Economic freedom and educational opportunity

Education policymakers around the world often overlook a simple formula: To increase educational opportunity, increase economic development.But to improve development, a country needs the institutions that promote it. That’s why nations that want to help more children succeed should pursue economic freedom.The latest Economic Freedom of the World report from the Fraser Institute tells the story clearly. The highest-ranked 25% of countries for economic freedom dramatically outperform the lowest-ranked 25%. Incomes are seven times greater, while people work six fewer hours per week. People live 14 years longer. Fewer children die in infancy, and environments are cleaner. Economic freedom translates into education and economic opportunity. Fewer students in developing nations will drop out in middle school to go to work. More families will be able to afford transportation to school. There will be more opportunities for graduates to get more productive, higher-paying jobs.Take, for instance, Kurdistan in Iraq, which is focusing more on education now. Iraq ranks 159 out of 165 countries for its legal system and property rights, 152 for size of government, 141 for sound money, 149 for regulation of the economy, and 129 for freedom to trade internationally.Imagine how many more students in Kurdistan could finish school with a great education if incomes were seven times higher. Imagine the hard trade-offs today that would not be necessary if Iraq were richer.This point holds worldwide. What would best help a country’s children receive a strong education in the long run? Focus first of all on the country’s economic and legal institutions.Education is about making plans for society’s future. That means a small government with reliable courts, sound money, secure property rights, and free competition.Economic development doesn’t automatically mean more government funding for government schools. In many countries, it can mean trusting families with education dollars to choose what is best for their own children.Indeed, parents are a great education resource. They are the first line of influence to keep their children on track for success, and you don’t even have to pay them a salary.Governments can do more to consider how to empower parents and teachers. Families know their own children the best. Teachers know their own students as individuals far better than a national government or the United Nations or UNICEF could ever know them.Using international aid to push an ideological agenda is the wrong policy. Education policy choices should emphasize local knowledge rather than national and international one-size-fits-all, top-down impositions.Educators also should teach economic and financial literacy. The scientific evidence is decisive that socialism fails and market economies succeed. We mark Nov. 7 each year as Victims of Communism Day in the United States by remembering the more than 100 million people who died of starvation or were killed under communist and socialist regimes in the 20th century.On an individual level, each student should be taught the basics of economics and entrepreneurship. These lessons include the fundamentals of human action and incentives, supply and demand, and the invisible hand of Adam Smith. This also includes learning how to be alert to opportunities to create value for others in society while improving one’s own life.This education means respecting and admiring entrepreneurs. Students should understand why people should be allowed to keep the fruit of their own labor. Students also should understand the value of building capital rather than consumption if they want to prosper.TRUMP SIGNS PROCLAMATION DECLARING ELECTION WEEK ‘ANTI-COMMUNISM WEEK’To prepare students for employment and participation in society, teach economics and inspire entrepreneurship and an entrepreneurial mindset. Then the next generation will better understand the institutional reforms needed to help their country thrive.Given the results of the latest U.S. election, now that new policymakers with socialist leanings (and actual socialists) will govern in states such as Michigan, New York, California, and elsewhere starting next year, this advice is not just for other countries. It’s also for us. Will we listen?Adam Kissel is a visiting fellow in higher education reform at The Heritage Foundation.