Stockholm: Daron Acemoglu, Simon Johnson, and James Robinson have been awarded the 2024 Nobel Prize in Economic Sciences for their pioneering studies on how institutions shape economic prosperity, the Royal Swedish Academy of Sciences announced on Monday. Their research sheds light on the critical role institutions play in influencing the wealth and development of nations.
The trio has been recognized for their pioneering studies on how institutions are formed and their profound impact on economic prosperity.
Daron Acemoglu and Simon Johnson, both professors at the Massachusetts Institute of Technology (MIT), and James A. Robinson, a professor at the University of Chicago, have significantly advanced our understanding of the role institutions play in shaping economic outcomes. Their research has demonstrated that inclusive institutions, which promote broad participation and equitable resource distribution, are crucial for sustained economic growth and development.
The laureates’ work has highlighted the stark differences in prosperity between nations, attributing these disparities to the nature of their institutions. They have shown that societies with inclusive institutions tend to experience higher levels of prosperity, while those with extractive institutions, which concentrate power and wealth in the hands of a few, often struggle with stagnation and poverty.
This groundbreaking research has not only influenced academic discourse but also informed policy-making around the world. By elucidating the mechanisms through which institutions affect economic performance, Acemoglu, Johnson, and Robinson have provided valuable insights for addressing some of the most pressing economic challenges of our time.