Nobel Prize in Economics Awarded for Insights on Global Inequality

Daron Acemoglu, Simon Johnson, and James Robinson received the 2024 Nobel Prize in Economic Sciences for their impactful work dissecting how institutions influence countries' prosperity and their contributions to understanding global inequality.

In 2024, the Nobel Memorial Prize in Economic Sciences was awarded to Daron Acemoglu and Simon Johnson from the Massachusetts Institute of Technology and James Robinson from the University of Chicago. Their recognition comes from their groundbreaking research analyzing how institutional frameworks affect national wealth distribution. By exploring historical colonial influences, the laureates highlighted that nations with more inclusive institutions—such as those ensuring personal property rights and broad economic participation—tend to achieve sustained prosperity. In contrast, countries with extractive institutions, which favor elites and limit broader access to resources, often result in short-term gains and long-term economic stagnation. This extensive research underscores how historical institutional decisions continue to affect current economic health, reflecting on one of humanity's pressing challenges: reducing income disparities between countries. As emphasized by Jakob Svensson, the chairman of the economics prize committee, this work offers profound insights into the causes of success or failure in national economies. Their findings have enhanced comprehension of the root causes of inequality, providing a framework for addressing economic imbalances worldwide.