IB Economics
Extended Essay for IB Economics
Apr 6th
Some useful web sites to get you thinking about choosing your topic / question, and your overall approach to the EE:
General EE advice:
http://en.wikibooks.org/wiki/International_Baccalaureate/Extended_Essay_Tips
The official IBO diploma Programme Extended Essay Guide can be downloaded from a variety of websites, such as the following:
http://library.tedankara.k12.tr/IB/IB_Extended_Essay_guide.pdf
It is well worth reading the Economics section in the above guide (check the book marks on the left hand side, Details – subject specific).
Other economics specific advice:
http://economicsontoast.blogspot.com/2007/02/initial-guidance-for-extended-essay-in.html
http://ajmccarthynz.wordpress.com/2010/09/12/extended-essays/
http://www.timwoods.org/2011/09/05/how-to-write-your-extended-essay-getting-started/
Using these web-sites you can view real examples of IB Economics Extended Essays. Take care to see what standard they are:
http://schools.sd42.ca/gsslibrary/?page_id=805
http://www.tuition.com.hk/dried-seafood-hong-kong.htm
http://issuu.com/revisioncourses/docs/extended_essay_economics
Now, when you get around to planning your essay, you might consider using this interactive planner:
http://www.readwritethink.org/files/resources/interactives/essaymap/
The IMF and The World Bank
Mar 28th
In the 2005 IB Economics syllabus you are required to evaluate the role of the International Monetary Fund (IMF) and the World Bank in their contributions to growth and development. In simple terms, you should know what they do, and their advantages and disadvantages. Interestingly, much of the online media out there is overtly critical of these international financial institutions. Try to maintain some balance in your evaluation by acknowledging benefits as well as explaining the disadvantages. Here are some key resources – you should spot whether they are biased in favour of or against the IMF and WB (or neutral).
a) Websites
International Monetary Fund
http://www.globalization101.org/imf-introduction/
b) Videos
Finally, if you have time (one and a half hours), you might choose to watch a very critical but fascinating documentary film called Life and Debt – I highly recommend this, but it can be disturbing at times.
Micro-credit Schemes
Mar 7th
This is a nice and simple introduction to microfinance which features microcredit, as explained in the video itself.
You could explore this web site which is an example of a charity organisation seeking to facilitate microfinance. There is a useful video on the home page.
Similarly, this website gives details of microcredit in practice:
The Grameen Bank, founded in Bangladesh by Muhammad Yunas, is often cited as the main pioneer in the field of microfinance. This short video features Yunas and explains the concepts:
This video gives an example of apparent success:
WorldBank provides an example from Mauritania:
Fair Trade Organisations
Mar 7th
A brief and accessible explanation is here:
BBC Bitesize Fair Trade (Geography GCSE)
Here are some videos to introduce you to the idea of Fair Trade:
Some rights reserved by Oxfam East Africa
DiagramConsultores gives us this case-study video on Fair Trade in the Domincan Republic:
mobiuslive posted an excerpt video from eq.tv on fair trade:
Types of Aid
Mar 7th
The IB Economics Syllabus (2005) requires you to understand:
Types of aid
• bilateral, multilateral
• grant aid, soft loans
• official aid
• tied aid
Image: Some rights reserved by Oxfam East Africa
You can quite quickly find out what these mean by visiting these websites:
BBC Bitesize Types of Aid (Geography GCSE website)
Types of Aid by Scalloway.org.uk
PDF file – AID – what are the different types? by World Vision Australia School Resources
Introduction to Development
Jan 22nd
This post offers some resources to help learn about the key syllabus pints under section 3.2 of the 2005 IB Economics syllabus.
Definitions of economic growth and economic development
and
Differences in the definitions of the two concepts
This video excellent by Flame India includes points on limitations of using GDP to compare welfare (below) and alternative measures (HDI). Take note of the definitions by Michael Todaro and also the contributions of Amrtya Sen and Mahbub ul Haq. Note how Economic Growth contributes towards Progress in Human Development.
Gross Domestic Product (GDP) versus Gross National Product (GNP) as measure of growth
To recap the meaning of GDP, you might use this opengecko post:
To see some examples of actual GDP figures, you could use this post:
Comparing GDP and Other Indicators Across Countries
PAJ Holden gives a detailed explanation of the difference which lasts 8 minutes:
This video summarises the differences much more quickly:
Limitations of using GDP as a measure to compare welfare between countries
Notice – Joseph Stiglitz also points out the difference between GDP and GNP (above) as well.
Allowance for differences in purchasing power when comparing welfare between countries
Alternative measurements of development
Composite Indices – HDI and beyond by hdr.undp.org
See the original (via EU Infrastructure) here.
Problems of measuring development
For this section, you may conduct your own online research and/or consult your text book.
The Marshall Lerner Condition and the J Curve
Dec 11th
1) A good web page, by http://welkerswikinomics.com:
The Marshall-Lerner Condition, the J-curve, and the US trade deficit
2) A useful video via the same author’s http://www.econclassroom.com:
3) A chance for you to play around with the Marshall Lerner condition yourself:
http://www.eco.rug.nl/~gigengack/ge/ML_Interactive/ML_Interactive.htm
Purchasing Power Parity
Dec 7th
Purchasing Power Parity by Mindbitesdotcom. This is an incomplete taster / ad for a course you have to subscribe to, but is still useful as is stands, provided you add to your understanding with other resources.
