Daron Acemoglu, Simon Johnson, and James A. Robinson have been awarded the Nobel Prize in Economics for their groundbreaking research into the formation of institutions and their significant impact on economic prosperity.
The prestigious Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has recognized these three distinguished economists for their significant contributions to understanding how societal institutions influence a country’s growth trajectory. The Royal Swedish Academy of Sciences remarked on the laureates’ findings, emphasizing that societies plagued by weak rule of law and exploitative institutions fail to foster economic growth or positive change.
Acemoglu, Johnson, and Robinson have extensively analyzed institutions established during the era of European colonialism. Their research suggests that regions with inclusive institutions tend to thrive economically, while those where resources were expropriated for the colonizers’ gain experience stagnated growth.
Both Acemoglu and Johnson are affiliated with the Massachusetts Institute of Technology, while Robinson is a faculty member at the University of Chicago. Recently, Acemoglu and Johnson teamed up to write a book titled “Power and Progress,” exploring the potential of digital technologies to generate jobs and foster wealth, provided they are managed effectively.
Upon receiving the award, Acemoglu expressed his disbelief and delight, stating, “You never expect something like this. I’m thrilled; it’s truly shocking and amazing news.” He went on to highlight the democratic implications of their research.
Acemoglu is slated to speak at a conference in Athens, Greece, shortly. The announcement of this year’s Nobel Prize winners in Stockholm marks the conclusion of the annual award season. The trio will share a cash prize of 11 million kronor, approximately €934,000.
Last week, other Nobel Prizes were awarded in fields such as medicine, physics, chemistry, literature, and peace. Notable past winners of the Nobel Prize in Economics include Claudia Goldin, Ben Bernanke, Douglas Diamond, and Philip Dybvig.
Also of note is American economist Milton Friedman, who received the prize in 1976 for his work on monetarism, which asserts that regulating the money supply is crucial for ensuring stable economic growth.
Unlike the other Nobel categories, the economics award was not included in Alfred Nobel’s original 1895 will. Instead, it was established in 1968 by Sweden’s central bank to honor the renowned inventor. The inaugural winners were Ragnar Frisch and Jan Tinbergen, recognized in 1969.
Photo credit & article inspired by: Euronews
