The New Development Bank (NDB) – formerly known as the BRICS Development Bank – has officially launched in Shanghai, China.<\/p>\n
The bank is operated by the BRICS states (Brazil, Russia, India, China and South Africa) as an alternative to the existing US-dominated World Bank and International Monetary Fund.<\/p>\n
The bank was formed on agreement from all BRICS leaders at the 5th annual BRICS summit held in South Africa in 2013.<\/p>\n
The BRICS economies comprise over 3 billion people – over 40% percent of the world\u2019s population – and covers more than a quarter of the world\u2019s land area and global GDP.<\/p>\n
In July 2014, the emerging economies signed a document to officially create the $100 billion (R1.2 trillion) BRICS Development Bank and a reserve currency pool worth over another $100 billion.<\/p>\n
The bank will begin operations with $50 billion, which will then expand to the full $100 billion in the next couple of years.<\/p>\n
The Bank’s primary purpose is to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.<\/p>\n
This will complement the existing efforts of multilateral and regional financial institutions for global growth and development.<\/p>\n
To do this, the bank will support public or private projects through loans, guarantees, equity participation and other financial instruments.<\/p>\n
It will also cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the Bank.<\/p>\n
According to a report by the IBTimes, China will have the largest share of voting rights in the bank with its $41 billion pledged contribution.<\/p>\n
Brazil, India and Russia will each contribute $18 billionn, while South Africa will put in $5 billion.<\/p>\n
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