'TRUMP IS A RESPONSE TO INSTITUTIONAL FAILURE'

James A. Robinson, co-winner of the Economics Nobel 2024, says economic institutions have failed to adjust to globalization

- Ravi Krishnan

US President Donald Trump is a response to institutional failure; he is not the source of institutions weakening, says James A. Robinson, co-winner of the Economics Nobel 2024. Known for his pioneering research on how institutions are formed and how they determine prosperity, Robinson is in India for the Nobel Prize Dialogue 2025, a series of talks that brings together Nobel laureates, policy makers and thought leaders to discuss global issues, in partnership with Tata Trusts.

The laureate described the current global situation as a “crisis of the liberal model of growth” and said we need to reimagine more inclusive models of development. He also believes that the next inequality shock is coming-artificial intelligence will make it worse.

Mint caught up with him for a conversation on current economic affairs, the rise of China and India, and the next big economic puzzle. Edited excerpts from an interview:

What are the lessons from Trump undermining institutions in the past few months? Are institutions as deep rooted as they are made up to be, even in mature Western democracies?