Category Archives: Education

Minorities’ Cognitive Performance In The UK

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Here is data from the Cognitive Abilities Test for UK students in 2009/10 via Ambiguous.

Some interesting things to take away here:

(1) The sample is very large. Verbal IQ has the highest correlation with academic performance in most subjects, followed by Quantitative IQ, and then Non-Verbal Reasoning (recognizing patterns and such, I imagine).

(2) Indians do almost as well as Whites, although the structure of their cognitive abilities are a bit different: About 4 points lower than Whites in Verbal, but almost 2 points better in Quantitative. As rec1man said, “The Patels and Sikhs are Upper-Shudra / Vaishya and this is 80% of the diaspora in UK.” So this is highly encouraging for India’s eventual prospects; in indicates that the broad middle can in principle build a reasonably wealthy, middle-class society.

(3) The Pakistanis and Bangladeshis also don’t do too badly – certainly better than I would have expected (I visited a Pakistani school once in the UK and it was horrific).

(4) This might imply we are actually looking at the following average-IQ groups in India: Lower 40% – 93; Middle 40% – 99; Top 20% – 105, for an overall average of 98 (once Flynn Effect is done with them). That’s better than Greece today and certainly good enough  to have a developed society. But there’s tons of challenges: Malnutrition, slums, poor education, widespread vegetarianism (both voluntary and involuntary – due to poverty) that have to be sorted out for India to perform to its potential.

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Analysis Of China’s PISA 2009 Results

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As human capital is so important for prosperity, it behoves us to know China’s in detail to assess whether it will continue converging on developed countries. Until recently the best data we had were disparate IQ tests (on the basis of which Richard Lynn’s latest estimate is an IQ of 105.8 in his 2012 book Intelligence: A Unifying Construct for the Social Sciences) as well as PISA international standardized test scores from cities like Shanghai and Hong Kong. However, the problem was that they were hardly nationally representative due to the “cognitive clustering” effect. The Chinese did not allow the OECD to publish data for the rest of the country and this understandably raised further questions about the situation in its interior heartlands, although even in 2010 I was already able to report a PISA representative saying that “even in some of the very poor areas you get performance close to the OECD average.”

As regards Chinese intelligence

Happily (via commentator Jing) we learned that the PISA data for Zhejiang province and the China average had been released on the Chinese Internet. I collated this as well as data for Chinese-majority cities outside China in the table below, while also adding in their PISA-converted IQ scores, the scores of just natives (i.e. minus immigrants), percentage of the Han population, and nominal and PPP GDP per capita.

Reading Math Science Average (native) IQ (native IQ) %汉族 GDP/c (n) GDP/c (P)
China* 486 550 524 520  ~ 103.0  ~ 91.6% 5,430 8,442
China: Shanghai 556 600 575 577 589 111.6 113.4 99.0% 12,783 19,874
China: Zhejiang 525 598 567 563 ~ 109.5 ~ 99.2% 9,083 14,121
Hong Kong 533 555 549 546 557 106.9 108.6 93.6% 34,457 49,990
Macau 487 525 511 508 514 101.2 102.1 95.0% 65,550 77,607
Singapore 526 562 542 543 550 106.5 107.5 74.1% 46,241 61,103
Taiwan 495 543 520 519 534 102.9 105.1 98.0% 20,101 37,720

* Twelve provinces including Shanghai, Zhejiang, Beijing, Tianjin, Jiangsu totaling 621 schools, 21,003 students. Results have been released for Shanghai, and later on for Zhejiang (59 schools, 1,800 students – of which 80% were township-village schools) and for the 12-province average.

(1) Academic performance, and the IQ for which it is a good proxy, is very high for a developing nation. Presumably, this gap can largely be ascribed to the legacy of initial historical backwardness coupled with Maoist economics.

