Warning of Democratic Backsliding
"Authoritarianism Struggles with Long-Term and Sustainable Growth"
Daron Acemoglu, professor at the Massachusetts Institute of Technology (MIT), USA, awarded the 2024 Nobel Prize in Economics [Image source=Reuters Yonhap News]
This year’s Nobel Prize in Economic Sciences was jointly awarded to Daron Acemoglu, a professor at the Massachusetts Institute of Technology (MIT), who recently warned that although democracy is currently facing difficult times worldwide, authoritarian regimes are unlikely to achieve long-term and sustainable innovation for various reasons.
On the 14th (local time), Professor Acemoglu explained in interviews with the Nobel Committee and local foreign media following the announcement of the Nobel Prize that their research presents the view that democracy is beneficial for economic development. On the same day, Acemoglu was jointly awarded the Nobel Prize in Economic Sciences with James Robinson, a professor at the University of Chicago, who co-authored the book Why Nations Fail studying the relationship between political systems and economic development, and Simon Johnson, a professor at MIT.
When asked about the economic development of China, an authoritarian country, he responded that the Chinese government is making massive investments in innovative fields such as artificial intelligence (AI) and electric vehicles. However, he emphasized that their perspective is that, in the long term, it is generally difficult for authoritarian regimes to achieve innovation and economic development.
He explained, "Generally, authoritarian regimes will have a harder time achieving the results of long-term and sustainable innovation for various reasons."
He also warned about the recent retreat of democracy in various countries. Professor Acemoglu said, "We are currently in a period where democratic countries are going through a difficult path," and emphasized, "In a sense, it is quite important for these countries to find a better, more transparent governance system compared to authoritarian countries and to deliver the promise of democracy to a broader range of people."
Acemoglu and Professor Robinson also focused on the connection between national prosperity and political and social institutions in their 2012 book Why Nations Fail. They analyzed how European powers colonized many regions worldwide, changing the institutions of those societies, which in the long term determined national prosperity. In some places, institutions rooted in exploiting indigenous people and extracting resources for the benefit of colonial settlers took hold, while in others, relatively inclusive political structures and economic systems were established for the long-term benefit of European settlers. This process led to widening disparities.
Jakob Svensson, chair of the Royal Swedish Academy of Sciences’ Economic Sciences Prize Committee, explained the background of the award, saying, "Reducing the enormous income gap between countries is the greatest challenge of our time," and "The laureates have demonstrated how important social institutions are to achieving this."
Professor Johnson, who also received the prize that day, said in an interview posted on the Nobel Committee’s YouTube channel, "I was surprised and delighted to hear the news," and explained, "Our research argues that genuine inclusive democracy is very important for economic development."
When asked how a country can escape poverty, he analyzed, "There is no easy way," adding, "Because too much of poverty is unfortunately the result of old political and economic institutions."
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