The 2024 Nobel Prize in Economics was awarded to Daron Acemoglu, Simon Johnson, and James Robinson for their groundbreaking research on the impact of institutions on a nation’s economic prosperity. Their work emphasizes how the nature of societal institutions—whether inclusive or extractive—shapes the economic trajectories of countries, shedding light on global inequality and the reasons why some nations succeed economically while others struggle with poverty.
Their research draws on historical events, such as colonization, to demonstrate the lasting effects of the institutions established during these periods on a country’s development. They argue that nations with inclusive institutions, which encourage broad participation and equitable resource distribution, are more likely to achieve sustainable prosperity. In contrast, extractive institutions, which concentrate power and wealth among a small elite, tend to impede economic growth.
Daron Acemoglu, born in Istanbul, Turkey, in 1967, is a distinguished economist who obtained his Ph.D. from the London School of Economics in 1992. He currently teaches at the Massachusetts Institute of Technology (MIT). Acemoglu’s research centers on how political and economic institutions, such as laws and governance, influence the economic development of nations. He co-authored the influential book *Why Nations Fail: The Origins of Power, Prosperity, and Poverty* (2012) with James A. Robinson, in which they argue that inclusive institutions foster prosperity, while extractive ones hinder progress.
James A. Robinson, born in 1960, earned his Ph.D. from Yale University in 1993 and is a professor at the University of Chicago. His research investigates how the structure of institutions affects a nation’s long-term economic outcomes. Robinson has conducted fieldwork in countries like Colombia and Sierra Leone, examining the roles of political instability, governance, and institutional shortcomings in perpetuating poverty.
Simon Johnson, born in 1963 in the UK, is also a professor of economics at MIT, where he specializes in the influence of institutions and policies on economic growth. He received his Ph.D. from MIT and co-founded the popular economics blog The Baseline Scenario. Johnson’s work has significantly shaped discussions on global financial stability and policy responses to economic crises, particularly during his tenure as Chief Economist of the International Monetary Fund (IMF) from 2007 to 2008, where he advocated for strong actions to address systemic instability in the global financial system.
