Edexcel IGCSEEconomicsGeneral Applications12 Marks
Many developing countries rely heavily on primary sector industries.
- (a)Explain two characteristics of a developing country.[4]
- (b)Discuss the potential benefits for a developing country of diversifying its economy away from a heavy reliance on the primary sector.[8]
Mark scheme
Marking points from the official mark scheme. The mark or mark type is shown in brackets.
- Question 12(a)
- Award 1 mark for identification of a characteristic (e.g., low GDP per capita, high birth rates, low life expectancy, high infant mortality, dependence on primary sector, poor infrastructure) (K1)
- Award 1 mark for explanation of the characteristic (App1)
- Repeat for a second characteristic (K1, App1)
- Example 1: Low GDP per capita (K1) / indicating a low average income per person and therefore lower living standards (App1).
- Example 2: High birth rates (K1) / often due to lack of education, access to contraception, and cultural factors, leading to rapid population growth (App1).
- Question 12(b)
- Award 1 mark for identification of a benefit of diversification (e.g., reduced vulnerability to commodity price fluctuations, increased employment opportunities, higher value-added output, increased export earnings, greater economic stability) (K1)
- Award up to 3 marks for explanation/analysis of the benefit (App1, An1, An1)
- Repeat for a second benefit, or further analysis of the first (K1, App1, An1, An1)
- Example 1: Reduced vulnerability to commodity price fluctuations (K1). Developing countries often rely on a few primary products, whose prices can be volatile on world markets (App1). Diversifying into manufacturing or services means they are less exposed to these price swings (An1), leading to more stable export earnings and government revenue, improving economic stability (An1).
- Example 2: Increased employment opportunities and higher wages (K1). Primary sector often has limited job creation potential and low wages (App1). Developing secondary and tertiary sectors can create more jobs, often requiring higher skills and offering better pay (An1), which can improve living standards and reduce poverty (An1).
- Maximum 6 marks for explanation/analysis. Up to 2 additional marks for effective evaluation/discussion, e.g., acknowledging challenges of diversification or contrasting with the disadvantages of primary sector dependence (Eval1, Eval1).
- A balanced discussion may acknowledge that diversification can be slow and requires significant investment in infrastructure and education, or that it may face competition from established economies.
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