NEW DEVELOPMENT BANK

NEW DEVELOPMENT BANK

Subject : International Organisations

Context : Recently, the Union Finance Minister has urged the New Development Bank (NDB) to consider working closely with India’s new development financing institution for funding infrastructure.

Concept :

New Development Bank (NDB)

• It was proposed at the fourth BRICS Summit in New Delhi (2012) by the leaders of Brazil, Russia, India, China and South Africa.
• It is established to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies, as well as in developing countries.
• During the sixth BRICS Summit in Fortaleza (2014), the leaders signed the Agreement establishing the New Development Bank (NDB).
• It also provides technical assistance for projects to be supported by the NDB and engage in information, cultural and personnel exchanges with the purpose of contributing to the achievement of environmental and social sustainability.
• In 2018, the New Development Bank received observer status in the UN General Assembly, establishing a firm basis for active and fruitful cooperation with the United Nations.
• It was formerly referred to as BRICS Development Bank and is a multi-lateral development bank.
• Its headquarters is in Shanghai, China and the first regional office of the NDB is in Johannesburg, South Africa.
• The Bank shall have an initial authorized capital of US$ 100 billion and the initial subscribed capital shall be US$ 50 billion, equally shared among founding members.