Why is this year’s Nobel prize for Economic Sciences so controversial?

Sat Nov 09 08:45:57 UTC 2024: ## Nobel Prize in Economics Recognizes Role of Institutions in Prosperity

**Stockholm, Sweden -** Daron Acemoglu, Simon Johnson, and James Robinson have been awarded the 2024 Nobel Prize in Economic Sciences for their groundbreaking research on the impact of institutions on a nation’s prosperity. The Royal Swedish Academy of Sciences highlighted their work on “inclusive institutions,” which promote long-term growth and benefit all citizens, and “extractive institutions,” which enrich a select few at the expense of the broader population.

The Academy’s press release also delves into the role of colonialism in shaping institutions. The researchers explain how colonization led to diverse outcomes, with some regions fostering inclusive systems for European migrants while others focused on exploiting resources for the colonizers’ benefit. This, according to their hypothesis, sheds light on why some former colonies remain economically disadvantaged.

However, the research has drawn criticism from some quarters for overlooking the lasting consequences of colonization on the colonized countries. Critics argue that the work fails to adequately address the ongoing impact of colonial policies and their role in perpetuating inequality.

Dr. Surbhi Kesar, a senior lecturer at the School of Oriental and African Studies, University of London, emphasized the need for a nuanced understanding of how historical power dynamics continue to influence economic realities in the present day.