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Daron Acemoğlu, Simon Johnson, and James Robinson (AJR) won the 2024 Sveriges Riksbank Prize in Economic Sciences for their research on how institutions impact economic prosperity.
Their work, especially on the historical roots of economic institutions, has influenced understanding of economic success and failure worldwide.
Criticisms of AJR's Work
Assumes European models of "good institutions" are universal, ignoring diverse development paths.
Simplifies institutions into "inclusive" or "extractive," fails to capture the complexity of historical and institutional dynamics
Ignores partial inclusivity and exploitation in Western development, like during the Industrial Revolution.
Fail to acknowledge the role of state intervention and industrial policies in the development of today’s wealthy nations.
AJR's binary framework doesn't adequately explain the hybrid nature of colonial institutions, which combined local governance with imposed authority
Downplays how colonialism entrenched inequalities, affecting former colonies' development.
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