In his book The World is Flat Thomas Friedman argues, based on personal research, travel, conversation and reflection, that there have been three eras of globalization:
1. First Era - Up to 1800, when countries become globally integrated.This is Globalization 1.0 (1492 to 1800) and it shrank the world from a size large to a size medium, and the dynamic force in that era was countries globalizing for resources and imperial conquest (Friedman, 2005).
2. Second Era - 1800-2000, when companies become globally integrated. This is Globalization 2.0 (1800 to 2000) when it shrank the world from a size medium to a size small, and it was spearheaded by companies globalizing for markets and labor (Friedman, 2005).
3. Third Era - 2000 to the present, when individuals become globally integrated. This is Globalization 3.0 (which started around 2000) is shrinking the world from a size small to a size tiny and flattening the playing field at the same time (Friedman, 2005). Alas equating flattening the playing field to ‘the world is flat’.
Economist Pankaj Ghemawat argues that we are not as globalized as we think we are. And, actually, the world isn't flat! While the data is a bit dated now, you will see why he disagrees with Friedman. On his blog, Ghermawat provides the following data to support his claims that we are not as globalized as we think or as Friedman suggests:
1. The average person does just 1% to 2% of their reading on foreign news sites.
2. Typically, between 10% and 15% of your Facebook friends are from another country than the one in which you live.
3. Just 3% of the world’s population are first-generation immigrants.
4. 2% of university students are studying in countries where they are not citizens.
5. Ghemawat says that people may even overestimate the effects of globalization on the environment. While people estimate that international shipping and air transport account for 20% of all energy-related CO2 emissions, he says many would be surprised to find that international shipping accounts for 2% to 3% of emissions, while air freight accounts for just 1% to 2%. [Ghemawat.com]
6. Overstating our levels of globalization can create problems where they don’t actually exist: In France, where tensions run high over immigration, people guesstimate that immigrants make up 24% of the population. But the real figure is actually 8%
7. Americans greatly overestimate the percent of the federal budget that is devoted to foreign aid. In a study published last year, the median estimate was 25% percent, with survey respondents saying that 10% would be an “appropriate” amount. However, in reality, just 1% of the U.S. federal budget goes to foreign aid.