize him are also not wrong. Technology is silently fighting its battle to level all the political philosophies, and give importance to the needs of the citizens. Works Cited Friedman, Thomas L. The World is Flat. New York: Farrar, Straus and Giroux, 2005 Stiglitz, Joseph E. Golbalization and Its Discontents. W. W. Norton & Company; April 2003 Stiglitz, Joseph E. Making Globalization Work. W. W. Norton & Company; 2007 Wolf, Martin. Why Globalization Works (Yale Nota Bene) Yale University Press; 2005 Read More