(2) The average PISA-converted IQ of the 12 provinces surveyed in PISA is 103.0. (I do not know if provincial results were appropriately weighed for population when calculating the 12-province average but probably not). We know the identities of five of the 12 tested provinces (Shanghai, Zhejiang, Beijing, Tianjin, Jiangsu). They are all very high-income and developed by Chinese standards. Furthermore, these five provinces – with the exception of Tianjin – all perform well above average according to stats from a Chinese online IQ testing website.

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The Brave New World Of Dennō Coil

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In the Japanese TV series Dennō Coil, people wear Internet-connected augmented reality glasses and interact with a world that is now split between the real and the virtual. Citizens and netizens become one. The story is set in 2026, some eleven years after the introduction of this technology.

Considering that this series was first conceived of in 1997, the dates are remarkable accurate. Recently it was revealed that Google is working on a “Project Glass” that will become available to consumers for a cool $1,500 from late 2013 or early 2014.

Needless to say the usual cynics and technophobes have been making fun of the idea, going on about the ethical problems of facial recognition, announcing they will boycott the technology (yeah right), etc. I am unconcerned with all this. As with other mega-trends like global demography or climate change, contrary opinions are like a flimsy shack against an advancing tide, in other words, irrelevant. Fortunately, for the most part, technological revolutions increase wellbeing and are useful anyway.

In my opinion, the decisive technological development of the 2000′s was the mass proliferation of cell phones. In the late 1990′s, only a small percentage of people in developed countries had access to them, as well as a handful of businesspeople and high officials in the developing world. Today they are ubiquitous with global penetration at over 70%. Apart from making people much more connected – I can barely remember the days when one actually had to make strict appointments in advance – the sector also powered a mini-economic boom for both designers (Nokia, Samsung, etc), their manufacturing contractors in China, and the ecosystem of app developers they spawned in places like the Silicon Valley.

The augmented reality eyeglass revolution will be of similar or even greater scope. What is now almost unheard of outside the techosphere will begin to break out into the public consciousness by the mid-2010′s; substantial numbers of the global middle class will start wearing them by the late 2010′s; and by the mid-2020′s, this will be a thriving global industry with tons of spinoffs and applications. So much so that a proper name will surely have to be found for these glasses. Intelligent glasses? AReyes? Thinking goggles? Denno glasses? I like the sound of the last one so I’ll be using it until the term catches on or another replaces it.

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On Defending The Soviet Union

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scylla-charybdis-and-meContrary to what some might try to take from my post on the longterm failure of the Soviet economy, I am not an anti-Soviet ideologue. I loathe lies about its achievements and the blanket condemnations directed its way by moralistic poseurs every bit as much or more than I detest reality-challenged attempts to paint it off as some kind of utopia or at least superior to alternative paths of development.

After communists, most of all I hate anti-communists. - Sergei Dovlatov, Soviet dissident.

On the latter point, I especially notice a tendency to ignore wider historical and comparative context. In the crudest cases, Russian literacy rates and GDP are compared with those of the Tsarist era: Yes, of course the average Soviet citizen c.1980 lived far better than the average Russian citizen in 1913, but then again, so did the average citizen of EVERY OTHER European country. The more important question to ask: Would the average Russian have been better off had the Russian Empire continued on its natural development trajectory without the distortions of Stalinist central planning? Yes, he almost certainly would have, as per comparison with, say, Finland (the sole part of the Empire that didn’t go Communist), or even the Mediterranean periphery nations.

Alternatively, they say that the USSR nonetheless managed to be richer than the “Third World”, as if that was some kind of achievement. Of course it was not, as (1) they were much less advanced than the Russian Empire even in 1913, and (2) their low national IQ’s would have precluded, and continue to do so, convergence with the rich world anyway; a weakness that Russia *doesn’t* suffer from. But the evidence is simply too overwhelming to be deniable: China; North Korea; Cuba; to a lesser extent, the ex-Soviet countries and Eastern Europe – all these nations, which have little in common except insofar as they suffered from the scourge of Communist economics, are ALL glaring and consistent downwards exceptions to the otherwise remarkably tight correlation between levels of national IQ/human capital and GDP per capita. (Of course a further problem here is that hardcore Soviet apologists tend to be cultural Marxists and deny Human Biodiversity and intelligence theory).

