In my latest column for The Hindu, I analyse the work of this year’s Economics Nobel laureates, Daron Acemoğlu, Simon Johnson, and James Robinson (AJR), whose research on institutions as drivers of economic growth has set a new analytical standard. However, while AJR’s model is compelling, it exhibits a distinctly Eurocentric lens, often positioning Western institutional forms as universally optimal. Scholars like Yuen Yuen Ang challenge this, highlighting cases such as China, where economic growth has been achieved through "directed improvisation"—an iterative, context-driven approach. Ang’s critique suggests that institutional adaptability and endogenous evolution may be as crucial as AJR’s "inclusive institutions" for sustained growth. AJR’s Nobel is well-deserved, but their Eurocentric framework falls short of representing the Global South.
Aditya Sinha’s Post
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But a key take away from AJR is what are we doing about our own institutions and what are the lessons we can get on with. Are we strengthening the good and developing more good whilst dismantling the bad including any remaining colonial institutions that are bad. The China model is great, but possibly only for China. Is China's model a zero-sum game for the rest of us and what practical political adaptations are we bringing from China. We of course remain optimistic about India and Professor Karthik Muralidharan gives us reason to hope. AJR's work is a small part of any toolbox to tackle the challenges of corruption, bringing about true universal franchise and contend with powerful entrenched vested interests that smother us. Rather than a model falling short, AJR's is a model that shines a bright light on some fundamentals and we should have that torch in our toolbox.