The 2024 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Daron Acemoglu and Simon Johnson, both professors at the Massachusetts Institute of Technology, and James A. Robinson from the University of Chicago. The trio was recognized for their research on the formation of institutions and how they impact economic prosperity.

Their work reveals that inclusive institutions—those that promote democracy, rule of law, and equitable economic opportunities—are crucial for sustained prosperity. In contrast, extractive institutions, which prioritize the interests of a powerful few, hinder long-term development, leading to poverty and inequality.

A key part of their research examines how European colonization affected global institutions, explaining why some former colonies prospered while others became impoverished. In regions where colonizers established inclusive systems, long-term growth was possible. However, in areas where colonizers focused on resource extraction, exploitative institutions persisted, causing continued economic struggles.

Their research provides significant insights into the root causes of global inequality and offers valuable lessons for policymakers and economists working to foster development and reduce poverty. The awardees will share the prize sum of 11 million Swedish kronor (approximately $1 million USD).