Cognitive Capital

A (July 2014) paper on ‘Cognitive capital, governance, and the wealth of nations’ (by Oasis Kodila-Tedika, Heiner Rindermann, and Gregory Christainsen) discusses exactly what it promises to. From the abstract:

Good governance or “government effectiveness” (per the World Bank) is seen as a critical factor for the wealth of nations insofar as it shapes political and economic institutions and affects overall economic performance. The quality of governance, in turn, depends on the attributes of the people involved. In an analysis based on international data, government effectiveness was related to the cognitive human capital of the society as a whole, of the intellectual class, and of leading politicians. The importance of cognitive capital was reflected in the rate of innovation, the degree of economic freedom, and country competitiveness, all of which were found to have an impact on the level of productivity (GDP per capita) and wealth (per adult). Correlation, regression, and path analyses involving N=98 to 201 countries showed that government effectiveness had a very strong impact on productivity and wealth (total standardized effects of β=.56-.68). The intellectual class’s cognitive competence, seen as background factor and indicated by scores for the top 5 percent of the population on PISA, TIMSS and PIRLS, also had a strong impact (β=.50-.54). Cross-lagged panel designs were used to establish causal directions, including backward effects from economic freedom and wealth on governance. The use of further controls showed no independent impacts on per capita wealth coming from geographical variables or natural resource rents.

(The takeaway for recent discussions here: Contra NRx dirigistes, high levels of economic freedom are a statistically-significant indicator of sound government but — contra libertarians — the foundation of social competence lies in cognitive capital, and not liberal institutions. Stated reverse-wise: Free societies are a product of deeper things, all feedback complexities aside, but they are — from the perspective of techno-economic functionality — an evidently desirable one.)

November 6, 2015admin 11 Comments »
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11 Responses to this entry

  • TheDividualist Says:

    It is very important to use use objective measures. Government effectiveness is a scale created by the World Bank, by their own values, so it is possible to inject bias into that measurement, if that is measurement at all, one could as well call it “evaluation” or “rating”. If you just look at the current president of the World Bank, “Former Chair of the Department of Global Health and Social Medicine at Harvard”, you can suspect “government effectiveness” rating means “Cathedral compatibility” rating.

    An alternative would be Heritage’s EFI but of course that is not 100% objective either. Why would corruption always decrease economic freedom?

    Spending as a % of GDP is better, but it is a poor measure of regulation. Yes enforcing regulation means spending, but e.g. as far as accounting goes, Big Four and other audit companies do the lion’s share of regulation-checking, not the gov. Regulation probably cannot be quantified well.


    Posted on November 6th, 2015 at 3:46 pm Reply | Quote
  • michael Says:

    So in a exchange with jayman at unz recently he worked out for me that proles [avg IQ} european americans, contribute at least 50% of the next generations Elite {IQ130>} This accounted for mean reversion. For various reasons I think its actually much higher, for instance he assumed for the calculation that elites have as many children as proles, wont marry down, and will have children at the same age as proles.Also I think it should be looked at as the elites might be able to barely replace themselves while proles contribute at least 50% net increase to elite pop regularly.
    My concern is proles are a vital resource that must be nurtured. There is a level of dignity and financial and physical security they require to propagate. Economic systems that seek to squeeze them for short term goals are short sighted.I happen to think that managed well they equally contribute to the cultural stability of a nation. Whenever i try to point this out im usually attacked as a secret socialist or democrat. That isnt it at all. But I end up pointing out that it isnt prole votes that are pushing leftism proles fight valiantly against leftism, its elites that use the power of media and academia and immigrant votes to impose leftism. And the immigrant votes have been beside the point maybe even still. elites impose leftism through the courts despite the courts etc they really little on actual democratic process. The above study is really saying what might be a potential what once was true and we are living off the legacy of.Hes talking about the same sclerotic west we DEs are criticizing no?
    The signalling the elites do that is so damaging is essentially ” im not elite i like simplicity, authenticity, man of the people any people even animals trannys you name it im down street cred, farm cred, I got it all.” The academic cred they seek we should be familiar with we seek it here as well. we both want the status of cognitive recognition but theirs is oriented towards academic support for being a man of the people, like their other BoBo tastes it leads back to an insecurity that they are not genuine, manly etc.
    First generation and to a lesser extent second generation elites are much less insecure about their authenticity.Bob Dylan admired Barry Goldwater.Its true the British had a quite successful run of culturally confident elites. But there were bugs in that system and it was brought down, even if they haven’t all gotten the memo.The US came up with a better system and profited from that. Maybe the yanks became anglophiles and now are watching too much downton abbey. I wonder how do asians who seem to be less susceptable handle this is it that they have even bettter than the Americans removed class from the implied definition of elite? in other words are elites humbler is it improper to signal eliteness and status signaled by more productive means?Current british and american elites are dual minded they want to be elite but are ashamed of wanting to be elite. im thinking asians think of it as a duty they must perform as well as possible much as the brits did 150 years ago


