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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 
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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 that 
the frictions; barriers; and values that restrain outsourcing should be maintained; 
maybe even strengthened。 But from the point of view of Indians; fairness; justice; 
and their own aspirations demand that those same barriers and sources of friction 
be removed。 In the flat world; one person's economic liberation could be another's 
unemployment。 
India versus Indiana: Who Is Exploiting Whom? 


Consider this case of multiple identity disorder。 In 2003; the state of Indiana put 
out to bid a contract to upgrade the state's computer systems that process 
unemployment claims。 Guess who won? Tata 
206 
America International; which isthe U。S。…based subsidiary ofIndia's Tata Consultancy 
Services Ltd。 Tata's bid of 15。2 million came in 8。1 million lower than that of 
its closest rivals; the New York…based companies Deloitte Consulting and Accenture 
Ltd。 No Indiana firms bid on the contract; because it was too big for them to handle。 
In other words; an Indian consulting firm won the contract to upgrade the unemployment 
department of the state of Indiana! You couldn't make this up。 Indiana was outsourcing 
the very department that would cushion the people of Indiana from the effects of 
outsourcing。 Tata was planning to send some sixty…five contract employees to work 
in the Indiana Government Center; alongside eighteen state workers。 Tata also said 
it would hire local subcontractors and do some local recruiting; but most workers 
would come from India to do the computer overhauls; which; once completed; were 
〃supposed to speed the processing of unemployment claims; as well as save postage 
and reduce hassles for businesses that pay unemployment taxes;〃 the Indianapolis Star 
reported on June 25; 2004。 You can probably guess how the story ended。 〃Top aides 
to then…Gov。 Frank O'Bannon had signed off on the politically sensitive; four…year 
contract before his death 'on' September 13; '2003';〃 the Star reported。 But when 
word of the contract was made public; Republicans made it a campaign issue。 It became 
suc

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