The BRICS nations, Brazil, Russia, India, China, and South Africa, held their 4th summit in 2012 in Delhi, India. One of the main themes of this meeting was the creation of a new development bank that would help promote economic growth across BRICS nations and beyond. The proposal was originally put forward by India, and it garnered support from other BRICS members.
Two years later, during the 6th summit in Brazil, agreements were formally signed to establish the BRICS Development Bank. The bank was later renamed as The New Development Bank (NDB). It is governed by a Board of Governors and a Board of Directors, which are overseen by the president and vice president of the bank. The bank was forged with an initial capital of US$50 billion and a further authorized capital of US$100 billion.
The main objective of the bank is to support economic growth across BRICS nations and beyond. It aims to promote sustainable infrastructure projects through global partnership, build a responsible and sustainable portfolio for the future of these countries and help maintain financial stability across the globe. The NDB is a long-term financing institution, which aims to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies.
Currently, the bank is managing investments across all BRICS nations, ranging from urban infrastructure programs to water and sanitation efficiency projects, ecotourism development projects, locomotive fleet renewal programs, to the construction of airports, roads, and renewable energy facilities. The bank has a strong focus on sustainable development, and it is working towards achieving the United Nations’ Sustainable Development Goals.
The NDB has been making significant strides since its inception. With the active role the New Development Bank plays in some of the fastest-growing economies, it is set to play even a bigger role in the future, take center stage on the global finance markets and become a pillar of stability as a shining beacon of BRICS and the new unipolar world.
