2024 Nobel Prize in Economics announced! Three American professors receive awards for demonstrating the importance of social systems to national prosperity

The Zhitong Finance App learned that three American professors won the Nobel Prize in Economics for their research on the importance of social systems in national prosperity.

Daron Acemoglu and Simon Johnson of the Massachusetts Institute of Technology and James Robinson of the University of Chicago received the “Swedish Central Bank Memorial Alfred Nobel Prize in Economics”.

According to their research, one of the reasons why some countries prosper and others don't is due to the type of system developed when Europeans colonized the region.

In some places, these agencies sought to extract resources and exploit indigenous peoples for the benefit of the colonists. In other countries, inclusive political and economic systems have been established for the long-term benefit of European immigrants.

Explaining the work of Acemoglu, Johnson, and Robinson, the Nobel Institute said, “Some countries are stuck in the plight of extractive systems and low economic growth. Introducing an inclusive system will create long-term benefits for everyone, but an extractive system will bring short-term benefits to those in power.”

Jakob Svensson, chairman of the Nobel Prize in Economics chairman, said, “Narrowing the huge income gap between countries is one of the biggest challenges of our time. The three winners have proven the importance of social institutions in achieving this goal.”