5 things you need to know about the New Development Bank
Thursday, July 17, 2014
At the 6th BRICS summit in Fortaleza, Brazil, on Tuesday, the New Development Bank was created.
The BRICS is an informal grouping of the five major emerging economies in the world, and the name is based on the acronym of the member countries – Brazil, Russia, India, China, South Africa – pursuing a stronger presence in the global financial order.
The New Development Bank is a landmark institution as it will pose a direct challenge to the heavily American-influenced World Bank and International Monetary Fund (IMF) on the world stage.
Developing countries with emerging markets will also have another source of aid and funding, especially with the United States’ conservative monetary measures, once the bank is up and running.
1. What is the New Development Bank?
It is a financial institution created by the BRICS nations to finance infrastructure and sustainable development projects in member countries, and in other emerging markets.
The grouping is highly significant, with 40 per cent of the world’s population and accounting for 20 per cent of global Gross Domestic Product (GDP).
The idea was first proposed two years ago, during the 4th BRICS summit in New Delhi, India.