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Russian Anti-Semitism, Or Just Affirmative Action In Action?

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While writing this post on Da Russophile about why Russians do not (for the most part) hate Jews – a post that will also be of interest to AKarlin readers – I came across very interesting historical data on literacy and educational accomplishment by ethnic groups in the USSR.

Per 100 people of respective nationality
Literacy Rate among…
ages 9-49 50 and older
Jews 85,0 90,0 62,5
Germans 78,5 79,1 74,4
Russians 58,0 64,3 27,9
Ukrainians 53,4 59,2 22,2
Georgians 50,3 57,0 24,7
Belorussians 47,6 54,2 16,1
Koreans 45,1 50,6 20,6
Armenians 42,9 47,5 20,4
Tatars 41,7 46,4 19,0
Kazakhs 9,1 9,9 5,3
Uzbeks 4,8 5,2 3,3
Chechens 3,4 3,6 2,6
Tajiks 3,0 3,0 3,0
USSR average 51,1 56,6 24,5

This table shows the literacy rate among different groups from the 1926 First All-Union Census. Coming less than a decade after the Revolution this table is of course a reflection of the Tsarist education system, not of the Soviet one. Apart from puncturing one Communist myth, that the Tsarist regime didn’t do anything for people’s literacy and that it was all a Soviet achievement, it also demonstrates that Jews had the highest literacy rate of all the peoples in the Empire.

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Is The Ukrainian Children Learning?

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According to a recent Vzglyad article by Olga Gritsenko titled Universal Stupefaction, no they are not. Here are the cold raw facts:

  • Libraries stock 4% of books published in Ukraine, compared to 18% in Russia and 40% in the US and Canada.
  • The average Ukrainian spends $2.5 on books in one year, compared to $22 in Russia.
  • In 2010/11, the average Ukrainian spent just under 3 hours reading newspapers and journals per week, down 25% from 2007/08. The equivalent figure in Russia is 7 hours.
  • In fairness, their universities are rated higher than Russia’s (as well as Poland’s and the Czech Republic’s) by an outfit called Universitas 21.

Obvious counter-objections don’t explain these shortcomings. Russia has a higher Internet penetration, but nonetheless Russians read a lot more books and newspapers. Nor can a nearly tenfold difference in per capita book sales be purely or even mostly a reflection of lower book prices in the Ukraine.

That said, in a sense these statistics aren’t surprising. According to international student assessments, the level of human capital in Ukraine appears to be similar to the lowest ranked ethnic Russian provinces in Russia. This does not bode well for Ukraine’s future economic growth, given the tight interrelationship between human capital and development, and might go some way to explaining the already big – and growing – prosperity gap with its Moskali neighbors.

Race Denial vs. Racism – A False Dichotomy

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This may be the article I’ve hesitated longest over publishing. Its subject matter has always hovered as a specter over my writings on the close relation between human capital and economic growth; an obvious but studiously ignored presence*. I am talking, of course, about race and IQ. Of racial differences in IQ, to be precise.

Why now? First, it’s a propitious moment to raise the issue, what with the recent publicity surrounding the Trayvon Martin case and the firing of John Derbyshire from The National Review (for writing an article in another magazine whose recommendations most liberals follow in private even as they denounce it as incorrigibly racist in public). But my purpose isn’t to get attention as such. On these matters, it tends to come from unwelcome quarters, either from the PC police (who regard any discussion of race other than to deny it as crimethink), or from the reactionary White nationalist crowd, who think they’ve stumbled on ideological soul-brethren (thanks but no thanks, or to quote Robert Lindsay, “We’re never getting a boarding pass. Never!”). I suspect being a liberal race realist is somewhat akin to being a Jew before anti-Semitism went out of fashion. You get fired on from all sides. Not fun.

