The book the Lexus and the Olive Tree was written by Thomas L. Friendman. The book is about how globalization has taken the world by storm. The book has twenty chapters and is split into four parts. Part one is called Seeing The System, part two is called Plugging Into The System, part three is called The Backlash Against The System, and the final part is called America and The System. To continue, Friedman uses vivid stories to give the reader a vivid ideal to what this new system looks like. To begin, part one of the books is about Plugging into the system.
First one must understand exactly what this new system is. This new system is called globalization. Globalization is the interweaving of markets, technology, information systems and telecommunications systems in a way that is shrinking the world from a size medium to a size small, and enabling each of us to reach around the world farther, faster, deeper, and cheaper than ever before. Friedman believes that the new system has replaced the cold war as the defining international system because it is made the world more interwoven with each other.
While the cold war we reached for the hotline which was between two people, with globalization, we have the web which can reach millions. Many markets became free from the shackles of the cold war. Free markets and democracy was being spread like wild fire; countries were growing with new technology, and furthermore internationally communicated with each other like never before. This was all happening due to globalization. Furthermore when Friedman wrote that the world is only ten years old he is merely metaphorically speaking.
The world’s age symbolizes the age of the era of globalization. While globalization changes the world, there are three factors that have to occur in order for it to happen. These factors are democratization of technology, democratization of finance and democratization of information. Democratization of technology can be defined as a worldwide integration system that can weave not only individuals but global information and markets (Price, 2011). This world is an interwoven place encompassed by opportunities and threats which derive from the people who you are connected to (Friedman, 2000).
The social media sites that we use today such as Facebook and Twitter are all prime examples of how the usage of the media is a form of integration, the content from these sites are published worldwide for everyone to see. The democratization of finance, otherwise known as free market capitalism expanded vastly across the world. The world of entrepreneurism has taken storm in modern markets and continues to emerge hopeful that they will achieve success in becoming an entrepreneur. This creates competition in markets begins a battle for economic privatization, free-capital, and a better economy.
These free market economies which are founded by Globalization are attractive in terms of foreign investments (Friedman, 2000 p. 9). The final factor is the democratization of information. Information is the most valuable piece data in today’s market. Information is important and needed. To contrast information can at times be distorted. An example can be seen in the false information sometimes given by the Media. The Internet, Satellites, and television allow the world’s population to gain information about other regions and countries around the world. Price, 2011).
With globalization came the ideal of the Lexus and the olive tree, hence then came the title of the book. The Lexus symbolized the need for humans to advance and improve their lives. This is not just in relation to a car, but to the advancements of markets, technology and other things. The olive tree symbolizes the things that keep people rooted and gives them a sense of belonging or fulfillment. As said in the book, when the cold war ended half of the world was focused on advancing, the other half was still trying to fight for who owns what.
Furthermore in order for a country to survive, Friedman states that they must be plugged in to the electronic heard. The electronic heard is the anonymous stock, bond, currency and multi-national investors from many different countries. One hundred and eighty countries are connected by screens and networks. This heard is imperfect and always changing, I can crash but also bring its back up. Part two if the book which is called plugging into the system. This part is about how countries interact and the downsides of globalization. Friedman developed the golden arches theory in this part of the book.
The downsides of globalization were vast. It is feared that with globalization, countries will lose their diversity. In addition, the author states that there is more crime due to globalization. Furthermore, in some countries the biggest problems are not coming from the poorest people, but from the middle and lower classes, who found refuge in the pre cold war era. The strength of these problems depends on the strength (or in the case how weak) the country’s economy is. Another problem is that while globalization creates a more intertwined world it also created an unequal world. Kleptocracy which occurs in corrupted countries.
It is when many or all of the states functions have become infected with legal transactions. The higher officials and other organizations have gained control the state owned factories and natural resources at cheap below market rates. This can be seen in the countries of Eastern Europe and Russia. These countries control and gain billions of dollars through corrupt privatization programs. Friedman opens the reader’s eyes as to the problems that corrupt countries cause and the harm that they do to the people in them. Subsequently the reader makes connections to other countries that exhibit such behavior such as the country of Haiti.
Years ago, Haiti suffered from a massive earthquake, which resulted in a large death count and may facilities being destroyed due to the natural disaster. Millions of dollars were raised by the US and other countries, which was given hope the country would use it to recover from the damages but instead the money was used to improve their military. The people affected by the earthquake never saw the money that was meant for them. Part three and four of the book focus on backlash and the American system. Backlash against globalization occurs in some countries.
The reason this occurs is because they are under the assumption that globalization is an American phenomenal creation. Furthermore if a country does not want to be like the United States then they will resent globalization. Globalization in America creates a lot of envy from other nations. In addition, countries may feel as if the United States trying to speed up the process of making the world bigger, faster and more globally intertwined. Countries may not be as ready to speed up globalization and are comfortable with how things are, as opposed to the United States, who has a lot of experience with globalization.
Consequently backlash happens because of this. In addition there are people that want globalization to occur. People below poverty want in on globalization, which is called groundswell. Groundswell is like when it floods and water comes up from the ground. Groundswell is impelled by millions of workers who have been knocked around by globalization but keep knocking on globalization’s door, demanding to get into the system. While people want globalization the sad reality is that in many countries their voices do not matter. Some countries leaders choose not to change because they are not ready, or because they do not want to be like America.
It is just difficult to realize how good the American people have things in comparison to others. Furthermore, it is later conveyed that Globalization can advance but also destroy itself all together. This can bee seen by countries having trouble developing the right software and operating systems. In addition the world being too connected may destablalize itself. To add, the electronic herd promotes total transparency in financial dealings. The system could be too unfair for too many people, the results could be just too dehumanizing furthermore reducing the quality of life.
Today’s markets are so big, so diverse and… becoming so fast that they can never be made immune from crisis. Global financial crisis will be the norm in this coming era. ‘(p. 371) In conclusion, Friedman to made globalization come alive. He gave the book an unfinished story which is left in the hands of the people to control. It is a sociologically useful document. The book opens the readers eyes to the idea that there is such oppositions against globalization. Not everyone is in favor of the progression of globalization.