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Department of Commerce official in the Clinton administration and now a private 


strategic consultant。 〃But whatis going on today is a much broader; much more profound 
phenomenon。〃 It is not simply about how governments; business; and people communicate; 
not just about how organizations interact; but is about the emergence of completely 
new social; political; and business models。 〃It is about things that impact some of 
the deepest; most ingrained aspects of society right down to the nature of the social 
contract;〃 added Rothkopf。 〃What happens if the political entity in which you are 
located no longer corresponds to a job that takes place in cyberspace; or no longer 
really encompasses workers collaborating with other workers in different corners of 
the globe; or no longer really captures products produced in multiple places 
simultaneously? Who regulates the work? Who taxes it? Who should benefit from those 
taxes?〃 
If I am right about the flattening of the world; it will be remembered as one of those 
fundamental changes…like the rise of the nation…state or the Industrial 
Revolution…each of which; in its day; noted Rothkopf; 

produced changes in the role of individuals; the role and form of governments; the 
way we innovated; the way we conducted business; the role of women; the way we fought 
wars; the way we educated ourselves; the way religion responded; the way art was 
expressed; the way science and research were conducted; not to mention the political 
labels we assigned to ourselves and to our opponents。 〃There are certain pivot points 
or watersheds in history that are greater than others because the changes they 
produced were so sweeping; multifaceted; and hard to predict at the time;〃 Rothkopf 
said。 
If the prospect of this flattening…and all of the pressures; dislocations; and 
opportunities accompanying it…causes you unease about the future; you are neither 
alone nor wrong。 Whenever civilization has gone through one of these disruptive; 
dislocating technological revolutions… like Gutenberg's introduction of the printing 
press…the whole world has changed in profound ways。 But there is something about the 
flattening of the world that is going to be qualitatively different from other such 
profound changes: the speed and breadth with which it is taking hold。 The introduction 
of printing happened over a period of decades and for a long time affected only a 
relatively small part of the planet。 Same with the Industrial Revolution。 This 
flattening process is happening at warp speed and directly or indirectly touching 
a lot more people on the planet at once。 The faster and broader this transition to 
a new era; the more likely is the potential for disruption; as opposed to an orderly 
transfer of power from the old winners to the new winners。 
To put it another way; the experiences of the high…tech companies in the last few 
decades who failed to navigate the rapid changes brought about in their marketplace 
by these types of forces may be a warning to all the businesses; institutions; and 
nation…states that are now facing these inevitable; even predictable; changes but 
lack the leadership; flexibility; and imagination to adapt…not because they are not 
smart or aware; but because the speed of change is simply overwhelming them。 
And that is why the great challenge for our time will be to absorb these changes in 
ways that do not overwhelm people but also do not leave them behind。 None of this 


will be easy。 But this is our task。 It 
47 
is inevitable and unavoidable。 It is the ambition of this book to offer a framework 
for how to think about it and manage it to our maximum benefit。 
I have shared with you in this chapter how I personally discovered that the world 
is flat。 The next chapter details how it got that way。 
::::: TWO 
The Ten Forces That Flattened the World 
The Bible tells us that God created the world in six days and on the seventh day he 
rested。 Flattening the world took a little longer。 The world has been flattened by 
the convergence often major political events; innovations; and companies。 None of 
us has rested since; or maybe ever will again。 This chapter is about the forces that 
flattened the world and the multiple new forms and tools for collaboration that this 
flattening has created。 
Flattener #1 
11/9/89 When the Walls Came Down and the Windows Went Up 
The first time I saw the Berlin Wall; it already had a hole in it。 It was December 
1990; and I was traveling to Berlin with the reporters covering Secretary of State 
James A。 Baker III。 The Berlin Wall had been breached a year earlier; on November 
9; 1989。 Yes; in a wonderful kabbalistic accident of dates; the Berlin Wall fell on 
11/9。 The wall; even in its punctured and broken state; was still an ugly scar across 
Berlin。 Secretary Baker was making his first visit to see this crumbled monument to 
Soviet communism。 I was standing next to him with a small group of reporters。 〃It 
was a foggy; overcast day;〃 Baker recalled in 
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his memoir; The Politics of Diplomacy; 〃and in my raincoat; I felt like a character 
in a John leCarre novel。 But as I peered through a crack in the Wall 'near the Reichstag' 
and saw the high…resolution drabness that characterizes East Berlin; I realized that 
the ordinary men and women of East Germany; peacefully and persistently; had taken 
matters into their own hands。 This was their revolution。〃 After Baker finished looking 
through the wall and moved along; we reporters took turns peering through the same 
jagged concrete hole。 I brought a couple of chunks of the wall home for my daughters。 
I remember thinking how unnatural it looked…indeed; what a bizarre thing it was; this 
cement wall snaking across a modern city for the sole purpose of preventing the people 
on the other side from enjoying; even glimpsing; freedom。 
The fall of the Berlin Wall on 11/9/89 unleashed forces that ultimately liberated 
all the captive peoples of the Soviet Empire。 But it actually did so much more。 It 
tipped the balance of power across the world toward those advocating democratic; 
consensual; free…market…oriented governance; and away from those advocating 
authoritarian rule with centrally planned economies。 The Cold War had been a struggle 
between two economic systems…capitalism and communism…and with the fall of the wall; 
there was only one system left and everyone had to orient himself or herself to it 
one way or another。 Henceforth; more and more economies would be governed from the 
ground up; by the interests; demands; and aspirations of the people; rather than from 


the top down; by the interests of some narrow ruling clique。 Within two years; there 
was no Soviet Empire to hide behind anymore or to prop up autocratic regimes in Asia; 
the Middle East; Africa; or Latin America。 If you were not a democracy or a 
democratizing society; if you continued to hold fast to highly regulated or centrally 
planned economics; you were seen as being on the wrong side of history。 
For some; particularly among the older generations; this was an unwelcome 
transformation。 Communism was a great system for making people equally poor。 In fact; 
there was no better system in the world for that than communism。 Capitalism madepeople 
unequally rich; and for some who were used to the plodding; limited; but secure 
Socialist 
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lifestyle…where a job; a house; an education; and a pension were all guaranteed; even 
if they were meager…the fall of the Berlin Wall was deeply unsettling。 But for many 
others; it was a get…out…of…jail…free card。 That is why the fall of the Berlin Wall 
was felt in so many more places than just Berlin; and why its fall was such a 
world…flattening event。 
Indeed; to appreciate the far…reaching flattening effects of the fall of the Berlin 
Wall; it's always best to talk to non…Germans or non…Russians。 Tarun Das was heading 
the Confederation of Indian Industry when the wall fell in Berlin; and he saw its 
ripple effect felt all the way to India。 〃We had this huge mass of regulation and 
controls and bureaucracy;〃 he recalled。 〃Nehru had come to power 'after the end of 
Br

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