The 2024 Nobel Prize in Economics honors research on the relationship between institutions and prosperity.

This year's laureates in economic sciences help us understand differences in prosperity between nations.

Three economists, Daron Acemoglu, Simon Johnson, and James Robinson, have demonstrated the importance of social institutions to a nation's prosperity.

The laureates' research also explains why societies with weak rule of law and institutions that exploit their people do not produce growth or change for the better.

Three economists won the 2024 Nobel Prize in Economics. Photo: X/The Nobel Prize

The richest 20% of countries in the world are now about 30 times richer than the poorest 20%. The income gap between the richest and poorest countries is also persistent. Although the poorest countries have become richer, they have not caught up with the most prosperous countries. Why?

This year's economics laureates have found new and compelling evidence for an explanation for this persistent gap – differences in a society's institutions.

“This year’s laureates have pioneered new approaches, both empirical and theoretical, that help us better understand global inequality,” said Jakob Svensson, Chair of the Economics Prize Committee.

"Empirically, their work has significantly advanced the study of the causal effects of institutions on prosperity. In doing so, they have identified the historical roots of the weak institutional environments that characterize many low-income countries today."

“Their research theoretically explains why exploitative economic institutions and dictatorships often persist, even though reforming them would bring the most benefits.”

“Narrowing the huge income gaps between countries is one of the biggest challenges today,” Mr. Svensson emphasized. “Thanks to the groundbreaking research of Daron Acemoglu, Simon Johnson and James Robinson, we have a deeper understanding of the root causes that make countries fail or succeed.”

Daron Acemoglu was born in 1967 in Istanbul, Turkey. In 1992, he received his PhD from the London School of Economics and Political Science, UK. He is currently a professor at the Massachusetts Institute of Technology, Cambridge, USA.

Simon Johnson was born in 1963 in Sheffield, UK. In 1989, he received his PhD from the Massachusetts Institute of Technology, Cambridge, USA. He is currently a professor there.

James A. Robinson was born in 1960. In 1993, he received his PhD from Yale University, New Haven, CT, USA. He is currently a professor at the University of Chicago, USA.

Economics was not originally included in the prize structure in the will of Swedish scientist Alfred Nobel. The prize was added in 1968, on the occasion of the 300th anniversary of the Swedish central bank, Sveriges Riksbank, which also contributed funds for the prize.

Ngoc Anh (according to Reuters, X/The Nobel Prize)

Source: https://www.congluan.vn/giai-nobel-kinh-te-2024-vinh-danh-nghien-cuu-ve-moi-quan-he-giua-the-che-va-su-thinh-vuong-post316773.html