The economist who studied the wealth and poverty of nations received the prize
What democracy really does take to build an economy: The case of China, the world’s largest economic system and a democratic colonial era
“Democracies are going through a rough patch,” Acemoglu said. It is important that they return to the high ground of better governance, cleaner governance, and delivering the promise of democracy to a broad range of people.
The findings are pro-democracy, according to the co-author of the book Why Nations Fail. He said that democracy isn’t a panacea.
Despite being ruled with an iron fist, China has grown to become the world’s second-largest economy and lifted hundreds of millions of people out of poverty.
It is very difficult to introduce democracy. “When you introduce elections, that sometimes creates conflict. And in particular, in already polarized societies, elections can lead to short-lived outcomes that are sometimes not democratic in nature.”
The existing institutions sometimes changed but not in the same manner when Europeans colonised large parts of the world. In some colonies, the purpose was to exploit the indigenous population and extract natural resources to benefit the colonizers. In many cases, the colonisers built inclusive political and economic systems.
The 2024 Swedish Kronor Prize in Economic Sciences for the Advancement of Modern-Day Economic Development and its Implications for Women’s Opportunities
The announcement came on a holiday that honors Christopher Columbus and the indigenous people of the new world.
“rather than asking if colonialism is a good idea, we note that colonial strategies have led to different institutional patterns that have lasted over time,” he said while speaking at the news conference where the prize was announced.
The three economists, who will share the 11 million Swedish Kronor (US $1 million) prize for their findings, researched the impact of European colonization on various countries’ economies.
Adam Smith wrote a book about wealth and poverty of nations over 250 years ago, and the economists have focused on it ever since.
Why are some countries richer than others? The 2024 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to three researchers who have helped shed light on this fundamental question.
“They looked specifically at the history of European colonialism and the contrast in the fortunes of countries such as the United States or Australia versus countries in Sub-Saharan Africa or South Asia,” says Diane Coyle, an economist at the University of Cambridge, UK. “Their work has had a profound impact on how people think about economic development.”
“The laureates demonstrated that the places that were, relatively speaking, the richest at their time of colonization are now among the poorest,” the Royal Swedish Academy of Sciences said in a statement.
The distribution of the prizes seem to reflect long-standing inequalities in women’s opportunities. “Let’s hope in the future we see that change and we see an equal number of women honoured.”
Speaking by telephone, he said he wassurprised and shocked to receive the call. It is on top of your dreams to have a good career. I am honoured, it is a great surprise.
The peace prize was the only one given this year that went to men. “Let’s hope it is a one-year blip,” Coyle says. “In recent years, there have been more women winners [in economics]. If it were to be the start of a reversal, that would be a cause for concern.