The Lexus and the Olive Tree: Understanding Globalization

A brilliant investigation of globalization, the most significant socioeconomic trend in the world today, and how it is affecting everything we do-economically, politically, and culturally-abroad and at home.

As foreign affairs columnist for The New York Times, Thomas L. Friedman crisscrosses the globe talking with the world's economic and political leaders, and reporting, as only he can, on what he sees. Now he has used his years of experience as a reporter and columnist to produce a pithy, trenchant, riveting look at the worldwide market forces that are driving today's economies and how they are playing out both internationally and locally.

Globalization is the technologically driven expression of free-market capitalism, and as such is essentially an American creation. It has irrevocably changed the way business is done and has raised living standards throughout the world. But powerful local forces-of religion, race, ethnicity, and cultural identity-are in competition with technology for the hearts and minds of their societies. Finding the proper balance between the Lexus and the olive tree is the great game of globalization-and the ultimate theme of Friedman's challenging, provocative book, essential reading for all who care about how the world really works.

1100667089
The Lexus and the Olive Tree: Understanding Globalization

A brilliant investigation of globalization, the most significant socioeconomic trend in the world today, and how it is affecting everything we do-economically, politically, and culturally-abroad and at home.

As foreign affairs columnist for The New York Times, Thomas L. Friedman crisscrosses the globe talking with the world's economic and political leaders, and reporting, as only he can, on what he sees. Now he has used his years of experience as a reporter and columnist to produce a pithy, trenchant, riveting look at the worldwide market forces that are driving today's economies and how they are playing out both internationally and locally.

Globalization is the technologically driven expression of free-market capitalism, and as such is essentially an American creation. It has irrevocably changed the way business is done and has raised living standards throughout the world. But powerful local forces-of religion, race, ethnicity, and cultural identity-are in competition with technology for the hearts and minds of their societies. Finding the proper balance between the Lexus and the olive tree is the great game of globalization-and the ultimate theme of Friedman's challenging, provocative book, essential reading for all who care about how the world really works.

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The Lexus and the Olive Tree: Understanding Globalization

The Lexus and the Olive Tree: Understanding Globalization

by Thomas L. Friedman
The Lexus and the Olive Tree: Understanding Globalization

The Lexus and the Olive Tree: Understanding Globalization

by Thomas L. Friedman

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Overview

A brilliant investigation of globalization, the most significant socioeconomic trend in the world today, and how it is affecting everything we do-economically, politically, and culturally-abroad and at home.

As foreign affairs columnist for The New York Times, Thomas L. Friedman crisscrosses the globe talking with the world's economic and political leaders, and reporting, as only he can, on what he sees. Now he has used his years of experience as a reporter and columnist to produce a pithy, trenchant, riveting look at the worldwide market forces that are driving today's economies and how they are playing out both internationally and locally.

Globalization is the technologically driven expression of free-market capitalism, and as such is essentially an American creation. It has irrevocably changed the way business is done and has raised living standards throughout the world. But powerful local forces-of religion, race, ethnicity, and cultural identity-are in competition with technology for the hearts and minds of their societies. Finding the proper balance between the Lexus and the olive tree is the great game of globalization-and the ultimate theme of Friedman's challenging, provocative book, essential reading for all who care about how the world really works.


Product Details

ISBN-13: 9781429994286
Publisher: Farrar, Straus and Giroux
Publication date: 06/15/2000
Sold by: Macmillan
Format: eBook
Pages: 469
Sales rank: 369,860
File size: 883 KB

About the Author

About The Author

Thomas l. Friedman's now-classic From Beirut to Jerusalem won the 1988 National Book Award and established him as America's leading interpreter of international affairs. Twice a Pulitzer Prize winner for his reportage, he lives in Washington, D.C.


Thomas L. Friedman is an internationally renowned author, reporter, and columnist-the recipient of three Pulitzer Prizes and the author of six bestselling books, among them From Beirut to Jerusalem and The World Is Flat.

He was born in Minneapolis in 1953, and grew up in the middle-class Minneapolis suburb of St. Louis Park. He graduated from Brandeis University in 1975 with a degree in Mediterranean studies, attended St. Antony's College, Oxford, on a Marshall Scholarship, and received an M.Phil. degree in modern Middle East studies from Oxford. After three years with United Press International, he joined The New York Times, where he has worked ever since as a reporter, correspondent, bureau chief, and columnist. At the Times, he has won three Pulitzer Prizes: in 1983 for international reporting (from Lebanon), in 1988 for international reporting (from Israel), and in 2002 for his columns after the September 11th attacks.

