IQ And The Wealth Of Nations
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''IQ and the Wealth of Nations'' is a 2002 book by psychologist Richard Lynn and
political scientist Political science is the scientific study of politics. It is a social science dealing with systems of governance and Power (social and political), power, and the analysis of political activities, political philosophy, political thought, polit ...
Tatu Vanhanen.Lynn, R. and Vanhanen, T. (2002)
IQ and the wealth of nations
Westport, CT: Praeger.
The authors argue that differences in national income (in the form of
per capita ''Per capita'' is a Latin phrase literally meaning "by heads" or "for each head", and idiomatically used to mean "per person". Social statistics The term is used in a wide variety of social science, social sciences and statistical research conte ...
gross domestic product Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performanc ...
) are
correlated In statistics, correlation or dependence is any statistical relationship, whether causal or not, between two random variables or bivariate data. Although in the broadest sense, "correlation" may indicate any type of association, in statistic ...
with differences in the average national
intelligence quotient An intelligence quotient (IQ) is a total score derived from a set of standardized tests or subtests designed to assess human intelligence. Originally, IQ was a score obtained by dividing a person's mental age score, obtained by administering ...
(IQ). They further argue that differences in average national IQs constitute one important factor, but not the only one, contributing to differences in national wealth and rates of
economic growth In economics, economic growth is an increase in the quantity and quality of the economic goods and Service (economics), services that a society Production (economics), produces. It can be measured as the increase in the inflation-adjusted Outp ...
. The book has drawn widespread criticism from other academics. Critiques have included questioning of the methodology used, the incompleteness of the data, and the conclusions drawn from the analysis.The Impact of National IQ on Income and Growth: A Critique of
Richard Lynn and Tatu Vanhanens Recent Book by Thomas Volken
Book Review: IQ and the Wealth of Nations
Heredity April 2004, Volume 92, Number 4, Pages 359–360. K Richardson.
The 2006 book '' IQ and Global Inequality'' is a follow-up to ''IQ and the Wealth of Nations'' by the same authors.


Outline

The book includes the authors' calculation of average IQ scores for 60 countries, based on their analysis of published reports. It reports their observation that national IQ correlates with
gross domestic product Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performanc ...
per capita at 0.82, and with the rate of economic growth from 1950 to 1990 at 0.64. The authors believe that average IQ differences between nations are due to both genetic and environmental factors. They also believe that low GDP can cause low IQ, just as low IQ can cause low GDP. (See
Positive feedback Positive feedback (exacerbating feedback, self-reinforcing feedback) is a process that occurs in a feedback loop where the outcome of a process reinforces the inciting process to build momentum. As such, these forces can exacerbate the effects ...
). The authors write that it is the ethical responsibility of rich, high-IQ nations to assist poor, low-IQ nations financially, as it is the responsibility of rich citizens to assist the poor.


National IQ estimates

The result claims that
Hong Kong Hong Kong)., Legally Hong Kong, China in international treaties and organizations. is a special administrative region of China. With 7.5 million residents in a territory, Hong Kong is the fourth most densely populated region in the wor ...
has the highest national IQ estimate with 107, followed by
South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia. It constitutes the southern half of the Korea, Korean Peninsula and borders North Korea along the Korean Demilitarized Zone, with the Yellow Sea to the west and t ...
with 106. Central to the book's thesis is a tabulation of what Lynn and Vanhanen believe to be the average IQs of the world's nations. Rather than do their own IQ studies, the authors average and adjust existing studies and use other methods to create estimates. For 104 of the 185 nations, no studies were available. In those cases, the authors have used an estimated value by taking averages of the IQs of neighboring or comparable nations. For example, the authors arrived at a figure of 84 for El Salvador by averaging their calculations of 79 for Guatemala and 88 for Colombia. Including those estimated IQs, the correlation of IQ and GDP is 0.62. To obtain a figure for South Africa, the authors averaged IQ studies done on different ethnic groups, resulting in a figure of 72. The figures for Colombia, Peru, and Singapore were arrived at in a similar manner. In some cases, the IQ of a country is estimated by averaging the IQs of countries that are not actually neighbors of the country in question. For example,
Kyrgyzstan Kyrgyzstan, officially the Kyrgyz Republic, is a landlocked country in Central Asia lying in the Tian Shan and Pamir Mountains, Pamir mountain ranges. Bishkek is the Capital city, capital and List of cities in Kyrgyzstan, largest city. Kyrgyz ...
's IQ is estimated by averaging the IQs of Iran and Turkey, neither of which is close to Kyrgyzstan—China, which is a geographic neighbor, is not counted as such by Lynn and Vanhanen. This is because ethnic background is assumed to be more important than proximity to other nations when determining national IQ. To account for the
Flynn effect The Flynn effect is the substantial and long-sustained increase in both fluid and crystallized intelligence test scores that were measured in many parts of the world over the 20th century, named after researcher James Flynn (academic), James Flyn ...
(an increase in IQ scores over time), the authors adjusted the results of older studies upward by a number of points.


