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.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

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.

The Future Forbes Realty Global Properties

Cyprus Considers Extending Basic Payment Account Rules To Small Businesses

by THEFUTURE.TEAM

March 13, 2026

Legislative Proposals Set For Review

Cypriot lawmakers are preparing to examine proposals that would extend the framework of basic payment accounts to very small businesses. The initiative is expected to be brought before the parliamentary plenary in the coming period. However, the proposals have drawn strong opposition from several institutions, including the finance ministry, the Central Bank of Cyprus (CBC) and commercial banks. The discussion in the House Commerce Committee follows nearly three years of review and consultations.

In-Depth Overview Of The Proposals

The first legislative proposal seeks to redefine the term “consumer” so that very small businesses would fall within the scope of basic payment account regulations. It also aims to improve transparency and comparability of bank charges linked to these accounts.

The second proposal would prevent banks from rejecting an application for a basic payment account simply because the applicant already holds an account with another credit institution. Supporters argue that this change would ensure broader and more equal access to essential banking services.

Historical Context And Regulatory Debates

During the committee session, MP Costas explained that the proposal to expand the definition of “consumer” dates back to amendments discussed in 2020 following the adoption of a relevant European directive. At the time, the proposal was postponed due to concerns that Cyprus could face legal complications at the European level if the directive was not fully transposed into national law. According to Costas and fellow MPs Giannakis Gavriel and Andreas Pasiourtidis, the issue has not been incorporated into a government bill.

Mixed Reactions From Key Stakeholders

Several public authorities have raised concerns about the proposed changes. Avgi Chrysostomou-Lapathiotis, representing the finance ministry, argued that the new provisions could impose additional obligations on banks that are already regulated under EU harmonisation legislation. The consumer protection service also noted that a broader legislative review of the framework remains pending.

A representative of the Central Bank of Cyprus, Artemis Nicolaou, questioned whether the changes are necessary. According to the CBC, the current volume of complaints does not justify expanding supervisory responsibilities without prior consultation with the European Central Bank.

Industry Concerns Over Business Risk Management

The banking sector has also expressed reservations about the proposals. Michalis Kronides, Senior Director of the Cyprus Banks Association, warned that the changes could limit banks’ ability to assess and manage client risk. He argued that financial institutions could be required to serve higher-risk businesses, including companies operating in sectors such as cryptocurrency.

Under the current framework, basic payment accounts are intended to cover routine banking services such as deposits, withdrawals, direct debits, card payments, online transactions and credit transfers. The proposed reforms, therefore, raise broader questions about how to balance financial access with risk management in the banking system.

Breaking news