New Development Bank (NDB)

New Development Bank Latest News

Pakistan has sought the help of China, which it considers an “iron friend”, to get a membership of the Brics Development Bank.

About New Development Bank 

• The New Development Bank (NDB), formerly known as the BRICS Development Bank, is a multilateral development bank established by Brazil, Russia, India, China, and South Africa (BRICS).
• Objective: NDB aims to mobilize resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies and developing countries.
• The idea of setting up NDB was first conceived in 2012 during the BRICS Summit in New Delhi, India.
• The agreement for establishing the NDB was signed during the BRICS Summit held in Fortaleza on July 15, 2014, and the Bank started operations on July 21, 2015.
• The bank is headquartered in Shanghai, China, with regional offices in South Africa and Brazil.
• Membership in NDB is open to any member of the United Nations. 
• NDB’s key areas of operation include clean energy and energy efficiency; transport infrastructure; water and sanitation; environmental protection; social infrastructure; and digital infrastructure. 
• Capital: The NDB has an initial authorized capital of USD 100 billion and an initial subscribed capital of USD 50 billion, which was equally distributed among the five founding members (Brazil, Russia, India, China, and South Africa). 
• Unlike in the case of the World Bank or ADB, each member in the NDB has an equal voting power.
• Governance Structure:
  • The Bank is governed by a Board of Governors made up of the finance ministers of the five BRICS countries, and a Board of Directors.
  • Both the presidency and vice-presidency of the NDB are rotated among BRICS founding members.

Source: IT

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