Key Facts About New Development Bank (NDB)
Establishment and Structure
- Founded by: BRICS nations (Brazil, Russia, India, China, South Africa)
- Formation: Agreed at 6th BRICS Summit in Fortaleza, Brazil (2014); fully operational since 2015
- Headquarters: Shanghai, China
- Initial Authorized Capital: USD 100 billion
- Initial Subscribed Capital: USD 50 billion (divided equally among five founders)
Unique Voting System
- Equal voting basis: Each member gets one vote (unlike World Bank which uses capital-share voting)
- No veto power: No single country possesses a veto
- Protected BRICS share: Combined voting share of founding BRICS members can never fall below 55%
Membership Expansion
| Year | Country | Regional Significance |
|---|---|---|
| 2015 | Original 5 (Brazil, Russia, India, China, South Africa) | Founding members |
| 2021 | Bangladesh | South Asia |
| 2021 | United Arab Emirates | West Asia |
| 2023 | Egypt | North Africa |
| 2025 | Algeria | North Africa |
| 2026 | Uzbekistan | Central Asia (First) |
Pending Members: Uruguay, Colombia, Ethiopia (admitted but instruments of accession pending)
Global Representation
- 42% of world population
- 27% of global surface area
- Over 20% of global GDP
Objectives
- Mobilize resources for infrastructure projects
- Support sustainable development in BRICS and Emerging Market Economies and Developing Countries (EMDCs)
- Promote local currency financing
- Reduce dependence on US dollar
Significance for India
- India, as a founding member of both BRICS and NDB, views this expansion favorably
- Aligns with India's "Connect Central Asia Policy"
- Strengthens India's strategic outreach in Central Asia
- Reinforces BRICS-led efforts for Global South representation
Constitutional/Policy Context
- India's engagement with multilateral development banks reflects its broader foreign policy objectives
- NDB represents an alternative to Western-dominated financial institutions
- Supports the concept of 'Global South' solidarity in international finance