2024 Nobel Prize in Economics awarded to research explaining why there are rich and poor countries

Winner of the 2024 Nobel Prize in Economics - Photo: Nobel Prize

On the afternoon of October 14, Nobel week ended with the Nobel Prize in Economics awarded to three American economic researchers Daron Acemoglu, Simon Johnson, and James A. Robinson "for their studies of how institutions are formed and influence prosperity."

Mr. Daron Acemoglu and Mr. Simon Johnson work at the Massachusetts Institute of Technology, Cambridge, while Mr. James A. Robinson is at the University of Chicago, USA.

In awarding the prize, the Royal Swedish Academy of Sciences said the winning research helped us understand differences in prosperity between countries.

By examining the different political and economic systems that emerged during the European colonial period, Daron Acemoglu, Simon Johnson, and James A. Robinson were able to demonstrate the relationship between institutions and prosperity.

They also developed theoretical tools that can explain why differences in institutions persist and how institutions can change.

"The laureates have pointed to one explanation for differences in national prosperity as the social institutions that emerged during colonization. Inclusive institutions are often introduced into poor countries when they are colonized, leading over time to a prosperous population. This is an important reason why formerly rich colonies are now poor, and vice versa," the awarding body said.

Many countries then remain stuck with extractive institutions and low economic growth. “The introduction of inclusive institutions creates long-term benefits for everyone, but extractive institutions create short-term benefits for those in power,” the commission explains.

“Reducing the large income disparities between countries is one of the greatest challenges of our time,” said Jakob Svensson, chair of the Economic Sciences Prize Committee.

Last year, the 2023 Nobel Prize in Economics was awarded to Harvard professor Claudia Goldin for her research on the impact of women on the labor market. Her research revealed the causes of changes in the labor market, as well as the main reason why the gender gap still exists.

The Nobel Prize was initiated by Swedish inventor Alfred Nobel. In his will, he left his fortune to fund "prizes to those who, during the preceding year, shall have conferred the greatest benefit on mankind." Each prize is worth 11 million Swedish crowns, about $1.1 million.

Nobel appointed the Royal Swedish Academy of Sciences to award the prizes in chemistry and physics, the Swedish Academy to award the literature prize, the Karolinska Institute of Sweden to award the medicine prize, and the Norwegian Parliament to award the peace prize.

In 1968, the Nobel Prize in Economics was added and officially named the Sveriges Riksbank Prize in Economic Sciences in Memory of Nobel. A total of 55 Nobel Prizes in Economics have been awarded to date.

Source: https://tuoitre.vn/nobel-kinh-te-2024-trao-cho-nghien-cuu-ly-giai-vi-sao-co-nuoc-giau-nuoc-ngheo-20241014172253284.htm