Explain how political and social factors can act as barriers to economic growth and economic development.

Using real-world examples, discuss the significance of economic barriers for a country’s economic growth and economic development.

Marks should be allocated according to the paper 1 markbands for May 2022 forward, part A.

Answers may include:

• Terminology: political and social barriers, economic growth, economic development
• Explanation: of any possible political/social barriers, which may inhibit growth and development, such as gender inequality, lack of governance, corruption, unequal political power and status, weak institutional framework involving the legal system, ineffective taxation structures, the banking system and property rights
• Diagram: use of an AD/AS diagram to illustrate economic growth, or a PPC or poverty cycle diagram.

A maximum of [6] should be awarded if only economic growth or economic development in the question item is addressed.

Marks should be allocated according to the paper 1 markbands for May 2022 forward, part B.

Answers may include:

• Terminology: economic barriers, economic growth, economic development
• Explanation: of how economic barriers such as increasing economic inequality, lack of access to infrastructure and appropriate technology, low levels of human capital, overdependence on primary sector, lack of access to international markets, informal economy, capital flight, indebtedness, geography, e.g. being landlocked and climate/disease may constrain growth and development
• Diagram: use of any relevant diagram such as PPC, poverty cycle, AD/AS
• Synthesis (discuss): the degree to which the various economic barriers act as a barrier to growth and development; the relative importance of economic barriers as compared to political/social barriers; overall assessment
• Examples: real-world examples of countries that have experienced economic barriers to growth and development.

Examiners should be flexible in the interpretation of the difference between economic and political/social barriers.

Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.

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.

A maximum of [9] should be awarded if only economic growth or economic development in the question item is addressed.

Relative to the other questions on the paper, this question was the most challenging for students. The aim of the question was for responses to consider issues such as gender inequality, corruption, unequal political power and status, a weak institutional framework through the legal system, and ineffective taxation structures. Many answers, however, drifted into general barriers to economic growth and development. Students also found it difficult to answer the question using economic theory, such as the PPC model and the poverty cycle.

Candidates found the emphasis on economic barriers more straightforward to deal with compared to political and social factors in part (a). Strong answers focused on economic barriers, such as low levels of human capital, overdependence on the primary sector, and protectionism in international markets. The best answers took a factor such as trade barriers and explained how this might reduce economic growth and development. Again, it was important for answers to use a real-world example to support their answer and most students did this. The best answers evaluated the significance of different economic barriers by, for example, discussing the advantages and disadvantages of having an over-reliance on the primary sector.