Tag Archives: globalization

The New World Order: Flat, Spiky or Divided?

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Just started Who’s Your City by Richard Florida out of personal interest but also to better figure out why it is the Vancouver sometimes works, and sometimes really doesn’t work. Figuring out that puzzle, and doing something is part of the reason I joined Vision (and yes, I’m still recovering from the victory celebrations).

I’m already sensing a convergence between Florida and some of my other favourite authors – namely Friedman (who Florida references) and Thomas Barnett (author of The Pentagon’s New Map among other books).

All three are noticing the same thing, and are even writing along similar veins, but there remain important distinctions, with important policy implications.

Flat: Friedman (whom I’m least familiar with) says the world is flat, that innovation, industry, commerce, etc… can now happen anywhere, so we have to prepare for a flat world. Here, I’d argue the core unit of analysis is the individual. We are all free agents, able to do anything or be anything, so we’re going increasingly going to start doing it anywhere. Yes, Friedman believes that governments and industry have massively important roles, but he ultimately sees a world where any place can become a place where people can prosper. If they agitate for it and build it.

Spiky: Florida’s analysis is that world is quite spiky, dominated by a set of mega-regions and super-cities where the bulk of the economic activity and culture is produced. These hubs are connected to one another and largely uncaring of the enormous economic valleys that separate them. For Florida, the fundamental unit of analysis is the city (or mega-region). These determine where power and influence will flow. Importantly, mega-regions cannot be constructed overnight – indeed there is a powerful self-reinforcing mechanism at work. Mega-regions attract talent from around the world, both further increasing their status and starving smaller cities and regions of the key resource – social capital – they need to grow. Individuals are important – but only in so far as they cluster. Countries are important too – in the Friedman sense that they create a generally favourable atmosphere – but they are not critical to the equation.

Divided: Barnett sees a divided world. One on the one side is the Functioning Core, characterized by economic interdependence and incentives to abide by rules, one the other is the Non-Integrated Gap characterized by unstable leadership and absence of international trade and weaker incentives to abide by international rule sets. Barnett’s primary unit of analysis is the state. He is principally concerned with the impact of globalization (and the rule-sets it creates) on state actors – how it constrains them and incents them to behave certain ways. In this world citizens are influence, but it is connectivity, largely (but hardly completely) determined by the state that matters most. Convince a state to connect with the world, and it’s path towards free market democracy (or some close variant) is predetermined.

I had so much fun mashing up the Firefox download map with Barnett’s map (and had an incredible response) I thought I’d try to do the same again but with these three authors. Below is a Flat World, overlaid with Spiky depiction of where the most innovation (patents) occurs, overlaid with Barnett’s division between the Function Core and the Non-Integrated Gap. Hoping to write more about these three views of the world over the coming weeks.

What’s interesting about the map’s below is that Barnett and Florida correlate quite nicely. And while they are complimentary I think it Florida’s reinforces the best critique of Barnett’s map I’ve read to date:

“Connectedness is a network property and networks are fractal not contiguous. There is no contiguous region that is disconnected. Within each disconnected country there are islands of connection and within each connected country there are islands of disconnection. This is true at all levels, continents, nations, regions, cities, and companies, right down to individuals. There are terrorist cells in US cities fighting to disconnect the world and Journalists with satellite cell phones in remotest Afghanistan, Iraq, and Somalia working to connect everything.”

I’m willing to bet almost anything that Florida’s maps follow a power law distribution. And the above description – well in Florida’s map there are valleys of non-innovation and non-connectivity within Barnett’s Core. The question is: Can the Mega-Regions assert enough control over these values to ensure their rule-sets are followed?

Innovation (# of patents)

Flat spiky and divided

Connectivity (Light Based Regional Product per Square Kilometer)

Flat spiky and divided (econ)

 

The challenge of Wal-Mart – the challenge of America

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Just finished reading The Wal-Mart Effect by Charles Fishman and thoroughly enjoyed it. So much to discuss and share, which I intend to, in a future post. Right now, I’ve just landed in Chicago about 4 1/2 hours later than planned and it’s late so I’m going to head to bed.

The one thought I wanted to throw out there was that this book – which beautifully dissects the strengths and weaknesses of Wal-Mart (hint, they are one and the same) is a fantastic microcosm of the two critical challenge facing America at the start of the 21st century.

The first, centres around if and how America will renew its social contract in the face of globalization and the existence of companies like Wal-Mart that are simply so much larger in scale than anything it has previously experienced. This challenge is made all the more complex by the fact that despite being a retailer, Wal-Mart is, at its core, an information company. The story of Wal-Mart is the story of America’s transition from the industrial to the post-industrial era (I think this is fascinating because of course no one sees Wal-Mart as an information age company but it is a much more accurate reflection of what this change looks like than say, the story of MicroSoft).

The second has to do with how isolated Wal-Mart is from American mainstream culture (and by extension the world’s) and America’s isolation from the world’s culture. Check out these lines from the last few paragraphs of the book:

“No one likes to hear or read an accounting of his or her faults. Most of us would wave off such blunt recital, or avert our eyes. But Wal-Mart needs to continue to try to listen to what Americans are saying about it, and we have a responsibility to continue to insist on accountability.

What Wal-Mart is trying to do, really, is engage the world, understand the world, meet its customers and suppliers in a different setting than shelf price. To do that, Wal-Marters need to travel, to routinely get out and hear what people say about them-in city council meetings, in industry conferences, at public forums. The transformation of Wal-Mart itself must come from the buildings in Bentonville [it’s HQ], yes: but the motivation for change can’t be found in the supplier meeting rooms or the streams of sales data, no matter how cleverly analyzed. The motivation for change will be found in the passion of customers and vendors-the ones who like Wal-Mart, the ones who don’t like Wal-Mart but can’t resist, the ones who define themselves by their refusal to deal with Wal-Mart, the ones who fear Wal-Mart.

For Wal-Mart to really change, it needs to be able to see itself as we see it, it needs to see the world clearly, it needs to look out.”

Substitute Wal-Mart for America and think about this as not the marketplace, but the global stage and you pretty much sum up the challenge of America. The country no longer can see itself the way the rest of the world does – and it needs to, if it is going to play the role we need it to play. America, like Wal-Mart, is neither inherently good or evil, it is simply an increadibly powerful force that needs to figure out how it is going to choose to make its actions felt. And we all have a responsiblity in shaping those choices. Americans’ or not.