2024 prize lectures in economic sciences | Daron Acemoglu, Simon Johnson and James Robinson

In this Nobel Prize lecture, the speakers address the striking differences in income and living standards between countries, focusing on how societal institutions influence economic success. They argue that inclusive institutions—those that uphold the rule of law and distribute power widely—are essential for fostering economic growth. In contrast, extractive institutions, which centralize power among a few, stifle progress. Drawing on European colonial history, they illustrate how different approaches—exploitation versus inclusive development—have led to vastly different outcomes that still affect nations today. The lecture also examines why extractive institutions endure, pointing to the interests of the ruling elite and the difficulties in committing to long-term inclusive changes. Lastly, the speakers touch on the impact of emerging technologies like AI, discussing their potential to either exacerbate inequality or promote shared prosperity, depending on how society chooses to harness them.