The second, more substantive reason, is that the issue matters. If it was an irrelevance, I obviously wouldn’t bother (though tellingly, most people have no problem discussing genetic causes for relatively unimportant things, such as the preponderance of Kenyan marathoners, or East Asians’ lack of alcohol tolerance). But there is a mountain of evidence indicating that IQ levels have a very real and direct influence on the world, from the life earnings potential of individuals to the wealth and poverty of nations.

This is a futurist blog, and it has never shied away from inconvenient but pertinent observations that go against Establishment orthodoxy, e.g. that the world is finite, and industrial growth in its current form is unsustainable. As regards its distribution, my views on the sources of prosperity would discomfit both left and right; contrary to theorists from both camps, it is mainly determined by levels of human capital, both within nations and internationally (the two major outlier groups, countries with resource windfalls or central-planning legacies, are exceptions that prove the rule). A corollary is that if there are genetically rooted differences in IQ between races that go beyond the power of racism or exploitation to explain, then there would be variegated ceilings on the extent to which human capital can be developed in different nations and different societies. It would also mean that major inequalities in global development are here to stay.

But first, a much-needed definition of terms to clarify why Race Realism (or “Human Biodiversity”) is not coterminous with Racism.

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The Geography Of Global Human Capital

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Today I discovered this really nifty tool, Target Map. It allows you to generate color-coded global and national maps just by uploading an Excel database.

In what will probably surprise no-one who follows my interests, my first map illustrates average PISA scores for Math, Reading, and Science for the 65 regions in the original 2009 study, 10 additional regions in a 2010 follow-up study, and the results from 12 of China’s provinces. The correlation between this map, a map of global IQ’s, and a map of GDP per capita - covered in detail on this blog – is startling to say the least.

(Click to enlarge). A table of PISA results, both average and by each of the three components, follows below the break.

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The Geography Of Russia’s Talent

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Human capital (primarily education) is the single most important factor behind long-term productivity gains, and hence economic growth. The relatively high human capital of Russia and China, which is comparable to developed country levels, is the most important reason why I rate their future prospects much higher than those of the other two BRIC’s, Brazil and India.

But the internal distribution of human capital is also very important. For instance, in Italy there is an almost perfect correlation between regional PISA scores in Math and Science, and regional GDP’s. I have long wanted to find a similar data set for Russia, and I finally did so today in Jarkko Hautamäki’s slideshow comparing regional PISA performance in Finland and Russia. Based on the figures there I estimated the PISA scores (Math and Science) for Russia’s regions and compiled the map below.

russia-map-pisa-results-2009

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The Deeper Meaning of Climategate

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As someone who has stuck his neck out for the imminent reality of anthropogenic global warming (AGW) in both his real and online life, it would be fitting for me to comment on the Climatic Research Unit e-mail hacking incident (and as per usual, what was originally meant as a “comment” has blossomed into a long post). Anyhow, at least to me, the Climategate sage illustrates three things.

  1. Part of the “hockey stick” hypothesis – that pre-20th century global temperatures were essentially horizontal – is seriously challenged, perhaps sunk. However, contrary to denier rhetoric, the emails do not discredit AGW theory itself, nor do they lessen the magnitude of our current predicament, nor do they contain any hint of an overarching global conspiracy to enslave us under a green socialist NWO.
  2. Some academics form mafia-like cliques to promote themselves. Having many relatives and acquaintances who work in academia and have, at times, suffered from these cliques, these “revelations” are nothing new to me. Science stopped being purely about science ever since it evolved beyond the preserve of moneyed men with time to kill.
  3. It sheds far less light on the theory of AGW per se, than on some unsavory researchers and the AGW deniers (or “climate skeptics”) themselves. In particular, the ferocity with which the latter have latched on to the stolen emails as “proof” that AGW is a giant scam only testifies to their own paranoid desperation, but one that is disturbingly successful at swaying the public opinion. To the casual observer, this is further evidence for the intractability of our Limits to Growth dilemma; even “social capital”, i.e. the public’s tolerance for necessary but painful decisions, is growing short.

