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IQ and the Wealth of Nations [Hardcover]

Richard Lynn , Tatu Vanhanen
3.5 out of 5 stars  See all reviews (43 customer reviews)

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Book Description

February 28, 2002 027597510X 978-0275975104

Lynn and Vanhanen test the hypothesis on the causal relationship between the average national intelligence (IQ) and the gap between rich and poor countries by empirical evidence. Based on an extensive survey of national IQ tests, the results of their work challenge the previous theories of economic development and provide a new basis to evaluate the prospects of economic development throughout the world.

They begin by reviewing and evaluating some major previous theories. The concept of intelligence is then described and intelligence quotient (IQ) introduced. Next they show that intelligence is a significant determinant of earnings within nations, and they connect intelligence with various economic and social phenomena. The sociology of intelligence at the level of sub-populations in nations is examined, and the independent (national IQ) and dependent (various measures of per capita income and economic growth rates) variables are defined and described. They then provide empirical analyses starting from the 81 countries for which direct evidence of national IQs is available; the analysis is then extended to the world group of 185 countries. The hypothesis is tested by the methods of correlation and regression analyses. The results of statistical analyses support the hypothesis strongly. The results of the analyses and various means to reduce the gap between rich and poor countries are discussed. A provocative analysis that all scholars, students, and researchers involved with economic development need to confront.


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Editorial Reviews

Review

"Endorsement From J. Phillippe Rushton Fellow, John Simon Guggenheim Foundation Professor of Psychology, University of Western Ontario: [A] brilliant integration of economics and psychology that illuminates the nexus between mental ability on the one hand, and national wealth, industrial productivity, and well being, on the other. This is a book that social scientists, policy experts, and global investment analysts cannot afford to ignore....Richard Lynn and Tatu Vanhanen's thesis is stunningly engineered to allow for no error of inference and no possible outcome than the correct one, strangely overlooked until now...IQ and the Wealth of Nations does for the study of human diversity and achievement among nations what The Bell Curve did for IQ and achievement in the USA.

About the Author

RICHARD LYNN is Professor Emeritus of Psychology, University of Ulster, Northern Ireland.

TATU VANHANEN is Professor Emeritus, Department of Political Science, University of Tampere and Docent Emeritus, Department of Political Science, University of Helsinki, Finland.


Product Details

  • Hardcover: 320 pages
  • Publisher: Praeger (February 28, 2002)
  • Language: English
  • ISBN-10: 027597510X
  • ISBN-13: 978-0275975104
  • Product Dimensions: 6.3 x 1.1 x 9.1 inches
  • Shipping Weight: 1.4 pounds (View shipping rates and policies)
  • Average Customer Review: 3.5 out of 5 stars  See all reviews (43 customer reviews)
  • Amazon Best Sellers Rank: #1,410,364 in Books (See Top 100 in Books)

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Customer Reviews

Because it is expensive, because it is stuffed with data and references, and because it is very dry. Richard W. Stewart  |  7 reviewers made a similar statement
I urge all readers to buy book and read it for themselves. Darwin Bronowski  |  9 reviewers made a similar statement
Most Helpful Customer Reviews
165 of 190 people found the following review helpful
5.0 out of 5 stars World-Historical Importance? April 21, 2002
Format:Hardcover
The book's content is irresistible - at its heart is a table of the average IQ scores of 81 different countries, drawn from studies published in peer-reviewed scientific journals. The national average IQs range from 107 for Hong Kong to 59 for Equatorial Guinea.

Lynn and Vanhanen benchmarked their IQ results so that Britain is 100. America scores 98 on this scale, and the world average is 90. IQ's are assumed to form a normal probability distribution ("bell curve") with the standard deviation set at 15. Here are a few examples:


Nation Avg. IQ
Eq. Guinea 59
Nigeria 67
Barbados 78
Guatemala 79
India 81
Iraq 87
Mexico 87
Argentina 96
US 98
China 100
UK 100
Italy 102
Japan 105
Hong Kong 107

Admit it, you want to know what the rest of the table says! Beyond satisfying sheer curiosity, though, the strong correlation between IQ and the wealth of nations is of world-historical importance. From now on, no public intellectual can seriously claim to be attempting to understand how the world works unless he takes IQ into account.

How much can we trust these IQ results?

As soon as I received the book, I turned to Appendix 1, where Lynn and Vanhanen describe all 168 national IQ studies they've found - an average of just over two per country.

Are the results internally consistent? In other words, when there are multiple studies for a single country, do they tend to give roughly the same answer?

