New Development Bank (NDB)

• During the sixth BRICS Summit in Fortaleza (2014), the leaders signed the Agreement establishing the New Development Bank (NDB).
• NDB strengthens 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 growth.
• It is a multilateral development bank established by Brazil, Russia, India, China, and South Africa with the objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the efforts of multilateral and regional financial institutions toward global growth and development.
• The Bank also provides technical assistance for projects to be supported by the NDB and engage in information, cultural and personnel exchanges to contribute to the achievement of environmental and social sustainability.

Main Objectives of NDB

• Fostering the development of member countries
• Supporting economic growth
• Promoting competitiveness and facilitating job creation
• Building a knowledge-sharing platform among developing countries
• To fulfill its purpose, the Bank will support public or private projects through loans, guarantees, equity participation, and other financial instruments.

Shares Distribution and Voting Powers

• Authorized and Subscribed Capital
  • It has an initial subscribed capital of US$ 50 billion and an initial authorized capital of US$ 100 billion.
  • The initial subscribed capital shall be equally distributed amongst the founding members.
  • The voting power of each member shall equal its subscribed shares in the capital stock of the Bank. In InNew Development Bank, each participant country will be assigned one vote and none of the countries will have veto power.
  • Each member shall subscribe to shares of the capital stock of the Bank.
  • Shares of stock initially subscribed by founding members shall be issued at par. Other shares shall be issued at par unless the Board of Governors decides in special circumstances to issue them on other terms.
  • No increase in the subscription of any member to the capital stock shall become effective, and any right to subscribe thereto is hereby waived, which would have the effect of:
  • Reducing the voting power of the founding members below 55 (fifty-five) percent of the total voting power;
  • Increasing the voting power of the non-borrowing member countries above 20 (twenty) percent of the total voting power;
  • Increasing the voting power of a non-founding member country above 7 (seven) percent of the total voting power.

In News:

• India virtually hosted the 7th meeting of the BRICS Astronomy Working Group (BAWG) under the Science, Technology, and Innovation track of the BRICS 2021.
• The 13th BRICS Summit is going to be held under India’s Chairship in 2021. As BRICS celebrates its 15th anniversary this year. The theme for India’s Chairship is ‘BRICS @ 15: Intra-BRICS Cooperation for Continuity, Consolidation, and Consensus’. India will work on specific deliverables across all three pillars of intra-BRICS cooperation in 2021.
• Political and Security: To enhance cooperation and dialogue on issues of global and regional security, developments in the global political space for peace, security, and prosperity. Our priorities under this pillar are:
  • Reform of the Multilateral System
  • Counter-Terrorism Cooperation
• Economic and Financial: To promote economic growth and development for mutual prosperity through the expansion of intra-BRICS cooperation in sectors such as trade, agriculture, infrastructure, small and medium enterprises, energy and finance & banking. Recognizing the advantages of using technological and digital solutions for the achievement of Sustainable Development Goals in BRICS countries with a special focus on:
  • Implementation of the BRICS Economic Partnership Strategy 2020-25.
  • Operationalization of the BRICS Agriculture Research Platform.
  • Cooperation on Disaster Resilience.
  • Innovation Cooperation.
  • Digital Health and Traditional Medicine.
• Cultural and People to People: To qualitatively enrich and enhance intra-BRICS people to people contacts in cultural, academic, youth, sports, business, through regular exchanges