One Size Doesn’t Fit!

Linda » 11 October 2008 » In Uncategorized »

(courtesy of Wikipedia)

(courtesy of Wikipedia)

Network technologies have not only served to harmonize the world by fostering economic transactions–as Thomas Friedman argues in his book, The World is Flat (2004); as importantly, these technologies have functioned as media channels, providing a vehicle for promoting a common set of economic ideologies and business practices, which have helped sustain these global transactions. Friedman argues that, in a flat world in which all countries are operating on an equal playing field, the United States must become more competitive by enhancing its own human resources. A good principle, for sure.
However, what Friedman fails to take into account is that a flat world may–on its own account–be unsustainable over the long run!

However, what Friedman fails to take into account is that a flat world may–on its own account–be unsustainable over the long run!

When considering the shape of the world today, it is important to remember that the structure of information flows–and hence ideas and ideology–is anything but flat. To the contrary, it is decidedly asymmetrical. In fact, as Joseph Stiglitz has argued in Globalization and its Discontents (2002), the US, together with its allies in the IMF, and to a lesser extent the World Bank, have acted in a typically hegemonic fashion, employing their dominance of world-wide communication networks (both institutional as well as technological) to create precisely the same flat world that Friedman describes. Characterizing the negative impacts of the IMF’s policies, Stiglitz points out that the greatest mistake the world financial leaders made in response to the 1980 debt crisis was to unquestioningly adhere to their own economic fundamentalism, notwithstanding its failures, and to insist that one size–that is to say the Washington Consensus–fits all.

the greatest mistake the world financial leaders made… was to insist that one size–that is to say, the Washington Consensus–fits all.

Like Stiglitz, the evolutionary economist Geoffrey M. Hodgson takes issue with the notion that capitalist systems will converge. Pointing to the stickiness of cultural aspects of economic behavior (which he defines as the impurity principle), Hodgson argues that diversity in the global economy is likely to persist (Hodgson et al, 2001, chapter five). In fact, as he contends, just as in the biological world, such variation is essential for survival. For, if, as Friedman suggests, the world is really flat, where can we look for alternative, adaptive strategies in the event of major economic shocks and upheavals in our environment.

For if, as Friedman suggests, the world is really flat, where can we look for alternative, adaptive strategies in the event of major economic shocks and upheavals in our environment.

The rapid spread of the global financial crisis, from one nation to the next, provides one illustration of some of the dangers inherent in an increasingly flat world. Of course, it is still far too early to anticipate how extensive the damage will be. However, the crisis itself provides essential and long-needed feedback about the dangers of pursuing a singular approach, especially if it is wrong. As the leaders of the world meet to develop strategies to address the present financial crisis, the mistakes of the 1980’s debt crisis should not be repeated. All voices need to be heard, and a variety of approaches (insofar as they are congruent with one another) should be tolerated.

On Technorati: evolutionary economics, Geoffrey Hodgson, global economic crisis, Joseph Stiglitz, The World is Flat, Thomas Friedman, Washington Consensus

Share/Save/Bookmark

Tags: , , , , , ,

Trackback URL

3 Comments on "One Size Doesn’t Fit!"

  1. Linda
    concerned citizen
    22/10/2008 at 11:29 am Permalink

    In view of the financial crisis gripping US today, and consequently the rest of the world, and also as a rebuttal to Friedman’s “Flat” world book, I found a small, but interesting book, by Aronica and Ramdoo, “The World is Flat? A Critical Analysis of Thomas Friedman’s New York Times Bestseller,” which offers a counterperspective to Friedman’s theory on globalization.

    Interestingly enough, the book written about two years back, discusses in the following chapters,
    “Debt and Financialization of America”
    “America”s Former Middle Class”
    “A Paradigm Shift for America” with prescriptions for the future

    the debt ridden American society, deregulated financial institutions, mortgage crisis and other related issues, with clear pointers to the economic crisis gripping US today. For more information regarding the same, check this out: mkpress.com/FlatExcerpts.pdf

    This is a small book compared to the 600 page tome by Friedman, and aimed at the common man and students alike. As popular as the book may be, some reviewers assert that by what it leaves out, Friedman’s book is dangerous. The authors point to the fact that there isn’t a single table or data footnote in Friedman’s entire book.

    “Globalization is the greatest reorganization of the world since the Industrial Revolution,” says Aronica.

    You may want to see http://www.mkpress.com/flat
    and watch http://www.mkpress.com/flatoverview.html
    for an interesting counterperspective on Friedman’s
    “The World is Flat”.

    Also a really interesting 6 min wake-up call: Shift Happens! http://www.mkpress.com/ShiftExtreme.html

    There is also a companion book listed: Extreme Competition: Innovation and the Great 21st Century Business Reformation
    http://www.mkpress.com/extreme
    http://www.mkpress.com/Extreme11minWMV

  2. Linda
    Linda
    22/10/2008 at 3:07 pm Permalink

    Thanks for the information. It looks very useful. Linda

Trackbacks

  1. [...] CCT professor, Linda Garcia, argues that “one size doesn’t fit”, several strategies should be used to solve [...]

Hi Stranger, leave a comment:

ALLOWED XHTML TAGS:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Subscribe to Comments