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Thomas L Friedman 


To Matt and Kay and to Ron 



Contents 

How the World Became Flat 

One: While I Was Sleeping / 3 
Two: The Ten Forces That Flattened the World / 48 
Flattener#l。 11/9/89 
Flattener #2。 8/9/95 
Flattener #3。 Work Flow Software 
Flattener #4。 Open…Sourcing 
Flattener #5。 Outsourcing 
Flattener #6。 Offshoring 
Flattener #7。 Supply…Chaining 
Flattener #8。 Insourcing 
Flattener #9。 In…forming 
Flattener #10。 
The Steroids Three: The Triple Convergence / 173 
Four: The Great Sorting Out / 201 

America and the Flat World 

Five: America and Free Trade / 225 
Six: The Untouchables / 237 
Seven: The Quiet Crisis / 250 
Eight: This Is Not a Test / 276 

Developing Countries and the Flat World 

Nine: The Virgin of Guadalupe / 309 
Companies and the Flat World 
Geopolitics and the Flat World 
Eleven: The Unflat World / 371 
Twelve: The Dell Theory of Conflict Prevention / 414 
Conclusion: Imagination 
Thirteen: 11/9 Versus 9/11 / 441 
Acknowledgments I 471 Index I 475 


:::::How the World Became Flat 

::::: ONE 
While I Was Sleeping 
Your Highnesses; as Catholic Christians; and princes who love and promote the holy 
Christian faith; and are enemies of the doctrine of Mahomet; and of all idolatry and 
heresy; determined to send me; Christopher Columbus; tothe above…mentioned countries 
of India; to see the said princes; people; and territories; and to learn their 
disposition and the proper method of converting them to our holy faith; and 
furthermore directed that I should not proceed by land to the East; as is customary; 
but by a Westerly route; in which direction we have hitherto no certain evidence that 
anyone has gone。 

… Entry from the journal of Christopher Columbus on his voyage of 1492 
No one ever gave me directions like this on a golf course before: 〃Aim at either 
Microsoft or IBM。〃 I was standing on the first tee at the KGA Golf Club in downtown 
Bangalore; in southern India; when my playing partner pointed at two shiny 
glass…and…steel buildings off in the distance; just behind the first green。 The 
Goldman Sachs building wasn't done yet; otherwise he could have pointed that out as 
well and made it a threesome。 HP and Texas Instruments had their offices on the back 
nine; along the tenth hole。 That wasn't all。 The tee markers were from Epson; the 
printer company; and one of our caddies was wearing a hat from 3M。 Outside; some of 
the traffic signs were also sponsored by Texas Instruments; and the Pizza Hut 
billboard on the way over showed a steaming pizza; under the headline 〃Gigabites of 
Taste!〃 
No; this definitely wasn't Kansas。 It didn't even seem like India。 Was this the New 
World; the Old World; or the Next World? 
I had come to Bangalore; India's Silicon Valley; on my own Columbus…like journey of 
exploration。 Columbus sailed with the Nina; the Pinta; and the Santa Maria in an effort 
to discover a shorter; more direct route toIndia by heading west; across the Atlantic; 
on what he presumed to be an open sea route to the East Indies…rather than going south 
and east around Africa; as Portuguese explorers of his day were trying to do。 India 
and the magical Spice Islands of the East were famed at the time for their gold; pearls; 
gems; and silk…a source of untold riches。 Finding this shortcut by sea to India; at 
a time when the Muslim powers of the day had blocked the overland routes from Europe; 
was a way for both Columbus and the Spanish monarchy to become wealthy and powerful。 
When Columbus set sail; he apparently assumed the Earth was round; which was why he 
was convinced that he could get to India by going west。 He miscalculated the distance; 
though。 He thought the Earth was a smaller sphere than it is。 He also did not anticipate 
running into a landmass before he reached the East Indies。 Nevertheless; he called 
the aboriginal peoples he encountered in the new world 〃Indians。〃 Returning home; 
though; Columbus was able to tell his patrons; King Ferdinand and Queen Isabella; 


that although he never did find India; he could confirm that the world was indeed 
round。 
I set out for India by going due east; via Frankfurt。 I had Lufthansa business class。 
I knew exactly which direction I was going thanks to the GPS map displayed on the 
screen that popped out of the armrest of my airline seat。 I landed safely and on 
schedule。 I too encountered people called Indians。 I too was searching for the source 
of India's riches。 Columbus was searching for hardware…precious metals; silk; and 
spices…the source of wealth in his day。 I was searching for software; brainpower; 
complex algorithms; knowledge workers; call centers; transmission protocols; 
breakthroughs in optical engineering…the sources of wealth in our day。 Columbus was 
happy to make the Indians he met his slaves; a pool of free manual labor。 
I just wanted to understand why the Indians I met were taking our work; why they had 
become such an important pool for the outsourcing 

of service and information technology work from America and other industrialized 
countries。 Columbus had more than one hundred men on his three ships; I had a small 
crew from the Discovery Times channel that fit comfortably into two banged…up vans; 
with Indian drivers who drove barefoot。 When I set sail; so to speak; I too assumed 
that the world was round; but what I encountered in the real India profoundly shook 
my faith in that notion。 Columbus accidentally ran into America but thought he had 
discovered part of India。 I actually found India and thought many of the people I 
met there were Americans。 Some had actually taken American names; and others were 
doing great imitations of American accents at call centers and American business 
techniques at software labs。 
Columbus reported to his king and queen that the world was round; and he went down 
in history as the man who first made this discovery。 I returned home and shared my 
discover)' only with my wife; and only in a whisper。 
〃Honey;〃 I confided; 〃I think the world is flat。〃 
How did I come to this conclusion? I guess you could say it all started in Nandan 
Nilekani's conference room at Infosys Technologies Limited。 Infosys is one of the 
jewels of the Indian information technology world; and Nilekani; the company's CEO; 
is one of the most thoughtful and respected captains of Indian industry。 I drove with 
the Discovery Times crew out to the Infosys campus; about forty minutes from the heart 
of Bangalore; to tour the facility and interview Nilekani。 The Infosys campus is 
reached by a pockmarked road; with sacred cows; horse…drawn carts; and motorized 
rickshaws all jostling alongside our vans。 Once you enter the gates of Infosys; though; 
you are in a different world。 A massive resort…size swimming pool nestles amid 
boulders and manicured lawns; adjacent to a huge putting green。 There are multiple 
restaurants and a fabulous health club。 Glass…and…steel buildings seem to sprout up 
like weeds each week。 In some of those buildings; Infosys employees are writing 
specific software programs for American or European companies; in others; they are 
running the back rooms of major 


American… and European…based multinationals…everything from computer maintenance to 
specific research projects to answering customer calls routed there from all over 
the world。 Security is tight; cameras monitor the doors; and if you are working for 
American Express; you cannot get into the building that is managing services and 
research for General Electric。 Young Indian engineers; men and women; walk briskly 
from building to building; dangling ID badges。 One looked like he could do my taxes。 
Another looked like she could take my computer apart。 And a third looked like she 
designed it! 
After sitting for an interview; Nilekani gave our TV crew a tour of Info…sys's global 
conferencing center…ground zero of the Indian outsourcing industry。 It was a 
cavernous wood…paneled room that looked like a tiered classroom from an Ivy League 
law school。 On one end was a massive wall…size screen and overhead there were cameras 
in the ceiling for teleconferencing。 〃S

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