Global Inequality As a Consequence of Human Diversity A New Theory Tested by Empirical Evidence TATU VANHANEN Ulster Institute for Social Research Published 2014 by Ulster Institute for Social Research London NW10 5TH UK 1SBN 9780957391383 Copyright © 2014 Tatu Vanhanen All rights reserved Printed in Great Britain This book is dedicated to colleagues and other researchers who have attempted to explore the impact of human nature on global inequality in human conditions. iii Contents Preface ix Acknowledgements xiii Part I: Theories of Global Inequality and Variables Chapter 1 1 SomePrevious Studies on Global Inequality 1. Studies on Global Inequality 1 2. Some Measures of Global Inequality 10 Chapter 2 27 Theoretical Explanations 1. Contemporary Theoretical Explanations 28 2. Human Diversity as the Ultimate Explanatory Factor 42 Chapter 3 57 Variables 1. National IQ 58 2. Six Measures of Global Inequality 60 3. Statistical Data on Variables for 178 Countries 65 4. Index of Global Inequality (IGI) 73 v Global Inequality Part II: The Hypothesis Tested by Empirical Evidence Chapter 4 85 Test of the Hypotheses: The Six Components of IGI 1. Intercorrelations of Variables 86 2. The Hypothesis Tested by the Six Components of IGI 88 Chapter 5 117 The Index of Global Inequality (IGI) 1. The Results of Regression Analysis for Single Countries 118 2. Extreme Outliers (residuals ±20.0 or higher) 127 3. Large Deviations (residuals from ±12.0 to ±19.9) 131 4. Moderate Deviations (residuals from ±8.0 to ±11.9) 140 5. Summary 148 Chapter 6 153 The New Phenotypic Worldview 1. Contradictory Worldviews 154 2. A Theory on the Impact of Human Diversity on Global Inequality 158 3. The Hypothesis Tested by Empirical Evidence 162 4. Conclusion 166 Abbreviations 172 References 173 NameIndex 185 Subject Index 195 vi Contents Tables Table 3.1 The values of national IQ and of the six measures of global inequality for 178 countries. 66 Table 3.2 The percentage values of the two original and fourtransformed components of IGI and their arithmetic means (IGI) in the group of 178countries. 75 Table 4.1 The intercorrelations of IGI and its six components in the group of 178 countries. 87 Table 4.2 National IQ correlated with the six components of IGI and with the Index of Global Inequality in thegroup of 178 countries. 88 Table 5.1 The results of regression analysis of IGI on national IQ (the mean of 2006 and 2012 national IQs)for 178 countries. 120 Table 5.2 The correlations between national IQ and IGI values in different sub-groups of countries. 125 Table 5.3 The core groups of the most deviating countries (countries appearing in both lists are underlined) according to Chapter 4 and Chapter 5. 150 vii Global Inequality Figures Figure4.1 Theresults of regression analysis of PPP/GNI-10%on national IQ in the group of 178 countries 91 Figure 4.2 The results of regression analysis of Tertiary education on national IQ in the group of 178 countries. 95 Figure 4.3 The results of regression analysis of Inversed U-five% on national IQ in the group of 178 countries. 99 Figure 4.4 The results of regression analysis of life expectancy(Life-10%) on national IQ in the group of 178 countries. 102 Figure 4.5 The results of regression analysis of Sanitation on national IQ in the group of 178 countries. 104 Figure 4.6 The results of regression analysis of Index of Democratization (ID-10x2) on national IQ in thegroup of 178 countries. 108 Figure 5.1 The results of regression analysis of the Index of Global Inequality (IGI) on national IQ in the group of 178 countries. 119 viii Preface Enormous economic and other global disparities in human conditions persist in the world. Scholars and political leaders have debated on the causes of these problems and on the means to solve them, but no agreement has yet been reached on the causes of global disparities or on the best methods of reducing them. It has been characteristic of this debate that explanations for global inequality have been sought only from various cultural, political and other environmental factors, not from any characteristics of human nature, although phenotypic phenomena are always affected not only by environmental but also by genotypic factors. The limitation to environmental factors seems to be common for all previous theories of global inequality and poverty: for cultural theories, modernization theories, dependency and world-system theories, and political and institutional theories. Unfortunately it has not been possible to test the explanatory power of those theories satisfactorily by empirical evidence for the reason that it has been difficult to operationalize their central concepts and hypotheses. Consequently, we do not know to what extent