Q. With reference to 'WaterCredit', consider the following statements :- It puts microfinance tools to work in the water and sanitation sector.
- It is a global initiative launched under the aegis of the World Health Organization and the World Bank.
- It aims to enable the poor people to meet their water needs without depending on subsidies.
Which of the statements given above are correct? (UPSC Prelims 2021)
Answer:
1 and 3 only
Notes: The correct answer is
[C] 1 and 3 only. WaterCredit is a pioneering market-based model designed to address the global water and sanitation crisis through financial inclusion.
- Microfinance Tools (Statement 1 – Correct): WaterCredit applies the principles of microfinance to the Water, Sanitation, and Hygiene (WASH) sector. It provides small loans to individuals or households to help them install household water connections or toilets, shifting the focus from charity to credit-based solutions.
- Origin and Aegis (Statement 2 – Incorrect): WaterCredit is an initiative of Water.org, a global non-profit organization co-founded by Gary White and Matt Damon. It is not an initiative of the World Health Organization (WHO) or the World Bank, although these bodies work toward similar Sustainable Development Goals (SDGs).
- Dependence on Subsidies (Statement 3 – Correct): The primary objective of WaterCredit is to empower poor people to solve their own water and sanitation needs through affordable financing. By providing access to loans, it reduces their reliance on government subsidies or high-interest informal lenders, making the solution more sustainable and scalable.