The document discusses the BRICS organization and the New Development Bank. BRICS includes Brazil, Russia, India, China and South Africa as emerging economies. The New Development Bank was established by BRICS states as an alternative to the World Bank and IMF. Headquartered in Shanghai, the bank aims to fund infrastructure and sustainable development projects in BRICS and developing countries.

2.  BRICS stands for BRAZIL, RUSSIA, INDIA,
CHINA, SOUTH AFRICA.
 The idea of the BRICS was formulated by Chief
Economist at Goldman Sachs Asset Management ,
Jim'O Neill, in a year 2001.
 Officially, it was admitted as BRIC nation on 24
December, 2010.
 BRICS is the internal political organization of
lending emerging economics. Its five members are
all developing industrialized countries.
 It is the fastest growing and emerging economies.

4.  South Africa was asked to join the BRIC group
of major emerging markets.
 South Africa stands at a unique position to
influence African economic growth and
investment.
 The grouping was originally known as BRIC
before the inclusion South Africa in 2010.
 With the entrance of South Africa, at the 3rd
BRIC Summit, in April 2011, the BRIC became
BRICS, with capital S.

5.  Its main objective are to corporate between the
member nations for development, provide
financial assistance, support various projects,
infrastructures, etc.
 The BRICS group acts as a bridge between
developed and developing countries. They are
attempting to promote the liberalization of the
international economic order.
 The BRICS group also plays an increasingly
important role in assisting developing countries
in gaining an advantages in trait and climate
change negotiation.

14.  The New Development Bank (NDB), formerly
referred to as the BRICS Development Bank, is
multilateral development bank operated by the
BRICS states (Brazil, Russia, India, China, South
Africa) as an alternative to the existing American
and European-dominated World Bank and
International Monetary Fund.
 Each participant country holds an equal number of
shares and equal voting rights, and none of the
countries will have vote power.
 BRICS states have 43% of the world's population,
20% of the world's coverage and $18.486 trillion of
combined GDP.

15.  The bank is headquartered in Shanghai, China.
 K.V.KAMATH from India, is the 1st chairperson of
the bank.
 According to the Articles of Agreement, the main
organs of the bank are:
• Board of Governors
• Board of Directors
• President and Vice-Presidents
 The president of the bank shall be elected from one
of the founding members on a rotational basis, and
there shall be at least one Vice President from each
of the other founding members.

16.  The idea for setting up the bank was proposed by
India at the 4th BRICS summit in 2012 held in
Delhi.
 BRICS leaders agreed to set up a Development
Bank at the 5th BRICS summit held in Durban,
South Africa on 27th March, 2013.
 On 15th July, 2014, the first day of the BRICS
summit held in Fortaleza, Brazil. The BRICS states
signed the agreement on the New Development
Bank.
 The 7th BRICS summit in July 2015 marked the
entry into force of the Agreement.
 On 11th May, 2015, K. V. Kamath was appointed as
President of the Bank. He was replaced by Marcos
Prado Troyjo from Brazil since 7th July, 2020.

17.  The bank aims to contribute to development
plans established nationally through projects
that are socially, environmentally and
economically sustainable. Taking this into
account, the main objectives of the NDB can be
summarized as follow:
I. To utilize resources at its disposal to support
infrastructure and sustainable development
projects, public or private, in the BRICS and other
emerging market economies and developing
countries.

18. II. The bank shall support public or private projects
through loans, guarantees, equity participation
and other financial instruments. It shall also co-
operate with international organizations and
other financial entities.
III. To provide technical assistance for the
preparation and implementation of infrastructure
and development projects to be supported by the
bank.
IV. The bank will be an additional source of long
term finance for infrastructure projects in India.

19.  The founding members of the bank are
Federative Republic of Brazil, the Russian
Federation, the Republic of India, the
Peoples Republic of China and the Republic
of South Africa.
 The membership shall be open to members
of the United Nations, in accordance with
the provisions of the Articles of Agreement of
NDB. It shall be open to borrowing and non-
borrowing members.

20.  The New Development Bank shall have an
initial subscribed capital of US $50 billion
and an authorized capital of US $100 billion.
 The initial subscribed capital is to be equally
distributed among the founding members.
 Each member cannot increase its share of
capital without all other four members
agreeing.
 The bank will allow new members to join but
BRICS capital share cannot fall below 55%.

22.  Support public or private projects through
loans
 Guarantees for equity participation
 Better understanding of the borrowers
mindset
 Cooperate with international organization
and other financial entities
 Provide technical assistance for projects

23.  Emerging markets opportunities
 High growth rates
 Huge investment in infrastructure
 Huge middle class boosting demand
 Increased foreign direct investment
 High potential for outstanding work

24.  Political conflicts among BRICS states
 Popularity of World Bank and IMF
 Population of BRICS countries are taken
43% population
 Global financial crisis
 Big role of dollar in trade
 Declining GDP growth
 Limited liabilities

25.  BRICS nations have the potential and resources
to form a powerful economy with greater
opportunities than any other nation.
 A strong BRICS can also have more influence in
other multilateral forums such as WTO, World
Bank, etc.
 If the government of India takes speedy and
effective measures to overcome these challenges
in FDI attraction and given a few years with
developments India will definitely overtake such
nations.