The New Development Bank (NDB) is a multilateral development bank established by the BRICS countries, namely Brazil, Russia, India, China, and South Africa. The NDB aims to support public or private projects through loans, guarantees, equity participation, and other financial instruments. In July 2015, the Agreement on the New Development Bank entered into force with the official declaration of all five states that have signed it. In this essay, we will explore the NDB and its recent appointment of former Brazilian President Dilma Rousseff as its head.
About NDB:
The NDB was formerly referred to as the BRICS Development Bank. It is a multilateral development bank that aims to fund infrastructure and sustainable development projects in emerging economies. The bank is headquartered in Shanghai, China, and has regional offices in Johannesburg, South Africa, São Paulo, Brazil, GIFT City, India, and Moscow, Russia.
Purpose:
The primary purpose of the NDB is to support public or private projects through loans, guarantees, equity participation, and other financial instruments. The bank aims to promote sustainable development and infrastructure projects in emerging economies. The NDB also cooperates with international organizations and other financial entities, providing technical assistance for projects supported by the bank.
Corpus:
The NDB has an initial authorized capital of $100 billion, divided into 1 million shares with a par value of $100,000 each. The initial subscribed capital of the bank was equally distributed among the founding members, namely Brazil, Russia, India, China, and South Africa.
Voting Powers:
Each member of the NDB has one vote, and no member has veto powers. This ensures that all members have an equal say in the decision-making process of the bank.
Main Organs of the Bank:
The NDB has three main organs, namely the Board of Governors, the Board of Directors, and the President and Vice-Presidents. The Board of Governors is the highest decision-making body of the bank and is composed of one governor and one alternate governor from each member state. The Board of Directors is responsible for the general operations of the bank, while the President and Vice-Presidents are responsible for managing the day-to-day operations.
President and Vice President:
The NDB President is elected on a rotational basis from one of the founding members. There are four Vice Presidents from each of the other four founding members. K. V. Kamath, from India, was the first elected president of the NDB. In March 2023, former Brazilian President Dilma Rousseff was unanimously elected as the head of the NDB.
Dilma Rousseff’s appointment as head of NDB:
On March 22, 2023, the NDB announced that Dilma Rousseff had been unanimously elected as the head of the bank. Rousseff is the first woman to hold the position, and her appointment comes at a crucial time for the NDB as it aims to expand its operations and financing in emerging economies. Rousseff has a wealth of experience in public policy, having served as the Minister of Energy and Chief of Staff to former Brazilian President Luiz Inácio Lula da Silva before becoming President herself in 2011.
Rousseff’s appointment has been welcomed by many, including Brazilian President Jair Bolsonaro, who praised her appointment as a “positive development.” Rousseff’s experience and expertise in public policy and sustainable development will be crucial in the NDB’s efforts to promote sustainable development in emerging economies.
Why In News
Former Brazilian President Dilma Rousseff has made history by becoming the first female head of the New Development Bank (NDB). Her unanimous appointment is a significant step towards gender equality in the male-dominated world of international finance.
MCQs on The Purpose of the New Development Bank (NDB)
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What is the New Development Bank (NDB)?
A. A multilateral development bank established by the BRICS countries.
B. A nonprofit organization dedicated to preserving rainforests.
C. A global investment firm specializing in renewable energy projects.
D. A research institute focused on sustainable development.
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What is the purpose of the NDB?
A. To support public or private projects through loans, guarantees, equity participation, and other financial instruments.
B. To fund research on climate change and biodiversity conservation.
C. To provide scholarships for students from developing countries.
D. To promote international trade between the BRICS countries.
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Where is the headquarters of the NDB?
A. Johannesburg, South Africa
B. São Paulo, Brazil
C. GIFT City, India
D. Shanghai, China
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Who is the first elected president of the NDB?
A. K. V. Kamath
B. Dilma Rousseff
C. Vladimir Putin
D. Xi Jinping
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