Outdated Thinking, Stagnant Nations: Why Mindset Shapes National Destiny

By Peter Lee

The Root Cause of National Underdevelopment: Outdated Mindsets

Looking across the modern world, the reasons why some countries are developed while others remain underdeveloped are multifaceted. However, the most fundamental reason lies in the divergence of thought: developed nations are driven by modern, progressive mindsets, while underdeveloped nations are still trapped in outdated ideas.

1. Leadership Mindset Determines a Nation’s Future

In developed nations, leaders generally embrace modern governance concepts. Their core purpose in office is to realize the collective aspirations of the majority of citizens. These governments operate under term limits, during which leaders must achieve clearly defined goals. Their performance is monitored by the media, opposition, and the public. Good performance may earn a second term—nothing more.

This “project management” model fosters efficiency and accountability. Over time, these mechanisms push society toward stable modernization and enduring progress.

By contrast, in underdeveloped countries, many leaders still think like emperors from a bygone age. They cling to medieval ideals of “great rulers” and conquests. Their goal is not to reform society or serve citizens, but to pursue outdated ambitions like territorial expansion or national unification. Russia’s direction under Putin is a case in point—a once-promising nation now in crisis due to obsolete thinking.

Some leaders believe they inherited their nations like dynasties, and they are simply “guarding the throne.” This is a thoroughly feudal mindset. Over 200 years ago, George Washington stepped down peacefully after two terms. When questioned, he said: “If we fought for power and privilege, we would be no better than bandits. We fought for liberty, so power must return to the people.” Yet in some Eastern nations today, leaders still cling to the logic of “seizing power, holding power, and treating the people as the foundation of that power.”

This mindset is the root cause of stagnation.

2. Outdated Ideas Produce Outdated Systems

Ideas shape institutions. In modern societies, values like rule of law, private property, free markets, and press freedom are foundational. These features ensure transparency, competition, and innovation—driving sustainable progress and guarding against systemic risks.

Underdeveloped nations, however, often cling to inefficient state-owned models. State lands lie idle, government enterprises hemorrhage money, and corruption spreads unchecked. This inefficiency chokes economic vitality and leads to recurring crises.

Without transparent information and sound oversight, economic bubbles form. When they burst, the economy crashes. China’s current crises in real estate, finance, and infrastructure reflect this dynamic—modern infrastructure built on archaic systems.

3. Modernization Begins with Modern Thinking

In the 19th century, Japanese scholar Yukichi Fukuzawa said: a country must modernize its thinking before it modernizes its institutions or its material conditions. That sequence is essential—reversing it leads to failure.

China has done the opposite over the past 40 years: it built skyscrapers and bullet trains, but its governance ideas and systems lag behind. The result is today’s internal-external struggles—evidence of Fukuzawa’s wisdom: modern thought is the foundation of modern society.

Conclusion

A nation’s greatness is not measured by its buildings or borders, but by the mindsets of its people and leaders. Thought determines institutions, institutions shape policies, and policies decide a nation’s destiny.

In the final analysis, development is a competition of ideas. Without ideological modernization, no real progress is possible. It is time for outdated thinking to step aside, and for modern, inclusive, rational governance to take its place