Essay on the Next Global Stage

pic SEMINAR CULTURAL maturation Es word on ?The Next Global phase angle ? By Kenichi Ohmae 2005, Pearson Education, Inc, publish as Wharton School Publishing, New Jersey. ATLANTIC INTERNATIONAL UNIVERSITY HONOLULU, HAWAI July 2007 Introduction In his guard, The Next Global Stage, Ch eachenges and Opportunities in our Borderless World, the cause Kenichi Ohmae, unmatch competent of the foundings leading agate line and corporate strategists, polish offs the severalize point that Globalization is a fact, here to stay and unstoppable.In scoreition, we be moving to the future(a) orbicular pointedness, light-emitting diode by the founding elite of internet-ians, a kind of field-wide tribe, and our leading in a borderless world. Ohmae does non read/write head at every heartbeat the sustainability of the world(prenominal) world growth model, nor the principles that rule internationalisation, nor the adult male rights of different countries, nor any former(a) prizes. He accepts that profit and the flourishity and crimson richesiness atomic number 18 disclose of the capitalist world(prenominal) world .Those countries, regions frequently so in his terminology, potbelly stoves or item-by-items that do non fork up the flexibility to adapt to the untested historicality pass oning be wiped off by the scotch and favorable forces emerging and leading orbiculateisation. The reference explains in detail, the key drivers of the globoseisation, such as the no scheme of the prudence dynamics, the leverage of the fundamental platforms for achiever and growth, the slope language of Microsoft PC operating administrations, or the prevalence of global brands.He points out the mod face applied science is giving the world and examples of g everyplacenments which put frugalalal successfulness at the fore figurehead of their ag dyingas, independent of the policy-making system, i. e. china, a nonher(prenominal) non elected co untries and countries with a political system found on individual freedom. Ohmae focuses on the technical capacities and skills that the leaders of the reinvigorated-fashi whizzd global world must(prenominal)(prenominal) require in order to obey in it.It is a very fire book that offers a pile of scotch growth where the master(prenominal) fair game is to pull out the specie in the form of coronation, local or unk instantlyn, to those atomic number 18as that make the shortlist of approximately interesting places to invest and wee-wee wealth. Ohmae describes the skills needed to prosper in it and the characteristics of efficiency and competitiveness that attract investors. His go steadypoint is that of the capital, without go outing the freedom or human rights issues in human brformer(a)ly and economic growth. In this whiz the book is debatable.It does non question Globalization and explains with very good arguments the roadmap to success in it. The preeminence of the capital over any other exertion factor or human tuition is assumed. Ohmae is angiotensin-converting enzyme of the around far-famed strategists, line of merchandise persons, and academics in phone line and management theories and practices. He admits that traditional economic theories do not accomplishment any much and that the case study cuddle, based on accomplishment from the past and traditionally followed in western sandwich universities lacks relevance to the future and is obsolete to analyze and learn nearly the new realities.He is a believer in establishment and leadership as a path of disembodied spirit to improve the skills of future blood line organisation leaders (and political ones, independently of their ideology, paradoxically enough). I am going to analyze, develop and comment on the main ideas contained in this consequential book, recommendable to all those dealing in the ontogeny of economic, business and management theories and practices . Whether one is a practitioner or an academic, I entail that legion(predicate) of the ideas atomic number 18 very relevant to our global world. If you indispensableness to succeed in it, this book contains many another(prenominal) recipes for success.The question that I exit be gaugeing to answer byout this paper is whether you advise skip the question of the model of economic growth in a sustainable way for the satellite. And therefore for humanity . I get out add my ideas to the analysis in the conclusions. I will start my analysis of the book by discussing the key ideas. Part 1 The Stage The world as a stage World wide music tours argon a symbol of globalization . The author uses Riverdance, the Irish musical with its Celtic music and Irish dancing, as a metaphor for the global rescue.It is originated and performed by fragmentiseicipants of different subject fieldities and is enjoyed in many countries or stages. It is an encapsulated example of players in the glob al stage. The global thrift is invisible, solely its effects argon evident throughout the world. We are players on the global stage and we all feel its effects, no matter where they take place. Ohmae says that China is the republic that is benefiting the most from global economy, e special(a)ly those regions desire Dalian, that render an approach of being attractive with incentives to attract direct foreign Investment or DFI .China bunsnot be inspectn as a unity yet as a group of regions with different approaches and levels of political and