Daron Acemoglu, Simon Johnson, and James A. Robinson have been awarded the 2024 Nobel Prize in Economics for their research on the impact of institutions on national prosperity and inequality. Their studies, particularly highlighted in their book 'Why Nations Fail', demonstrate that inclusive institutions foster long-term economic growth, while extractive institutions lead to poverty and stagnation. The economists emphasize how historical factors, especially colonialism, shaped the institutional frameworks of nations, influencing their economic trajectories. Their work sheds light on the reasons behind the diverse economic outcomes observed in former colonies, asserting that regions with inclusive governance tend to prosper. The Nobel committee praised their contributions for clarifying the deep-rooted factors affecting wealth disparities across nations. Acemoglu noted that while democracy is beneficial, its introduction can be complex in polarized societies.