We today, tend to take the benefits of specialization for granted. Con-sider if we were required to make for ourselves even what we today see as simple everyday things, (sewing needles, nails, safety razors, injections syringes, window glass and so on, let alone more complicated and technologically advanced products). Could we even dream of matching the standards and specifications set by the manufacturers of such products who specialize in making them and offering them to trade?

It is through Trade and, the specialization that it encourages, that civilization developed. Ancient India became prosperous only through trade with the Greeks, the Romans, the Middle Eastern countries, the South-east Asian countries and even with China amongst others. Even the recent past, from just before the Industrial Age till today, clearly demonstrates the benefits of Trade and specialization and also, the benefits of encouraging immigration of Talent. The larger and more diverse the trading community, the greater the benefits and prosperity that trade brings. Today global reach encourages us to trade globally and encourage immigration of skilled and talented people from across the globe.

It is the cumulative accretion of knowledge and skills by specialist producers that allows each of us to consume more and more different things by each producing fewer and fewer, ever newer and better things to exchange for the other things we desire.

Ofcourse, to cater against risk of monoculture and the collapse of what you are dependent on others for; it is also, necessary to encourage some local niche production even of items or crops that you could otherwise better source elsewhere. Such local production capacity allows for access to greater variety of items and also, to the capacity to be scaled up as necessary to better sustain themselves during times of severe breakdown in the usual sources of supply. Therefore, spread the risk, keep some niche sources of supply domestic and other wide spread across the region or even the globe. But such local production, even of items better produced / sourced from elsewhere, cannot be made a substitute for all imports without the loss of the advantages of specialization and Trade.

To jump to the conclusion that allowing the import of goods will automatically destroy the local industry is also, wrong. Actually, the reality is that if others can produce goods at so much lesser cost that even with he additional transportation costs etc., they are cheaper than the locally produced goods, speaks poorly of our producers. These few incompetent producers seek to be allowed to protect their profits by compelling the consumers to pay more for their goods, by calling for protectionism and thus denying the consumer access to cheaper, and perhaps even better-quality goods. The amount that the many more consumers would each save on their purchases, if they were allowed to get their goods from whom ever supplied them at the lowest cost, if totalled would far outweigh the loss to the few producers unable to complete. Such incompetent producers would have to either measure up or quit or take up producing other goods where they can demonstrate an advantage and compete.

Ofcourse, if however, the inability to compete is because of subsidies given to the producers in other countries, or lower rates of interest offered to them, or because of other more conducive policies for business, then the answer lies not in calls for protectionism but in calls to also, change our policies and practices to allow our producers to compete on a level playing field. (See- ”lnter-se Valuation of Currency & monetizing a portion of even private and temple gold & silver holdings.”)

By exchanging, humans discovered ‘the benefits of the divisions of labour: the specialization of efforts and talents for mutual gain… specialization encouraged innovation. The saved time and prosperity is simply Time saved, which is proportional to the division of labour. The more human beings divided as consumers and specialized as producers, and the more they exchanged, the better off they have been.” – Matt Ridley

Now how does one get a greater opportunity to realize what one is best at and be able to arbitrage that capability to get to best meet one’s needs as above? Trade what you are ‘Best’ at, in exchange for what others are ‘Best’ at, so that all you have is of the ‘Best’. You also, need to be able to meet your needs as above, with the least amount of time spent, so that you have more Time available to choose to spend doing other activities that add to your happiness. Trading allows you such an opportunity.

Let us now consider what development, wealth / prosperity and happiness, truly mean and from what or how does each of them arise.

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