Could someone who has previously undertaken HSC Economics (preferably with a band 6 result) please mark my hsc economics essay.
*Thank you in advance
I have attached the essay below:
'Evaluate the contributions of international organisations and trade agreements to global economic growth and development.'
International organisations and trade agreements have immensely contributed to global economic growth and development. This is articulated through the immense contribution of international organisations, specifically the IMF, World Bank, and the G7/8. The critical commitment of trade agreements to global economic growth and development is evident through CPTPP and USMCA.
The International Monetary Fund’s (IMF) critical contribution to global economic growth and development resides in providing financial assistance to developing economies. The IMF seeks to foster global monetary cooperation, expand international trade, and provide resources to members experiencing BOP difficulties. This is undertaken through the IMF supporting economic policies promoting financial stability and monetary co-operation. These aims increase global economic growth by preventing negative GDP growth in economies experiencing financial crisis, providing financial payouts that ensure economies can address economic issues while stabilizing GDP and HDI. This was evident during Covid-19, with the IMF in 2020 doubling loan levels from emergency facilities, providing US$100 billion in financing to low-income countries struggling with negative economic growth. This highlights the IMF’s immense contribution to global economic growth by ensuring that developing economies, in receiving financial assistance, could experience an increase in income growth, producing a higher GDP amidst the economic issues arising from the Pandemic, notably higher unemployment. However, the IMF has been criticized for its handling of financial crisis. Critics allude to the IMF’s response to the Asian Crisis in the 1990s, in which the IMF was criticized for encouraging contractionary economic policies which worsened growth and unemployment in Asia. This was evident through Thailand experiencing -10% economic growth in 1998, highlighting the IMF’s potential ineffectiveness towards achieving global economic development by encouraging economic policies that worsen living standards.
The World Bank’s (WB) critical contribution to global economic growth and development is highlighted through its financial assistance to developing economies to deliver economic growth and development. The WB aims to increase global economic growth and development by providing foreign aid and loans, reducing the debt levels of poorer nations, alongside supporting long-term investment projects that encourage economic development. These aims seek to increase global economic growth by increasing the GDP of developing economies through foreign assistance, while increasing global economic development through a reduction in debt levels alongside supporting policies securing economic development that lead to an improvement in living standards within developing economies. This was evident through the WB’s reduction of the proportion of people living on less than $1 per day from 29% to 14.5%, improving global economic development by increasing the GNI per capita of developing economies by increasing wages of poverty-stricken economies. Moreover, the WB’s 2017 ‘Heavily Indebted Poor Countries Initiative’ (HIPCI) provided debt relief to 36 countries, saving more than US$76 billion, increasing global economic growth as the reduction in debt levels generates higher financial stability, displaying the WB’s immense contribution to global economic growth and development through initiatives seeking to improve living standards and the GDP of developing economies.
The G7/8’s immense contribution to global economic growth and development is evident through its addressing og global economic issues. The G7/8 is an economic forum of initially the eight largest advanced economies, with discussions on addressing international economic and monetary issues. The G7/8 seeks to increase global economic growth by outlining economic policies that member states will adopt to deliver higher GDP and HDI among advanced economies. This was evident through the G7/8’s response towards the GFC in 2008 through establishing macroeconomic policies, including tax cuts and financial stimulus’, to increase consumption among member states, while pledging $1 trillion in loans and guarantees for the IMF to address economic difficulties in developing economies. This displays the G7/8’s immense contribution to global economic growth and development by seeking to improve economic growth among member states, while ensuring the achievement of higher living standards in developing economies. However, the G7/8’s ability to achieve global economic growth and development has been weakened in recent years. Critics suggest that the G7/8’s policies have shifted towards addressing climate and stategic issues, neglecting global economic issues. Moreover, its effectiveness in responding to economic issues has been disregarded by the Trump Administration, whose protectionist tendencies of limiting American contributions to the global economy can potentially impede the G7/8’s ability to address global economic growth and development. Overall, international organizations have maintained an immense contribution to international economic growth and development. This is ascertained through the IMF’s ability to deliver financial assistance to developing economies to deliver higher GDP levels alongside higher living standards. Moreover, the critical effectiveness of the WB in delivering financial initiatives that improve global economic growth and development in poorer nations, and the G7/8’s commitment to delivering higher economic growth among advanced economies, while securing higher living standards in developing economies, highlights the immense dedication to global economic growth and development.
The Comprehensive Progressive Trans-Pacific Partnership’s (CPTPP) critical contribution to global economic growth and development as a trade agreement is highlighted through its delivery of free trade among member states. CPTPP involves 11 countries with the objective of facilitating trade in goods and services by improving trade processes among member states. This increases global economic development as goods and services can be imported cheaply, improving material living standards. This is evident through the CPTPP’s commitment to removing 98% tariffs in trade among member states. Moreover, CPTPP aims to promote investment among member states, as firms and investors can access an array of financial markets within member states. This will increase global economic growth, as higher investments will generate employment and higher capital inflow, leading to an increase in GDP growth among member states. This is evident through investment between CPTPP members increasing by 54.6% from the five years before the CPTPP, revealing its immense contribution to global economic growth. However, the CPTPP’s promotion of trade relations between member states could increase short-term structural unemployment domestically, as inefficient domestic firms may experience difficulty competing with foreign competitors. This potentially impedes domestic economic development as higher short-term unemployment could deliver lower labour standards among member states.
The United States-Mexico-Canada Agreement (USMCA) significantly contributes to global economic growth and development by focusing on increasing trade relations between advanced and emerging economies in North America. USMCA focuses on reducing agricultural protection and tariffs between signatories, while ensuring greater access to markets among signatories. USMCA benefits the advanced economies of Canada and the U.S. by increasing their international competitiveness through lower production costs by transferring production to Mexico. The projection that USMCA will increase GDP by 0.35%, alongside creating 176,000 jobs in 6 years, highlights its contribution to increasing global economic development as Mexico’s emerging economy will benefit through higher employment rates, improving its living standards, while ensuring GDP growth among member states. However, the transfer of production to Mexico could create higher unemployment in Canada and the U.S, leading to a decrease in global economic growth as advanced economie signatory to USMCA will experience contractionary economic growth through higher unemployment rates. Thus, it is evident that trade agreements maintain an immense contribution to global economic growth and development. This is articulated through the CPTPP’s and USMCA’s success in increasing living standards and GDP levels among member states.
Thus, international organizations and trade agreements have immensely contributed to global economic growth and development. This is evident through the immense contributions of IMF, WB, and G7/8 in ensuring developing economies experience higher GDP growth and living standards. Moreover, this is articulated through the immense commitment of CPTPP and USMCA to ensuring that deepened trade relations generate higher economic growth rates among signatories, alongside higher economic development in the form of improved living standards.
