The Lexus and the Olive Tree
Encyclopedia
The Lexus and the Olive Tree is a 1999 book by Thomas L. Friedman that posits that the world is currently undergoing two struggles: the drive for prosperity and development, symbolized by the Lexus
, and the desire to retain identity and traditions, symbolized by the olive tree
. He says he came to this realization while eating a sushi
box lunch
on a Japanese bullet train
after visiting a Lexus factory and reading an article about conflict in the Middle East
.
Friedman leads the reader on an international quest for a new understanding of the often misunderstood and misapplied term "globalization
" by tapping on to stories of his actual experiences in interfacing with many of the global movers and shakers. He proposes that "globalization is not simply a trend or fad but is, rather, an international system. It is the system that has replaced the old Cold War system, and, like that Cold War System, globalization has its own rules and logic that today directly or indirectly influence the politics, environment, geopolitics and economics of virtually every country in the world."
Friedman attempts to dissect, analyze and categorize this new international system, and explains it by introducing colorful new terms such as: Microchip Immune Deficiency; The Golden Straightjacket; The Electronic Herd; DOSCapital; The Backlash; The Groundswell.
The "Big Idea" in The Lexus and the Olive Tree is found on page 232 where Friedman explains that: "if you can't see the world, and you can't see the interactions that are shaping the world, you surely cannot strategize about the world." He states that "you need a strategy for how to choose prosperity for your country or company."
Perhaps the most famous theory presented in this book is the Golden Arches Theory of Conflict Prevention, which states: "No two countries that both had McDonald's had fought a war against each other since each got its McDonald's". (A variant of the democratic peace theory
.)
A contradiction to this theory can be seen in the 2008 South Ossetia war
between Georgia
and Russia
, both countries with McDonald's franchises opened during the 90's. In another example, Israel
and Hezbollah were in a state of war beginning 1973 and had McDonald's franchises opened in 1995 and 1998, respectively, when both countries were still involved in an active war (which ended only with Israel's withdrawal in 2000). Hostilities began again in 2006. However, Hezbollah is not a country, rather it is a political party within Lebanon.
In the 2000 edition of the book (ISBN 0-385-49934-5; Anchor Books), Friedman answered criticism of his theory as follows:
He also explains how globalization can cause Brazilification—the loss of the middle class and increase in income gap -- of countries impacted by the trend. Brazilification is a neologism included in Douglas Coupland
's book Generation X
.
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...
, and the desire to retain identity and traditions, symbolized by the olive tree
Olive Tree
The Olive Tree was a denomination used for several successive centre-left Italian political coalitions from 1995 to 2007.The historical leader and ideologue of these coalitions was Romano Prodi, Professor of Economics and former leftist Christian Democrat, who invented the name and the symbol of...
. He says he came to this realization while eating a sushi
Sushi
is a Japanese food consisting of cooked vinegared rice combined with other ingredients . Neta and forms of sushi presentation vary, but the ingredient which all sushi have in common is shari...
box lunch
Bento
is a single-portion takeout or home-packed meal common in Japanese cuisine. A traditional bento consists of rice, fish or meat, and one or more pickled or cooked vegetables, usually in a box-shaped container. Containers range from disposable mass produced to hand crafted lacquerware...
on a Japanese bullet train
Bullet train
Bullet train may refer to:* The Shinkansen high speed trains of Japan, so nicknamed for their appearance and speed* Other high speed trains of a similar appearance to the original Japanese trains...
after visiting a Lexus factory and reading an article about conflict in the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
.
Friedman leads the reader on an international quest for a new understanding of the often misunderstood and misapplied term "globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
" by tapping on to stories of his actual experiences in interfacing with many of the global movers and shakers. He proposes that "globalization is not simply a trend or fad but is, rather, an international system. It is the system that has replaced the old Cold War system, and, like that Cold War System, globalization has its own rules and logic that today directly or indirectly influence the politics, environment, geopolitics and economics of virtually every country in the world."
