Global debt management has been a recurring theme in IELTS Writing Task 2, appearing in various forms over the past decade. Analysis of previous exam questions shows this topic frequently emerges in problem-solution and discussion essays, particularly during periods of global economic uncertainty. Let’s examine a recent IELTS Writing Task 2 question on this theme.
IELTS Writing Task 2 Question on Global Debt Management
Some countries are facing rising national debt, which could affect their future development. What problems can this cause? What solutions can be implemented to tackle this issue?
Question Analysis
This question requires a problem-solution approach with two clear parts:
- Part 1: Discuss problems caused by rising national debt
- Part 2: Propose viable solutions
- Key focus: Economic impacts and practical measures for debt management
As highlighted in importance of managing debts for financial growth, understanding the complexities of debt management is crucial for economic stability.
Band 9 Sample Essay
Rising national debt presents significant challenges for many countries in today’s interconnected global economy. This essay will examine the problems this creates and suggest potential solutions.
Excessive national debt can lead to several severe consequences. Firstly, high debt levels often result in reduced public spending on essential services like healthcare and education, as governments must allocate more resources to debt servicing. Furthermore, mounting debt can trigger credit rating downgrades, making it more expensive for countries to borrow, creating a vicious cycle of increasing financial burden. For instance, several European nations experienced this during the 2008 financial crisis, leading to severe austerity measures.
Economic Impact of Rising National Debt
To address these challenges, governments can implement various measures. One effective approach is how to reduce debt through refinancing, which involves restructuring existing debt under more favorable terms. Additionally, countries can enhance revenue generation through efficient tax collection systems and diversification of income sources. For example, Norway’s sovereign wealth fund demonstrates how strategic resource management can create long-term financial stability.
In conclusion, while rising national debt poses significant threats to economic stability and social development, implementing strategic financial management policies and maintaining fiscal discipline can help countries navigate these challenges effectively.
(290 words)
Band 7 Sample Essay
The issue of increasing national debt is becoming a major concern for many countries worldwide. This essay will discuss its problems and potential solutions.
High national debt creates several significant problems. The main issue is that it reduces a government’s ability to invest in important areas like infrastructure and social services. When countries have large debts, they must spend more money on interest payments instead of development projects. Also, high debt levels can lead to economic instability and reduced foreign investment.
Similar to managing personal debt during financial crises, countries can implement various solutions. Governments should focus on improving tax collection and reducing unnecessary spending. They could also invest in sectors that generate long-term economic growth, such as technology and renewable energy. These measures can help create sustainable revenue streams for debt repayment.
In conclusion, while rising national debt presents serious challenges, implementing proper financial management strategies can help countries overcome these difficulties.
(138 words)
Key Vocabulary
- fiscal discipline (n) /ˈfɪskəl ˈdɪsəplɪn/ – strict control over government spending
- sovereign wealth fund (n) /ˈsɒvrɪn welθ fʌnd/ – state-owned investment fund
- austerity measures (n) /ɔːˈsterəti ˈmeʒəz/ – official actions to reduce spending
- credit rating (n) /ˈkredɪt ˈreɪtɪŋ/ – assessment of creditworthiness
- debt servicing (n) /det ˈsɜːvɪsɪŋ/ – payment of interest on borrowed money
High-Scoring Sentence Patterns
- “Not only does high national debt burden future generations, but it also limits current economic growth opportunities.”
- Structure: Not only + auxiliary verb + subject + verb, but also + subject + verb
- “The more a country accumulates debt, the harder it becomes to maintain economic stability.”
- Structure: The more/less + clause A, the more/less + clause B
For further practice, try writing your own essay using these patterns and share it in the comments section below for feedback.