economic independence. In populace, those regions are competing with one another for investment and re reference works, not from China, that from the outside world. Ohmae explains the examples of two countries that cast embraced globalization, such as Ireland and Finland. The first by attracting DFI and the sec one by embracing the inter contentization as the natural situation, plus the groundwork and association based economies that both countries promote.They vex taken the whole world as their natural grocery, and they project not been economically subject areaistic. What is the Global Economy? x Borderless Tariffs are disappearing, but borders inactive exit for raft and goods for the sake of certificate and safety. But in terms of the key factors of business life, the world has manufacture borderless. These business factors are designated as the four Cs communications, capital, corporations and consumers. -Effective communications, with the culture of internet in the mid-1990s onwards the world is getting sincerely borderless. The second C, capital, aided by the deregulation of financial markets, is in like manner a benefactive component of a borderless world with the US dollar the monetary platform of the globalization so far. -The third C, corporations, piss been successfully responding to the globalization by view their functions in different countries, that is to say, for example, R&D in S witzerland, Engineering in India, Financing in London, etc. -And the last C, consumers, enabled by the internet to analyze prices and products and do much to a greater extent informed qualitys.And also the products are make in different countries, e. x. its fabric in one verdant, its assembling routine in another and its design in a third one. . concealed Transactions and settlements of notes now take place mostly on and through computers. Plus the B2B trade change overs, or as C2C auctions. Most ATMs about the world give money in the local currency with foreign credit cards. There is no way that giving medications idler know what you have withdrawn and worn-out(a) abroad or how much you have spent with a credit card to purchase goods and services across case borders. Cyber connected The global economy would not be possible without the cyber engine room accommodateing large amounts of data to be transferred incredibly quickly. The internet is scarcely the most public part of it. Voice over IP (Internet communications protocol) is rapidly facilitating and making cheaper the communications. Everything and everybody with access to the internet tin connect. . Measured in multiples Money makes the world go round. Money is the main and nearly single value in the global economy.Shareholders demand to take advantage of business opportunities with expectations of profit. Ohmae defers that the authorized globalization process is in its infancy and more changes, many of them permanent, will go on to benefit the world. Globalization is an opportunity to create more wealth and prosperity, as long as one has the recipes or skills prerequisite to succeed in it. His view contrasts starkly with the negative opinions of these same features expressed by other ecology-oriented authors and economists.In my opinion, we have to be positive and indoors the global stage and develop the skills that represent an evolution ofhumanity towards a better stage,provide d that victimization those characteristics to create economic incentives are based on the maintenance and regeneration of the sustainability of the planet. In other words, I think that adding new value in the market economy thunder mug direct or redirect development towards those sustainability values, such as encourageion of human rights, freedom, democracy and encourageion of the milieu.In my judgement, that is where almost of the defenders of a collectivist approach to development are wrong. The human individual thrives in a free global stage that protects and promotes the right values with a regulatory framework based upon freedom and democracy, so the planet can addition its wealth and overstep all the corners of it. Opening dark Globalization started with the most important Earth-changing event . The opening night of capitalist economy spins around the knowledge and telecoms diversity, with Bill Gates as the epitome of this new era.The move of Soviet communism was due to the opening of Russia (The Soviet Union) thank to Gorbachev and his reforms with the glasnost (transparency). This was another key change towards a borderless globalized world. The dollar as the world currency after the agreement of the G5 in New York, and the flexibilization of currency exchange rate. The Fiscal revolution to combat Budget deficit in the 80s in the USA was another key factor for the monetary revolution in public finance management.Both helped the globalization process at the beginning of the 90s. The Microsoft eruption and affable information technology and software package have become a commonplace communication tool in todays world and is the key technological factor for the new global stage. The culmination of China into the world economy, with their reforms accepting efficiency and prosperity and private property with the famous, one country, two systems, claimed by the Communist political party leader Deng Xiaoping, and the continued by Zhu Ronji, was not short of a revolution.China now exhibits capitalism in its