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CMU MBA 660 - SUMMARY

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“SUMMARY OF HOT, FLAT AND CROWDED”The book “Hot, Flat and Crowded” is written by “Thomas L. Friedman”. The bookcomes with a caption “Why We Need a Green Revolution and How It Can Renew America”. Thecaption clearly shows what the book is about. The book is organized into five parts; the first partgives the history of “When the Market and Mother Nature Hit the Wall”, the second part is aboutthe present scenario “Where We Are” and the next part is concerning the future “How We MoveForward”. The next part is about “China” if it can become Green China and the last part isabout “America”.The first chapter is “Why Citibank, Iceland’s Banks, And the Ice Banks of Antarctica AllMelted down at the Same Time”. It presents a fake story giving some true facts about therelationship and trade between America and China. It went on for many years that Americanconsumers bought goods from the Chinese producers and they suddenly stopped buying thoseand started their own production which resulted in severe unemployment problems in China.This scenario is explained with some real time practical examples. The chapter then explainsabout the threatening “Great Recession” and its severe effects on the economic market and thenature which resulted in extinction of some species and melting down of the banks stated in thechapter name. This was the problem America had faced and it had more fears than hopes thatmad Obama as the president. The chapter then insists that the world also had problems of overpopulation and global warming. The author then contrasted between the old and the presentgenerations and suggested the need for the “re-generation”. He then mentions the urgency totake measures to achieve green revolution. He then mentions the reasons why the market and thenature hit the wall simultaneously to make sure that we can avoid its reoccurrence. The first riskwas due to underpricing that made all people to buy even those with low incomes to buy housesand the banks took more risk in granting them with loans and finally the prices of houses wentdown but they had to pay much to the banks. This finally resulted in the melting of all the bankssimultaneously. The chapter presents the detailed cases of each banks and in all cases the reasonfor melting down is underestimating the consequences. They began using the underpriced itemsat a large extent that caused depletion of natural resources and they affected the MotherlandNature simultaneously. The chapter concludes with an explanation about the urgency of realizingand stopping depleting the natural resources and explains the need to conserve environment.The second chapter “Dumb As We Wanna Be” says that the downfall of the America’sprime innovative geopolitical competitor, the Soviet Union made them dumb and lazy to someextent. The “events of September 11, 2001” isolated them from the world and at the same timeunited them together and made them realize the need for security development. The author againcontrasts their generation with the past generations criticizing their act of eating the world. Therecame realization after they lost their global competitor. Then the chapter introduces their gooddays of the Regan era. Then came the rule of George W. Bush which made them face wars withreduced taxes as they thought that they had no competitors and that lead them into troubles. Andthe sudden terrorist attacks woke them up and brought about a situation of rebuilding the country.Finally they realized their lagging educational and work systems and founded easy ways ofearning.The chapter then presents the actual reason that caused the great recession to be the educationfailure that degraded their global competitiveness. The chapter next presents theirmisconceptions about the long run that lead to the drop of their fuel economy standards. Thechapter ends saying that to achieve long term sustainability they need to change their currentpractices and should conserve nature.The last chapter of first part of the book is “The Re-Generation”. The chapter contraststhe author’s generation with his parent’s generation and how things turned out with time. Hecriticizes his generation and their deeds of depleting the natural resources and presents the needfor re-generation. It means to repair the market and the nature. The author says that this task isnot for the next generations but it is their task and is to be taken up immediately. The chaptersays that we have achieved true globalization but not the “sustainable globalization”. He saysthat sustainable globalization not only helps in achieving a green world but also helps inachieving a safer and politically more stable world. The chapter then presents the importance ofsustainability and says that something is said to be sustainable if it could conserve, retain andregenerate environment. The author then mentioned how it can be achieved; it can be achievedby following values and ethics in our acts of doing things. The chapter concludes with a view tospeed up our actions to achieve sustainability through re-generation to give the futuregenerations a better world.The second part describes the present scenarios the author is facing. The first chapter in ittells about the present weather they have been facing. He uses the words “hot, flat andcrowded”. By flat he means that the technological advancements gave equal opportunities for allthe nations to grow equally and thus are all coming to the same levels and thus the world isgetting flat. By hot, he means to stress the effects of global warming that became very severe. Bycrowded, he means to present that the population has been growing enormously and needs to becontrolled. This chapter presents 5 problems to this hot, flat and crowded world. The first is theincreasing demand for scarce resources due to increased population. The second is thedomination and concentrations of wealth with the oil rich countries. The third is about theunpredictable climate changes and the fourth is the energy scarcity. The fifth problem is thethreats of extinction to the biodiversity. The chapter presents the need to generate electricity byecofriendly ways rather than methods that emit greenhouse gases. The chapter then explainsabout greenhouse


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