Abstract

The 2024 Nobel Prize in Economics was awarded for research on the role of institutions in shaping national prosperity. This article examines the contributions of Daron Acemoglu, Simon Johnson and James A. Robinson and explains how inclusive and extractive institutions influence economic, political and social development. Inclusive institutions provide equal political and economic opportunities, encourage innovation and support broad-based development, while extractive institutions concentrate power and resources in the hands of a limited group. The article discusses the relationship between institutions, colonialism and economic development and highlights the importance of institutional structures in determining prosperity and inequality among nations. The study emphasizes that strong and inclusive institutions are essential for sustainable and comprehensive national development.