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Review of “Kicking Away the Ladder” (Ha-Joon Chang)

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Chang, Ha-Joon – Kicking Away the Ladder: Development Strategy in Historical Perspective (2002)
Category: economy; history; industrial policy; Rating: 5/5
Summary: Kicking Away the Ladder:How the Economic and Intellectual Histories of Capitalism Have Been Re-Written to Justify Neo-Liberal Capitalism (Ha-Joon Chang)

Much has been said of the smug arrogance, cultural aloofness and end-of-history conceit characterizing the neoliberal Washington Consensus, the philosophy that a one-size-fits-all set of “good policies” (e.g. privatization, liberalization, deregulation) and “good institutions” (e.g. patent and IP protection system, etc) can – and must – be transplanted onto any country, irrespective of its historical or cultural traditions, if it were to ever join the developed “international community’. The general bankruptcy of this approach is evident from the facts on the growth, with global GDP growth during the 1960-1980 period of “bad policies” substantially higher than during the “good policies” 1980-2000 period. After seeing high growth during the earlier period, Latin America stagnated, and Africa and Eastern Europe declined during the latter; the major exception was mercantilist China.

Though always disabused by reality, from 1998 Russia to the 2008 crisis, the neoliberals retain their intellectual underpinnings by continuing to claim, like Marxists, that history itself is ultimately on their side – after all, did not Britain and the United States, the world’s greatest economic successes, rise to global preeminence through the virtues of minimal government and free trade? Not at all, argues Ha-Joon Chang in this excellent book.

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Review of “Global Catastrophes and Trends” (V. Smil)

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Smil, Vaclav – Global Catastrophes and Trends (2008)
Category: futurism, climate change, geopolitics, catastrophes; Rating: 5/5
Summary: Google Books

Vaclav Smil, an energy theorist and language connoisseur, brings his talents to bear on this idiosyncratic, incisive and balanced book on the global future. From the outset, he outlines his skepticism in universal theories of history and attempts at quantifying current trends to make point forecasts (e.g. predictions that nuclear power would make energy too cheap to meter in the halcyon days of the industry). Instead, he emphasizes the role played by the sheer complexity of human systems and their discontinuities – for instance, who could have imagined that a generation after the death of Mao, China would be the workshop of the world helping underwrite US military dominance?

Having established “How (Not) to Look Ahead”, Smil introduces his method – analyzing key variables categorized by a) unpredictable events – “catastrophes”, b) powerful trends (the effects of globalization, global demography, the energy transition), and c) the shifting balance of power between the Great Power (the marginalization of Japan, an unstable Islam, Russia’s partial resurgence, the uncertain rise of China and an increasingly faltering United States). It is one a method I highly favor and I agree with most of the arguments he makes in his book, albeit there are a few major exceptions.

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One Nation under CCTV

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Now we’ve all known for some time that Britain is degenerating into a neoliberal version of East Germany, with its endemic surveillance and database wet dreams, and few things really surprise me any more, but every so often it manages to plumb an even deeper level of insanity. This time the thieving crooks and totalitarian freaks who run Britain want to install CCTV cameras in people’s homes:

THOUSANDS of the worst families in England are to be put in “sin bins” in a bid to change their bad behaviour, [AK: the aptly named] Ed Balls announced yesterday.

The Children’s Secretary set out £400million plans to put 20,000 problem families under 24-hour CCTV super-vision in their own homes. They will be monitored to ensure that children attend school, go to bed on time and eat proper meals. Private security guards will also be sent round to carry out home checks, while parents will be given help to combat drug and alcohol addiction.

