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Cambridge Journal of Regions, Economy and Society 2008, 1, 343349

doi:10.1093/cjres/rsn023

The world is not at: putting globalization in its place

Susan Christophersona, Harry Garretsenb and Ron Martinc


a
Department of City and Regional Planning, Cornell University, 129 Sibley, Ithaca, NY 14853,
USA. smc23@cornell.edu
b
Faculty of Economics and Business, University of Groningen, PO Box, 800, 9700 AV Groningen,

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The Netherlands. j.h.garretsen@rug.nl
c
Department of Geography, University of Cambridge, Downing Place, Cambridge CB2 3EN, UK.
rlm1@cam.ac.uk

Globalization and the at earthers quences of globalization (e.g., Crafts and Venables,
2003; Gray, 1998; ORourke and Williamson, 1999;
Since the 1990s, the term globalization has become
an increasingly prominent feature of economic, so- Steingart, 2008; Stiglitz, 2002, 2006; World Bank,
cial and political discourse, not just within the aca- 2002, 2008).
demic community, but also in the popular press and One of the contested aspects of globalization
in the world of policy making. It is, however, a notion concerns its geographies and especially whether
that is far from straightforward. Definitions and globalization is rendering the significance of loca-
debates have proliferated around the syndrome of tion and place redundant and irrelevant. Several
processes and outcomes alleged to characterize writers have argued that globalizationespecially
globalization.1 Everyone agrees we live in a more as driven by the revolution in information and com-
globalized world, but views differ as to what this munications technologies (ICT)marks the end
means and whether it is a trend for good or ill. Those of geography (OBrien, 1992), the onset of the
on the neoliberal right are typically pro-globalization, death of distance (Cairncross, 1997), the emer-
arguing that it has opened up markets across the gence of a borderless world (Ohmae, 1995), of
globe, that it is a force for spreading opportunity de-territorialization or supra-territorialisation
and wealth across nations and that the intensifica- (Scholte, 2000) and the vanishing of distance
tion of competition it engenders stimulates innova- (Reich, 2001). The most provocativecertainly
tion and productivity. Those on the political left the most colourfulof these claims is Thomas
tend to be anti-globalization, arguing it is a process Friedmans recent pronouncement that as a conse-
dominated by global corporations that have be- quence of globalization, the world is flat (Friedman,
come more powerful than nation states, that it 2006). He contends that the ICT revolution, the
increases inequality within advanced economies deregulation of markets by states and increasing
and undermines the ability of the worlds poorer economic integration have contributed to a marked
countries to improve social welfare or protect their timespace compression of economic processes. The
natural environment. To this day, debates continue alleged result is that there is no longer any friction of
over the causes, historical antecedents and conse- distance in economic relationships.

The Author 2008. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.
For permissions, please email: journals.permissions@oxfordjournals.org
Christopherson, Garretsen and Martin

It is clearly beyond the purpose of our editorial to tening of the world. The convergence of the ten
give a full-fledged summary of Thomas Friedmans flatteners had created a whole new platform.
book. Briefly stated, in the The World is Flat This platform now operates without regard to
Friedman identifies up to 10 structural changes or, geography, distance, time, and, in the near fu-
in his terminology, 10 flatteners in the world econ- ture, even language. Going forward, this plat-
omy that have all come into play over the past two form is going to be at the centre of everything
decades (see Table 1). He argues that these changes, (Friedman, 2006, p. 205).
driven by the revolution in information and com-
munications technologies, will ensure that global- The basis of Friedmans flat world thesis,
ization will have a flattening impact on the world then, is that there now exists a global information
economy in the years to come: communications platform that transcends distance,
place and geography, a platform that connects users

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It is my contention that the fall of the Berlin anywhere, irrespective of their location. Yet even if
Wall, the rise of the PC, Netscape, work flow, the world is becoming flatter in this sense, it by no
outsourcing, offshoring, uploading, insourcing, means follows that the global economy more gen-
supply-chaining, in-forming, and the steroids erally is becoming a flatter landscape. The closest
reinforced one another, like complementary Friedman comes to acknowledging this is when he
goods. These flattening forces needed time to admits that:
start to work together in a mutually enhancing
fashion. That tipping point was reached some- not everyone has access to this new platform, this
where around the year 2000 when the ten flat- new playing field.. When I say the world is
teners converged on such a scale and with such being flattened, I dont mean we are all becoming
intensity that millions of people on different equal. What I do mean is that more people in
continents suddenly started to feel that some- more places now have the power to access the
thing. was new. They couldnt always de- flat world platformto connect, compete, col-
scribe quite what was happening, but by 2000 laborate. (Friedman, 2006, pp.205206).
they sensed that they were in touch with people
theyd never been in touch with before, were Beyond this statement, however, Friedman has
being challenged by people who had never chal- relatively little to say about whether the advent of
lenged them before, were competing with peo- a flat platform is likely to reduce or intensify
ple with whom they had never competed socio-economic inequalities among groups, regions
before. What they were feeling was the flat- or countries.