Friedman's first book, From Beirut to Jerusalem, won the National Book Award in 1989. His second book, The Lexus and the Olive Tree: Understanding Globalization (1999), won the Overseas Press Club Award for best book on foreign policy in 2000. In 2002 FSG published a collection of his Pulitzer Prize-winning columns, along with a diary he kept after 9/11, as Longitudes and Attitudes: Exploring the World After September 11. His fourth book, The World Is Flat: A Brief History of the Twenty-first Century (2005) became a #1 New York Times bestseller and received the inaugural Financial Times/Goldman Sachs Business Book of the Year Award in November 2005. A revised and expanded edition was published in hardcover in 2006 and in 2007. The World Is Flat has sold more than 4 million copies in thirty-seven languages.

In 2008 he brought out Hot, Flat, and Crowded, which was published in a revised edition a year later. His sixth book, That Used to Be Us: How American Fell Behind in the World We Invented and How We Can Come Back, co-written with Michael Mandelbaum, was published in 2011.

Thomas L. Friedman lives in Bethesda, Maryland, with his family.

Hometown:

Washington, D.C. area

Date of Birth:

July 20, 1953

Place of Birth:

Minneapolis, Minnesota

Education:

B.A. in Mediterranean Studies, Brandeis University, 1975; M.A. in Modern Middle East Studies, Oxford University, 1978

Read an Excerpt

The Lexus and the Olive Tree

Understanding Globalization


By Thomas L. Friedman

Farrar, Straus and Giroux

Copyright © 2000 Thomas L. Friedman
All rights reserved.
ISBN: 978-1-4299-9428-6



CHAPTER 1

The New System


What was it that Forrest Gump's mama liked to say? Life is like a box of chocolates: you never know what you're going to get inside. For me, an inveterate traveler and foreign correspondent, life is like room service — you never know what you're going to find outside your door.

Take for instance the evening of December 31, 1994, when I began my assignment as the foreign affairs columnist for The New York Times. I started the column by writing from Tokyo, and when I arrived at the Okura Hotel after a long transpacific flight, I called room service with one simple request: "Could you please send me up four oranges." I am addicted to citrus and I needed a fix. It seemed to me a simple enough order when I telephoned it in, and the person on the other end seemed to understand. About twenty minutes later there was a knock at my door. A room service waiter was standing there in his perfectly creased uniform. In front of him was a cart covered by a starched white tablecloth. On the tablecloth were four tall glasses of fresh-squeezed orange juice, each glass set regally in a small silver bowl of ice.

"No, no," I said to the waiter, "I want oranges, oranges — not orange juice." I then pretended to bite into something like an orange.

"Ahhhh," the waiter said, nodding his head. "O-ranges, o-ranges."

I retreated into my room and went back to work. Twenty minutes later there was another knock at my door. Same waiter. Same linen-covered room service trolley. But this time, on it were four plates and on each plate was an orange that had been peeled and diced into perfect little sections that were fanned out on a plate like sushi, as only the Japanese can do.

"No, no," I said, shaking my head again. "I want the whole orange." I made a ball shape with my hands. "I want to keep them in my room and eat them for snacks. I can't eat four oranges all cut up like that. I can't store them in my mini-bar. I want the whole orange."

Again, I did my best exaggerated imitation of someone eating an orange.

"Ahhhh," the waiter said, nodding his head. "O-range, o-range. You want whole orange."

Another twenty minutes went by. Again there was a knock on my door. Same waiter. Same trolley, only this time he had four bright oranges, each one on its own dinner plate, with a fork, knife and linen napkin next to it. That was progress.

"That's right," I said, signing the bill. "That's just what I wanted."

As he left the room, I looked down at the room service bill. The four oranges were $22. How am I going to explain that to my publisher?

But my citrus adventures were not over. Two weeks later I was in Hanoi, having dinner by myself in the dining room of the Metropole Hotel. It was the tangerine season in Vietnam, and vendors were selling pyramids of the most delicious, bright orange tangerines on every street corner. Each morning I had a few tangerines for breakfast. When the waiter came to get my dessert order I told him all I wanted was a tangerine.