rawest form. And finally, the internet at the beginning of the 90s and the development of the world wide web with its common hypertext language allow millions to communicate and has changed profoundly our way of donjon and working. These are facts and Ohmae is right when he says that they are here to stay and that the global stage is spreading more and more, not confined to an elite, but affecting an ever growing part of the world population.Turning our backs to them would not be rational, these situations give more freedom to people, companies and politicians all over the world and should not limit Freedom, which is the most important human value, but enable societies to protect the weak and provide equal opportunities for people to make their own choices. Each of us knows better how to make ending for ourselves. Certainly better than governments. The idea is that Politicians set up frameworks, where fair values, not only profit rule, and allow the arket, with its limitations watched upon to bring prosperity and redistribute wealth with human criteria for the superior general benefit of all individuals. I do not believe in limitations on freedom, be it political, social or economic freedom. Countries with no democracy cannot claim that everything goes at the expense of prosperity. In other words, the Singapore model vs the Chinese model or the western model. For me prosperity does not estimableify political or human right limitations. The end of Economics The Global economy is not a theory, it is a reality.Not even economists comprehend how it works. The old masters theories and the well known parameters do not work anymore. Economic theories are used to explain causalities, especially deep down a country . The problem is that national economies do not embody anymore. There is no model to explain the global economy as such, because we are dealing with many parameters and variables, and so many units of economy, so many new financial products, bonds, hedge funds, and so many derivatives and multiples, that make it almost impossible to establish a mathematical economic model.The theory of complexness is more suitable to approach this new 21st ascorbic acid economy, fundamentally different from the 20th century one. Part of the paradox that surrounds economic theory is that it is often divorced from the world in which it has been developed. The Author cites several unmixed economic theories from old masters such as Adam Smith, David Ricardo, or Keynes that explain the reality around them. However, the global economy of today ineluctably new thinking to tackle its realities.The technological revolution has transformed geopolitics, including turn of events obsolete the nation-states. Economic environments are immutablely changing and are tricky to encapsulate. The liquidity of money, says the author, is another feature of the global economy. There is a constant flow, no absorption anywhere absorption would cause inflation. traditional economic theory cannotexplain this either. Technology and deregulation have liberated money from national economies. Money flows to areas of highest return, no matter where that is.Money has not patriotism. There is an over liquidity. Deflations antidote was inflation according to the theories of most famous economists (Paul Krugman) but the Nipponese example contradicts the theory. Consumers know better than economists what is good for them and what to do with their money. another(prenominal) purview of monetary policy that the advent of the global economy has altered is the military capability of interest rates. More and more individuals save, for instance in a portfolio of assets in the global world in the world stocks exchanges and the different currencies.The theory of complexness was developed because the traditional linear theories could explain less and less the complexity of the world, the relat ionships, the behaviors, the expectations of individuals, corporations and governments. There more and more thinkers, academics and business people who, like Kenichi Ohmae, see a parallel between the global economy and the world of complexity. Predictability, or more so the lack of it, is one. A small change in one variable can have a huge and enigmatical meeting elsewhere. Traditional theories tended to think that equilibrium was the natural state of economic systems.Nobody is completely sure of how the very recently developed global economy works. The old economic doubles that supported the clearal theories have been broken, but notwithstanding that many countries, or governments find difficult changing habits, the old interventionism, or touching a key to obtain a result is still in place, but with sometimes opposite results to those expected. Those who do not understand the new economic paradigms are liable to become the victim of soulfulness else who does. In the develope d world the economic policy should focus on asset appreciation, which has much bigger impact than increasing the flow of income.China, the author says, in one of them. So, in summary, some the characteristics of the new economic paradigm of the global world according to the author, are . For the first time in human history, prosperity and riches do not depend on existing wealth. In the global economy, there is no need for mineral resources or colonies, or any other traditional resources. A country or a region can attract foreign investment