The New Development Bank of BRICS Nations: An Analysis

Abstract

The New Development Bank (NDB) is a multilateral development bank established by the BRICS countries as an alternative funding option to the existing multilateral development banks. This New Development bank will focus on current and future development needs, with its policies structured to consider the global economic shift happened in recent years. It also promises to make the lending process simpler, faster and cheaper as opposed to the existing development bank including the World Bank group. The bank would be a well source of finance for meeting the infrastructure requirements and sustainable economic development. New Development bank is also going to face the same challenges that the existing multilateral development banks face due to the political, financial and development tensions inherent in their own organization model. The operational and governance policies adopted by the New Development Bank will have far reaching consequences and only the time will tell how effective it was. But it's sure that the initiative by BRICS countries will create a path for other like-minded countries to follow.