The document discusses the New Development Bank (NDB), established on July 15, 2014, as an international financial institution aimed at providing an alternative to the World Bank and IMF, primarily serving emerging economies like BRICS nations. It highlights NDB's objectives of enhancing global financial cooperation, addressing infrastructure development, and promoting sustainable projects, while also outlining its governance structure and funding contributions from member countries. Additionally, challenges such as political conflicts among member states and the existing dominance of the World Bank and IMF are noted.

2.  To know about structure and function of NDB.
 To know about the context of the formation of
NDB.
 To analyze the prospects and challenges of NDB.

3. Formation: 15 July, 2014
Type : International Financial Institution
Headquarters: Shanghai, China
Membership: Brazil, Russia, India, China,
South Africa
Logo of NDB
President of NDB
(K. V. KAMATH)

4.  Discriminatory attitude of World Bank and IMF.
 Weighted voting system.
 Dominance of America in IMF and World Bank.
 Less voting power of China, Russia and India.
 Huge conditions of World Bank and IMF.

5. Characteristics of World Bank
& IMF
Strict
Conditionality
Domination
Political
Instability
Privatization
High Interest
Rate

6. Duopoly System of World Bank & IMF
 Focus on competition and market forces.
 One size fits all.
 Takes away political autonomy.
 Increase the value of dollar.
 Focus on privatization.

7. Outcomes of Duopoly System

8. Is Any Alternative
Needed???

9.  New Development Bank is a multilateral
development bank referred as BRICS Bank.
 A way of the cooperation among emerging
economies and developing countries.
 Alternative to the existing American and
European dominated World Bank and IMF.

10. Global-south cooperation
Equal say in decision-making
Account for 43% of the world population over 3 million
 Combined nominal GDP of USD 16.039 trillion
 USD 4 trillion in combined foreign reserves

11.  Investment in infrastructure development
projects.
 Sustainable development projects
 Move away from a long-standing dependence on
IMF and World Bank.
 Improve and complement the global financial
system.

12.  Resource mobilization.
 Establish an extensive network of global
partnerships.
 Innovative approaches.
 Simple governance.

13. 2009, June
• First formal meeting
• Yekaterinburg, Russia.
2010, December
• South Africa joined in BRICS
• 2nd summit, Brasilia.
2012, March
• 4th BRICS summit (the idea of NDB)
• Delhi

14. 2013, March
• 5th BRICS summit, Durban.
• Agreed to set up NDB
2014, July
• 6th BRICS summit, Fortaleza, Brazil.
• Signed the agreement on NDB; Headquarter:
Shanghai; Total capital: $100 billion
2015, May
• Kundapur Vaman Kamath, appointed
as the President of NDB

15.  The member shall be opened to members
of UN according to the agreement of the
NDB
 The voting power is equal to its subscribed
shares
 The president shall be elected from among
the founding members in rotational basis.

16. Board of Governors (1)
Board of Directors (1)
President (1)
Vice-Presidents (5)

17.  China will contribute $41 billion
 Brazil, Russia and India would
give $18 billion each and
 South Africa would contribute
$5 billion.

19.  Support public or private projects through loans.
 Guarantees for equity participation.
 Better understanding of the borrower's mindset.
 Cooperate with international organizations and
other financial entities.
 Provide technical assistance for projects.

20. PROJECTS of NDB
Countries Projects Name Loan Amount
BRAZIL Renewable energy
project (wind, solar)
US$81 ml
RUSSIA Putin Pinghai Bay
Offshore Wind power
project
US$100 ml
INDIA Madhya Pradesh Road
project(1500km)
US$350 ml
CHINA Renewable energy
project (solar roof-top
PV)
US$81 ml
SOUTH AFRICA Renewable energy
(transmission)
US$180 ml

21. Prospects of NDB
 Rise of South.
 Alternative to World Bank and IMF.
 Financial Inclusion.
 Meet the need of more than 43% population of the
world.
 Decrease the value of USD.

22. Opportunities for 3rd world
Countries
 An alternative bank of World Bank and IMF.
 A bank for the emerging economies.
 Sustainable development: meet the needs of
millions (poor).
 South-South cooperation: by south for the south.
 Easy balance of payment.

23. NDB and BANGLADESH
 Finance Minister take decision to join NDB.
 Prime Minister given consent for joining the NDB.
 ERD has sent letter to the Bangladesh
ambassadors in the five BRICS countries.
 Decision of BRICS still pending.

24.  Reasonable interest rates.
 Favorable conditionality.
 Equal power of all founding member countries.
 Absence of partiality.
 Encouraging and supporting for Green project.
 Easy balance of payment.
Differences of NDB from
World Bank & IMF

25. Challenges of NDB
 Political conflict among BRICS states.
 Rule of CHINA.
 Popularity of World Bank and IMF.
 Asian Development Bank.
 Asian Infrastructure Investment Bank.

26.  www.ndbrics.org
 www.rt.com
 www.bbc.co.uk
 www.hindustantimes.com
 www.economictimes.com
 The Daily Star
 The Financial Express
 timesofindia.indiatimes.com
 www.countryeconomy.com
 www.bonikbarta.com
 www.venturesafrica.com
 africabusinessmagazine.com
 www.prothom-ato.com
 www.wikipedia.com