I expected a sizable amount of internal divergence. I spent 18 years in the marketing research industry, so I know how expensive it is to come up with a nationally representative sample. Further, Lynn and Vanhanen use results from quite different IQ tests. They rely most on the non-verbal Raven's Progressive Matrices, which were designed to be used across cultures, even by illiterates. Yet, they also have a lot of results from the Wechsler exams, which are more culture dependent - the Wechsler include a vocabulary subtest, for example. And they report results from other IQ tests, including a few from the oddball Goodenough-Harris Draw-A-Man test. Also, sample sizes vary dramatically, from a few dozen in some obscure countries to 64,000 for one American study. Finally, some studies were of children, others of adults.

This doesn't sound promising. Nevertheless, the results show a high degree of internal consistency. Here are the first eight countries for which they have multiple scores:

Argentina: 93 and 98
Australia: 97, 98, and 99
Austria: 101, 103
Belgium: 99, 103, 98
Brazil: 88, 84, 90, and 85
Bulgaria: 94, 91
China: 100, 92.5, 103.4
Democratic Republic of Congo: 73, 72

That's not bad at all. In fact, leaving aside China, the results are remarkably consistent. There are, of course, a few countries for which different studies came up with quite divergent results, especially Poland, where the two scores Lynn and Vanhanen found were 92 and 106. Still, the correlation among results when there are two or more studies for a country is a striking 0.94.

You shouldn't take every score on faith. The reported IQ for Israel (only 94????!!!) has elicited much criticism. Lynn has replied that he wanted to publish the data as he found it, even if some of it looked implausible. His hope is to encourage further research to resolve seeming anomalies.

The IQ structures of the two giga-countries, China and India, demand more intense study, in part because the future history of the world will hinge in no small part on their endowments of human capital. The demography of India is especially complex due to its caste system, which resembles Jim Crow on steroids and acid. By discouraging intermarriage, caste has subdivided the Indian people into an incredible number of micro-races. In India, according to the dean of population genetics, L.L. Cavalli-Sforza, "The total number of endogamous communities today is around 43,000..." We know that some of those communities - such as the Zoroastrian Parsees of Bombay - are exceptionally intelligent.

But we can't say with any confidence what is the long run IQ potential of Indians overall. Their current IQ score (81) is low, especially compared to China (100), the other country with hundreds of millions of poor peasants. Yet, keep in mind just how narrow life in rural India was for so long. In 1952, on the fifth anniversary of independence, the Indian government commissioned a survey to find out if the average Indian villager had heard yet that the British had gone. The study was quietly cancelled when early results showed that the average villager had never heard that the British had ever arrived!

It appears likely that some combination of malnutrition, disease, inbreeding, lack of education, lack of mental stimulation, lack of familiarity with abstract reasoning and so forth can keep people from reaching their genetic potential for IQ. Lynn himself did early studies demonstrating that malnutrition drives down IQ. The co-authors conclude their book by recommending that

"The rich countries' economic aid programs for the poor countries should be continued and some of these should be directed at attempting to increase the intelligence levels of the populations of the poorer countries by improvements in nutrition and the like."

A clear example of how a bad environment can hurt IQ can be seen in the IQ scores for sub-Saharan African countries. They average only around 70. In contrast, African-Americans average about 85. It appears unlikely that African-Americans' white admixture can account for most of this 15-point gap because they are only around 17%-18% white on average, according to the latest genetic research. (Thus African-Americans white genes probably couldn't account for more than 3 points of the gap between African-Americans and African-Africans.) This suggests that the harshness of life in Africa might be cutting ten points or more off African IQ scores.

Similarly, West Africans are significantly shorter in height than their distant cousins in America, most likely due to malnutrition and infections. The two African-born NBA superstars, Hakeem Olajuwon and Dikembe Mutombo, are both from the wa-benzi [people of the (Mercedes ) Benz]upper class. Only the elite in Africa gets enough food and health care to grow up to be NBA centers.

This also implies that African-Americans might be able to achieve higher IQs too, although the environmental gap between white Americans and black Americans appears to be much smaller than between black Americans and black Africans. As I pointed out in VDARE in 2000, the most promising avenue for improving African-Americans' IQs is by promoting breastfeeding among blacks mothers, who nurse their babies at much lower rates than whites.

In fact, we know that IQ is not completely fixed over time because raw test scores have been rising for decades, about 2 to 3 points per decade. To counteract this, the IQ test-making firms periodically make it harder - in absolute terms - to achieve a score of 100. Lynn was possibly the first scientist to make this phenomenon widely known, although New Zealand political scientist James Flynn has gotten more credit for this recently. And, indeed, Lynn and Vanhanen scrupulously adjust the test results in their book to account for when each test was taken.

