BRICS: Know About New Development Bank And Goa Summit

The NDB i.e. New Development Bank is the just-opened institution co-owned by the BRICS countries of Brazil, Russia, India, China and South Africa. This is a multilateral bank, which started with an objective to fund infrastructure projects in the developing countries and to meet the dreams of millions of aspirants through sustainable development.

Why BRICS and NDB?

Current financing and investment patterns are not sufficient enough to meet the investment needs. Also, private international capital flows are not only volatile, but they are also insufficient in volume as well as maturity to fund sustainable development, which typically requires long-term investment. Multilateral Development Banks (MDBs) can play a vital role in meeting with these requirements. While the annual resource commitment from MDBs has gone up from USD 45 billion to over USD 100 billion over a 10 year period, it is still insufficient to meet the requirements of the infrastructure development of over USD 1 trillion a year. There is, therefore, a need for MDBs to reinvent themselves and introduce innovative instruments, especially for the developing countries, as this servers as one of the most important factors for their growth.

Aims and Vision:

The vision of the New Development Bank is not just restricted to meet the funding requirements for infrastructural buildings, but it is also involved in envisaging knowledge building and sharing platform in order to promote sustainable development among the developing countries. It is one of the major milestones in terms of cooperation among emerging economies and developing countries, in the world of developing finance. This New Development Bank aims in establishing a significant path for global, regional as well as local partnership with the new, along with the established Multilateral Development Banks, i.e., MDBs.

Achievements and Ongoing Projects:

The creation of the New Development Bank was discussed at the 4^th BRICS summit held in Delhi, India. BRICS leaders agreed to set up a Development bank at the 5th BRICS summit held in Durban, South Africa. The 6th BRICS summit held in Fortaleza, Brazil, the BRICS states signed the Agreement on the New Development Bank, which makes provisions for the legal basis of the bank. The 7th BRICS summit, in July 2015, held in Ufa, Russia, marked the entry into force of the Agreement on the New Development Bank. In the ongoing 8^th BRICS summit in Goa, India and Russia set up joint venture to build helicopters. The issue of majority concern in this 8^th summit is terrorism and the various measures to combat it.