How an Economy Grows and Why It Crashes

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I N F R A S T R U C T U R E   A N D   T R A D E
One hundred miles from Bongobia, the island of Dervishia 
was populated by natives who were smitten with bongos. 
Unfortunately, their environment lacked the right kind of 
trees to make them. As a result, on Dervishia bongos were 
a scarce and valuable trade good. What the Devirshes did 
have was an abundance of coconut tanning oil. But the dark- 
skinned Dervishes had no need for UV protection, so tanning 
oil was nearly worthless to them.  
But as fate 
would have it, the 
fair-skinned Bongobians suffered 
from chronic sunburn due to the island’s unrelentingly 
sunny weather.
When the two islands fi nally made contact with one another, 
they instantly developed a robust trade in bongos and tanning 
oil. Each island used its competitive advantage to send the 
other island products that were more valuable overseas than 
they were at home. In this symbiotic arrangement, both 
islands benefi ted. Living standards rose…and well-toned 
drumming was achieved by all.

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