Scores that do not support the theory

In several cases the actual GDP did not correspond with that predicted by IQ. In these cases, the authors argued that differences in GDP were caused by differences in natural resources and whether the nation used a planned or
market economy A market economy is an economic system in which the decisions regarding investment, production, and distribution to the consumers are guided by the price signals created by the forces of supply and demand. The major characteristic of a mark ...
. One example of this was
Qatar Qatar, officially the State of Qatar, is a country in West Asia. It occupies the Geography of Qatar, Qatar Peninsula on the northeastern coast of the Arabian Peninsula in the Middle East; it shares Qatar–Saudi Arabia border, its sole land b ...
, whose IQ was estimated by Lynn and Vanhanen to be about 78, yet had a disproportionately high per capita GDP of roughly US$17,000. The authors explain Qatar's disproportionately high GDP by its high
petroleum Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring un ...
resources. Similarly, the authors think that large resources of
diamond Diamond is a Allotropes of carbon, solid form of the element carbon with its atoms arranged in a crystal structure called diamond cubic. Diamond is tasteless, odourless, strong, brittle solid, colourless in pure form, a poor conductor of e ...
s explain the economic growth of the African nation
Botswana Botswana, officially the Republic of Botswana, is a landlocked country in Southern Africa. Botswana is topographically flat, with approximately 70 percent of its territory part of the Kalahari Desert. It is bordered by South Africa to the sou ...
, the fastest in the world for several decades. The authors argued that the
People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
's per capita GDP of at the time roughly US$4,500 could be explained by its use of a communist economic system for much of its recent history. The authors also predicted that communist nations whom they believe have comparatively higher IQs, including
China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
and
North Korea North Korea, officially the Democratic People's Republic of Korea (DPRK), is a country in East Asia. It constitutes the northern half of the Korea, Korean Peninsula and borders China and Russia to the north at the Yalu River, Yalu (Amnok) an ...
, can be expected to rapidly gain GDP growth by moving from centrally planned economies to more capitalist based economic systems, while predicting continued poverty for sub-Saharan African nations no matter what economic systems are used.


Reception and impact

Several negative reviews of the book have been published in the scholarly literature. Susan Barnett and Wendy Williams wrote that "we see an edifice built on layer upon layer of arbitrary assumptions and selective data manipulation. The data on which the entire book is based are of questionable validity and are used in ways that cannot be justified." They also wrote that cross country comparisons are "virtually meaningless." Richardson (2004) argued, citing the
Flynn effect The Flynn effect is the substantial and long-sustained increase in both fluid and crystallized intelligence test scores that were measured in many parts of the world over the 20th century, named after researcher James Flynn (academic), James Flyn ...
as the best evidence, that Lynn has the causal connection backwards and suggested that "the average IQ of a population is simply an index of the size of its middle class, both of which are results of industrial development". The review concludes that "This is not so much science, then, as a social crusade." A review by Michael Palairet criticized the book's methodology, particularly the imprecise estimates of GDP and the fact that IQ data were only available for 81 of the 185 countries studied. However, the review concluded that the book was "a powerful challenge to economic historians and development economists who prefer not to use IQ as an analytical input", but that it's likely those scholars will deliberately ignore this work instead of improving it.


By economists

In a book review for the ''
Journal of Economic Literature The ''Journal of Economic Literature'' is a peer-reviewed academic journal, published by the American Economic Association, that surveys the academic literature in economics. It was established by Arthur Smithies in 1963 as the ''Journal of Econo ...
'', Thomas Nechyba wrote that "such sweeping conclusions based on relatively weak statistical evidence and dubious presumptions seem misguided at best and quite dangerous if taken seriously. It is therefore difficult to find much to recommend in this book." Writing in the '' Economic Journal'', Astrid Oline Ervik said that the book may be "thought provoking", but there is nothing that economists can learn from it. She criticized the book's authors for not establishing cross country comparability and reliability of IQ scores, for relying on simple bivariate correlations, for not considering or controlling for other hypotheses, and for confusing correlation with causation. Ervik stated, "The arguments put forward in the book to justify such comparisons etween the average IQ in different countries and their GDPseem at best vague and unconvincing. At worst, passages in the book appear to be biased and unscientific...The authors fail to present convincing evidence and appear to jump to conclusions." Edward Miller, an economist who has published many controversial papers on race and intelligence, gave the book positive reviews in two different
white nationalist White nationalism is a type of racial nationalism or pan-nationalism which espouses the belief that white people are a Race (human categorization), raceHeidi Beirich and Kevin Hicks. "Chapter 7: White nationalism in America". In Perry, Barbara ...
publications, the ''
Journal of Social, Political, and Economic Studies The ''Journal of Social, Political and Economic Studies'' was a quarterly journal published by the Council for Social and Economic Studies. It was founded in 1976 by anthropologist Roger Pearson, and was originally published by The Council of Am ...
'' and '' The Occidental Quarterly''.


