NOBEL PRIZE FOR RESEARCH ON INEQUALITY, SOCIAL INSTITUTIONS AND PROSPERITY

 The  2024 Nobel memorial Prize in Economic Sciences were won by the trio Turkish American Daron Acemoglu,Simon Johnson and James Robinson both  British Americans  for their valuable research on wealth Inequality between nations and relationships between societal Inequality and Prosperity. Research into Inequality of  wealth,  across countries by examining various political and economic systems introduced by European colonisers , The trio have demonstrated the relationship between societal institutions and prosperity. While Acemoglu and Simon Johnson are professors at Massachusetts  Institute of Technology, whereas  Robinson is serving at Chicago University. The Jury highlighted that  through  their research work they have illuminated how economic and political institutions play a decisive role in determining that while some countries prospers others do not.As they researched on global inequality in wealth and reasons for some countries to succeed and others to fail,they found that when Europeans colonized large parts of the globe ,the institutions in those societies changed. Societies with  a poor rule of law and institutions that exploit population do not generate growth or" change for better".In some places the aim was to exploit the indigenous population and extract resources for the colonisers benefit.In other places colonisers formed inclusive political and economic systems for the long term benefits of European migrants explained the winners in the studies.Vast differences in prosperity between nations are due to persistent differences in societal institutions. By examining various political and economic systems introduced by European colonisers. Their research work have been able to demonstrate the relationship between and prosperity. They have developed theoretical tools that can explain differences in institutions persists and how institutions can change.The laureates have obviously contributed innovative research about what affect countries' economic prosperity in the long run.Their Insights regarding how institutions influence prosperity  show that work to support democracy  and inclusive institution  is important for  the promotion of economic development. 

According to the Nobel Laureates wealth Inequality is so rampant that the  richest twenty percent of the world's  countries are now thirty times richer  than the poorest twenty percent of  the  world. It may be noted that identified historical roots of poorer nations  may change  when there is differences in economic and political institutions in the society. While the factors contributing  to 1. Inclusive  institutions are  property rights and inclusive democracy.On the contrary, extractive institutions comprised of autocracy, exploration and related evils. Till 1990s jobs displaced by technologies were compensated but afterwards there was a structural break with technologies like robotics and AI dominating employment. The Jury also noted how the city of Nogales, which is divided by the US- Mexican border, where residents on the US side of the city tend to be better off  not because of geography or culture but institutions. The US economic system provides residents greater opportunities to  choose their education, profession and broad political rights. Prof.Acemoglu  observed that " The economies of countries that democratise, starting from a non democratic regime" grow faster than non democratic regime " and it is a substantial gain".

The trio infact recieved Nobel for research on the gaps in prosperity between nations and how institutions affect economic progress. As chairman of the Economics prize committee Jakob Svensson observed " reducing the vast differences in income between countries is one of our time's greatest challenge...the laureates have demonstrated the importance of societal institutions for achieving this objective.Their study suggests that inclusive institutions tend to put countries on a pathway to long term prosperity, while extractive one's- designed to retain control-provide short term gains for the people in power.State's institutions presence is very much needed to achieve positive economic outcomes of growth and equity. These institutions vary from law and order to conduct of enforcement, rights to private property , efficient public administration to equity, fairness justice etc.Along with good governance,  capital is also required. Eventhough  the authors have eurocentric explanation for institutional arrangements in different parts of the world countries like East Asia experienced, different colonisers, achieved rapid progress without democracy specifically in the Western sense. In India regions which were formerly under British Presidencies fared comparatively better growth. Instead of focusing on whether colonialism is  good or bad Dr.Acemoglu,Johnson and Robinson found that colonization brought major changes  in global development and prosperity today is partly a legacy of history.In short narrowing down Inequality is one of our time's greatest challenge and the laureates have demonstrated the importance of different social and inclusive institutions in achieving that .Of course the task is  far more greater!