BRICS New Development Bank admits Bangladesh

Context: Recently, National Development Bank has approved for Bangladesh to become a member of a premier development institution for emerging market economies towards achieving the goal focusing the development agenda of the country. 
Key Points

• As a part of an extensive membership expansion program by the New Development Bank (NBD), the BRICS group of nations has admitted Uruguay, United Arab Emirates (UAE), and Bangladesh in its first batch of new members.
• NDB Board of Governors initiated the negotiation to expand its membership in 2020. 
• Since the beginning of its operations, NDB has approved about 80 projects totalling a portfolio of USD 30 billion.
• Projects in areas such as transport, water and sanitation, clean energy, digital infrastructure, social infrastructure and urban development are within the scope of the Bank.
• The new members will "add value" and enable New Development Bank (NBD) "to position itself as the premier development institution for emerging economies.
• They also foster their cooperation in infrastructure and sustainable development.

About National Development Bank

• The NDB is a multilateral financial institution established by the BRICS countries, namely, Brazil, Russia, India, China and South Africa.
• Founded in: Formerly known as BRICS Development Bank, NDB was founded in 2014.
• Headquarter: It is headquartered in Shanghai, China. There are regional offices in all other member countries except in India.
• The idea behind the NDB was mooted by India at the 4th BRICS Summit in New Delhi in 2012.
• The formation treaty was signed in 2014 in the sixth BRICS Summit in Fortaleza, Brazil.
• The Fortaleza Declaration stated that the NDB would strengthen cooperation among the BRICS members.
• Purpose: To fund sustainable development projects and infrastructure projects in the BRICS countries and other developing countries and emerging markets.
• The NDB is projected as a developmental financial institution that can complement western dominated global financial institutions (such as the World Bank and the International Monetary Fund), rather than as a challenge to them.
• In 2018, the NDB achieved ‘Observer’ status at the United Nations General Assembly.

To fulfill its purpose, the Bank supports public or private projects through

• Loans 
• Guarantees
• Equity participation

Other financial instruments

• Since its establishment six years ago, NDB has approved about 80 projects in all of its member countries, totalling a portfolio of US$ 30 billion.
• Projects in areas such as transport, water and sanitation, clean energy, digital infrastructure, social infrastructure and urban development are within the scope of the Bank.

Objectives

• Fostering development of member countries
• Supporting economic growth
• Promoting competitiveness and facilitating job creation
• Building a knowledge sharing platform among developing countries
• Contributing to the attainment of social and environmental sustainability