Monday, June 06, 2005

America's DNA (Friedman)

New Delhi

A few years ago my youngest daughter participated in the National History Day program for eighth graders. The question that year was "turning points" in history, and schoolchildren across the land were invited to submit a research project that illuminated any turning point in history. My daughter's project was "How Sputnik Led to the Internet." It traced how we reacted to the Russian launch of Sputnik by better networking our scientific research centers and how those early, crude networks spread and eventually were woven into the Internet. The subtext was how our reaction to one turning point unintentionally triggered another decades later.

I worry that 20 years from now some eighth grader will be doing her National History Day project on how America's reaction to 9/11 unintentionally led to an erosion of core elements of American identity. What sparks such dark thoughts on a trip from London to New Delhi?

In part it is the awful barriers that now surround the U.S. Embassy in London on Grosvenor Square. "They have these cages all around the embassy now, and these huge concrete blocks, and the whole message is: 'Go away!' " said Kate Jones, a British literary agent who often walks by there. "That is how people think of America now, and it's a really sad thing because that is not your country."

In part it was a conversation with friends in London, one a professor at Oxford, another an investment banker, both of whom spoke about the hassles, fingerprinting, paperwork and costs that they, pro-American professionals, now must go through to get a visa to the U.S.

In part it was a recent chat with the folks at Intel about the obstacles they met trying to get visas for Muslim youths from Pakistan and South Africa who were finalists for this year's Intel science contest. And in part it was a conversation with M.I.T. scientists about the new restrictions on Pentagon research contracts - in terms of the nationalities of the researchers who could be involved and the secrecy required - that were constricting their ability to do cutting-edge work in some areas and forcing intellectual capital offshore. The advisory committee of the World Wide Web recently shifted its semiannual meeting from Boston to Montreal so as not to put members through the hassle of getting visas to the U.S.

The other day I went to see the play "Billy Elliot" in London. During intermission, a man approached me and asked, "Are you Mr. Friedman?" When I said yes, he introduced himself - Emad Tinawi, a Syrian-American working for Booz Allen. He told me that while he disagreed with some things I wrote, there was one column he still keeps. "It was the one called, 'Where Birds Don't Fly,' " he said.

I remembered writing that headline, but I couldn't remember the column. Then he reminded me: It was about the new post-9/11 U.S. Consulate in Istanbul, which looks exactly like a maximum-security prison, so much so that a captured Turkish terrorist said that while his pals considered bombing it, they concluded that the place was so secure that even birds couldn't fly there. Mr. Tinawi and I then swapped impressions about the corrosive impact such security restrictions were having on foreigners' perceptions of America.

In New Delhi, the Indian writer Gurcharan Das remarked to me that with each visit to the U.S. lately, he has been forced by border officials to explain why he is coming to America. They "make you feel so unwanted now," said Mr. Das. America was a country "that was always reinventing itself," he added, because it was a country that always welcomed "all kinds of oddballs" and had "this wonderful spirit of openness." American openness has always been an inspiration for the whole world, he concluded. "If you go dark, the world goes dark."

Bottom line: We urgently need a national commission to look at all the little changes we have made in response to 9/11 - from visa policies to research funding, to the way we've sealed off our federal buildings, to legal rulings around prisoners of war - and ask this question: While no single change is decisive, could it all add up in a way so that 20 years from now we will discover that some of America's cultural and legal essence - our DNA as a nation - has become badly deformed or mutated?

This would be a tragedy for us and for the world. Because, as I've argued, where birds don't fly, people don't mix, ideas don't get sparked, friendships don't get forged, stereotypes don't get broken, and freedom doesn't ring.

A Race to the Top (Friedman)

June 3, 2005

Bangalore, India

It was extremely revealing traveling from Europe to India as French voters (and now Dutch ones) were rejecting the E.U. constitution - in one giant snub to President Jacques Chirac, European integration, immigration, Turkish membership in the E.U. and all the forces of globalization eating away at Europe's welfare states. It is interesting because French voters are trying to preserve a 35-hour work week in a world where Indian engineers are ready to work a 35-hour day. Good luck.

Voters in "old Europe" - France, Germany, the Netherlands and Italy - seem to be saying to their leaders: stop the world, we want to get off; while voters in India have been telling their leaders: stop the world and build us a stepstool, we want to get on. I feel sorry for Western European blue collar workers. A world of benefits they have known for 50 years is coming apart, and their governments don't seem to have a strategy for coping.

One reason French voters turned down the E.U. constitution was rampant fears of "Polish plumbers." Rumors that low-cost immigrant plumbers from Poland were taking over the French plumbing trade became a rallying symbol for anti-E.U. constitution forces. A few weeks ago Franz Müntefering, chairman of Germany's Social Democratic Party, compared private equity firms - which buy up failing businesses, downsize them and then sell them - to a "swarm of locusts."

The fact that a top German politician has resorted to attacking capitalism to win votes tells you just how explosive the next decade in Western Europe could be, as some of these aging, inflexible economies - which have grown used to six-week vacations and unemployment insurance that is almost as good as having a job - become more intimately integrated with Eastern Europe, India and China in a flattening world.

To appreciate just how explosive, come to Bangalore, India, the outsourcing capital of the world. The dirty little secret is that India is taking work from Europe or America not simply because of low wages. It is also because Indians are ready to work harder and can do anything from answering your phone to designing your next airplane or car. They are not racing us to the bottom. They are racing us to the top.

Indeed, there is a huge famine breaking out all over India today, an incredible hunger. But it is not for food. It is a hunger for opportunity that has been pent up like volcanic lava under four decades of socialism, and it's now just bursting out with India's young generation.

"India is the oldest civilization, the largest democracy and the youngest population - almost 70 percent is below age 35 and almost 50 percent is 25 and under," said Shekhar Gupta, editor of The Indian Express. Next to India, Western Europe looks like an assisted-living facility with Turkish nurses.

Sure, a huge portion of India still lives in wretched slums or villages, but more and more of the young cohort are grasping for something better. A grass-roots movement is now spreading, demanding that English be taught in state schools - where 85 percent of children go - beginning in first grade, not fourth grade. "What's new is where this movement is coming from," said the Indian commentator Krishna Prasad. "It's coming from the farmers and the Dalits, the lowest groups in society." Even the poor have been to the cities enough to know that English is now the key to a tech-sector job, and they want their kids to have those opportunities.

The Indian state of West Bengal has the oldest elected Communist government left in the world today. Some global technology firms recently were looking at outsourcing there, but told the Communists they could not do so because of the possibility of worker strikes that might disrupt the business processes of the companies they work for. No problem. The Communist government declared information technology work an "essential service," making it illegal for those workers to strike. Have a nice day.

"This is not about wages at all - the whole wage differential thing is going to reduce very quickly," said Rajesh Rao, who heads the innovative Indian game company, Dhruva. It is about people who have been starving "finally seeing the ability to realize their dreams." Both Infosys and Wipro, India's leading technology firms, received more than one million applications last year for a little more than 10,000 job openings.

Yes, this is a bad time for France and friends to lose their appetite for hard work - just when India, China and Poland are rediscovering theirs.

Paul Krugman is on vacation.