New Nayarit, (EFE) .- Economist James Robinson, winner of the Nobel Prize in Economics 2024, highlighted the relevance of having inclusive and solid institutions for economic development, and that foster competition and a dynamic private sector.
During his participation in the 88th Banking Convention, the professor of the University of Chicago stressed that inclusive institutions are essential to promote innovation, attract investment and generate prosperity in the nations.
During his presentation, the author of the book ‘Why Nations Fail’ (why countries fail) recalled his experience in Nogales, a city divided by the border between Arizona, in the United States, and Sonora, in northern Mexico, as an example of how institutions can make deep differences in the well -being of neighboring populations.
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In this regard, he stressed that, although there is no big geographical or cultural difference between Nogales (United States) and Nogales (Mexico) and both demarcations speak Spanish, they share music, food and traditions; Economic conditions and living standards are radically different.
The economist pointed out that these differences are not due to geographical or cultural factors, but to the institutions that govern each side of the border.
In this sense, Robinson said that institutions in the United States generate incentives to innovate, protect property rights and promote competition; While institutions in Mexico, historically, have been less inclusive and more extractive, limiting economic development.
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The Nobel Prize in Economics highlighted advances in Mexico such as the increase in citizen confidence in government, but warned that structural problems such as labor informality, low productivity and lack of financial inclusion still persist.
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Robinson emphasized that for Mexico to achieve sustained growth, it is essential to create an institutional environment that guarantees respect for property rights, reduces corruption and promotes competition.
Finally, he considered that economic development cannot be given without a dynamic private sector and a rowing rule of law.
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