<ul><li>The Nobel Memorial Prize in Economic Sciences was awarded to Daron Acemoglu, Simon Johnson, and James Robinson for their research on the relationship between institutions and economic inequality.</li><li>Their theory suggests that the quality of institutions (inclusive or extractive) determines whether a nation prospers or struggles with poverty.</li><li>Inclusive institutions promote broad participation in the economy and enforce property rights, leading to higher living standards. Extractive institutions concentrate power and wealth, creating significant disparities.</li><li>Their research highlights the importance of transforming institutions to reduce inequality and create a more prosperous world.</li></ul>

Rich vs. Poor Nations: Nobel Economists Unveil the Hidden Power of Institutions

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