The topic of cashless societies and their economic impact has become increasingly prevalent in IELTS Writing Task 2 examinations. Based on analysis of past papers and current trends, this theme appears in approximately 15% of economy-related questions, often intersecting with technology and social change topics. Let’s examine some high-scoring sample essays addressing this crucial contemporary issue.
For a comprehensive understanding of this topic, you may want to explore the benefits and drawbacks of a cashless society before diving into our sample essays.
Analysis of Task Question
Some people believe that moving towards a cashless society brings significant benefits to economic development. To what extent do you agree or disagree with this statement?
This question requires candidates to:
- Express their position on cashless societies’ economic impact
- Support arguments with relevant examples
- Maintain a clear stance throughout
- Provide a balanced discussion
Various digital payment methods showcasing modern cashless transactions
Band 8.5 Sample Essay
The transition towards a cashless economy has emerged as a transformative force in modern financial systems, and I strongly agree that this shift substantially contributes to economic development through multiple channels.
Firstly, digital transactions create an extensive data trail that enhances economic transparency and efficiency. When all financial movements are recorded electronically, it becomes significantly easier for governments to track monetary flows, reduce tax evasion, and implement more effective economic policies. For instance, India’s demonetization initiative in 2016, despite its initial challenges, has led to improved tax compliance and reduced informal economic activities.
Moreover, cashless transactions dramatically reduce operational costs across the economic spectrum. Banks save substantially on cash handling and processing expenses, while businesses benefit from lower security costs and faster transaction processing. This cost efficiency allows companies to reinvest savings into growth and innovation, thereby stimulating economic development. A prime example is Sweden, where the widespread adoption of digital payments has helped businesses reduce overhead costs by up to 15%.
Similar insights can be found in articles about how peer-to-peer lending disrupts traditional banking, showcasing additional benefits of digital financial innovation.
Furthermore, digital payment systems facilitate financial inclusion, particularly in developing economies. Mobile money platforms like M-PESA in Kenya have enabled millions of previously unbanked individuals to participate in the formal economy, driving economic growth through increased access to financial services and improved money velocity.
In conclusion, the transition to a cashless society demonstrably accelerates economic development through enhanced transparency, reduced operational costs, and broader financial inclusion. While challenges exist, the benefits substantially outweigh the drawbacks.
Digital financial inclusion transforming developing economies
Band 6.5 Sample Essay
I agree that cashless societies help economic development, but there are some problems too that we need to think about.
The main advantage of going cashless is that it makes things easier for everyone. When people use cards or phones to pay, transactions happen quickly and shops don’t need to handle cash. This saves time and money. For example, in my country, many small shops now accept digital payments and they say it helps them serve more customers.
Another good thing is that governments can see all the money movements. This helps stop black money and makes sure everyone pays taxes properly. Also, when everything is digital, banks can give loans more easily because they can check people’s financial history.
However, there are some problems too. Old people and poor people might find it hard to use digital payments. They might not have smartphones or know how to use apps. This could make them feel left out of the economy. Also, if the internet is not working or there is a power cut, people cannot make payments.
In conclusion, while cashless systems are good for the economy, we need to make sure everyone can use them properly. The government should help people learn about digital payments and make sure the systems work well.
Scoring Analysis
Band 8.5 Essay Analysis
- Task Response (9): Clear position, fully developed ideas with relevant examples
- Coherence/Cohesion (8): Logical organization, effective use of cohesive devices
- Lexical Resource (8): Sophisticated vocabulary appropriately used
- Grammar (9): Wide range of structures with full flexibility and accuracy
Band 6.5 Essay Analysis
- Task Response (6): Clear position but limited development of ideas
- Coherence/Cohesion (7): Basic organization with some cohesive devices
- Lexical Resource (6): Adequate vocabulary with some errors
- Grammar (7): Mix of simple and complex structures with some errors
Key Vocabulary
- demonetization (n) /diːˌmʌnɪtaɪˈzeɪʃən/ – the process of removing a currency from circulation
- operational costs (n) /ˌɒpəˈreɪʃənl kɒsts/ – expenses related to maintaining business operations
- financial inclusion (n) /faɪˈnænʃəl ɪnˈkluːʒən/ – access to useful and affordable financial products
- monetary flows (n) /ˈmʌnɪtri fləʊz/ – movement of money within an economic system
- tax compliance (n) /tæks kəmˈplaɪəns/ – adherence to tax payment regulations
For more insights into this topic, you might find the pros and cons of a cashless society helpful for additional perspective.
Practice Suggestion
Try writing your own essay about the following related topics:
- The impact of digital currencies on international trade
- The role of mobile payment systems in developing economies
- The challenges of implementing cashless systems in rural areas
Share your practice essays in the comments section for feedback and discussion with fellow learners.