Table 1. Friedmans 10 forces that have flattened the world


1. The Fall of the Berlin Wall The beginning of the collapse of communism
2. The World Wide Web The advent of a new age of connectivity
3. Workflow software The integration and standardization of software
4. Uploading Internet-based dissemination of information
5. Outsourcing Of functions to other companies
6. Offshoring Of parts of a businesss operations to overseas locations
7. Supply chaining Horizontal collaboration regardless of borders
8. Insourcing Synchronized commerce solutions
9. In-forming Searching for knowledge
10. The steroids Computing, file-sharing, VoIP, videoconferencing

Source: Friedman (2006), Chapter 2.

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The world is not flat

Globalization and place the debates surrounding globalization (Dicken,


2004), they consistently emphasize that it is inher-
In fact, there is a sizable body of opinion and evi-
ently spatially uneven both with respect to its
dence that globalization is not flattening the world
causes and motive forces and its implications for
economy but accentuating its unevenness. It is even
places, regions and countries (Harvey, 2006).
arguable whether the global ICT platform, as
There is, then, an important debate to be had as to
Friedman calls it, is itself flat. Indeed, both the ar-
whether, and to what extent, the sort of processes
chitecture and the flows of Internet and telephonic
identified by Friedman as flatteners are promoting
communication are highly spatially skewed and
the spatial concentration or dispersion of economic
concentrated, being overwhelmingly focussed on growth and wealth. As Leamer (2007) rightly
and dominated by major global cities (see, e.g. stresses in his extensive review of Friedmans book,
www.telegeography.com). In this respect, not all the claim (or slogan) that the world is flat un-
socio-economic groups or local communities have

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doubtedly has a deliberately contentious geograph-
equal access to or control over this platform. Be- ical ring to it.2 Leamer acknowledges that the
yond this, what matters is whether there are forces revolutions in ICT and related systems of socio-
that channel the benefits of access to and use of economic interaction and exchange increase the
this platform disproportionately to particular socio- freeness of trade and promote the production and
economic groups and particular places (cities, regions transmission of information and knowledge. In
and countries). Even having equal access to a ubiqui- short, they increase economic integration. Yet, as
tous and flat ICT playing field does not imply an Leamer demonstrates, it is possible, analytically, to
equal outcome among the playersfirms, work- show that increasing economic integration can lead
ers, cities, regions and countriesin terms of to spatial agglomeration of economic activity rather
wealth creation, prosperity and welfare. And some than to a geographically flatter pattern. For their
actors and networks have more access to informa- part, while accepting that the process of globaliza-
tion than others (Leamer and Storper, 2001, Storper tion may annihilate space and distance, economic
and Venables, 2004). Key factors determining the geographers argue that it also heightens the role
production of wealth (investment capital, innova- played by place and especially place-specific
tion capacity, talented labour) are still very un- socio-cultural-
evenly distributed among places. Indeed, those institutional factors (including face-to-face contact,
who contest the world is flat hypothesis claim that localized social networks of knowledge spillover
the geography of the global economy contains a dy- and other untraded interdependencies) in fostering
namic of centralization and agglomeration as well and sustaining the spatial agglomeration of economic
as one of dispersion. These authors claim that the activitiesparticularly the creative and cultural in-
spatial agglomeration of economic activity, includ- dustries that now dominate our major cities. In a sim-
ing key businesses, talented labour and innovation ilar vein, Porter (1998) has argued that in the global
and creativity, is actually increasing and that the economy, competitive advantage is becoming more
global economy is now being driven by key cities rather than less place dependent:
and mega city-regions (Sassen, 2000). According to
these observers, rather than becoming flatter, the In a global economywhich boasts rapid trans-
global economic landscape is becoming lumpier. portation, high speed communications and acces-
Further, while globalization has enabled and in- sible marketsone would expect location to
volved the rapid rise of new national economies diminish in importance. But the opposite is true.
(notably in the BRIC countries), it has simulta- The enduring competitive advantages in a global
neously exposed other countries to worsening pov- economy are often heavily localised, arising
erty (Stiglitz, 2002, 2006; World Bank, 2002). from concentrations of highly specialised skills
Though geographers have been slow to enter into and knowledge, institutions, rivalry, related

