Why some nations are rich while others are poor (current foreign direct investments challenges)

In 2024 the Nobel prize was awarded to three American economists associated with New Institutional Economics (NIE): D.Acemoglu, S.Johnson and J. A. Robinson. At the same time, contrary to their predictions, the role of countries such as China, India, and Russia in the world economy is increasing as the world is moving towards multipolarity. The article contains critical analysis of theoretical approaches used by the new Nobel prize-winners and of some of their anti-Russian comments, in particular, on relations between Russia and Ukraine. According to D.Acemoglu, S.Johnson and J. A. Robinson, China, India, and Russia are in an «institutional trap» due to inefficient institutions. In fact in 2017-2024 their economy manifested relatively good performances as it was confirmed in 2024 by the International Comparison Programme (ICP) сarried out by the World Bank. Also, the article examines current trends and pressing problems of Foreign Direct Investments (FDI). However, the author concludes that although FDI flows in the world are positively affected by the decrease of central banks interest rates in many countries, growing uncertainty about the future of the world economy and international trade is creating many new risks for global value chains and FDI. In addition, UNCTAD in April 2025 pointed out that new customs tariffs introduced by US President D.Trump are pushing the world economy towards a recession. Under these conditions the author suggests to recall some ideas about the role of the state on both national and international levels by the Nobel prize-winner in 1974 G.Myrdal (associated with Old Institutional Economics). The article provides certain recommendations for the Russian economic policy.

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