UPSC Prelims 2021 GS Paper I · Q14 of 98 Economy medium

With reference to 'WaterCredit', consider the following statements : 1. It puts microfinance tools to work in the water and sanitation sector. 2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank. 3. It aims to enable the poor people to meet their water needs without depending on subsidies. Which of the statements given above are correct?

  1. (a) 1 and 2 only
  2. (b) 2 and 3 only
  3. (c) 1 and 3 only ✓ UPSC's answer
  4. (d) 1, 2 and 3

Why the answer is (c)

• WaterCredit is the flagship model of Water.org, a US-based non-profit co-founded by Gary White and Matt Damon.

• Statement 1 is correct: it channels microfinance (small affordable loans) into household water connections and toilets.

• Statement 3 is correct: the aim is to let poor families meet water and sanitation needs through repayable loans rather than subsidies or charity.

• Statement 2 is wrong: it is not a WHO or World Bank initiative; it is run by Water.org with partner microfinance institutions, including many in India.

• Hence 1 and 3 only, option (c).

Why the other options are wrong

(a) 1 and 2 only
Statement 2 is wrong: WaterCredit is a Water.org initiative, not WHO/World Bank.
(b) 2 and 3 only
Statement 2 is wrong; statement 1 is correct.
(d) 1, 2 and 3
Statement 2 is wrong, so all three cannot be correct.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2021, held on 10 October 2021. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

Reading the answer is not the same as getting it right under a clock. Practise this question with UPSC's negative marking, and anything you miss goes into an error notebook until you get it right twice.

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