    Dark Psy-Ops Reply:

    Upwardly mobile proles are important, unless they’re moving up through political activism, in which case they’re a nuisance. There’s other ways of becoming elite that doesn’t require being a pawn of the establishment, and that’s mainly through tech, which infuriates the Cathedral, because it knows that it’s biggest danger is failing to win and maintain a perfect monopoly on delegating status. My own prediction of the long-term trend is as follows:
    – Cathedral continues to reward totally useless parasites with high status while making it increasingly difficult for elite proles to engage productively in cognitive endeavor.
    – Huge defection from Cathedral at ever faster rates as rejected elites begin to create their own competitive status markets.
    – Cathedral doubles down in ever more insane, furious attempts at destroying those who do not worship its false idols.
    – Meme war like the world has never seen.
    – Defector elites transvaluate prog values and counter the brainwashing and indoctrination of proles, rendering each new wave of up and coming elites more resistant to the progressive mind-virus, while giving them an opportunity for spiritual and cognitive recognition, of the kind the Cathedral contemptuously denies.
    – Within a decade or two Cathedral prestige is worthless outside media-academy, and indeed actively harmful to your career goals.
    – With non-linear dynamics at play there is an exponential and rapid shift in cultural conditioning until WashCorp is widely considered illegitimate.
    – Progs panic and secede, creating a North Korea out of Manhattan, and this instigates a frenzy of pan-secessionism.
    – New Golden Age
    – ??
    – Profit


    michael Reply:

    heres the dilemma youre describing a cultural swing back right, we were always taught this was how the world naturally worked.Thing is we now wonder if thats really true so what you describe is counter to MM etal.
    I would like to believe it ,and used to think the inevitable collapse from socialist economics would force it if all else failed.But I was forced by massive immigration, race/gender politics and ever more bizarre leftist memes being quickly adopted to accept that even if elites ever come to their senses it will be too late, it will be a south africa scenario, and if an economic collapse were to happen before demographic Armageddon which is next yearish. the cathedral would use any means necessary to maintain power, They have already gelded the masses and prepared them for extra judicial tactics unimaginable in my lifetime.
    Im pessimistic because watching nyc in the 80s/90s i realized a people would put up with anything if boiled slowly.And because I see in Europe which doesnt yet have as serious immigration problem the leftist insanity is much farther advanced.And because the leftist memes are so patently absurd yet so fully believed by even the most intelligent people that I realize I never understood people at all. in fact its what drove me to DE i spent decades thinking if policies were adequately explained intelligent people would understand not so at all.
    But hope springs eternal so i cheer on trump le pen farrange etc i think about that Tunisian fruit peddler that set the mid east on fire which no one could have predicted. But 15 minutes of conversation with my bright 20 year old leaves me disheartened.
    I know a lot of you are in tech but tech so far has only made the Cathedral almost unstoppable.


    Posted on November 6th, 2015 at 4:49 pm Reply | Quote
  • Cognitive Capital | Reaction Times Says:

    […] Source: Outside In […]

    Posted on November 6th, 2015 at 7:55 pm Reply | Quote
  • Mark Citadel Says:

    “Contra NRx dirigistes, high levels of economic freedom are a statistically-significant indicator of sound government but — contra libertarians — the foundation of social competence lies in cognitive capital, and not liberal institutions.”

    Nick Land nails it.


    Posted on November 7th, 2015 at 1:54 pm Reply | Quote
  • OLF Says:

    This is most easily noticed in the badly-run states themselves. There is an immense brain-drain (and by immense I mean almost everyone who could have left did leave) from badly governed countries toward the *relatively* well-governed ones. And yes, people leaving their own countries behind are leaving for the country that is some 80 ranks above their own in the Heritage Index.


    SVErshov Reply:

    in India ‘immense brain-drain’ resulted in more then 40% faculty possitions in universities/colleges become vacant.


    Posted on November 7th, 2015 at 8:17 pm Reply | Quote
  • Blogospheroid Says:

    Doesn’t this interpretation make the IQ shredders debate even more urgent? If biology is the only deep or true source of quality, then reproduction among the elites takes on an even greater urgency than thought. This weakens techno-comm and strengthens traditonalists, if techno-comm’s visible examples are all IQ-shredding cities.

    Am i reading this correctly?


    OLF Reply:

    No, the opposite is true. For sustainable economic growth you need a stable population growth, which means putting the women out of the workforce and back to the kitchen.


    Posted on November 9th, 2015 at 7:01 am Reply | Quote
  • vxxc2014 Says:

    Notice how all prescriptions are passive?

    The meek inherit the earth in an unmarked mass grave.


    Posted on November 9th, 2015 at 8:41 pm Reply | Quote

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