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of the world�察�without opting for classic protectionism。 
;Compassionate capitalism。 Think it sounds like an oxymoron�拭�Think again�察─�said 
Gunther。 ;Even as America is supposedly turning conservative on social issues�察�big 
business is moving in the other direction。; 
303 
Parenting 
No discussion of compassionate flatism would be complete without also discussing the 
need for improved parenting。 Helping individuals adapt to a flat world is not only 
the job of governments and companies。 It is also the job of parents。 They too need 
to know in what world their kids are growing up and what it will take for them to 
thrive。 Put simply�察�we need a new generation of parents ready to administer tough 
love�此�There comes a time when you've got to put away the Game Boys�察�turn off the 
television set�察�put away the iPod�察�and get your kids down to work。 
The sense of entitlement�察�the sense that because we once dominated global commerce 


and geopolitics´and Olympic basketball´we always will�察�the sense that delayed 
gratification is a punishment worse than a spanking�察�the sense that our kids have 
to be swaddled in cotton wool so that nothing bad or disappointing or stressful ever 
happens to them at school is�察�quite simply�察�a growing cancer on American society。 
And if we don't start to reverse it�察�our kids are going to be in for a huge and socially 
disruptive shock from the flat world。 While a different approach by politicians is 
necessary�察�it is not sufficient。 
David Baltimore�察�the Nobel Prize´winning president of Caltech�察�knows what it takes 
to get your child ready to compete against the cream of the global crop。 He told me 
that he is struck by the fact that almost all the students who make it to Caltech�察�
one of the best scientific universities in the world�察�come from public schools�察�not 
from private schools that sometimes nurture a sense that just because you are there�察�
you are special and entitled。 ;I look at the kids who come to Caltech�察�and they grew 
up in families that encouraged them to work hard and to put off a little bit of 
gratification for the future and to understand that they need to hone their skills 
to play an important role in the world�察─�Baltimore said。 ;I give parents enormous 
credit for this�察�because these kids are all coming from public schools that people 
are calling failures。 Public education is producing these remarkable students´so it 
can be done。 Their parents have nurtured them to make sure that they realize their 
potential。 I think 

we need a revolution in this country when it comes to parenting around education。; 
Clearly�察�foreign´born parents seem to be doing this better。 ;About one´third of our 
students have an Asian background or are recent immigrants�察─�he said。 A significant 
majority of the students coming to Caltech in the engineering disciplines are 
foreign´born�察�and a large fraction of its current facultyis foreign´born。 ;In biology�察�
at the postdoc level�察�the dominance of Chinese students is overwhelming�察─�said 
Baltimore。 No wonder that at the big scientific conferences today�察�a majority of the 
research papers dealing with cutting´edge bioscience have at least one Chinese name 
on them。 
My friends Judy Estrin and Bill Carrico have started several networking companies 
in Silicon Valley。 At one time�察�Judy was chief technology officer for Cisco。 I sat 
with them one afternoon and talked about this problem。 ;When I was eleven years old�察─�
said Bill�察 �I knew I was going to be an engineer。 I dare you to find an eleven´year´old 
in America who wants to be an engineer today。 We've turned down the ambition level。; 
Added Judy�察 �More of the problem ��can be solved by good�А�parenting than can be solved 
from a regulatory or funding move。 Everyone wants to fund more of this and that�察�but 
where it starts is with the parents。 Ambition comes from the parents。 People have 
to get it。 It will probably take a crisis ��to get us refocused�А�; 
In July 2004�察�comedian Bill Cosby used an appearance at Jesse Jackson's Rainbow/PUSH 
Coalition & Citizenship Education Fund's annual conference to upbraid 
African´Americans for not teaching their children proper grammar and for black kids 
not striving to learn more themselves。 Cosby had already declared�察 �Everybody knows 
it's important to speak English except these knuckleheads。 You can't be a doctor with 


