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frictions; and restraints to global commerce。 
〃Marx was one of the first to glimpse the possibility of the world as a global market; 
uncomplicated by national boundaries;〃 Sandel explained。 〃Marx was capitalism's 
fiercest critic; and yet he stood in awe of its power to break down barriers and create 
a worldwide system of production and consumption。 In the Communist Manifesto; he 
described capitalism as a force that would dissolve all feudal; national; and 
religious identities; giving rise to a universal civilization governed by market 
imperatives。 Marx considered it inevitable that capital would have its way…inevitable 
and also desirable。 Because once capitalism destroyed all national and religious 
allegiances; Marx thought; it would lay bare the stark struggle between capital and 
labor。 Forced to compete in a global race to the bottom; the workers of the world 
would unite in a global revolution to end oppression。 Deprived of consoling 
distractions such as patriotism and religion; they would see their exploitation 
clearly and rise up to end it。〃 
Indeed; reading the Communist Manifesto today; I am in awe at how incisively Marx 
detailed the forces that were flattening the world during the rise of the Industrial 
Revolution; and how much he foreshadowed the way these same forces would keep 
flattening the world right up to the present。 In what is probably the key paragraph 
of the Communist Manifesto; Marx and Engels wrote: 
All fixed; fast; frozen relations; with their train of ancient and venerable 
prejudices and opinions; are swept away; all new…formed ones become antiquated before 
they can ossify。 All that is solid melts into air; all that is holy is profaned; and 
man is at last compelled to face with sober senses his real conditions of life and 


his relations with his kind。 The need of a constantly expanding market for its products 
chases the bourgeoisie over the whole surface 
203 
of the globe。 It must nestle everywhere; settle everywhere; establish connections 
everywhere。 The bourgeoisie has through its exploitation of the world market given 
a cosmopolitan character to production and consumption in every country。 To the great 
chagrin of reactionaries; it has drawn from under the feet of industry the national 
ground on which it stood。 All old…established national industries have been destroyed 
or are daily being destroyed。 They are dislodged by new industries; whose introduction 
becomes a life and death question for all civilised nations; by industries that no 
longer work up indigenous raw material; but raw material drawn from the remotest zones; 
industries whose products are consumed; not only at home; but in every quarter of 
the globe。 In place of the old wants; satisfied by the production of the country; 
we find new wants; requiring for their satisfaction the products of distant lands 
and climes。 In place of the old local and national seclusion and self…sufficiency; 
we have intercourse in every direction; universal inter…dependence of nations。 And 
as in material; so also in intellectual production。 The intellectual creations of 
individual nations become common property。 National one…sidedness and 
narrow…mindedness become more and more impossible; and from the numerous national 
and local literatures there arises a world literature。 
The bourgeoisie; by the rapid improvement of all instruments of production; by the 
immensely facilitated means of communication; draws all; even the most barbarian 
nations into civilisation。 The cheap prices of commodities are the heavy artillery 
with which it barters down all Chinese walls; with which it forces the barbarians' 
intensely obstinate hatred of foreigners to capitulate。 It compels all nations; on 
pain of extinction; to adopt the bourgeois mode of production; it compels them to 
introduce what it calls civilisation into their midst; i。e。; to become bourgeois 
themselves。 In one word; it creates a world after its own image。 
It is hard to believe that Marx published that in 1848。 Referring to the Communist 
Manifesto; Sandel told me; 〃You are arguing something sim204 
ilar。 What you are arguing is that developments in information technology are enabling 
companies to squeeze out all the inefficiencies and friction from their markets and 
business operations。 That is what your notion of'flattening' really means。 But a flat; 
frictionless world is a mixed blessing。 It may; as you suggest; be good for global 
business。 Or it may; as Marx believed; augur well for a proletarian revolution。 But 
it may also pose a threat to the distinctive places and communities that give us our 
bearings; that locate us in the world。 From the first stirrings of capitalism; people 
have imagined the possibility of the world as a perfect market…unimpeded by 
protectionist pressures; disparate legal systems; cultural and linguistic 
differences; or ideological disagreement。 But this vision has always bumped up 
against the world as it actually is…full of sources of friction and inefficiency。 
Some obstacles to a frictionless global market are truly sources of waste and lost 
opportunities。 But some of these inefficiencies are institutions; habits; cultures; 


and traditions that people cherish precisely because they reflect nonmarket values 
like social cohesion; religious faith; and national pride。 If global markets and new 
communications technologies flatten those differences; we may lose something 
important。 That is why the debate about capitalism has been; from the very beginning; 
about which frictions; barriers; and boundaries are mere sources of waste and 
inefficiency; and which are sources of identity and belonging that we should try to 
protect。 From the telegraph to the Internet; every new communications technology has 
promised to shrink the distance between people; to increase access to information; 
and to bring us ever closer to the dream of a perfectly efficient; frictionless global 
market。 And each time; the question for society arises with renewed urgency: To what 
extent should we stand aside; 'get with the program;' and do all we can to squeeze 
out yet more inefficiencies; and to what extent should we lean against the current 
for the sake of values that global markets can't supply? Some sources of friction 
are worth protecting; even in the face of a global economy that threatens to flatten 
them。〃 
The biggest source of friction; of course; has always been the nation…state; with 
its clearly defined boundaries and laws。 Are national boundaries a source of friction 
we should want to preserve; or even can preserve; in a flat world? What about legal 
barriers to the free flow of in… 

formation; intellectualproperty; and capital…such ascopyrights; worker protections; 
and minimum wages? In the wake of the triple convergence; the more the flattening 
forces reduce friction and barriers; the sharper the challenge they will pose to the 
nation…state and to the particular cultures; values; national identities; democratic 
traditions; and bonds of restraint that have historically provided some protection 
and cushioning for workers and communities。 Which do we keep and which do we let melt 
away into air so we can all collaborate more easily? 
This will take some sorting out; which is why the point that Michael Sandel raises 
is critical and is sure to be at the forefront of political debate both within and 
between nation…states in the flat world。 As Sandel argued; what I call collaboration 
could be seen by others as just a nice name for the ability to hire cheap labor in 
India。 You cannot deny that when you look at it from an American perspective。 But 
that is only if you look at it from one side。 From the Indian worker's perspective; 
that same form of collaboration; outsourcing; could be seen as another name for 
empowering individuals in the developing world as never before; enabling them to 
nurture; exploit; and profit from their God…given intellectual talents…talents that 
before the flattening of the world often rotted on the docks of Bombay and Calcutta。 
Looking at it from the American corner of the flat world; you might conclude tha

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