Question 23M.1.HL.TZ2.b
| Date | May 2023 | Marks available | [Maximum mark: 15] | Reference code | 23M.1.HL.TZ2.b |
| Level | HL | Paper | 1 | Time zone | TZ2 |
| Command term | Evaluate | Question number | b | Adapted from | N/A |
Using real-world examples, evaluate the view that market-based policies may be ineffective in promoting the economic development of the world’s poorest countries.
[15]
Refer to Paper 1 markbands for May 2022 forward, available under the "My tests" tab > supplemental materials.
Answers may include:
- Terminology: market-based policy, economic development.
- Explanation: of the view in terms of what market-based policies are, eg trade liberalization, privatization and deregulation and why such policies might be ineffective; eg limited benefits for export growth and diversification, the creation of a variety of market failures, limited effects on economic growth, the creation of winners and losers, increasing income inequalities and poverty, problems of foreign ownership of privatized utilities, the benefits of interventionist policies.
- Diagram: use of a PPC diagram and/or an AD/AS diagram.
- Synthesis (evaluate): a challenge to the view in terms of such benefits of market-based policies as greater competition and consumer choice, greater efficiency and productivity, an increase in the productive potential of economies, greater economic growth and thus development and an improvement in the allocation of resources. Examples: real-world examples of countries which have adopted market- based policies and the effects of these policies on economic development.
N.B. It should be noted that definitions, theory, and examples that have already been given in part (a), and then referred to in part (b), should be rewarded.
Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.
Assessment Criteria
Part (b) 15 marks
It was acknowledged that it was difficult for candidates to provide examples of low-income countries in the context of the question, although some effectively did so, so examiners were also looking for evidence that candidates could appreciate how low-income communities would perhaps not always benefit from the introduction of market-based policies and apply examples to fit that context. Many candidates sought to frame the question in terms of the relative merits of applying market-based policies to low-income groups in terms of development versus alternative interventionist policies which might better target development.
