The 2024 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Daron Acemoglu, Simon Johnson, and James A. Robinson for their research on the formation and impact of institutions on prosperity. Their work highlights how inclusive institutions lead to long-term economic success, while extractive systems perpetuate poverty and underdevelopment. The trio’s research delves into the effects of European colonization on institutional structures worldwide, showcasing the importance of inclusive political and economic systems for sustainable growth.
Their findings shed light on why some nations face economic stagnation due to extractive institutions that benefit political elites, hindering broader growth. The laureates suggest that democratization can emerge when ruling classes realize the need for genuine reforms to maintain power. As global inequality remains a pressing issue, their research offers valuable insights for policymakers and economists striving to foster growth and reduce poverty.
The laureates, Daron Acemoglu, Simon Johnson, and James A. Robinson, will equally share the prize amount of 11 million Swedish kronor. The Royal Swedish Academy of Sciences presented this prestigious award, emphasizing the importance of societal institutions in achieving economic equality. The laureates’ work has significant implications for addressing income disparities between countries, as highlighted by Jakob Svensson, Chair of the Prize Committee.