General Comprehension (UPSC) (Part-III)

According to the passage, an oil company can make greater profits, if a transparent formula for petrol pricing is announced every fortnight or month, by :

1. promoting its sales.

2. undertaking innovation.

3. cutting costs.

4. selling its equity shares at higher prices.

Which of the statements given above is/are correct?

It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as a first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and the y. The rule has to be worked out to make sure that the oil-marketing companies can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual regulations of anti-trust and other competition laws).

According to the passage, the adverse impact of climate change on an ecosystem can be a :

1. permanent disappearance of some of its flora and fauna.

2. permanent disappearance of ecosystem itself.

Which of the statements given above is/are correct?

The Himalayan ecosystem is highly vulnerable to damage, both  due to geological reasons and on account of the stress caused by  increased pressure of population, exploitation of natural resources  and other related challenges. These aspects may be exacerbated due  to the impact of climate change. It is possible that climate change  may adversely impact the Himalayan ecosystem through increased  temperature, altered precipitation patterns, episodes of drought and  biotic influences. This would not only impact the very sustenance  of the indigenous communities in uplands but also the life of  downstream dwellers across the country and beyond. Therefore,  there is an urgent need for giving special attention to sustain the  Himalayan ecosystem. This would require conscious efforts for  conserving all the representative systems. Further, it needs to be  emphasized that the endemics with restricted distribution, and most  often with specialized habitat requirements, are among the most vulnerable elements. In this respect the Himalayan biodiversity hotspot, with rich endemic diversity, is vulnerable to climate change.

The threats include possible loss of genetic resources and species, habitats and concomitantly a decrease in ecosystem services. Therefore, conservation of endemic elements in representative ecosystems/habitats assumes a great significance while drawing conservation plans for the region.

Towards achieving the above, we will have to shift toward contemporary conservation approaches, which include a paradigm of landscape level interconnectivity between protected area systems. The concept advocates a shift from the species-habitat focus to an inclusive focus on expanding the biogeographic range so that natural adjustments to climate change can proceed without being restrictive.

The Himalayan ecosystem is highly vulnerable to damage, both  due to geological reasons and on account of the stress caused by  increased pressure of population, exploitation of natural resources  and other related challenges. These aspects may be exacerbated due  to the impact of climate change. It is possible that climate change  may adversely impact the Himalayan ecosystem through increased  temperature, altered precipitation patterns, episodes of drought and  biotic influences. This would not only impact the very sustenance  of the indigenous communities in uplands but also the life of  downstream dwellers across the country and beyond. Therefore,  there is an urgent need for giving special attention to sustain the  Himalayan ecosystem. This would require conscious efforts for  conserving all the representative systems. Further, it needs to be  emphasized that the endemics with restricted distribution, and most  often with specialized habitat requirements, are among the most vulnerable elements. In this respect the Himalayan biodiversity hotspot, with rich endemic diversity, is vulnerable to climate change.

The threats include possible loss of genetic resources and species, habitats and concomitantly a decrease in ecosystem services. Therefore, conservation of endemic elements in representative ecosystems/habitats assumes a great significance while drawing conservation plans for the region.

Towards achieving the above, we will have to shift toward contemporary conservation approaches, which include a paradigm of landscape level interconnectivity between protected area systems. The concept advocates a shift from the species-habitat focus to an inclusive focus on expanding the biogeographic range so that natural adjustments to climate change can proceed without being restrictive.

The Himalayan ecosystem is highly vulnerable to damage, both  due to geological reasons and on account of the stress caused by  increased pressure of population, exploitation of natural resources  and other related challenges. These aspects may be exacerbated due  to the impact of climate change. It is possible that climate change  may adversely impact the Himalayan ecosystem through increased  temperature, altered precipitation patterns, episodes of drought and  biotic influences. This would not only impact the very sustenance  of the indigenous communities in uplands but also the life of  downstream dwellers across the country and beyond. Therefore,  there is an urgent need for giving special attention to sustain the  Himalayan ecosystem. This would require conscious efforts for  conserving all the representative systems. Further, it needs to be  emphasized that the endemics with restricted distribution, and most  often with specialized habitat requirements, are among the most vulnerable elements. In this respect the Himalayan biodiversity hotspot, with rich endemic diversity, is vulnerable to climate change.

