NDB to assess India projects portfolio next year

Subject: IR

Section: International Organization

Context: NDB to assess impact of $7.5-billion India projects portfolio

More about the news:

The New Development Bank’s Independent Evaluation Office (IEO) is set to conduct an evaluation of its project portfolio in India since its inception in 2015.
With approvals totaling $7.5 billion, of which $4.2 billion has been disbursed, the evaluation aims to assess the impact and effectiveness of these projects.
The IEO plans to develop a country strategy for India, helping identify future engagement priorities, sectors, states, and partner institutions.
The NDB has already funded a range of projects in India, from transport and water sectors to rural roads and ecotourism.
An evaluation report also highlights the positive impact of NDB’s Covid-19 response programs in India, benefiting millions and generating employment opportunities.

What is New Development Bank:

It is a multilateral development bank operated by the BRICS statesi.eBrazil, Russia, India, China and South Africa.
The New Development Bank was agreed to by BRICS leaders at the 5th BRICS summit held in Durban, South Africa in 2013.
It was established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil.
The bank is set up to foster greater financial and development cooperation among the five emerging markets.
In the Fortaleza Declaration, the leaders stressed that the NDB will strengthen cooperation among BRICS and will supplement the efforts of multilateral and regional financial institutions for global development.
The bank is headquartered in Shanghai, China.
Unlike the World Bank, which assigns votes based on capital share, in the New Development Bank each participant country will be assigned one vote, and none of the countries will have veto power.
The first regional office of the NDB was setup in Johannesburg, South Africa. The second regional office was established in 2019 in São Paulo, Brazil, followed by Moscow, Russia.
The Bank has an initial authorized capital of 100 billion dollars and an initial subscribed capital of 50 billion dollars.
Membership in NDB is open to any member of the United Nations.
In 2018, the NDB received observer status in the United Nations General Assembly

What is the Governance Structure of NDB:

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.
Voting power within the Board is based on each country’s shares in the bank.
While new members can join the NDB, the five BRICS countries will retain a minimum of 55% of total shares.
The NDB’s management includes a presidency which rotates among BRICS members, and four vice presidents who are selected from the remaining BRICS countries.
V. Kamath, from India, was the first elected president of the NDB
Egypt became the latest member of NDB.

Fig 1.-Voting Share of NDB