those theories are capable of explaining the emergence and persistence of global inequality and poverty. It is characteristic for all environmental theories of development that they seem to be based on an implicit assumption that innate abilities of all nations are more or less the same and that, therefore, it is not necessary to pay any special attention to possible differences in average innate abilities of nations. Environmental factors are assumed to be enough to explain the emergence and persistence of global inequality, although each ix Global Inequality theory refers, to some extent, to different kinds of environmental factors. The assumption that environmental factors are enough to explain the existence of enormous developmental gaps between countries implies an idea that it might be possible to eradicate developmental gaps by appropriate changes in relevant environmental factors and policies. In other words, poverty and other disparities in human conditions are not assumed to be inevitable. They are assumed to be partly consequences of geographical factors, but even more consequences of economic, social, and political selections and policies, which means that it would be possible to reduce those disparities significantly by correcting those policies. Of course, this kind of argumentation is justified to some extent. The United Nations Millennium Declaration adopted by the United Nations General Assembly in 2000 is based on such argumentation. The United Nations accepted the eight Millennium Development Goals that are intended to reduce poverty and to improve various aspects of human conditions. It is certainly possible to reduce poverty and to improve human conditions to some extent in some places in the world, but according to my theory formulated in this study it will never be possible to equalize human conditions in the world. James D. Wolfensohn, the President of the World Bank, noted in his Foreword to World Development Report 2000/2001 that "at the start of a new century, poverty remains a global problem of huge proportion." He said that the report "seeks to expand the understanding of poverty and its causes and sets actions to create a world free of poverty in all its dimensions." In other words, he believed it to be possible to eliminate poverty completely. In his Forward to World Development Report 2004, Wolfensohn declared confidently: "For the first time in human history, we have the possibility of eradicating global poverty in our life time." Many other scholars and politicians have expressed the same idea about the possibility of creating a world free of poverty. x Preface Serious attention has not been paid to the significance of the evolved human diversity. My purpose in this book is to challenge contemporary environmental theoretical explanations of global inequality and poverty and to introduce a transformed phenotypic worldview which is based on the idea that to some extent global inequality is a natural and inevitable consequence of human diversity. In this book, the evolutionary roots of global inequality and poverty are traced to the continual struggle for existence and to the evolved human diversity measured by national IQ. Together, these two evolutionary factors are assumed to explain a significant part of the enormous global disparities in human conditions. These theoretical arguments will be tested by empirical evidence by correlating national IQ as a measure of the evolved human diversity with various indicators of global inequality and poverty. The results of empirical analyses will show to what extent the evolved human diversity measured by national IQ is able to explain the variation in some measures of global inequality and poverty. The unexplained part of the variation is assumed to be due to various environmental factors discussed in contemporary and previous developmental theories. The book is divided into two parts. The first part concerns theories of global inequality and variables and includes three chapters. In the first chapter some previous studies and data on global inequality are reviewed, and six measures of human conditions are selected to be used in the final test of the hypothesis. In the second chapter, contemporary theoretical explanations of global inequality and poverty are reviewed and my own phenotypic theoretical explanation of global inequality in human conditions is introduced. In the third chapter, national IQ and the six measures of global inequality are introduced and combined into an Index of Global Inequality (IGI). The second part of the book concerns the test of the hypothesis and includes three chapters. In chapter 4, the hypothesis is tested by the six components of IGI, and the results xi