to create prosperity . The world has an excess of capital. There is plenty of money invariably looking for places to invest. A regions has to show worthy of consideration.Regions know that they are in a buyers market and that they have to contest for investment. Investment means prosperity. . Size no longer matters. The need of an home(a) substantial market is not necessary anymore. International success is accessible to countries with small po pulations, i. e. Nokia in Finland, Ireland, etc. I agree fully with the books ideas about the end of the old economic theories. The complexity of the borderless world, where individuals, corporations and governments try to maximize their return on investment is the reality of today.The global economy still has to produce its theorist, with the permanent state of flux and metamorphosis as a defining characteristic. We see how the global economy emerges in front of us, but it is difficult to grasp. Those who understand it and use new thinking, succeed. Innovation and productiveness for competitiveness are the real drivers. Part 2 Stage Directions. Playmakers For the author, the geographic and economic unit of the global economy is the region. Not so much the nation-state which, despite its political importance, cannot be viewed as an economic unit within the global economy.That is why political economy studied in classic economic theory is obsolete. The nation-state had its own curren cy and its natural territory and economic boundaries. With the global borderless economy, that notion is overcome. This idea is relatively new and revolutionary, and not politically correct for some as it suggests governments should have a subsidiary role in the regulations of economic transactions. There is a group of economists and thinkers closer to the political left that oppose to this notion.In their opinion there should be more regulations to protect the nation-state citizens from the global economy, capitalists and multinationals. Indeed they argue there should be less supranational trade and more national barriers and clearly defined borders to protect the life style of the citizens within and that the market and the capital not only have profit as the only value, but others such as the environment and sustainable growth, influencing the market forces to adapt to a more human global, but local economies.This is a fundamental confrontation in terms of reverie of the globa l world and the political consequences. It will be a central debate for the sustainability of the world and its social, political and economic consequences. In his explanation of the stand of the regions, versus the nation-state, the author mentions several examples, like Singapore, Ireland, the Tokio region, Dalian and Guangzhou in China. Some of these regions are component parts of old nation-states others spill over existing borders.Ohmae says that globalization is a liberalization of individuals, consumers, corporations and regions from the legacy of the nation-state in which they belong. Eventually the information on tap(predicate) to each of them will give them the wisdom of choice, r. e. Part 1 The Stage Whether a consumer buys the best(p) and cheapest from anywhere in the world is also their choice and not the decision of the government. Likewise corporations will shift eventually to the best host regions. Ultimately is a competitive world and one that will discipline all members of the global village, because wealth will migrate national borders. Platforms for ProgressThese are the developments that have promoted human progress what the author calls the platforms for progress that is to say means of allowing companies or individuals to communicate with each other to get things through more quickly and efficiently by enhancing communication and delivery, and creating the common standards original by the players. Technology platforms These include operating systems, (Microsoft), personal and corporate computers, the hypertext mark-up language programming platform for writing web pages (Java), the internet, the World Wide meshing and its applications like online transactions, shopping in the cyberspace, etc.The Voice over Internet Protocol (IP) and the versatility and affordability of telecommunications. Language The English language is the linguistic platform of the global world. many another(prenominal) critics see it as symptomatic of US domina nce and cultural imperialism. Attempts to confabulate other languages, like Russian in the old Soviet clam up of communist countries have failed totally. English language is spreading all over Asia where it is synonymous of business success. Being bilingual in your own mother tongue and English will become the norm, not a special skill.The US Dollar The reason is historical and practical and dates from the end of WWII (mid 40s). Many countries trade in the US dollar, e. x. North and South America, Australia, oil producing nations and Asian countries such as China and Japan. This puts the US in a privileged position, although, the recent trend in the importance of other currencies is balancing the situation versus the dollar and creating a group of global currencies, such as the Euro, the Yen and the Chinese Renminbi. Other Platforms These include Branding in the global economy.The majority are American, but more brands from other regions of the world are fair global. Global bus iness culture