Stockholm: The Nobel Prize in Economics has been awarded to Turkish-American economist Daron Acemoglu, British-American economists Simon Johnson, and James Robinson for their groundbreaking research on wealth inequality between nations. Their work has demonstrated how political and economic institutions influence a country's prosperity, offering crucial insights into why some nations thrive while others struggle.

The laureates' research, particularly focused on the systems introduced by European colonizers, has shown a strong connection between societal institutions and economic outcomes. According to the prize committee, reducing the global income gap is one of today's greatest challenges, and their work highlights the importance of inclusive institutions in fostering long-term growth.

"Acemoglu, Johnson, and Robinson have shown that much of the income gap between nations is due to differences in political and economic institutions," said Jan Teorell, a member of the award committee. Their findings have been particularly influential in illustrating how colonial legacies shape modern-day economic inequalities, with some colonial powers establishing exploitative systems while others created inclusive frameworks that benefited broader segments of the population.

Acemoglu, a professor at MIT, expressed delight at receiving the award and emphasized that their work supports democracy. Speaking from Athens, he noted that democratizing countries experience faster economic growth, though he cautioned that "democracy is not a panacea" and can be difficult to implement.

The Nobel Prize in Economics, awarded by the Royal Swedish Academy of Sciences, includes a gold medal, a diploma, and a cash reward of $1 million, which the laureates will receive at a ceremony in Stockholm on December 10.