Economics Nobel laureates Daron Acemoglu, Simon Johnson and James A. Robinson are being announced at the Royal Swedish Academy of Sciences in Stockholm, Sweden on October 14, 2024. Photo courtesy: Reuters
Royal Swedish Academy of Sciences awarded on Monday (October 14, 2024) Nobel Prize in Economics awarded to Daron Acemoglu, Simon Johnson and James A. Robinson “For the study of how institutions are formed and affect prosperity”. All three demonstrated how societies with poor rule of law and institutions that capitalize on their populations with exploitative intentions bring neither development nor change for the better. In fact, a similar topic was explored by Mr Acemoglu and Mr Robinson in a previous book Why Nations Fail: The Origins of Power, Prosperity, and Poverty (2012).
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Co-authors explore political and economic divergence
Why do nations fail? It was the second of three books written together by Mr. Robinson and Mr. Acemoglu. Each of them explored the prevailing political scenarios of a region throughout its economic history. before them, Economic origins of dictatorship and democracy (2005) proposed “a theory of the emergence and stability of democracy and dictatorship”. Third book, title Narrow Corridor: State, Society and the Fate of FreedomExamines “the constant and inevitable conflict between states and society.” Its purpose was to shed light on the profound historical process that has helped shape the modern world.
One of the core tenets of the duo’s research has been to demonstrate the exploitative role of “extractive economic institutions” – which do not provide the necessary incentives for people to save, invest and innovate. An excerpt from “Extractive political directives support these economic institutions by strengthening the power of those who benefit from extraction,” Why do nations fail? The detail reads, “Extended economic and political institutions, although their details vary in different circumstances, are always at the root of this failure.”
Robinson’s interest in Sub-Saharan Africa and Latin America
The MIT professor has a special interest in issues related to Sub-Saharan Africa and Latin America. During his career, Mr. Robinson conducted fieldwork and collected data in Bolivia, Colombia, Haiti, Democratic Republic of the Congo, Nigeria, Sierra Leone, South Africa, and Zimbabwe. In fact, the Nobel laureate is a Fellow at the Institute of African Studies at the University of Nigeria in Nsukka. In addition, he taught a summer school at the University of the Andes in Bogotá between 1994 and 2002.
To give perspective in their reading: a 2008 paper titled ‘Governance and political economy constraints on priorities in the World Bank’s country assistance strategy in Sierra Leone‘ – Describing the developing political landscape in the West African nation, he said, “Although political institutions are not the whole story, they heavily influence political incentives and the history of Sierra Leone makes clear that they have a first-order There are effects”. He said that while the FIS rightly promoted decentralization (at the time), the reform process had to be “deepened” and achieved by “reducing executive autonomy, strengthening parliament and introducing greater democracy into the institution of primacy”. Had to be complemented. ,
Currently, Mr. Robinson is the Reverend Dr. Richard L. Professor of Global Conflict Studies. Pearson Professor and University Professor in the Harris School of Public Policy and Department of Political Science at the University of Chicago. The scholar becomes the 101st recipient associated with a Nobel-winning university.
He completed his Ph.D. Completed. After attending the University of Warwick (1985–86) and the London School of Economics and Political Science (1979–82), he graduated from Yale University in 1993.
Daron Acemoglu: Introduction to Politics and Economics
The Turkish-born Institute Professor of Economics’ research at MIT spans a wide range of areas within economics. They include political economy, economic development and growth, human capital theory and network economics, among others.
An IMF publication (March 2010) described how a night in jail potentially underlines the importance of regulation in the market system. Then a teenager and an unlicensed driver, Mr Acemoglu was careening down a deserted highway in Istanbul (Turkey) – usually used by such drivers for practice. However, it was on that day that the police intervened resulting in him and others being arrested and confined in city cells “until their severe punishment the next morning”. The profile reads, “A few hours of observation of the cement decoration of his cell and the administrative punishment that followed left a lasting recognition of the importance of impartially adjudicated rules, even in ostensibly free markets.” Me too.”
Mr. Acemoglu completed his bachelor’s degree from the University of York (England) in 1989. Subsequently, he joined the London School of Economics for his Masters and PhD. He joined MIT in 1993 and has been at the institute since then.
In addition to the mentioned areas of research, Mr. Acemoglu has also made notable contributions to research related to labor economics – examining the relationship between skills and wages and the effects of automation on employment and growth.
Although currently respected for his political economy research, the MIT professor, despite positive overall feedback, was warned against doing so when his tenure ended. Thus, he hid the work for the next two years until he got his tenure. However, as noted in an IMF profile, “by the time Acemoglu secured a permanent position at MIT in 1998, his political economy approach had become almost mainstream.”
Simon Johnson: academic with policy experience
Mr. Johnson is the Ronald A. Professor of Entrepreneurship at the MIT Sloan School of Management. Kurtz is a professor. The academic’s 20-year-long career in policy making has primarily focused on issues related to economic growth as well as crisis prevention and mitigation (in financial markets and the economy). In other words, how can policymakers limit the impact of shocks and manage the risks facing their countries. The MIT professor borrows his expertise from his previous engagements as IMF Chief Economist (March 2007 to August 2008) and as a member of the US Securities and Exchange Commission’s Advisory Committee on Market Information (2000–01). In fact, his comments relating to the need for continued strong market regulation were published as part of the Committee’s final report.
In addition to regulatory policies, Mr. Johnson has also focused on developmental economics, including how fiscal policy and technology can enhance or restrict broader prosperity.
He completed his Ph.D. Completed. Only in MIT. This was after joining the University of Manchester for his Masters and the University of Oxford for his Bachelors.
published – October 14, 2024 09:15 PM IST