IB Economics Internal Assessment: Commentary Writing

The Internal Assessment (IA) commentary is a cornerstone of your IB Economics grade, accounting for a significant portion of your final score. Mastering it demonstrates your ability to move beyond textbook theory and apply economic reasoning to the real world.

Selecting Your Article: The Foundation of a Strong Commentary

Your first and most critical step is choosing an appropriate news article. This is not a random selection; it is a strategic decision that sets the stage for your entire analysis. An appropriate article must be directly linked to a specific section of the IB Economics syllabus, such as Microeconomics, Macroeconomics, International Economics, or Development Economics. For instance, an article about a government subsidizing electric vehicles fits perfectly under market failure and government intervention in Microeconomics, while a report on a central bank raising interest rates aligns with monetary policy in Macroeconomics.

The article should contain a clear economic event or policy decision that you can analyze, not just describe. It must be recent, typically published within the last year, to ensure the context is relevant. A common mistake is picking an article that is too broad or vague, such as "Economy Shows Growth." Instead, look for pieces with specific triggers: "Government Imposes Tariff on Steel Imports" or "National Minimum Wage Increased by 5%." These provide a focused lens for applying theory. Remember, you need three commentaries from three different syllabus sections, so plan your selections to demonstrate range.

Applying Economic Theory with Precision and Accurate Diagrams

Once you have your article, you must apply relevant economic theory. This means identifying the core economic concepts at play and using them to explain the events in the article. Start by defining key terms. If your article is about a sugar tax, you must define and explain negative externalities of consumption, social cost, and indirect taxation. Your explanation should show why the market fails without intervention.

The accurate construction and explanation of economic diagrams are non-negotiable for a high-scoring IA. Diagrams are your primary tool for visual analysis. For every major theory you apply, a corresponding diagram should be included, fully labeled and explained. If analyzing a subsidy, you must draw a supply and demand diagram showing the shift in supply, the new equilibrium, and the resulting changes in price, quantity, consumer surplus, and government expenditure. Use consistent labeling: $P_1$ and $Q_1$ for initial equilibrium, $P_2$ and $Q_2$ for the new equilibrium. Explain the diagram in your text, walking the examiner through each step. For example: "As shown in Figure 1, the subsidy shifts the supply curve from $S_1$ to $S_2$. This lowers the market price from $P_1$ to $P_2$ and increases the quantity traded from $Q_1$ to $Q_2$."

Evaluating the Effectiveness of Economic Policies

Moving from explanation to evaluation is what separates a good commentary from a great one. Evaluation involves weighing the intended outcomes of a policy against its potential limitations, unintended consequences, and alternatives. Do not simply list pros and cons; assess their relative significance in the context of the article. For a policy like a tariff, you would first explain its goals (protecting domestic jobs, improving the trade balance) and illustrate it with a diagram showing the domestic market with a world price and a tariff.

Then, you must evaluate. Consider short-run versus long-run effects. While a tariff may protect jobs initially, it could lead to inefficiency, higher prices for consumers, and retaliation from trading partners. Discuss the significance of elasticity of demand; if demand for the imported good is inelastic, the tariff will be more effective at raising revenue but will cause a greater burden on consumers. Suggest alternative policies, such as subsidies for domestic firms or investment in retraining programs, and briefly compare their relative effectiveness. This critical analysis shows you understand that economic policies are rarely clear-cut solutions.

Structuring an Analytical Commentary Within the Word Limit

Each commentary has a strict word limit of 800 words. This demands concise, purposeful writing where every sentence serves to analyze, not describe. Your structure should be logical and guided by economic reasoning. A proven framework is:

1. Introduction (75-100 words): Briefly summarize the article, state the key economic issue, and outline the concepts you will use.
2. Analysis (500-600 words): This is the core. Apply theory, develop your diagrams, and explain the mechanisms at work.
3. Evaluation (150-200 words): Discuss the policy's effectiveness, limitations, and alternatives.
4. Conclusion (50-75 words): Synthesize your main findings without introducing new ideas.

To maintain an analytical tone, constantly ask "why?" and "so what?". Instead of writing, "The government raised taxes," write, "The government raised indirect taxes to internalize the externality, which is predicted to increase the market price and reduce the quantity demanded, as shown by the movement along the demand curve." Use key terminology precisely. Allocative efficiency, equity, inflationary pressure, and aggregate demand are not just buzzwords; they are tools for precise explanation. Avoid narrative storytelling about the article; use it as evidence to support your economic argument.

Common Pitfalls

Pitfall 1: Descriptive Summarizing Instead of Economic Analysis.

• The Mistake: Simply paraphrasing the article's content without applying theory. For example, "The article says the price of housing went up because demand was high."
• The Correction: Use the article as a springboard for analysis. "The rising housing prices described in the article can be analyzed using the demand and supply model. Increased consumer confidence and low-interest rates have caused the demand curve to shift to the right, from $D_1$ to $D_2$, leading to a new equilibrium at a higher price ($P_2$) and quantity ($Q_2$)."

Pitfall 2: Incorrect or Poorly Explained Diagrams.

• The Mistake: Presenting an unlabeled, sloppy, or conceptually wrong diagram. Forgetting to shift the correct curve or mislabeling axes.
• The Correction: Diagrams must be hand-drawn or digitally created, neatly presented, and fully integrated into your text. Every curve, axis, equilibrium point, and shaded area must be clearly labeled and directly referenced in your explanation. Explain why the curve shifts and what the new equilibrium indicates.

Pitfall 3: Ignoring the Word Limit and Syllabus Requirements.

• The Mistake: Writing a 1,200-word essay or selecting two articles from the same syllabus section.
• The Correction: Draft freely, then edit ruthlessly. Remove redundant phrases and tangential points. Use your word processor's word count tool diligently. Plan your three commentaries from the start to ensure they cover distinct syllabus areas (e.g., one Micro, one Macro, one International).

Pitfall 4: Superficial Evaluation.

• The Mistake: Stating "the policy has pros and cons" without depth, or failing to consider context.
• The Correction: Develop a balanced argument by assessing the relative magnitude of effects. Use phrases like "however, this gain in efficiency may be offset by..." or "the success of this policy largely depends on the elasticity of supply, which in the short run is likely to be..." Link limitations back to the specific scenario in the article.

Summary

• Strategic Article Selection is the foundation; choose recent, specific articles tied directly to different IB Economics syllabus units.
• Theory Application Requires Precision; define key terms, use accurate and fully explained diagrams to illustrate economic models, and move beyond description to explanation.
• Effective Evaluation critiques policies by analyzing their limitations, unintended consequences, and alternatives within the article's context.
• Adhere to Structure and Limits; craft a concise, 800-word commentary with a clear analytical flow: introduction, theory application, evaluation, and conclusion.
• Maintain an Analytical Tone by consistently using economic terminology to explain causes and effects, ensuring every sentence advances your argument.
• Avoid Common Errors like summarization, poor diagrams, and superficial evaluation through careful planning, proofreading, and a focus on economic reasoning.