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103 of 127 people found the following review helpful
5.0 out of 5 stars World Average IQ Equals 90. March 8, 2002
Format:Hardcover
This brilliantly conceived, superbly-written, path-breaking book, does for the global study of economic prosperity what Herrnstein and Murray's (1994) The Bell Curve did for the USA. IQ and the Wealth of Nations examines IQ scores and economic indicators in 185 nations. It shows that national differences in wealth are explained first, by the intelligence levels of the populations; second, by whether the countries have market or socialist economies; and finally, by unique circumstances such as, in the case of Qatar, by sitting atop a sea of oil.

One striking fact is that the average national IQ of the world is 90. Few nations have IQs equal or near the British average of 100 (less than 20%). The highest average IQs are found among the Oriental nations of North East Asia (IQ = 104), followed by the European nations (IQ = 98), and the mainly White populations of North America and Australasia (IQ = 98), the nations of South and Southwest Asia from the Middle East through Turkey to India and Malaysia (IQ = 87), the nations of South East Asia and the Pacific Islands (IQ = 86), the nations of Latin America and the Caribbean (IQ = 85), and finally by the nations of Africa (IQ = 70). Because many nations have IQs of 90 or less (almost 50%), this poses a serious problem if the book's conclusion that IQ = 90 forms the threshold for a technological economy is correct. IQs can vary greatly within a geographic region. In Latin America and the Caribbean, IQs range from 72 in Jamaica to 96 in Argentina and Uruguay, and appear to be due to the racial and ethnic make-up of the populations.

... Mean national IQ correlates 0.71 with per capita Gross National Product (GNP) for 1998, and 0.76 with per capita Gross Domestic Product (GDP) for 1998, and that national IQs predict both long term (1820-1922) and short term (1950-90; 1976-1998) economic growth rates measured variously by per capita GNP and GDP (mean rs ~ 0.60). Lynn and Vanhanen prove that the widespread though rarely stated assumption of economists and political scientists that all peoples and nations have the same average IQ is wildly wrong. They document that IQs predate earnings, are heritable, and are stable from age 5 onwards, and predict educational level and many other positive outcomes as evidence that IQ is the cause, not antecedent. The take home message of IQ and the Wealth of Nations is that national differences in IQ are here to stay and so is the gap between the rich and the poor nations.

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35 of 41 people found the following review helpful
4.0 out of 5 stars IQ and national prosperity -- a problem solved December 14, 2002
Format:Hardcover
This book must be a good candidate for being the most important book of the 21st century. British psychologist Richard Lynn and Finnish political scientist Tatu Vanhanen find that recent IQ data from scores of countries world-wide show really strong correlations, of around r = .65, with national prosperity -- whether Gross Domestic Product (GDP) is estimated for 1820 or for the 1990s. Quite contrary to the theorizing of most Western economists of the past fifty years, the underdeveloped (later, 'developing') countries of fifty years ago have not generally closed the gap with the help of ongoing Western handouts and advice. Clearly, several East Asian countries have in that time made enormous strides -- as may also happen soon in the ex-Communist countries of Eastern Europe; but in the countries of sub-Saharan Africa (i.e. largely Black Africa), mean IQ estimates hover around 70 and progress has been slight. Of the world's 21 countries which steadily tripled their GDP from 1983 through 1990 and 1993 to 1996, none was on or near the African mainland; whereas of the 27 countries whose GDP decreased by 50%, ten were African (Angola, Burkina Faso, Congo, Guinea-Bissau, Libya, Madagascar, Somalia, Sudan, Zambia and Sao Tome & Principe).

Yet will L&V prove persuasive about causation? Doubters will raise four particular problems.
First, IQ and the Wealth of Nations is published by an American mail order house which charges heavily for the book. Terrorized by the politically correct, mainstream Western 'publishers' have for ten years been entirely unwilling to bring out books that touch on race - whether by Arthur Jensen, Phil Rushton or myself. Recently, it turned out that top psychologist Steven Pinker (Massachusetts Institute of Technology), who had converted to hereditarianism after hearing from friends how a second child was often very different from a first, felt he had to remove a chapter about race from the final draft of his new pro-heredity book, The Blank Slate. L&V are not alone in finding themselves up against the Zeitgeist, and the reception of their book has not so far been auspicious. L&V's reply will have to be that such repression indicates that the liberal-left consensus (which in 1950 persuaded the United Nations to declare all races to be of equal intelligence) is a hysteria that must one day lift.

Secondly, some will doubtless try to quibble with the IQ estimates that are the central novelty of IQ and the Wealth of Nations. L&V typically present some three 'normative' IQ studies for each of the countries they discuss; they do not provide details of social sampling; and they estimate IQ's for some nations by taking the average of the IQs in neighbouring countries - e.g. crediting Afghanistan with IQ 83 as an average of India's 81 and Iran's 84. Surprisingly, L&V maintain that the mean IQ in Israel is only 94 - ignoring the possibility that Sephardic Jews, like other Africans, may have special deficits in the visuo-spatial abilities that are needed to do well on 'culture-fair' intelligence tests like the famous Raven's Matrices. None of this is ideal. However, L&V have a very strong reply from both the general consistency of their IQ estimates and the sheer strength of IQ's correlations with national productivity. If workers had seriously confounded their assessments of national IQ, L&V would simply have had to present the usual miserably low correlations of around .25 that obtain throughout psychology and the social sciences. As it is, L&V have plainly struck gold.

