Inclusive institutions and the need for institutional reforms: Lessons from the 2024 Nobel laureates in economics

Document Type : Short Paper

Author

Department of Economics, Faculty of Humanities, Ayatollah Boroujerdi University, Boroujerd, Iran. Laboratory of Applied Economics, University of Bari Aldo Moro, Bari, Italy.

Abstract

In 2024, Daron Acemoglu, Simon Johnson, and James Robinson were awarded the Nobel Prize in economics for their research on the role of institutions in economic development. Their studies highlight that inclusive institutions, which promote broad participation in both the economy and politics, are essential foundations for development. In contrast, extractive institutions that serve the interests of specific groups hinder economic and social progress. Iran’s current state, characterized by inefficient, extractive institutions that protect minority interests, disrupts the country's development process. Drawing from the Nobel laureates' findings, it is clear that institutional reforms to enhance transparency, eliminate rent-seeking, and increase public participation are essential for setting the country on a path to development. In Iran, key obstacles to development include policies that favor specific groups over the general population, limited political participation, and the lack of an accountable party system. These economists stress the importance of reforming political and economic institutions to enable inclusive, participatory governance that can foster economic growth.

Keywords

Main Subjects

حوزة موضوعی: ایران

Scope: Iran

References

Acemoglu D, Johnson S, Robinson JA. (2001). “The colonial origins of comparative development: An empirical investigation”. American Economic Review. 91(5): 1369-1401.‏
Bergantino AS, Intini M, Nademi, Y. (2024). “Rethinking poverty: An econometric analysis of the role of ICT poverty in a global context”. Telecommunications Policy. 102876.‏
Hodgson GM. (2006). “What are institutions?”. Journal of Economic Issues. 40(1): 1-25.‏
North DC. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.‏
Robinson JA, Acemoglu D. (2012). Why Nations Fail: The Origins of Power, Prosperity and Poverty. London: Profile‏.
Journal of Countries Studies
Volume 3, Issue 1
2025
Pages 129-140

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History

  • Receive Date: 23 October 2024
  • Revise Date: 01 November 2024
  • Accept Date: 03 November 2024

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