Thoughts on economics and liberty

Tag: Benefits of freedom

Free societies are people magnets

Ask of a society what its net balance of migration is and you’ll get a sense of its level of freedom. Does the society attract more migrants, or do more of its citizens leave it? In this way, freedom comes closest to being measured objectively through its effect on the physical flow of people from a lower to higher levels of freedom. We can predict this flow with almost the same precision with which we predict the flow of water which flows, instead, from a higher to a lower level.

While economic reasons may impel people to temporarily work in places like Saudi Arabia or Libya, for the most part people do not migrate to or move to countries merely for a better standard of living. What they look for is the opportunity to achieve their own, and even more importantly, their children’s highest potential. A consequence of their people-magnetism is that free societies are almost always multi-cultural and multi-ethnic melting pots.

While nowhere in the league of ill-fated North Korea or Afghanistan, India also has net outflows of people. Indians have essentially fled from socialist tyranny and injustice. Despite the lack of welcome in the West till recently (racism is lesser now than it was in the past), many Indians prefer to live in the West than in their own shackled homeland. This exodus has stemmed somewhat with the Indian economy being freed up, though the data indicate an overall accelerating trend.

The following Tables outline some of the trends of emigration from India. 

Table 1: Indian Emigrants to the United States[i]
Year
Number
Share of immigrants received by USA
1998
36,482
            5.6%
1999
30,237
            4,7%
2000
42,046
            4.9%
2001
70,290
            6.6%
 
Table 2: Indian Emigrants to Australia[ii]
Year
Number
1992–3
 3,553
2001–2
 5,091
2002–3
 5,783
 
India’s corrupt governance and dearth of good educational institutions largely explains this acceleration, despite increasing economic opportunities within the country. Corruption in India is frequently among the main reasons cited by people for leaving India. If India does not reform its governance, this exodus will gather pace since it is currently restricted by limited intakes by the West. We know that the more talented people of a society are disproportionately more important to that society than their sheer numbers would indicate.[iii] The problem is that it is these more talented people of India who are most likely to leave. ‘Indians in the United States are almost 20 times more likely to be college educated than Indians in India.’[iv]
 
[This is an extract from my book, Breaking Free of Nehru]


[i] [http://www.nriol.com/content/articles/article62.asp].

[ii] [http://www.indiatoday.com.au/coming_to_oz.php].

[iii] Prathap, Gangan, ‘A Soft Mathematical Model for Brain Drain’, Current Science, Vol. 85, No. 5, 2003, pp.593–6.

[iv] Kapur, Devesh, ‘Ideas and Economic Reforms in India: The Role of International Migration and the Indian Diaspora’, India Review, Vol. 3, No. 4. 2004, p.367. 

Continue Reading

People in Free Societies live Longer, are Taller and Smarter

Freedom also drives the vital indicators, namely, things like height and longevity. These are impacted primarily through the effect of freedom on wealth and then on nutrition. Genetic factors obviously play a limiting role.[i] The effects of nutrition on human height are relatively well-documented and quite startling. For example, young Koreans were roughly the same average height across the Korean peninsula before South Korea decided to expand its freedoms while North Korea choose to shut them down. As a result of this difference in freedom, young South Koreans are now 7 cm taller, on average, than their North Korean counterparts – a change brought about in merely two generations. Similarly, wealthier countries are healthier, as measured by longevity; noting that it is possible for shackled countries like Cuba to also do well in healthcare while underperforming in everything else.

Most problematically for India, freedom also impacts intelligence. Despite intelligence quotient (IQ) being only a relatively modest predictor of success, and despite its well-known limitations being a construct, as well as difficulties in measurement, the average IQ of a society’s population surely counts for something. While the average IQ of an average Western society is standardized to 100, the average IQ of Indians living in India is around 85, which is very low. This figure is based on measurements conducted in India by a range of different researchers over decades. Despite the methodological issues that the underlying data may raise, I have little doubt that this IQ difference is real (I would be pleased to be proven that this is an error.) We can’t simply shrug aside a difference of this magnitude; we should try to explain it. The model in the diagram below explains this difference from the perspective of freedom. For a fuller discussion of the model, with a detailed discussion of the pathways, please see the Online Notes.[ii]        
 
The model is underpinned by a simple argument. India and the West were very similar in income levels till 250 year ago. What has changed in the past 250 years is the way the Western people use their brain; not the genetic makeup of their brain.Free societies have moved from tribalism and coercive restraints on human thought to free thinking, thus significantly increasing their IQs.
 
This model suggests that it is our lack of freedom as well as our deeply entrenched caste system, through which nearly half of our population suffers from a sense of inferiority, that has made us relatively less intelligent as an entire nation.[iii] India therefore underperforms in every way relative to their potential. The good news is that this can be reversed simply by increasing the level of freedom in India, which will also help to break down the caste system. A study reported that the IQ of Indians living in the UK was 96, which is close to the Caucasoid mean, demonstrating that with greater freedom, normal IQs should re-emerge in India.[iv]
 
[This section is from my book, Breaking Free of Nehru]

[i] It is conceivable that some societies that are not free may also do relatively well on this variable while relatively more free ones may not do as well.

[iii] I must admit that there is a potential problem with this hypothesis, since China has had very low levels of freedom, but still has a high average IQ but had very low levels of income till recently. There are clearly complex interrelationships between freedom, national income and IQ. I suspect the discriminatory Indian caste system explains most of the lower average Indian IQ.

[iv] Lynn, Richard, ‘Race Differences in Intelligence: A Global Perspective’, Mankind Quarterly, Vol. 31, Issue 3, Spring 1991.

Continue Reading