UPSC 2016 Prelims Questions with Answers

Explanation

Gold Monetization Scheme and Sovereign Gold Bond Scheme were introduced to lower the physical demand for gold and remove the estimated 20,000 tonnes of the precious metal from households where it was sitting inert. Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold issued by the RBI on behalf of the Government.

Statement 1 is correct: Sovereign Gold Bond Scheme was launched along with the Gold Monetisation Scheme in November 2015. India has a strong cultural affinity for gold, and a significant amount of gold is held by households in the form of jewelry, bars, and coins. The objective is to reduce India’s gold imports and bring all the gold lying idle with individuals and households and put it to productive use in the economy.

Statement 2 is incorrect: Neither the SGB nor the GMS is explicitly designed to promote FDI in the gold and jewellery sector. Their primary focus is on domestic gold mobilization and reducing reliance on imports. While a more organized gold market resulting from these schemes could create a conducive environment for investment, promoting FDI is not a stated objective of these schemes.

Statement 3 is correct: By offering a non-physical form of gold investment, the scheme aims to curb the demand for imported gold thus reducing the country’s import bill. The SGB scheme offers investors bonds denominated in grams of gold. These bonds provide returns linked to the market price of gold along with periodic interest payments.

Explanation

Statement 1 is correct: The International Finance Corporation (IFC) is a member of the World Bank Group, focusing specifically on private sector development in developing countries. It acts as a sister organization to the International Bank for Reconstruction and Development (IBRD), but with a distinct mandate to promote private enterprise.

Statement 2 is correct: "Masala bonds" are rupee-denomi-nated bonds issued by international entities, such as the IFC, in offshore markets. The proceeds from these bonds are typically used to finance projects in India, and the principal and interest payments are made in Indian rupees. This means that investors bear the currency risk, as the value of the rupee can fluctuate relative to other currencies. Masala bonds serve as a source of debt financing for both public and private sector entities in India, allowing them to raise capital for infrastructure projects, business expansion, and other development initiatives. The rupee denomination of these bonds makes them attractive to international investors seeking exposure to the Indian market while also supporting the development of India’s capital markets.

Explanation

Paris Summit COP21-2015 is a legally binding Inter-national Treaty on Climate Change. It was adopted by 195 Parties at COP 21 in Paris, on 12 December 2015 & entered into force on 4 November 2016. It requires all parties to put forward their Nationally Determined Contributions (NDCs) which are voluntary in nature.

Statement 2 is correct: Paris Summit COP21 aims to limit global warming due emission of green house gas emissions to below 2 degree Celsius, preferably to 1.5 degrees Celsius, compared to pre-industrial levels. It requires all parties to put forward their Nationally Determined Contributions (NDCs) which are voluntary in nature. Statements 1 and 3 are incorrect: The Treaty was only "agreed" by 195 Parties in Paris at the conference. The agreement will en-ter into force only after 55 countries that account for at least 55% of global emissions have deposited their instruments of ratification. Developed countries will work to define a clear roadmap on ratcheting up climate finance to USD 100 billion (not USD 1000 billion) by 2020.

Explanation

The Sustainable Development Goals (SDGs) are a set of 17 global objectives established by the United Nations in 2015 as part of the 2030 Agenda for Sustainable Development. These goals address various global challenges, including poverty, inequality, climate change, environmental degradation, peace, and justice, with a target to achieve them by 2030. The SDGs replaced the Millennium Development Goals (MDGs) in 2015, which started a global effort in 2000 to tackle the indignity of poverty.

Statement 1 is incorrect: The Club of Rome, established in 1968, is known for its 1972 report titled "The Limits to Growth," which discussed the potential consequences of unchecked economic and population growth. While this report highlighted the need for sustainable practices, it did not propose the SDGs. The Sustainable Development Goals (SDGs) were born at the United Nations Conference on Sustainable Devel-opment in Rio de Janeiro in 2012. The SDGs were formulated through a United Nations-led process, culminating in their adoption in 2015.

Statement 2 is correct: In 2015, the United Nations General Assembly approved 17 sustainable development goals (SDGs) with 169 associated targets which are to be achieved by 2030.

Explanation

United Nations Convention to Combat Desertification (UNCCD) was established in 1994. It is the sole legally binding international agreement linking environment and development to sustainable land management. There are 197 Parties to the Convention, including 196 country Parties and the European Union. The Convention, based on the principles of participation, partnership and decentralization, is a multilateral commitment to mitigate the impact of land degradation. Its flag-ship publication includes Global Land Outlook.

Statement 1 is correct: Its 197 Parties aim, through innovative national schemes and global partnerships, to implement the Convention and achieve the Sustainable Development Goals. The end goal is to protect the land from overuse and drought, so it can continue to provide food, water and energy.

Statement 2 is incorrect: The Convention addresses specifically the arid, semi-arid and dry sub-humid areas, known as the dry-lands, where some of the most vulnerable ecosystems and people can be found. It is not particularly focussed towards South Asia and North Africa region.

