Coevolution of mental models and institutions

Two types of mentality: X (“non-Western”) and Y(“Western”) are identified by comparing the nature of the countries’ dominant institutional matrices and types of mentality. A hypothesis about the economic dependence of social processes that support the coevolution of institutions and mental models, and the principle of adaptive significance in the formation of both institutions and mental models are discussed. It is concluded that the change of the cumulative percentage of GDP in selected X-countries and of that in Y-countries has a wave nature. Nowadays X-countries are taking leading positions again. The process is accompanied by the growth of significance in X-institutions and in the related mental models in the Y-countries.