Winners of Nobel Prize 2024 Economics: Daron Acemoglu, Simon Johnson, and James Robinson

The Royal Swedish Academy of Sciences revealed today that the 2024 Nobel Prize in Economic Sciences has been awarded to Daron Acemoglu, Simon Johnson, and James Robinson for their work on institutions in economic development. Their work has recast how we think about which countries and peoples rise economically while others are in poverty.

Trio’s Research Revokes Historical Economic Conceptions

Acemoglu of MIT and Johnson and Robinson for years have studied how political and economic institutions determine the development of a country’s economy. The jobs of both make a point that inclusive institutions that share out power foster development while extractive institutions that central power in the hands of a select few slow down development.

“This research alters the paradigm through which economic development is understood,” declared Eva Lindström, chairperson of the Economic Sciences Prize Committee. For this purpose, it is proposed to abandon the vision of resources and policies, focusing on the institutions of a given society.

Nobel Prize Laureates Demand Institutional Change

Speaking during a press conference after the announcement, the laureates underlined the utilitarian nature of their research. According to Acemoglu ‘Our results indicate that achieving long-run and sustained growth is inconsistent with economic growth in many countries without achieving profound changes in institutions.”

Robinson from the University of Chicago said, “We believe this recognition will make policies across the globe direct effort towards constructing institutions that are inclusive.” Johnson from MIT also supported his ideas and work indicating that it involves the current issues of the world economy.