Education, Religion, and Corruption/Prosperity (A), (B), (C), (1), (2)

This chapter demonstrates the influential association of Protestantism and prosperity by explaining its historical focus on education and human capital building. Historically (and statistically), one key mechanism driving prosperity/transparency has been the Protestant emphasis on literacy so as to promote reading and understanding the Bible among wider circles (Becker & Woessmann, 2009). This contrasted starkly with the Roman Catholic practice of reciting parts of the Gospel in Latin scholarly language to mostly illiterate peasants (Androne, 2014). The teaching of God’s Word in vernacular languages created linguistic and methodical skills (i.e. exegetical understanding) that proved valuable beyond the religious realm. This practice also led to the accumulation of human capital, and thereby opened and perpetuated an important educational (and hence prosperity) gap between Protestants and Roman Catholics over time. As part of the Catholic Counter-Reformation, the Jesuits have competed with Protestant education but attaching less importance to the Scriptures in their schooling. Some South American areas influenced by Jesuit missions exhibit 10–15% higher human capital and income than the surrounding Catholic populations. Yet, Jesuit instruction has been largely elitist and far less encompassing than Protestant educational coverage and accomplishment.