Nobel Prize goes to 3 economists who study the wealth and poverty of nations

Daron Acemoglu, Simon Johnson, and James Robinson were awarded the 2024 Nobel Prize in Economics for their research on the institutional foundations of national wealth and poverty. Their work focuses on how the institutions established in former European colonies continue to shape economic outcomes today. The researchers found that colonies with inclusive, democratic institutions, often where settlers thrived, prospered over time. In contrast, colonies with autocratic, extractive institutions, where settlers struggled to survive, faced long-term economic stagnation.

While their findings generally support the benefits of democracy, Acemoglu noted that introducing democracy can be difficult, especially in polarized societies. He also acknowledged that autocratic regimes, like China, can temporarily boost economic growth, but this is often unsustainable. The researchers’ work highlights the complex relationship between governance and economic prosperity.

Source: NPR