Economists Daron Acemoglu, Simon Johnson, and James Robinson have been awarded the Nobel Memorial Prize in Economic Sciences for their groundbreaking research into the influence of institutions on national prosperity. The laureates, based at MIT and the University of Chicago, delved into historical data, especially focusing on the colonial era, to uncover how the development of "inclusive" versus "extractive" institutions contributed to gaps in prosperity among nations. These inclusive institutions, which typically emerged in nations safeguarding personal property rights and encouraging broad economic participation during the colonial period, lead to enhanced long-term wealth and prosperity. In contrast, extractive institutions, favoring elite control and offering minimal economic benefits to the general populace, resulted in only short-term gains. The Nobel committee praised the trio's analytical approach, harnessing data and theory, as vital to understanding and addressing income disparities worldwide. Their work provides a comprehensive lens on why some nations thrive while others lag, spotlighting institutional legacy as a pivotal element in national economic trajectories.