2024 Nobel Laureates in Economic Sciences: Insights on Institutions and Prosperity
| Summary/Static | Details |
|---|---|
| Why in the news? | Nobel Economics Prize Winner 2024 |
| Awarded by | The Royal Swedish Academy of Sciences |
| Winners | Daron Acemoglu, Simon Johnson, and James A. Robinson |
| Reason for Award | For studies on the formation and impact of institutions on prosperity |
| Key Findings | - Societal institutions and governance structures significantly influence economic prosperity.- Extractive institutions lead to economic stagnation, while inclusive institutions promote growth.- Colonial legacies explain persistent economic disparities between former colonies.- Political reforms and credible governance are essential for long-term development. |
| Colonial Impact | - Colonizers established extractive systems in some regions, exploiting local populations.- Inclusive systems in other colonies facilitated long-term prosperity. |
| Global Income Inequality | - The richest 20% of countries are about 30 times wealthier than the poorest 20%.- Income gaps have persisted for 75 years and widened over 200 years. |
| Institutional Challenges | - Extractive institutions trap countries in cycles of low growth.- Inclusive institutions benefit entire populations and encourage development. |
| Democratization Insights | - Ruling elites may democratize to avoid violent revolution.- Political reforms often arise from external threats or public pressure. |
| Prize Amount | 11 million Swedish kronor, shared equally among the laureates. |
| About the Winners | - Daron Acemoglu: Born 1967 in Istanbul, Turkiye; PhD from LSE; Professor at MIT.- Simon Johnson: Born 1963 in Sheffield, UK; PhD from MIT; Professor at MIT.- James A. Robinson: Born 1960; PhD from Yale; Professor at the University of Chicago. |