Articles of Agreement New Development Bank

Articles of Agreement New Development Bank

The Articles of Agreement of the New Development Bank: What You Need to Know

The New Development Bank (NDB) is a multilateral development bank established by the BRICS countries (Brazil, Russia, India, China and South Africa) in 2014. The bank`s primary goal is to provide financing for infrastructure and sustainable development projects in emerging economies.

The Articles of Agreement (AoA) of the NDB lay out the bank`s organizational structure, governance, financial resources, and operational policies. Here are some key features of the AoA:

Membership and Voting

The NDB has five members, each with an equal share and voting power. The bank`s Board of Governors is the highest decision-making body, and each member country has one representative on the Board.

Capital and Resources

The NDB`s authorized capital is $100 billion, with an initial subscribed capital of $50 billion. The bank can issue bonds, take deposits, and borrow from financial markets to raise funds. The AoA outlines the bank`s financial policies, such as maintaining high credit ratings and ensuring sound financial management.

Operations and Projects

The NDB focuses on financing sustainable infrastructure and development projects in its member countries. The AoA provides guidelines for project appraisal, monitoring, and evaluation, as well as environmental and social safeguards. The bank also seeks to promote regional integration and collaboration among its member countries.

Governance and Management

The NDB has a lean organizational structure with a President, Vice Presidents, and staff members. The AoA specifies the appointment and term of office for these positions, as well as the responsibilities of the Board of Directors and other governance bodies. The bank also has a system to prevent and address corruption and other unethical behavior.

Conclusion

The Articles of Agreement of the New Development Bank provide a framework for the bank`s operations and governance. As a multilateral development bank, the NDB plays a crucial role in financing sustainable development in emerging economies. The AoA ensures that the bank operates in a transparent and accountable manner, with a focus on promoting social and environmental sustainability.