Daron Acemoglu, Simon Johnson, and James Robinson Awarded 2024 Nobel Prize in Economics
The Royal Swedish Academy of Sciences has awarded the 2024 Nobel Prize in Economics to Turkish-American economist Daron Acemoglu and British-Americans Simon Johnson and James Robinson. The trio was honored \"for their studies of how institutions are formed and affect prosperity.\"
Jakob Svensson, chair of the Committee for the Prize in Economic Sciences, announced the award on Monday, stating, \"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.\"
Pioneering Research on Institutions
Acemoglu, 57, and Johnson, 61, are both esteemed professors at the Massachusetts Institute of Technology (MIT), while Robinson, 64, serves as a professor at the University of Chicago. Their collaborative work has significantly advanced the understanding of how societal institutions influence economic success and development.
The Nobel committee highlighted their examination of contrasting outcomes in different societies to illustrate their findings. One notable example is the city of Nogales, which is divided by the U.S.-Mexico border. Residents on the U.S. side generally experience better economic conditions compared to those on the Mexican side. The committee noted, \"The decisive difference is thus not geography or culture, but institutions.\"
Residents north of the border benefit from economic systems that offer greater opportunities in education and profession, as well as a political system that provides broad rights and the ability to influence legislation. In contrast, those south of the border face different economic conditions and more limited political influence.
Impact on Global Economic Growth
The laureates' research sheds light on why some countries become trapped in a cycle of low economic growth. The committee explained that \"institutions that were created to exploit the masses are bad for long-run growth,\" while those that \"establish fundamental economic freedoms and the rule of law are good for it.\"
Acemoglu expressed his delight upon receiving the award, emphasizing the positive role of democracy in economic development. \"Countries that democratize, starting from a non-democratic regime, do ultimately grow about eight, nine years faster than non-democratic regimes. And it's a substantial gain,\" he remarked via telephone from Athens.
However, he acknowledged the challenges, noting that \"democracy is not a panacea\" and \"introducing democracy is very hard.\"
The Nobel Economics Prize
The Nobel Prize in Economics, officially known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 and is not one of the original five Nobel Prizes created by Alfred Nobel's will. Despite this, it follows the same selection process and is awarded by the Royal Swedish Academy of Sciences.
The economics prize concludes this year's Nobel season, which recognized achievements in artificial intelligence in physics and chemistry, while the Peace Prize was awarded to the Japanese group Nihon Hidankyo for their commitment to fighting nuclear weapons. South Korean author Han Kang received the literature prize, and the medicine prize honored discoveries in gene regulation understanding.
The Nobel Prizes include a diploma, a gold medal, and a monetary award of $1 million. The laureates will be celebrated in ceremonies held in Stockholm and Oslo on December 10, marking the anniversary of Alfred Nobel's death.
(With input from AFP)
Reference(s):
Acemoglu, Johnson and Robinson win 2024 Nobel economics prize
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