What Makes For National Prosperity?

Jayman writes:

Here’s some of the factors that don’t matter:

Size (see Japan [large], Finland [small], and any number of small dysfunctional countries)
Diversity *per se* (e.g. Switzerland [diverse], Albania [homogenous], China [homogenous])
Resources (e.g. Arab oil states [resource rich], S. Korea [resource poor])

All that matters are two things: high average IQ, and high-trust people. You can even have several high-trust populations (e.g. Switzerland). And that’s all.

“Diversity” becomes a problem, really, only when there’s one or more clannish populations in the mix. Virtually ALL the “diversity” problems currently being experienced by Western countries is conflict between the non-clannish base populations and one [or] more clannish minorities. Switzerland manages fine with three different (relatively) non-clannish populations. So does, for that matter, Belgium and even France (Occitania – future discussion). Meanwhile, “homogenous” Italy, Albania, and Greece flounder.

Size, to the extent that it correlates with problems, only occurs because large states tend to encompass multiple populations – often clannish ones. So, trouble sometimes ensues. But size is not inherently a problem so long as the state manages to be primarily comprised of high-trust groups.

When you look around the world, you can see that average IQ and non-clannish (or at least high-trust, in the case of the Japanese and other similar “in-betweeners” – possibly includes Singapore and Taiwan) people make the difference. All the rest stem from these. These two things can explain 100% of the variance (haven’t checked, but maybe I will).

…there are no low-IQ non-clannish/high-trust populations, which are basically confined to NW Europe.

… national wealth exists in a curvilinear relationship with national IQ. There’s a massive increase in overall wealth towards the high end of the range. Looking at this high end is where we get our insight.

At this high IQ end, we note that the high economic performers are Northwestern European (or NW Euro-derived) while the low performers are Northeastern European or East Asian. That is, Eastern European and East Asian countries do considerably worse economically than comparably intelligent Northwestern European countries.

…an advanced, modern society needs not only smart people to be the innovators and the facilitators, but it also needs a climate of trust that makes doing business possible and more frictionless. The NW European societies (and a few others, such as the Japanese) have these qualities and prosper in today’s world. The rest, not so much. These nations will continue to improve, but they will never match Western levels in either development or national stability. Only time will tell if the very qualities that make NW European societies so successful, such as high-trust and a penchant for altruism ultimately end up doing them in, since they continue to import people from these less successful corners of the world.

About Luke Ford

I've written five books (see Amazon.com). My work has been covered in the New York Times, the Los Angeles Times, and on 60 Minutes. I teach Alexander Technique in Beverly Hills (Alexander90210.com).
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