The 2024 Nobel Prize in Economics has been awarded to Daron Acemoglu, Simon Johnson, and James Robinson.
These three have been recognised for their explanation of the differences in prosperity amongst nations and how various institutions affect this prosperity. The winners worked on theoretical and empirical approaches that have helped to better understand this inequality between countries
Background
Acemoglu, Johnson, and Robinson argue that inclusive institutions, which protect property rights and provide opportunities for all, are crucial for economic success.
On the other hand, corrupt practices and stagnation are frequently associated with extractive institutions or those that concentrate wealth and power. The enduring influence of colonial legacies on institutional structures in nations like Nigeria is highlighted by their seminal works, “The Colonial Origins of Comparative Development” and “Why Nations Fail.”
The economists in “The Narrow Corridor” explain that prosperity and liberty are the results of a robust civil society coexisting with a strong state. They do, however, contend that weak state institutions and a limited civil society are the reasons Nigeria and other comparable nations are still having difficulty striking this balance.
Their theories are applicable to many disciplines, integrating political science, economics, and history while enlightening international concerns like economic policy, foreign aid, and governance reform.
What do you need to know?
Their research has prompted discussions within the field, with some academics arguing that development is also influenced by geography and natural resources.
Despite these critiques, the focus on the importance of institutions that Acemoglu, Johnson, and Robinson placed has had a major influence on modern economic theory.
This year’s prize further recognizes research on inequality, as Claudia Goldin, the previous recipient of the Nobel Prize in Economics in 2023, was recognized for her studies on gender disparities in the labour market.
