You probably remember the buzz. Back in the mid-2000s, you couldn't walk into an airport bookstore without seeing that blue cover. Thomas Friedman’s book basically argued that the global playing field was being leveled. He said the world is flat because technology, fiber-optic cables, and workflow software allowed a guy in Bangalore to compete directly with a guy in Boston.
It felt revolutionary at the time.
But honestly? Look around. In 2026, the idea that "the world is flat" feels both incredibly prophetic and kind of naive. We’ve seen the rise of remote work and the total digitalization of the global economy, sure. But we’ve also seen the return of massive trade barriers, "friend-shoring," and digital iron curtains. It’s complicated.
What it actually means when people say the world is flat
Friedman wasn't talking about geography. He’s not a flat-earther. When he wrote that the world is flat, he was describing "Globalization 3.0."
Think back to the early 2000s. The dot-com bubble had burst, but it left behind a massive gift: miles and miles of undersea fiber-optic cables. This infrastructure meant that suddenly, data could travel across the ocean for basically zero cost. This was the "flattening" force.
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It changed everything.
Suddenly, a company in Ohio could outsource its accounting to India or its customer service to the Philippines without skipping a beat. Friedman identified ten "flatteners." These included things like the fall of the Berlin Wall, the rise of Netscape (remember that?), and the advent of "uploading" (think Wikipedia and open-source software).
He argued that these forces wiped out the traditional advantages of developed nations. If you had an internet connection and a brain, you were in the game. You didn't need to be in New York or London anymore.
But there's a catch.
While the tools for competition became more accessible, the actual outcomes didn't necessarily stay flat. We saw the rise of "superstar cities" and "superstar firms." Instead of wealth spreading out evenly across the globe, it often concentrated in specific tech hubs like Silicon Valley, Shenzhen, or Bangalore.
The Ten Flatteners (A Quick Reality Check)
Friedman's list was specific. He talked about "The Steroids"—mobile, personal, and virtual technologies that amplified all the other flatteners. He talked about supply-chaining, using Walmart as the primary example of how items could be tracked from a factory in China to a shelf in Arkansas in real-time.
He also highlighted "Informing," which was his way of describing what Google does.
Is it still true? Sorta.
We have more access to information than ever, but that information is now siloed by algorithms. The "flat" world Friedman envisioned was one of universal access and shared understanding. Instead, we got Echo Chambers.
Why the world is flat theory is getting pushed back
Geopolitics happened.
For a while, it seemed like the "Dell Theory of Conflict Prevention" was right. That was Friedman’s idea that no two countries that are both part of a major global supply chain, like Dell’s, will ever fight a war against each other because the economic cost is too high.
Then came the 2020s.
We saw that economic interdependence doesn't always stop conflict; sometimes, it’s used as a weapon. Russia’s invasion of Ukraine and the subsequent sanctions showed that the "flat" world could be broken apart very quickly. Now, we talk about "de-coupling."
The world isn't flat; it’s bumpy.
Geography still matters (a lot)
If the world were truly flat, it wouldn't matter where you lived. But it does. If you’re a software engineer in San Francisco, you’re still likely to make way more money and have more opportunities than an equally talented engineer in a small village in South America.
Why? Because of "agglomeration effects."
That’s a fancy way of saying that talent likes to hang out with other talent. Innovation doesn't just happen over Zoom; it happens in coffee shops, at bars, and in hallways. The physical world refused to be flattened by the digital one.
Then there’s the issue of the "Digital Divide."
While billions are online, billions still aren't. In many parts of the world, the internet is slow, censored, or prohibitively expensive. For those people, the world is anything but flat. It’s a series of walls and hurdles.
The role of AI in flattening (or un-flattening) the world
Fast forward to today. Generative AI is the new flattener.
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If the first wave was about moving data, and the second was about moving services, this third wave is about moving intelligence. AI allows a small startup in Estonia to produce code or content that used to require a team of fifty people.
It’s the ultimate "force multiplier."
But again, look at who owns the AI. The "flatness" is being challenged by the fact that the most powerful AI models are owned by a handful of companies in one or two countries. This creates a new kind of verticality.
It’s a paradox.
The tools are becoming more "flat" and accessible, but the power derived from those tools is becoming more concentrated. If you're a business owner, you have to navigate this. You can hire talent from anywhere (flat), but you’re increasingly dependent on a few massive tech platforms to reach your customers (not flat).
Actionable insights for a "bumpy" world
So, what do you actually do with this? If you’re a professional or a business owner, you can’t just assume the world is a level playing field. You have to play the bumps.
First, diversify your "local" presence. Even if you operate globally, you need deep roots in specific markets. Regional regulations, like the GDPR in Europe or specific AI laws in the US and China, mean you can't have a one-size-fits-all global strategy anymore.
Second, invest in "un-flattenable" skills. Anything that can be easily digitized and shipped overseas will be. What can't be shipped? Deep empathy, physical presence, complex local networking, and high-level strategy that requires cultural nuance. Those are your moats.
Third, leverage the flat tools to build a vertical advantage. Use the global talent pool. Use the AI. Use the cloud infrastructure. But use them to build something that has "weight" in the real world—a brand, a community, or a proprietary dataset.
Friedman’s "the world is flat" was a brilliant observation of a specific moment in time. It correctly identified the trend of connectivity that defines our era. But the world fought back. Today, success belongs to those who can use the flat digital world to navigate the very bumpy physical and political one.
Maximize your global reach through digital platforms, but never ignore the reality that geography, culture, and local laws are stronger than they've been in decades. Build your career or business on the assumption that while the internet connects us, the world still has edges. Focus on creating value that isn't just a commodity in a global marketplace, but a specialized solution for a specific, physical reality.