The New Development Bank (NDB) was established by South Africa, Russia, China, India and Brazil. These are called BRICs Countries).
The idea to form the bank was conceived during the 5th BRICS summit in Fortaleza on July 2014. The bank was launched later on July 2015.
Brics is is formed out of the first letters of member countries. The bank is an alternative to World Bank, IMF and IFC among other development banks.
Strategy
The bank released its newest strategy for 2017 – 2021 where it states that it will play a great role in the global economy but more especially in the Emerging Markets Developing Countries (EMDCs).
This does not mean that the bank membership is only for EMDCs. No. It is opening up to membership from the developed countries but its governance will remain in EMDCs.
Decision making at NDB
Decisions are made in a democratic way through simple majority. There is no member with veto powers over any matter.
Pioneer
This is the first development finance institution wholly created by countries from the emerging markets.
It’s our sincere hope that the bank will honor its values of trust, equality and mutual respect. We further hope that the New Development Bank will learn from the mistakes committed by World Bank Group (WBG), International Monetary Fund (IMF) and others.
Membership
While NDB was formed by BRICS, it now open to countries which are members of United Nations. Developed countries will only be allowed to join the bank as non-borrowing members and their voting powers will be limited to a maximum of 20 per cent.
How different is NDB from World Bank and IMF?
New Development Bank (NDB) will not be offering prescriptions on policy, institutional reforms and regulations.
Local Currency Loans
NDB will be offering local currency loans to protect borrowers from fluctuations in exchange rates.
Capital of the Bank
USD $100 billion was the initial authorized capital. Subscriptions were pegged at USD$50 billion.
Rating
The rating of New Development Bank (NDB) by a Chinese rating agency is AAA.
Focus Areas
a) Clean energy
b) Transport and infrastructure
c) Irrigation
d) Sustainable urban development
Expected Staff Head Count
I can see jobs here! 🙂 check the table below:
| Year | Expected Headcount |
| 2017 | 150 |
| 2018 | 220 |
| 2019 | 300 |
| 2020 | 350 |
| 2021 | 400 |
In their strategy, they have said that they will focus on staff of the highest caliber. I guess they will have to head hunt from the leading development finance institutions.
Collaboration with NGOs
It its strategy, New Development Bank has promised to work closely with NGOs to benefit from their “knowledge and experience.”
READ MORE:
GOT a story? RING Kerosi Dotcom on +254 20 78 64348 or EMAIL info@kerosi.com
