Inclusive institutions are pathways to economic growth

The 2024 Nobel Memorial Prize in Economic Sciences was awarded to Daron Acemoglu, Simon Johnson, and James Robinson for their research on how a nation's institutions influence its prosperity. Their work explores the relationship between political institutions and economic growth, emphasizing that inclusive institutions, which protect property rights and allow broad economic participation, lead to long-term prosperity. In contrast, extractive institutions concentrate power and wealth in the hands of elites, stifling growth. The researchers argue that inclusive democracies promote innovation and sustainable growth, while authoritarian regimes often face unstable and less innovative growth. Acemoglu highlights the importance of democratic institutions for equitable and enduring development.

Continue reading: https://www.siasat.com/inclusive-institutions-are-pathways-to-economic-growth-3116314/