In a recent book, Richard Baldwin takes us on a fascinating journey to the past, and then provides a peak into the next great transformation. In The Globotics Upheaval, Mr. Baldwin describes a cycle that has played out multiple times throughout human history. The cycle of transformation, upheaval, backlash and resolution (Let’s call it TUBS) was experienced each time the world entered periods of major disruption. Mr. Baldwin introduces the Globotics Transformation as the third great economic transformation to shape our societies over the past three centuries. As he describes, the first was known as the Great Transformation started in the early 1700s, and it switched societies from agriculture to industrial and from rural to urban. The second started in the early 1970s, shifting the focus from industry to services – the Services Transformation. I take a different view of transformation in the context of Tipping Points – but the cycle is the same.
Knowledge is the engine that drives human development – and it has been throughout history. Knowledge expanded in the hunter-gatherer days with the invention of fire. In those days, a human obtained all its food by foraging. Although the source of food did not change, fire allowed humans to cook food and consume more calories. The human brain expanded with this caloric increase, and soon we invented language – the first in a series of innovations that drove the growth of knowledge.
It’s been over a year since launching an Online Course focused on a complex and uncertain future. The course takes a Journey through the Looking Glass – a metaphorical expression that means: on the strange side, in the twilight zone, in a strange parallel world. It comes from the Alice and Wonderland literary work of Lewis Carroll, where he explores the strange and mysterious world Alice finds when she steps through a mirror. I have always found this to be a perfect metaphor for our times.
Every time the looking glass has appeared, the world has experienced a Tipping Point. While I firmly believe a tipping point is coming, the impact is likely a question of severity. Some believe that we have survived similar economic transitions in the past, while others disagree:
Globalization could be entering its third act. In a book titled The Great Convergence, Author Richard Baldwin describes the three constraints that have limited globalization: the cost of moving goods, the cost of moving ideas, and the cost of moving people. The first two acts of globalization occurred when the cost of moving goods and ideas dropped. While globalization raised the standard of living in several developing economies, the third constraint limited the breadth of impact.
In his closing chapter, Mr. Baldwin explores the possibility of a third act. This act is driven by dramatic advancements in areas that address the third constraint. If the cost of moving people were to drop, developing nations like South America, Africa, and others could be the beneficiaries of this third act. How will the cost of moving people drop? What advancements enable this third act? In his closing chapter, Mr. Baldwin touches on enabling innovations and their fascinating potential. Here is a brief look at these innovations: