As population increases, animal souls are promoted to human before they are spiritually advanced enough in terms of impulse control, etc.: this shouldn't have happened, but karmic progression is automatic, after all--it's a force of nature. But the 'animalization' of humankind bodes ill for civilization.
No doubt the same goes for elves, dwarves, and so on.
A fantasy version of the Klan, where it's "Grand Wizard" really is a mage, and a dangerous one at that. Instead of hating blacks most of all, they hate non humans most of all (although they are no friends of black people either and certainly don't let them join.)