The Great Convergence: Information Technology and the New Globalization

The Great Convergence examines how information and communication technology has transformed globalization in the 21st century. Baldwin traces the evolution of global trade and commerce from its earliest days through three distinct phases of development. This economic analysis demonstrates how the costs of moving goods, ideas, and people have shifted over time, creating new patterns of industrialization and development. Through data and historical examples, Baldwin explores why certain regions industrialized while others remained unchanged during different periods. The book outlines key factors that separate the "old globalization" from the "new globalization," with a focus on how digital technology enables coordination at a distance. Baldwin examines the implications for both developed and developing nations as production processes become increasingly fragmented across borders. At its core, this work presents a framework for understanding how technological change drives economic transformations that reshape the global order. The analysis offers insights into potential future developments in international trade and economic relations between nations.

Readers describe this as an analytical framework for understanding three distinct phases of globalization, with a focus on how information technology transformed global trade and labor markets. Readers appreciated: - Clear explanations of complex economic concepts - Historical context and data visualization - Fresh perspective on why modern globalization differs from past eras - Analysis of how digital technology impacts service jobs Common criticisms: - Too much repetition of key points - Academic writing style can be dry - Later chapters become technical and dense - Some readers wanted more discussion of policy implications Ratings: Goodreads: 4.0/5 (203 ratings) Amazon: 4.4/5 (89 ratings) Sample reader quote: "Baldwin makes a compelling case for how digitization and improved communication technology have fundamentally changed globalization, though he could have condensed his arguments into a shorter book." - Amazon reviewer Several business school professors noted they use sections of the book in their international economics courses.

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🌐 The book explains how globalization has evolved in three distinct waves: the first reduced transportation costs (1820s), the second reduced trade costs (1990s), and the third reduced face-to-face communication costs (ongoing). 💡 Richard Baldwin served as a Senior Staff Economist for President George H.W. Bush's Council of Economic Advisers and has been a professor of international economics at the Graduate Institute in Geneva since 1991. 📊 The book introduces the concept of "knowledge segregation" - how previously, knowledge stayed within factory walls, but modern technology allows it to flow globally, fundamentally changing how companies operate. 🌍 Baldwin challenges the traditional "North-South" divide in global economics, showing how countries like China and India have created new "factories" of their own, leading to what he calls "expanded industrialization." 🔄 The book demonstrates how the "smile curve" of value creation has deepened over time, with high-value activities (R&D and marketing) becoming more valuable while manufacturing becomes less profitable in relative terms.