Yes, but the same forces that create good institutions also end up selecting for IQ so they're found together. If you have strong cooperation and mechanisms to prevent defection then the fitness returns to IQ grow faster than the fitness returns to anything else.
He's describing the specifics of how governance fails for low cooperative people. It's not just a failure of IQ (although that matters) it's an accurate assessment that everyone else is going to defect so you should defect as well to get your share.