Nobel economics prize goes to 3 economists who found that freer societies are more likely to prosper

STOCKHOLM (AP) — The Nobel memorial prize in economics was awarded Monday to three economists who have studied why some countries are rich and others poor and have documented that freer, open societies are more likely to prosper.

The work by Daron Acemoglu, Simon Johnson and James A. Robinson “demonstrated the importance of societal institutions for a country’s prosperity,” the Nobel committee of the Royal Swedish Academy of Sciences said at the announcement in Stockholm.

Acemoglu and Johnson work at the Massachusetts Institute of Technology, while Robinson does his research at the University of Chicago.

Jakob Svensson, chair of the Committee for the Prize in Economic Sciences, said their analysis has provided "a much deeper understanding of the root causes of why countries fail or succeed.”

Reached by the academy in Athens, Greece, where he was to speak at a conference, the Turkish-born Acemoglu, 57, said he was astonished by the award.

“You never expect something like this," he said.

Acemoglu said the research honored by the prize underscores the value of democratic institutions.

“I think broadly speaking the work that we have done favors democracy,” he said in a telephone call with the Nobel committee and reporters in Stockholm.

But, he added: “Democracy is not a panacea. Introducing democracy is very hard. When you introduce elections, that sometimes creates conflict.”

In an interview with The Associated Press, Robinson, 64, said he doubts that China can sustain its economic prosperity as long as it keeps a repressive political system.

“There’s many examples in world history of societies like that that do well for 40, 50 years," Robinson said by phone. “What you see is that’s never sustainable. ... The Soviet Union did well for 50 or 60 years.''

Robinson said many societies have successfully made the transition to what he, Acemoglu and Johnson call an “inclusive society.’’

“Look at the United States," Robinson said. “This was a country of slavery, of privilege, where women were not allowed to take part in the economy or vote.”

“Every country that is currently relatively inclusive and open made that transition," he added. "In the modern world, you’ve seen that in South Korea, in Taiwan, in Mauritius.’’

Acemoglu and Robinson wrote the 2012 bestseller, “Why Nations Fail: The Origins of Power, Prosperity, and Poverty," which argued that manmade problems were responsible for keeping countries poor.

In their work, the winners looked, for instance, at the city of Nogales, which straddles the U.S.-Mexico border.

Despite sharing the same geography, climate and a common culture, life is very different on either side of the border. In Nogales, Arizona, to the north, residents are relatively well-off and live long lives; most children graduate from high school. To the south, in Mexico’s Nogales, Sonora, residents are much poorer, and organized crime and corruption abound.

The difference, the economists found, is a U.S. system that protects property rights and gives citizens a say in their government.

Acemoglu expressed worry Monday that democratic institutions in the United States and Europe were losing support from the population.

“Support for democracy is at an all-time low, especially in the U.S., but also in Greece and in the UK and France,“ Acemoglu said on the sidelines of the conference in an Athens suburb.

“And I think that is a symbol of how people are disappointed with democracy,” he said. “They think democracy hasn’t delivered what it promised.''

Robinson agreed. "Clearly, you had an attack on inclusive institutions in this country," he said. “You had a presidential candidate who denied that he lost the last election. So President (Donald) Trump rejected the democratic rule of the citizens. ... Of course, I’m worried. I’m a concerned citizen.”

Johnson told the AP that economic pressures were alienating many Americans.

“A lot of people who were previously in the middle class were hit very hard by the combination of globalization, automation, the decline of trade unions, and a sort of shift more broadly in corporate philosophy,'' Johnson said. "So instead of workers being a resource to be developed, which they were in the 19th and early 20th century, they became a cost to be minimized ... Now, that squeezed the middle class.’’

"We have, as a country, failed to deliver in recent decades on what we were previously very good at, which was sharing prosperity,'' Johnson said.

One key for the future, Johnson said, is how societies manage new technologies such as artificial intelligence.

“AI could go either way," he said. "AI could either empower people with a lot of education, make them more highly skilled, enable them to do more tasks and get more pay. Or it could be another massive wave of automation that pushes the remnants of the middle down to the bottom. And then, yes, you’re not going to like the political outcomes.’’

In their work, the economists studied institutions that European powers such as Britain and Spain put in place when they colonized much of the world starting in the 1600s. They brought different policies to different places, giving later researchers a “natural experiment" to analyze.

Colonies that were sparsely populated offered less resistance to foreign rule and therefore attracted more settlers. In those places, colonial governments tended to establish more inclusive economic institutions that “incentivized settlers to work hard and invest in their new homeland. In turn, this led to demands for political rights that gave them a share of profits,” the Nobel committee said.

In more densely populated places that attracted fewer settlers, the colonial regimes limited political rights and set up institutions that focused on “benefiting a local elite at the expense of the wider population," it said.

