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The Nobel Prize in Economics goes to prosperity researchers

Darren Acemoglu, Simon Johnson and James A. Robinson received this year’s Nobel Prize in Economic Sciences for their contributions to proving the importance of public institutions to a country’s prosperity.

KEY FACTS

  • The prestigious prize, officially known as the Sveriges Riksbank Prize for Economic Sciences in Memory of Alfred Nobel, is the last prize awarded this year and is worth SEK 11 million ($1.1 million).
  • This year’s laureates showed that one of the explanations for differences in countries’ prosperity is the social institutions introduced during European colonization. Inclusive institutions were often introduced in countries that were poor at the time of colonization, which over time led to general prosperity for the population. This is an important reason why former colonies that were once rich are now poor and vice versa.
  • Introducing inclusive institutions would create long-term benefits for everyone, but extractive institutions provide short-term gains for those in power. As long as the political system ensures they retain their control, no one will trust their promises of future economic reforms. According to the laureates, this is the reason why there is no improvement.
  • “Reducing the huge income gaps between countries is one of the greatest challenges of our time. The laureates have demonstrated the importance of public institutions in achieving this,” said Jakob Svensson, Chairman of the Economic Sciences Prize Committee.
  • “Societies with poor rule of law and institutions that exploit the population do not generate growth or change for the better,” the prize’s organizers add on their website.

TANGENT

Darren Acemoglu and Simon Johnson work at MIT, while James Robinson is at the University of Chicago.

Acemoglu and Johnson recently collaborated on a book researching technology through the ages that demonstrates how some technological advances are better at creating jobs and spreading wealth than others.

KEY STORY

The Economics Prize is not one of the original science, literature and peace prizes created by the will of dynamite inventor and businessman Alfred Nobel and first awarded in 1901, but is a later additional prize established and funded by the Central Bank of Sweden in 1968.

Past recipients of the award include a number of influential thinkers such as Milton Friedman, and John Nash – played by actor Russell Crowe in the 2001 film A Beautiful Mind, and former US Federal Reserve Chairman Ben Bernanke.

Last year, Harvard economic historian Claudia Goldin won a prize for her work highlighting the causes of pay and labor market inequality between men and women.

Crypto.com Leverages AI Revolution With Strategic Workforce Restructuring

AI Adoption Drives Strategic Restructuring

Crypto.com reduced its workforce by 12% as part of a shift to integrate artificial intelligence across its operations. CEO Kris Marszalek said in a post on X that companies not adopting AI risk falling behind. The company removed roles that do not align with its AI-focused operating model as part of the restructuring.

Preparing For Continued Success

Reorganization aims to adjust operations to new technology requirements. The company said a smaller team supported by AI tools is expected to improve efficiency and support product development. A spokesperson confirmed affected employees have been notified.

Industry-Wide Implications

The move reflects broader trends across the technology sector, where companies are restructuring operations in response to AI adoption. Block recently announced layoffs affecting a significant share of its workforce, with CEO Jack Dorsey citing increased use of automation tools. Companies, including Meta and Atlassian, have also reduced headcount while reallocating resources toward AI and enterprise products.

High-Value Investments In AI

Crypto.com has also invested in AI-related assets. Earlier this year, Marszalek acquired the domain AI.com for $70 million, reflecting a focus on AI-related branding and positioning.

A New Paradigm For The Tech Sector

AI adoption is driving changes in how technology companies structure operations. Workforce reductions across the sector, including Meta’s anticipated 20% cut and Atlassian’s 10% reduction, reflect a shift toward efficiency and increased use of automation.

Crypto.com’s restructuring and recent investments illustrate how financial technology companies are adapting to AI integration. Changes across the sector indicate a move toward leaner operating models and greater reliance on AI-driven processes.

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