These biases in behaviour are similar in spirit, but different in form, to those of primitive man. Both generate negative sentiment towards strangers or the “out-group”. In ancient times, biases were based on the physical identity of strangers; they were overt and visible. Today, many biases are based on the social identity of strangers; they are often covert and subtle. Where primitive man had conscious biases, modern man often has unconscious ones too. 14 That these biases are sometimes covert, rather than overt, does not diminish their importance for society. Unconscious biases are likely to be just as prevalent, and sometimes as pernicious, as conscious one. And precisely because they are harder to detect, sometimes even among those exhibiting these behaviours, unconscious biases are more likely to go unnoticed, and thus unchallenged, than conscious ones. As conscious biases were violent and visible, unconscious biases are silent and invisible. The Sneetches is, at one level, a children’s story with a moral message. At another, it is a case study in social identity theory, a parable for modern times. Even in advanced economies with little fear of conflict or infection, with laws against discrimination and with social norms favouring diversity, we all remain Sneetches. Our biased minds are in part a neurological hangover from our hunter-gatherer past and in part a sociological side-effect of our multicultural present. Either way, these biases are embedded in our brains and behaviours. Diversity as a social good Saying that behavioural biases among individuals are understandable is one thing.
Nothing is lasting without institutions.” The ECB is, in my opinion, a remarkable illustration of the lucidity of the conceptual founder of the Community: the institutional construction is solid and has proved to be remarkably effective in attaining its goals. This ten-year period has been short compared with the duration of the deepening of the European Union, which is an historic endeavour. But this relatively short period of time has been rich in successes. These accomplishments call for celebration, for reflection and also for continuous efforts as regards the future. In the first place, celebration. My predecessor, our dear Wim Duisenberg, in his speech to celebrate the establishment of the ESCB ten years ago, referred to “the road we have to travel in the future to make the euro a success, which means to make it a stable currency”. What can we say now, after ten years? I can sum it up in five sentences. Since day one, the single currency has fully inherited the degree of credibility and confidence that was the privilege of the most credible national currencies before the euro. The credibility was such that the medium and long-term market rates of the euro were at the same low level as those experienced by the most reliable national currencies before. In spite of a series of global shocks resulting from the prices of oil and commodities, yearly inflation since 1 January 1999 has been 2.1% on average.