Nobel Laureates Unveil Colonial Legacy's Role in Global Inequality

Three U.S.-based economists, Simon Johnson, James Robinson, and Daron Acemoglu, won the 2024 Nobel economics prize for research on how colonialism's aftermath explains persistent global inequality, especially in corrupt and dictatorial countries. Their work highlights how historical institutional weaknesses impact modern economic disparities.

Three U.S.-based academics were awarded the 2024 Nobel economics prize on Monday for their groundbreaking research into the lasting effects of colonization on global inequality. Simon Johnson, James Robinson, and Daron Acemoglu were recognized for their analysis of how different institutions shape prosperity, according to the Royal Swedish Academy of Sciences.

Jakob Svensson, Chair of the Committee for the Prize in Economic Sciences, highlighted the significance of their work, acknowledging the challenge of reducing income disparities between nations. The Nobel prize announcement coincided with a recent World Bank report that revealed increasing debt among the world's poorest countries, underscoring a reversal in poverty reduction efforts.

The laureates' research illustrated how European colonization created varied economic outcomes based on the focus on resource extraction versus institution building. This 'reversal of fortune' led previously wealthy colonies to become impoverished, while regions with institutional foundations achieved prosperity. The Nobel economics award, introduced by Sweden's central bank in 1968, continues to honor transformative economic insights.

(With inputs from agencies.)