7th Annual Meeting of NDB Flashcards
WHY IN NEWS?
On May 19, 2022, the New Development Bank Seventh Annual Meeting of the Board of Governors was held virtually. The theme of the Seventh Annual Meeting was “NDB: Optimising Development Impact.”
The Annual Meeting was hosted by India and presided over by Mrs. Nirmala Sitharaman, Minister of Finance of the Republic of India, Chairperson of the NDB Board of Governors.
In his remarks at the Meeting, Mr. Marcos Troyjo, NDB President congratulated the Chairperson of the Board for her leadership and welcomed the representatives of new member countries.
He highlighted that 2022 is a special year for the Bank as it marks the 10th anniversary of the decision by the Leaders of the founding member countries to explore the feasibility of establishing a new development bank.
The Board of Governors elected Mr. Kun Liu, Minister of Finance of the People’s Republic of China, the Governor for China, as the next Chairperson of the Board of Governors, and Mr. Enoch Godongwana, Minister of Finance of the Republic of South Africa, the Governor for South Africa, as the next Vice-Chairperson of the Board of Governors.
The Board of Governors agreed that its Eighth Annual Meeting will be held in Shanghai, China.
NEW DEVELOPMENT BANK
At the fourth BRICS Summit in New Delhi (2012), the leaders of Brazil, Russia, India, China and South Africa considered the possibility of setting up a new Development Bank to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies, as well as in developing countries. They directed Finance Ministers to examine the feasibility and viability of this initiative, to set up a joint working group for further study, and to report back by the next Summit in 2013.
Following the report from the Finance Ministers at the fifth BRICS summit in Durban (2013), the leaders agreed on the feasibility of establishing the New Development Bank and made the decision to do so. It was also agreed that the initial contribution to the Bank should be substantial and sufficient for it to be effective in financing infrastructure.
During the sixth BRICS Summit in Fortaleza (2014), the leaders signed the Agreement establishing the New Development Bank (NDB).
The New Development Bank (NDB) was established in 2015 by BRICS countries – Brazil, Russia, India, China and South Africa. The Bank’s membership is open to members of the United Nations.
NDB commenced the admission of its first new member countries in the second half of 2021.
BANGLADESH AND UAE are new members that joined in 2021.
PROSPECTIVE MEMBERS:
EGYPT AND URUGUAY
FORTELAZA DECLERATION 2014
“The Bank shall have an initial authorized capital of US$ 100 billion.
The initial subscribed capital shall be US$ 50 billion, equally shared among founding members.
The first chair of the Board of Governors shall be from Russia.
The first chair of the Board of Directors shall be from Brazil
. The first President of the Bank shall be from India.
The headquarters of the Bank shall be located in Shanghai.
The New Development Bank Africa Regional Center shall be established in South Africa concurrently with the headquarters.”
