The Nobel Prize in Economics goes to prosperity researchers

by THEFUTURE.TEAM

October 14, 2024

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.

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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.

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European And North American Cities Dominate Oxford Economics’ 2026 Index

by THEFUTURE.TEAM

September 17, 2026

European and North American cities dominate Oxford Economics’ 2026 Global Cities Index, taking 78 of the top 100 positions. Europe accounts for 44 cities, while the U.S. has 30 and Canada has four.

The index assesses the world’s largest cities across economics, human capital, quality of life, environmental conditions and governance.

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London, Paris And New York Lead Major Cities

London ranks second globally, followed by Paris in third, Dublin in sixth and Zurich in 10th. Five U.S. cities, New York, Seattle, San Francisco, Boston and San Jose, also place in the global top 10.

U.S. cities generally score strongly on economics and human capital, while European cities perform better in quality of life, environmental conditions and governance, according to Liam Sides, director of City Services at Oxford Economics.

London stands out among European cities with the index’s highest human-capital score, although its quality-of-life score of 77 is its weakest category.

Housing Costs Remain A Common Challenge

High housing costs weigh on quality-of-life scores in London, Dublin and New York. More affordable cities such as Toulouse can attract workers from larger, more expensive urban centers.

Dublin climbed seven places to sixth, while Warsaw recorded Europe’s biggest rise, jumping 109 places to 61st. Istanbul rose 42 places to 64th, while Madrid and Budapest gained 14 places each.

Not all major cities improved. Rome fell eight places to 119th, while Lisbon dropped 44 places to 148th.

Five European Cities To Watch

Oxford Economics highlighted Warsaw, Tallinn, Eindhoven, Manchester and Toulouse as European cities to watch.

Warsaw’s economy is forecast to grow by about 3% annually over the next five years, nearly twice the European-city average. Tallinn is expected to record the strongest GDP growth among major EU cities over the next decade, supported by technology and professional services.

Eindhoven remains a major research and advanced-manufacturing center, with more than 5,000 high-tech and knowledge-based companies in its Brainport cluster. Manchester has recorded the strongest GDP and productivity growth among UK cities since 2010, while Toulouse continues to benefit from its aerospace industry and relatively lower living costs.

AI Is Reshaping Urban Growth

AI is increasingly influencing the economic prospects of cities with strong technology and advanced-manufacturing industries. London benefits from its universities and digital economy, while Eindhoven combines AI with advanced manufacturing and Tallinn has relatively high AI adoption among Central and Eastern European peers.

Outside Europe and North America, Taipei climbed 12 places to 48th, Kuala Lumpur rose 14 places to 65th and Shenzhen entered the top 100 at 93rd. Oxford Economics also expects cities such as Shenzhen and Bengaluru to benefit from AI and other emerging technologies if innovation translates into productivity gains.

Asia Gains Ground

Europe and North America continue to dominate the index, but Asian cities are becoming increasingly important drivers of urban economic growth.

By 2050, Chinese and Indian cities are forecast to account for a larger share of global-city GDP than Europe. Shanghai’s economy is expected to overtake San Francisco’s next year, while Ho Chi Minh City is projected to approach Berlin’s economic size by 2050.

The 2026 index therefore shows continued strength among established European and North American cities alongside faster growth in several Asian urban centers.

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