A new study has found that religion has played a far more significant role in the economic development of nations than many economists had long believed.
According to the researchers, religious beliefs, institutions, and traditions have shaped education, financial systems, family life, technological development, and political institutions over the centuries, ultimately influencing countries’ levels of prosperity, according to inVictory.
The study was published in May by the organization RFBerlin. It was prepared by economists Professor Sasha Becker of the University of Warwick, Professor Jared Rubin of Chapman University, and Professor Ludger Woessmann of the University of Munich.
According to the researchers, religion influences economic development not only through people’s personal beliefs but also by shaping the social norms and institutions that define the functioning of society.
The study gives particular attention to the influence of religion on financial systems. Historically, both Christianity and Islam restricted lending at interest. Although various methods of circumventing these restrictions emerged over time, the researchers argue that such prohibitions influenced the development of banking and trade for centuries.
The study also shows that religious institutions have been capable of both encouraging innovation and slowing its development. As an example, the authors cite the ban on printing books in the Arabic script in the Ottoman Empire, which remained in force for about 250 years and, in their view, delayed the spread of knowledge.
At the same time, cities with greater religious diversity often demonstrated higher levels of innovation. For example, in Prussian cities in the late nineteenth century, where representatives of different religious communities lived side by side, more invention patents were registered.
One of the study’s central themes is the relationship between religion and education. The authors argue that some religious traditions, including Protestantism and traditional Judaism, promoted the development of literacy and mathematical skills that subsequently contributed to economic growth.
The authors believe that today’s policymakers should pay greater attention to the role of religion when addressing economic challenges. In their view, governments often regard religion merely as a cultural backdrop while underestimating its influence on education, financial systems, family relationships, and state institutions.
The study also emphasizes the importance of religious freedom and tolerance. According to the researchers, societies that embrace religious diversity gain greater opportunities for the exchange of ideas and the development of innovation. By contrast, religious persecution can result in the loss of human capital, professional expertise, and social networks.
As LF previously reported, an international study examining the relationship between religious traditions and workplace culture found that many of the world’s largest companies are placing increasing emphasis on values associated with religious and moral traditions.