the global jargon of business is understood across borders. The ATM platform this allows cash to be give from locations far away from your locality. The credit card and smart cards platform. GPs platform, and other platforms are becoming available to a large number of users in a global world and those doing business need to understand this. come in and About Another issue shaping the global stage is the business process outsourcing (BPO).This means business optimization and refers to the relocation of sources and resources. Again it is the the Telecommunications revolution which drives BPO. An immediate benefit has been the reduction in speak tos. However, BPO is one of the most controversial aspects of global economy, seen by some as a capitalist ontogenesis of the poor, a new way of making money at the expense of poor countries, creating new global economy slaves. India (also Ireland) has benefited the most from BPO (again the English platform).The author defends this new form of globalization arguing that it furthers the distribution and spread of wealth in a more effectively and efficiently than development aid. The money goes directly to individuals rather than potentially corrupt government agencies. The increased prosperity in India and Ireland is undeniable (other examples include China and the Philippines). Ohmae defends BPD as a source of wealth for poorer countries and criticizes those myths and half truths about the sweat workshop cliches, claiming these stem from western fear and insecurity about the loss of white collar jobs.The view from those countries is radically opposite. Cross-border BPO, is yet another example of the borderless world. Many clerical jobs have been replaced by computers and companies outsource more and more functions in search of cost reductions and competitiveness. It is natural that some of the better and cheaper operators should be found across national borders. Some politicians and intellectuals have a different point of view. In my opinion, BPO, like everything else in life has a right and wrong approach to it. If the conditions for comeliness and other values other than just profit are introduced, the advantages outbalance the isadvantages. A global effort is needed by international political institutions to guarantee that exploitation by multinationals is not allowed. I believe in market forces over governmental control. In other words, if market rules penalize companies that do not comply with international norms of fair work whence they will have the incentive to change. More so than a form with national regulations open, in some cases, to corruption, lack of transparency and consequently treat for human rights. Breaking the chains The internet and the portal are becoming more and more important in the global stage.The search locomotive is the best travel guide and helpmate for internet users as they front through billions of pages in the cyber jungle. This is creating the emergence of cyberites or netians. This group of internet users has a tendency to follow behavior patters that Ohmae classifies in theorems. . Theorem 1 internet users for atomic number 23 years or more tend to think, act and behave similarly. They want to buy the best and cheapest from anywhere in the world. They are confident that they can live well under the liberated regime of a truly global environment. Theorem 2 (Age-10/10) is the number of years to become a real cyberite according to the non-scientific observation of the author. It takes longer to unlearn accumulated 20th century assumptions and myths depending on your exposure. The younger generations have less difficulty in learning the rules and games of the cyberworld. . Theorem 3 Cyberite as proactive consumers. People are passive when watch TV. They want to be make ittained. By typing the names in a search engine cyberites are more likely to discover or buy something.The requital systems are a fundamental part for the development of internet. In fact, security is one of the issues that prevent people from buying and handicraft in the World Wide Web. Improvement of the security will increase the number of cyber transactions. More companies are introducing security and convenience to internet payment systems. The final part of the net revolution is logistics, or the physical distributions of goods. The new technologies have created many new business models, from the case of Dell, to Amazon, Zara and others.Parcel delivery companies have grasped the opportunity to become global logistics business partners with the outsourcing of that important function in the global world to many companies. Time and distance are barriers. This barrierless global world is a psychological shift that shapes our understanding the global economy and its benefits. We consume items from any cornerofplanet,becausetheyareavailabletousasglobalconsumers. Part 3 The Script Reinventing Government Governments are losing their power in this global world. Some do better than others, and decentralization is happening within their countries.Nevertheless, strong central control is something of the past, Ohmae argues. Todays intellectual battle is between the old and the new. Governments are wealth distributors, not wealth facilitators. They create wealth only through receipts. That is the way many people experience governmental intervention. The best taxation is the simple one explained in the book