New Development Bank
- It is a multilateral development bank jointly founded by the BRICS countries (Brazil, Russia, India, China and South Africa).
- It was established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil.
- It was formed to support infrastructure and sustainable development efforts in BRICS and other underserved, emerging economies for faster development through innovation and cutting-edge technology.
- Headquartered at Shanghai, China.
- In 2018, the NDB received observer status in the United Nations General Assembly, establishing a firm basis for active and fruitful cooperation with the UN.
Voting:
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.
Objectives
The bank aims to contribute to the development plans established nationally through projects that are socially, environmentally, and economically sustainable. Taking this into account, the main objectives of the NDB can be summarized as follows
- Promote infrastructure and sustainable development projects with a significant development impact in member countries.
- Establish an extensive network of global partnerships with other multilateral development institutions and national development banks.
- Build a balanced project portfolio giving proper respect to their geographic location, financing requirements and other factors.
Important for Prelims:
When was NDB established?
NDB- members and voting powers.
Where it can invest?
Fortaleza declaration is related to?
NDB vs World Bank vs AIIB.
Which are the NDB funded projects in India?
Important for Mains:
Discuss the objectives and significance of the New Development Bank.