What with all the unprecedented budget deficits, money printing and soaring debt, I’m sure spending more money spying on the population is an excellent idea. I’m not even being sarcastic here. As the government steps up its repressive and unpopular policies, resulting in ever more disillusionment and resentment, this actually constitutes an essential investment in state security. The accompanying expansion of the overgrown nanny state is aimed at making children of the population, incapable of resisting the state’s spreading, suffocating tentacles.

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Review of “America Alone” (M. Steyn)

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Steyn, Mark – America Alone: The End of the World as we Know It (2006)
Category: Islam; Eurabia; humor; Rating: 3/5
Summary: The future belongs to Islam (M. Steyn)

It crept up on the West silently. Even as post-historical white Europeans were busy puffing on their weed, hugging trees and chanting Kumbaya in a happy circle, in the dark recesses of their post-industrial civilization – from Britain’s wrecked mill towns to the gray apartment blocks of Malmö, a dark force was bedding, breeding and brooding on history’s return to the mighty continent. They were the Muslims.

*ominous drumbeat*

Slow and surely, they used the lobbying methods of gay rights and feminist organizations to spread their baneful influence to the heights of political power. Sharia enforced at the point of a gun became the law of the land in the grim banlieues of Paris and the gray apartment blocks of Londonistan. They became centers of global jihadist networks that intertwined modern technology, ancient hatreds and Western moral relativism to strike severe blows at its quailing hosts, the apathetic, limp-wristed citizenries presided over by disconnected Eurocrats who were too terrified to do anything but appease. All heroic dissenters, like Mark Steyn, who tried to warn Europe of its mortal peril, were ungratefully cut off by political correctness laws – where the Islamists did not cut off their heads for real, that is.

Some Europeans realized what was happening. Some “reverted” to the Islamofascist wave of the future, making their peace with the new world. The enterprising and quick-witted emigrated to the US of A, one of the world’s few remaining citadels of freedom and prosperity. Most accepted their fate passively – aging, deprived of their pensions through state bankruptcies, forced to pay jizya to their new masters who cut their beards, took away their beer and covered up their women. Though a few bands of neo-Nazi “patriots” tried to stem the Islamic tide, they were outnumbered and crushed in the ensuing civil wars.

*soundtrack*

The world retreated into a new Dark Age of nuclear-armed tinpot dictatorships, transnational terrorists equipped with the latest technology, a totalitarian China, a re-primitivized Russia of nuclearized anarchy fought over by the Chinese Army, brutal Muslim warlords and the dispossessed remnants of its original denizens, and a civil war-torn Europe alternating between fascist black and Islamist green. The barbarian of chaos and destruction leaves only a single, tattered Stars and Stripes fluttering on the winds of time, for now America stands alone as the last bastion of enlightenment amidst the stifling darkness that threatens to engulf it too.

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Victimized Venezuela III: Myths And Reality

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At the recent Summit of the Americas in Trinidad, two great leaders, Obama and Chavez, shook hands in what could be the symbolic first gesture of reconciliation. Treasonous neocons will no doubt rush to condemn this as yet another limp-wristed and unilateral concession to “America’s enemies”, reminding their listeners that Chavez closed down opposition media, nationalized American assets and welcomed Russian warships and strategic bombers to his realm.

Yet their stubborn animosity is worse than just imperialist arrogance – it is stupid. They fail to realize that in the past decade Latin America in general, and Venezuela in particular, has become too politically mature to be easily manipulated into serving US (corporate) interests by economic hitmen, CIA operatives and their local surrogates. It is to Obama’s credit that he is willing to move from willful denial to cautious acceptance of the decline of overt American power in Venezuela and elsewhere.