He went away and came back a few minutes later.

"Sorry," he said, "no tangerines."

"But how can that be?" I asked in exasperation. "You have a table full of them at breakfast every morning! Surely there must be a tangerine somewhere back in the kitchen?"

"Sorry." He shook his head. "Maybe you like watermelon?"

"O.K.," I said, "bring me some watermelon."

Five minutes later the waiter returned with a plate bearing three peeled tangerines on it.

"I found the tangerines," he said. "No watermelon."

Had I known then what I know now I would have taken it all as a harbinger. For I too would find a lot of things on my plate and outside my door that I wasn't planning to find as I traveled the globe for the Times.

Being the foreign affairs columnist for The New York Times is actually the best job in the world. I mean, someone has to have the best job, right? Well, I've got it. The reason it is such a great job is that I get to be a tourist with an attitude. I get to go anywhere, anytime, and have attitudes about what I see and hear. But the question for me as I embarked on this odyssey was: Which attitudes? What would be the lens, the perspective, the organizing system — the superstory — through which I would look at the world, make sense of events, prioritize them, opine upon them and help readers understand them?

In some ways my predecessors had it a little easier. They each had a very obvious superstory and international system in place when they were writing. I am the fifth foreign affairs columnist in the history of the Times. "Foreign Affairs" is actually the paper's oldest column. It was begun in 1937 by a remarkable woman, Anne O'Hare McCormick, and was originally called "In Europe," because in those days, "in Europe" was foreign affairs for most Americans, and it seemed perfectly natural that the paper's one overseas columnist would be located on the European continent. Mrs. McCormick's 1954 obituary in the Times said she got her start in foreign reporting "as the wife of Mr. McCormick, a Dayton engineer whom she accompanied on frequent buying trips to Europe." (New York Times obits have become considerably more politically correct since then.) The international system which she covered was the disintegration of balance-of-power Versailles Europe and the beginnings of World War II.

As America emerged from World War II, standing astride the world as the preeminent superpower, with global responsibilities and engaged in a global power struggle with the Soviet Union, the title of the column changed in 1954 to "Foreign Affairs." Suddenly the whole world was America's playing field and the whole world mattered, because every corner was being contested with the Soviet Union. The Cold War international system, with its competition for influence and supremacy between the capitalist West and the communist East, between Washington, Moscow and Beijing, became the superstory within which the next three foreign affairs columnists organized their opinions.

By the time I started the column at the beginning of 1995, though, the Cold War was over. The Berlin Wall had crumbled and the Soviet Union was history. I had the good fortune to witness, in the Kremlin, one of the last gasps of the Soviet Union. The day was December 16, 1991. Secretary of State James A. Baker III was visiting Moscow, just as Boris Yeltsin was easing Mikhail Gorbachev out of power. Whenever Baker had met Gorbachev previously, they had held their talks in the Kremlin's gold-gilded St. Catherine Hall. There was always a very orchestrated entry scene for the press. Mr. Baker and his entourage would wait behind two huge wooden double doors on one end of the long Kremlin hall, with Gorbachev and his team behind the doors on the other end. And then, by some signal, the doors would simultaneously open and each man would stride out and they would shake hands in front of the cameras in the middle of the room. Well, on this day Baker arrived for his meeting at the appointed hour, the doors swung open and Boris Yeltsin walked out, instead of Gorbachev. Guess who's coming to dinner! "Welcome to Russian soil and this Russian building," Yeltsin said to Baker. Baker did meet Gorbachev later in the day, but it was clear that power had shifted. We State Department reporters who were there to chronicle the event ended up spending that whole day in the Kremlin. It snowed heavily while we were inside, and when we finally walked out after sunset we found the Kremlin grounds covered in a white snow blanket. As we trudged to the Kremlin's Spassky Gate, our shoes crunching fresh tracks in the snow, I noticed that the red Soviet hammer and sickle was still flying atop the Kremlin flagpole, illuminated by a spotlight as it had been for some seventy years. I said to myself, "That is probably the last time I'll ever see that flag flying there." In a few weeks it was indeed gone, and with it went the Cold War system and superstory.

