Published on: September 14, 2021
What is in news : BRICS Bank admits UAE, Bangladesh, Uruguay as new members
- Multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa).
- Was agreed to by BRICS leaders at the 5th BRICS summit held in Durban, South Africa in 2013.
- Established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil.
- Set up to foster greater financial and development cooperation among the five emerging markets.
- 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.
- Will be headquartered in Shanghai, China.
- Unlike the World Bank, which assigns votes based on capital share, in the New Development Bank each participant country will be assigned one vote, and none of the countries will have veto power.
- Roles and functions: The New Development Bank will mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement existing efforts of multilateral and regional financial institutions for global growth and development.
- Membership expansion: NDB started it membership expansion and started formal negotiations with prospective members in 2020. Admission of the UAE, Uruguay and Bangladesh as Bank’s first new member countries, was approved after a round of successful negotiations.