IB Economics: Curriculum Modules & Topics Comparison
UNIT 4: The Global Economy
Module 4.1: Benefits of International Trade
| Traditional Topics | Potential Inclusions and Modifications |
|---|---|
| Benefits: • Comparative advantage • Absolute advantage • Specialization • Increased choice • Lower prices • Competition • Export revenues | None |
Module 4.2: Types of Trade Protection
| Traditional Topics | Potential Inclusions and Modifications |
|---|---|
| • Tariffs • Quotas • Subsidies • Administrative barriers • Voluntary export restraints | Add sanctions. Positive Peace Connection: Pillar 5 (Good Relations) - when relations break down |
Module 4.3: Arguments For and Against Trade Protection
| Traditional Topics | Potential Inclusions and Modifications |
|---|---|
| Arguments for: • Infant industry protection • National security • Employment protection • Anti-dumping • Strategic trade policy Arguments against: • Inefficiency • Retaliation • Welfare losses • Reduced choice | None |
Module 4.4: Economic Integration
| Traditional Topics | Potential Inclusions and Modifications |
|---|---|
| Types: • Free trade areas • Customs unions • Common markets • Economic unions Benefits: • Trade creation • Economies of scale • Competition • Political cooperation Costs: • Trade diversion • Loss of sovereignty | Add: Commercial peace theory - Trading partners rarely go to war - Opportunity cost of conflict increases with trade interdependence - Historical evidence: trade correlates with peace - EU Steel Corporation post WWII Positive Peace Connection: Pillar 5 (Good Relations with Neighbours) |
Module 4.5: Exchange Rates
| Traditional Topics | Potential Inclusions and Modifications |
|---|---|
| • Floating vs. fixed systems • Appreciation and depreciation • Determinants of exchange rates • Effects on economy • Government intervention (HL) | None |
Module 4.6: Balance of Payments
| Traditional Topics | Potential Inclusions and Modifications |
|---|---|
| • Current account • Capital and financial account • Causes of imbalances • Consequences of imbalances • Methods to correct imbalances (HL) | None |
Module 4.7: Sustainable Development [MAJOR REVISION]
| Traditional Topics (~5 hours) | Potential Inclusions and Modifications |
|---|---|
| A. Meaning of Sustainable Development • Environmental sustainability • Economic sustainability • Social sustainability • Intergenerational equity B. Sustainable Development Goals • Overview of 17 SDGs • Interconnections between goals C. Relationship Between Sustainability and Poverty (HL) • Vicious cycles • Environmental degradation → poverty • Poverty → environmental degradation | Reframe as Peace and Sustainable Development: Economics, peace and development are interconnected. - Links to economic foundations Keep existing examples, but introduce peace as an enabler. There is no development without peace. Cite UN, etc. What is Peace? Johan Galtung Positive and Negative Peace. IEP Global Peace Index and Positive Peace Index. Show how the 8 Pillars map to economic concepts learned. |
Module 4.8: Measuring Development [MAJOR REVISION]
| Traditional Topics (~5 hours) | Potential Inclusions and Modifications |
|---|---|
| A. Single Indicators • GDP/GNI per capita (PPP) • Health indicators (life expectancy, infant mortality) • Education indicators (literacy, enrollment rates) • Economic/social inequality indicators • Energy indicators • Environmental indicators B. Composite Indicators • Human Development Index (HDI) • Gender Inequality Index (GII) • Inequality-adjusted HDI (IHDI) • Happy Planet Index (HPI) C. Evaluation • Strengths and limitations of each approach • Relationship between growth and development | Add: Global Peace Index (GPI) The Peace-Prosperity Nexus: • Same foundations (the 8 Positive Peace Pillars) create both • Bidirectional causation: - Development enables peace (resources for institutions) - Peace enables development (security for investment) • Reinforcing cycle when both present Connecting Measurements: • GPI measures peace outcomes (negative peace) • HDI measures development outcomes • Positive Peace Framework measures the causes (pillar strength) • Countries with strong pillars score well on both GPI and HDI Show the economic benefits of peace. |
Module 4.9: Barriers to Economic Growth and Development [MAJOR REVISION]
| Traditional Topics (~8 hours) | Potential Inclusions and Modifications |
|---|---|
| A. Poverty Traps • Low savings → low investment → low growth • Circular causation diagrams B. Economic Barriers • Infrastructure inadequacy • Limited access to credit • Lack of access to technology • Inadequate human capital • Rising economic inequality C. Political and Social Barriers • Weak institutional framework • Lack of good governance • Corruption • Unequal distribution of power and status D. Geographic Barriers • Climate and terrain • Landlocked countries • Resource endowment issues E. International Barriers • Terms of trade problems • Trade barriers from developed countries • Debt burden | Include conflict trap and resource curses. |
Module 4.10: Development Strategies [MAJOR REVISION]
| Traditional Topics (~8 hours) | Potential Inclusions and Modifications |
|---|---|
| A. Market-Based Strategies • Trade liberalization • Privatization of state enterprises • Deregulation • Promotion of FDI • Flexible labor markets B. Interventionist Strategies • Industrial policy • Trade protection (infant industry) • Government investment in infrastructure • Price controls • State ownership • Redistribution policies C. Other Strategies • Foreign aid and development assistance • Microfinance • Fair trade • Debt relief Typically taught as extensive lists with separate categories | ORGANIZING FRAMEWORK: Building Positive Peace Pillars Every development strategy now taught with dual lens: 1. How does it promote economic development? 2. Which Positive Peace pillar(s) does it strengthen? This shows students that development strategies and peace-building strategies are THE SAME - they all build the 8 pillars that create both prosperity and stability. Market-Based Strategies: • Trade liberalization → Strengthens Pillar 5 (Good Relations), Pillar 2 (Business Environment) • Privatization → Strengthens Pillar 2 (Business Environment) • Deregulation → Strengthens Pillar 2 (Business Environment) • FDI promotion → Strengthens Pillar 2 (Business Environment) • Flexible labor markets → Strengthens Pillar 2 (Business Environment) Teach principles and mechanisms rather than exhaustive lists. Students already learned these concepts in Units 1-3. |