The 2024 Nobel Prize in Economics has been awarded to Turkish-American Daron Acemoglu and British-American Simon Johnson, along with James Robinson, recognizing their groundbreaking studies on how institutions are formed and influence prosperity.
Jakob Svensson, chair of the Committee for the Prize in Economic Sciences, highlighted the laureates' contributions to understanding the vast income disparities between countries. \"Reducing the vast differences in income between countries is one of our time's greatest challenges. The laureates have demonstrated the importance of societal institutions for achieving this,\" Svensson stated.
Acemoglu and Johnson, both professors at the Massachusetts Institute of Technology (MIT), along with Robinson from the University of Chicago, shed light on how societal institutions determine why some nations thrive while others struggle. A key example they used is the city of Nogales, divided by the US-Mexican border. Residents on the US side enjoy greater economic opportunities and broader political rights, emphasizing that the difference lies not in geography or culture, but in institutions.
Democracy and Economic Growth
The jury emphasized that inclusive institutions foster long-term economic benefits, while extractive institutions may offer short-term gains for those in power but hinder sustained growth. Acemoglu expressed his delight at receiving the award, noting that their work supports the idea that democratization can significantly accelerate economic growth, despite its challenges.
This year's Nobel season also honored advancements in artificial intelligence within the physics and chemistry categories, awarded the Peace Prize to Japanese group Nihon Hidankyo for their efforts against nuclear weapons, and recognized South Korea's Han Kan in literature. The Medicine Prize acknowledged breakthroughs in understanding gene regulation.
The Nobel Prizes, which include a diploma, a gold medal, and a $1 million reward, will be presented in ceremonies in Stockholm and Oslo on December 10, commemorating the death anniversary of Alfred Nobel.
Reference(s):
Acemoglu, Johnson and Robinson win 2024 Nobel economics prize
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