“Paradoxically, this means that the parts of the colonized world that were relatively the most prosperous around 500 years ago are now those that are relatively poor,” it added, noting that India’s industrial production exceeded the American colonies’ in the 18th century.

The economics prize is formally known as the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel. The central bank established it in 1968 as a memorial to Nobel, the 19th-century Swedish businessman and chemist who invented dynamite and established the five Nobel Prizes.

Though Nobel purists stress that the economics prize is technically not a Nobel Prize, it is always presented together with the others on Dec. 10, the anniversary of Nobel's death in 1896.

Nobel honors were announced last week in medicine, physics, chemistry, literature and peace.

Corder reported from The Hague, Netherlands, and Wiseman from Washington. AP reporters David Keyton in Berlin and Elena Becatoros in Athens contributed to this report.

University of Chicago professor James A. Robinson, one of three winners of the 2024 Nobel Prize in Economics, responds to a standing ovation during a news conference celebrating Robinson at university Monday, Oct. 14, 2024, in Chicago. (AP Photo/Charles Rex Arbogast)

Economist Simon Johnson poses for a photograph after jointly winning the Nobel memorial prize in economics, at his home in Washington, Monday, Oct. 14, 2024. (AP Photo/Ben Curtis)

Economist Simon Johnson poses for a photograph after jointly winning the Nobel memorial prize in economics, at his home in Washington, Monday, Oct. 14, 2024. (AP Photo/Ben Curtis)

Economist Simon Johnson poses for a photograph after jointly winning the Nobel memorial prize in economics, at his home in Washington, Monday, Oct. 14, 2024. (AP Photo/Ben Curtis)

Economist Simon Johnson poses for a photograph after jointly winning the Nobel memorial prize in economics, at his home in Washington, Monday, Oct. 14, 2024. (AP Photo/Ben Curtis)

Economist Simon Johnson poses for a photograph with his dog Zoya after winning the Nobel memorial prize in economics with Daron Acemoglu and James A. Robinson, at his home in Washington, Monday, Oct. 14, 2024. (AP Photo/Ben Curtis)

In this combination image left to right; Economist Daron Acemoglu in Athens Greece, Oct. 14, 2024, Economist Simon Johnson in Washington, Oct. 14, 2024, and Economist James A. Robinson in Chicago, Oct. 14, 2024. (AP Photo)

Nobel prize winner in Economics, James A. Robinson, responded to a question during an interview with The Associated Press at his home in the Hyde Park neighborhood of Chicago, Monday, Oct. 14, 2024. (AP Photo/Charles Rex Arbogast)

Nobel prize winner in Economics, James A. Robinson makes a selfie for the Nobel Foundation with his wife, Dr. Maria Angelica Bautista, and their son Adrian at their home in the Hyde Park neighborhood of Chicago, Monday, Oct. 14, 2024. (AP Photo/Charles Rex Arbogast)

Nobel prize winner in Economics, James A. Robinson, kisses his wife, Dr. Maria Angelica Bautista, at his home in the Hyde Park neighborhood of Chicago, Monday, Oct. 14, 2024. (AP Photo/Charles Rex Arbogast)

Nobel prize winner in Economics, James A. Robinson, looks over a selfie he made for the Nobel Foundation with his wife Dr. Maria Angelica Bautista, and son Adrian at their home in the Hyde Park neighborhood of Chicago, Monday, Oct. 14, 2024. (AP Photo/Charles Rex Arbogast)

Nobel prize winner in Economics, James A. Robinson, gives an interview to the Associated Press from his home in the Hyde Park neighborhood of Chicago, Monday, Oct. 14, 2024. (AP Photo/Charles Rex Arbogast)

Nobel prize winner in Economics, James A. Robinson, gives an interview to the Associated Press from his home in the Hyde Park neighborhood of Chicago, Monday, Oct. 14, 2024. (AP Photo/Charles Rex Arbogast)

Nobel prize winner in Economics, James A. Robinson, gives an interview to the Associated Press from his home in the Hyde Park neighborhood of Chicago, Monday, Oct. 14, 2024. (AP Photo/Charles Rex Arbogast)

Nobel prize winner in Economics, James A. Robinson, gives an interview to the Associated Press from his home in the Hyde Park neighborhood of Chicago, Monday, Oct. 14, 2024. (AP Photo/Charles Rex Arbogast)

Economist Daron Acemoglu, 2024 Nobel prize winner in Economics, speaks to the media during a conference in Athens , Greece, Monday, Oct. 14, 2024. (AP Photo/Petros Giannakouris)

Economist Daron Acemoglu, 2024 Nobel prize winner in Economics, stands in an elevator after speaking to the media during a conference in Athens, Greece, Monday, Oct. 14, 2024. (AP Photo/Petros Giannakouris)

