The New Role of Banks for Financing Education and Inner Growth of Societies

Abstract

The future of world development depends on the monetary policies of banks and their central banks. The conventional view is as follows: The more money that is invested in future projects, the more income is generated which, in turn, stabilizes societies. The stability of societies depends on the money spent by central banks. Since the early 2010s the central banks flooded the markets in hopes cheap money will find its way through the system to finance future projects. The author has presented in several new papers published on SSRN a simple formula that shows the quantitative relationship between prosperity (income growth) and qualified education. This insight opens a new perspective of how bank financing can lead to a prosperous world economy when individual learning performance is financially rewarded. The proposed concept also opens new possibilities for developing countries by financing the education efforts of young people directly. With this, the developing country receives as much hard currency for buying needed products as their young people produce knowledge. The papers describe how an ISO-Standard could establish the fundamental framework for banks to finance certified education courses. It is furthermore explained why it is a historically unique opportunity for the US and the EC to combine TTIP negotiations with negotiations on how to promote world-wide education. In other words, it is proposed how the banking system promotes and supports the education system of societies and how that stabilizes the world economy and in turn stabilizes political systems.