Three U.S.-based academics, including two British-born academics, have been recognized for their work showing how the types of institutions introduced by colonizers helped determine whether countries are rich or poor today. A professor has won this year's Nobel Prize in Economics.
The explanation put forward by Turkish-American Daron Acemol, Sheffield-born Simon Johnson, and British James A. Robinson is that a comprehensive system aimed at the long-term interests of European immigrants This suggests that this has resulted in a more prosperous society in the long run.
However, they argue that in countries where the aim was to exploit indigenous peoples and exploit their resources for the benefit of the colonizers, the effects were harmful, resulting in societies that were much poorer and of countries remain stuck in a cycle of low economic growth.
“This is an important reason why once rich former colonies are now poor and vice versa.” The Nobel Prize announcement said:.
The three academics will share the prize, which comes with a cash prize of 11 million kroner (£810,000) and a gold medal. Founded in the 1960s, decades after the first Nobel Prize, the professional National Bank of Sweden Winner of the Economics Prize in memory of Alfred Nobel.
“Reducing the huge income differences between countries is one of the greatest challenges of our time,” said Jacob Svensson, chairman of the Economics Prize. “The winners have demonstrated the importance of social institutions in achieving this.”
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