and also the fact that money raised from taxation should be invested in the places it is raised. As distributors of wealth, governments have gone the way of growing welfare states and welfare economies.They protect national industries, even if they are wasteful and weak globally, at the expense of the taxpayer. The distributive state is when distributed wealth is spread evenly and fairly throughout the country. Governments of the future must seek to facilitate rather than frustrate. The public service of a ny country must be prepared to work more on short term projects with classifiable goals as is the practice in the majority of European countries, rather than enter into a permanent employment regime. A pragmatic approach is necessary. A Vision for ChangeGovernments need to have a wad for the future, not only one developed by politicians, but by all social agents, which identifies national strategy and policies in an open and transparent way and reach all layers of society. It must not be just a unsullied collection or words and aspirations, but identify clear, practical and obtainable goals. Democracy should be used to reach majority consensus. Naturally coming with this vision is not easy. First because of the political fractions in a country, indeed because we now live in a borderless world and can no longer put national interests first.And finally because we live in a cyberspace and are bound to the TIC (Telecommunications and Information technologies) . Mapping the future Th ese are the fundamentals to develop a viable vision for a country . It must empower individuals .It must invite capital from the rest of the world .It must maintain an even keel Government vision. These are things Governments can do . Be ambassadors for new technology .Diminish the hindrances for capital flow .Eliminate obstacles for companies to attract the best people, skilled workers or managers .Minimize bureaucracy .Specialize the country around a competitive advantage A truly visionary government is sacred to nurture. A highly educated work force is necessary to add intellectual value to the country or region. Workers in all areas should be educated in being versatile and open-minded. Possession of disciplined legal opinion processes and the ability to approach problem-solving are always the areas one can launch upon and apply in many different areas. To this end, further education or skill acquisition should be made easy.The internet and broadband technology make attendin g and participating in learning from remote locations possible. A new Role for the Government Governments have been involved in providing education, but their role should change to being a member of a aggroup and open up to the private sector involvement. Education and the school system represent one of the best ways in which governments can get word the citizens of the future about changing roles. But world reality is not very encouraging. Many governments, on the contrary, want to set up barriers to protect their national economies.There are examples of countries and/or regions with different characteristics, that are successful in the government involvement and the understanding of the global economy. Some regions of China, Scandinavian countries, Ireland or Singapore are among them. In each there is tradition of interventionist government action, especially in the economic sphere. In different ways they have given more, by doing less, often providing only the initial impulse a nd vision and the right background conditions, but thereafter sitting on the sidelines. The Futures MarketGovernments must change, but the global stage, change is both necessary and inevitable at three fundamental levels . Technological- Technological progress has the capacity to reshape countries . Personal- Individuals must become more proactive and more adaptable . Organizational- The emergent corporation will be homeless. It will be adaptive, focused on innovation and unencumbered by needless hierarchy or the psychological baggage of the past The technological Future Technological progress means that industrial death is increasingly a fact of business life.The rise and fall of commercial enterprises is part of the landscape. Each technological wave usually has its victims, those who were ineffectual to change in time. Time has been compressed. The history of the digital camera is just an example of this. Big companies like Kodak and Fuji are facing restructuring. Or the music an d cinema industries with the emergence of the internet and the digital technologies. Something similar can be said about telephony, with the rise of VoIP (Voice over Internet Protocol) and its impact on Telecoms. The personal futureNo matter where they are, individuals will have to learn to adapt. A job career for life is a concept to be discarded. Another change will be the accepted norm that life always gets better and that workers, no matter their education level, can look precedent to an incrementally improving life-style, leading to a post-retirement soft-landing, in which almost all their ask are provided for. People will have to learn to be lifestyle mangers. Flexibility will be central to success. Success in the global economy will also depend on good leadership. This is true with regard to a region-state, or a company.Good leaders need vision but must remain pragmatists. Leaders must value information and innovation. One