New Development Bank of BRICS in GIFT City
Recently a ‘Regional Office’ has been set up in Gujarat province of India by the New Development Bank (NDB) to finance and monitor ongoing infrastructure projects in India and Bangladesh.
New Development Bank (NDB)
- It is a multilateral development bank run by BRICS (Brazil, Russia, India, China and South Africa – BRICS) countries.
- In 2013, during the 5th BRICS Summit held in Durban, South Africa, BRICS leaders agreed to set up a ‘New Development Bank’.
- It was established in the year 2014 during the 6th BRICS summit held in Fortaleza, Brazil.
- The purpose of setting up this bank is to promote financial and development cooperation in five emerging markets.
- It’s headquarter is located in Shanghai, China.
- The ‘Observer’ status was given to the ‘New Development Bank’ at the United Nations General Assembly in the year 2018 on building a strong foundation for active and productive cooperation with the United Nations.
Unlike the World Bank, in which the ‘vote’ is determined on the basis of capital share, in the ‘New Development Bank’ each participant country is assigned a ‘vote’, and no country has ‘veto power’.
Roles and Functions:
The New Development Bank mobilizes resources for infrastructure and sustainable development projects in BRICS countries, other emerging economies and developing countries to support the ongoing efforts of multilateral and regional financial institutions for global growth and development.
Source – The Hindu