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The 2024 Nobel Prize in Economic Sciences was awarded jointly Monday to three researchers, two from the Massachusetts Institute of Technology and one from the University of Chicago, for their work in explaining global inequity among nations.
Daron Acemoglu and Simon Johnson, both economists at MIT, and James Robinson of Chicago won “for studies of how institutions are formed and affect prosperity,” the Nobel Committee wrote.
They looked at how colonization by European powers shaped institutions in countries around the globe, greatly impacting their economic development. In countries where the colonizers introduced inclusive institutions and rule of law, populations generally became more prosperous. But where they created “extractive” institutions, designed to exploit indigenous populations for their own gain, development was much slower.
Using data and research, the laureates provided one possible explanation for the persistent disparities in wealth among nations today.
“Reducing the vast differences in income between countries is one of our time’s greatest challenges,” said Jakob Svensson, chair of the committee for the prize in economic sciences. “The laureates have demonstrated the importance of societal institutions for achieving this.”