of the most important assets that a leader can h ave got is a flexible attitude to his/her role. He/She must be visceral and able to change. The Corporate Future Uncertainty is another feature of the global economy. Paradoxically this provides opportunities for those brave and adept enough to adapt. The global economy is new. The rulebook rest unwritten. Nobody knows what will work. The best way forward is to try in any case and to learn from your mistakes, then try again.The author dismisses the case study order followed by universities, arguing business needs to be done in new ways. Notions from the past cannot be applied to the future. Companies need to commit to the global economy wholeheartedly, unless they want to be absorbed by others. Companies will be homeless. The traditional link to a nation-state will disappear, the relationships will be different, because their business will be widespread. The notion of headquarters is giving way to the reality that the market is open 24/365, the market never sleeps.The natural sta te of the homo economicus is movement. Innovation is another feature of global economy. And whatever innovation system a company may establish, the innovation of new, better, more efficient, cheaper, more convenient products and services will be permanent Business systems, products and services, guest relationships and internal staff relationships, will become four key areas for innovations. Companies also need to learn to adapt their identities and shift their business models to adapt to market changes. More and more corporations will have to be like living creatures.The traditional military-like organization that companies have today, based on hierarchy will also have to be adapted. The old pyramid will not survive. The control focus organization will evolve to other forms of flexible, innovation-focused organizations. The next Stage The Region as the unit of the global economy will continue to rise. There are many examples, from Vancouver, to Sao Paulo, Estonia, Ho Chi Ming urb an center or the Baltic Corner, that have been the chance to put together some of the right features to succeed in the global economy. The formula for success is not too complicated.What is complex is the need to unlearn the legacies of the nation-state and acquire new skills to work with global businesses. These regions now compete to attract investors to create wealth, and to this end are marketing themselves as brands to make potential target group investors apprised oftheir competitive advantages. Conclusions Ohmaes definition of the Globalization is described as one global stage where players act in an ever changing plot, brought about by the information technology and telecoms revolution which defies physical and political barriers.A interlocking of powerful machines create, analyze and synthesize information in milliseconds. The information within them is easily and instantly available. The traditional nation-state is an obstacle in many instances to the carrying out of th is global network. All regions, not nations, of the world, fight and compete with each other to attract money and investment to create wealth in their territory. Traditional economic thinking is obsolete to explain such globalization. Knowledge and education are more important thantangible natural resources, locations or previous sources of wealth.Governments, businesses and individuals can only prosper through flexibility and pragmatism. The world is going through a globalization process , that is both inevitable as part of the natural human evolution and unstoppable ,because of the incentives that produces . The Global economy is a reality not a theory. Globalization is in reality unknown quantity even for those who succeed in it. The features of the global economy are borderless, invisible, cyber connected, and deliberate in multiples ,where profit or money is the single most important value.The complexity of the global economy is such that no existing theories can explain it There are many variables that change constantly and create unexpected effects, and the theories and mathematic model that explain complexity cant be proved empirically. Ohmae does not defend the suppression of the state, but with what I consider good judgment, thinks governments should not try to do things for business, but should allow business to do things for itself.However, he does not emphasize the fact that governments should create the political framework that guarantee the human rights, freedom, and education for people to be able to be competitive in a fair world with a consensus on the big questions of life, including democracy, sustainable growth and basic moral and/or human values in the consummation of the companies. It would be as though the free Market can increase the value of those companies that comply with those general framework conditions, and not only profit determines the value and/or performance of corporations.This may sound like wishful thinking, but I bel ieve the market can better guarantee the sustainability, efficiency, freedom and prosperity of humanity than government. The difficulty, of course, is how to reach that general political framework. World leaders need to search for it and, in my opinion, this will be the single most important issue for world sustainability and prosperity. It has to be the next big revolution. The clement Political Revolution.