Until the 1960s, Japan was an amazing place to live. One did not have to lock one’s house, car, or bicycle, as nobody was going to steal anything. Theft, burglary, and cheating were virtually non-existent in the Japanese society of those days. Imagine how much resources this saved, as the Japanese did not have to employ guards, they did not have to install alarm systems, they even did not need to buy locks.

When Ukrainian President Victor Yanukovich decided not to sign the association agreement with the European Union and instead opted for a Russian package of long-term economic support, many Ukrainians perceived this not to be a purely economic decision. Rather, they feared this to be a renunciation of Western cultural and political values, and – to put it mildly – were not happy about this development.

When I think about the lack of human capital in Georgian agriculture, I am reminded of the 1997 Georgian movie “The Turtle Doves of Paradise”, directed by Goderdzi Chokheli. In a Soviet village, an ex-priest decides to teach basic knowledge to old peasants. He wants them to learn to read, write, and elementary calculations skills.

Many of us have been lucky to be taught by great teachers, teachers who did not just teach, but inspired and brought out the best in us. Indeed, it is hard to overestimate the impact (positive and negative) of teachers on the children’s minds, their career prospects, and aspirations.

When economists speak about education and human capital, they usually mean formal education. It is provided in schools and universities by formally qualified teachers. These are imparting knowledge that is laid down in curricula, and the result of the learning process is testified by certificates and diplomas conferred to those students who passed exams.