- The 2024 Nobel Prize in Economics was awarded for groundbreaking research on wealth inequality between nations.
- The laureates demonstrated how political and economic institutions shape prosperity across countries.
- The awarded work highlights the relationship between societal institutions and prosperity by analysing the systems introduced by European colonisers.
- The research shows how institutional differences lead to vast income disparities between countries.
- The laureates’ research explains why some countries prosper while others remain trapped in low economic growth.
- The research emphasizes the role of democracy in driving faster economic growth in countries transitioning from non-democratic regimes to democratic ones.
- The work advocates that inclusive political and economic institutions foster long-term prosperity.
Dig Deeper: Know more about India’s Wealth Inequality status as per the World Inequality Database.
