The New Development Bank (NDB)
Kartavya Desk Staff
Source: IT
Context: The New Development Bank (NDB) — co-founded by BRICS nations in 2015 — marks its 10th anniversary, while Pakistan has formally sought China’s support to join the institution to diversify from IMF and World Bank dependence amid its economic crisis.
About The New Development Bank (NDB):
• What It Is? The NDB is a multilateral development bank established by the BRICS countries — Brazil, Russia, India, China, and South Africa — to fund infrastructure and sustainable development projects in emerging markets and developing economies (EMDCs).
• The NDB is a multilateral development bank established by the BRICS countries — Brazil, Russia, India, China, and South Africa — to fund infrastructure and sustainable development projects in emerging markets and developing economies (EMDCs).
• Established In:
• Treaty Signed: July 2014, Fortaleza, Brazil Came into Force: July 2015
• Treaty Signed: July 2014, Fortaleza, Brazil
• Came into Force: July 2015
• Headquarters: Shanghai, China
• Members:
• Founding Members: Brazil, Russia, India, China, South Africa. New Members: Bangladesh (2021), UAE (2021), Egypt (2023), Algeria (2025). Prospective Members: Uruguay, Uzbekistan, Colombia (awaiting ratification). Authorized Capital: billion (with billion subscribed, equally by the founding members). Each founding member holds equal voting rights, with no veto power — ensuring democratic decision-making.
• Founding Members: Brazil, Russia, India, China, South Africa.
• New Members: Bangladesh (2021), UAE (2021), Egypt (2023), Algeria (2025).
• Prospective Members: Uruguay, Uzbekistan, Colombia (awaiting ratification).
• Authorized Capital: billion (with billion subscribed, equally by the founding members).
• Each founding member holds equal voting rights, with no veto power — ensuring democratic decision-making.
• Objectives and Function:
• Infrastructure Financing: Mobilize long-term resources for roads, energy, ports, and digital infrastructure in BRICS and partner countries. Sustainable Development: Ensure projects align with ESG principles, promoting green energy, climate adaptation, and social inclusion. Reduce Western Dependence: Provide an alternative to IMF and World Bank lending models, emphasizing equity and sovereignty. Innovation in Finance: Issue green bonds (first in 2016 worth RMB 3 billion) and explore local currency lending. Emergency Support: Operated a billion COVID-19 Emergency Assistance Facility (2020) to help member states recover.
• Infrastructure Financing: Mobilize long-term resources for roads, energy, ports, and digital infrastructure in BRICS and partner countries.
• Sustainable Development: Ensure projects align with ESG principles, promoting green energy, climate adaptation, and social inclusion.
• Reduce Western Dependence: Provide an alternative to IMF and World Bank lending models, emphasizing equity and sovereignty.
• Innovation in Finance: Issue green bonds (first in 2016 worth RMB 3 billion) and explore local currency lending.
• Emergency Support: Operated a billion COVID-19 Emergency Assistance Facility (2020) to help member states recover.