The Lexus and the Olive Tree by Thomas Friedman

Essay text:

Friedman is quoted as saying that globalization "is the inevitable 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, and deeper, cheaper than ever before." It is the idea of conforming to globalization that Friedman continues on to his next important idea, the "golden straitjacket." Friedman's concept of the "golden straitjacket" is important because, as Friedman says in his own words, "to fit in the golden straitjacket a country must either adopt, or be seen as moving toward, the following golden rules: making the private sector the primary engine of its economic growth, maintaining a low rate of inflation and price stability, shrinking the size of its state bureaucracy, maintaining as close to a balanced budget as possible, if not a surplus, eliminating and lowering tariffs on goods, removing restrictions on foreign investment, getting rid of quotas and domestic monopolies, increasing exports, privatizing state owned industries and utilities, deregulating capital markets, making currencies convertible, opening its industries, stock, and bond markets to direct foreign ownership and investment, deregulating its economy to promote as much domestic competition as possible, eliminating government corruption, subsidies and kickbacks as much as possible, opening banking and telecommunications systems to private ownership and competition, and allowing its citizens to choose from an array of competing pension options and foreign run pension and mutual funds...