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On his return from Africa in 1903, following his involvement in the Boys Brigade as Brigade Secretary and Officer in charge of its scouting section, with encouragement from his friend, William Alexander Smith, Baden-Powell decided to re-write Aids to Scouting to suit a youth readership. In August 1907 he held a camp on Brownsea Island for twenty-two boys from local Boys Brigade companies and sons of friends of Baden-Powell's from public schools Eton and Harrow to test out the applicability of his ideas. The first book on the Scout Movement, Baden-Powell's Scouting for Boys was published in six instalments in 1908.

Boys and girls spontaneously formed Scout troops and the Scouting Movement had inadvertently started, first as a national, and soon an international obsession. The Scouting Movement was to grow up in friendly parallel relations with the Boys' Brigade. A rally for all Scouts was held at Crystal Palace in London in 1909, at which Baden-Powell discovered the first Girl Scouts. The Girl Guide Movement was subsequently founded in 1910 under the auspices of Baden-Powell's sister, Agnes Baden-Powell.

In 1920, the 1st World Scout Jamboree took place in Olympia, and Baden-Powell was acclaimed Chief Scout of the World. Baden-Powell was created a Baronet in the 1921 New Year Honours and Baron Baden-Powell, of Gilwell, in the County of Essex, on 17 September 1929, Gilwell Park being the International Scout Leader training centre. After receiving this honour, Baden-Powell mostly styled himself "Baden-Powell of Gilwell".

Baden-Powell also had a positive impact on improvements in youth education. Under his dedicated command the world Scouting Movement grew. By 1922 there were more than a million Scouts in 32 countries; by 1939 the number of Scouts was in excess of 3.3 million.

At the 5th World Scout Jamboree in 1937, Baden-Powell gave his farewell to Scouting, and retired from public Scouting life. 22 February, the joint birthday of Robert and Olave Baden-Powell, continues to be marked as Founder's Day by Scouts and Thinking Day by Guides to remember and celebrate the work of the Chief Scout and Chief Guide of the World.

In his final letter to the Scouts, Baden-Powell wrote:

 

...I have had a most happy life and I want each one of you to have a happy life too. I believe that God put us in this jolly world to be happy and enjoy life. Happiness does not come from being rich, nor merely being successful in your career, nor by self-indulgence. One step towards happiness is to make yourself healthy and strong while you are a boy, so that you can be useful and so you can enjoy life when you are a man. Nature study will show you how full of beautiful and wonderful things God has made the world for you to enjoy. Be contented with what you have got and make the best of it. Look on the bright side of things instead of the gloomy one. But the real way to get happiness is by giving out happiness to other people. Try and leave this world a little better than you found it and when your turn comes to die, you can die happy in feeling that at any rate you have not wasted your time but have done your best. 'Be Prepared' in this way, to live happy and to die happy — stick to your Scout Promise always — even after you have ceased to be a boy — and God help you to do it.