The Big Picture published by Project Syndicate (10/2024)
This year’s Nobel Prize in Economic Sciences has been awarded to Daron Acemoglu, Simon Johnson, and James A. Robinson for improving our understanding of the relationship between institutions and prosperity. These scholars’ theoretical tools for analyzing why and when institutions change have significantly enhanced our ability to explain – and address – the vast differences in wealth between countries.
Nobel Laureates Help Solve the Inequality Puzzle
While even the world’s poorest economies have become richer in recent decades, they have continued to lag far behind their higher-income counterparts – and the gap is not getting any smaller. According to this year’s Nobel Prize-winning economists, institutions are a key reason why. From Ukraine’s reconstruction to the regulation of artificial intelligence, the implications are as consequential as they are far-reaching.
