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