New Development Bank (NDB)

The New Development Bank (NDB) is a multilateral development bank established by the BRICS nations — Brazil, Russia, India, China, and South Africa — with the aim of financing infrastructure and sustainable development projects in emerging economies.

1. Establishment

Proposed in 2012 at the BRICS Summit in New Delhi.

Formally created in 2014 during the 6th BRICS Summit in Fortaleza, Brazil.

Headquarters: Shanghai, China.

First President: K. V. Kamath (India).

Current President (2023 onwards): Dilma Rousseff (former President of Brazil).

2. Purpose

To mobilize resources for infrastructure and sustainable development.

Provide an alternative to Western-dominated institutions like the World Bank and IMF.

Promote South-South cooperation among developing nations.

3. Membership

Core members: the five BRICS countries.

In 2021, NDB admitted new members: Bangladesh, UAE, Egypt, and Uruguay.

Membership is open to other UN member states as well.

4. Capital Structure

Authorized capital: USD 100 billion.

Each founding BRICS country contributed USD 10 billion (paid-in + callable capital).

Equal voting rights for founding members (different from IMF/World Bank where voting is weighted by economic size).

5. Functions

Provides loans, guarantees, equity participation, and technical assistance.

Focus areas:

Infrastructure projects (transport, energy, digital connectivity).

Sustainable development (renewable energy, green projects).

Emergency financial support during crises (like during COVID-19).

6. Key Achievements

Approved billions of dollars in loans to member countries for roads, energy, urban development, and renewable projects.

Issued green bonds to fund eco-friendly initiatives.

Helped countries access funds during the COVID-19 pandemic.

7. Significance

Strengthens financial cooperation among BRICS.

Reduces reliance on Western institutions.

Gives developing nations a greater voice in global financial governance.

Supports the shift towards a multipolar world economy.

Source: https://www.globaltimes.cn/page/202507/1337691.shtml