New Development Bank (NDB)
( UPSC Prelims)
News Context
● Algeria has joined as the 9th member of the New Development Bank (NDB).
About NDB (HQ: Shanghai, China)
● Established: 2015 by the BRICS nations—Brazil, Russia, India, China, and South Africa.
● Objective: A multilateral development bank aimed at mobilizing resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).
● Members: Includes Brazil, Russia, India, China, South Africa, along with Bangladesh, UAE, Egypt, and Algeria.
○ Membership is open to all United Nations members, encompassing both borrowing and non-borrowing members (as per Article 2 of the NDB).
● Uruguay is a prospective member, having been approved by the NDB’s Board of Governors and will officially join upon depositing its instrument of accession.
● Capital and Shareholding: The initial authorized capital is $100 billion, with the five founding members holding equal shares totaling $50 billion.
● Voting Power: The founding members collectively hold at least 55% of the voting power.
Other Prominent Regional Financial Institutions
● Institution
● Asian Development Bank
● HQ: Manila, Philippines
● Asian Infrastructure Investment Bank
● HQ: Beijing, China
● African Development Bank
● HQ: Abidjan, Côte D'Ivoire
● LoGenesis
● 1966
● 2016
● 1964
● Purpose
● Asian Development Bank: Focuses on social and economic development and regional integration in Asia and the Pacific.
● Asian Infrastructure Investment Bank: Funds sustainable infrastructure and development projects, mainly in Asia but with a global reach.
● African Development Bank: Aims at poverty reduction and socio-economic development throughout Africa.
● Members
● Asian Development Bank: Comprises 69 members (50 from Asia-Pacific, 19 from outside), including India.
● Asian Infrastructure Investment Bank: Has 110 approved members (100 Full + 10 Prospective), with India as a full member.
● African Development Bank: Includes 54 African countries and 27 non-African countries, with India among them.