This year's Nobel Prize in Economics was awarded to a trio of economists for their research into how institutions influence the economic development of countries. Darren Acemoglu, Simon Johnson e James Robinson Recognized for its detailed analysis of how institutions established during the colonial period continue to influence the prosperity of nations to this day.
The prize, which includes a cash prize of 11 million Swedish kroner (about 1 million US dollars), was announced on Monday (14).
The Influence of Institutions on the Prosperity of Countries
The works of Acemoglu, Johnson and Robinson highlight the importance of institutions in determining the economic success of countries. According to the Nobel Committee, economists have demonstrated that the prosperity of countries is directly related to the type of institutions created during the colonial period or at another stage of their history. Inclusive institutions that encourage broad population participation tend to foster sustainable development, while extractive institutions that seek to exploit resources and people hinder progress.
In the book “Why Nations Fail”, Published in 2012, Acemoglu and Robinson discuss how political and economic institutions shape a country's destiny. This study compares two cities called Nogales, one in the US state of Arizona and the other in the Sonora region of Mexico. Although separated only by a border, the cities show significant differences in terms of health and wealth, which is attributed to the strength of local institutions in the United States.
Historical Implications of Colonialism
During the colonial period, many parts of the world underwent significant institutional changes. In some places the changes aimed at the economic and social exploitation of indigenous peoples, in others, they laid the foundations for more inclusive political and economic systems. A trio of award-winning economists explored these differences to explain current economic imbalances.
Data presented by the panel indicate that countries that adopted inclusive institutions achieved higher levels of development during and after colonialism. In comparison, countries that have maintained or introduced extractive industries continue to face significant economic challenges.
Relevant contributions to economics
The Swedish Bank Economics Prize, commonly known as the Nobel Prize in Economics, is not one of the first prizes established by Alfred Nobel, but it continues to recognize significant contributions to the field of economics. last year, By Claudia Goldfrom Harvard University, awarded for her research on gender differences in the labor market.
Breaking news
The Royal Swedish Academy of Sciences has awarded the 2024 Sveriges Riksbank Prize in Economic Sciences in honor of Alfred Nobel to Darren Acemoglu, Simon Johnson and James A. Robinson has decided to provide pic.twitter.com/tuwIIgk393
— Nobel Prize (@NobelPrize) October 14, 2024
