Consider the following statements about the New Development Bank. Thus, it reduces the dependence on World Bank group and dilutes their hegemony in the financial system. ; China is the largest shareholder in AIIB with 26.61 % voting shares which is followed by India (7.6%), Russia (6.01%) and … Allocation of $2 billion (Rs 15,000 crore) by the government for strengthening the healthcare system. It has been chiefly concerned with herculean efforts to eradicate extreme poverty since its inception. "@type": "ImageObject", Neither 1 nor 2. During the sixth BRICS Summit in Fortaleza (2014), the leaders signed the Agreement establishing the New Development Bank (NDB). "@type": "WebPage", "logo": { } ; The ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions. It was established in 2014, at the 6th BRICS Summit at Fortaleza, Brazil. Page-3 - GK Articles, News, Current Affairs, Trivia Questions and Updates about Multilateral development banks for students and aspirants of UPSC, Civil … How NDB Is Changing the Paradigm of Development Financing. At the fourth BRICS Summit in New Delhi (2012), the leaders of Brazil, Russia, India, China and South Africa considered the possibility of setting up a new Development Bank to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies, as well as in developing countries. Multilateral Development Banks . Promoting competitiveness and facilitating job creation. Thus, it reduces the dependence on World Bank group and dilutes their hegemony in the financial system. For Prelims and Mains: NDB- roles, composition, objectives and functions. At the New Delhi meet, multilateral agencies such as the Asian Development Bank, the World Bank, New Development Bank, besides Japan, Germany, Australia, Malaysia, Thailand, Nepal, Bhutan and the Netherlands had participated to give shape to the coalition. NDB was encouraged to take appropriate actions to join the G-20 forum along with other Multilateral Development Banks (MDBs) and International Financial Institutions (IFIs) like the World Bank, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), etc. From Wikipedia, the free encyclopedia The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa). (UPSC CSAT 2017) 1 only. • Aims to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. Also, the traffic congestion in the route is adding to the air pollution in the NCR region. Ans . The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with headquarters in Beijing, China. Unlike the World Bank, which assigns votes based on capital share, in the New Development Bank each participant country will be assigned one vote, and none of the countries will have veto power. }, "@id": "https://civils360.com/2020/11/23/new-development-bank" Jointly founded by: BRICS countries (Brazil, Russia, India, China and South Africa) at the 6th BRICS Summit in Fortaleza, Brazil in 2014. Building a knowledge-sharing platform among developing countries. Alternative Financial Architecture: The bank augments the international financial architecture that is dominated by 20th century institutions of World Bank and IMF. Due to the slow pace of reforms in agencies like IMF, World bank and Asian development bank new multilateral finance agencies are emerging in developing countries like New Development Bank [B.R.I.C.S bank] and Asian Infrastructure Investment Bank. The New Development Bank was agreed to by BRICS leaders at the 5th BRICS summit held in Durban, South Africa in 2013. Fostering the development of member countries. "@context": "https://schema.org", However, there are two fundamental differences between the two. Like New Development Bank, Asian Infrastructure Investment Bank (AIIB) is also a multilateral Development Bank and both have the same objective i.e. It provides loans, guarantees, advisory services, and risk management products to middle-income and creditworthy low-income countries. "publisher": { Click Here to Download UPSC Prelims 2019 CSAT(Paper-II) Answer Key Set-B PDF conducted today on 2nd June 2019 in the shift of 02:30PM to 04:30PM ... Aiib: The Asian Infrastructure Investment Bank is a multilateral development bank that aims to support the building of infrastructure in the Asia-Pacific region.