NEW DELHI:The Nobel Prize in Economics 2024 has been awarded to Daron Acemoglu, Simon Johnson, and James Robinson for their groundbreaking research on how institutions shape the economic destinies of nations.

 Their work sheds light on the historical and institutional roots of global inequality, exploring why some countries flourish while others remain trapped in poverty.

Their research, rooted in colonial history, explains that nations which developed "inclusive institutions" — upholding the rule of law and property rights — have seen sustained growth and prosperity. Conversely, nations with "extractive institutions" designed to benefit elites at the expense of the broader population have struggled with low economic growth.

The trio's influential works, including the 2012 book Why Nations Fail, underscore that differences in institutions, rather than factors like climate or geography, play a key role in determining a country’s economic success.

Acemoglu, Johnson, and Robinson also highlighted how colonial legacies still influence inequality today, a theme that is increasingly relevant amid global economic challenges.

Their research comes at a time when rising corruption and weakening democratic institutions worldwide threaten economic stability.

In their influential works, Daron Acemoglu, Simon Johnson, and James Robinson explore how economic and political institutions shape inequality and prosperity.

Their book Why Nations Fail underscores how institutions that favor elites lead to sustained inequality. They argue that "extractive institutions" enrich the powerful while depriving the broader population of opportunities for growth, often stifling innovation and development.

In Power and Progress, Acemoglu and Johnson delve into the history of technological innovations over the past millennium, illustrating how advancements—ranging from agricultural improvements to AI—have disproportionately benefited elites rather than uplifting society as a whole.

They highlight that while these innovations could democratize prosperity, they often "squeeze" resources from the masses to favor a wealthy minority, reinforcing the rich-poor divide .

These insights from their works highlight the enduring problem of economic disparity and how technological progress often reinforces existing hierarchies rather than leveling the playing field.