The threats include possible loss of genetic resources and species, habitats and concomitantly a decrease in ecosystem services. Therefore, conservation of endemic elements in representative ecosystems/habitats assumes a great significance while drawing conservation plans for the region.

Towards achieving the above, we will have to shift toward contemporary conservation approaches, which include a paradigm of landscape level interconnectivity between protected area systems. The concept advocates a shift from the species-habitat focus to an inclusive focus on expanding the biogeographic range so that natural adjustments to climate change can proceed without being restrictive.

1. To maintain natural ecosystems, exploitation of natural resources should be completely avoided.

2. Not only anthropogenic but also natural reasons can adversely affect ecosystems.

3. Loss of endemic diversity leads to the extinction of ecosystems.

Which of the above assumptions is/are correct?

The Himalayan ecosystem is highly vulnerable to damage, both  due to geological reasons and on account of the stress caused by  increased pressure of population, exploitation of natural resources  and other related challenges. These aspects may be exacerbated due  to the impact of climate change. It is possible that climate change  may adversely impact the Himalayan ecosystem through increased  temperature, altered precipitation patterns, episodes of drought and  biotic influences. This would not only impact the very sustenance  of the indigenous communities in uplands but also the life of  downstream dwellers across the country and beyond. Therefore,  there is an urgent need for giving special attention to sustain the  Himalayan ecosystem. This would require conscious efforts for  conserving all the representative systems. Further, it needs to be  emphasized that the endemics with restricted distribution, and most  often with specialized habitat requirements, are among the most vulnerable elements. In this respect the Himalayan biodiversity hotspot, with rich endemic diversity, is vulnerable to climate change.

The threats include possible loss of genetic resources and species, habitats and concomitantly a decrease in ecosystem services. Therefore, conservation of endemic elements in representative ecosystems/habitats assumes a great significance while drawing conservation plans for the region.

Towards achieving the above, we will have to shift toward contemporary conservation approaches, which include a paradigm of landscape level interconnectivity between protected area systems. The concept advocates a shift from the species-habitat focus to an inclusive focus on expanding the biogeographic range so that natural adjustments to climate change can proceed without being restrictive.

It is often forgotten that globalization is not only about policies on international economic relationships and transactions, but has equally to do with domestic policies of a nation. Policy changes necessitated by meeting the internationally set conditions (by WTO etc.) of free trade and investment flows obviously affect domestic producers and investors. But the basic philosophy underlying globalization emphasizes absolute freedom to markets to determine prices and production and distribution patterns, and view government interventions as processes that create distortions and bring in inefficiency. Thus, public enterprises have to be privatized through disinvestments and sales; sectors and activities hitherto reserved for the public sector have to be opened to the private sector. This logic extends to the social services like education and health. Any restrictions on the adjustments in workforce by way of retrenchment of workers should also be removed and exit should be made easier by removing any restrictions on closures. Employment and wages should be governed by free play of market forces, as any measure to regulate them can discourage investment and also create inefficiency in production. Above all, in line with the overall philosophy of reduction in the role of the State, fiscal reforms should be undertaken to have generally low levels of taxation and government expenditure should be kept to the minimum to abide by the principle of fiscal prudence. All these are policy actions on the domestic front and are not directly related to the core items of the globalization agenda, namely free international flow of goods and finance.

