The 2024 Nobel Prize in Economics, awarded to Daron Acemoglu, Simon Johnson and James A. Robinson, comes at a critical time for the evolution of global society and economy. At a time of strong social detachment. Recognition of his work on the fundamental role of institutions in the prosperity of nations could not be more relevant in a global context where skepticism towards traditional structures of power and influence is growing. If these three economists teach us anything, it is that, far from being mere bureaucratic mechanisms, institutions are the foundations on which prosperous and equitable societies are built, or structures of poverty and inequality are perpetuated.
Their works highlight that the wealth or poverty of a country depends as much on geography, natural resources or culture, as on the type of institutions that are developed and, often, imposed. His research reminds us that key moments in history—particularly colonialism—introduced systems that would determine the fate of entire nations. Countries that received inclusive institutions, which encouraged political participation and access to opportunities, are more prosperous today. While others, whose institutions were extractive and exploitative, are still struggling to break the cycle of poverty.
This message resonates powerfully today, when the bond between citizens and institutions is increasingly fragile. Many people observe institutions – ranging from governments to international organizations – as distant and alien entities, ineffective or even corrupt. However, the Nobel laureates remind us that it is these same institutions—when they operate in an inclusive and fair manner—that can change the course of societies. The current challenge is not to reject institutions, but to transform them so that they better serve collective interests.
in his book Why countries failAcemoglu and Robinson delve into this idea. Societies that manage to build institutions that protect individual rights, ensure economic competition, and promote innovation tend to prosper. This is especially important at a time when technology, climate change and geopolitical tensions require strong, flexible and adaptive institutional responses that guide nations towards a more just and sustainable future. The well-known term “extractive elites” arises from the aforementioned work, which are those who deviate from obtaining the common good and dedicate their efforts to their own well-being and that of the group to which they belong.
The work of these three economists is both academic and eminently practical. It offers a mirror in which to look to understand why some nations have managed to prosper and others have not. In their research, it is clear that the key is not to look for shortcuts, but to redouble efforts to strengthen institutions. In times when mistrust seems to prevail, their work reminds us that true change is not achieved through destruction, but from the improvement and reinforcement of the structures that sustain societies.
Santiago Carbó Valverde He is a professor of economic analysis at the University of Valencia and director of financial studies at Funcas.
