Why are nations like Germany and the U.S. rich? It's not primarily because they possess natural resources - many nations have those. It's primarily because of habits, values and social capital.

It's because many people in these countries, as Arthur Brooks of the American Enterprise Institute has noted, believe in a simple moral formula: effort should lead to reward as often as possible.

People who work hard and play by the rules should have a fair shot at prosperity. Money should go to people on the basis of merit and enterprise. Self-control should be rewarded while laziness and self-indulgence should not. Community institutions should nurture responsibility and fairness.

This ethos is not an immutable genetic property, which can blithely be taken for granted. It's a precious social construct, which can be undermined and degraded.

David Fuller's view I commend the rest of this column to you.

At Fullermoney, we often say that governance is everything. Good governance is a top-down process, commencing at a national level and flowing through regional, educational, corporate, community, family and individual levels.