Compiler
Pranoti Bagde , Educator

The Nobel Prize in Economics: a wake-up call on exploitative institutions and unsustainable growth

Nobel Prize of the year 2024 in Economics recognized groundbreaking research that sheds light on a critical issue often overlooked in development discussions: societies with weak rule of law and exploitative institutions fail to achieve sustainable growth. There are takeaways from this research that must give modern workplaces, schools, hospitals, and corporate locations pause—all salient examples of institutions where employees complain about being treated unfairly. The prize-winning research does not merely point out that this is a systemic problem. It dares us to reimagine how institutions treat their workers because one cannot have both long-term growth and human exploitation.

Think of a corporate world where working for more than eight hours is seen as a badge of honor. This fainted form of overwork is not only bad for your health, it’s a scam. It rationalizes those acts of exploitation as efficient or effective, but over the longer term, it is bad for all concerned.

Tired employees are more likely to make mistakes and be less productive. Even teachers, who mold our future generations, are mistreated in toxic work environments. Too many school teachers face scolding, not because of their teaching performance, but as a means for authorities to exert control and retain authority and because of school politics. This abuse of power erodes morale and creates a culture of fear rather than fostering a supportive, healthy educational environment.

A Grim Example: The Tragedy in Kolkata

The horrific rape and murder of a resident doctor in Kolkata are a stark reminder of how deeply exploitation runs in sectors like healthcare. Doctors and medical staff are regularly forced to work under extreme pressure, with little support or protection. The young doctor in Kolkata was a victim of an overburdened system that failed to ensure her safety, leaving her vulnerable in a hostile environment. Her case is just one tragic example of the larger issue—institutions failing to protect their workers from both physical and psychological harm.

The Nobel-winning research underscores a harsh reality: societies built on exploitation and inequity cannot sustain long-term growth. Short-term profits gained at the expense of workers only set institutions up for long-term stagnation. Exploitation leads to burnout, poor morale, and the erosion of trust between workers and leadership.

Institutions that rise through exploitation may experience temporary success, but it’s built on shifting sands. When control is prioritized over care and when workers are treated as disposable, these organizations eventually falter. As inequality grows, social unrest becomes inevitable, leading to the disintegration of not only the institution but society as a whole.

The lessons from  Nobel Prize of 2024 are clear: if we want growth that is sustainable, we must institute reforms. How we treat workers—whether in schools, hospitals, or corporate offices—needs a complete rethink. Exploitation in any form, be it excessive working hours, humiliating treatment, or unsafe working conditions, must come to an end.

Nobel Prize of 2024 in Economics teaches us an essential truth: exploitation does not generate sustainable growth. Societies must confront the injustices happening in workplaces across various sectors. If we want a future where economic and social progress is possible, human dignity must be at the heart of our institutions.