NDB has approved investments projects worth USD 40 billion covering key areas like clean energy and increase in membership would enlarge such opportunities to other countries.
About NDB (Hq: Shanghai, China)
- Genesis: 2015 by the Brazil, Russia, India, China and South Africa (BRICS) countries.
- Purpose: Multilateral development bank for mobilising resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).
- Members: Brazil, Russia, India, China, South Africa, Bangladesh, UAE, Egypt, Algeria.
- The membership is open to members of the United Nations, including both borrowing and non-borrowing members (Article 2 of the NDB).
- Uruguay is listed as the prospective member (admitted by NDB’s Board of Governors but will officially become a member after depositing its instrument of accession).
- Capital and Shareholding: Out of the initial authorized capital of $100 Billion, all 5 founding members have an equal share totalling $50 Billion.
Contemporary significance of Regional Financial Institutions
- Sustainable and Inclusive Development: E.g., As of 2024, India has around 20 ongoing projects (worth $4.87 billion) supported by NDB, covering transportation, water conservation, etc.
- Bridging Infrastructure and Investment Gaps: Mobilize long-term financing for infrastructure, catalyse private investment, and close funding gaps.
- Promoting Regional Integration and Stability: Facilitate cross-border cooperation. E.g., India being the founding member of NDB and AIIB has strengthened the South-South cooperation.
