New Development Bank (NDB)
Kartavya Desk Staff
Source: LM
Context: Algeria has officially joined the New Development Bank (NDB), becoming a full member after submitting its instrument of accession on May 19, 2025.
About New Development Bank (NDB):
• What is NDB?
• A multilateral development bank established by BRICS nations to mobilise funds for infrastructure and sustainable development. Functions as an alternative to Western-dominated institutions like the World Bank and IMF.
• A multilateral development bank established by BRICS nations to mobilise funds for infrastructure and sustainable development.
• Functions as an alternative to Western-dominated institutions like the World Bank and IMF.
• Established: July 21, 2015 (Agreement signed on July 15, 2014 at BRICS Fortaleza Summit).
• Headquarters: Shanghai, China
• Regional Offices: South Africa and Brazil
• Membership:
• Founding Members: Brazil, Russia, India, China, South Africa (BRICS). New Members (expanding base): Bangladesh, UAE, Egypt, Uruguay, and Algeria (2025). Membership is open to all UN member states, provided BRICS retain 55% minimum shareholding.
• Founding Members: Brazil, Russia, India, China, South Africa (BRICS).
• New Members (expanding base): Bangladesh, UAE, Egypt, Uruguay, and Algeria (2025).
• Membership is open to all UN member states, provided BRICS retain 55% minimum shareholding.
• Objectives: Mobilize resources for infrastructure and sustainable development projects in BRICS and emerging economies. Complement efforts of existing global and regional financial institutions. Support projects in areas like clean energy, transport, urban development, and social infrastructure.
• Mobilize resources for infrastructure and sustainable development projects in BRICS and emerging economies.
• Complement efforts of existing global and regional financial institutions.
• Support projects in areas like clean energy, transport, urban development, and social infrastructure.
• NDB Governance Structure:
• Board of Governors: Comprises Finance Ministers of BRICS nations. Board of Directors: Oversees strategic decision-making. Presidency: Rotates among BRICS and currently held by Dilma Rousseff (Brazil). Voting Power: Based on equity contribution and BRICS collectively hold controlling stake. Capital Structure: Initial authorized capital: USD 100 billion Initial subscribed capital: USD 50 billion
• Board of Governors: Comprises Finance Ministers of BRICS nations.
• Board of Directors: Oversees strategic decision-making.
• Presidency: Rotates among BRICS and currently held by Dilma Rousseff (Brazil).
• Voting Power: Based on equity contribution and BRICS collectively hold controlling stake.
• Capital Structure: Initial authorized capital: USD 100 billion Initial subscribed capital: USD 50 billion
• Initial authorized capital: USD 100 billion
• Initial subscribed capital: USD 50 billion
• Functions & Features:
• Core Objective: Fund infrastructure, clean energy, water, sanitation, agriculture, public health, education, and sustainable development. Performance: Over 120 projects worth $40+ billion approved globally (as of 2025). India has received funding for 18 projects worth USD 6.9 billion. Global Ratings: ‘AA+’ by S&P and Fitch ‘AAA’ by JCR and ACRA Emergency Response: Provided COVID-19 assistance under its Emergency Assistance Facility.
• Core Objective: Fund infrastructure, clean energy, water, sanitation, agriculture, public health, education, and sustainable development.
• Performance: Over 120 projects worth $40+ billion approved globally (as of 2025). India has received funding for 18 projects worth USD 6.9 billion.
• Global Ratings: ‘AA+’ by S&P and Fitch ‘AAA’ by JCR and ACRA
• ‘AA+’ by S&P and Fitch
• ‘AAA’ by JCR and ACRA
• Emergency Response: Provided COVID-19 assistance under its Emergency Assistance Facility.