Nobel Prize in Economics awarded for research on institutions and prosperity

Daron Acemoglu, Simon Johnson, and James Robinson won the Nobel Prize in Economics for their research on how the quality of a country's institutions affects its economic prosperity. Their work highlights the historical impact of colonialism on institutional development. The economists found that countries with strong institutions, which protect property rights and limit corruption, tend to be more prosperous. They argue that colonial powers often established weak institutions in resource-rich areas, leading to long-term economic challenges. Their research suggests that the persistence of these institutions is crucial for economic success. They caution against undermining democratic institutions, as this could lead to reduced prosperity and increased authoritarianism.