Yes, there really are "s#!thole countries". Living under those conditions-- created almost exclusively by States-- can definitely have a negative effect on the ethics and intelligence of the population (but that has zero to do with the rights the people there have). Government has consequences.
Pointing this out is honest, but not very nice. And it isn't racism. Denying it is statism, though.
I'll have more to say about this in a few days.