But what wasn't clear to me as I embarked upon my column assignment a few years later was what had replaced the Cold War system as the dominant organizing framework for international affairs. So I actually began my column as a tourist without an attitude — just an open mind. For several years, I, like everyone else, just referred to "the post–Cold War world." We knew some new system was aborning that constituted a different framework for international relations, but we couldn't define what it was, so we defined it by what it wasn't. It wasn't the Cold War. So we called it the post–Cold War world.

The more I traveled, though, the more it became apparent to me that we were not just in some messy, incoherent, indefinable post–Cold War world. Rather, we were in a new international system. This new system had its own unique logic, rules, pressures and incentives and it deserved its own name: "globalization." Globalization is not just some economic fad, and it is not just a passing trend. It is an international system — the dominant international system that replaced the Cold War system after the fall of the Berlin Wall. We need to understand it as such. If there can be a statute of limitations on crimes, then surely there must be a statute of limitations on foreign policy clichés. With that in mind, the "post–Cold War world" should be declared over. We are now in the new international system of globalization.


* * *

When I say that globalization has replaced the Cold War as the defining international system, what exactly do I mean?

I mean that, as an international system, the Cold War had its own structure of power: the balance between the United States and the U.S.S.R. The Cold War had its own rules: in foreign affairs, neither superpower would encroach on the other's sphere of influence; in economics, less developed countries would focus on nurturing their own national industries, developing countries on export-led growth, communist countries on autarky and Western economies on regulated trade. The Cold War had its own dominant ideas: the clash between communism and capitalism, as well as detente, nonalignment and perestroika. The Cold War had its own demographic trends: the movement of people from east to west was largely frozen by the Iron Curtain, but the movement from south to north was a more steady flow. The Cold War had its own perspective on the globe: the world was a space divided into the communist camp, the Western camp, and the neutral camp, and everyone's country was in one of them. The Cold War had its own defining technologies: nuclear weapons and the second Industrial Revolution were dominant, but for many people in developing countries the hammer and sickle were still relevant tools. The Cold War had its own defining measurement: the throw weight of nuclear missiles. And lastly, the Cold War had its own defining anxiety: nuclear annihilation. When taken all together the elements of this Cold War system influenced the domestic politics, commerce and foreign relations of virtually every country in the world. The Cold War system didn't shape everything, but it shaped many things.

Today's era of globalization is a similar international system, with its own unique attributes, which contrast sharply with those of the Cold War. To begin with the Cold War system was characterized by one overarching feature — division. The world was a divided-up, chopped-up place and both your threats and opportunities in the Cold War system tended to grow out of who you were divided from. Appropriately, this Cold War system was symbolized by a single word: the wall — the Berlin Wall. One of my favorite descriptions of that world was provided by Jack Nicholson in the movie A Few Good Men. Nicholson plays a Marine colonel who is the commander of the U.S. base in Cuba, at Guantánamo Bay. In the climactic scene of the movie, Nicholson is pressed by Tom Cruise to explain how a certain weak soldier under Nicholson's command, Santiago, was beaten to death by his own fellow Marines: "You want answers?" shouts Nicholson. "You want answers?" I want the truth, retorts Cruise. "You can't handle the truth," says Nicholson. "Son, we live in a world that has walls and those walls have to be guarded by men with guns. Who's gonna do it? You? You, Lieutenant Weinberg? I have a greater responsibility than you can possibly fathom. You weep for Santiago and you curse the Marines. You have that luxury. You have the luxury of not knowing what I know — that Santiago's death, while tragic, probably saved lives. And my existence, while grotesque and incomprehensible to you, saves lives. You don't want the truth because deep down in places you don't talk about at parties, you want me on that wall. You need me on that wall."

The globalization system is a bit different. It also has one overarching feature — integration. The world has become an increasingly interwoven place, and today, whether you are a company or a country, your threats and opportunities increasingly derive from who you are connected to. This globalization system is also characterized by a single word: the Web. So in the broadest sense we have gone from a system built around division and walls to a system increasingly built around integration and webs. In the Cold War we reached for the "hotline," which was a symbol that we were all divided but at least two people were in charge — the United States and the Soviet Union — and in the globalization system we reach for the Internet, which is a symbol that we are all increasingly connected and nobody is quite in charge.