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Christopherson, Garretsen and Martin

businesses, and sophisticated customers (Porter, [globalisation] does not require that economic
1998, p. 90). life throughout the world be equally and inten-
sively integrated. A universal state of equal in-
From a theoretical perspective, a priori it is not tegration in world-wide economic activity is
clear how the flatteners that Friedman talks about precisely what globalisation is not. On the con-
will affect the growth and allocation of economic trary, the increased interconnection of economic
activity across space. In modern location theory of activity throughout the world accentuates uneven
the sort found in the so-called new economic ge- development. (Gray, 1998, pp. 5556).
ography (new spatial economics), the answer to
the question of how innovations and changes in
organizational behaviour like those enumerated
by Friedman will change the economic geography
The world is not at

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in the real world is that it depends. It depends on This issue of the Cambridge Journal of Regions,
the exact nature of the changes concerned, the Economic and Society brings together several
(initial) level of economic integration, the initial papers stemming from various disciplines that,
spatial configuration of the economic landscape while differing in their specific focus, take up the
and the geographical scale being considered. issue of the continuing importance of location and
Globalization as approximated by increasing eco- place in a globalizing world. What they show is that
nomic integration can lead to a more agglomerated the terrain of wealth creation, innovation and trade
or uneven world as well as to more spreading or remains distinctly bumpy. The papers argue that
a more even spatial distribution of economic ac- flatness is not the inevitable outcome of the forces
tivity (Baldwin, 2006; Crafts and Venables, 2003; that are driving the globalization process. To create
Krugman and Venables, 1995). Interestingly, some common ground, all the papers took Thomas
however, most such models tend to predict a geo- Friedmans highly influential book The World is
graphically uneven outcome. And at the other the- Flat as their point of departure. In doing so, and
oretical extreme, invoking the theoretical despite being critical of the book, the authors ac-
apparatus of (Marxian) political economy, geogra- knowledge that Friedmans central arguments call
phers such as Harvey (2006) see no reason why the for a serious response. What distinguishes this issue
increasing integration and interconnectedness of special is the breadth and (spatial) scope of the
the world economy should change the historical, analyses. This not only applies to the analytical
law-like tendency for capitalism to develop un- frameworks and methodologies used, ranging from
evenly geographically: international economics, urban and regional eco-
nomics, economic geography and Marxist political
Reducing the friction of distance, in short, economy, but also applies to the spatial scales cov-
makes capital more rather than less sensitive ered (global, national, regional, urban) and the rich-
to local geographical variations. The combined ness of the examples and empirical material
effect of freer trade and reduced transport costs deployed.
is not greater equality of power through the Based on both theory and empirics, most of the
evolving territorial division of labour, but grow- authors in this issue turn Friedmans flat hypothe-
ing geographical inequalities (Harvey, 2006, sis on its head and argue that it is as likely or even
pp. 100101). more likely that globalization will lead to a more
spiky or bumpy world: spiky, in the sense that
This seems to echo a similar point made earlier at various spatial scales the geographical alloca-
by Gray, albeit from a different ideological-cum- tion of economic activity is likely to become
theoretical position, in his critical account of glob- more uneven and more differentiated. This predic-
alization thinking: tion is not only made at the global level with

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The world is not flat

respect to between-country unevenness but also also show that distance, ranging from physical to
with respect to inequalities and disparities among mental distance, remains important, as well as dem-
city-regions. onstrating that despite the revolution in communi-
The first three papers deal with the theoretical cations, many countries still do not trade with each
foundations (or the lack thereof) of the world is flat other at all. Their message is that large parts of the
thesis. McCann (2008) carefully discusses how this world economy are still rather empty. Switching
hypothesis should be seen from the perspective of to regions, Florida et al. (2008) use a new, if pro-
location theory and dismisses the claim that the vocative, data technique to show how the new
forces mentioned by Friedman could only work in global economy consists of a fairly limited num-
the direction of rendering geography less important. ber of mega-regions that make up for the bulk of
There are sound theoretical arguments to conclude the globes GDP, population and employment.
that both a more even and an uneven spatial allo- These regions often include (parts of) different

