The New Development Bank (NDB) that was launched by the BRICS countries at the 7th summit in Ufa to provide the much-needed infrastructure funding to the emerging economies formally started its operations on July 21 at its headquarters in Shanghai. China’s Finance Minister Lou Jiwei and NDB President K.V Kamath, veteran Indian banker, attended the opening ceremony.
As per the agreement between the BRICS member countries, Mr Kamath would be the president of the bank for the first five years. “The NDB will supplement the existing international financial system in a healthy way and explore innovations in governance models,” said China’s Finance Minister at a seminar following the ceremony.
The NDB will initially have a start-up capital of USD 50 billion with an equal share of contribution by each member country. It is expected to expand to USD 100 billion in the next couple of years. Each country will have an equal say in the bank’s management irrespective of its economic size.
While congratulating Mr Kamath on the opening of the NDB Bank, the World Bank President Jim Yong Kim said, “We are committed to working closely with the New Development Bank and other multilateral institutions, offering to share our knowledge and to co-finance infrastructure projects. These types of partnerships will be essential to reach our common goals to end extreme poverty by 2030, boost shared prosperity, and to reduce inequalities”.
The NDB was seen by many as a counter to the Bretton Woods institutions like the World Bank. But the Ufa Declaration has empahsised that the NDB will complement existing multilateral financing institutions.
- India Writes Network (www.indiawrites.org) is an emerging think tank and a media-publishing company focused on international affairs & the India Story. A venture of TGII Media Private Limited, a leading media, publishing and consultancy company, IWN has carved a niche for balanced and exhaustive reporting and analysis of international affairs. Eminent personalities, politicians, diplomats, authors, strategy gurus and news-makers have contributed to India Writes Network, as also “India and the World,” a magazine focused on global affairs. The Global Insights India (TGII) is the research arm of India Writes Network. To subscribe to India and the World, write to firstname.lastname@example.org
- Diplomacy2020.11.24India eyes closer ties with Bahrain, UAE, and Seychelles
- China Connect2020.11.23China-India G20 connect: Xi, Modi bat for multilateralism
- Diplomacy2020.11.18Putin calls BRICS nations to join forces for Covid vaccine production
- Diplomacy2020.11.18Xi calls on BRICS to hold aloft banner of multilateralism