Financial inclusion and its impact on economic development has become an increasingly common topic in IELTS Writing Task 2 exams. Based on analysis of past exam papers, this theme has appeared in various forms over the last 2 years, particularly in questions about government policies, technological advancement, and social equality. Why financial inclusion is key to economic growth is especially relevant as countries worldwide strive for inclusive economic growth.
Let’s examine a recent IELTS Task 2 question on this topic:
Some people believe that access to banking and financial services should be considered a basic human right, similar to access to education and healthcare. To what extent do you agree or disagree with this statement?
Analyzing the Question
- Topic: Financial inclusion as a basic right
- Task type: Opinion (agree/disagree)
- Key points to address:
- Comparison with other basic rights
- Impact on individuals and society
- Government’s role
- Potential challenges
Financial inclusion as fundamental right alongside education healthcare
Sample Essay 1 (Band 8.0-8.5)
In today’s increasingly digital economy, I strongly agree that access to financial services should be considered a fundamental right, comparable to education and healthcare. This perspective is supported by compelling evidence of how financial inclusion drives both individual prosperity and broader economic development.
Financial services, like education and healthcare, play a crucial role in human development and dignity. Just as education enables knowledge acquisition and healthcare ensures physical wellbeing, role of banking in promoting sustainable development demonstrates how access to banking services empowers individuals to save, invest, and protect themselves against economic shocks. Without such access, people remain trapped in informal economies, vulnerable to exploitation and unable to build long-term financial security.
Moreover, financial inclusion catalyzes economic participation and social mobility. When individuals can access formal banking services, they can build credit histories, secure loans for education or entrepreneurship, and participate in the digital economy. Role of financial literacy in reducing poverty shows that this access, combined with proper education, significantly reduces income inequality and promotes sustainable development.
However, implementing universal financial access presents unique challenges. Unlike education and healthcare, which primarily require public infrastructure, financial inclusion demands collaboration between government regulators, private institutions, and technology providers. Additionally, concerns about financial responsibility and potential misuse must be addressed through proper oversight and education.
In conclusion, while the practical implementation may be complex, the fundamental importance of financial inclusion to human dignity and economic development justifies its classification as a basic right. Governments should work towards ensuring universal access to banking services, supported by appropriate regulatory frameworks and financial education programs.
Digital banking services enabling financial inclusion globally
Sample Essay 2 (Band 6.5-7.0)
I agree that banking and financial services should be considered a basic right because they are very important for people’s lives today, similar to education and healthcare.
Firstly, having access to banking services helps people manage their money better. When people can use banks, they can save money safely and get loans when they need them. This is especially important for poor people who might otherwise have to keep cash at home or borrow money from unofficial lenders at very high interest rates.
Secondly, importance of savings for economic growth shows that financial services help the economy grow. When more people use banks, businesses can get loans to expand, and people can invest their savings. This creates more jobs and helps everyone in society.
However, there are some problems with making financial services a basic right. Banks need to make profit to operate, and some people might not use banking services responsibly. Also, in rural areas, it can be expensive to build bank branches.
Role of technology in reducing economic inequality suggests that mobile banking and digital payments can help solve these problems. Many countries are now using technology to provide banking services to more people.
In conclusion, I believe financial services should be a basic right because they are necessary for modern life and economic development. Governments should work with banks to make sure everyone can access these services.
Key Vocabulary
- financial inclusion (n) /faɪˈnænʃəl ɪnˈkluːʒən/ – the availability of financial services to all people
- catalyze (v) /ˈkætəlaɪz/ – to cause or accelerate change
- sustainable development (n) /səˈsteɪnəbəl dɪˈveləpmənt/ – economic development that meets present needs without compromising future generations
- regulatory framework (n) /ˈreɡjələtɔri ˈfreɪmwɜːk/ – system of regulations and standards
- digital economy (n) /ˈdɪdʒɪtəl ɪˈkɒnəmi/ – economy based on digital computing technologies
Practice Suggestions
Try writing your own essay on these related topics:
- The role of mobile banking in developing economies
- Should governments provide free financial education to all citizens?
- How can technology help achieve universal financial inclusion?
Share your practice essays in the comments section for feedback and discussion!
