How do you create prosperity?

I was at the Public Choice Society Meetings this weekend and listened as Randy Holcolmbe a well known public choice scholar and past president of the society present a paper on the rule of law and the size of government.  It was an interesting paper, but what struck me was not necessarily the conclusions of his paper.  It was a comment that he made that I have heard others say, and have said my self.  I know what institutions will generate growth and prosperity: private property rights, free trade, and the rule of law.  These institutions have been shown over and over again to generate growth, wealth, better health, and higher standards of living.  What we as do not know as economists is how do we create, develop, or get individuals (or governments) to adopt these policies.

This is the question I struggle with on a regular basis and one I get asked by my students.  My best answer is this is why I do what I do.  Economic literacy may be the best hope.  Educating people about how markets work, and the benefits that they can bring.  I just wish it was not such a slow process.