An economics Nobel for insights into national success and failure
Why are some countries wealthy while others struggle? This fundamental question in economics reveals that a person’s living standards often hinge more on their birthplace than on individual talent or effort.
Traditional economic growth models emphasized the accumulation of production factors — labor, capital, and technology. The theory posited that higher capital per worker led to greater national wealth.
However, this didn’t fully explain disparities among nations. This year’s Nobel prize winners in economics contend that government quality is key to understanding these differences.
