‹ All questionsPaper 3 Global · 2023 · 30 marks
Evaluate the view that economic globalisation has significantly reduced poverty.
Globalisation
Mark scheme: agreement
AO1: Economic globalisation includes the creation and operation of bodies such as the IMF, WTO and W Bank.
AO2: The significance of this is that these bodies are committed to ensuring economic stability and growth for all states through loans advice and other support such as resolving trade disputes
AO3: . Consequently, the actions of the International Financial Institutions appear to have increased trade since the 1940s with a corresponding growth in wealth which has impacted everywhere in reducing poverty
AO1: Economic globalisation has been primarily based on a Western economic model of free trade and liberalisation .
AO2: The period of free trade and liberalisation has helped to reduce barriers to trade and growth and has taken place alongside a period of huge increase in measurements such as output per capita for most countries
AO3: This suggests that economic globalisation has provided the opportunities for universal global growth which inevitably will have reduced poverty
AO1: Economic globalisation has created a greater depth of complex interconnectedness between states.
AO2: This is important because economic growth has bound states and people more closely together which ensures that growth in one state has benefits for other states with a trickle down of wealth and prosperity
AO3: We may conclude that all states will benefit from economic globalisation and although some states will benefit more than others, poverty will be reduced everywhere
AO1: Economic globalisation has included the emergence and exponential growth of TNCs.
AO2: TNCs have brought unprecedented levels of investment, infrastructure development, employment and economic growth throughout the world, including in some of the most impoverished states
AO3: We may conclude that their global influence, provision of skills, training and employment have provided the conditions for a significant reduction in poverty
Mark scheme: disagreement
AO1: Western powers tend to dominate the decision making and underlying philosophy of the IMF, WTO and W.
AO2: Bank which are considered the main agents of economic globalisation. This means that the economic benefits of economic globalisation have been unevenly distributed and there are suggestions that the actions of the IMF, W.Bank and WTO have created a wider gap between developed and developing states and have actually restricted growth in some of the less developed states
AO3: We may conclude that this is important because a restriction of growth in less developed states will certainly not have helped to significantly reduce poverty
AO1: The largest TNCs tend to be Western dominated.
AO2: This is important because Western TNCs are committed to creating profit which is often repatriated and have been accused of exploiting workers and even preventing development
AO3: . This is important because TNCs focussed on maximising profit, often paying workers low wages, are unlikely to significantly reduce poverty
AO1: Despite economic globalisation, poverty indicators seem to suggest a continued North South divide with a concentration of poverty in sub- Saharan Africa.
AO2: This is important because it suggests that certain areas such as Sub Saharan Africa still have desperate poverty and that economic globalisation has left some marginalised groups within states
AO3: We may conclude that economic globalisation has not been beneficial in bringing prosperity and an escape from poverty to all when large numbers have been left behind
AO1: Economic globalisation has been linked to the Wallerstein World- systems theory whereby the entire world becomes one single capitalist economy with an entrenched core, semi-periphery and periphery.
AO2: This is important because the World-systems theory implies that the periphery will remain exploited for raw materials and cheap labour
AO3: Therefore the World-systems theory and economic globalisation will ensure that global south will never be able to prosper and reduce poverty or, through conflict, to challenge the dominance of certain states
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