By Jeanna Smialek
On Monday, the Nobel Memorial Prize in Economic Sciences was conferred upon Daron Acemoglu and Simon Johnson from the Massachusetts Institute of Technology, alongside James Robinson from the University of Chicago.
They were honored for their contributions regarding international economic disparities and for their analysis of how institutions influence prosperity.
According to the prize committee, the recipients employed both theoretical frameworks and empirical data to enhance understanding of inequality among nations.
“Addressing the significant income disparities between nations stands as one of today’s foremost challenges,” stated Jakob Svensson, chair of the economics prize committee. “The laureates have illustrated the critical role societal institutions play in this endeavor.”
Their investigations revealed that the institutions established during European colonization have significantly influenced economic results in the previously colonized nations over time.
“Instead of debating whether colonialism is beneficial or detrimental, we observe that various colonial strategies have resulted in divergent institutional patterns that have endured,” Acemoglu remarked during a news conference following the prize announcement.
Their studies indicate that inclusive institutions are generally correlated with a country’s trajectory towards sustained prosperity, whereas extractive institutions—designed to maintain the status quo for those in power—tend to yield short-lived benefits for the ruling class.
“In broad terms, our research favors democratic governance,” Acemoglu mentioned. “However, democracy is not a cure-all.”
He highlighted that establishing democracy can be challenging, and there are growth avenues for non-democratic countries, such as rapidly exploiting a nation’s resources for accelerated economic development.
Nevertheless, he asserted that “more authoritarian growth” tends to be less stable and less innovative.
Acemoglu has long featured on anticipated Nobel laureate lists, yet he expressed that such accolades are not predictable.
“You aspire to have a fulfilling career, but this is an added surprise,” Acemoglu said during the news conference from Athens, Greece. “It’s a remarkable honor and an unexpected delight.”
Who received the economics prize in 2023?
In the previous year, Claudia Goldin was recognized for her exploration into the factors contributing to gender disparities in labor market participation and income.
Who else was honored this year?
— The Nobel in physiology or medicine was awarded to Victor Ambros and Gary Ruvkun for their discovery of microRNA, which plays a role in cell development and function.
— The physics prize went to John J. Hopfield and Geoffrey E. Hinton for breakthroughs that enhanced computer learning to mimic human brain processes, laying the groundwork for advancements in artificial intelligence.
— The chemistry prize was jointly conferred on Demis Hassabis and John Jumper of Google for employing AI to forecast the structures of millions of proteins, alongside David Baker, who used computational methods to create a novel protein.
— The literature prize was awarded to Han Kang, marking her as the first South Korean author to receive the accolade, recognized for “her powerful poetic language addressing historical traumas.”
— The Nobel Peace Prize was bestowed upon the Japanese grassroots organization Nihon Hidankyo, which has represented countless survivors of the U.S. atomic bombings in Hiroshima and Nagasaki since 1945.
