The issue with which Lal (and of course many others) is concerned is not
the prerequisites for adopting capitalism but the prerequisites for the
evolution of capitalism over a long period. I think it is widely
accepted that individualism, as a moral outlook that is shared by large
numbers, is a prerequisite for that evolution. But why did this happen
in the West? Lal hypothesizes that the leader of the catholic religion
(which I suspect was on its way to becoming as pervasive in Europe as
Islam is today in the middle east) in the sixth century had something to
do with it. I recall reading other explanations relating to religions.
The fascinating part of Lal's is that he sees the Pope's proclamations
as a very successful effort to enrich the church by tapping the money of
dead widows.
Economists need "habits of the heart?" I assume that you are not saying
that economists need rhythm. Could you be a bit more explicit?
Pat Gunning