The Lexus and the Olive Tree

The Lexus and the Olive Tree

Author	Thomas L. Friedman
Country	United States
Language	English
Subject	International economic relations Free trade Capitalism–Social aspects Technological innovations–Economic aspects Technological innovations–Social aspects Intercultural communication Globalization United States–Foreign economic relations
Publisher	Farrar, Straus and Giroux
Publication date	1999
Media type	Hardcover
Pages	394
ISBN	0-374-19203-0
OCLC	40609510
Dewey Decimal	337 21
LC Class	HF1359 .F74 1999
Preceded by	From Beirut to Jerusalem
Followed by	Longitudes and Attitudes

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.

Narrative

Friedman explains "globalization" by recounting 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 introduces 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."

Golden Arches theory

Perhaps the most famous theory presented in this book is the capitalist peace theory called the Golden Arches Theory of Conflict Prevention. the following observation was presented:

"No two countries that both had McDonald's had fought a war against each other since each got its McDonald's". He supported that observation, as a theory, by stating that when a country has reached an economic development where it has a middle class strong enough to support a McDonalds network, it would become a "McDonald's country", and will not be interested in fighting wars anymore.

Friedman's point is that due to globalization, countries that have made strong economic ties with one another have too much to lose to ever go to war with one another. Regardless of whether the statement is true, the conclusions to be drawn are unclear. The global expansion of McDonald's restaurants is a relatively recent phenomenon when put into the context of the history of warfare, and, with a few notable exceptions, has proceeded into relatively stable markets.

Shortly after the book was published, NATO bombed Yugoslavia. On the first day of the bombing, McDonald's restaurants in Belgrade were demolished by angry protesters and were rebuilt only after the bombing ended. In the 2000 edition of the book, Friedman argued that this exception proved the rule: the war ended quickly, he argued, partly because the Serbian population did not want to lose their place in a global system "symbolised by McDonald's" (Friedman 2000: 252–253).

Critics have pointed to other conflicts as counterexamples, depending on what one considers "a war":

• The 1989 United States invasion of Panama
• In 1999, India and Pakistan fought a war over Kashmir, known as the Kargil War. Both countries have (and continue to have) McDonald's restaurants. Although the war was not fought in all possible theatres (such as Rajasthan and Punjab borders), both countries mobilised their military all along their common borders and both countries made threats involving their nuclear capabilities.
• The 2006 war between Israel and Lebanon, following hostilities ongoing since 1973, with South Lebanon occupied until May 2000. (McDonald's franchises were established in Israel and Lebanon in 1993 and 1998, respectively.) However, the Lebanese Armed Forces were not a party to the fighting, the Israel Defense Forces action being taken instead against the paramilitary group Hezbollah.

• The 2008 South Ossetia war between Russia and Georgia. Both countries had McDonald's at the time (restaurants began in the two countries in 1990 and 1999, respectively).^[1]

• The 2014 Crimean crisis between Russia and Ukraine. Both countries had McDonald's at the time.

In the 2000 edition of the book, 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."^[2]

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.^[3]

In 2005, Friedman said that he framed this theory in terms of McDonald's Golden Arches "with tongue slightly in cheek".^[4] In his 2005 book The World is Flat he offered an updated theory he labelled the Dell Theory of Conflict Prevention.

See also

• Technocapitalism
• List of countries with McDonald's franchises
• Islam and modernity
• The End of History and the Last Man

Books:

• Jihad vs. McWorld
• The World Is Flat

References

External links

• Official page on author's site
• Review in Policy Review by Holman W. Jenkins, Jr.
• Review in Washington Monthly by Paul Krugman
• Summary on BizSum
• Summary by Tom Allen