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cation are possible: it indeed depends. McCann (see countries and their rise not only suggests that
also McCann, 2005) also points out that one should the world is becoming more spiky (instead of flat)
be very careful in distinguishing among various al- but also poses important questions about (re-
leged structural changes: while the actual transport gional) economic policy. The final paper by Van
costs of shipping goods or information may have der Ploeg and Poelhekke (2008) moves attention
fallen spectacularly, this is not necessarily true for to mega-cities and to urban growth, particularly
the transaction costs involved in making or setting up in the developing world. Here too, and in line
a transaction. Rodriguez-Pose and Crescenzi (2008) with recent evidence by the World Bank (2008),
come to similar conclusions. They survey and dis- the dominant trend is one of increased urbaniza-
cuss modern location theory to see whether and how tion: the integration of developing countries into
the flat prediction can be backed by theory. In the the world economy seems to go along with a sharp
end, the authors conclude that such a theoretical increase in the degree of spatial unevenness
foundation is hard to come by. The third paper by within such nations.
Cox (2008) approaches the topic from a somewhat After reading the seven papers that make up
different angle. Applying a Marxist-inclined political this issue of the Cambridge Journal of Regions,
economy perspective, Cox casts the flatteners iden- Economic and Society, one could argue that there
tified by Friedman within a long-term analysis where are two basic and very fundamental problems with
globalization and its drivers are seen as the latest Friedmans book. And this criticism also applies to
phase in a never-ending attempt by capital in order other death of distance claims that foretell the end
to use space in new-and uneven - ways in order to of (economic) geography. The first problem is
sustain profitable accumulation. a conceptual or theoretical one. The notion that
The remaining four papers, though not ignoring the changes or flatteners identified by Friedman
theory, explicitly or implicitly take on Friedmans naturally lead to a flat or geography-free world is
challenge that the world is flat by looking at the misleading. It is very much an open question what
empirical evidence. They do so for different spatial the impact of these changes will be. The second and
scales and locations. Brakman and Van Marrewijk related problem is that systematic empirical evi-
(2008) look at the flat-world hypothesis from the dence is needed to back up Friedmans claims,
point of view of the global economy. They do not but the book simply does not provide this kind of
find much evidence of economic convergence be- evidence. Taken together, the papers in this issue of
tween countries at the global level. In addition, they the journal go to the heart of this criticism by
do not find that the importance of distance in cross- addressing both problems. Having said this, the
country economic relationships is falling over time. goal is not debunk Friedmans ideas outright. On
The most prominent relationship in this respect is the contrary, as stated above, his is an important
(bilateral) international trade. Linders et al. (2008) book that calls for a serious response. Many of

347
Christopherson, Garretsen and Martin

the changes and forces that are emphasized in Historical Perspective, pp. 323364. Chicago, IL:
throughout The World is Flat are clearly very rele- University of Chicago Press.
Dicken, P. (2004) Geographers and globalisation:
vant and pose important (new) challenges for
another missed boat? Transactions, Institute of British
researchers and policy makers. Friedman is correct, Geographers, 29: .
for example when he points out the importance of Florida, R., Gulden, T. and Mellander, C. (2008) The rise
changes like the rise of India or China, the spatial of the mega-regions. Cambridge Journal of Regions,
fragmentation of the production process through Economy and Society, 1: 459476.
Friedman, T. (2006) The World is Flat. London: Penguin
offshoring or the lowering of transaction costs that
Books.
makes more and more services tradable. Rather, the Gray, J. (1998) False Dawn: The Delusions of Global
message that comes through from the contributions Capitalism. London: Granta Publications.
that follow is two-fold: Friedman is wrong to equate Harvey, D. (2006) Spaces of Global Capitalism: Towards
the emergence of a world of increasing inter- a Theory of Uneven Geographical Development.
London: Verso.

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connectedness with a flat global economy and
Krugman, P. R. and Venables, A. J. (1995) Globalization
the empirical evidence does not in any case back and the inequality of nations. The Quarterly Journal of
up the idea that the global economy is becoming Economics, 110: 857880.
flat. Leamer, E. (2007) A flat world, a level playing field,
a small world after all, or none of the above: a review
of Thomas L. Friedmans the World is Flat. Journal of
Endnotes Economic Literature, XLV: 83126.
1
In many ways globalization is an archetypal fuzzy or Leamer, E. and Storper, M. (2001) The Geography of the
Internet Age, Working Paper 8450, National Bureau of
chaotic concept, used in different ways by different
Economic Research, Cambridge, MA.
authors and conflating several different processes and Linders, G. J., Burger, M. and van Oort, F. G. (2008) A
outcomes. It is often as much a rhetoric device as it is rather empty world: the many faces of distance and the
an analytical concept. Such fuzzy concepts abound in the persistent resistance to international trade. Cambridge
social sciences, two other prominent examples being the Journal of Regions, Economy and Society, 1: 439458.
notions of cluster and regional competitiveness (see Markusen, A. (2003) Fuzzy concepts, scanty evidence,
Markusen, 2003; Martin and Sunley, 2003). policy distance: the case for rigour and policy rele-
2 vance in critical regional studies. Regional Studies,
Of course, the very title of the book, one assumes, was
37: 701719.
intended to be sensationalist, as is often the case with Martin, R. and Sunley, P. (2003) Deconstructing clusters:
journalistic airport books. Friedmans sequel, Hot, Flat chaotic concept or policy panacea? Journal of
and Crowded: Why We Need a Green Revolution, and Economic Geography, 3: 535.
How it can Renew America (2008), is in the same genre. McCann, P. (2005) Transport costs and new economic ge-
ography. Journal of Economic Geography, 5: 305318.
McCann, P. (2008) Globalization and economic geogra-
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