Economist Daron Acemoglu, 2024 Nobel prize winner in Economics, speaks to the media during a conference in Athens , Greece, Monday, Oct. 14, 2024. (AP Photo/Petros Giannakouris)

Economist Daron Acemoglu, 2024 Nobel prize winner in Economics, speaks to the media during a conference in Athens , Greece, Monday, Oct. 14, 2024. (AP Photo/Petros Giannakouris)

This image provided by the The University of Chicago shows James A. Robinson, one of three winners of the Nobel memorial prize in economics. (The University of Chicago via AP)

Economist Daron Acemoglu, 2024 Nobel prize winner in Economics, speaks to the media during a conference in Athens , Greece, Monday, Oct. 14, 2024. (AP Photo/Petros Giannakouris)

Journalists listen when Jan Teorell of the Nobel assembly announces the Nobel memorial prize in economics winners during a press meeting at the Royal Swedish Academy of Sciences in Stockholm, Sweden, Monday Oct. 14, 2024. (Christine Olsson/TT News Agency via AP)

Academy of Sciences permanent secretary Hans Ellegren, center, Jakob Svensson, left, and Jan Teorell, of the Nobel assembly announce the Nobel memorial prize in economics winners, Daron Acemoglu, Simon Johnson and James A Robinson during a press meeting at the Royal Swedish Academy of Sciences in Stockholm, Sweden, Monday Oct. 14, 2024. (Christine Olsson/TT News Agency via AP)

Academy of Sciences permanent secretary Hans Ellegren, center, Jakob Svensson, left, and Jan Teorell, of the Nobel assembly announce the Nobel memorial prize in economics winners, Daron Acemoglu, Simon Johnson and James A Robinson during a press meeting at the Royal Swedish Academy of Sciences in Stockholm, Sweden, Monday Oct. 14, 2024. (Christine Olsson/TT News Agency via AP)

FILE - Daron Acemoglu of the Massachusetts Institute of Technology smiles in this image taken on June 22, 2019 in Kiel, Germany, as he and Simon Johnson and James A. Robinson won the Nobel prize in economics for research into reasons why some countries succeed and others fail. (Frank Molter, dpa via AP, File)

The Nobel memorial prize in economics awarded to Daron Acemoglu, Simon Johnson and James A Robinson, seen on screen, during a press meeting at the Royal Swedish Academy of Sciences in Stockholm, Sweden, Monday Oct. 14, 2024. (Christine Olsson/TT News Agency via AP)

Academy of Sciences permanent secretary Hans Ellegren, center, Jakob Svensson, left, and Jan Teorell, of the Nobel assembly announce the Nobel memorial prize in economics winners, Daron Acemoglu, Simon Johnson and James A Robinson, seen on screen, during a press meeting at the Royal Swedish Academy of Sciences in Stockholm, Sweden, Monday Oct. 14, 2024. (Christine Olsson/TT News Agency via AP)

FILE - A close-up view of a Nobel Prize medal at the National Institutes of Health (NIH) in Bethesda, Md., Tuesday, Dec. 8, 2020. (AP Photo/Jacquelyn Martin, File)

The Nobel economics prize is being announced in Sweden

The Nobel economics prize is being announced in Sweden

FILE - A bust of Alfred Nobel on display following a press conference at the Karolinska Institute in Stockholm, Sweden, on Monday, Oct. 3, 2022. (Henrik Montgomery/TT News Agency via AP, File)

TEL AVIV, Israel (AP) — A rocket fired from Yemen hit an area of Tel Aviv overnight, leaving 16 people slightly injured by shattered glass, the Israeli military said Saturday, days after Israeli airstrikes hit Houthi rebels who have been launching missiles in solidarity with Palestinians.

A further 14 people sustained minor injuries as they rushed to shelters when air raid sirens sounded before the projectile hit just before 4 a.m. Saturday, the military said.

The Houthi rebels issued a statement on the Telegram messaging app saying they had aimed a hypersonic ballistic missile at a military target, which they did not identify.

The attack comes less than two days after a series of Israeli airstrikes on Yemen’s Houthi rebel-held capital, Sanaa, and port city of Hodeida killed at least nine people. The Israeli strikes were in response to a Houthi attack in which a long-range missile hit an Israeli school building. The Houthis also claimed a drone strike targeting an unspecified military target in central Israel on Thursday.

The Israeli military says the Iran-backed Houthis have launched more than 200 missiles and drones during the Israel-Hamas war in Gaza. The Houthis have also been attacking shipping in the Red Sea and Gulf of Aden and say they won’t stop until there is a ceasefire in Gaza.