Statement 3 is correct: The UNCCD emphasizes a bottom-up approach, recognizing that sustainable land management is most effective when local communities are actively involved. It promotes the participation of local populations, particularly women and youth, in decision-making processes related to land management and desertification mitigation.

Explanation

Pairs 1 is incorrectly matched: Annex-I countries refer to developed countries listed under the Kyoto Protocol with binding commitments to reduce emissions. The Cartagena Protocol deals with biosafety and regulates the transboundary movement of living modified organisms (LMOs), not emissions reduction. Pairs 2 is incorrectly matched: Certified Emissions Reductions (CERs) are issued for emission reductions under the Kyoto Protocol, not the Nagoya Protocol. The Nagoya Protocol focuses on access to genetic resources and fair sharing of benefits, not emission reductions.

Pair 3 is correctly matched: The Clean Development Mechanism (CDM) under the UNFCCC enables developing countries to receive funds from developed nations for adopting technologies that reduce greenhouse gas emissions. The CDM is the main source of income for the UNFCCC Adaptation Fund, which was established to finance adaptation projects and programmes in developing country Parties to the Kyoto Protocol that are particularly vulnerable to the adverse effects of climate change.

Explanation

The Economics of Ecosystems and Biodiversity (TEEB) was launched by Germany and the European Commission in 2007. It is a global effort to raise awareness of the economic advantages of biodiversity. TEEB’s objective is to raise attention to the rising costs associated with biodiversity loss and ecosystem degradation and to bring together experts in science, economics, and policy to facilitate actionable solutions.

Statement 1 is incorrect: It is an international initiative, launched by Germany and the European Commission. The second phase of the TEEB study is hosted by the United Nations Environment Programme (UNEP) with support from a number of other organizations.

Statement 2 is correct: It is an international initiative to draw attention to the global economic benefits of biodiversity. Its principal objective is to mainstream the values of biodiversity and ecosystem services into decision-making at all levels.

Statement 3 is correct: Its objective is to highlight the growing cost of biodiversity loss and ecosystem degradation. It follows a structured approach to valuation that assists decision-mak-ers in recognizing, demonstrating, and capturing the value of ecosystems and biodiversity.

Explanation

Reducing Emissions from Deforestation and Forest Degradation (REDD+) is a mechanism developed by Parties to the UNFCCC. In order to provide incentives for developing countries to cut emissions from forested lands and invest in low-carbon paths, it sets a financial value for the carbon contained in forests. For activities based on results, the developing countries will be compensated. The UN-REDD Programme has identified the following three topics for supporting national REDD+ governance structures:

Country-led multi-stakeholder governance assessments that contribute to the development and implementation of national REDD+ strategies (for tackling forest degradation and biodiversity loss) and nationally owned monitoring frameworks Social standards, including poverty and gender. Land and/or carbon tenure and the role of REDD+ within national land use strategies The REDD+ goes beyond simply deforestation and forest degradation by including the role of conservation, sustainable management of forests and enhancement of forest carbon stocks.

Explanation

Agenda 21 is a comprehensive action plan for sustainable development, adopted at the United Nations Conference on Environment and Development (UNCED), commonly known as the Earth Summit, held in Rio de Janeiro, Brazil, in 1992. The number "21" refers to an agenda for the 21st century. It’s objective is to achieve Global sustainable development.

Statement 1 is correct: Agenda 21 serves as a comprehensive plan of action for sustainbility to be taken globally, nationally, and locally by organizations of the United Nations System, governments, and major groups in every area where humans im-pact the environment.

Statement 2 is incorrect: Agenda 21 is a product of the Earth Summit (UN Conference on Environment and Development) held in Rio de Janeiro, Brazil, in 1992. The World Summit on Sustainable Development (WSSD), held in Johannesburg in 2002, reaffirmed the commitment to Agenda 21 and aimed to assess progress and implement further actions

Explanation

The Globally Important Agricultural Heritage Systems (GIAHS) initiative, led by the Food and Agriculture Organization (FAO), aims to identify and safeguard traditional agricultural systems worldwide. These systems are recognized for their unique landscapes, rich biodiversity, and the traditional knowledge of local communities. Three sites recognised as GI-AHS in India:

Kuttanad Below Sea Level Farming System of Kerala.

Koraput Traditional Agriculture of Odisha.

Pampore Saffron Heritage of Kashmir.

Statement 1 is incorrect: The GIAHS initiative supports the sustainability and viability of traditional agricultural system. However its primary goal is not to introduce modern technology or farming methods to enhance productivity. Instead, it focuses on preserving and promoting traditional practices that have proven sustainable over time.

Statement 2 is correct: The main objective of the GIAHS initiative is to recognize and protect traditional agricultural practices, along with their associated landscapes, biodiversity, and the cultural knowledge of local communities. This approach ensures the conservation of these systems for future generations.

Statement 3 is incorrect: The GIAHS designation does not automatically confer Geographical Indication (GI) status to agricultural products. While both GIAHS and GI aim to recognize and protect unique agricultural practices and products, they are separate initiatives with different objectives and processes. GI is accorded to products from a certain origin (e.g. Hyderabadi Biryani) and not to all traditional agricultural systems.