This leads to many other differences between the globalization system and the Cold War system. The globalization system, unlike the Cold War system, is not frozen, but a dynamic ongoing process. That's why I define globalization this way: it is the inexorable integration of markets, nation-states and technologies to a degree never witnessed before — in a way that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper and cheaper than ever before, and in a way that is enabling the world to reach into individuals, corporations and nation-states farther, faster, deeper, cheaper than ever before. This process of globalization is also producing a powerful backlash from those brutalized or left behind by this new system.

The driving idea behind globalization is free-market capitalism — the more you let market forces rule and the more you open your economy to free trade and competition, the more efficient and flourishing your economy will be. Globalization means the spread of free-market capitalism to virtually every country in the world. Therefore, globalization also has its own set of economic rules — rules that revolve around opening, deregulating and privatizing your economy, in order to make it more competitive and attractive to foreign investment. In 1975, at the height of the Cold War, only 8 percent of countries worldwide had liberal, free-market capital regimes, and foreign direct investment at the time totaled only $23 billion, according to the World Bank. By 1997, the number of countries with liberal economic regimes constituted 28 percent, and foreign investment totaled $644 billion.

Unlike the Cold War system, globalization has its own dominant culture, which is why it tends to be homogenizing to a certain degree. In previous eras this sort of cultural homogenization happened on a regional scale — the Romanization of Western Europe and the Mediterranean world, the Islamification of Central Asia, North Africa, Europe and the Middle East by the Arabs and later the Ottomans, or the Russification of Eastern and Central Europe and parts of Eurasia under the Soviets. Culturally speaking, globalization has tended to involve the spread (for better and for worse) of Americanization — from Big Macs to iMacs to Mickey Mouse.

Globalization has its own defining technologies: computerization, miniaturization, digitization, satellite communications, fiber optics and the Internet, which reinforce its defining perspective of integration. Once a country makes the leap into the system of globalization, its elites begin to internalize this perspective of integration, and always try to locate themselves in a global context. I was visiting Amman, Jordan, in the summer of 1998 and having coffee at the Inter-Continental Hotel with my friend Rami Khouri, the leading political columnist in Jordan. We sat down and I asked him what was new. The first thing he said to me was: "Jordan was just added to CNN's worldwide weather highlights." What Rami was saying was that it is important for Jordan to know that those institutions which think globally believe it is now worth knowing what the weather is like in Amman. It makes Jordanians feel more important and holds out the hope that they will be enriched by having more tourists or global investors visiting. The day after seeing Rami I happened to go to Israel and meet with Jacob Frenkel, governor of Israel's Central Bank and a University of Chicago–trained economist. Frenkel remarked that he too was going through a perspective change: "Before, when we talked about macroeconomics, we started by looking at the local markets, local financial systems and the interrelationship between them, and then, as an afterthought, we looked at the international economy. There was a feeling that what we do is primarily our own business and then there are some outlets where we will sell abroad. Now we reverse the perspective. Let's not ask what markets we should export to, after having decided what to produce; rather let's first study the global framework within which we operate and then decide what to produce. It changes your whole perspective."


(Continues...)

Excerpted from The Lexus and the Olive Tree by Thomas L. Friedman. Copyright © 2000 Thomas L. Friedman. Excerpted by permission of Farrar, Straus and Giroux.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

Table of Contents

Contents

Title Page,
Copyright Notice,
Dedication,
Foreword to the 2000 Edition,
Opening Scene: The World Is Ten Years Old,
Part One: Seeing the System,
1. The New System,
2. Information Arbitrage,
3. The Lexus and the Olive Tree,
4. ... And the Walls Came Tumbling Down,
5. Microchip Immune Deficiency,
6. The Golden Straitjacket,
7. The Electronic Herd,
Part Two: Plugging into the System,
8. DOScapital 6.0,
9. Globalution,
10. Shapers, Adapters and Other New Ways of Thinking About Power,
11. Buy Taiwan, Hold Italy, Sell France,
12. The Golden Arches Theory of Conflict Prevention,
13. Demolition Man,
14. Winners Take All,
Part Three: The Backlash Against the System,
15. The Backlash,
16. The Groundswell,
Part Four: America and the System,
17. Rational Exuberance,
18. Revolution Is U.S.,
19. If You Want to Speak to a Human Being, Press 1,
20. There Is a Way Forward,
Acknowledgments,
Index,
Also by Thomas L. Friedman,
Additional Praise for The Lexus and the Olive Tree,
About the Author,
Copyright,

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