Summary
- Daron Acemoglu, Simon Johnson, and James Robinson have been awarded the 2024 Nobel memorial prize in economics for their work on how institutions influence economic development.
- Their theory divides institutions into “inclusive” and “extractive” categories, claiming that the former fosters economic development while the latter stifles it.
- Critics argue that their analysis does not consider countries that have achieved rapid growth without these supposedly necessary inclusive institutions.
- The laureates’ work has also been criticized for legitimizing western institutions and overlooking the brutality of colonialism.