Friedman attempts to dissect, analyze and categorize this new international system, and explains it by introducing colorful new terms such as: Microchip Immune Deficiency; The Golden Straightjacket; The Electronic Herd; DOSCapital; The Backlash; The Groundswell.
The "Big Idea" in The Lexus and the Olive Tree is found on page 232 where Friedman explains that: "if you can't see the world, and you can't see the interactions that are shaping the world, you surely cannot strategize about the world." He states that "you need a strategy for how to choose prosperity for your country or company."
Perhaps the most famous theory presented in this book is the Golden Arches Theory of Conflict Prevention, which states: "No two countries that both had McDonald's had fought a war against each other since each got its McDonald's". (A variant of the democratic peace theory
Democratic peace theory
Democratic peace theory is the theory that democracies don't go to war with each other. How well the theory matches reality depends a great deal on one's definition of "democracy" and "war"...
.)
A contradiction to this theory can be seen in the 2008 South Ossetia war
2008 South Ossetia war
The 2008 South Ossetia War or Russo-Georgian War was an armed conflict in August 2008 between Georgia on one side, and Russia and separatist governments of South Ossetia and Abkhazia on the other....
between Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...
and Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, both countries with McDonald's franchises opened during the 90's. In another example, Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
and Hezbollah were in a state of war beginning 1973 and had McDonald's franchises opened in 1995 and 1998, respectively, when both countries were still involved in an active war (which ended only with Israel's withdrawal in 2000). Hostilities began again in 2006. However, Hezbollah is not a country, rather it is a political party within Lebanon.
In the 2000 edition of the book (ISBN 0-385-49934-5; Anchor Books), Friedman answered criticism of his theory as follows:
- "I was both amazed and amused by how much the Golden Arches Theory had gotten around and how intensely certain people wanted to prove it wrong. They were mostly realists and out-of-work Cold Warriors who insisted that politics, and the never-ending struggle between nation-states, were the immutable defining feature of international affairs, and they were professionally and psychologically threatened by the idea that globalization and economic integration might actually influence geopolitics in some very new and fundamental ways."
He also explains how globalization can cause Brazilification—the loss of the middle class and increase in income gap -- of countries impacted by the trend. Brazilification is a neologism included in Douglas Coupland
Douglas Coupland
Douglas Coupland is a Canadian novelist. His fiction is complemented by recognized works in design and visual art arising from his early formal training. His first novel, the 1991 international bestseller Generation X: Tales for an Accelerated Culture, popularized terms such as McJob and...
's book Generation X
Generation X: Tales for an Accelerated Culture
Generation X: Tales for an Accelerated Culture, published by St. Martin's Press in 1991, is the first novel by Douglas Coupland. The novel popularized the term Generation X, which refers to Americans and Canadians who reached adulthood in the late 1980s...
.
See also
- Jihad vs. McWorldJihad vs. McWorldJihad vs. McWorld is the title of a 1992 article that was later adapted into a book by political scientist Benjamin Barber, in which he puts forth a theory that describes the struggle between "McWorld" and "Jihad" Jihad vs. McWorld is the title of a 1992 article that was later adapted into a book...
- List of countries with McDonald's franchises
- The World Is FlatThe World Is FlatThe World Is Flat: A Brief History of the Twenty-First Century is an international bestselling book by Thomas Friedman that analyzes globalization, primarily in the early 21st century. The title is a metaphor for viewing the world as a level playing field in terms of commerce, where all competitors...
External links
- Official page on author's site
- Review in Policy Review by Holman W. Jenkins, Jr.
- Review in Washington Monthly by Paul KrugmanPaul KrugmanPaul Robin Krugman is an American economist, professor of Economics and International Affairs at the Woodrow Wilson School of Public and International Affairs at Princeton University, Centenary Professor at the London School of Economics, and an op-ed columnist for The New York Times...
- Summary on BizSum
- Summary by Tom Allen