This year's Economics Nobel recognises three academics — Daron Acemoglu, Simon Johnson, and James A Robinson — who explore why some countries thrive while others struggle
Acemoglu is an economist, Johnson is a former IMF chief economist, and Robinson is a political scientist.
Together, they investigate why certain countries become rich while others remain poor
The answer lies in ‘institutions’ — mechanisms that check the misuse of power and create an environment for entrepreneurship, investment, and growth to flourish
AJR's research links institutional quality to colonial history, showing that regions with more European settlers, due to healthier climates, developed stronger institutions
Their work challenges the idea that wealth is predetermined by geography or genetics. Instead, they argue that it’s the institutional choices that shape a nation’s prosperity
India’s prosperity depends on institutional reforms:
Protecting property rights, lowering entrepreneurial risks, delivering swift justice, and promoting independent regulation for sustainable growth