Interventionist policies use the government to change who gets what, and what is produced.
Redistribution
Progressive taxes
Higher earners pay a larger share, which funds services for the poor.
Transfer payments
Cash for poor families. Brazil's Bolsa Família pays parents who keep children in school.
Minimum wages
A wage floor lifts the pay of the lowest-paid workers.
The points to remember
- Redistribution raises the incomes of the poor: development directly.
- Name the policy and who it helps.
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The state also provides what markets under-provide.
Merit goods and infrastructure
Education programmes
Free schooling and training raise skills: higher productivity.
Health programmes
Vaccines, clinics and clean water: workers miss fewer days.
Infrastructure
Energy, roads, telecoms, water and sanitation cut firms' costs.
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Paper 1 asked this in November 2024, as part (b) for 15 marks.
Using real-world examples, evaluate the view that economic growth and economic development are best achieved through government intervention.
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How the 15 marks are given
| Marks | What your answer needs |
|---|---|
| 13–15 | Theory fully explained, terms right all the way through, balanced evaluation, real examples fully developed to support the argument |
| 10–12 | Theory explained, terms mostly right, evaluation mostly balanced, real examples developed |
| 7–9 | Theory partly explained, some evaluation but one-sided, examples partly developed |
| 4–6 | Theory only described, evaluation superficial, examples only named |
| 1–3 | Theory stated but not relevant, no evaluation |