15: PURCHASING POWER PARITY by InformedTrades:
2 Useful web sites:
http://economics.about.com/cs/money/a/purchasingpower.htm
http://www.wisegeek.com/what-is-purchasing-power-parity-theory.htm
Questions:
1) What is PPP and explain how it works using a hypothetical example?
2) Evaluate the usefulness of PPP theory when applied to the real world.
The 2011 Eurozone Crisis
Nov 27th
Image: Some rights reserved by Images_of_Money
Here are some online resources to explore the so called Eurozone crisis that is occurring in late 2011:
Is the Euro Crumbling? Excellent, simplified infographic video on background behind current Eurozone crisis by BBC.
How can countries go bust? Useful one minute summary by the BBC’s Robert Preston.
In graphics: The Eurozone’s crisis – BBC provides useful graphs for comparing deficit, GDP, Unemployment and Debt in Eurozone countries and UK.
Timeline: The unfolding eurozone crisis by the BBC
Eurozone debt web: Who owes what to whom? infographic by BBC
EU Debt Crisis in Charts Infographic – via forexnewsnow.com
It’s All Connected: An Overview of the Euro Crisis – NYT Sunday Review (Interactive Graphic)
Paradigm Lost – Mapping The Crisis – carnegieendowment.org
Image: via infographicsinsights.com
Q&A: Greek debt crisis – BBC News round up of the Late 2011 economic crisis in Greece, and how it impacts on the Eurozone
Beware of falling masonry – article by the Economist (26th November 2011):
The crisis in the euro area is turning into a panic and dragging the zone into recession. The risk that the currency disintegrates within weeks is alarmingly high
Is this really the end? – article by the Economist (26th November 2011):
EVEN as the euro zone hurtles towards a crash, most people are assuming that, in the end, European leaders will do whatever it takes to save the single currency. That is because the consequences of the euro’s destruction are so catastrophic that no sensible policymaker could stand by and let it happen.
Eurozone crisis: Terms explained – The Telegraph defines some of the buzz words which frequently appear in current media analysis of the Eurozone crisis.
Are you struggling to understand your credit default swaps and your buybacks? Here are some of the terms used to discuss the eurozone debt crisis
An interpretation of possible outcomes of Greek debt (as at 26th October 2011):
Source: http://www.el-baghdadi.com
Further reading:
More useful updates can be found at these sites:
http://www.bbc.co.uk/news/special_reports/global_economy/
http://www.scoop.it/t/eurozone
http://www.guardian.co.uk/business/debt-crisis
http://www.economist.com/node/21524378
World Trade Organisation (WTO)
Nov 16th
The syllabus requirements:
4.4 World Trade Organization (WTO)
• Aims
• Success and failure viewed from different perspectives
Accordingly, your goal from learning about this part of the syllabus should be to be able to answer the following questions:
1) What are the aims of the World Trade Organisation?
2) What are some of the positive contributions of the World Trade Organisation to the world trading system? Evaluate these advantages and, in particular, identify the stakeholders who would agree that these are advantages with reasons for their agreement.
3) What are some of the criticisms made against the World Trade Organisation? Evaluate these advantages and, in particular, identify the stakeholders who would agree that these are disadvantages with reasons for their disagreement.
Image: Some rights reserved by World Trade Organization
A flash-based slideshow courtesy of the guardian gives an historical introduction:
This infographic by http://www.themoscownews.com sums up the main aims of the WTO:
History and functions of the World Trade Organization (WTO)
The ever reliable mjmfoodie gives us a introduction to GATT, which later became WTO. It gives us the history, moving on to the reasons for the WTO (aims). It is quite pro-WTO in its approach:
Episode 37: GATT/WTO by mjmfoodie (4’ 38”)
This is an impressive student project on the same topic which gets very detailed about membership requirements, but then moves on to the main aims of the WTO, which is useful for our syllabus requirements:
World Trade Organization by sdhettige (9’28”)
The World Trade Organisation is a documentary excerpt posted online by 
It is good for the historic set-up of the WTO (originally GATT – what was this?), and the various Rounds which shaped its development. It is also good for an overview of some global economic developments (such as the 1970s World Oil Crises) that are useful to know about in general for IB Economics.
This next video is an engaging infographic on some of the difficulties faced by Kenya. Kenya’s WTO membership required in trade liberalisation (reduction of protectionism). This video is biased, but puts forwards some pretty clear arguments against the imposed trade regulations placed by rich Western/Northern economies, which some argue the WTO simply supports at the expense of poorer economies such as Kenya. Remember, the syllabus expects us to see the issue from different perspectives.
Animation: Trade Justice – why world trade rules need to change by tradeaid (2’ 28’”)
Michael Moore is a renowned political commentator/critic famous for a number of documentary films. In this clip he is clearly very critical of the WTO, giving a more extreme view of its possible ‘failure’:
Michael Moore by ProtestGlobalisation
Next we have short interview clips with various stakeholders in the Philippines, giving strong criticism of the potential effects of trade liberalisation, as actively encouraged by the WTO, on such a LDC.
Why WTO is Bad for Developing Countries by ymataglenn (3’ 46”)
Finally, ‘CuteChadz’, a student, sets out her own revision-focused overview of the World Trade Organisation:
A2 Economics: World Trade Organisation (WTO) in 8 mins by CuteChadz
