In the World is Flat (2007), Thomas Friedman makes the bold assertion that technology has created equal opportunity for innovation and commerce across the globe. In his opening chapter he looks both abroad and the United States for new ways that work is performed via off-shore outsourcing, the case of call centers in Bangalore or moved to people’s homes in the case of reservationist for Jet Blue. As a journalist introducing a metaphor, he no doubt overstates his case to make his point.
As an academician, Richard Florida attempts to put data behind Friedman’s claim. In so doing, he determines that there are centers of innovation around the world creating spikes of globalization rather than a truly flat world. More recently, Pankaj Ghemawat, has analyzed data on globalization and determined the world is really only 10-20% globalized. I do not believe that data refutes the argument that technology has created a more distributed work force or a more connected world. It merely shows the degree to which that has occurred.
What is more interesting, I think, is to look at periods of globalization and ask if we truly have hit the mark on globalization 3.0.
Friedman identifies three eras of globalization:
- The 1.0 era from 1400 to 1800 that is characterized by countries that had power exploring and influencing the world.
- The 2.0 era, from 1800-2000, multi-national corporations had offices, warehouse, and other infrastructure around the world.
- The 3.0 era, from 2000, individuals from around the world compete and influence other people, corporations, and countries using technology.
My work in the field of software development leads me in the direction of believing that multi-national corporations are driving the migration of work to different places, what Florida describes as the spikes, in an effort to reduce costs, which drives up profits. Technology platforms are what allow these companies to transfer work to geographically disperse locations. While Friedman cites a blogger scooping a reporter as an example of the power of the individual to have global reach and some individuals have developed killer apps that changed the way we work and live, the bulk of the employment opportunities in the spiked cities are generated from corporations moving operations and work.