Criticism of data sets

Academic reviews of the book generally criticized both its methodology and conclusions. The methods of the study were criticized by Richard E. Nisbett for relying on small and haphazard samples and for ignoring data that did not support the conclusions.Nisbett, Richard. 2009. Intelligence and how to get it. pp. 215.
University of Reading The University of Reading is a public research university in Reading, Berkshire, England. It was founded in 1892 as the University Extension College, Reading, an extension college of Christchurch College, Oxford, and became University College, ...
geographer Stephen Morse also criticized the book (as well as ''IQ and the Wealth of Nations''), arguing that the authors' hypothesis rests on "serious flaws". Morse also argued: "The central dilemma of the Lynn and Vanhanen case rests with their assumption that national IQ data are primarily (not wholly) a function of innate ability, which in turn is at least partly generated by genes. There are many assumptions of cause–effect in here, and some of them involve substantial leaps of faith." In the 2010 paper "A systematic literature review of the average IQ of sub-Saharan Africans", also published in ''Intelligence'', Jelte M. Wicherts and colleagues stated: Lynn and Gerhard Meisenberg replied that "critical evaluation of the studies presented by WDM shows that many of these are based on unrepresentative elite samples" and that a further literature review, including taking into account results in mathematics, science, and reading, gave "an IQ of 68 as the best reading of the IQ in sub-Saharan Africa". Wicherts and colleagues in yet another reply stated: "In light of all the available IQ data of over 37,000 African testtakers, only the use of unsystematic methods to exclude the vast majority of data could result in a mean IQ close to 70. On the basis of sound methods, the average IQ remains close to 80. Although this mean IQ is clearly lower than 100, we view it as unsurprising in light of the potential of the
Flynn effect The Flynn effect is the substantial and long-sustained increase in both fluid and crystallized intelligence test scores that were measured in many parts of the world over the 20th century, named after researcher James Flynn (academic), James Flyn ...
in Africa (Wicherts, Borsboom, & Dolan, 2010) and common psychometric problems associated with the use of western IQ tests among Africans." Some criticisms have focused on the limited number of studies upon which the book is based. The IQ figures are based on 3 different studies for 17 nations, two studies for 30 nations, and one study for 34 nations. There were actual tests for IQ in the case of 81 countries out of the 185 countries studied. For 104 nations there were no IQ studies at all and IQ was estimated based on the average IQ of surrounding nations. The limited number of participants in some studies as well as outdated data has also been criticized. A test of 108 9- to 15-year-olds in Barbados, of 50 13- to 16-year-olds in Colombia, of 104 5- to 17-year-olds in Ecuador, of 129 6- to 12-year-olds in Egypt, and of 48 10- to 14-year-olds in Equatorial Guinea, all were taken as measures of national IQ. Denny Borsboom argued that mainstream contemporary test analysis does not reflect substantial recent developments in the field and "bears an uncanny resemblance to the psychometric state of the art as it existed in the 1950s". For example, he argued that ''IQ and the Wealth of Nations'', in order to show that the tests are unbiased, uses outdated methodology if anything, indicative that test bias exists. Girma Berhanu, in an essay review of the book, concentrated on the discussion of Ethiopian Jews. The review criticized the principal assertion of the authors that differences in intelligence, attributed to genetics, account for the gap between rich and poor countries. Berhanu criticized the book as being based in a "racist, sexist, and antihuman" research tradition and alleged that "the low standards of scholarship evident in the book render it largely irrelevant for modern science".


Impact on psychology

In 2006, Lynn and Vanhanen followed ''IQ and the Wealth of Nations'' with their book '' IQ and Global Inequality'', which contained additional data and analyses, but the same general conclusions as the earlier book. Discussing both books, Earl Hunt writes that although Lynn and Vanhanen's methodology and conclusions are questionable, they deserve credit for raising important questions about international IQ comparisons. Hunt writes that Lynn and Vanhanen are correct that national IQs correlate strongly with measures of social well-being, but they are unjustified in their rejection of the idea that national IQs could change as a result of improved education.Hunt, E. ''Human Intelligence''. Cambridge University Press, 2011, page 426-445. On July 27, 2020, the European Human Behavior and Evolution Association issued a formal statement opposing the utilization of Lynn's national IQ dataset, as well as all updated forms of it, citing various criticisms of its methodology and data collection. They concluded that "any conclusions drawn from analyses which use these data are therefore unsound, and no reliable evolutionary work should be using these data."


See also

* History of the race and intelligence controversy * Economic inequality *'' IQ and Global Inequality'' *''
The Bell Curve ''The Bell Curve: Intelligence and Class Structure in American Life'' is a 1994 book by the psychologist Richard J. Herrnstein and the political scientist Charles Murray in which the authors argue that human intelligence is substantially influe ...
'' *'' The Wealth and Poverty of Nations''


References

{{DEFAULTSORT:Iq And The Wealth Of Nations 2002 non-fiction books Books about human intelligence Books about wealth distribution Books by Richard Lynn Books by Tatu Vanhanen Intelligence quotient Race and intelligence controversy