For that is the new reality. The Venezuelan opposition is increasingly discredited for its unconstructive hostility to the government and extra-legal attempts to overthrow Chavez, one of which nearly succeeded in 2002. This resulted in blowback against the US for its covert involvement  The government’s refusal to renew the licenses of opposition media outlets that seditiously backed the abortive coup is thus completely understandable, as is Chavez’ personal animosity towards Bush and outreach to other states in similar straits. Furthermore, it should be noted that the owners of newly nationalized companies, including American ones, were fairly compensated.

Meanwhile, within five years of taking real power in Venezuela, a corrupt, disorganized and class-ridden country, Chavez managed to a) double the GDP, b) halve the number of people living in poverty and c) drastically improve practically every indicator of social wellbeing from child mortality rates to inequality to tertiary education enrollment rates (I already covered these successes in prior posts). This does not mean that Venezuela is no longer a corrupt, disorganized and class-ridden country – it still is, to an extent – but the improvements are undeniable and Chavez enjoys high approval ratings. It is thus unseemly and dishonest of the Western MSM to excoriate Chavez as a thuggish populist strongman and economic illiterate.

Let us hope they take a clue from Obama. Or from Mark Weisbrot and his fellow authors, who in their latest paper, The Chávez Administration at 10 Years: The Economy and Social Indicators, give a glowing verdict on the achievements of the Bolivarian revolution.

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A Long Wait at the Gate of Delusions

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Sometimes, it is much simpler to expound upon one’s views on a subject by replying to and arguing against an opposing view, rather than constructing one’s own thesis. Call it intellectual laziness, a clever short-cut or whatever you not, this is what I’m going to do with the Washington Post article A Long Wait at the Gate to Greatness, in which John Pomfret argues that China is unlikely to ever match, let alone surpass, the United States as the world’s premier superpower. I will quote it in full, adding my own comments:

Nikita Khrushchev said the Soviet Union would bury us, but these days, everybody seems to think that China is the one wielding the shovel. The People’s Republic is on the march — economically, militarily, even ideologically. Economists expect its GDP to surpass America’s by 2025; its submarine fleet is reportedly growing five times faster than Washington’s; even its capitalist authoritarianism is called a real alternative to the West’s liberal democracy. China, the drumbeat goes, is poised to become the 800-pound gorilla of the international system, ready to dominate the 21st century the way the United States dominated the 20th.

The key difference is that China is a demographic giant. This means that to match the US in gross GDP (one of the key criteria for superpower status), it need only advance to around a quarter of its per capita development, or Mexico’s level. To match the West (and be double the US), it need only reach Portuguese standards.

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Education as the Elixir of Growth

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What are the reasons behind the wealth and poverty of nations? Since this question has exercised the minds of thinkers from Adam Smith to David Landes, Jared Diamond and Richard Lynn, I decided to take a look at it myself. I came to the conclusion that while geography, macroeconomic policies, resource windfalls and the microeconomic environment do play important roles, by far the most important factor is the state of a country’s human capital – things like literacy rates, school life expectancy and performance on international student assessments.

This is not a new idea. A Goldman Sachs report, Dreaming with BRICs, noted that:

Many cross-country studies have found positive and statistically significant correlations between schooling and growth rates of per capita GDP—on the order of 0.3% faster annual growth over a 30-year period from an additional one year of schooling.

However, I think education is much more central to this. The problem with using years of schooling as a yardstick is that in many middle-income countries, like Argentina, Turkey or Brazil, the amount of schooling is converging to that of the developed world, but the quality isn’t. This is attested to by their performance on international student assessments like PISA. For instance, in the 2006 PISA Science assessment, only 15.2% of Brazilians were at Level 3 or higher (the threshold for moving beyond purely linear problem-solving), compared with 47.6% of Russian, 51.3% of American and 66.9% of Australian students. Is it really then surprising to discover that from 1997 to 2007 purchasing power GDP per capita in Brazil and Russia, both medium-income countries, has grown at 1.3% and 6.0%, respectively, i.e., that Russia is playing the game of economic catch-up much more successfully?

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