For centuries, thinkers and social scientists have sought to unravel the explanations for why some societies prosper while others lag behind.
The book considered the cornerstone of economic science is aptly titled An inquiry into the nature and causes of the wealth of nations, published by the Scottish Adam Smith in 1776 and known as The Wealth of Nations. The work was popularized by the ideas of the ‘invisible hand’ and comparative advantages.
More recently, three of the most influential researchers on this topic were Daron Acemoglu, James Robinson, and Simon Johnson – the trio honored today with the Nobel Prize in Economics.
“They have helped us understand the difference in the prosperity of nations,” summarized the prize committee.
The researchers were chosen for their “studies on how institutions are formed and how they affect prosperity.”
Acemoglu and Robinson are the authors of Why Nations Fail, published in 2012. Similar to Smith’s work, they investigated the reasons for inequality in the development of societies.
The central conclusion of their work is that the explanation lies in the quality of institutions – and whether they are inclusive or extractive.
“Reducing the vast income disparities between countries is one of the greatest challenges of our time,” said Jakob Svenson, the chair of the Economic Sciences prize committee. “The laureates have demonstrated the importance of social institutions in achieving this goal.”
Johnson has conducted numerous studies alongside Acemoglu on development issues, and both are professors at the Massachusetts Institute of Technology (MIT). They recently published Power and Progress – A thousand-year struggle between technology and prosperity, which warns of the social and economic risks of artificial intelligence.
Robinson is a professor at the University of Chicago. With Acemoglu, he also wrote The Narrow Corridor – a book that delves deeper into some analyses from Why Nations Fail.
Journalists love to interview Nobel laureates. These conversations are always stimulating, far-reaching, and impactful.
In the past two years, I had the pleasure of interviewing all three of today’s laureates.
The interviews, published by Brazil Journal, are below. It’s worth reading again.
Interview with James Robinson in 2022:
Why is Brazil stagnating? See the response from the author of ‘Why Nations Fail’
Interview with Daron Acemoglu in 2022:
Where is Brazil failing? We asked the expert, Daron Acemoglu
Interview with Simon Johnson in 2024:
Artificial intelligence could further concentrate income. The warning comes from MIT
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Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
