A few days ago, the BRICS association of emerging economies launched another financial institution considered to be an alternative to the World Bank, the International Monetary Fund, and the like.
The New Development Bank (NDB) was created soon after the establishment of the China-led Asian Infrastructure Investment Bank. The NDB will mainly deal with funding various infrastructure and development projects in the BRICS countries, i.e. Russia, Brazil, India, China, and South Africa.
The initiative to establish the New Development Bank was first announced in 2012. However, there was a certain controversy over funding, management, and headquarters location which slowed down the process.
NBR President Kundapur Vaman Kamath said that the founders’ objective was “not to challenge the existing system as it is but to improve and complement the system in our own way”.
During the meeting involving the management of the BRICS’ New Development Bank and the Asian Infrastructure Investment Bank it was decided to set up a hotline. This connection between the two financial institutions is intended to strengthen cooperation and make it possible to discuss various issues.
