IBDP Economics SL – The global economy- Economic growth strategy Paper 1- Exam Style Practice Questions
Economic growth strategy Paper 1
Exam Style Questions..
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IBDP Economic SL- All Topics
Exam Style Question for The global economy-Economic growth strategy Paper 1
Question
Using real-world examples, evaluate the effectiveness of foreign aid in promoting economic development.
▶️Answer/Explanation
Answers may include:
- Terminology: foreign aid, economic development.
- Explanation: of the possible advantages of foreign aid in terms of breaking the poverty trap, bridging the foreign exchange gap, the impact of increased investment on growth, the linkages between aid, poverty reduction and economic development.
- Diagram: use of any relevant diagram such as PPC, poverty cycle, AD/AS.
- Synthesis (evaluate): in terms of the reasons why foreign aid may not be effective in promoting development, such as corruption and aid not reaching the intended beneficiaries, the encouragement of dependency, tied aid designed to further the political ends of donor countries.
- Examples: real-world examples of countries which have been recipients of aid and the effectiveness or otherwise of that aid in promoting development.