Turkey's Acemoğlu and colleagues win Nobel prize in economics

Turkey's Daron Acemoğlu has won the Nobel Prize in Economics along with colleagues Simon Johnson and James Robinson for their work on the institutional sources of economic inequality.

Monday October 14 2024 11:52 pm

Reuters

Three U.S.-based academics on Oct. 14 won the 2024 Nobel Economics Prize on Oct. 14 for research that explored the aftermath of colonization to understand why global inequality persists today, especially in countries dogged by corruption and dictatorship.

Simon Johnson and James Robinson, both British-American and Turkish-American Daron Acemoğlu were commended for their work on "how institutions are formed and affect prosperity", the Royal Swedish Academy of Sciences said.

"Reducing the vast differences in income between countries is one of our time's greatest challenges," said Jakob Svensson, Chair of the Committee for the Prize in Economic Sciences.

"They have identified the historical roots of the weak institutional environments that characterize many low-income countries today," he told a press conference.

The award came a day after a World Bank report showed that the world's 26 poorest countries - home to 40 percent of its most poverty-stricken people - are more in debt than at any time since 2006, highlighting a major reversal in the fight against poverty.

The prestigious award, formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is the final prize to be given out this year and is worth 11 million Swedish crowns ($1.1 million).
Acemoglu told reporters in Athens that data gathered by pro-democracy groups showed that public institutions and the rule of law in many parts of the world were currently being weakened.

"Authoritarian growth is often more unstable and doesn't generally lead to very rapid and original innovation," he said, referring to China as "a bit of a challenge".

Johnson told Reuters by telephone that established institutions in the United States were under stress, notably due to Donald Trump's refusal to acknowledge he lost the 2020 election.

"I think that's the biggest concern that I see in the industrialized world," he said, adding the Nov. 5 presidential election was "a serious stress test" for U.S. democracy.

Acemoglu and Johnson work at the Massachusetts Institute of Technology, while Robinson is at the University of Chicago.

The laureates' research showed how European colonization had dramatic but divergent impacts across the world, depending on whether the colonizer focused on the extraction of resources or the setting up of long-term institutions for the benefit of European migrants.

This, they found, resulted in a "reversal of fortune" where former colonies that were once rich became poor, while some poorer countries - where institutions were often set up - were in the end able to garner some generalized prosperity through them.

Another finding covered how "dangerous" it was to colonize an area: the higher mortality among the colonizers, the lower today's current output per capita, a measure of prosperity.

The award is not one of the original prizes for science, literature and peace created in the will of dynamite inventor and businessman Alfred Nobel and first awarded in 1901, but a later addition established and funded by Sweden's central bank in 1968.

Past winners include a host of influential thinkers such as Milton Friedman, John Nash - played by actor Russell Crowe in the 2001 film "A Beautiful Mind" - and, more recently, former U.S. Federal Reserve Chairman Ben Bernanke.

Research into inequality has featured strongly in recent awards. Last year, Harvard economic historian Claudia Goldin won the prize for her work highlighting the causes of wage and labor market inequality between men and women.

In 2019, economists Abhijit Banerjee, Esther Duflo, and Michael Kremer won the award for work on fighting poverty.

The economics prize has been dominated by U.S. academics since its inception, while U.S.-based researchers also tend to account for a large portion of winners in the scientific fields for which 2024 laureates were announced last week.

That crop of prizes began with U.S. scientists Victor Ambros and Gary Ruvkun winning the prize for medicine on Monday and concluded with Japan's Nihon Hidankyo, an organization of survivors from Hiroshima and Nagasaki who campaigned for the abolition of nuclear weapons landing the award for peace on Friday. ($1 = 10.3967 Swedish crowns)

Acemoğlu was part of the main opposition Republican People's Party (CHP)'s new vision for Turkey’s economic recovery ahead of the 2023 general elections.

As part of this vision, former CHP leader Kemal Kılıçdaroğlu appointed the renowned economist as his advisor among a team including American economist Jeremy Rifkin, Bilkent University academic Prof. Refet Gürkaynak, former chief economist of the Turkish Central Bank Prof. Dr. Hakan Kara, and founder of the Deep Poverty Network Hacer Foggo.