UPSC Prelims 2016 Question:

Consider the following statements:

1. New Development Bank has been set up by APEC. 
2. The headquarters of New Development Bank is in Shanghai.
   
   

Which of the statements given above is/are correct?

Explanation: 

• The idea of setting up NDB was first conceived in 2012 during BRICS Summit in New Delhi, India. After a series of negotiations, New Development Bank (NDB) is a multilateral development bank established by BRICS (Brazil, Russia, India, China and South Africa) countries in July 2015. These five countries have a combined share of 24% of global GDP. So, statement 1 is not correct.
  
  

• NDB aims to mobilize resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies and developing countries. 
• The Bank is headquartered in Shanghai, China with regional offices in South Africa and Brazil. Mr. K.V. Kamath from India was the first President of the NDB (2015-2020). So, statement 2 is correct.
  
  
• Unlike the World Bank, which assigns votes based on capital share, in the New Development Bank each participant country will be assigned equal vote rights irrespective of the capital share or countries GDP.
  
  

Therefore, option (2) is the correct answer.

Relevance: The New Development Bank (NDB) was established by the Governments of BRICS countries, with the agreement creating the bank entering into force in July 2015.

Subject: Economics | Economic Organisations and Conventions