Why was Yisro needed?

  Or HaChaim(Shemos 18:21I) have given some thought as to the reason why Yitro merited that this whole portion bears his name. While it is true that inasmuch as Yitro paid honour to Moses the servant of G'd, G'd repaid him by honouring him, G'd could have found many other ways of compensating Yitro for his good deeds. Why did the Torah have to create the impression that if it had not been for Yitro a priest from Midian, Moses together with G'd's chosen people would not have known how to administer the Israelites' affairs?  believe the reason for all this is that G'd wanted to show the Jewish people already at that time and for all future generations that there are great and intelligent men to be found amongst the nations of the world. Vitro was an example of an enlightened Gentile who demonstrated this point beyond question. It is to teach us that if G'd chose the Jewish people as His people this is not because they possess superior intellectual qualities. G'd chose the Jewish people as a reward for the loyalty the patriarchs had shown Him and as an act of love towards this people.  Although the Gentiles number more wise men than the Jews G'd still decided to make us His pilot project. This imposes an additional duty on us to praise Him for having chosen us as an act of love.