The Virgin Guadalupe

Before reading The World is Flat I wondered why so many companies were sourcing from Asia when we had such a low cost manufacturer right below us. It turns out they were also wondering why they were sourcing from Asia. It was interesting to see how traditionally low wage, low cost countries like Mexico are affected by the flat world. It also gives you an idea of what stands to happen to China. Eventually the will be standing in Mexico’s shoes wondering where all the money went.
So how do developing countries deal with the flat world? Freidman suggests introspection. They need to take a long hard look at themselves and seeing what their strengths and weakness are. They must ask themselves how to develop their talents to compete in a flat world. Developing countries must focus on four things in order to align themselves with the flat world. First, they must have the right infrastructure to connect their people with the flat world platform. This would arguably be the biggest step for any country, as it requires an upfront investment in internet bandwidth, mobile phones, modern airports and roads. The second step is to develop the right educational system. The system should get more people collaborating on the flat world platform. The third is the right governance. This would probably be the most difficult step this means having the right fiscal policy, laws, and bureaucracy. It may require a great change in traditions and government that may not be so widely accepted. Finally, each country needs to realize the importance of maintaining their environment. This is steps is bound to happen in developing country either out of necessity or the onset of social responsibility.
As the Berlin Wall fell many countries started to make these adaptations however it is in the area of better governance that we see the most important and drastic changes. Countries have focused on developing more market-friendly economic policies. Freidman refers to these changes as reform wholesale. These changes were made in a relatively small number of countries including China, Russia, Mexico, and India. All of these countries understood one important thing; that an open and competitive market is essential for success in the flat world.
Once a country has made wholesale reform, they are better able to make what Freidman refers to as retail reform. This is when countries can upgrade their infrastructure, education, and governance. Countries climb out of poverty when their people have the abilities and resources to start businesses, raise capital, and compete. These changes sound relatively simple and in theory can be accomplished by any developing country, Ireland being the perfect example. However, one barrier to change has been culture. Two important factors determine how well you country can adapt how open it is to foreign influence and how inward the culture is. For obvious reason a country open to foreign ideas and influence have the potential to thrive in the flat world. In addition, while it is important to maintain a cultural identity and investment in your culture it is also important to be open to growth and development.