The BRICS states, which are Brazil, Russia, India, China, and South Africa, signed an agreement to establish a new development bank in 2014. This was a historic move, as it represented a significant change in the global economic landscape.
The agreement, which was signed on July 15, 2014, established the legal framework for the creation of the New Development Bank (NDB). The bank was created with the aim of funding infrastructure and development projects in the BRICS countries and other emerging economies.
The idea for the bank was first proposed at the 4th BRICS Summit in New Delhi in 2012. The idea was to create a multilateral institution that would provide an alternative to the existing global financial institutions, such as the International Monetary Fund (IMF) and the World Bank, which are dominated by developed countries.
The BRICS countries felt that these institutions did not reflect the growing economic power of emerging economies and did not provide enough support for their development needs.
The NDB`s headquarters are located in Shanghai, China, and it has an authorized capital of $100 billion. The bank`s first president was KV Kamath, an Indian banker who took office on July 7, 2015.
Since its establishment, the NDB has approved loans for various infrastructure and development projects in the BRICS countries. In 2016, it approved its first batch of loans, which totaled $1.5 billion and were used to fund renewable energy projects in Brazil, China, India, and South Africa.
Overall, the establishment of the NDB represents a significant shift in the global economic landscape and reflects the growing economic power of emerging economies. The bank is expected to play an important role in funding infrastructure and development projects in the BRICS countries and other emerging economies in the years to come.