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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
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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。
Flattener #1
11/9/89 When the Walls Came Down and the Windows Went Up
The first time I saw the Berlin Wall; it already had a hole in it。 It was December
1990; and I was traveling to Berlin with the reporters covering Secretary of State
James A。 Baker III。 The Berlin Wall had been breached a year earlier; on November
9; 1989。 Yes; in a wonderful kabbalistic accident of dates; the Berlin Wall fell on
11/9。 The wall; even in its punctured and broken state; was still an ugly scar across
Berlin。 Secretary Baker was making his first visit to see this crumbled monument to
Soviet communism。 I was standing next to him with a small group of reporters。 〃It
was a foggy; overcast day;〃 Baker recalled in
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his memoir; The Politics of Diplomacy; 〃and in my raincoat; I felt like a character
in a John leCarre novel。 But as I peered through a crack in the Wall 'near the Reichstag'
and saw the high…resolution drabness that characterizes East Berlin; I realized that
the ordinary men and women of East Germany; peacefully and persistently; had taken
matters into their own hands。 This was their revolution。〃 After Baker finished looking
through the wall and moved along; we reporters took turns peering through the same
jagged concrete hole。 I brought a couple of chunks of the wall home for my daughters。
I remember thinking how unnatural it looked…indeed; what a bizarre thing it was; this
cement wall snaking across a modern city for the sole purpose of preventing the people
on the other side from enjoying; even glimpsing; freedom。
The fall of the Berlin Wall on 11/9/89 unleashed forces that ultimately liberated
all the captive peoples of the Soviet Empire。 But it actually did so much more。 It
tipped the balance of power across the world toward those advocating democratic;
consensual; free…market…oriented governance; and away from those advocating
authoritarian rule with centrally planned economies。 The Cold War had been a struggle
between two economic systems…capitalism and communism…and with the fall of the wall;
there was only one system left and everyone had to orient himself or herself to it
one way or another。 Henceforth; more and more economies would be governed from the
ground up; by the interests; demands; and aspirations of the people; rather than from
the top down; by the interests of some narrow ruling clique。 Within two years; there
was no Soviet Empire to hide behind anymore or to prop up autocratic regimes in Asia;
the Middle East; Africa; or Latin America。 If you were not a democracy or a
democratizing society; if you continued to hold fast to highly regulated or centrally
planned economics; you were seen as being on the wrong side of history。
For some; particularly among the older generations; this was an unwelcome
transformation。 Communism was a great system for making people equally poor。 In fact;
there was no better system in the world for that than communism。 Capitalism madepeople
unequally rich; and for some who were used to the plodding; limited; but secure
Socialist
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lifestyle…where a job; a house; an education; and a pension were all guaranteed; even
if they were meager…the fall of the Berlin Wall was deeply unsettling。 But for many
others; it was a get…out…of…jail…free card。 That is why the fall of the Berlin Wall
was felt in so many more places than just Berlin; and why its fall was such a
world…flattening event。
Indeed; to appreciate the far…reaching flattening effects of the fall of the Berlin
Wall; it's always best to talk to non…Germans or non…Russians。 Tarun Das was heading
the Confederation of Indian Industry when the wall fell in Berlin; and he saw its
ripple effect felt all the way to India。 〃We had this huge mass of regulation and
controls and bureaucracy;〃 he recalled。 〃Nehru had come to power 'after the end of
British colonial rule' and had a huge country to manage; and no experience of running
a country。 The U。S。 was busy with Europe and Japan and the Marshall Plan。 So Nehru
looked north; across the Himalayas; and sent his team of economists to Moscow。 They
came back and said that this country 'the Soviet Union' was amazing。 They allocate
resources; they give licenses; there is a planning commission that decides everything;
and the country moves。 So we took that model and forgot that we had a private sector 。 。 。
That private sector got put under this wall of regulation。 By 1991; the private sector
was there; but under wraps; and there was mistrust about business。 They made profits!
The entire infrastructure from 1947 to 1991 was government…owned 。 。 。 'The burden
of state ownership' almost bankrupted the country。 We were not able to pay our debts。
As a people; we did not have self…confidence。 Sure; we might have won a couple of
wars with Pakistan; but that did not give the nat