Daron Acemoglu, Simon Johnson, and James A. Robinson have been awarded the 2024 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.

The trio was recognized by the Royal Swedish Academy of Sciences for their influential work on how societal institutions shape economic success. Their research has demonstrated that nations with inclusive institutions experience sustainable prosperity, while those with extractive systems remain mired in poverty and underdevelopment.

Their findings highlight the impact of European colonization on institutional structures across the globe. Regions where colonizers established inclusive political and economic frameworks saw lasting growth, whereas areas subjected to exploitative practices faced enduring poverty and inequality.

The Nobel committee emphasized that these insights offer a critical understanding of global economic disparities, underlining the need for more inclusive institutions to drive societal progress.

The laureates’ work sheds light on the role of political elites in resisting reforms to maintain power and how the threat of revolution can sometimes lead to democratization. As global inequality remains a pressing issue, their research provides essential guidance for policymakers and economists seeking to promote inclusive growth and reduce poverty worldwide.