It is often forgotten that globalization is not only about policies on international economic relationships and transactions, but has equally to do with domestic policies of a nation. Policy changes necessitated by meeting the internationally set conditions (by WTO etc.) of free trade and investment flows obviously affect domestic producers and investors. But the basic philosophy underlying globalization emphasizes absolute freedom to markets to determine prices and production and distribution patterns, and view government interventions as processes that create distortions and bring in inefficiency. Thus, public enterprises have to be privatized through disinvestments and sales; sectors and activities hitherto reserved for the public sector have to be opened to the private sector. This logic extends to the social services like education and health. Any restrictions on the adjustments in workforce by way of retrenchment of workers should also be removed and exit should be made easier by removing any restrictions on closures. Employment and wages should be governed by free play of market forces, as any measure to regulate them can discourage investment and also create inefficiency in production. Above all, in line with the overall philosophy of reduction in the role of the State, fiscal reforms should be undertaken to have generally low levels of taxation and government expenditure should be kept to the minimum to abide by the principle of fiscal prudence. All these are policy actions on the domestic front and are not directly related to the core items of the globalization agenda, namely free international flow of goods and finance.

1. Privatization of public enterprises

2. Expansionary policy of public expenditure

3. Free play of market forces to determine wages and employment

4. Privatization of social services like education and health

Select the correct answer using the code given below:

It is often forgotten that globalization is not only about policies on international economic relationships and transactions, but has equally to do with domestic policies of a nation. Policy changes necessitated by meeting the internationally set conditions (by WTO etc.) of free trade and investment flows obviously affect domestic producers and investors. But the basic philosophy underlying globalization emphasizes absolute freedom to markets to determine prices and production and distribution patterns, and view government interventions as processes that create distortions and bring in inefficiency. Thus, public enterprises have to be privatized through disinvestments and sales; sectors and activities hitherto reserved for the public sector have to be opened to the private sector. This logic extends to the social services like education and health. Any restrictions on the adjustments in workforce by way of retrenchment of workers should also be removed and exit should be made easier by removing any restrictions on closures. Employment and wages should be governed by free play of market forces, as any measure to regulate them can discourage investment and also create inefficiency in production. Above all, in line with the overall philosophy of reduction in the role of the State, fiscal reforms should be undertaken to have generally low levels of taxation and government expenditure should be kept to the minimum to abide by the principle of fiscal prudence. All these are policy actions on the domestic front and are not directly related to the core items of the globalization agenda, namely free international flow of goods and finance.

It is often forgotten that globalization is not only about policies on international economic relationships and transactions, but has equally to do with domestic policies of a nation. Policy changes necessitated by meeting the internationally set conditions (by WTO etc.) of free trade and investment flows obviously affect domestic producers and investors. But the basic philosophy underlying globalization emphasizes absolute freedom to markets to determine prices and production and distribution patterns, and view government interventions as processes that create distortions and bring in inefficiency. Thus, public enterprises have to be privatized through disinvestments and sales; sectors and activities hitherto reserved for the public sector have to be opened to the private sector. This logic extends to the social services like education and health. Any restrictions on the adjustments in workforce by way of retrenchment of workers should also be removed and exit should be made easier by removing any restrictions on closures. Employment and wages should be governed by free play of market forces, as any measure to regulate them can discourage investment and also create inefficiency in production. Above all, in line with the overall philosophy of reduction in the role of the State, fiscal reforms should be undertaken to have generally low levels of taxation and government expenditure should be kept to the minimum to abide by the principle of fiscal prudence. All these are policy actions on the domestic front and are not directly related to the core items of the globalization agenda, namely free international flow of goods and finance.

The richer States have a responsibility to cut down carbon emissions and promote clean energy investments. These are the States that got electricity, grew faster and now have high per capita income, making them capable of sharing India's burden of becoming eco-friendly. Delhi, for example, can help by generating its own clean electricity using solar rooftop panels or even help poor States finance their clean energy projects. It is no secret that State Electricity Boards, which control 95% of the distribution network, are neck-deep in losses. These losses further discourage State utilities from adopting renewable energy as it is more expensive than fossil fuels.