The Israeli strikes Thursday caused “considerable damage” to the Houthi-controlled Red Sea ports “that will lead to the immediate and significant reduction in port capacity,” U.N. spokesman Stephane Dujarric said. The port at Hodeida has been key for food shipments into Yemen in its decade-long civil war.

U.N. Secretary-General Antonio Guterres said both sides’ attacks risk further escalation in the region and undermine U.N. mediation efforts.

In the Gaza Strip on Saturday, mourners held the funerals of 19 people — 12 of them children — killed in Israeli strikes on Friday and overnight.

One of the strikes hit a residential building in the built-up Nuseirat refugee camp in central Gaza, killing at least seven Palestinians, including five children and one woman, and injuring 16 others, health officials said.

In Gaza City, another strike on a house overnight killed 12 people, including seven children and two women, according to Al-Ahli Hospital where the bodies were taken.

Mourners gathered at the hospital in Gaza City Saturday morning. Women comforted each other as they wept over the bodies before they were carried away. One man, stony-faced, cradled a tiny shroud-wrapped body in his arms as he carried it along the funeral procession.

In Al-Aqsa Hospital of Deir al Balah, white body bags containing those killed in Nuseirat were taken from the morgue and loaded onto the back of an open truck to be taken for burial.

Overall, Gaza's Health Ministry said Saturday that 21 people had been killed and 61 were wounded over the past 24 hours.

Israel faces heavy international criticism over the unprecedented levels of civilian casualties in Gaza and questions about whether it has done enough to prevent them.

Israel says it only strikes militants, and blames the Hamas militant group for civilian deaths because its fighters operate in residential areas.

More than 45,200 people have been killed and more than 107,500 wounded in the Gaza Strip since October 2023, when a Hamas attack in Israel killed about 1,200 people and triggered the devastating 14-month war in Gaza. Local health officials do not distinguish between civilians and combatants, but have said more than half of the fatalities are women and children.

The Israeli military organization dealing with humanitarian affairs for Gaza said Saturday it had led a “tactical coordinated operation” delivering thousands of food packages, flour and water to the Beit Hanoun area in the north of the Gaza Strip.

The organization, known by its acronym COGAT, said trucks from the U.N. World Food Program transported 2,000 food packages, 1,680 sacks of flour and thousands of liters of water to distribution centers in the area on Friday.

Aid groups have said previously that military operations and armed gangs have hindered their ability to distribute aid to civilians in need.

Gaza's Health Ministry issued an urgent appeal Saturday for medical and food supplies to be delivered to Kamal Adwan Hospital in Beit Lahia, near Beit Hanoun in northern Gaza, while the hospital director described dire conditions.

The ministry said in a statement that there was continuous gunfire and Israeli shelling near the hospital. “Shells have struck the third floor and the hospital’s entrances, creating a state of panic,” the ministry said.

Hospital Director Dr. Husam Abu Safiyeh said the facility was “facing severe shortages."

“Despite promises, we have not received the necessary supplies to maintain electricity, water, and oxygen systems," Abu Safiyeh said. "Our requests for essential medical supplies and staff have largely gone unmet.”

He said the World Health Organization had delivered 70 units of blood, but that the hospital requires at least 200 units to meet urgent needs. He said 72 wounded people were being treated at the hospital.

The shortages extend beyond medical necessities. “Food is very scarce, and we cannot provide meals for the wounded. We are urgently calling on anyone who can provide supplies to help us,” he said. “The staff is working around the clock, yet we cannot even provide meals for them.”

Shurafa reported from Deir al Balah, Gaza Strip. Associated Press writers Elena Becatoros in Majdal Shams, Golan Heights, contributed to this report.

Follow AP’s war coverage at https://apnews.com/hub/israel-hamas-war

Bodies of victims of an Israeli airstrike at the Nuseirat refugee camp are prepared for the funeral prayer outside the Al-Aqsa Martyrs hospital in Deir al-Balah, Gaza Strip, Saturday, Dec. 21, 2024. (AP Photo/Abdel Kareem Hana)

Men pray over the bodies of victims of an Israeli airstrike at the Nuseirat refugee camp during a funeral prayer outside the Al-Aqsa Martyrs hospital in Deir al-Balah, Gaza Strip, Saturday Dec. 21, 2024. (AP Photo/Abdel Kareem Hana)

Bodies of victims of an Israeli airstrike at the Nuseirat arrive at the Al-Aqsa Martyrs hospital before their funeral in Deir al-Balah, Gaza Strip, Saturday, Dec. 21, 2024. (AP Photo/Abdel Kareem Hana)

An Israeli soldier observes the site where the missile launched from Yemen landed Jaffa district, in Tel Aviv, Israel, Saturday, Dec. 21, 2024. (AP Photo/Tomer Appelbaum)