that kind of crap coming out of your mouth。; Referring to African´Americans who 
squandered their chances for a better life�察�Cosby told the Rainbow Coalition�察 �You've 
got to stop beating up your women because you can't find a job�察�because you didn't 
want to get an education and now you're ��earning��minimum wage。 You should have thought 
more of yourself when you were in high school�察�when you had an opportunity。; 
305 
When Cosby's remarks attracted a lot of criticism�察�Reverend Jackson defended him�察�
arguing�察 �Bill is saying�察�let's fight the right fight。 Let's level the playing field。 
Drunk people can't do that。 Illiterate people can't do that。; 
That is right。 Americans are the ones who increasingly need to level the playing 
field´not by pulling others down�察�not by feeling sorry for ourselves�察�but by lifting 
ourselves up。 But when it comes to how to do that�察�Cosby was saying something that 
is important for black and white Americans�察�rich and poor。 Education�察�whether it comes 
from parents or schools�察�has to be about more than just cognitive skills。 It also 
has to include character building。 The fact is�察�parents and schools and cultures can 
and do shape people。 The most important influence in my life�察�outside of my family�察�
was my high school journalism teacher�察�Hattie M。 Steinberg。 She pounded the 
fundamentals of journalism into her students´not simply how to write a lead or 
accurately transcribe a quote but�察�more important�察�how to comport yourself in a 
professional way。 She was nearing sixty at the time I had her as my teacher and high 
school newspaper adviser in the late 1960s。 She was the polar opposite of ;cool�察─�
but we hung around her classroom like it was the malt shop and she was Wolfman Jack。 
None of us could have articulated it then�察�but it was because we enjoyed being 
harangued by her�察�disciplined by her�察�and taught by her。 She was a woman of clarity 
and principles in an age of uncertainty。 I sit up straight just thinking about her� �
Our children will increasingly be competing head´to´head with Chinese�察�Indian�察�and 
Asian kids�察�whose parents have a lot more of Hattie's character´building approach 
than their own American parents。 I am not suggesting that we militarize education�察�
but I am suggesting that we do more to push our young people to go beyond their comfort 
zones�察�to do things right�察�and to be ready to suffer some short´run pain for longer 
gain。 
I fear�察�though�察�that things will have to get worse before they get better。 As Judy 
Estrin said�察�it will probably take a crisis。 I would simply add�此�The crisis is already 
here。 It is just playing out in slow motion。 The flattening of the world is moving 
ahead apace�察�and barring war or some catastrophic terrorist event�察�nothing is going 
to stop it。 But what can happen is a decline in our standard of living�察�if more 
Americans are not empow306 
ered and educated to participate in a world where all the knowledge centers are being 
connected。 We have within our society all the ingredients for American individuals 
to thrive in this world�察�but if we squander those ingredients�察�we will stagnate。 
I repeat�此�This is not a test。 This is a crisis�察�and as Paul Romer has so perceptively 
warned�察 �A crisis is a terrible thing to waste。; 
Developing Countries and the Flat World 


�今今今今此�NINE 
The Virgin of Guadalupe 
It's not that we are becoming more Anglo´Saxon。 It's that we are having an encounter 
with reality。 

´ Frank Schirrmacher�察�publisher of the German newspaper 
Frankfurter Allgemeine Zeitung�察�commenting to 
The New York Times about the need for German 
workers to retool and work longer hours 
Seek knowledge even unto China。 
´ saying of the Prophet Muhammad 
The more I worked on this book�察�the more I found myself asking people I met around 
the world where they were when they first discovered that the world was flat。 
In the space of two weeks�察�I got two revealing answers�察�one from Mexico�察�one from 
Egypt。 I was in Mexico City in the spring of 2004�察�and I put the question on the table 
during lunch with a few Mexican journalist colleagues。 One of them said he realized 
that he was living in a new world when he started seeing reports appearing in the 
Mexican media and on the Internet that some statuettes of Mexico's patron saint�察�the 
Virgin of Guadalupe�察�were being imported into Mexico from China�察�probably via ports 
in California。 When you are Mexico and your claim to fame is that you are a low´wage 
manufacturing country�察�and some of your people are importing statuettes of your own 
patron saint from China�察�because China can make them and ship them all the way across 
the 
Pacific more cheaply than you can produce them�察�you are living in a flat world。 
You've also got a problem。 Over at the Central Bank of Mexico�察�I asked its governor�察�
Guillermo Ortiz�察�whether he was aware of this issue。 He rolled his eyes and told me 
that for some time now he could feel the competitive playing field being leveled´and 
that Mexico was losing some of its natural geographic advantages with the U。S。 
market´by just staring at the numbers on his computer screen。 ;We started looking 
at the numbers in 2001 ´it was the first year in two decades that ��Mexico's�А�exports 
to the U。S。 declined�察─�said Ortiz。 ;That was a real shock。 We started reducing our 
gains in market share and then started losing them。 We said that there is a real change 
here 。 。 。 And it was about China。; 
China is such a powerhouse of low´cost manufacturing that even though the NAFTA accord 
has given Mexico a leg up with the United States�察�and even though Mexico is right 
next door to us�察�China in 2003 replaced Mexico as the number two exporter to the United 
States。 ��Canada remains number one。�� Though Mexico still has a strong position in 
big´ticket exports that are costly to ship�察�such as 

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