Page 29 - issue 66 en

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ELITE

The Nobel Prize in Economics for Ireland, thrive economically. Their

this year has been awarded to research highlights that the key
Daron Acemoglu, Simon Johnson differentiator between wealthy and
and James Robinson for their poor nations is the stability and

significant contributions to reliability of their institutions rather
understanding why some countries than their natural endowments.
are wealthier than others. This Effective economies are
question is central to fundamentally systems for allocating
macroeconomics, especially resources efficiently. When

considering that the richest 20% of institutions are well-managed and
countries are approximately 30 trustworthy, citizens and investors
times wealthier than the poorest can engage in economic activities

20%. Despite global wealth growth, with confidence, knowing their
the disparity persists, indicating efforts will be rewarded. This
that poorer nations are not principle applies universally, from
catching up.
The laureates' theories challenge

conventional wisdom, particularly
regarding the role of natural
resources and geographic

advantages in economic
prosperity. For instance, countries
rich in resources, like Venezuela,
remain impoverished while 29
resource-scarce nations, such as