New Development Bank is a multilateral financial institution established in 2015 to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies, as well as in developing countries. The functions of NDB include sustainable development, income equality, infrastructure development and many more.
Members of NDB
The bank was founded by five BRICS Countries viz. Brazil, Russia, India, China and South Africa in 2015. The membership is open to any member of the United Nations.
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, thus contributing to collective commitments for achieving the goal of strong, sustainable and balanced
. The first chair of the Board of Governors shall be from Russia. The first chair of the Board of Directors shall be from Brazil. The first President of the Bank shall be from India. The headquarters of the Bank shall be located in Shanghai. The New Development Bank Africa Regional Center shall be established in South Africa concurrently with the headquarters
President of NDB
The NDB’s management includes a presidency which rotates among BRICS members, and four vice presidents who are selected from the remaining BRICS countries. Mr. K.V. Kamath was appointed as first President of NDB.
Capital and Shareholding of NDB
The New Development Bank shall have an initial subscribed capital of US$ 50 billion and an initial authorized capital of US$ 100 billion. The Bank shall have an initial authorized capital of US$ 100 billion. The initial subscribed capital shall be US$ 50 billion, equally shared among founding members. 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. the five BRICS countries will retain a minimum of 55% of total shares
Functions of NDB
The broad objectives and functions of NDB are:
- Fostering development of member countries
- Supporting economic growth
- Promoting competitiveness and facilitating job creation
- Building a knowledge sharing platform among developing countries
The Fourth Annual Meeting of the NDB Board of Governors will be held on April 1-2, 2019 in Cape Town, Republic of South Africa. The theme of the event is “Partnership for Sustainable Development,”
Download this article as PDF
We hope you liked this article on Functions of NDB. Here are some useful articles for you to read next:
Click to go to RBI Grade B Preparation Page