Context:
Honduras President recently requested the country’s admission to the BRICS-led New Development Bank (NDB).
Relevance:
GS II: International Relations
Dimensions of the Article:
- About New development bank
- Governance Structure of NDB
- Objectives
About New development bank:
- It is a multilateral development bank jointly founded by the BRICS countries (Brazil, Russia, India, China and South Africa) at the 6th BRICS Summit in Fortaleza, Brazil in 2014.
- It was formed to support infrastructure and sustainable development efforts in BRICS and other underserved, emerging economies for faster development through innovation and cutting-edge technology.
- It is headquartered at Shanghai, China.
- In 2018, the NDB received observer status in the United Nations General Assembly, establishing a firm basis for active and fruitful cooperation with the UN.
Governance Structure of NDB:
Board of Governors:
- The Bank is governed by a Board of Governors comprising the finance ministers of the five BRICS countries (Brazil, Russia, India, China, and South Africa).
Voting Power:
- The voting power within the Board is determined based on the shares held by each country in the bank.
Share Retention:
- While new members have the opportunity to join NDB, the five BRICS countries will collectively maintain a minimum of 55% of the total shares.
Management:
- The NDB’s management includes a presidency that rotates among the BRICS members, ensuring equal representation, and four vice presidents who are selected from the remaining BRICS countries.
Objectives:
- Fostering development of member countries.
- Supporting economic growth.
- Promoting competitiveness and facilitating job creation.
- Building a knowledge sharing platform among developing countries.
Source: The Print
