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New Development Bank

Current Affairs

Context

India has welcomed Egypt as the fourth new member of BRICS New Development Bank.

New development bank is a multilateral development bank jointly founded by the BRICS countries at the 6th BRICS Summit in Fortaleza, Brazil in 2014.

Objective

To support infrastructure and sustainable development efforts in BRICS and other underserved, emerging economies for faster development through innovation and cutting-edge technology.

He adquartered in Shanghai, China, the regional office of the NDB is in Johannesburg, South Africa., São Paulo, Brazil, Moscow, Russia.

In 2018, the NDB received observer status in the United Nations General Assembly

In September 2021 Bangladesh, UAE, and Uruguay has  joined NDB

Voting

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.

Contingent Reserve Arrangement

BRICS nations signed CRA in 2014. It aims to provide short-term liquidity support to the members to help mitigate the BOP crisis situation and further strengthen financial stability.

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