Thirdly, there is the question of cause and effect. Can L&V convince us that IQ actually causes national wealth, rather than vice versa? The literature on the causal importance of IQ is only partially covered here, and L&V settle rather easily for the view that IQ and wealth will both tend to cause each other. This concession will weaken their case in the eyes of those who already deplore the idea that IQ is causal. L&V would have done better to point to the exceedingly slight IQ advantages accruing to Black children in the USA even when their fathers are seriously rich, and to the failure of the American Black-White gap in intelligence to decrease despite many billions of American dollars being thrown at the problem for the past forty years. Even a century of national impoverishment does not lower IQ -- as shown by the cases of mainland China, Poland and Russia in L&V's own data. By contrast, IQ correlates .50 with individual upward social mobility, relative to the position of the testee's father (Touhey, 1972). The simple truth is that a normal national IQ is necessary though not sufficient for prosperity; and that a low IQ holds whole countries back even if individuals can compensate for dullness by good looks or hard work. Neglecting such points, as also the full range of arguments that race differences are of substantially genetic origin, L&V will have partly themselves to blame if their book is set aside.

Lastly, L&V show remarkable modesty about the implications of their findings. This may have been intended as placatory; but it, too, will win them few friends. Rather than stress the need for eugenics in Africa, L&V conclude their book with two bizarrely half-hearted recommendations. The first is that the West should recognize continuing IQ differences and thus continue pumping subsidies into Africa as a matter of "ethical obligation." The second is that some fraction of this conscience money should be spent not on eugenics but on "improvements in nutrition and the like." No change there, then, for this is what the West has been doing ever since it abandoned the responsible idea of empire! It is remarkable that L&V should have troubled to write a 'controversial' book which cannot be published by a mainstream publisher only to come to such feeble practical recommendations. L&V have provided a way of forgetting their book which social-environmentalist ideologues will be desperately eager to take.

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Most Recent Customer Reviews
1.0 out of 5 stars Do not waste your money
The author (Richard Lynn) published the data from 185 countries on his personal website. I can't post the URL because it's against review guidelines, but you can google his name to... Read more
Published 18 months ago by Lilac
4.0 out of 5 stars more explanation needed; and better stats also
Overall, L&V have not only a plausible but a basically correct thesis that needs to be considered: IQ has a positive and explanatory effect on national wealth, and vice versa (by... Read more
Published on February 13, 2011 by big reader
4.0 out of 5 stars Fascinating and controversial
Utterly fascinating and thought provoking. Do entire populations around the world have completely different chances of improving their lives based on differences in IQ? Read more
Published on October 25, 2010 by Reader
1.0 out of 5 stars Please avoid this book.
This book is offensive and have little historical pertinence to the topic.
The author recently wrote and article for an Italian news paper and he continued writing about how... Read more
Published on February 20, 2010 by Simone Vitale
5.0 out of 5 stars A landmark book
Since about 25 years of IQ-research, this is the only book which is making a substantial difference. Read more
Published on August 23, 2008 by Volkmar Weiss
5.0 out of 5 stars Genetic Engineering Will Equalize World's IQ At 200 And Beyond
As a bioengineering student, I have become convinced that this new and exciting science will soon begin to identify groups of genes that increase intelligence, and that people will... Read more
Published on March 2, 2008 by Bioengineer
5.0 out of 5 stars A dagger in the heart of equalitarians
This book has, not surprisingly, aroused a great deal of controversy. The thesis is fairly simple: I.Q. Read more
Published on February 28, 2008 by Alexander Kemestrios Ben
2.0 out of 5 stars Interesting but probably rendered obsolete by the Flynn effect
This is an unfair review since this book was published back in 2002, but the key ideas of this book may have been rendered obsolete by James Flynn's new paradigm on IQ, which he... Read more
Published on December 8, 2007 by rickzz
1.0 out of 5 stars The rebuttal for a terrible book...
In this book, Lynn and Vanhanen argue that the great variation in the per capita wealth of nations is caused by the differences of the mental capacity between poor and rich... Read more
Published on August 22, 2007 by Vangel Vesovski
2.0 out of 5 stars Lies, Damned Lies and Statistics
Well.. What is IQ? Even relatively speaking, it should only classify people between Haves and Have Nots. Its low IQ to think that national IQ average can predict wealth of nations.
Published on August 18, 2007 by Vikas Bodani
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