NDB (What is it?)
- The New Development Bank (NDB) is a multilateral development bank established by BRICS.
- It was established in 2015 and is headquartered in Shanghai, China.
- Its primary objective is to finance infrastructure and sustainable development projects in BRICS and other emerging and developing economies.
Origin & Founding Members
The NDB was established by the five original BRICS countries:
- Brazil
- Russia
- India
- China
- South Africa
Key Features (How does it work?)
- Authorised Capital: $100 billion.
- Founding members: Initially held equal shares and equal voting rights.
- Membership: Subsequently expanded beyond the original five members.
- Headquarters: Shanghai, China.
- President: The presidency rotates among the founding members.
What does NDB Finance?
- Transport Infrastructure: Finances roads, railways, metros and other connectivity projects to improve mobility and economic integration.
- Renewable Energy: Supports solar, wind and other clean-energy projects to accelerate the transition towards sustainable energy.
- Water & Sanitation: Funds safe water supply, wastewater management and sanitation infrastructure to improve public health.
- Urban Development: Supports sustainable urban infrastructure, including public transport, housing and essential municipal services.
- Climate Projects: Finances projects for climate mitigation, adaptation and resilience against environmental risks.
- Sustainable Development: Supports infrastructure projects that promote inclusive, resilient and environmentally sustainable economic growth.
India & NDB
- India is a founding member of NDB.
- NDB has financed Indian infrastructure projects, including metro systems and transport infrastructure.
- Greater NDB financing can support India’s infrastructure and sustainable-development objectives.
NDB & Global South
- NDB aims to expand development finance beyond its founding members.
- Its significance lies in providing an alternative source of infrastructure finance for emerging and developing economies.
AIIB vs NDB
| Feature | AIIB | NDB |
| Established | 2015 | 2015 |
| Origin | Multilateral initiative | BRICS initiative |
| HQ | Beijing | Shanghai |
| Original core | Asian infrastructure | BRICS + developing economies |
| Authorised capital | $100 bn | $100 bn |
| India | Founding member | Founding member |
| China | Largest shareholder | Founding member |
| Focus | Infrastructure & sustainable development | Infrastructure & sustainable development |
| Key feature | Broad/global membership | Local-currency financing |
Conclusion
NDB represents BRICS’ effort to strengthen development finance for emerging economies. By expanding its capital base, membership and local-currency lending, it can become a stronger pillar of Global South cooperation and financial multipolarity.
| This Concept has been Elaborately Discussed in the following Article: BRICS & New Development Bank (NDB) |