The Royal Swedish Academy of Sciences has awarded the 2024 Sveriges Riksbank Prize in Economics to Daron Acemoglu, Simon Johnson and James Robinson. They received the prize for highlighting the crucial role of social institutions in a country’s prosperity. Their work helps explain why societies with weak rule of law struggle to achieve growth or positive change. When institutions exploit the population, it undermines progress and well-being.

In this context, in this blog post, we would like to mention the article “From Education to Democracy” by Acemoglu, Johnson, Robinson and Yared.

The paper “From Education to Democracy”* by Acemoglu, Johnson, Robinson and Yared examines how important education is for establishing democratic institutions and promoting sustained economic growth. According to the researchers, education has a significant role in bringing about political and social change in addition to enhancing personal abilities and income levels. They investigate the connection between the growth of democratic institutions and the development of educational systems in several nations and eras of history.

According to the researchers, education supports democracy in a number of ways:

• Knowledgeable Public: People with higher levels of education are more likely to be aware of complicated political issues and to call for more responsive, responsible government.
• Political Participation: Those with greater levels of education are more likely to vote and take part in political activities, which raises the possibility of active political participation.
• Inequality Reduction: Education can lessen social inequality by producing more knowledgeable and involved citizens, which can then result in more inclusive and stable political institutions.
• Strengthening Institutions: According to the authors, education aids in the development of institutions that support the rule of law, lessen corruption, and enhance the standard of governance – all of which are necessary for the consolidation of democracy.

In addition, the article talks about how historical instances – like how education evolved in Europe and other regions of the world in the 19th century – illustrate how educational investments might trigger democratic transitions. But it is also stated that there is no guarantee that democracy and education will coexist. It depends on how educational systems are set up and whether or if the general public, not just a chosen few, is intended to be empowered by them.

In summary, this research highlights the significant influence that education has on the advancement of society, concerning both the financial results and the efficiency of democratic institutions.

* Daron Acemoglu, Simon Johnson, James A. Robinson, Pierre Yared, (2005), The American Economic Review, Vol. 95, No. 2, Papers and Proceedings of the One Hundred Seventeenth Annual Meeting of the American Economic Association, Philadelphia, PA, January 7-9, 2005 (May, 2005), pp. 44-49