The 2024 Nobel Prize in Economic Sciences was awarded to Daron Acemoglu, Simon Johnson, and James A. Robinson for their groundbreaking research on how institutional structures affect economic well-being. Their work highlights the crucial role that institutions such as laws, regulations, and organizations play in shaping economic outcomes. They argue that inclusive institutions lead to growth and prosperity, while extractive institutions result in poverty and stagnation.

A key part of their research is historical analysis, showing how different institutional structures have shaped countries’ economic trajectories. In their influential book Why Nations Fail, they offer extensive explanations showing that the quality of institutions is the main reason why some countries succeed while others struggle. Their empirical studies clearly demonstrate a strong connection between the quality of institutions and economic performance, underlining the importance of governance in achieving development.

The findings of these scholars offer valuable lessons for countries like Afghanistan. First, strengthening inclusive political and economic institutions can promote broader participation and reduce corruption both essential for successful economic development. Considering Afghanistan’s historical and cultural background, working toward institutional reforms could pave the way for more effective governance.

The work of Acemoglu, Johnson, and Robinson holds great relevance for Afghanistan. Their emphasis on building inclusive institutions aligns with Afghanistan's need to develop a governance framework that promotes transparency and accountability. By dismantling extractive institutions those that concentrate power and wealth in the hands of a few - Afghanistan can create an environment where economic opportunities are accessible to all, leading to greater social cohesion and long-term stability.

Their research also stresses the importance of investing in human capital and strengthening local capacities, which are vital for encouraging innovation and economic resilience. Afghanistan must prioritize solving its economic problems by eliminating extractive structures that fuel inequality and stagnation. Implementing policies that promote the fair distribution of resources can lay the groundwork for economic growth and national stability.

Investment in human capital especially through improving education and skill development is essential to boost productivity and innovation. Ultimately, a long-term commitment to institutional reforms that strengthen economic governance is critical to building a stable environment and achieving sustainable economic development in Afghanistan.