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feet the day…to…day operations of many; many companies。〃 No one would answer the 
phones in call centers。 Many e…commerce sites that are supported from Bangalore would 
shut down。 Many major companies that rely on India to maintain their key computer 
applications or handle their human resources departments or billings would seize up。 
And these companies did not want to find alternatives; said Paul。 Switching is very 
difficult; because taking over mission…critical day…to…day backroom operations of 
a global company takes a great deal of training and experience。 It's not like opening 
a fast…food restaurant。 That was why; said Paul; Wipro's clients were telling him; 
〃'I have made an investment in you。 I need you to be very responsible with the trust 
I have reposed in you。' And I think that created an enormous amount of back pressure 


on us that said we have to act in a responsible fashion 。。。 All of a sudden it became 
even clearer that there's more to gain by economic gains than by geopolitical gains。 
'We had more to gain from building' a vibrant; richer middle class able to create 
an export industry than we possibly could by having an ego…satisfying war with 
Pakistan。〃 The Indian government also looked around and realized that the vast 
majority of India's billion people were saying; 〃I want a better future; not more 
territory。〃 Over and over again; when I asked young Indians working at call centers 
how they felt about Kashmir or a war with Pakistan; they waved me off with the same 
answer: 〃We have better things to do。〃 And they do。 America needs to keep this in 
mind as it weighs its overall approach to outsourcing。 I would never advocate shipping 
some American's job overseas just so it will keep Indians and Pakistanis at peace 
with each other。 But I would say that to the extent that this process happens; driven 
by its own internal economic logic; it will have a net positive geopolitical effect。 
It will absolutely make the world safer for American kids。 
Each of the Indian business leaders I interviewed noted that in the event of some 
outrageous act of terrorism or aggression from Pakistan; India would do whatever it 
takes to defend itself; and they would be the first to support that…the Dell Theory 
be damned。 Sometimes war is unavoidable。 It is imposed on you by the reckless behavior 
of others; and you have to just pay the price。 But the more India and; one hopes; 
soon Pakistan get enmeshed in global service supply chains; the greater disin

centive they have to fight anything but a border skirmish or a war of words。 
The example of the 2002 India…Pakistan nuclear crisis at least gives us some hope。 
That cease…fire was brought to us not by General Powell but by General Electric。 
We bring good things to life。 
Infosys Versus al…Qaeda 
Unfortunately; even GE can do only so much。 Because; alas; a new source for 
geopolitical instability has emerged only in recent years; for which even the updated 
Dell Theory can provide no restraint。 It is the emergence of mutant global supply 
chains …that is; nonstate actors; be they criminals or terrorists; who learn to use 
all the elements of the flat world to advance a highly destabilizing; even nihilistic 
agenda。 I first started thinking about this when Nandan Nilekani; the Infosys CEO; 
was giving me that tour I referred to in Chapter 1 of his company's global 
videoconferencing center at its Bangalore headquarters。 As Nandan explained to me 
how Infosys could getits global supply chain together atonce for a virtual conference 
in that room; a thought popped into my head: Who else uses open…sourcing and 
supply…chaining so imaginatively? The answer; of course; is al…Qaeda。 
Al…Qaeda has learned to use many of the same instruments for global collaboration 
that Infosys uses; but instead of producing products and profits with them; it has 
produced mayhem and murder。 This is a particularly difficult problem。 In fact; it 
may be the most vexing geopolitical problem for flat…world countries that want to 
focus on the future。 The flat world…unfortunately…is a friend of both Infosys and 
al…Qaeda。 The Dell Theory will not work at all against these informal Islamo…Leninist 
terror networks; because they are not a state with a population that will hold its 


leaders accountable or with a domestic business lobby that might restrain them。 These 
mutant global supply chains are formed for the purpose of destruction; not profit。 
They don't need investors; only recruits; 
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donors; and victims。 Yet these mobile; self…financing mutant supply chains use all 
the tools of collaboration offered by the flat world…open…sourcing to raise money; 
to recruit followers; and to stimulate and disseminate ideas; outsourcing to train 
recruits; and supply…chaining to distribute the tools and the suicide bombers to 
undertake operations。 The U。S。 Central Command has a name for this whole underground 
network: the Virtual Caliphate。 And its leaders and innovators understand the flat 
world almost as well as Wal…Mart; Dell; and Infosys do。 
In the previous chapter; I tried to explain that you cannot understand the rise of 
al…Qaeda emotionally and politically without reference to the flattening of the world。 
What I am arguing here is that you cannot understand the rise of al…Qaeda technically 
without reference to the flattening of the world; either。 Globalization in general 
has been al…Qaeda's friend in that it has helped to solidify a revival of Muslim 
identity and solidarity; with Muslims in one country much better able to see and 
sympathize with the struggles of their brethren in another country…thanks to the 
Internet and satellite television。 At the same time; as pointed out in the previous 
chapter; this flattening process has intensified the feelings of humiliation in some 
quarters of the Muslim world over the fact that civilizations to which the Muslim 
world once felt superior…Hindus; Jews; Christians; Chinese …are now all doing better 
than many Muslim countries; and everyone can see it。 The flattening of the world has 
also led to more urbanization and large…scale immigration to the West of many of these 
young; unemployed; frustrated Arab…Muslim males; while simultaneously making it much 
easier for informal open…source networks of these young men to form; operate; and 
interconnect。 This certainly has been a boon for underground extremist Muslim 
political groups。 There has been a proliferation of these informal mutual supply 
chains throughout the Arab…Muslim world today…small networks of people who move money 
through hawalas (hand…to…hand financing networks); who recruit through alternative 
education systems like the madrassas; and who communicate through the Internet and 
other tools of the global information revolution。 Think about it: A century ago; 
anarchists were limited in their ability to communicate and collaborate with one 
another; to find sympathizers; and to band together for an 
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operation。 Today; with the Internet; that is not a problem。 Today even the Unabomber 
could find friends to join a consortium where his 〃strengths〃 could be magnified and 
reinforced by others who had just as warped a worldview as he did。 
What we have witnessed in Iraq is an even more perverse mutation of this mutant supply 
chain…the suicide supply chain。 Since the start of the U。S。 invasion in March 2002; 
more than two hundred suicide bombers have been recruited from within Iraq and from 
across the Muslim world; brought to the Iraqi front by some underground railroad; 
connected with the bomb makers there; and then dispatched against U。S。 and Iraqi 
targets according to whatever suits the daily tactical needs of the insurgent Islamist 


forces in Iraq。 I can understand; but not accept; the notion that more than 
thirty…seven years of Israeli occupation of the West Bank might have driven some 
Palestinians into a suicidal rage。 But the American occupation of Iraq was only a 
few months old before it started to get hit by this suicide supply chain。 How do you 
recruit so many young men 〃off the shelf〃 who are ready to commit suicide in the cause 
of jihad; m

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