I would say it's one very important factor among others. Ray Dalio outlines many of the factors involved in nations rising and falling, including education in a freely available online book. I've found it an interesting read, although he takes a while to get to the point.[1]

[1] https://www.principles.com/the-changing-world-order/

You still need a government that can get out of it's own way, legislatively, while still providing an environment (or the right incentives for one) where business can and does get done.

Among many things. Recent governments in the US have been very ineffective. Legislators are more interested in making each other look bad than actually doing their job.

> Good education system does not neatly translate to, say, economic success.

If you think anyone said that, you should probably talk less and read more. Because it doesn't appear you're competent in either.

Education is necessary but not sufficient.

That's a bit harsh. The OP has a good point, and he's not mischaracterizing anyone's argument. Please re-read the HN guidelines about being civil.