That second question is most irksome. The “right” answer is the conventional wisdom that what holds poor nations back is the shortage of formal education. In his most insightful book The Power of Productivity, however, William Lewis, who spent a lot of time in poor countries, argued that more education was not what they need. Rather, those countries would benefit most if government would reduce its drag on the economy — taxing poor people so that politicians and bureaucrats can live well — and establish secure property rights. With those changes, people will make whatever human capital investments are best for them without much help from the state.