9.1 Education Shapes the Individual

For centuries, the Roman Empire extended to all areas around the Mediterranean (northern Africa, Arabia, Mesopotamia, Turkey, most of Europe and up to the middle of England). The people in this huge empire and most probably in the neighboring regions intermarried. For example, the legions stationed in one region had to come from a different part of the empire. As a result, the gene pool of all these people in the territory of the former Roman Empire will be similar (today this territory includes countries in and around Europe). From a statistical point of view every newborn has about the same genetic starting point and the distribution of intellectually, technically or manually skilled people is similar.

However, after birth, people develop differently. In particular, the brain develops according to how it is used. The parts of the brain which are used more often develop at a higher rate and become more agile than those areas that are rarely used. We also know that well into old age, new brain cells develop to strengthen areas of the brain that are heavily used. Should a part of the brain cease to function because of an accident, another part of the brain may take over its role. In doing so, it can grow, and new brain cells are created to fulfill this function. The brain of a person who has been taught and educated from the very beginning has trained the capacity to absorb knowledge. The brain of a person who has had to deal with violence from an early age can deal with it better. Education is important. If a person’s brain has been exposed to education, it values its importance and is motivated to learn. Such people are more likely to take an interest in their own education and be committed to supporting education in their country as well.Footnote 1

Education is provided in the form of schooling and is also embedded in the family and culture. Culture is a value system that defines opinions and rules of behavior that can accelerate, delay or even prevent development. Culture forms human beings.

9.2 Education as a Prerequisite for Prosperity

Education is one of the most important prerequisites for prosperity and peace. Only the best schools and educational systems in the world will lead to the highest possible standard of living. If education is neglected, a downward trend will begin.

Inertia in education—perhaps as a result of prosperity—is catastrophic.

Education and culture are also important in developing countries in order to ensure a successful path to prosperity. There are studiesFootnote 2 that view culture in terms of values and norms of behavior and see it to be the deciding factor between successful nations and those that are not successful. Educated citizens are the foundation for prosperity because they question culture and do not see it as a God-given system of thought and behavior. In particular, culture should encourage entrepreneurship. If entrepreneurship is suppressed, prosperity is not possible. Ultimately, what is important is the spirit of innovation as well as work, thriftiness, honesty, patience and persistence—in other words, Calvinist ethics as we know them in Central and Northern Europe.

9.3 Regulatory Hurdles

As the average intelligence of all humans is the same at birth, difference in economic development cannot be attributed to genetic make-up (I am avoiding the word “race”). This difference is dependent on other factors such as education, culture, and infrastructure as well as all the other basic conditions offered by the government to those who aspire to develop themselves. Economic development depends on whether or not it takes only a few days, several weeks, or even several months to found a new company. It depends on whether entrepreneurs will encounter numerous regulatory obstacles or if they have to apply for numerous permits before they can finally start a business (for more on the effects of regulatory density on prosperity see Sect. 6.4).

9.4 Foundation for Democracy

Education provides an essential foundation for democracy. It is only when people can deal with a high degree of information and can understand the relationships between issues that they will be able to assess whether their decision will have a positive or negative effect on the future. Furthermore, it is only if they are able to expose populists and make decisions in a democratically proven manner that they will elect people who not only pursue their own interests but the interests of everyone.Footnote 3 There are those who believe that a government made of well-educated technocrats can achieve better results than an elected government. This may be true in theory; however, in practice, it is unlikely that such an altruistic government could exist and still satisfy people’s need to live in a self-determined democracy. After all, democracy is a part of freedom and self-determination contributes to contentment.

9.5 Free of Charge

Equal opportunity can only be guaranteed if a free education is made available to everyone (see Sect. 6.6). This requires government funding. In countries where only the children of wealthy parents receive a good education because only the rich can afford it (in some cases even in the USA), equal opportunity is not possible.